Prohibited Employment of Employee of Commission or Nonprofit Corporation; Penalties

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  1. For the purposes of this chapter, when a commission or nonprofit corporation administers a contract in which it procures goods or services or makes loans or otherwise directs the expenditure of funds, no employee who is compensated for his or her services by either the commission or nonprofit corporation or any member of a board or advisory committee of the commission or nonprofit corporation that plays a role in determining such contracts, loans, or procurement decisions shall also serve, during the period of any such contract, loan, or procurement decision, as a board member, officer, independent contractor, or paid employee of the entity contracting with, borrowing from, or otherwise receiving funds from the commission or nonprofit corporation.
  2. This Code section shall not preclude an employee of a commission from serving, without compensation, as an officer of a nonprofit corporation for the purposes of executing loan transactions; nor shall this Code section preclude a commission and any nonprofit corporation that it creates or controls from entering into a contract with the other for the provision of staff services. In addition, this Code section shall not preclude an employee of a private financial institution from serving on a loan review or other advisory committee of a nonprofit corporation even when such financial institution participates in a loan of the nonprofit corporation. Further, this Code section shall not preclude a board member of a commission from also serving as a member of a board or advisory committee of a nonprofit corporation created pursuant to paragraph (1) of subsection (f) of Code Section 50-8-35.
  3. Any person who knowingly violates this Code section shall be subject to the penalties provided for in Code Section 50-8-66.

(Code 1981, §50-8-61, enacted by Ga. L. 1992, p. 1271, § 2; Ga. L. 1993, p. 1374, § 6; Ga. L. 1998, p. 128, § 50; Ga. L. 2009, p. 8, § 50/SB 46.)

OPINIONS OF THE ATTORNEY GENERAL

Membership on board of contracting corporation.

- Regional Development Center (RDC) board member may not also serve as a board member of a non-profit corporation created by the RDC, pursuant to former O.C.G.A. § 50-8-35(g)(1), during the period that a contract exists between the two entities. 1993 Op. Att'y Gen. No. 93-1.


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