Policy ESU-3615

Business

Employee Conflicts of Interest

Reviewed and affirmed by the Board: 
Last Revision: 
Original publish date: 08/22/1989
Related policies & regulations:  
Legal references:  49-401 to 49-14,141

 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 ESU and if the employee is or will be making any recommendation to the Unit Administrator or Unit Board with regard to the contract, the employee shall immediately notify the Unit Administrator of this fact and shall thereafter take no part in deciding which vendor should be contracted with or 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.

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.