# Tenn. Code Ann. § 12-4-101: Personal interest of officers prohibited > Tennessee · Statutes · In force URL: https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-101 ## Section - **Citation:** Tenn. Code Ann. § 12-4-101 - **Heading:** Personal interest of officers prohibited - **Jurisdiction:** Tennessee - **Kind:** Statutes - **Status:** In force - **Text as of:** August 14, 2026 - **Source:** Compiled text - **Location:** TN Code / Title 12 / Chapter 4 / Section 12-4-101 ## Text (a) (1) It is unlawful for any officer, committee member, director, or other person whose duty it is to vote for, let out, overlook, or in any manner to superintend any work or any contract in which any municipal corporation, county, state, development district, utility district, human resource agency, or other political subdivision created by statute shall or may be interested, to be directly interested in any such contract. "Directly interested" means any contract with the official personally or with any business in which the official is the sole proprietor, a partner, or the person having the controlling interest. "Controlling interest" includes the individual with the ownership or control of the largest number of outstanding shares owned by any single individual or corporation. This subdivision (a)(1) shall not be construed to prohibit any officer, committee person, director, or any person, other than a member of a local governing body of a county or municipality, from voting on the budget, appropriation resolution, or tax rate resolution, or amendments thereto, unless the vote is on a specific amendment to the budget or a specific appropriation or resolution in which such person is directly interested. (2) (A) Subdivision (a)(1) shall also apply to a member of the board of directors of any not-for-profit corporation authorized by the laws of Tennessee to act for the benefit or on behalf of any one (1) or more counties, cities, towns and local governments pursuant to title 7, chapter 54 or 58. (B) Subdivision (a)(2)(A) shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census. (b) It is unlawful for any officer, committee member, director, or other person whose duty it is to vote for, let out, overlook, or in any manner to superintend any work or any contract in which any municipal corporation, county, state, development district, utility district, human resource agency, or other political subdivision created by statute shall or may be interested, to be indirectly interested in any such contract unless the officer publicly acknowledges such officer's interest. "Indirectly interested" means any contract in which the officer is interested but not directly so, but includes contracts where the officer is directly interested but is the sole supplier of goods or services in a municipality or county. (c) This section shall apply to a member of the board of directors or officer of any nonprofit corporation required under § 8-44-102 to conduct all meetings of its governing body as open meetings. Amended by 2016 Tenn. Acts, ch. 1072,s 5, eff. 5/20/2016. Amended by 2013 Tenn. Acts, ch. 403,s 71, eff. 7/1/2013. Acts 1869-1870, ch. 92, § 1; Shan., § 1133; Code 1932, § 1874; Acts 1977, ch. 102, § 1; T.C.A. (orig. ed.), § 12-401; Acts 1983, ch. 388, §§ 4, 6; 1984, ch. 831, § 1; 1986, ch. 765, §§ 1-3; 1988, ch. 908, §§ 4, 5; 1989, ch. 366, §§ 1-3; 1998, ch. 774, § 1; 2006, ch. 923, § 4. eetings. Amended by 2016 Tenn. Acts, ch. 1072,s 5, eff. 5/20/2016. Amended by 2013 Tenn. Acts, ch. 403,s 71, eff. 7/1/2013. Acts 1869-1870, ch. 92, § 1; Shan., § 1133; Code 1932, § 1874; Acts 1977, ch. 102, § 1; T.C.A. (orig. ed.), § 12-401; Acts 1983, ch. 388, §§ 4, 6; 1984, ch. 831, § 1; 1986, ch. 765, §§ 1-3; 1988, ch. 908, §§ 4, 5; 1989, ch. 366, §§ 1-3; 1998, ch. 774, § 1; 2006, ch. 923, § 4. (a) (1) It is unlawful for any officer, committee member, director, or other person whose duty it is to vote for, let out, overlook, or in any manner to superintend any work or any contract in which any municipal corporation, county, state, development district, utility district, human resource agency, or other political subdivision created by statute shall or may be interested, to be directly interested in any such contract. "Directly interested" means any contract with the official personally or with any business in which the official is the sole proprietor, a partner, or the person having the controlling interest. "Controlling interest" includes the individual with the ownership or control of the largest number of outstanding shares owned by any single individual or corporation. This subdivision (a)(1) shall not be construed to prohibit any officer, committee person, director, or any person, other than a member of a local governing body of a county or municipality, from voting on the budget, appropriation resolution, or tax rate resolution, or amendments thereto, unless the vote is on a specific amendment to the budget or a specific appropriation or resolution in which such person is directly interested. (2) (A) Subdivision (a)(1) shall also apply to a member of the board of directors of any not-for-profit corporation authorized by the laws of Tennessee to act for the benefit or on behalf of any one (1) or more counties, cities, towns and local governments pursuant to title 7, chapter 54 or 58. (B) Subdivision (a)(2)(A) shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census. (1) It is unlawful for any officer, committee member, director, or other person whose duty it is to vote for, let out, overlook, or in any manner to superintend any work or any contract in which any municipal corporation, county, state, development district, utility district, human resource agency, or other political subdivision created by statute shall or may be interested, to be directly interested in any such contract. "Directly interested" means any contract with the official personally or with any business in which the official is the sole proprietor, a partner, or the person having the controlling interest. "Controlling interest" includes the individual with the ownership or control of the largest number of outstanding shares owned by any single individual or corporation. This subdivision (a)(1) shall not be construed to prohibit any officer, committee person, director, or any person, other than a member of a local governing body of a county or municipality, from voting on the budget, appropriation resolution, or tax rate resolution, or amendments thereto, unless the vote is on a specific amendment to the budget or a specific appropriation or resolution in which such person is directly interested. be construed to prohibit any officer, committee person, director, or any person, other than a member of a local governing body of a county or municipality, from voting on the budget, appropriation resolution, or tax rate resolution, or amendments thereto, unless the vote is on a specific amendment to the budget or a specific appropriation or resolution in which such person is directly interested. (2) (A) Subdivision (a)(1) shall also apply to a member of the board of directors of any not-for-profit corporation authorized by the laws of Tennessee to act for the benefit or on behalf of any one (1) or more counties, cities, towns and local governments pursuant to title 7, chapter 54 or 58. (B) Subdivision (a)(2)(A) shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census. (A) Subdivision (a)(1) shall also apply to a member of the board of directors of any not-for-profit corporation authorized by the laws of Tennessee to act for the benefit or on behalf of any one (1) or more counties, cities, towns and local governments pursuant to title 7, chapter 54 or 58. (B) Subdivision (a)(2)(A) shall not apply to any county with a metropolitan form of government and having a population of four hundred thousand (400,000) or more, according to the 1980 federal census or any subsequent federal census. (b) It is unlawful for any officer, committee member, director, or other person whose duty it is to vote for, let out, overlook, or in any manner to superintend any work or any contract in which any municipal corporation, county, state, development district, utility district, human resource agency, or other political subdivision created by statute shall or may be interested, to be indirectly interested in any such contract unless the officer publicly acknowledges such officer's interest. "Indirectly interested" means any contract in which the officer is interested but not directly so, but includes contracts where the officer is directly interested but is the sole supplier of goods or services in a municipality or county. (c) This section shall apply to a member of the board of directors or officer of any nonprofit corporation required under § 8-44-102 to conduct all meetings of its governing body as open meetings. Amended by 2016 Tenn. Acts, ch. 1072,s 5, eff. 5/20/2016. Amended by 2013 Tenn. Acts, ch. 403,s 71, eff. 7/1/2013. Acts 1869-1870, ch. 92, § 1; Shan., § 1133; Code 1932, § 1874; Acts 1977, ch. 102, § 1; T.C.A. (orig. ed.), § 12-401; Acts 1983, ch. 388, §§ 4, 6; 1984, ch. 831, § 1; 1986, ch. 765, §§ 1-3; 1988, ch. 908, §§ 4, 5; 1989, ch. 366, §§ 1-3; 1998, ch. 774, § 1; 2006, ch. 923, § 4. ## Nearby sections - [Tenn. Code Ann. § 12-4-101 Personal interest of officers prohibited](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-101.md) - [Tenn. Code Ann. § 12-4-102 Penalty for unlawful interest](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-102.md) - [Tenn. Code Ann. § 12-4-103 Bidding, sale, or offer for sale by state employees or members of general assembly prohibited](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-103.md) - [Tenn. Code Ann. § 12-4-104 Penalty for unlawful transactions](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-104.md) - [Tenn. Code Ann. § 12-4-105 Grand jury investigations](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-105.md) - [Tenn. Code Ann. § 12-4-106 Prohibition against receiving rebates, gifts, money or anything of value - Conflicts of interest](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-106.md) - [Tenn. Code Ann. § 12-4-107 Contracts for professional services](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-107.md) - [Tenn. Code Ann. § 12-4-108 Withdrawal of retained funds - Contractors](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-108.md) - [Tenn. Code Ann. § 12-4-109 Preplanning of capital investment projects account](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-109.md) - [Tenn. Code Ann. § 12-4-110 Energy-related services](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-110.md) - [Tenn. Code Ann. § 12-4-111 Standard prototype design for correctional facilities](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-111.md) - [Tenn. Code Ann. § 12-4-112 State agency contract guidelines](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-112.md) - [Tenn. Code Ann. § 12-4-113 Deadline for addenda and questions concerning bid documents](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-113.md) - [Tenn. Code Ann. § 12-4-114 No conflict of interest allowed](https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-114.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TN_T12_C4_S12-4-101. Check the current official text before relying on it. Not legal advice.