BOARD MEMBER CONFLICT OF INTEREST AND FINANCIAL DISCLOSURE

(Districts including no portion of a first-class county)

FILE: BBFA

Critical

The Board of Education desires that its members not only adhere to all laws regarding conflict of interest, but are also alert to situations which have the appearance of a conflict of interest.

It is not the intent of this policy to prevent the district from contracting with corporations or businesses because a Board member is an employee of the firm. The policy is designed to prevent placing a Board member in a position where his or her interest in public schools and in his or her place of employment (or other indirect interest) might conflict, and to avoid appearances of conflict of interest, even though such conflict may not exist.

Sale, Rental or Lease of Property by Individual Board Members

Individual Board members shall not sell, rent or lease goods, supplies, commodities, real estate or property of any kind to the district unless the total compensation payable to such Board member is not in excess of $500 per transaction or $1500 per year, or the award is made after public notice, competitive bidding, and the bid or offer is the lowest received. Competitive bidding shall not be required in the case of real estate.

Services Provided by Individual Board Members

Individual Board members shall not provide services to the district in their capacity as individuals; however, this shall not prevent businesses in which Board members have an interest from providing such services in compliance with this policy.

Business Relationships

Businesses in which Board members have no more than a 10 percent ownership interest may make sales of services and property to the district without restriction.

Businesses in which a Board member is sole proprietor, a partner with more than a 10 percent ownership interest, or the owner of more than 10 percent of the outstanding shares of any class of stock may make sales of goods and other property and provide services to the district after public notice and competitive bidding, provided that the bid or offer is the lowest received. Competitive bidding shall not be required in the case of real estate.

Self-Dealing

A Board member shall not favorably act on any matter that is so specifically designed so as to provide a special monetary benefit*** to such official or his or her spouse or dependent children.

Furthermore, Board members may not participate directly or indirectly to influence a decision when the result may be the acceptance by the district of a service, or the sale, rental or lease of property to the district, if a benefit of more than $500 per year results to the Board member, the Board member's spouse, a dependent child in the Board member's custody, a sole proprietorship owned by the Board member or his or her spouse, a partnership in which the Board member or spouse is a partner, a corporation in which the Board member is an officer or director or in which the member, spouse, or dependent child in the member's custody together or separately own more than 10 percent of the outstanding shares of any class of stock, or any trust in which the Board member is the settlor or trustee, or in which the member, spouse or dependent child together or separately are beneficiaries or holders of more than a 10 percent interest in the trust, unless the transaction is made after public notice and competitive bidding, where the offer is the lowest received, provided that competitive bidding shall not be required for real estate.

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 him or herself, any other person or any business.

Nepotism

The Board shall not employ one of its members, nor shall any Board member vote to employ any person who is related within the fourth degree to such Board member, either by consanguinity or affinity. In the event that an individual is recommended for employment by the administrative staff and the individual is related within the fourth degree to a Board member, the Board member shall declare his or her interest, and shall refrain from debating or voting upon the question of employment.

Contributions

Campaign contributions will not be converted to personal use except to defray necessary expenses of the office; to defray entertaining expenses associated with the candidacy; to return contributions; or to make an unconditional gift to a political organization or charity.

Financial Interest Statement

The Seneca R-VII School District Board of Education hereby adopts a policy and resolution to make public the disclosure of potential Board member and employee conflicts of interest to include the following information:

1. Each transaction in excess of $500 per calendar year between a Board member, superintendent (chief administrative officer), chief purchasing officer, or general counsel employed full time and any person related within first degree by consanguinity or affinity* to such persons and the school district, excluding compensation received as an employee or payment of any tax, fee or penalty due to the district. This shall include the dates and identities of the parties in the transaction.

2. Each transaction in excess of $500 between any business entity in which such individuals have a substantial interest**, and the school district, excluding any payment of tax, fee or penalty due to the district or payment for providing utility service to the district. This shall include the dates and identities of the parties in the transactions.

The chief administrative officer (superintendent) and chief purchasing officer (to be designated by Board if different than superintendent) will also disclose in writing the following information for themselves, their spouses and dependent children:

1. The name and address of each employer from whom income of $1000 or more was received.

2. The name and address of each sole proprietorship which the individual owned; the name, address and general nature of business conducted by each general partnership or joint venture in which he or she was a partner or participant; the name and address of each partner or coparticipant in the partnership or joint venture unless the information is already filed with the secretary of state; the name, address and general nature of business of any closely held corporation or limited partnership in which the individual owned 10% or more of any class of the outstanding stock or limited partner's units; and the name of any publicly traded corporation or limited partnership which is listed on a regulated stock exchange or automated quotation system which the individual owned 2% or more of any class of outstanding stock, limited partnership units or other equity interests.

3. The names and addresses of each corporation for which the individual served in the capacity of director, officer or receiver.

This portion of the policy dealing with the financial interest statement will be adopted in an open meeting every other year by September 15. A certified copy of this policy/resolution shall be sent to the Missouri Ethics Commission within 10 days of the adoption. Disclosure reports shall be filed by May 1 for the preceding calendar year with the commission and the Seneca R-VII School District Board of Education, and the reports will be made available for public inspection and copying during normal business hours.

* The "first degree of consanguinity or affinity" includes father, mother, spouse, son or daughter by virtue of a blood relationship or marriage.

** "Substantial interest" is ownership by the individual, his or her spouse or dependent children, either singularly or collectively of ten percent or more of any business entity, or an interest having a value of ten thousand dollars ($10,000) or more, or the receipt of a salary, gratuity or other compensation of five thousand dollars ($5,000) or more from any individual, partnership, organization or association within any calendar year.

*** "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.

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Note: The reader is encouraged to check the index located at the beginning of this section for other pertinent policies and to review administrative procedures and/or forms for related information.

Adopted: 1/15/98

Readopted: 1/18/01, 4/7/02

Cross Refs: DJC, Bidding Requirements

GBL, Personnel Records

GCD, Professional Staff Recruiting and Hiring

GDC, Support Staff Recruiting and Hiring

JO, Student Records

Legal Refs: §§ 105.450 - .458, 105.462, 105.466, 105.468, 105.472, 105.482,

162.391, 168.126, 171.181, RSMo.

Article VII, Section 6, Missouri Constitution

Seneca R-VII School District, Seneca, Missouri

© 2000, Missouri School Boards' Association, Registered in U.S. Copyright Office

For Office Use Only: BBFA-C.2J (7/98)