§ 7-5-2311 — County Contracts -- Conflict Of Interest

7-5-2311 . County contracts -- conflict of interest. (1) (a) Except as provided in Title 18, chapter 2, part 5, regarding use of an alternative project delivery contract, the governing body of a county or consolidated city-county government may not award a construction contract to a contractor if the entity has a financial interest, directly or indirectly, with a person, employee, contractor, subcontractor, or entity that has participated in the design or engineering of the project as a consultant or otherwise, or that represents the owner in the oversight or management of the contracted project, without disclosure of the conflict.
(b) A contractor who fails to disclose a conflict with the submission of a bid must be determined to be nonresponsive to the bid. The governing body shall, at the time of bid opening, announce the disclosure of any conflicts for all bidders. Subsequent to bid opening and prior to formal award, the governing body shall, in a public meeting, receive public comment on disclosed conflicts. The governing body may determine and stipulate appropriate remedies, if any, in the formal award of the contract.
(2) For the purpose of this section, "financial interest" means ownership of a legal or equitable interest of 24% or more or a relationship as director, advisor, or other active participant in the affairs of a party, except that:
(a) ownership in a mutual or common investment fund that holds securities is not a financial interest in the securities unless the entity participates in the management of the fund;
(b) an office in an educational, religious, charitable, fraternal, or civic organization is not a financial interest in securities held by the entity;
(c) the proprietary interest of a policyholder in a mutual insurance company or a depositor in a mutual savings association or a similar proprietary interest is a financial interest in the organization only if the entity could substantially affect the value of the interest; and
(d) ownership of government securities is a financial interest in the issuer only if the contractor could substantially affect the value of the securities.

Legislative History

En. Sec. 1, Ch. 710, L. 2025.