CONFLICT OF INTEREST

CONFLICT OF INTEREST

po0144.3Adopted November 11, 2013Revised April 18, 2016

0144.3 - CONFLICT OF INTEREST

Board members shall perform their official duties in a manner free from conflict of interest. To this end:

  1. No Board member shall use his/her position as a Board member to benefit either himself/herself or any other individual or agency apart from the total interest of the School District.

  2. When a member of the Board determines that the possibility of a personal interest conflict exists, s/he should, prior to the matter being considered, disclose his/her interest (such disclosure shall become a matter of record in the minutes of the Board), and thereafter shall abstain from participation in both the discussion of the matter and the vote thereon.

  3. A member of the Board is presumed to have a conflict of interest if the member or his/her family member has a financial interest, or a competing financial interest, in the contract or other financial transaction or is an employee of the School District.

    Having a child in the District does not alone constitute a conflict of interest or financial interest in a contract or other financial transaction of the School District.

    "Family member" means a person’s spouse or spouse’s sibling or child; a person’s sibling or sibling’s spouse or child; a person’s child or child’s spouse; or a person’s parent or parent’s spouse, and includes these relationships as created by adoption or marriage.

    1. A Board member is not considered to have a financial interest in any of the following instances:

      1. A contract or other financial transaction between the School District and any of the following:

1) A corporation in which the individual is a stockholder owning 1% or less of the total stock outstanding in any class if the stock is not listed on a stock exchange or owning stock that has a present market value of $25,000.00 or less if the stock is listed on a stock exchange.

2) A corporation in which a trust, if the individual is a beneficiary under the trust, owns 1% or less of the total stock outstanding in any class if the stock is not listed on a stock exchange or owns stock that has a present market value of $25,000.00 or less if the stock is listed on a stock exchange.

3) A professional limited liability company organized pursuant to the Michigan limited liability company act, if the individual is an employee but not a member of the company.

  1. A contract or other financial transaction between the School District and any of the following:

1) A corporation in which the individual is not a director, officer, or employee.

2) A firm, partnership, or other unincorporated association, in which the individual is not a partner, member, or employee.

3) A corporation or firm that has an indebtedness owed to the individual.

  1. A contract between the School District and the intermediate school district.
  2. A contract awarded to the lowest qualified bidder, upon receipt of sealed bids pursuant to a published notice for bids if the notice does not bar, except as authorized by law, any qualified person, firm, corporation, or trust from bidding. This does not apply to any amendments or renegotiations of a contract or to additional payments under the contract that were not authorized by the contract at the time of award.

  1. If the financial interest pertains to a proposed contract with the District, the following requirements must be met:

    1. The Board member shall disclose the financial interest in the contract to the Board with such disclosure made a part of the official Board minutes. If his/her direct financial interest amounts to $250 or more or five percent (5%) or more of the contract cost to the District, the Board member shall make the disclosure in one of two (2) ways:

1) In writing, to the Board president (or if the member is the Board president, to the Board secretary) at least seven (7) days prior to the meeting at which the vote on the contract will be taken. The disclosure shall be made public in the same manner as the Board's notices of its public meetings. (See Bylaw 0165.)

2) By announcement at a meeting at least seven (7) days prior to the meeting at which a vote on the contract is to be taken. The Board member must use this method of disclosure if his/her financial interest amounts to $5000 or more.

  1. Any contract in which there is a conflict of interest as defined by this bylaw and the related statute (M.C.L. 380.1203) must be approved by a majority vote of the full Board without the vote of any Board member with a financial interest.

    However, if a majority of the members of the Board are required to abstain from voting on a contract or other financial transaction due to a financial interest, then for the purposes of that contract or other financial transaction, the members who are not required to abstain constitute a quorum of the board and only a majority of those members eligible to vote is required for approval of the contract or financial transaction.

  2. The official minutes of the Board disclose the name of each party involved in the contract, the nature of the financial interest, and the terms of the contract including the duration, financial consideration between the parties, facilities or services of the District included in the contract, and the nature and degree of assignment of District staff needed to fulfill the contract.

  3. A Board member with a conflict of interest in a contract may not participate in the discussion of nor vote on the contract.

    Board members shall not solicit or accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts involved with Federal grant funds. A Board member may, however, accept a gift of unsolicited items of "nominal value" from a contractor or party to subcontracts that do not involve Federal grant funds. For purposes of this section, "nominal value" means that the gift has a monetary value of State set ISD maximums.

  1. Board members shall not accept any money, goods, or services with a value in excess of the amount established annually by the State Department of Education ($44 within any one (1) month period as of December 31, 2004) from any person who does business or seeks to do business of any kind with the District.

    Board members must disclose any potential conflict of interest which may lead to a violation of this policy to the full Board.
  2. A Board member may be appointed to serve as a volunteer coach or supervisor of a student extra-curricular activity if all of the following conditions are present:

  1. the Board member receives no compensation for service as a volunteer coach or supervisor;

  2. the Board member abstains from voting on issues before the Board concerning the program during the period of time s/he serves as a volunteer coach or supervisor;

  3. there is no other qualified applicant available to fill a vacant position; and

  4. the appointing authority has received the results of a criminal history check and criminal records check from the Michigan State Police or the Federal Bureau of Investigation for the Board member.

See also Policy 6420, conflict of Interest - Legal Counsel, Advisors, Consultants.

Revised 12/14/15