1.29 Board Member Conflict of Interest Policy
All trustees of the College shall adhere to the laws regarding conflict of interest and take steps to avoid situations where their decisions or actions in their capacity as Board members conflict with the mission of the College.
As used in this policy, “businesses owned by Board members” includes sole proprietorships, partnerships, joint ventures or corporations where the Board member is the sole proprietor, a partner having more than a ten (10) percent partnership interest, or a co-participant or owner of more than ten (10) percent of the outstanding shares of any class of stock.
1.29.1 Sale, Rental, Lease or Provision of Personal Property
Board members or businesses they own shall not sell, rent, lease or provide personal property to the district.
1.29.2 Sale, Rental or Lease of Real Property (Real Estate)
Board members and businesses they own may sell, rent or lease real estate to the College. Public notice of the transaction must be given prior to execution if the payment to the Board member or business exceeds $500 per transaction or $5,000 per year.
The College shall not employ Board members for compensation even on a part-time basis. While a Board member remains on the Board of Trustees, the College will not accept an application of employment from a Board member, consider a Board member for employment or decide to employ a Board member. Board members may provide services on a volunteer basis.
1.29.4 Independent Contractor
Board members may provide services to the College as independent contractors through businesses they own. If payment for the service exceeds $500 per transaction or $5,000 per year, the College must give public notice and competitively bid the service, and the bid or offer of the Board member’s business must be the lowest received. Businesses owned by Board members may provide services on a volunteer basis.
1.29.5 Businesses That Employ Board Members
Board members may participate in discussions and vote on motions for the College to do business with entities that employ the Board member as long as the business is not owned by the Board member and the Board member will not receive any financial benefit from the transaction. The Board member may need to submit a statement of interest as described below.
1.29.6 Statement of Interest
If a Board member has a substantial personal or private interest in a decision before the Board, before voting the Board member shall provide a written report of the nature of the interest to the Board secretary. The written statement will be recorded in the minutes. A Board member will have complied with this requirement if the Board member has disclosed the interest in a personal financial disclosure statement that was filed or amended prior to the vote.
A “substantial interest” exists when the Board member, his or her spouse or dependent children, either singularly or collectively, directly or indirectly:
1. Own(s) ten (10) percent or more of any business entity; or
2. Own(s) an interest having a value of $10,000 or more in any business entity; or
3. Receive(s) a salary, gratuity or other compensation or remuneration of $5,000 or more from any individual, partnership, organization or association within any calendar year.
A Board member shall not favorably act on any matter that is specifically designed to provide a special monetary benefit to the Board member, his or her spouse or dependent children.
A “special monetary benefit” means being materially affected in a substantially different manner or degree than the manner or degree in which the public in general will be affected or, if the matter affects only a special class of persons, then affected in a substantially different manner or degree than the manner or degree in which such class will be affected.
A Board member will not directly or indirectly influence or vote on a decision when the Board member knows the result of the decision may be the acceptance by the College of a service or the sale, rental or lease of property to the College and the Board member, his or her spouse, dependent children in his or her custody or any business with which he or she is associated will benefit financially.
“Business with which a person is associated” means:
1. A sole proprietorship owned by the Board member, his or her spouse or any dependent children in the person’s custody.
2. A partnership or joint venture in which the Board member or spouse is a partner, other than as a limited partner of a limited partnership, and any corporation or limited partnership in which the Board member is an officer or director or of which the Board member, spouse or dependent children in the Board member’s custody, whether singularly or collectively, own more than ten (10) percent of the outstanding shares of any class of stock or partnership units.
3. Any trust in which the Board member is the settlor or trustee, or in which the Board member, spouse or dependent children, singularly or collectively, are beneficiaries or holders of a reversionary interest of ten (10) percent or more of the corpus of the trust.
1.29.8 Use of Confidential Information
A Board member shall not use confidential information obtained in the course of his or her official capacity in any manner with the intent to result in financial gain for himself or herself, any other person or any business.
A Board member shall not vote to employ or appoint any person who is related within the fourth degree to such Board member by consanguinity or affinity. In the event that an individual is recommended for employment or appointment and the individual is related within the fourth degree to a Board member, the related Board member shall abstain from voting and shall leave the room during consideration of the question and the vote.
“Fourth degree of consanguinity or affinity” means parents, grandparents, great-grandparents, great-great-grandparents, spouse, children, siblings, grandchildren, great-grandchildren, great-great-grandchildren, nieces or nephews, grand-nieces or grand-nephews, aunts or uncles, great-aunts or great-uncles, and first cousins by virtue of a blood relationship or marriage.
(Adopted 11-12-2007; Reaffirmed 8-28-2017)