{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-3109.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-3109.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-3109.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-3109.1.html"}],"law_id":81799,"edition_id":1,"section_id":81799,"structure_id":16221,"section_number":"2.2-3109.1","catch_line":"Prohibited contracts; additional exclusions for contracts by officers and employees of hospital authorities","history":"2015, c. 699; 2016, cc. 773, 774.","full_text":"A\n\nAs used in this section, “hospital authority” means a hospital authority established pursuant to Chapter 53 (§ 15.2-5300 et seq.) of Title 15.2 or an Act of Assembly.B\n\nThe provisions of \u00a7 2.2-3109 shall not apply to:1\n\nThe personal interest of an officer or employee of a hospital authority in additional contracts of employment with his own governmental agency that accrue to him because of a member of his immediate family, provided (i) the officer or employee and the immediate family member are licensed members of the medical profession or hold administrative support positions at the hospital authority, (ii) the governing board of the hospital authority finds that it is in the best interests of the hospital authority and the county, city, or town for such dual employment to exist, and (iii) after such finding, the governing board of the hospital authority ensures that neither the officer or employee, nor the immediate family member, has sole authority to supervise, evaluate, or make personnel decisions regarding the other;2\n\nSubject to approval by the governing board of the hospital authority, an officer or employee’s personal interest in a contract between his hospital authority and a professional entity that operates a clinical practice at any medical facilities of such other hospital authority and of which such officer or employee is a member or employee;3\n\nSubject to approval by the relevant governing body, an officer or employee’s personal interest in a contract for research and development or commercialization of intellectual property between the hospital authority and a business in which the employee has a personal interest, provided (i) the officer or employee’s personal interest has been disclosed to and approved by the hospital authority prior to the time at which the contract is entered into; (ii) the officer or employee promptly files a disclosure statement pursuant to § 2.2-3117 and thereafter files such statement annually on or before January 15; (iii) the local hospital authority has established a formal policy regarding such contracts in conformity with any applicable federal regulations that has been approved by its governing body; and (iv) no later than December 31 of each year, the local hospital authority files an annual report with the Virginia Conflict of Interest and Ethics Advisory Council disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest, the hospital authority’s employee responsible for administering each contract, the details of such hospital authority’s commitment or investment of resources or finances for each contract, and any other information requested by the Virginia Conflict of Interest and Ethics Advisory Council; or4\n\nSubject to approval by the relevant governing body, an officer or employee’s personal interest in a contract between the hospital authority and a business in which the officer or employee has a personal interest, provided (i) the personal interest has been disclosed to the hospital authority prior to the time the contract is entered into; (ii) the officer or employee files a disclosure statement pursuant to § 2.2-3117 and thereafter annually on or before January 15; (iii) the officer or employee does not participate in the hospital authority’s decision to contract; (iv) the president or chief executive officer of the hospital authority finds and certifies in writing that the contract is for goods and services needed for quality patient care, including related medical education or research, by any of the hospital authority’s medical facilities or any of its affiliated organizations, or is otherwise necessary for the fulfillment of its mission, including but not limited to the acquisition of drugs, therapies, and medical technologies; and (v) no later than December 31 of each year, the hospital authority files an annual report with the Virginia Conflict of Interest and Ethics Advisory Council disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest, the hospital authority’s employee responsible for administering each contract, the details of the hospital authority’s commitment or investment of resources or finances for each contract, and any other information requested by the Virginia Conflict of Interest and Ethics Advisory Council.C\n\nNotwithstanding the provisions of subdivisions B 3 and B 4, if the research and development or commercialization of intellectual property or the officer or employee’s personal interest in a contract with a business is subject to policies and regulations governing conflicts of interest promulgated by any agency of the United States government, including the adoption of policies requiring the disclosure and management of such conflicts of interest, the policies established by the hospital authority pursuant to such federal requirements shall constitute compliance with subdivisions B 3 and B 4, upon notification by the hospital authority to the Virginia Conflict of Interest and Ethics Advisory Council by January 31 of each year of evidence of its compliance with such federal policies and regulations.D\n\nThe governing body may delegate the authority granted under subdivision B 2 to the president or chief executive officer of hospital authority. If the board elects to delegate such authority, the board shall include this delegation of authority in the formal policy required by clause (iii) of subdivision B 3. In those instances where the board has delegated such authority, on or before December 1 of each year, the president or chief executive officer of the hospital authority shall file a report with the relevant governing body disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest, the hospital authority’s employee responsible for administering each contract, the details of the hospital authority’s commitment or investment of resources or finances for each contract, the details of how revenues are to be dispersed, and any other information requested by the governing body.","order_by":null,"text":{"0":{"id":293100,"text":"As used in this section, “hospital authority” means a hospital authority established pursuant to Chapter 53 (§ 15.2-5300 et seq.) of Title 15.2 or an Act of Assembly.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":293101,"text":"The provisions of \u00a7 2.2-3109 shall not apply to:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":293102,"text":"The personal interest of an officer or employee of a hospital authority in additional contracts of employment with his own governmental agency that accrue to him because of a member of his immediate family, provided (i) the officer or employee and the immediate family member are licensed members of the medical profession or hold administrative support positions at the hospital authority, (ii) the governing board of the hospital authority finds that it is in the best interests of the hospital authority and the county, city, or town for such dual employment to exist, and (iii) after such finding, the governing board of the hospital authority ensures that neither the officer or employee, nor the immediate family member, has sole authority to supervise, evaluate, or make personnel decisions regarding the other;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":293103,"text":"Subject to approval by the governing board of the hospital authority, an officer or employee’s personal interest in a contract between his hospital authority and a professional entity that operates a clinical practice at any medical facilities of such other hospital authority and of which such officer or employee is a member or employee;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":293104,"text":"Subject to approval by the relevant governing body, an officer or employee’s personal interest in a contract for research and development or commercialization of intellectual property between the hospital authority and a business in which the employee has a personal interest, provided (i) the officer or employee’s personal interest has been disclosed to and approved by the hospital authority prior to the time at which the contract is entered into; (ii) the officer or employee promptly files a disclosure statement pursuant to § 2.2-3117 and thereafter files such statement annually on or before January 15; (iii) the local hospital authority has established a formal policy regarding such contracts in conformity with any applicable federal regulations that has been approved by its governing body; and (iv) no later than December 31 of each year, the local hospital authority files an annual report with the Virginia Conflict of Interest and Ethics Advisory Council disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest, the hospital authority’s employee responsible for administering each contract, the details of such hospital authority’s commitment or investment of resources or finances for each contract, and any other information requested by the Virginia Conflict of Interest and Ethics Advisory Council; or","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":293105,"text":"Subject to approval by the relevant governing body, an officer or employee’s personal interest in a contract between the hospital authority and a business in which the officer or employee has a personal interest, provided (i) the personal interest has been disclosed to the hospital authority prior to the time the contract is entered into; (ii) the officer or employee files a disclosure statement pursuant to § 2.2-3117 and thereafter annually on or before January 15; (iii) the officer or employee does not participate in the hospital authority’s decision to contract; (iv) the president or chief executive officer of the hospital authority finds and certifies in writing that the contract is for goods and services needed for quality patient care, including related medical education or research, by any of the hospital authority’s medical facilities or any of its affiliated organizations, or is otherwise necessary for the fulfillment of its mission, including but not limited to the acquisition of drugs, therapies, and medical technologies; and (v) no later than December 31 of each year, the hospital authority files an annual report with the Virginia Conflict of Interest and Ethics Advisory Council disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest, the hospital authority’s employee responsible for administering each contract, the details of the hospital authority’s commitment or investment of resources or finances for each contract, and any other information requested by the Virginia Conflict of Interest and Ethics Advisory Council.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":293106,"text":"Notwithstanding the provisions of subdivisions B 3 and B 4, if the research and development or commercialization of intellectual property or the officer or employee’s personal interest in a contract with a business is subject to policies and regulations governing conflicts of interest promulgated by any agency of the United States government, including the adoption of policies requiring the disclosure and management of such conflicts of interest, the policies established by the hospital authority pursuant to such federal requirements shall constitute compliance with subdivisions B 3 and B 4, upon notification by the hospital authority to the Virginia Conflict of Interest and Ethics Advisory Council by January 31 of each year of evidence of its compliance with such federal policies and regulations.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4","next_prefix":"D"},"7":{"id":293107,"text":"The governing body may delegate the authority granted under subdivision B 2 to the president or chief executive officer of hospital authority. If the board elects to delegate such authority, the board shall include this delegation of authority in the formal policy required by clause (iii) of subdivision B 3. In those instances where the board has delegated such authority, on or before December 1 of each year, the president or chief executive officer of the hospital authority shall file a report with the relevant governing body disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest, the hospital authority’s employee responsible for administering each contract, the details of the hospital authority’s commitment or investment of resources or finances for each contract, the details of how revenues are to be dispersed, and any other information requested by the governing body.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":16221,"edition_id":1,"name":"Prohibited Conduct Relating to Contracts","identifier":"3","label":"article","depth":5,"order_by":1,"parent_id":14113,"metadata":{},"date_created":"2026-06-26 04:09:39","date_modified":"2026-06-26 04:09:39","permalink":{"id":176077,"object_type":"structure","relational_id":16221,"identifier":"3","token":"2.2\/I\/E\/31\/3","url":"\/2.2\/I\/E\/31\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":14113,"edition_id":1,"name":"State and Local Government Conflict of Interests Act","identifier":"31","label":"chapter","depth":4,"order_by":1,"parent_id":13049,"metadata":{},"date_created":"2026-06-26 03:46:54","date_modified":"2026-06-26 03:46:54","permalink":{"id":176023,"object_type":"structure","relational_id":14113,"identifier":"31","token":"2.2\/I\/E\/31","url":"\/2.2\/I\/E\/31\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13049,"edition_id":1,"name":"State Officers and Employees","identifier":"E","label":"part","depth":3,"order_by":1,"parent_id":12784,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":175733,"object_type":"structure","relational_id":13049,"identifier":"E","token":"2.2\/I\/E","url":"\/2.2\/I\/E\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12784,"edition_id":1,"name":"Organization of State Government","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:53","date_modified":"2026-06-26 03:43:53","permalink":{"id":171455,"object_type":"structure","relational_id":12784,"identifier":"I","token":"2.2\/I","url":"\/2.2\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12749,"edition_id":1,"name":"Administration of Government","identifier":"2.2","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":171453,"object_type":"structure","relational_id":12749,"identifier":"2.2","token":"2.2","url":"\/2.2\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65048,"structure_id":16221,"section_number":"2.2-3105","catch_line":"Application","url":"\/2.2-3105\/","token":"2.2\/I\/E\/31\/3\/2.2-3105","metadata":false},{"id":67390,"structure_id":16221,"section_number":"2.2-3106","catch_line":"Prohibited contracts by officers and employees of state government","url":"\/2.2-3106\/","token":"2.2\/I\/E\/31\/3\/2.2-3106","metadata":false},{"id":82438,"structure_id":16221,"section_number":"2.2-3107","catch_line":"Prohibited contracts by members of county boards of supervisors, city councils and town councils","url":"\/2.2-3107\/","token":"2.2\/I\/E\/31\/3\/2.2-3107","metadata":false},{"id":73340,"structure_id":16221,"section_number":"2.2-3108","catch_line":"Prohibited contracts by members of school boards","url":"\/2.2-3108\/","token":"2.2\/I\/E\/31\/3\/2.2-3108","metadata":false},{"id":85558,"structure_id":16221,"section_number":"2.2-3109","catch_line":"Prohibited contracts by other officers and employees of local governmental agencies","url":"\/2.2-3109\/","token":"2.2\/I\/E\/31\/3\/2.2-3109","metadata":false},{"id":81799,"structure_id":16221,"section_number":"2.2-3109.1","catch_line":"Prohibited contracts; additional exclusions for contracts by officers and employees of hospital authorities","url":"\/2.2-3109.1\/","token":"2.2\/I\/E\/31\/3\/2.2-3109.1","metadata":false},{"id":74013,"structure_id":16221,"section_number":"2.2-3110","catch_line":"Further exceptions","url":"\/2.2-3110\/","token":"2.2\/I\/E\/31\/3\/2.2-3110","metadata":false}],"previous_section":{"id":85558,"structure_id":16221,"section_number":"2.2-3109","catch_line":"Prohibited contracts by other officers and employees of local governmental agencies","url":"\/2.2-3109\/","token":"2.2\/I\/E\/31\/3\/2.2-3109","metadata":false},"next_section":{"id":74013,"structure_id":16221,"section_number":"2.2-3110","catch_line":"Further exceptions","url":"\/2.2-3110\/","token":"2.2\/I\/E\/31\/3\/2.2-3110","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-3109.1\/","history_text":"

This law was first created in 2015. The record of its establishment is cataloged in chapter 699<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2016, chapters 773<\/a> and 774<\/a>.<\/p>","references":[{"id":85558,"section_number":"2.2-3109","catch_line":"Prohibited contracts by other officers and employees of local governmental agencies","order_by":null,"url":"\/2.2-3109\/"}],"refers_to":[{"id":61702,"section_number":"15.2-5300","catch_line":"Finding and declaration of necessity","order_by":null,"url":"\/15.2-5300\/"},{"id":85558,"section_number":"2.2-3109","catch_line":"Prohibited contracts by other officers and employees of local governmental agencies","order_by":null,"url":"\/2.2-3109\/"},{"id":59503,"section_number":"2.2-3117","catch_line":"Disclosure form","order_by":null,"url":"\/2.2-3117\/"}],"permalink":{"id":176099,"object_type":"law","relational_id":81799,"identifier":"2.2-3109.1","token":"2.2\/I\/E\/31\/3\/2.2-3109.1","url":"\/2.2-3109.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-3109.1\/","token":"2.2\/I\/E\/31\/3\/2.2-3109.1","dublin_core":{"Title":"Prohibited contracts; additional exclusions for contracts by officers and employees of hospital authorities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-3109.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section, “hospital authority<\/span>” means a hospital authority<\/span> established pursuant to Chapter 53 (§ 15.2-5300<\/a> et seq.) of Title 15.2 or an Act of Assembly. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The provisions of \u00a7 2.2-3109<\/a> shall not apply to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The personal interest<\/span> of an officer<\/span> or employee<\/span> of a hospital authority<\/span> in additional contracts<\/span> of employment with his own governmental agency<\/span> that accrue to him because of a member of his immediate family<\/span>, provided (i) the officer<\/span> or employee<\/span> and the immediate family<\/span> member are licensed members of the medical profession or hold administrative support positions at the hospital authority<\/span>, (ii) the governing board of the hospital authority<\/span> finds that it is in the best interests of the hospital authority<\/span> and the county, city, or town for such dual employment to exist, and (iii) after such finding<\/span>, the governing board of the hospital authority<\/span> ensures that neither the officer<\/span> or employee<\/span>, nor the immediate family<\/span> member, has sole authority to supervise, evaluate, or make personnel decisions regarding the other; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Subject to approval by the governing board of the hospital authority<\/span>, an officer<\/span> or employee<\/span>’s personal interest in a contract<\/span> between his hospital authority<\/span> and a professional entity that operates a clinical practice at any medical facilities of such other hospital authority<\/span> and of which such officer<\/span> or employee<\/span> is a member or employee<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Subject to approval by the relevant governing body, an officer<\/span> or employee<\/span>’s personal interest in a contract<\/span> for research and development or commercialization of intellectual property between the hospital authority<\/span> and a business<\/span> in which the employee<\/span> has a personal interest, provided (i) the officer<\/span> or employee<\/span>’s personal interest has been disclosed to and approved by the hospital authority<\/span> prior to the time at which the contract is entered into; (ii) the officer<\/span> or employee<\/span> promptly files a disclosure statement<\/span> pursuant to § 2.2-3117<\/a> and thereafter files such statement annually on or before January 15; (iii) the local hospital authority<\/span> has established a formal policy regarding such contracts<\/span> in conformity with any applicable federal regulations that has been approved by its governing body; and (iv) no later than December 31 of each year, the local hospital authority<\/span> files an annual report with the Virginia Conflict of Interest<\/span> and Ethics Advisory Council<\/span> disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest<\/span>, the hospital authority<\/span>’s employee<\/span> responsible for administering each contract, the details of such hospital authority<\/span>’s commitment or investment of resources or finances for each contract, and any other information requested by the Virginia Conflict of Interest<\/span> and Ethics Advisory Council<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Subject to approval by the relevant governing body, an officer<\/span> or employee<\/span>’s personal interest in a contract<\/span> between the hospital authority<\/span> and a business<\/span> in which the officer<\/span> or employee<\/span> has a personal interest, provided (i) the personal interest has been disclosed to the hospital authority<\/span> prior to the time the contract is entered into; (ii) the officer<\/span> or employee<\/span> files a disclosure statement<\/span> pursuant to § 2.2-3117<\/a> and thereafter annually on or before January 15; (iii) the officer<\/span> or employee<\/span> does not participate in the hospital authority<\/span>’s decision to contract; (iv) the president or chief executive officer<\/span> of the hospital authority<\/span> finds and certifies in writing that the contract is for goods and services needed for quality patient care, including related medical education or research, by any of the hospital authority<\/span>’s medical facilities or any of its affiliated organizations, or is otherwise necessary for the fulfillment of its mission, including but not limited to the acquisition of drugs, therapies, and medical technologies; and (v) no later than December 31 of each year, the hospital authority<\/span> files an annual report with the Virginia Conflict of Interest<\/span> and Ethics Advisory Council<\/span> disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest<\/span>, the hospital authority<\/span>’s employee<\/span> responsible for administering each contract, the details of the hospital authority<\/span>’s commitment or investment of resources or finances for each contract, and any other information requested by the Virginia Conflict of Interest<\/span> and Ethics Advisory Council<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Notwithstanding the provisions of subdivisions B 3 and B 4, if the research and development or commercialization of intellectual property or the officer<\/span> or employee<\/span>’s personal interest in a contract<\/span> with a business<\/span> is subject to policies and regulations governing conflicts of interest promulgated by any agency of the United States government, including the adoption of policies requiring the disclosure and management of such conflicts of interest, the policies established by the hospital authority<\/span> pursuant to such federal requirements shall constitute compliance with subdivisions B 3 and B 4, upon notification by the hospital authority<\/span> to the Virginia Conflict of Interest<\/span> and Ethics Advisory Council<\/span> by January 31 of each year of evidence<\/span> of its compliance with such federal policies and regulations. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The governing body may delegate the authority granted under subdivision B 2 to the president or chief executive officer<\/span> of hospital authority<\/span>. If the board elects to delegate such authority, the board shall include this delegation of authority in the formal policy required by clause (iii) of subdivision B 3. In those instances where the board has delegated such authority, on or before December 1 of each year, the president or chief executive officer<\/span> of the hospital authority<\/span> shall file a report with the relevant governing body disclosing each open contract entered into subject to this provision, the names of the parties to each contract, the date each contract was executed and its term, the subject of each contractual arrangement, the nature of the conflict of interest<\/span>, the hospital authority<\/span>’s employee<\/span> responsible for administering each contract, the details of the hospital authority<\/span>’s commitment or investment of resources or finances for each contract, the details of how revenues are to be dispersed, and any other information requested by the governing body. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROHIBITED CONTRACTS; ADDITIONAL EXCLUSIONS FOR CONTRACTS BY OFFICERS AND\nEMPLOYEES OF HOSPITAL AUTHORITIES (\u00a7 2.2-3109.1)\n\nA. As used in this section, “hospital authority” means a hospital\nauthority established pursuant to Chapter 53 (§ 15.2-5300 et seq.) of Title\n15.2 or an Act of Assembly.\n\nB. The provisions of \u00a7 2.2-3109 shall not apply to:\n\n 1. The personal interest of an officer or employee of a hospital authority in\n additional contracts of employment with his own governmental agency that\n accrue to him because of a member of his immediate family, provided (i) the\n officer or employee and the immediate family member are licensed members of\n the medical profession or hold administrative support positions at the\n hospital authority, (ii) the governing board of the hospital authority finds\n that it is in the best interests of the hospital authority and the county,\n city, or town for such dual employment to exist, and (iii) after such finding,\n the governing board of the hospital authority ensures that neither the officer\n or employee, nor the immediate family member, has sole authority to supervise,\n evaluate, or make personnel decisions regarding the other;\n\n 2. Subject to approval by the governing board of the hospital authority, an\n officer or employee’s personal interest in a contract between his\n hospital authority and a professional entity that operates a clinical practice\n at any medical facilities of such other hospital authority and of which such\n officer or employee is a member or employee;\n\n 3. Subject to approval by the relevant governing body, an officer or\n employee’s personal interest in a contract for research and development\n or commercialization of intellectual property between the hospital authority\n and a business in which the employee has a personal interest, provided (i) the\n officer or employee’s personal interest has been disclosed to and\n approved by the hospital authority prior to the time at which the contract is\n entered into; (ii) the officer or employee promptly files a disclosure\n statement pursuant to § 2.2-3117 and thereafter files such statement\n annually on or before January 15; (iii) the local hospital authority has\n established a formal policy regarding such contracts in conformity with any\n applicable federal regulations that has been approved by its governing body;\n and (iv) no later than December 31 of each year, the local hospital authority\n files an annual report with the Virginia Conflict of Interest and Ethics\n Advisory Council disclosing each open contract entered into subject to this\n provision, the names of the parties to each contract, the date each contract\n was executed and its term, the subject of each contractual arrangement, the\n nature of the conflict of interest, the hospital authority’s employee\n responsible for administering each contract, the details of such hospital\n authority’s commitment or investment of resources or finances for each\n contract, and any other information requested by the Virginia Conflict of\n Interest and Ethics Advisory Council; or\n\n 4. Subject to approval by the relevant governing body, an officer or\n employee’s personal interest in a contract between the hospital\n authority and a business in which the officer or employee has a personal\n interest, provided (i) the personal interest has been disclosed to the\n hospital authority prior to the time the contract is entered into; (ii) the\n officer or employee files a disclosure statement pursuant to § 2.2-3117\n and thereafter annually on or before January 15; (iii) the officer or employee\n does not participate in the hospital authority’s decision to contract;\n (iv) the president or chief executive officer of the hospital authority finds\n and certifies in writing that the contract is for goods and services needed\n for quality patient care, including related medical education or research, by\n any of the hospital authority’s medical facilities or any of its\n affiliated organizations, or is otherwise necessary for the fulfillment of its\n mission, including but not limited to the acquisition of drugs, therapies, and\n medical technologies; and (v) no later than December 31 of each year, the\n hospital authority files an annual report with the Virginia Conflict of\n Interest and Ethics Advisory Council disclosing each open contract entered\n into subject to this provision, the names of the parties to each contract, the\n date each contract was executed and its term, the subject of each contractual\n arrangement, the nature of the conflict of interest, the hospital\n authority’s employee responsible for administering each contract, the\n details of the hospital authority’s commitment or investment of\n resources or finances for each contract, and any other information requested\n by the Virginia Conflict of Interest and Ethics Advisory Council.\n\nC. Notwithstanding the provisions of subdivisions B 3 and B 4, if the research\nand development or commercialization of intellectual property or the officer or\nemployee’s personal interest in a contract with a business is subject to\npolicies and regulations governing conflicts of interest promulgated by any\nagency of the United States government, including the adoption of policies\nrequiring the disclosure and management of such conflicts of interest, the\npolicies established by the hospital authority pursuant to such federal\nrequirements shall constitute compliance with subdivisions B 3 and B 4, upon\nnotification by the hospital authority to the Virginia Conflict of Interest and\nEthics Advisory Council by January 31 of each year of evidence of its compliance\nwith such federal policies and regulations.\n\nD. The governing body may delegate the authority granted under subdivision B 2\nto the president or chief executive officer of hospital authority. If the board\nelects to delegate such authority, the board shall include this delegation of\nauthority in the formal policy required by clause (iii) of subdivision B 3. In\nthose instances where the board has delegated such authority, on or before\nDecember 1 of each year, the president or chief executive officer of the\nhospital authority shall file a report with the relevant governing body\ndisclosing each open contract entered into subject to this provision, the names\nof the parties to each contract, the date each contract was executed and its\nterm, the subject of each contractual arrangement, the nature of the conflict of\ninterest, the hospital authority’s employee responsible for administering\neach contract, the details of the hospital authority’s commitment or\ninvestment of resources or finances for each contract, the details of how\nrevenues are to be dispersed, and any other information requested by the\ngoverning body.\n\nHISTORY: 2015, c. 699; 2016, cc. 773, 774.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}