Ohio Rev. Code » Chapter 2921
Ohio Revised Code

Ohio Rev. Code § 2921.42 (2026)

Having an unlawful interest in a public contract

✓ current as of May 2026
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Effective:
September 29, 2007
Latest Legislation:
House Bill 119 - 127th General Assembly
PDF:
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(A) No public official shall knowingly do any of the following:

(1) Authorize, or employ the authority or influence of the public official's office to secure authorization of any public contract in which the public official, a member of the public official's family, or any of the public official's business associates has an interest;

(2) Authorize, or employ the authority or influence of the public official's office to secure the investment of public funds in any share, bond, mortgage, or other security, with respect to which the public official, a member of the public official's family, or any of the public official's business associates either has an interest, is an underwriter, or receives any brokerage, origination, or servicing fees;

(3) During the public official's term of office or within one year thereafter, occupy any position of profit in the prosecution of a public contract authorized by the public official or by a legislative body, commission, or board of which the public official was a member at the time of authorization, unless the contract was let by competitive bidding to the lowest and best bidder;

(4) Have an interest in the profits or benefits of a public contract entered into by or for the use of the political subdivision or governmental agency or instrumentality with which the public official is connected;

(5) 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.

(B) In the absence of bribery or a purpose to defraud, a public official, member of a public official's family, or any of a public official's 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 per cent of the outstanding shares of the corporation, and the amount due that person as creditor does not exceed five per cent 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 political subdivision or governmental agency or instrumentality involved, an affidavit giving that person's 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, member of a public official's family, or one of a public official's 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 political subdivision or governmental agency or instrumentality involved;

(2) The supplies or services are unobtainable elsewhere for the same or lower cost, or are being furnished to the political subdivision or governmental agency or instrumentality as part of a continuing course of dealing established prior to the public official's becoming associated with the political subdivision or governmental agency or instrumentality involved;

(3) The treatment accorded the political subdivision or governmental agency or instrumentality 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 political subdivision or governmental agency or instrumentality involved, of the interest of the public official, member of the public official's family, or business associate, and the public official takes no part in the deliberations or decision of the political subdivision or governmental agency or instrumentality with respect to the public contract.

(D) Division (A)(4) of this section 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 the public employee's 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) Whoever violates this section is guilty of having an unlawful interest in a public contract. Violation of division (A)(1) or (2) of this section is a felony of the fourth degree. Violation of division (A)(3), (4), or (5) of this section is a misdemeanor of the first degree.

(F) It is not a violation of this section for a prosecuting attorney to appoint assistants and employees in accordance with sections 309.06 and 2921.421 of the Revised Code, for a chief legal officer of a municipal corporation or an official designated as prosecutor in a municipal corporation to appoint assistants and employees in accordance with sections 733.621 and 2921.421 of the Revised Code, or for a township law director appointed under section 504.15 of the Revised Code to appoint assistants and employees in accordance with sections 504.151 and 2921.421 of the Revised Code.

(G) This section does not apply to a public contract in which a township trustee in a township with a population of five thousand or less in its unincorporated area, a member of the township trustee's family, or one of the township trustee's business associates has an interest, if all of the following apply:

(1) The subject of the public contract is necessary supplies or services for the township and the amount of the contract is less than five thousand dollars per year;

(2) The supplies or services are being furnished to the township as part of a continuing course of dealing established before the township trustee held that office with the township;

(3) The treatment accorded the township is either preferential to or the same as that accorded other customers or clients in similar transactions;

(4) The entire transaction is conducted with full knowledge by the township of the interest of the township trustee, member of the township trustee's family, or the township trustee's business associate.

(H) Any public contract in which a public official, a member of the public official's family, or any of the public official's business associates has an interest in violation of this section is void and unenforceable. Any contract securing the investment of public funds in which a public official, a member of the public official's family, or any of the public official's business associates has an interest, is an underwriter, or receives any brokerage, origination, or servicing fees and that was entered into in violation of this section is void and unenforceable.

(I) 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 state, any of its political subdivisions, or any agency or instrumentality of either, including the employment of an individual by the state, any of its political subdivisions, or any agency or instrumentality of either;

(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 section 733.621 of the Revised Code.
Notes of Decisions
Cited in 59 cases (16 in the last 5 years), 1983–2026 · leading case: State ex rel. Mallory v. Pub. Employees Ret. Bd., 82 Ohio St. 3d 235 (Ohio 1998).
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State ex rel. Mallory v. Pub. Employees Ret. Bd., 82 Ohio St. 3d 235 (Ohio 1998). · cites it 16× “Even assuming evidence of a contract between Kura and the FCPDO, the contract would have been invalid under R.C. 2921.42, which defines unlawful interests in public contracts.”
State v. Urbin, 772 N.E.2d 1239 (Ohio Ct. App. 2002). · cites it 13× “29(A) for judgment of acquittal on the counts alleging having an unlawful interest in a public contract, as proscribed by [R.C. 2921.42], in that the evidence was not legally sufficient to support a conviction.”
Med. Mut. of Ohio v. FrontPath Health Coalition, 2023 Ohio 243 (Ohio Ct. App. 2023). · cites it 15× “That pattern of corrupt activity consists of at least two predicate acts, including, but not limited to, unlawfully, willfully, and knowingly, soliciting and conspiring with others to violate R.C. 2921.42, 19. which makes it a crime for any public official to “[a]uthorize, or…”
State ex rel. Mallory v. Pub. Emp. Ret. Bd., 1998 Ohio 380 (Ohio 1998). · cites it 17× “This argument, since the FCPDO did not exist before Kura hired a staff, is without merit.”
State v. Rousseau, 822 N.E.2d 847 (Ohio Ct. App. 2004). · cites it 30× “On December 12, 2003, the trial court overruled appellant’s motion, finding that “[appellant] as a member of the Lorain County Board of Elections is clearly ‘connected’ with the Office of the Secretary of State, as [appellant] admits, and is also ‘connected’ with the County…”
State v. Whitfield, 2010 Ohio 2 (Ohio 2010). · cites it 2× “2d 521 (holding for purposes of R.C. 2921.42(C)(1) that a guilty finding alone is sufficient to constitute a conviction).”
State v. Hunter, 2016 Ohio 123 (Ohio Ct. App. 2016). · cites it 7× “, concurring) (it is appropriate to consider opinions from the Ohio Ethics Commission when interpreting the scope of R.C. 2921.42). In 1992, that body concluded that the statute “extends beyond the initial hiring of the family member and prohibits a public official from…”
Disciplinary Couns. v. Hunter, 2023 Ohio 4168 (Ohio 2023). · cites it 8× “For example, he violated R.C. 2921.42(A) for accepting a nominal fee from the probate court’s guardian account for serving as a guardian for indigent and mentally-ill persons in need of legal representation.”
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2021 Ohio 2008 (Ohio Ct. App. 2021). · cites it 32× “{¶37} R.C. 2921.42 makes it a first degree misdemeanor for any public official to “knowingly * * * [h]ave an interest in the profits or benefits of a public contract entered into by or for the use of the political subdivision or governmental agency or instrumentality with which…”
State ex rel. Altman-Bates v. Pub. Emps. Ret. Bd. (Slip Opinion), 2016 Ohio 3100 (Ohio 2016). · cites it 4× “In Mallory, this court held that it would have been a violation of R.C. 2921.42 for Kura, the appointed officeholder, to contract for services with a private agency of which he was also the director.”
State v. Ross, 2012 Ohio 536 (Ohio Ct. App. 2012). · cites it 5× “02(B); (5) eight counts of having an unlawful interest in a public contract, in violation of R.C. 2921.42(A)(1); and (5) three counts of failing to file a tax return, in violation of R.”
State v. Pinkney, 522 N.E.2d 555 (Ohio 1988). · cites it 5× “In the instant case, R.C. 2921.42, the involved conflict of interest statute, prohibits a public official from “knowingly” engaging in certain proscribed conduct.”
Show all 59 citing cases →
— Ohio Rev. Code § 2921.42(A) — 18 cases
Med. Mut. of Ohio v. FrontPath Health Coalition, 2023 Ohio 243 (Ohio Ct. App. 2023). “That pattern of corrupt activity consists of at least two predicate acts, including, but not limited to, unlawfully, willfully, and knowingly, soliciting and conspiring with others to violate R.C. 2921.42, 19. which makes it a crime for any public official to “[a]uthorize, or…”
State v. Pinkney, 522 N.E.2d 555 (Ohio 1988). “In the instant case, R.C. 2921.42, the involved conflict of interest statute, prohibits a public official from “knowingly” engaging in certain proscribed conduct.”
Disciplinary Couns. v. Hunter, 2023 Ohio 4168 (Ohio 2023). “For example, he violated R.C. 2921.42(A) for accepting a nominal fee from the probate court’s guardian account for serving as a guardian for indigent and mentally-ill persons in need of legal representation.”
State ex rel. Reynolds v. Nix, 2024 Ohio 4669 (Ohio 2024).
State v. Rice, 659 N.E.2d 826 (Ohio Ct. App. 1995).
— Ohio Rev. Code § 2921.42(A)(1) — 23 cases
Med. Mut. of Ohio v. FrontPath Health Coalition, 2023 Ohio 243 (Ohio Ct. App. 2023). “That pattern of corrupt activity consists of at least two predicate acts, including, but not limited to, unlawfully, willfully, and knowingly, soliciting and conspiring with others to violate R.C. 2921.42, 19. which makes it a crime for any public official to “[a]uthorize, or…”
Disciplinary Couns. v. Hunter, 2023 Ohio 4168 (Ohio 2023). “For example, he violated R.C. 2921.42(A) for accepting a nominal fee from the probate court’s guardian account for serving as a guardian for indigent and mentally-ill persons in need of legal representation.”
State v. Hunter, 2016 Ohio 123 (Ohio Ct. App. 2016). “, concurring) (it is appropriate to consider opinions from the Ohio Ethics Commission when interpreting the scope of R.C. 2921.42). In 1992, that body concluded that the statute “extends beyond the initial hiring of the family member and prohibits a public official from…”
State v. Ross, 2012 Ohio 536 (Ohio Ct. App. 2012). “02(B); (5) eight counts of having an unlawful interest in a public contract, in violation of R.C. 2921.42(A)(1); and (5) three counts of failing to file a tax return, in violation of R.”
State v. Urbin, 772 N.E.2d 1239 (Ohio Ct. App. 2002). “29(A) for judgment of acquittal on the counts alleging having an unlawful interest in a public contract, as proscribed by [R.C. 2921.42], in that the evidence was not legally sufficient to support a conviction.”
— Ohio Rev. Code § 2921.42(A)(2) — 3 cases
Columbiana Cnty. Bd. of Commissioners v. Nationwide Ins., 719 N.E.2d 561 (Ohio Ct. App. 1998).
State v. Infante, 2020 Ohio 992 (Ohio Ct. App. 2020).
Stewart v. Gentile, 2025 Ohio 5012 (Ohio Ct. App. 2025).
— Ohio Rev. Code § 2921.42(A)(3) — 1 case
State v. Stinebaugh, 2024 Ohio 2677 (Ohio Ct. App. 2024).
— Ohio Rev. Code § 2921.42(A)(4) — 11 cases
State v. Rousseau, 822 N.E.2d 847 (Ohio Ct. App. 2004). “On December 12, 2003, the trial court overruled appellant’s motion, finding that “[appellant] as a member of the Lorain County Board of Elections is clearly ‘connected’ with the Office of the Secretary of State, as [appellant] admits, and is also ‘connected’ with the County…”
State ex rel. Altman-Bates v. Pub. Emps. Ret. Bd. (Slip Opinion), 2016 Ohio 3100 (Ohio 2016). “In Mallory, this court held that it would have been a violation of R.C. 2921.42 for Kura, the appointed officeholder, to contract for services with a private agency of which he was also the director.”
State ex rel. Mallory v. Pub. Employees Ret. Bd., 82 Ohio St. 3d 235 (Ohio 1998). “Even assuming evidence of a contract between Kura and the FCPDO, the contract would have been invalid under R.C. 2921.42, which defines unlawful interests in public contracts.”
State ex rel. Bates v. Pub. Emps. Ret. Bd., 2014 Ohio 1183 (Ohio Ct. App. 2014).
State ex rel. Mallory v. Pub. Emp. Ret. Bd., 1998 Ohio 380 (Ohio 1998). “This argument, since the FCPDO did not exist before Kura hired a staff, is without merit.”
— Ohio Rev. Code § 2921.42(C) — 8 cases
State ex rel. Mallory v. Pub. Employees Ret. Bd., 82 Ohio St. 3d 235 (Ohio 1998). “Even assuming evidence of a contract between Kura and the FCPDO, the contract would have been invalid under R.C. 2921.42, which defines unlawful interests in public contracts.”
State ex rel. Mallory v. Pub. Emp. Ret. Bd., 1998 Ohio 380 (Ohio 1998). “This argument, since the FCPDO did not exist before Kura hired a staff, is without merit.”
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2021 Ohio 2008 (Ohio Ct. App. 2021). “{¶37} R.C. 2921.42 makes it a first degree misdemeanor for any public official to “knowingly * * * [h]ave an interest in the profits or benefits of a public contract entered into by or for the use of the political subdivision or governmental agency or instrumentality with which…”
State v. Pinkney, 522 N.E.2d 555 (Ohio 1988). “In the instant case, R.C. 2921.42, the involved conflict of interest statute, prohibits a public official from “knowingly” engaging in certain proscribed conduct.”
Walsh v. Bollas, 612 N.E.2d 1252 (Ohio Ct. App. 1992).
— Ohio Rev. Code § 2921.42(C)(1) — 2 cases
State v. Whitfield, 2010 Ohio 2 (Ohio 2010). “2d 521 (holding for purposes of R.C. 2921.42(C)(1) that a guilty finding alone is sufficient to constitute a conviction).”
State v. Gallagher, 2019 Ohio 4849 (Ohio Ct. App. 2019).
— Ohio Rev. Code § 2921.42(C)(2) — 1 case
Walsh v. Bollas, 612 N.E.2d 1252 (Ohio Ct. App. 1992).
— Ohio Rev. Code § 2921.42(C)(3) — 1 case
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2021 Ohio 2008 (Ohio Ct. App. 2021). “{¶37} R.C. 2921.42 makes it a first degree misdemeanor for any public official to “knowingly * * * [h]ave an interest in the profits or benefits of a public contract entered into by or for the use of the political subdivision or governmental agency or instrumentality with which…”
— Ohio Rev. Code § 2921.42(C)(4) — 5 cases
State ex rel. Mallory v. Pub. Employees Ret. Bd., 82 Ohio St. 3d 235 (Ohio 1998). “Even assuming evidence of a contract between Kura and the FCPDO, the contract would have been invalid under R.C. 2921.42, which defines unlawful interests in public contracts.”
State v. Pinkney, 522 N.E.2d 555 (Ohio 1988). “In the instant case, R.C. 2921.42, the involved conflict of interest statute, prohibits a public official from “knowingly” engaging in certain proscribed conduct.”
State ex rel. Mallory v. Pub. Emp. Ret. Bd., 1998 Ohio 380 (Ohio 1998). “This argument, since the FCPDO did not exist before Kura hired a staff, is without merit.”
Petsche v. Hruby (N.D. Ohio 2025).
John Petsche v. Jerry Hruby (6th Cir. 2026).
— Ohio Rev. Code § 2921.42(E) — 5 cases
Med. Mut. of Ohio v. FrontPath Health Coalition, 2023 Ohio 243 (Ohio Ct. App. 2023). “That pattern of corrupt activity consists of at least two predicate acts, including, but not limited to, unlawfully, willfully, and knowingly, soliciting and conspiring with others to violate R.C. 2921.42, 19. which makes it a crime for any public official to “[a]uthorize, or…”
State v. Ross, 2012 Ohio 536 (Ohio Ct. App. 2012). “02(B); (5) eight counts of having an unlawful interest in a public contract, in violation of R.C. 2921.42(A)(1); and (5) three counts of failing to file a tax return, in violation of R.”
Morrow Cnty. Airport Auth. v. Whetstone Flyers, Ltd., 860 N.E.2d 733 (Ohio 2007).
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2021 Ohio 2008 (Ohio Ct. App. 2021). “{¶37} R.C. 2921.42 makes it a first degree misdemeanor for any public official to “knowingly * * * [h]ave an interest in the profits or benefits of a public contract entered into by or for the use of the political subdivision or governmental agency or instrumentality with which…”
State v. Stinebaugh, 2024 Ohio 2677 (Ohio Ct. App. 2024).
— Ohio Rev. Code § 2921.42(E)(1) — 2 cases
State ex rel. Bates v. Pub. Emps. Ret. Bd., 2014 Ohio 1183 (Ohio Ct. App. 2014).
Struewing v. Vill. of Yellow Springs, 2014 Ohio 1864 (Ohio Ct. App. 2014).
— Ohio Rev. Code § 2921.42(G) — 1 case
State v. Lordi, 748 N.E.2d 566 (Ohio Ct. App. 2000).
— Ohio Rev. Code § 2921.42(G)(1) — 1 case
State v. Lordi, 748 N.E.2d 566 (Ohio Ct. App. 2000).
— Ohio Rev. Code § 2921.42(H) — 3 cases
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2021 Ohio 2008 (Ohio Ct. App. 2021). “{¶37} R.C. 2921.42 makes it a first degree misdemeanor for any public official to “knowingly * * * [h]ave an interest in the profits or benefits of a public contract entered into by or for the use of the political subdivision or governmental agency or instrumentality with which…”
Ohio Atty. Gen. v. Lager, 2025 Ohio 5649 (Ohio Ct. App. 2025).
Bilbrey-Jergens J v. L.L.C. v. Lamanna's Lawn & Landscaping, 2014 Ohio 2090 (Ohio Ct. App. 2014).
— Ohio Rev. Code § 2921.42(I)(1) — 1 case
State v. Hunter, 2016 Ohio 123 (Ohio Ct. App. 2016). “, concurring) (it is appropriate to consider opinions from the Ohio Ethics Commission when interpreting the scope of R.C. 2921.42). In 1992, that body concluded that the statute “extends beyond the initial hiring of the family member and prohibits a public official from…”
— Ohio Rev. Code § 2921.42(I)(1)(a) — 1 case
Sun Bldg. Ltd. P'ship v. Value Learning & Teaching Academy, Inc., 2021 Ohio 2008 (Ohio Ct. App. 2021). “{¶37} R.C. 2921.42 makes it a first degree misdemeanor for any public official to “knowingly * * * [h]ave an interest in the profits or benefits of a public contract entered into by or for the use of the political subdivision or governmental agency or instrumentality with which…”
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