                                 CODE OF VIRGINIA

PROHIBITED CONTRACTS BY OFFICERS AND EMPLOYEES OF STATE GOVERNMENT (§ 2.2-3106)

A. No officer or employee of any governmental agency of state government shall
have a personal interest in a contract with the governmental agency of which he
is an officer or employee, other than his own contract of employment.

B. No officer or employee of any governmental agency of state government shall
have a personal interest in a contract with any other governmental agency of
state government unless such contract is (i) awarded as a result of competitive
sealed bidding or competitive negotiation as set forth in &#xA7; 2.2-4302.1 or
2.2-4302.2 or (ii) is awarded after a finding, in writing, by the administrative
head of the governmental agency that competitive bidding or negotiation is
contrary to the best interest of the public.

C. The provisions of this section shall not apply to:

   1. An employee&#8217;s personal interest in additional contracts of employment
   with his own governmental agency that accrue to him because of a member of his
   immediate family, provided that the employee does not exercise any control
   over the employment or the employment activities of the member of his
   immediate family and the employee is not in a position to influence those
   activities;

   2. The personal interest of an officer or employee of a public institution of
   higher education in additional contracts of employment with his own
   governmental agency that accrue to him because of a member of his immediate
   family, provided that (i) the officer or employee and the immediate family
   member are engaged in teaching, research, or administrative support positions
   at the educational institution; (ii) the governing board of the educational
   institution finds that it is in the best interests of the institution and the
   Commonwealth for such dual employment to exist; and (iii) after such finding,
   the governing board of the educational institution ensures that the officer or
   employee, or the immediate family member, does not have sole authority to
   supervise, evaluate, or make personnel decisions regarding the other;

   3. An officer&#8217;s or employee&#8217;s personal interest in a contract of
   employment with any other governmental agency of state government;

   4. Contracts for the sale by a governmental agency of services or goods at
   uniform prices available to the general public;

   5. An employee&#8217;s personal interest in a contract between a public
   institution of higher education in the Commonwealth and a publisher or
   wholesaler of textbooks or other educational materials for students, which
   accrues to him solely because he has authored or otherwise created such
   textbooks or materials;

   6. An employee&#8217;s personal interest in a contract with his or her
   employing public institution of higher education to acquire the collections or
   scholarly works owned by the employee, including manuscripts, musical scores,
   poetry, paintings, books or other materials, writings, or papers of an
   academic, research, or cultural value to the institution, provided that the
   president of the institution approves the acquisition of such collections or
   scholarly works as being in the best interests of the institution&#8217;s
   public mission of service, research, or education;

   7. Subject to approval by the board of visitors, an employee&#8217;s personal
   interest in a contract between a public institution of higher education in the
   Commonwealth that operates a school of medicine or dentistry and a
   not-for-profit nonstock corporation that operates a clinical practice within
   such public institution of higher education and of which such employee is a
   member or employee;

   8. Subject to approval by the relevant board of visitors, an employee&#8217;s
   personal interest in a contract for research and development or
   commercialization of intellectual property between a public institution of
   higher education in the Commonwealth and a business in which the employee has
   a personal interest, if (i) the employee&#8217;s personal interest has been
   disclosed to and approved by such public institution of higher education prior
   to the time at which the contract is entered into; (ii) the employee promptly
   files a disclosure statement pursuant to &#xA7; 2.2-3117 and thereafter files
   such statement annually on or before February 1; (iii) the institution has
   established a formal policy regarding such contracts, approved by the State
   Council of Higher Education for Virginia; and (iv) no later than December 31
   of each year, the institution files an annual report with the Secretary of the
   Commonwealth 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 institution&#8217;s employee
   responsible for administering each contract, the details of the
   institution&#8217;s commitment or investment of resources or finances for each
   contract, and any other information requested by the Secretary of the
   Commonwealth; or

   9. Subject to approval by the relevant board of visitors, an employee&#8217;s
   personal interest in a contract between a public institution of higher
   education in the Commonwealth and a business in which the employee has a
   personal interest, if (i) the personal interest has been disclosed to the
   institution prior to the time the contract is entered into; (ii) the employee
   files a disclosure statement pursuant to &#xA7; 2.2-3117 and thereafter
   annually on or before February 1; (iii) the employee does not participate in
   the institution&#8217;s decision to contract; (iv) the president of the
   institution 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 the institution&#8217;s medical center, its affiliated
   teaching hospitals and other organizations necessary for the fulfillment of
   its mission, including the acquisition of drugs, therapies and medical
   technologies; and (v) no later than December 31 of each year, the institution
   files an annual report with the Secretary of the Commonwealth disclosing each
   open contract entered 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
   institution&#8217;s employee responsible for administering each contract, the
   details of the institution&#8217;s commitment or investment of resources or
   finances for each contract, and any other information requested by the
   Secretary of the Commonwealth.

D. Notwithstanding the provisions of subdivisions C 8 and C 9, if the research
and development or commercialization of intellectual property or the
employee&#8217;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 interests, the
policies established by the Eastern Virginia Health Sciences Center at Old
Dominion University pursuant to such federal requirements shall constitute
compliance with subdivisions C 8 and C 9, upon notification by the Eastern
Virginia Health Sciences Center at Old Dominion University to the Secretary of
the Commonwealth by January 31 of each year of evidence of their compliance with
such federal policies and regulations.

E. The board of visitors may delegate the authority granted under subdivision C
8 to the president of the institution. 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 C 8. In those instances where the
board has delegated such authority, on or before December 1 of each year, the
president of the relevant institution shall file a report with the relevant
board of visitors 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 institution&#8217;s employee responsible for
administering each contract, the details of the institution&#8217;s commitment
or investment of resources or finances for each contract, the details of how
revenues are to be disbursed, and any other information requested by the board
of visitors.

HISTORY: 1987, Sp. Sess., c. 1, § 2.1-639.6; 1989, c. 74; 1991, c. 470; 1993,
c. 876; 1995, c. 403; 1998, c. 838; 2001, c. 844; 2002, cc. 87, 478; 2003, c.
646; 2006, c. 839; 2013, c. 583; 2015, cc. 763, 777; 2016, cc. 773, 774; 2023,
cc. 351, 352, 756, 778.