Exceptions to Prohibitions on Transactions With State Agencies

  1. Law
  2. Georgia Code
  3. Public Officers and Employees
  4. Codes of Ethics and Conflicts of Interest
  5. Conflicts of Interest
  6. General Provisions
  7. Exceptions to Prohibitions on Transactions With State Agencies

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  1. The provisions of Code Sections 45-10-22, 45-10-23, and 45-10-24 shall not apply to:
    1. Any transaction involving the sale of real property to the state or any agency through eminent domain;
    2. Any transaction involving the purchase by the public official or employee of any health or life insurance, disability benefits, or retirement or pension benefits offered as a part of a public official's or employee's service or employment;
    3. Any transaction between a public official or employee or any business in which such public official or employee or any member of his family has a substantial interest and any person, the cost of which transaction is paid directly or indirectly by state funds, if the property or services involved in the transaction are for the private use and benefit of the person to whom such property or services are sold or rendered and such person does not subsequently sell or lease such property or services to an agency;
    4. Any transaction between a public official or employee or any business in which such public official or employee or any member of his family has a substantial interest and the state or any agency thereof under which it is agreed that the public official or employee or any business in which such public official or employee or any member of his family has a substantial interest is to provide Medicaid and related services and benefits or medicare and related services and benefits, or both, and under which it is agreed that the state or any agency thereof is to reimburse or pay for the services and benefits so provided;
    5. Any transaction between a public official or employee or any business in which such public official or employee or any member of his family has a substantial interest and the state or any agency thereof under which the public official or employee or any business in which such public official or employee or any member of his family has a substantial interest directly or indirectly receives reimbursement or payment from the state or any agency thereof for providing Medicaid and related services and benefits or medicare and related services and benefits, or both, and under which the state or any agency thereof reimburses or pays the public official or employee or any business in which such public official or employee or any member of his family has a substantial interest for providing Medicaid and related services and benefits or medicare and related services and benefits, or both;
    6. Any transaction between a public official or employee or any business in which such public official or employee or any member of his family has a substantial interest and any state contractor if there was no agreement prior to the transaction that the public official or employee would assist, other than by providing goods or services as required under the terms of the agreement underlying the transaction, the contractor in obtaining, retaining, or fulfilling the state contract and if the public official or employee does not assist, other than by providing goods or services as required under the terms of the agreement underlying the transaction, the contractor in obtaining, retaining, or fulfilling the state contract;
    7. Any transaction involving part-time employment by the Georgia Building Authority or the Department of Natural Resources of custodial and cleaning workers or cooks who work for other agencies;
    8. Any transaction involving part-time employment by any agency of a chaplain; firefighter; any person holding a doctoral or master's degree from an accredited college or university; a licensed physician, dentist, or psychologist; a registered nurse or licensed practical nurse; or a certified oral or manual interpreter for deaf persons, if employed by the state, if:
      1. The chief executive officer of the department, agency, commission, or authority which desires to obtain the services of a chaplain; firefighter; any person holding a doctoral or master's degree from an accredited college or university; a licensed physician, dentist, or psychologist; a registered nurse or licensed practical nurse; or a certified oral or manual interpreter for deaf persons presently employed by another department, agency, commission, or authority of the state shall certify in writing the need for the services and set forth why the best interest of the state will be served by obtaining the part-time services of such a person in lieu of obtaining such services from a person not presently employed by the state;
      2. The chief executive officer of the department, agency, commission, or authority presently employing the chaplain; firefighter; any person holding a doctoral or master's degree from an accredited college or university; the licensed physician, dentist, or psychologist; the registered nurse or licensed practical nurse; or the certified oral or manual interpreter for deaf persons shall certify in writing that the person whose services are desired is available to perform such services, that the performance of such services will not detract or have a detrimental effect on the performance of said person's employment and, where appropriate, that the part-time employment of such person by the department, agency, commission, or authority desirous of obtaining the services will be in the best interest of the state; and
      3. The departments, agencies, commissions, or authorities, after having complied with subparagraphs (A) and (B) of this paragraph shall, by agreement, establish the procedures under which the employee shall perform the additional services. The agreement shall specify the means of employment either as a part-time employee or as a consultant, the compensation, and other pertinent details and conditions of the employment relationship. The agreement shall be terminable at any time by either of the departments, agencies, commissions, or authorities;
    9. Any transaction involving the Public Service Commission's employment of any state employee who has any particular expertise or knowledge which may be of assistance to the Georgia Public Service Commission in fulfilling its duties and responsibilities under Title 46. The terms and conditions of such employment shall be solely determined by the Georgia Public Service Commission; but, in any event, the employee may not provide services to the Georgia Public Service Commission during such times as he or she is regularly scheduled to be at his or her primary place of employment unless the employee has received permission to do so from his or her regular employer or unless the employee is on annual leave or leave without pay;
    10. Any transaction involving an emergency purchase by any agency which must be made to protect the health, safety, or welfare of the citizens or property of Georgia;
    11. Any transaction involving property or a service for which the only source of supply in the State of Georgia is from the public official or employee or a business in which such public official or employee or member of his family has a substantial interest;
    12. Any transaction occurring prior to March 1, 1983;
    13. Any transaction occurring prior to qualifying to run for elective office, accepting appointment to public office, or accepting public employment and any transaction occurring after qualifying to run for elective office, accepting appointment to public office, or accepting public employment if the legal obligation and duty to undertake such transaction arose prior to qualifying to run for elective office, accepting appointment to public office, or accepting public employment;
    14. Any transaction whereby a public official or employee or any business in which such public official or employee or any member of his family has a substantial interest collects a fee or commission as compensation for performing a service for the state when such performance is required or authorized by law, including but not limited to the collection of state sales tax, the collection of license fees, and the collection of excise taxes;
    15. Any transaction whereby an appointed public official or employee, under the procedures specified in this paragraph, sells to a unit of the University System of Georgia services as a teacher or instructor of an evening or night course or program, if:
      1. The chief executive officer of the unit of the University System of Georgia shall certify in writing the need for the services and set forth why the best interest of the state will be served by obtaining the services of such state official or employee in lieu of obtaining such services from a person not presently employed by the state;
      2. The chief executive officer of the department, agency, commission, or authority presently employing the state official or employee shall certify in writing that the person whose services are desired is available to perform such services, that the performance of such services will not detract or have a detrimental effect on the performance of said person's full-time employment, and, where appropriate, that the employment of such person by the unit of the University System of Georgia will be in the best interest of the state; and
      3. The departments, agencies, commissions, authorities, and units, after having complied with subparagraphs (A) and (B) of this paragraph, shall, by agreement, establish the procedures under which the official or employee shall perform the additional services. The agreement shall specify the means of employment, the compensation, and other pertinent details and conditions of the employment relationship. The agreement shall be terminable at any time by any of the departments, agencies, commissions, authorities, or units; or
    16. Any transaction involving the lease for the purpose of small business and economic development of laboratory and research facilities owned by the Board of Regents of the University System of Georgia during times when the laboratory and research facilities are not in use.
  2. Authority is given for a public official or employee or any business in which such public official or employee or any member of his family has a substantial interest and the state or any agency thereof to engage in any transaction exempted from the coverage of this part by subsection (a) of this Code section and subsection (b) of Code Section 45-10-24 and any transaction necessary and proper to such transaction.

(Code 1981, §45-10-25, enacted by Ga. L. 1983, p. 1326, § 1; Ga. L. 1984, p. 22, § 45; Ga. L. 1984, p. 1204, § 1; Ga. L. 1985, p. 149, § 45; Ga. L. 1985, p. 1034, § 1; Ga. L. 1986, p. 10, § 45; Ga. L. 1987, p. 848, § 1; Ga. L. 1994, p. 308, § 1; Ga. L. 1995, p. 167, § 2; Ga. L. 2002, p. 660, § 4(24); Ga. L. 2002, p. 1259, § 11(24); Ga. L. 2015, p. 1088, § 34/SB 148; Ga. L. 2016, p. 846, § 45/HB 737.)

The 2015 amendment, effective July 1, 2015, deleted "or the consumers' utility counsel division of the office of the administrator created in Code Section 10-1-395" following "assistance to the Georgia Public Service Commission" in paragraph (a)(9).

The 2016 amendment, effective May 3, 2016, part of an Act to revise, modernize, and correct the Code, revised punctuation in subparagraph (a)(8)(A).

Cross references.

- Creation of authorities for financing residential care facilities for the elderly, § 31-7-110 et seq.

Law reviews.

- For article, "Conflicts of Interests of Public Officers and Employees," see 13 Ga. St. B.J. 64 (1976).

JUDICIAL DECISIONS

Medicaid reimbursement.

- Nursing homes or pharmacies owned by members of the General Assembly or their spouses may, consistent with the Code of Ethics for Government Service and the State Constitution, receive Medicaid reimbursements from the state. Georgia Dep't of Medical Assistance v. Allgood, 253 Ga. 370, 320 S.E.2d 155 (1984) (decided prior to 1984 amendment).

A pharmacy selling medicine to a Medicaid recipient is not selling personal property to Department of Medical Assistance (now Department of Community Health) and hence is not "transacting any business" with the department. Georgia Dep't of Medical Assistance v. Allgood, 253 Ga. 370, 320 S.E.2d 155 (1984) (decided prior to 1984 amendment).

OPINIONS OF THE ATTORNEY GENERAL

Necessity to avoid appearance of impropriety.

- Even though O.C.G.A. § 45-10-25 potentially could authorize an attorney member of the State Ethics Commission to transact business with the commission, Ga. Const. 1983, Art. I, Sec. II, Para. I, and O.C.G.A. § 45-10-3 counsel against such a transaction as it could give rise to an appearance of impropriety if not an actual conflict of interest. 2002 Op. Att'y Gen. No. 2002-4.

O.C.G.A. § 45-10-25 must be construed in tandem with O.C.G.A. § 21-5-50(b)(5), and because salary, expense reimbursements, and per diem payments are not payments which are authorized and exempted from disclosure under O.C.G.A. § 45-10-25, O.C.G.A. § 21-5-50(b)(5) does not require that these payments be included on the financial disclosure statement filed pursuant to O.C.G.A. § 21-5-50(a). 1989 Op. Att'y Gen. No. 89-23.

University institution cannot contract for another agency's employee.

- A member institution of the University System of Georgia may not contract for the services of an employee of an agency in another branch of state government. 1993 Op. Att'y Gen. No. 93-24.

RESEARCH REFERENCES

Am. Jur. 2d.

- 63C Am. Jur. 2d, Public Officers and Employees, § 252 et seq.

C.J.S.

- 67 C.J.S., Officers and Public Employees, §§ 102, 103, 347, 348.

ALR.

- Right to jury trial in proceeding for removal of public officer, 3 A.L.R. 232; 8 A.L.R. 1476.

Removal of public officers for misconduct during previous term, 42 A.L.R.3d 691.


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