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Ethics: Statutory Restrictions on Legislators Contracting with the State and Disclosure Requirements

This table is intended to provide general information and does not necessarily address all aspects of this topic. It is important to note that this table covers only statutory and constitutional restrictions on legislators contracting with the state and related disclosure requirements. Some states have House and/or Senate chamber rules that restrict the ability of legislators to contract with the state and the restrictions based in chamber rules are not covered by this table. Additionally, this table focuses on restrictions in the law specifically related to contracts. In many cases conflict of interest laws also apply to these situations, but this table does not fully address contracting restrictions based out of 'conflict of interest' provisions. The Center's research on conflict of interest laws can be found here. The table below reflects, in summary form, statutes in effect as of 12/31/07 or statutes set to take effect shortly thereafter. Updated August 2008.

AL | AK | AZ | AR | CA | CO | CT | DE | FL | GA | HI | ID | IL | IN | IA | KS | KY | LA | ME | MD | MA | MI | MN | MS | MO | MT | NE | NV | NH | NJ | NM | NY | NC | ND | OH | OK | OR | PA | RI | SC | SD | TN | TX | UT | VT | VA | WA | WV | WI | WY

State

Restrictions

Disclosure Requirements

Alabama
§ 36-25-11
§ 36-25-13
§ 36-25-16

Legislators, household members and associated businesses cannot enter into contracts with the state, its city or counties unless awarded by sealed, competitive bidding.

If contract is worth more than $7,500, the contractor must disclose the names of any adult child, parent, spouse, brother, or sister who is a public official or public employee of the agency or department with whom the contract is made. On financial disclosure forms, legislators must detail rent and lease income from the state.

Alaska
§ 24.60.040
§ 24.60.115

Legislators cannot enter into state contracts valued at more than $5,000 unless awarded by sealed, competitive bidding. 

State contracts allowed without competitive bidding if developed under publicly established guidelines, or if generally available to the public or members of the legislator's occupation.

Legislators must list contracts and offers to contract with the state held, bid or offered by the legislator, a reportable member of his family or a corporation in which any of the above hold a controlling interest on their financial disclosure forms.

The Select Committee on Legislative Ethics must forward all disclosures to the appropriate house for inclusion in the journal.

Arizona
§ 38-503



Legislators cannot enter into contracts with the state valued at over $1000 unless awarded by sealed, competitive bidding or the contract is entered into by a business of which the member, his spouse or any minor child of whom the member has custody, owns or controls, individually or combined, less than ten percent thereof.

Disclose if legislator or relative has substantial interest in contract. Legislator cannot vote or participate in related matters.

Arkansas
AK
Code Ann.
§ 21-8-901
§ 19-11-264

No specific statutory restrictions found.

Senate Rule 24.06 prohibits Senators from having a financial interest in any contract with any State agency unless it is awarded through a process of public notice and competitive bidding, or through a public notice requesting proposals, or has received the prior approval of the Legislative Council. Contracts entered into prior to a Senator’s election are not subject to this rule. Extension of any such contracts are subject to the provisions of this rule.

All contracts with a member of the General Assembly, his or her spouse, or with any business in which such person or his or her spouse is an officer, a director, or a stockholder owning more than ten percent (10%) of the stock in the business shall be presented to the Legislative Council or to the Joint Budget Committee, if the General Assembly is in session, before the execution date of the contract.

On financial disclosure forms, if legislator, spouse, or a business in which legislator holds more than a 10 percent interest, sells more than $1,000 of goods to the legislature, the goods and the price must be disclosed.

 

California
Government Code § 1090
§ 1091

Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity.

The willful failure of an officer to disclose the fact of his or her interest in a contract pursuant to this section is punishable by a fine of not more than one thousand dollars ($1,000), or by imprisonment in the state prison, and is forever disqualified from holding any office in this state.

Public officials who have a financial interest in a decision at hand must publicly identify the nature of the interest, recuse themselves from voting and leave the room until discussion on the matter ceases.

Colorado
§ 24-18-201

Legislators cannot be interested in contracts made in their official capacity, or by the legislature as a whole, unless awarded by sealed, competitive bidding, or if the interest in the contract is disclosed.

Contracts with legislature are allowed if the personal interest is disclosed and the legislator does not vote on related matters.

Connecticut
Title 1
Chapter 10
§ 1-83(b)(1)(G)
§ 1-84 (i)

Legislators, members of their immediate family and associated businesses cannot enter into contracts with the state worth more than $100 unless awarded by sealed, competitive bidding.

Public disclosure of all proposals considered is part of the competitive bid process. Also, on financial disclosure forms, legislators must name any leases or contracts with the state held or entered into by the legislator or a business with which he or she was associated.

Delaware

No specific contracting restrictions, but conflict of interest code for legislators, beginning with Title 29, Chapter 10, Section 1002, sets forth how legislators should deal with conflicts between themselves and measures before the legislature.

No specific contract disclosure requirements found, but Title 29, Chapter 10, Section 1002 says legislators must disclose conflicts between their personal interests and measures before the legislature.

Florida
Title X
Chapter 112.313

Legislators cannot directly or indirectly buy, rent or lease goods or services for the legislature from a company in which they, their spouse or children have a material interest. District offices are exempt if they are in legislators' place of business or owned property.

No specific contract disclosure requirements found but Florida's Voting Conflicts code, section 112.3143, says legislators must disclose conflicts between their personal interests and measures before the legislature.

Georgia
§ 45-10-24
§ 45-10-25
§ 21-5-50

Legislators, family members and associated businesses cannot enter into contracts with state agencies worth more than $250/transaction or 9,000/year unless awarded by sealed, competitive bidding. Leases of real property transactions allowed if approved by the state properties commission.

On financial disclosure forms, legislators must list the sources of any payments from the state for more than $20,000, and a general description of services.

On financial disclosure forms, legislators must list each transaction or transactions which aggregate $9,000 or more in a calendar year that the legislator or their business transacted with the state, or any political subdivision thereof.

Hawaii
§ 84-15

Legislators and businesses in which they have controlling interest cannot enter into contracts worth more than $10,000 with state agencies unless they are awarded based on sealed, competitive bidding or if the agency posts notice of its intent to award the contract and files a copy with state ethics commission at least 10 days before the contract is awarded.

If contracts worth more than $10,000 are not awarded based on sealed competitive bidding, the agency can post notice of intent to award a contact to a legislator and file a copy of the contract with the state ethics commission. No reporting requirements on the part of legislators found.

Idaho
§ 59-201
§ 59-201A

Legislators cannot be interested in contracts made by the legislature, nor can they be interested in any made by themselves in their official capacity. Public officials are not considered to have interests if those interests are remote. Remote interests include: being a non-salaried officer of a non-profit; being a fixed-wage employee or agent of the contracting firm; being a landlord or tenant of the contracting party; holding a less than 1 percent share in the corporation. Despite remoteness, public officials cannot try to influence others to enter into the contract.

No specific contract disclosure requirements found, but legislators must disclose conflicts of interest under § 59-704.

Illinois

No specific contracting restrictions found, but 5 ILCS 420/3-201 says legislators should avoid accepting or retaining economic opportunities that present substantial threats to their independence of judgement.

No specific contract disclosure requirements found, but if a legislator choses to abstain from voting on a measure in which he or she has a personal financial interest, he or she must disclose that interest under 5 ILCS 420/3-202.

Indiana
§ 35-44-1-3

Legislators are prohibited by law from receiving any percentage or profit or money whatever on, or being interested directly or indirectly in public contracts passed upon and entered into under their jurisdiction and authority, unless contract is for less than $250.

 

Contracts must be disclosed in accordance with Indiana's conflict of interest law found at Ind. Code § 35-44-1-3.

The disclosure must be in writing, describe the contract or purchase to be made by the governmental entity, describe the pecuniary interest that the public servant has in the contract or purchase, and be affirmed under penalty of perjury. The disclosure must be submitted to the governmental entity and be accepted by the governmental entity in a public meeting of the governmental entity prior to final action on the contract or purchase and be filed within fifteen (15) days after final action on the contract or purchase with: (1) the state board of accounts; and (2) if the governmental entity is a governmental entity other than the state or a state supported college or university, the clerk of the circuit court in the county where the governmental entity takes final action on the contract or purchase.

Iowa
§ 68B.3

Legislators cannot enter into contracts with state agencies worth more than $2,000 unless awarded by sealed, competitive bidding. 

Legislators who sell goods or services to a political subdivision must disclose whether income has been received from commissions from the sales.

Kansas
§ 46-233
§ 46-239

Legislators cannot enter into contracts with the state if the contract was at all funded or authorized by a law passed during the legislator's term, unless awarded by sealed, competitive bidding. Former legislators who wish to contract with the state within one year of the expiration of their terms can do so if they disclose the details to the Secretary of State.

Contracts with state are also allowed if the price is fixed by law.

Former legislators must disclose details if they enter into contracts with state agencies within one year of their terms if those contracts were at all funded or authorized during their terms. Also, the contracting state agency must file a disclosure form with the Secretary of State.

Kentucky
KRS § 6.737
§ 6.741

Legislators cannot enter into contracts with state agencies worth more than $100 per transaction, unless awarded by competitive bidding. Legislators can enter into contracts without competitive bidding if they are available on similar terms to members of the legislator's profession.

Legislators, their spouses and any business in which the legislator or their spouse have more than a 5 percent interest cannot lease or sell real property to a state agency during the legislator's terms.

No specific contract disclosure requirements found, but legislators with personal interests in bills before the legislature must disclose their interests under § 6.761

Louisiana
RS § 42-1113

Legislators, immediate family members and entities in which legislators have a controlling interest cannot enter into contracts with the legislature. Legislators, spouses and legal entities in which any interest is held cannot enter into contracts with state agencies unless they are awarded under sealed, competitive bidding practices.

On financial disclosure forms, legislators must name any income from the state or a state subdivision worth more than $250 to themselves or business in which they own at least 10 percent.

Maine
1 Maine Revised Statutes § 1015
§ 1016-A
§ 1016-D

 

Legislators, immediate family members and associated organizations cannot contract with state agencies unless the contract is awarded by sealed, competitive bidding.

On financial disclosure forms, legislators must name each executive branch agency to which the legislator or his family member sold $1,000 or more in goods or services. Also, when legislators bid on state contracts, they must file a special statement with the ethics commission.

Maryland
State Government Code § 15-513

A member of the General Assembly may not receive earned income from an Executive unit; or a political subdivision of the State unless the income is as employment as a nonelected law enforcement officer or a fire or rescue squad worker; or is related to a transaction or relationship that existed prior to the first filing of a certificate of candidacy for election to the General Assembly.

On financial disclosure forms, legislators must give details of contractual relationships with state, state agencies or local governments, including the subject matter and payment received. Also, they must give details of any transaction with the state or a local government involving payment.

Massachusetts
Part IV
Title I, Chapter 268A, Section 7(ALM GL ch. 268A, § 7)

 

Legislators, immediate family members and associated businesses cannot contract with state agencies if legislator and immediate family members' interest in business amounts to more than 10 percent. Legislators can contract if their interest is less than 10 percent and the contract is awarded by sealed competitive bidding. Legislators cannot contract with the legislature.

Interests of legislators and their family members in business contracting with the state must be disclosed to the state ethics commission.

Michigan
§ 15:302

Legislators cannot be interested in contracts with the state or its political subdivisions if the contract would cause a substantial conflict of interest.

No specific contract disclosure requirements found.

Minnesota
Minn. Stat. § 471.87

 

A legislator who is authorized to take part in any manner in making any sale, lease, or contract in official capacity shall not voluntarily have a personal financial interest in that sale, lease, or contract or personally benefit financially therefrom. There are limited exceptions mostly pertaining to small municipalities contained in § 471.88.

No specific contract disclosure requirements found, but conflicts of interest must be disclosed under § 10A.07.

Mississippi
Constitution, Sec. 109
Miss. Code Ann. § 25-4-105

 

Legislators and associated businesses cannot contract with the legislature unless the goods or services are only available from two or fewer sources, or the contract involves research into intellectual property created by the public servant. In either case, the transactions must follow public purchase laws. Legislators cannot contract with the state, its districts, counties, cities and towns if the authorization for the contract was made during his term or within one year after, unless the contract is awarded under competitive bidding.

On financial disclosure forms, legislators must name all public bodies from which they received more than $1,000 compensation.

Missouri
§ 105.456.1

Legislators and businesses in which they own 10 percent or more interest cannot enter into contracts worth more than $500 per transaction or more than $1,500 per year with the state, its political subdivisions or agencies unless the contract is awarded by sealed competitive bidding. 

No specific contract disclosure requirements found, but conflicts between personal interests and matters before the legislature must be disclosed under Section 105-461.

Montana
§ 2-2-106
§ 2-2-201

Legislators cannot be interested in any contracts made by them in their official capacity during their term. For six months after term, legislators cannot contract or be employed by an employer who contracts with the state or its subdivisions on matters in which the former legislator was directly involved.

No specific contract disclosure requirements found, but conflicts between legislators' personal interests and matters before the legislature must be disclosed under § 2-2-112.

Nebraska
§ 49-14,102
§ 49-1496

Legislators, immediate family members and associated businesses cannot enter into contracts worth more than $2,000 per year with governmental bodies unless awarded by sealed, competitive bidding. No contract may be divided to evade this code section. This section does not apply when the legislator does not represent either party.

Public inspection of all proposals considered is part of bidding process. Also, on financial disclosure forms, legislators must disclose the type of services rendered for all income greater than $1,000 from a government or political subdivision. Legislators are also required to disclose conflicts between their personal interests and matters before the legislature under § 49-1499.

Nevada
§ 281A.430
 

 

Legislators and private businesses in which they have significant pecuniary interests cannot enter into contracts with governmental bodies unless: awarded through sealed, competitive bidding; the source supply is limited; the legislator had no part in developing contractual plans; and the legislator will not be involved in considering contract offers.

If the legislator is a member of the governing body that will be awarding the contract, he must disclose his interest and recuse himself.

New Hampshire

No specific restrictions found.

New Hampshire has unique financial disclosure requirements.

New Jersey
§ 52:13D-19

Legislators, their business partners and corporations in which the legislator owns or controls more than 1 percent of the stock, and anyone acting for the benefit of the legislator, cannot enter into contracts worth more than $25 with state agencies unless awarded by sealed, competitive bidding. If the law says this contract may be awarded without competitive bidding, the legislator may not take part. Other exceptions apply.

No specific contract disclosure requirements found.

New Mexico
10-16-9

Constitution Article 4, Section 28

Under statute, legislators and businesses in which they have substantial financial interests cannot contract with state agencies unless contracts are awarded by sealed, competitive bidding.

Under the state constitution, legislators cannot contract with the state or any municipalities within it relating to matters that are the result of laws passed during their term and for one year after.

On financial disclosure forms, legislators must name state agencies to which filer or spouse sold more than $5,000 worth of goods or services. Legislator must disclose his substantial interest in companies doing business with the state.

New York
Consolidated Laws
NY CLS Pub O § 73 NY CLS Pub O § 73-a
 

Legislators cannot enter into agreements for compensation for services rendered in relation to any matter before a state agency where compensation is contingent upon state agency action, including the awarding of a contract. However, legislators are allowed to receive fees from state agencies if the fees are based on the reasonable value of services rendered. Legislators cannot sell goods or services worth more than $25 to state agencies. Legislators cannot contract for or provide goods or services to a business if that business's power to contract is exercised by a state agency, unless the contracts are awarded by competitive, public bidding.

On financial disclosure forms, if a legislator, family member or associated business holds more than a $1,000 interest in a state or state subdivision contract, he or she must list the name of entity holding the interest, the value, the relationship the interest-holder has to the filer and the nature of interest in contract.

North Carolina

No specific restrictions found.

On financial disclosure forms, legislators must give the identity of associated businesses that do business with the state and brief descriptions of their business nature.

North Dakota

No specific restrictions found.

No specific contract disclosure requirements found.

Ohio
§ 102.04

Legislators cannot enter into contracts with the legislature and executive branch entities unless the contract awarded is under sealed competitive bidding.

On financial disclosure forms, legislators must give the identity and amount of income received from a source that is doing or seeking to do business with the legislature.

Oklahoma
Constitution, § V-23

Legislators cannot be interested during their term, or for two years after, in contracts with the state, its counties or subdivisions if the law calling for the contract was passed during their term.

On financial disclosure forms, legislators must give the name and address of all government sources of income paying more than $5,000.

Oregon
§ 244.060,
§ 244.070

No specific restrictions found.

On financial disclosure forms, legislators must give information about the five most significant sources of income during the preceeding year for each member of the household of the legislator, and the legislator must say whether the source does business or could reasonably be expected to do business with the legislature. Also, conflicts of interest must be disclosed under § 244.120.

Pennsylvania
65 Pa.CSA. § 1103 (f)

Legislators, their spouses, children and associated businesses cannot enter into contracts worth more than $500 with the legislature unless awarded through sealed competitive bidding. Bidding public official cannot have oversight of administration of contract.

Public disclosure of all proposals considered and contracts awarded is part of the bidding process. Also, on financial disclosure forms, legislators must give details of any direct or indirect interest in real estate sold or leased to or purchased or leased from the state or a state subdivision.

Rhode Island
§ 36-14-5

Legislators, family members, business associates and entities in which the legislator, his family members or business associates have a 10 percent or $5,000 interest, cannot enter into contracts with state or municipal agencies unless contract awarded through an open and public process. Contracts that have not traditionally been awarded through competitive bidding do not have to be subject to competitive bidding.

Open and public process involves full disclosure by the state or municipal agency of all proposals considered and contracts awarded. Contracts not awarded through competitive bidding must be subject to public notice and disclosure of financial details.

South Carolina
§ 8-13-745

Legislators and their business and business partners who have more than 5 percent interest in a business cannot contract with state entities if the legislator has voted on the section the budget relating to that entity within the past year. This section does not prohibit legislators from voting on other sections of the budget or on the budget as a whole.

On financial disclosure forms, legislators must give the amounts of income worth more than $500 from government entities.

South Dakota
§ 3-16-7

SD Constitution, Article III, Section 12

Legislators cannot be interested during their term, or for one year after, in contracts with the state or its subdivisions if the law calling for the contract was passed during their term. Nor can legislators be interested in contracts they are authorized to enter into in their official capacity.

No specific contract disclosure requirements found.

Tennessee

No specific restrictions found.

No specific contract disclosure requirements found.

Texas
Tex. Gov't Code § 572.057
Tex. Gov't Code  § 572.056

Legislators and business entities in which they have a substantial interest cannot lease office space or other real property to the state, a state agency, the legislature or a legislative agency, the Supreme Court of Texas, the Court of Criminal Appeals or a state judiciary agency. Also, legislators cannot accept a payment for compensation for their personal solicitation for the award of a contract to a governmental entity unless the contract is awarded through sealed competitive bidding. 

No specific contract disclosure requirements found.

Utah
§ 36-19-1

Legislators, their household members and their clients cannot be interested in contracts that are the direct result of a bill sponsored by the legislator unless the contract is awarded in compliance with state procurement policies and is open to the general public.

No specific contract disclosure requirements found, but under Joint Rules 16.05A, legislators must disclose conflicts of interest.

Vermont No specific restrictions found. No specific contract disclosure requirements found.

Virginia
§ 30-105

Legislators cannot enter into contracts with the legislative branch. Legislators cannot enter into contracts with executive, judicial or local agencies unless they are awarded through sealed competitive bidding. Contracts can be awarded to legislators without competitive bidding if it is determined that competitive bidding is not in the best interest of the public. These provisions do not apply to contracts for sale of goods at uniform prices available to general public.

On financial disclosure forms, legislators must give details about real estate contracts with the state. They must give their location; the agency involved; the amount of income received and their relationship to the contract.

Washington
RCW § 42.52.030

Legislators cannot have an interest in a contract that is made by or through themselves, or over which they will have supervision. 

On financial disclosure forms, legislators must list the name and address of governmental entities corporations, partnerships, etc., that paid more than $500 in income. Legislators must include the amount paid and the services rendered.

West Virginia
§ 6B-2-5

Legislators, their family members and associated businesses cannot have an interest in a contract that the legislator has direct authority to enter into or control. Contracts are allowed if: the interest does not exceed one thousand dollars in the profits or benefits of the public contract or contracts in a calendar year; an interest as a creditor of a public employee or official who exercises control over the contract, or a member of his or her immediate family, if the amount is less than five thousand dollars. Also, written permission may be requested from ethics commission if otherwise would result in undue hardship.

Legislators may contract with governmental bodies if they have recused themselves from voting on related matters and disclosed their interest.

Wisconsin
§ 19.45 (6)

Legislators, their immediate family members and organizations in which the legislator or family member has 10 percent or more outstanding equity, voting rights or indebtedness cannot enter into contracts or leases worth more than $3,000 in a year involving state funds unless the legislator has properly disclosed related information.

Proper disclosure involves a written statement on the nature and extent of the relationship or interest in the contract.

Wyoming

No specific contracting restrictions found, but under § 9-13-106, legislators cannot vote on measures in which they have private interests.

No specific contract disclosure requirements found.

The information contained on this site should not be construed as legal advice to be applied to any specific factual situation. The Center for Ethics in Government does not provide any legal advice. Users of this Web site should consult with their own lawyer for legal advice.

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