KRS 61.252: Prohibition against city officers and employees contracting with city or city

agency for property or services -- Exceptions -- Penalty.

(1) No officer or employee of any city or city agency shall directly or through others

undertake, execute, hold, or enjoy, in whole or in part, any contract made, entered

into, awarded, or granted by the officer's or employee's city or city agency, with the

following exceptions:

(a) The prohibition in this section shall not apply to contracts entered into before

an elec ted officer filed as a candidate for city office, before an appointed

officer was appointed to the office, or before an employee was hired by the

city or city agency; provided that if the contract is renewable, the prohibition

shall apply to any renewal of the contract that occurs after the officer is

elected or appointed, or after the employee is hired, unless the provisions of

paragraph (c) of this subsection are satisfied;

(b) The prohibition in this section shall not apply if the contract is awarded aft er

public notice and competitive bidding, unless the officer or employee is

authorized to participate in establishing the contract specifications, or

awarding, or managing the contract, in which case the provisions of paragraph

(c) of this subsection shall be satisfied;

(c) The prohibition in this section shall not apply if the following requirements

are met:

1. The specific nature of the contract transaction and the nature of the

officer's or employee's interest in the contract are publicly disclosed at a

meeting of the governing body of the city or city agency;

2. The disclosure is made a part of the official record of the governing

body of the city or city agency before the contract is executed;

3. A finding is made by the governing body of the city or ci ty agency that

the contract with the officer or employee is in the best interests of the

public and the city or city agency because of price, supply, or other

specific reasons; and

4. The finding is made a part of the official record of the governing body of

the city or city agency before the contract is executed.

(2) Violation of this section is a Class A misdemeanor, and upon conviction, the court

may void any contract entered into in violation of this section. Additionally,

violation of this section shall be grounds for removal from office or employment, in

accordance with applicable provisions of law.