Contracts and Bids
Financial Interest in a Vendor

A state agency may not enter into a contract for the purchase of goods or services with a private vendor if any of the following agency employees or officials have a financial interest in the vendor:

1. A member of the agency’s governing body.
2. The governing official, executive director, general counsel, chief procurement officer, or procurement director of the agency.
   –or–
3. A family member related to an employee or official described in (1) or (2) within the second degree by affinity or consanguinity.

A state agency employee or official has a financial interest in a vendor if the employee or official:

• Owns or controls (directly or indirectly) an ownership interest of at least one percent in the vendor (including the right to share in profits) proceeds or capital gains.
  –or–
• Can reasonably foresee that a contract with the vendor could result in a financial benefit to the employee or official.

A financial interest prohibited by this section does not include:

• Retirement plan
• Blind trust
• Insurance coverage
  –or–
• Ownership interest of less than one percent in a corporation

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