CHAPTER 601

An Act to amend and reenact § 15-508, as amended, of the Code of Vir-
ginia, relating to interest of municipal officials in contracts with and
clams against the municipality.

[H 731]

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:

1. That § 15-508, as amended, of the Code of Virginia, be amended and
reenacted as follows:

§ 15-508. No member of the council, board of aldermen or member
of the school board, or any other officer, or agent, or any commissioner
appointed for the opening of streets, or any other member of a committee
constituted or appointed for the management, regulation or control of
corporate property of any city or town, or constable, policeman, commis-
sioner of the revenue, treasurer, attorney for the Commonwealth, clerk
of the court, civil or police justice, sheriff, sergeant, superintendent of
the poor or any other paid officer of any city or town, during the term
for which they are elected or appointed, shall be a contractor or subcon-
tractor, with the corporation, or its agents, or with such committee, nor
shall they be interested, directly or indirectly, in any contract, subcon-
tract, 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 subcontract; and no such councilman, officer or employee shall
be interested, directly or indirectly in any contract, subcontract, 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 con-
tact or subcontract; nor as agent for such contractor or subcontractor, or
other person furnishing any supplies or materials. Every such contract
or subcontract 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 thereby.

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 subcontract 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 such
city or town.

The term “contract” as used in this section 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
be a director or officer or have a stock interest; nor shall it include the
granting of franchises to or purchase of services from public service
corporations.

This section shall not prevent any officer or director of a bank which
has a contract with a city from serving as a member of the council of such
city, nor affect the validity of any such contract.

This section shall not apply to attorneys for the Comonwealth em-
ployed by the governing bodies of cities under the provisions of §§ 58-762,
58-1016 or 58-1102 to collect taxes which are a lien on real estate.

2. An emergency exists and this act is in force from its passage.