SB 57 — Conflict of Interests Act, State and Local Government; definition of gift, certain tickets, etc.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E529 An Act to amend and reenact § 2.2-3101 of the Code of Virginia, relating to State and Local NGovernment fees.nment Conflict of Interests Act;

certain tickets and registration oRor admission Ofees. [S 57] L Approved L Be it enacted by the General Assembly of Virginia:

E[S 1.57] Approved April 11, 2022 Be it enacted by the General Assembly of Virginia:

1.

D§ As2.2-3101. used in this chapter, unless the context requires a different meaning:

"AdvisoryDefinitions. agency" means any board, commission, committee or post which does not exercise any sovereign power or duty, but is appointed by a governmental agency or officer or is created by law for the purpose of making studies or recommendations, or advising or consulting with a governmental agency.

"AffiliatedAs businessused entity relationship" means a relationship, other than a parent-subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in Bhethis otherchapter, businessunless entity, (ii) a controlling owner in one entity is also a controlling owner in the othe7context entity,requires or in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person owns or manages the two entities, there are common or commingled funds or assets, the business entities share the use of the same offices or employees, or otherwise share activities, resources or personnel on a regulardifferent basis,meaning: or there is otherwise a close working relationship between the entities.

"Advisory agency" means any board, commission, committee or post which does not exercise any sovereign power or duty, but is appointed by a governmental agency or officer or is created by law for agency.pose of making studies or recommendations, or advising or consulting with a governmental "Affiliated business entity relationship" means a relationship, other than a parent-subsidiary relationship, that exists when (i) one business entity has a controlling ownership interest in the other business entity, (ii) a controlling owner in one entity is also a controlling owner in the other entity, or (iii) there is shared management or control between the business entities.

Factors that may be considered in determining the existence of an affiliated business entity relationship include that the same person or substantially the same person owns or manages the two entities, there are common or commingled funds or assets, the business entities share the use of the same offices or employees, or otherwise share activities, resources or personnel on a regular basis, or there is otherwise a close working relationship between the entities.

"Candidate" means a person who seeks or campaigns for an office of the Commonwealth or one of its governmental units in a general, primary, or special election and who is qualified to have his name placed on the ballot for the office.

"Contract" means any agreement to which a governmental agency is a party, or any agreement on behalf of a governmental agency that involves the payment of money appropriated by the General Assembly or a political subdivision, whether or not such agreement is executed in the name of the contractCommonwealth, of which it is a part is with the officer's or employee'ssome ownpolitical governmentalsubdivision agency.thereof.

"Contract" includes a subcontract only when the "Council"contract meansof thewhich Virginiait Conflictis ofa Interestpart andis Ethicswith Advisorythe Councilofficer's establishedor inemployee's §own 30-355.governmental agency.

"Council" means the Virginia Conflict of Interest and Ethics Advisory Council established in § 30-355.

"Financial institution" means any bank, trust company, savings institution, industrial loan association, consumer finance company, credit union, broker-dealer as defined in subsection A of § 13.1-501, or investment company or advisor registered under the federal Investment Advisors Act or Investment Com"Gift"Company meansAct anyof gratuity,1940. favor, discount, entertainment, hospitality, loan, forbearance, or other item having monetary value.

"Gift" means any gratuity, favor, discount, entertainment, hospitality, loan, forbearance, or other item having monetary value.

(iii) any athletic, merit, or need-based scholarship or any other financial aid awarded by a public or private school, institution of higher education, or other educational program pursuant to such school, institution, or program's financial aid standards and reportedprocedures pursuantapplicable to Chapterthe 9.3general (§public; 24.2-945 et seq.) of Title 24.2;

(v)(iv) anya giftcampaign relatedcontribution toproperly thereceived privateand professionreported orpursuant occupationto orChapter volunteer9.3 service(§ of24.2-945 anet officerseq.) or employee or of aTitle member24.2; of his of 3 immediate family;

(v) any gift related to the private profession or occupation or volunteer service of an officer or employee or of a member of his immediate family;

(vii) food and beverages received at or of 3 registration or attendance fees waived for any event at which the filer is a featured speaker, presenter, or lecturer;

"Personal interest in a contract" means a personal interest that an officer or employee has in a contract with a governmental agency, whether due to his being a party to the contract or due to a of 3 personal interest in a business that is a party to the contract.

"Personal interest in a transaction" means a personal interest of an officer or employee in Enyany matter considered by his agency.

Such personal interest exists when an officer or employee or a member of his immediate family has a personal interest in property or a business or governmental agency, or represents or provides services to any individual or business and such property, business or represented or served of 3 individual or business (i) is the subject of the transaction or (ii) may realize a reasonably foreseeable direct or indirect benefit or detriment as a result of the action of the agency considering theOtransaction.the transaction.

Notwithstanding the above, such personal interest in a transaction shall not be deemed to exist where (a) an elected member of a local governing body serves without remuneration as a member of the board of trustees of a not-for-profit entity and such elected member or member of his immediate family has no personal interest related to the not-for-profit entity or (b) an officer, employee, or elected member of a local governing body is appointed by such local governing body to serve on a governmental agencE,agency, or an officer, employee, or elected member of a separate local governmental agency formed by a local governing body is appointed to serve on a governmental agency, and the personal interest in theDthe transaction of the governmental agency is the result of the salary, other compensation, fringe benefits, or benefits provided by the local governing body or the separate governmental agency to the officer,nefits,officer, or employee, elected member, or member of his immediate family.

"State filer" means those officers and employees required to file a disclosure statement of their personal interests pursuant to subsection A or B of § 2.2-3114.

file a disclosure statement of Sheir "Transaction" means any matter considered by any governmental or advisory agency, whether in a committee, subcommittee, or other entity of that agency or before the agency itself, on which oEficialofficial action is taken or contemplated.