If an employee has an interest in a business, or if the employee has knowledge that the employee’s spouse, parent or dependent child has an interest in a business which is contracting with the School District and if the employee is or will be making any recommendation to the Superintendent or Lincoln Board of Education with regard to the contract, the employee shall immediately notify the Associate Superintendent for Business Affairs of this fact and shall thereafter take no part in deciding which vendor should be selected. If an employee has an interest in a business or if the employee has knowledge that the employee’s spouse, parent or dependent child has an interest in a business, said employee shall not list the business as the suggested vendor on any requests for supplies, equipment or services. Notwithstanding anything to the contrary, no employee may enter into any agreement or understanding on behalf of the District that may financially benefit the employee, member of the employee’s immediate family, or a business with which the employee is associated, unless (1) the employee prepares and files a written statement describing the nature of the potential conflict, (2) only participates in the decision to the extent legally required, and (3) that the Board of Education otherwise independently approves such contract or arrangement.
For purposes of this policy an interest in a business shall mean any corporation, partnership, limited liability company, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint-stock company, receivership, trust, activity or entity. An interest in a business shall mean a business: (1) In which the individual is a partner, limited liability company member, director or officer; or (2) in which the individual or a member of the individual’s immediate family is a stockholder of closed corporation stock worth $1,000 or more at fair market value or which represent more than a five percent equity interest or is a stockholder of publicly-traded stock worth $10,000 or more at fair market value or which represents more than 10 percent equity interest. An individual who occupies a confidential professional relationship protected by law shall be exempt from this section. This section shall not apply to publicly-traded stock under a trading account if the filer reports the name and address of the stockbroker.