 |  Conflict of Interests Act
Waiver provisions applicable to Higher Education
The Conflicts of Interests Act, §2.2-3100, et seq. of the Code of Virginia, generally prohibits contracts between employees and their agencies, i.e., between faculty members and the University, where the employee has a personal interest in a contract. Personal interest of the employee, to include their immediate family members, means having a three percent or greater equity interest in a business or the reasonable anticipation of $10,000 annual income or other compensation and benefits. Also, any conduct indicating undue influence of or by an employee in the performance of duties is prohibited regardless of the percentage of interest or amount of income.
The General Assembly has recognized that the scholarly pursuits of University employees both enhances the economic well being of the Commonwealth and provides tangible benefits to the good people of Virginia. Accordingly there are several exceptions to prohibited conflicts – in addition to those relevant for all public employees - specifically applicable to institutions of higher education.
There is only one exception that is self-executing:
- Textbooks. No conflict with publisher or wholesaler of textbooks or other educational materials for students where the employee is the author or otherwise created the textbook or materials. (Note: Guidelines concerning the cost and availability of faculty textbooks are addressed in §23-4.3:1.C.). §2.2-3106.C.5.
There are five exceptions that require findings, disclosures and/or approvals:
- Dual employment. No conflict exists on the dual employment of an immediate family member where 1) the employee and family member are engaged in teaching, research or administrative support positions and 2) the governing board finds that dual employment is in the best interests of the Commonwealth and 3) after such finding, ensures that employee does not have sole authority to supervise, evaluate, or make personnel decisions regarding the family member. §2.2-3106.C.2.
- Acquisition of scholarly works. No conflict exists in the acquisition of employee’s collections or scholarly works, including manuscripts, musical scores, poetry, paintings, books, writings or papers where 1) the president of the institution approves the acquisition 2) as being in the best interests of the institution’s public mission of service, research, or education. §2.2-3106.C.6.
- Research and development. Subject to approval of the board of visitors, no conflict exists with employee’s business in contract for research and development or commercialization of intellectual property where 1) the personal interest has been disclosed and approved by the institution prior to entering into a contract and 2) the employee promptly and annually files a statement of economic interests pursuant to §2.2-3117 and 3) the institution has a formal policy regarding such contracts and 4) the institution annually discloses such contracts to the Secretary of the Commonwealth. §2.2-3106.C.8.
- Medical goods. Subject to approval of the board of visitors, no conflict exists with contracts for medical education or research related to goods and services, including the acquisition of drugs, therapies, and medical technologies where 1) the personal interest has been disclosed prior to entering into a contract and 2) the employee promptly and annually files a statement of economic interests pursuant to §2.2-3117 and 3) the employee does not participate in the institution’s decision to contract and 4) the president of the institution finds and certifies in writing that such goods and services are needed for quality patient care and necessary for fulfillment of the institution’s mission and 5) the institution annually discloses such contracts to the secretary of the Commonwealth. (Note: This section is clearly directed at providing goods and services to medical schools, but potentially touches research activities of this University) §2.2-3106.C.9.
- General contracts. No conflict exists where personal interest of employee is an equity interest in excess of three percent provided that 1) the employee’s interest is disclosed to the president and 2) the employee certifies that they have not and will not participate in contract negotiations and 3) the president of the institution makes a written finding that the contract is in the best interests of the institution and 4) the employee does not have the authority to procure or let the contract or disqualifies themselves as a matter of public record and 5) the employee does not participate on behalf of the institution in negotiating or approving the contract. (Note: The primary impact of this section is in conflicts arising from the equity interests of immediate family members) §2.2-3110A.5.
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