(a) No public official shall knowingly do any of the following:
(1) During his or her term of office or within one year thereafter, occupy any position of profit in the prosecution of a public contract authorized by him or her or by a legislative body, commission or board of which he or she was a member at the time of authorization, unless the contract was let by competitive bidding to the lowest and best bidder;
(2) Have an interest in the profits or benefits of a public contract entered into by or for the use of the Municipality or governmental agency or instrumentality with which he or she is connected;
(3) Have an interest in the profits or benefits of a public contract that is not let by competitive bidding if required by law and that involves more than one hundred fifty dollars ($150.00).
(b) In the absence of bribery or a purpose to defraud, a public official, member of his or her family or any of his or her business associates shall not be considered as having an interest in a public contract or the investment of public funds if all of the following apply:
(1) The interest of that person is limited to owning or controlling shares of the corporation, or being a creditor of the corporation or other organization that is the contractor on the public contract involved, or that is the issuer of the security in which public funds are invested;
(2) The shares owned or controlled by that person do not exceed five percent of the outstanding shares of the corporation, and the amount due that person as creditor does not exceed five percent of the total indebtedness of the corporation or other organization;
(3) That person, prior to the time the public contract is entered into, files with the Municipality an affidavit giving his or her exact status in connection with the corporation or other organization.
(c) This section does not apply to a public contract in which a public official, a member of his or her family or one of his or her business associates has an interest, when all of the following apply:
(1) The subject of the public contract is necessary supplies or services for the Municipality;
(2) The supplies or services are unobtainable elsewhere for the same or lower cost, or are being furnished to the Municipality as part of a continuing course of dealing established prior to the public official's becoming associated with the Municipality;
(3) The treatment accorded the Municipality is either preferential to or the same as that accorded other customers or clients in similar transactions;
(4) The entire transaction is conducted at arm's length, with full knowledge by the Municipality of the interest of the public official, member of his or her family or business associate, and the public official takes no part in the deliberations or decision of the Municipality with respect to the public contract.
(d) Paragraph (a)(2) hereof does not prohibit participation by a public employee in any housing program funded by public moneys if the public employee otherwise qualifies for the program and does not use the authority or influence of his or her office or employment to secure benefits from the program and if the moneys are to be used on the primary residence of the public employee. Such participation does not constitute an unlawful interest in a public contract in violation of this section.
(e) It is not a violation of this section for the chief legal officer or an official designated as the prosecutor in the Municipality to appoint assistants and employees in accordance with Ohio R.C. 733.621 and 2921.421.
(f) As used in this section:
(1) “Public contract” means any of the following:
A. The purchase or acquisition, or a contract for the purchase or acquisition, of property or services by or for the use of the Municipality or any agency or instrumentality of the Municipality, including the employment of an individual by the Municipality or any agency or instrumentality of the Municipality;
B. A contract for the design, construction, alteration, repair or maintenance of any public property.
(2) “Chief legal officer” has the same meaning as in Ohio R.C. 733.621.
(g) Whoever violates this section is guilty of having an unlawful interest in a public contract, a misdemeanor of the first degree, and shall be subject to the penalty provided in Section 698.02. (ORC 2921.42)