Attorney General Opinions
Relating to County Government

2016 Purchasing

Under the general law conflict of interest statute, T.C.A. § 12-4-101, a county official is prohibited from having a direct interest in a contract with the county, but such an official may have an indirect interest if the interest is publicly disclosed. An indirect interest is defined to include instances where the county official is the sole supplier in the county. This “sole supplier” exception applies only when the county official is the sole supplier located in the county. An official who violates T.C.A. § 12-4-101 may not recover payment under the contract and is liable to pay back any compensation the official received under the contract. Good faith is no defense to the penalty provisions of T.C.A. § 12-4-102, nor is the fact that the county may have received valuable services under the contract, so an official who violates this statute may not be paid for goods or services on a quantum meruit basis. Op. Tenn. Att’y Gen. 16-19 (May 18, 2016).