2006 Code of Virginia § 2.2-3112 - Prohibited conduct concerning personal interest in a transaction; exceptions

2.2-3112. Prohibited conduct concerning personal interest in a transaction;exceptions.

A. Each officer and employee of any state or local governmental or advisoryagency who has a personal interest in a transaction:

1. Shall disqualify himself from participating in the transaction if (i) thetransaction has application solely to property or a business or governmentalagency in which he has a personal interest or a business that has aparent-subsidiary or affiliated business entity relationship with thebusiness in which he has a personal interest or (ii) he is unable toparticipate pursuant to subdivision 2, 3 or 4. Any disqualification under theprovisions of this subdivision shall be recorded in the public records of theofficer's or employee's governmental or advisory agency. The officer oremployee shall disclose his personal interest as required by 2.2-3114 E or 2.2-3115 E and shall not vote or in any manner act on behalf of his agencyin the transaction. The officer or employee shall be prohibited from (i)attending any portion of a closed meeting authorized by the Virginia Freedomof Information Act ( 2.2-3700 et seq.) when the matter in which he has apersonal interest is discussed and (ii) discussing the matter in which he hasa personal interest with other governmental officers or employees at any time;

2. May participate in the transaction if he is a member of a business,profession, occupation, or group of three or more persons the members ofwhich are affected by the transaction, and he complies with the declarationrequirements of 2.2-3114 F or 2.2-3115 G;

3. May participate in the transaction when a party to the transaction is aclient of his firm if he does not personally represent or provide services tosuch client and he complies with the declaration requirements of 2.2-3114 Gor 2.2-3115 H; or

4. May participate in the transaction if it affects the public generally,even though his personal interest, as a member of the public, may also beaffected by that transaction.

B. Disqualification under the provisions of this section shall not preventany employee having a personal interest in a transaction in which his agencyis involved from representing himself or a member of his immediate family insuch transaction provided he does not receive compensation for suchrepresentation and provided he complies with the disqualification andrelevant disclosure requirements of this chapter.

C. If disqualifications of officers or employees in accordance with thissection leave less than the number required by law to act, the remainingmember or members shall have authority to act for the agency by majorityvote, unless a unanimous vote of all members is required by law, in whichcase authority to act shall require a unanimous vote of remaining members.Notwithstanding any provisions of this chapter to the contrary, members of alocal governing body whose sole interest in any proposed sale, contract ofsale, exchange, lease or conveyance is by virtue of their employment by abusiness involved in a proposed sale, contract of sale, exchange, lease orconveyance, and where such member's or members' vote is essential to aconstitutional majority required pursuant to Article VII, Section 9 of theConstitution of Virginia and 15.2-2100, such member or members of the localgoverning body may vote and participate in the deliberations of the governingbody concerning whether to approve, enter into or execute such sale, contractof sale, exchange, lease or conveyance. Official action taken undercircumstances that violate this section may be rescinded by the agency onsuch terms as the interests of the agency and innocent third parties require.

D. The provisions of subsection A shall not prevent an officer or employeefrom participating in a transaction merely because such officer or employeeis a party in a legal proceeding of a civil nature concerning suchtransaction.

E. The provisions of subsection A shall not prevent an employee fromparticipating in a transaction regarding textbooks or other educationalmaterial for students at state institutions of higher education, when thosetextbooks or materials have been authored or otherwise created by theemployee.

(1987, Sp. Sess., c. 1, 2.1-639.11; 2001, c. 844; 2003, c. 694.)