{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/2.2-4321.1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/2.2-4321.1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/2.2-4321.1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/2.2-4321.1.html"}],"law_id":62909,"edition_id":1,"section_id":62909,"structure_id":12805,"section_number":"2.2-4321.1","catch_line":"Prohibited contracts; exceptions; determination by Department of Taxation; appeal; remedies","history":"2003, cc. 994, 1006; 2006, c. 408.","full_text":"A\n\nNo state agency shall contract for goods or services with a nongovernmental source if the source, or any affiliate of the source, is subject to the provisions of (i) § 58.1-612 and fails or refuses to collect and remit the tax on its sales delivered by any means to locations within the Commonwealth or (ii) Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.) of Chapter 3 of Title 58.1 and fails or refuses to remit any tax due thereunder. The provisions of clause (ii) shall not apply to any person that has (a) entered into a payment agreement with the Department of Taxation to pay the tax and is not delinquent under the terms of the agreement or (b) appealed the assessment of the tax in accordance with law and such appeal is pending.B\n\nA state agency may contract for goods or services with a source prohibited under subsection A in the event of an emergency or where the nongovernmental source is the sole source of such goods or services.C\n\nThe determination of whether a source is a prohibited source shall be made by the Department of Taxation after providing the prohibited source with notice and an opportunity to respond to the proposed determination. The Department of Taxation shall notify the Department of General Services of its determination.D\n\nThe Department of General Services shall post public notice of all prohibited sources on its public internet procurement website and on other appropriate websites.E\n\nThe remedies provided in Article 5 (§ 2.2-4357 et seq.) of this chapter shall not apply to any determination made pursuant to this section and the sole remedy for any adverse determination shall be as provided in subsection F.F\n\nAny source aggrieved by a determination of the Department of Taxation made under this section may apply to the Tax Commissioner for correction of the determination. The Tax Commissioner shall respond within 30 days of receipt of the application for corrective action. Within 10 days after receipt of the Tax Commissioner’s response, the aggrieved source may appeal to the Circuit Court for the City of Richmond. If it is determined that the determination of the Department of Taxation was arbitrary, capricious, or not in accordance with law, the sole relief shall be restoration of the source’s eligibility to contract with state agencies. No claim for damages or attorney’s fees shall be awarded.G\n\nAny action of the Department of Taxation, the Department of General Services, or of any state agency under this section shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).H\n\nFor the purposes of this section, “state agency” means any authority, board, department, instrumentality, institution, agency or other unit of state government. State agency shall not include any public institution of higher education or any county, city or town or any local or regional governmental authority.","order_by":null,"text":{"0":{"id":229485,"text":"No state agency shall contract for goods or services with a nongovernmental source if the source, or any affiliate of the source, is subject to the provisions of (i) § 58.1-612 and fails or refuses to collect and remit the tax on its sales delivered by any means to locations within the Commonwealth or (ii) Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.) of Chapter 3 of Title 58.1 and fails or refuses to remit any tax due thereunder. The provisions of clause (ii) shall not apply to any person that has (a) entered into a payment agreement with the Department of Taxation to pay the tax and is not delinquent under the terms of the agreement or (b) appealed the assessment of the tax in accordance with law and such appeal is pending.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":229486,"text":"A state agency may contract for goods or services with a source prohibited under subsection A in the event of an emergency or where the nongovernmental source is the sole source of such goods or services.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":229487,"text":"The determination of whether a source is a prohibited source shall be made by the Department of Taxation after providing the prohibited source with notice and an opportunity to respond to the proposed determination. The Department of Taxation shall notify the Department of General Services of its determination.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":229488,"text":"The Department of General Services shall post public notice of all prohibited sources on its public internet procurement website and on other appropriate websites.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":229489,"text":"The remedies provided in Article 5 (§ 2.2-4357 et seq.) of this chapter shall not apply to any determination made pursuant to this section and the sole remedy for any adverse determination shall be as provided in subsection F.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":229490,"text":"Any source aggrieved by a determination of the Department of Taxation made under this section may apply to the Tax Commissioner for correction of the determination. The Tax Commissioner shall respond within 30 days of receipt of the application for corrective action. Within 10 days after receipt of the Tax Commissioner’s response, the aggrieved source may appeal to the Circuit Court for the City of Richmond. If it is determined that the determination of the Department of Taxation was arbitrary, capricious, or not in accordance with law, the sole relief shall be restoration of the source’s eligibility to contract with state agencies. No claim for damages or attorney’s fees shall be awarded.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":229491,"text":"Any action of the Department of Taxation, the Department of General Services, or of any state agency under this section shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000 et seq.).","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":229492,"text":"For the purposes of this section, “state agency” means any authority, board, department, instrumentality, institution, agency or other unit of state government. State agency shall not include any public institution of higher education or any county, city or town or any local or regional governmental authority.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G"}},"ancestry":[{"id":12805,"edition_id":1,"name":"Contract Formation and Administration","identifier":"2","label":"article","depth":5,"order_by":1,"parent_id":12752,"metadata":{},"date_created":"2026-06-26 03:43:54","date_modified":"2026-06-26 03:43:54","permalink":{"id":177013,"object_type":"structure","relational_id":12805,"identifier":"2","token":"2.2\/II\/B\/43\/2","url":"\/2.2\/II\/B\/43\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12752,"edition_id":1,"name":"Virginia Public Procurement Act","identifier":"43","label":"chapter","depth":4,"order_by":1,"parent_id":12751,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176989,"object_type":"structure","relational_id":12752,"identifier":"43","token":"2.2\/II\/B\/43","url":"\/2.2\/II\/B\/43\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12751,"edition_id":1,"name":"Transaction of Public Business","identifier":"B","label":"part","depth":3,"order_by":1,"parent_id":12750,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176445,"object_type":"structure","relational_id":12751,"identifier":"B","token":"2.2\/II\/B","url":"\/2.2\/II\/B\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12750,"edition_id":1,"name":"Administration of State Government","identifier":"II","label":"subtitle","depth":2,"order_by":1,"parent_id":12749,"metadata":{},"date_created":"2026-06-26 03:43:51","date_modified":"2026-06-26 03:43:51","permalink":{"id":176253,"object_type":"structure","relational_id":12750,"identifier":"II","token":"2.2\/II","url":"\/2.2\/II\/","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":60713,"structure_id":12805,"section_number":"2.2-4303","catch_line":"Methods of procurement","url":"\/2.2-4303\/","token":"2.2\/II\/B\/43\/2\/2.2-4303","metadata":false},{"id":61675,"structure_id":12805,"section_number":"2.2-4303.01","catch_line":"High-risk contracts; definition; review","url":"\/2.2-4303.01\/","token":"2.2\/II\/B\/43\/2\/2.2-4303.01","metadata":false},{"id":63722,"structure_id":12805,"section_number":"2.2-4303.1","catch_line":"Architectural and professional engineering term contracting; limitations","url":"\/2.2-4303.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4303.1","metadata":false},{"id":54690,"structure_id":12805,"section_number":"2.2-4303.2","catch_line":"Job order contracting; limitations","url":"\/2.2-4303.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4303.2","metadata":false},{"id":60269,"structure_id":12805,"section_number":"2.2-4304","catch_line":"Joint and cooperative procurement","url":"\/2.2-4304\/","token":"2.2\/II\/B\/43\/2\/2.2-4304","metadata":false},{"id":67205,"structure_id":12805,"section_number":"2.2-4305","catch_line":"Competitive procurement by localities on state-aid projects","url":"\/2.2-4305\/","token":"2.2\/II\/B\/43\/2\/2.2-4305","metadata":false},{"id":85651,"structure_id":12805,"section_number":"2.2-4306","catch_line":"Repealed","url":"\/2.2-4306\/","token":"2.2\/II\/B\/43\/2\/2.2-4306","metadata":false},{"id":80442,"structure_id":12805,"section_number":"2.2-4308.1","catch_line":"Purchase of owner-controlled insurance in construction projects","url":"\/2.2-4308.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4308.1","metadata":false},{"id":77240,"structure_id":12805,"section_number":"2.2-4308.2","catch_line":"Registration and use of federal employment eligibility verification program required; debarment","url":"\/2.2-4308.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4308.2","metadata":false},{"id":76051,"structure_id":12805,"section_number":"2.2-4309","catch_line":"Modification of the contract","url":"\/2.2-4309\/","token":"2.2\/II\/B\/43\/2\/2.2-4309","metadata":false},{"id":59798,"structure_id":12805,"section_number":"2.2-4310","catch_line":"Discrimination prohibited; participation of small, women-owned, minority-owned, military family-owned, and service disabled veteran-owned businesses and employment services organizations","url":"\/2.2-4310\/","token":"2.2\/II\/B\/43\/2\/2.2-4310","metadata":false},{"id":83482,"structure_id":12805,"section_number":"2.2-4310.1","catch_line":"Awards as a result of any authorized enhancement or remedial measure; requirements","url":"\/2.2-4310.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4310.1","metadata":false},{"id":70958,"structure_id":12805,"section_number":"2.2-4310.2","catch_line":"Executive branch agency's goals for participation by small businesses; requirements","url":"\/2.2-4310.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4310.2","metadata":false},{"id":77101,"structure_id":12805,"section_number":"2.2-4310.3","catch_line":"Fiscal data pertaining to certain enhancement or remedial measures","url":"\/2.2-4310.3\/","token":"2.2\/II\/B\/43\/2\/2.2-4310.3","metadata":false},{"id":62578,"structure_id":12805,"section_number":"2.2-4311","catch_line":"Employment discrimination by contractor prohibited; required contract provisions","url":"\/2.2-4311\/","token":"2.2\/II\/B\/43\/2\/2.2-4311","metadata":false},{"id":67743,"structure_id":12805,"section_number":"2.2-4311.1","catch_line":"Compliance with federal, state, and local laws and federal immigration law; required contract provisions","url":"\/2.2-4311.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4311.1","metadata":false},{"id":82121,"structure_id":12805,"section_number":"2.2-4311.2","catch_line":"Compliance with state law; foreign and domestic businesses authorized to transact business in the Commonwealth","url":"\/2.2-4311.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4311.2","metadata":false},{"id":70336,"structure_id":12805,"section_number":"2.2-4311.3","catch_line":"Compliance with state law; contract terms inconsistent with state law","url":"\/2.2-4311.3\/","token":"2.2\/II\/B\/43\/2\/2.2-4311.3","metadata":false},{"id":62129,"structure_id":12805,"section_number":"2.2-4311.4","catch_line":"Procurement of imported goods; forced and indentured child labor prohibition","url":"\/2.2-4311.4\/","token":"2.2\/II\/B\/43\/2\/2.2-4311.4","metadata":false},{"id":79415,"structure_id":12805,"section_number":"2.2-4312","catch_line":"Drug-free workplace to be maintained by contractor; required contract provisions","url":"\/2.2-4312\/","token":"2.2\/II\/B\/43\/2\/2.2-4312","metadata":false},{"id":75321,"structure_id":12805,"section_number":"2.2-4313","catch_line":"Petition for recycled goods and products; periodic review of procurement standards","url":"\/2.2-4313\/","token":"2.2\/II\/B\/43\/2\/2.2-4313","metadata":false},{"id":87067,"structure_id":12805,"section_number":"2.2-4314","catch_line":"Petition for procurement of less toxic goods and products; periodic review of procurement standards","url":"\/2.2-4314\/","token":"2.2\/II\/B\/43\/2\/2.2-4314","metadata":false},{"id":58266,"structure_id":12805,"section_number":"2.2-4315","catch_line":"Use of brand names","url":"\/2.2-4315\/","token":"2.2\/II\/B\/43\/2\/2.2-4315","metadata":false},{"id":59468,"structure_id":12805,"section_number":"2.2-4316","catch_line":"Comments concerning specifications","url":"\/2.2-4316\/","token":"2.2\/II\/B\/43\/2\/2.2-4316","metadata":false},{"id":84046,"structure_id":12805,"section_number":"2.2-4317","catch_line":"Prequalification generally; prequalification for construction","url":"\/2.2-4317\/","token":"2.2\/II\/B\/43\/2\/2.2-4317","metadata":false},{"id":64926,"structure_id":12805,"section_number":"2.2-4318","catch_line":"Negotiation with lowest responsible bidder","url":"\/2.2-4318\/","token":"2.2\/II\/B\/43\/2\/2.2-4318","metadata":false},{"id":64505,"structure_id":12805,"section_number":"2.2-4319","catch_line":"Cancellation, rejection of bids; waiver of informalities","url":"\/2.2-4319\/","token":"2.2\/II\/B\/43\/2\/2.2-4319","metadata":false},{"id":76824,"structure_id":12805,"section_number":"2.2-4320","catch_line":"Exclusion of insurance bids prohibited","url":"\/2.2-4320\/","token":"2.2\/II\/B\/43\/2\/2.2-4320","metadata":false},{"id":59483,"structure_id":12805,"section_number":"2.2-4321","catch_line":"Debarment","url":"\/2.2-4321\/","token":"2.2\/II\/B\/43\/2\/2.2-4321","metadata":false},{"id":62909,"structure_id":12805,"section_number":"2.2-4321.1","catch_line":"Prohibited contracts; exceptions; determination by Department of Taxation; appeal; remedies","url":"\/2.2-4321.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4321.1","metadata":false},{"id":74446,"structure_id":12805,"section_number":"2.2-4321.2","catch_line":"Public works contracts; project labor agreements authorized","url":"\/2.2-4321.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4321.2","metadata":false},{"id":56761,"structure_id":12805,"section_number":"2.2-4321.3","catch_line":"Payment of prevailing wage for work performed on public works contracts; penalty","url":"\/2.2-4321.3\/","token":"2.2\/II\/B\/43\/2\/2.2-4321.3","metadata":false},{"id":79921,"structure_id":12805,"section_number":"2.2-4322","catch_line":"Acceptance of bids submitted to the Department of Transportation","url":"\/2.2-4322\/","token":"2.2\/II\/B\/43\/2\/2.2-4322","metadata":false},{"id":86146,"structure_id":12805,"section_number":"2.2-4323","catch_line":"Purchase programs for recycled goods; agency responsibilities","url":"\/2.2-4323\/","token":"2.2\/II\/B\/43\/2\/2.2-4323","metadata":false},{"id":66033,"structure_id":12805,"section_number":"2.2-4323.1","catch_line":"Purchase of flags of the United States and the Commonwealth by public bodies","url":"\/2.2-4323.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4323.1","metadata":false},{"id":60604,"structure_id":12805,"section_number":"2.2-4324","catch_line":"(Effective July 1, 2027) Preference for Virginia products with recycled content and for Virginia firms","url":"\/2.2-4324\/","token":"2.2\/II\/B\/43\/2\/2.2-4324","metadata":false},{"id":76844,"structure_id":12805,"section_number":"2.2-4325","catch_line":"Preference for Virginia coal used in state facilities","url":"\/2.2-4325\/","token":"2.2\/II\/B\/43\/2\/2.2-4325","metadata":false},{"id":75140,"structure_id":12805,"section_number":"2.2-4326","catch_line":"Preference for recycled paper and paper products used by state agencies","url":"\/2.2-4326\/","token":"2.2\/II\/B\/43\/2\/2.2-4326","metadata":false},{"id":82739,"structure_id":12805,"section_number":"2.2-4327","catch_line":"Preference for community reinvestment activities in contracts for investment of funds","url":"\/2.2-4327\/","token":"2.2\/II\/B\/43\/2\/2.2-4327","metadata":false},{"id":62013,"structure_id":12805,"section_number":"2.2-4328","catch_line":"Preference for local products and firms; applicability","url":"\/2.2-4328\/","token":"2.2\/II\/B\/43\/2\/2.2-4328","metadata":false},{"id":73628,"structure_id":12805,"section_number":"2.2-4328.1","catch_line":"Preference for energy-efficient and water-efficient goods","url":"\/2.2-4328.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4328.1","metadata":false},{"id":63397,"structure_id":12805,"section_number":"2.2-4328.2","catch_line":"Purchase of personal protective equipment by state agencies","url":"\/2.2-4328.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4328.2","metadata":false},{"id":81072,"structure_id":12805,"section_number":"2.2-4328.3","catch_line":"Solar photovoltaic equipment and facilities","url":"\/2.2-4328.3\/","token":"2.2\/II\/B\/43\/2\/2.2-4328.3","metadata":false},{"id":64067,"structure_id":12805,"section_number":"2.2-4329","catch_line":"Expired","url":"\/2.2-4329\/","token":"2.2\/II\/B\/43\/2\/2.2-4329","metadata":false},{"id":72432,"structure_id":12805,"section_number":"2.2-4329.1","catch_line":"Energy forward pricing mechanisms","url":"\/2.2-4329.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4329.1","metadata":false},{"id":73315,"structure_id":12805,"section_number":"2.2-4330","catch_line":"Withdrawal of bid due to error","url":"\/2.2-4330\/","token":"2.2\/II\/B\/43\/2\/2.2-4330","metadata":false},{"id":66024,"structure_id":12805,"section_number":"2.2-4331","catch_line":"Contract pricing arrangements","url":"\/2.2-4331\/","token":"2.2\/II\/B\/43\/2\/2.2-4331","metadata":false},{"id":86314,"structure_id":12805,"section_number":"2.2-4332","catch_line":"Workers' compensation requirements for construction contractors and subcontractors","url":"\/2.2-4332\/","token":"2.2\/II\/B\/43\/2\/2.2-4332","metadata":false},{"id":53971,"structure_id":12805,"section_number":"2.2-4333","catch_line":"Retainage on construction contracts","url":"\/2.2-4333\/","token":"2.2\/II\/B\/43\/2\/2.2-4333","metadata":false},{"id":68826,"structure_id":12805,"section_number":"2.2-4334","catch_line":"Deposit of certain retained funds on certain contracts with local governments; penalty for failure to timely complete","url":"\/2.2-4334\/","token":"2.2\/II\/B\/43\/2\/2.2-4334","metadata":false},{"id":84415,"structure_id":12805,"section_number":"2.2-4335","catch_line":"Public construction contract provisions barring damages for unreasonable delays declared void","url":"\/2.2-4335\/","token":"2.2\/II\/B\/43\/2\/2.2-4335","metadata":false},{"id":55647,"structure_id":12805,"section_number":"2.2-4336","catch_line":"Bid bonds; construction contracts","url":"\/2.2-4336\/","token":"2.2\/II\/B\/43\/2\/2.2-4336","metadata":false},{"id":79610,"structure_id":12805,"section_number":"2.2-4337","catch_line":"Performance and payment bonds","url":"\/2.2-4337\/","token":"2.2\/II\/B\/43\/2\/2.2-4337","metadata":false},{"id":86516,"structure_id":12805,"section_number":"2.2-4338","catch_line":"Alternative forms of security","url":"\/2.2-4338\/","token":"2.2\/II\/B\/43\/2\/2.2-4338","metadata":false},{"id":66839,"structure_id":12805,"section_number":"2.2-4339","catch_line":"Bonds on other than construction contracts","url":"\/2.2-4339\/","token":"2.2\/II\/B\/43\/2\/2.2-4339","metadata":false},{"id":54251,"structure_id":12805,"section_number":"2.2-4340","catch_line":"Action on performance bond","url":"\/2.2-4340\/","token":"2.2\/II\/B\/43\/2\/2.2-4340","metadata":false},{"id":65780,"structure_id":12805,"section_number":"2.2-4340.1","catch_line":"Statute of limitations on construction contracts","url":"\/2.2-4340.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4340.1","metadata":false},{"id":85767,"structure_id":12805,"section_number":"2.2-4340.2","catch_line":"Statute of limitations on architectural and engineering contracts","url":"\/2.2-4340.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4340.2","metadata":false},{"id":56940,"structure_id":12805,"section_number":"2.2-4341","catch_line":"Actions on payment bonds; waiver of right to sue","url":"\/2.2-4341\/","token":"2.2\/II\/B\/43\/2\/2.2-4341","metadata":false},{"id":71233,"structure_id":12805,"section_number":"2.2-4342","catch_line":"Public inspection of certain records","url":"\/2.2-4342\/","token":"2.2\/II\/B\/43\/2\/2.2-4342","metadata":false}],"previous_section":{"id":59483,"structure_id":12805,"section_number":"2.2-4321","catch_line":"Debarment","url":"\/2.2-4321\/","token":"2.2\/II\/B\/43\/2\/2.2-4321","metadata":false},"next_section":{"id":74446,"structure_id":12805,"section_number":"2.2-4321.2","catch_line":"Public works contracts; project labor agreements authorized","url":"\/2.2-4321.2\/","token":"2.2\/II\/B\/43\/2\/2.2-4321.2","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/2.2-4321.1\/","history_text":"

This law was first created in 2003. The record of its establishment is cataloged in chapters 994<\/a> and 1006<\/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 2006, chapter 408<\/a>.<\/p>","references":false,"refers_to":[{"id":86911,"section_number":"2.2-4000","catch_line":"Short title; purpose","order_by":null,"url":"\/2.2-4000\/"},{"id":60959,"section_number":"2.2-4357","catch_line":"Ineligibility","order_by":null,"url":"\/2.2-4357\/"},{"id":62270,"section_number":"58.1-320","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-320\/"},{"id":60955,"section_number":"58.1-400","catch_line":"Imposition of tax","order_by":null,"url":"\/58.1-400\/"},{"id":76556,"section_number":"58.1-612","catch_line":"Tax collectible from dealers; \"dealer\" defined; jurisdiction","order_by":null,"url":"\/58.1-612\/"}],"permalink":{"id":177131,"object_type":"law","relational_id":62909,"identifier":"2.2-4321.1","token":"2.2\/II\/B\/43\/2\/2.2-4321.1","url":"\/2.2-4321.1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/2.2-4321.1\/","token":"2.2\/II\/B\/43\/2\/2.2-4321.1","dublin_core":{"Title":"Prohibited contracts; exceptions; determination by Department of Taxation; appeal; remedies","Type":"Text","Format":"text\/html","Identifier":"\u00a7 2.2-4321.1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No state agency<\/span> shall contract<\/span> for goods<\/span> or services<\/span> with a nongovernmental source if the source, or any affiliate<\/span> of the source, is subject to the provisions of (i) § 58.1-612<\/a> and fails or refuses to collect and remit the tax on its sales delivered by any means to locations within the Commonwealth or (ii) Article 2 (§ 58.1-320<\/a> et seq.) or Article 10 (§ 58.1-400<\/a> et seq.) of Chapter 3 of Title 58.1 and fails or refuses to remit any tax due thereunder. The provisions of clause (ii) shall not apply to any person that has (a) entered into a payment agreement with the Department of Taxation to pay the tax and is not delinquent under the terms of the agreement or (b) appealed the assessment of the tax in accordance with law<\/span> and such appeal<\/span> is pending. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> A state agency<\/span> may contract<\/span> for goods<\/span> or services<\/span> with a source prohibited under subsection A in the event of an emergency or where the nongovernmental source is the sole source of such goods<\/span> or services<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> The determination of whether a source is a prohibited source shall be made by the Department of Taxation after providing the prohibited source with notice and an opportunity to respond to the proposed determination. The Department of Taxation shall notify the Department of General Services<\/span> of its determination. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Department of General Services<\/span> shall post public notice of all prohibited sources on its public internet procurement website and on other appropriate websites. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> The remedies provided in Article 5 (§ 2.2-4357<\/a> et seq.) of this chapter shall not apply to any determination made pursuant to this section and the sole remedy for any adverse determination shall be as provided in subsection F. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> Any source aggrieved by a determination of the Department of Taxation made under this section may apply to the Tax Commissioner for correction of the determination. The Tax Commissioner shall respond within 30 days of receipt of the application for corrective action. Within 10 days after receipt of the Tax Commissioner’s response, the aggrieved source may appeal<\/span> to the Circuit<\/span> Court<\/span> for the City of Richmond. If it is determined that the determination of the Department of Taxation was arbitrary, capricious, or not in accordance with law<\/span>, the sole relief shall be restoration of the source’s eligibility to contract<\/span> with state agencies. No claim for damages<\/span> or attorney’s fees shall be awarded. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> Any action of the Department of Taxation, the Department of General Services<\/span>, or of any state agency<\/span> under this section shall be exempt from the provisions of the Administrative Process Act (§ 2.2-4000<\/a> et seq.). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> For the purposes of this section, “state agency<\/span>” means any authority, board, department, instrumentality, institution, agency or other unit of state government. State agency<\/span> shall not include any public institution of higher education or any county, city or town or any local or regional governmental authority. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPROHIBITED CONTRACTS; EXCEPTIONS; DETERMINATION BY DEPARTMENT OF TAXATION;\nAPPEAL; REMEDIES (\u00a7 2.2-4321.1)\n\nA. No state agency shall contract for goods or services with a nongovernmental\nsource if the source, or any affiliate of the source, is subject to the\nprovisions of (i) § 58.1-612 and fails or refuses to collect and remit the\ntax on its sales delivered by any means to locations within the Commonwealth or\n(ii) Article 2 (§ 58.1-320 et seq.) or Article 10 (§ 58.1-400 et seq.)\nof Chapter 3 of Title 58.1 and fails or refuses to remit any tax due thereunder.\nThe provisions of clause (ii) shall not apply to any person that has (a) entered\ninto a payment agreement with the Department of Taxation to pay the tax and is\nnot delinquent under the terms of the agreement or (b) appealed the assessment\nof the tax in accordance with law and such appeal is pending.\n\nB. A state agency may contract for goods or services with a source prohibited\nunder subsection A in the event of an emergency or where the nongovernmental\nsource is the sole source of such goods or services.\n\nC. The determination of whether a source is a prohibited source shall be made by\nthe Department of Taxation after providing the prohibited source with notice and\nan opportunity to respond to the proposed determination. The Department of\nTaxation shall notify the Department of General Services of its determination.\n\nD. The Department of General Services shall post public notice of all prohibited\nsources on its public internet procurement website and on other appropriate\nwebsites.\n\nE. The remedies provided in Article 5 (§ 2.2-4357 et seq.) of this chapter\nshall not apply to any determination made pursuant to this section and the sole\nremedy for any adverse determination shall be as provided in subsection F.\n\nF. Any source aggrieved by a determination of the Department of Taxation made\nunder this section may apply to the Tax Commissioner for correction of the\ndetermination. The Tax Commissioner shall respond within 30 days of receipt of\nthe application for corrective action. Within 10 days after receipt of the Tax\nCommissioner’s response, the aggrieved source may appeal to the Circuit\nCourt for the City of Richmond. If it is determined that the determination of\nthe Department of Taxation was arbitrary, capricious, or not in accordance with\nlaw, the sole relief shall be restoration of the source’s eligibility to\ncontract with state agencies. No claim for damages or attorney’s fees\nshall be awarded.\n\nG. Any action of the Department of Taxation, the Department of General Services,\nor of any state agency under this section shall be exempt from the provisions of\nthe Administrative Process Act (§ 2.2-4000 et seq.).\n\nH. For the purposes of this section, “state agency” means any\nauthority, board, department, instrumentality, institution, agency or other unit\nof state government. State agency shall not include any public institution of\nhigher education or any county, city or town or any local or regional\ngovernmental authority.\n\nHISTORY: 2003, cc. 994, 1006; 2006, c. 408.","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}}