Section 6211.113. Purchase of goods and services for profit and nonprofit organizations

(a) Unless made under the competitive bidding procedures of this subchapter, the purchase of goods and services from a person having an interest in the organization that operates the program is not allowable.

(b) For the purpose of subsection (a), an interest shall include:

(1) A managing employe, such as general manager, business manager, administrator, director or other individual who exercises operational or managerial control over, or who directly or indirectly is in charge of, the day-to-day operation of the program.

(2) A partnership or corporation organized for profit in which the managing employe of the program is an officer, director or trustee or in which the manager or employe has an ownership interest equal to more than 10% of the partnership or corporation.