Chap. 232.——An ACT to amend and re-enact section 2708 of the Code of Vir-
ginia prohibiting city and town officers from being interested in contracts
with their city or town. [S B 186]

Approved March 23, 1936

1. Be it enacted by the General Assembly of Virginia, That section
twenty-seven hundred and eight of the Code of Virginia be amended
and re-enacted so as to read as follows:

Section 2708. Councilmen and other city or town officials forbidden
to have interest in contract with, or claim against, a city or town; such
contract to be void.

It shall not be lawful for any member of the council or board of
aldermen, or any other officer, or agent, or any commissioner appointed
for the opening of streets, or any other member of a committee con-
stituted or appointed for the management, regulation or control of
corporate property of any city or town, during the term for which they
are elected or appointed, to be a contractor or sub-contractor, with the
said corporation, or its agents, or with such committee, nor shall they
be interested, directly or indirectly, in any contract, sub-contract, or
job of work, or materials, or the profits or contract price thereof, or
any services to be performed for the city or town, for pay under any
contract or sub-contract; and no such councilman, officer or employee
shall be interested, directly or indirectly in any contract, sub-contract,
or job of work, or materials or the profits or the contract price thereof,
or services to be furnished or performed for the city or town for pay
under any contract or sub-contract; nor as agent for such contractor
or sub-contractor, or other person furnishing any supplies or materials.
Every such contract or sub-contract shall be void, and the officer,
councilman, agent, or member of such committee making such contract
shall forfeit to the Commonwealth the full amount stipulated for there-
by. No officer of a city or town, who alone or with others is charged
with the duty of auditing, settling or providing, by levy or otherwise,
for the payment of claims against such city or town, shall, by contract,
directly or indirectly, become the owner of or interested in any claim
against such city or town. Every such contract or sub-contract shall
be void, and if any such claim be paid, the amount paid, with interest,
may be recovered back by the city or town, within two years after
payment, by action or motion in the circuit or corporation court having
jurisdiction over said city or town.

The term “contract” as herein used, shall not be held to include the
depositing of city or town funds in, or the borrowing of funds from,
local banks in which councilmen or other officer of the city or town
may have a stock interest ; nor shall it include the granting of franchises
to or purchase of services from public service corporations.