Legal Handbook for Council Members 2022

DATE: TO: FROM: SUBJECT:

August 11, 2022 Mayor and City Council Ch uck Watts , City Attorney Law Prohibiting the Receiving of Gifts and Favors

BACKGROUND In 1981 the General Assembly enacted a law which was later amended in 1987, 1993 and 1994, concerning bid rigging and the prohibition of gifts and favors. While the purpose of the lawwas to prohibit activities that would encourage bid rigging and favoritism with contractors, the law was passed with broad generalities applicable to all public officers, employees and elected officials as well as for any government contractor or potential government contractor. In essence, it is unlawful for a contractor, subcontractor or supplier to give and for any person in local or state government who is charged with the duty of preparing plans, specifications or estimates, or who is charged with awarding or administering public contracts or inspecting construction to receive or accept any gifts or favors. The law does not define "gift"; however, it does state that the receipt of honorariums for participating in meetings and receiving advertising items or souvenirs of nominal value and for eating meals furnished at banquets would not be a violation of the law. In addition, a customary gift between local officials and their friends and relatives, where it is clear that the personal relationship is the basis for the gift and it is not charged to business, would be permissible. However, all such gifts knowingly from friends and relatives made or received are required to be reported by the donor to the agency head if the gifts are made by a contractor, subcontractor or supplier. A contractor includes any person or company which provides construction or sells good or equipment as well as any person who has performed under such a contract within the past year or who anticipates bidding on such a contract in the future. See: N.C.G.S. §133-32. GENERAL PROHIBITIONS

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Reference : C ode of Ethics, Gift Policy, and Disclosure Requirements for the Mayor and City Council of the City of Greensboro, North Carolina City of Greensboro Personnel Policy Manuał, Gifts