Administrative Rules and Procedures to Implement Policy 202.02
ORGANIZATION CONFLICT OF INTEREST – BOARD MEMBERS
This policy establishes what constitutes a conflict of interest, when it occurs, and the procedures to be followed with respect to the conflict.
- Conflict of Interest, General
- A board member shall not use or authorize for personal financial gain of the member, or a member of the board member’s immediate family or a business with which the board member is associated for personal gain except when in accordance with constitutional, statutory and regulatory procedure. Under this policy, a board member shall not use:
(a) the board member’s office or confidential information received as a board member, or
(b) personnel, resources, property, or funds that are subject to the board member’s control.
- A business with which a board member is associated or has a business association shall be deemed or mean a business in which:
(a) the board member is a partner, limited liability company member, director, or officer; or
(b) the board member or a board member’s immediate family is a stockholder in a closely held corporation and owns stock worth One Thousand Dollars ($1,000.00) or more at fair market value, or which represents more than five percent (5%) equity interest in the corporation; or
(c) the board member is a stockholder of publicly traded stock with a fair market value of Ten Thousand Dollars ($10,000.00), or more or which represents more than ten percent (10%) equity interest in the corporation: or
(d) for the purpose of the application of this policy, a board member who has no business association under paragraphs (a) through (c) of this subsection A. 2. with a business involved in a contract with the District if he or she will not receive a direct pecuniary fee, commission or personal benefit as a result of the contract shall not be deemed to have an interest within the meaning of this Section A. 2.
If a board member is required to take any action or make any decision as a board member that may financially benefit or cause financial loss to the board member, his or her immediate family, or a business with which the board member is associated, and the effect of the action is distinguishable from, the effects of such action on the public generally or a broad segment of the public; the board member shall, as soon as the board member is aware or should be aware of the potential conflict of interest:
(a) prepare a written statement describing the matter requiring the action or decision and the nature of the potential conflict;
(b) deliver a copy of the statement to the secretary of the board who shall enter the statement into the public records of the School District;
- Contracts
- No board member, his or her spouse, members of his or her immediate family or a business with whom they are associated may have an interest in any contract to which the district is a party, except where the contract is an agenda item approved by the board at a board meeting and the board member:
(a) Makes a declaration on the record to the board as to the nature of the interest and extent of his or her interest prior to official consideration of the contract.
(b) Does not vote on the matter of awarding the contract.
(c) Does not act for the board with respect to inspection or performance of the contract.
(d) Does not receive a pecuniary fee or commission or personal benefit as a result of the conflict.
(e) The secretary of the board has made the required entries in the ledger kept or required by law.
(f) Board members required to make the disclosure under this section shall not be required to file potential conflict of interest statements required under Section A. 3. above.
Legal Reference:
Neb. Statute 49-1493 to 14, 103.7
Cross Reference:
201 Legal Stats of the School Board
202.1 Board member Code of Ethics
206.4 Board member Compensation of Expenses
402.4 Nepotism
Approved: February 10, 1992
Revised: February 12, 1996
Revised: November 12, 2001
Revised: February 14, 2005
Revised: April 10, 2017