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     3-23-3.   Circumstances under which state authority, board, or commission may authorize member to derive direct benefit from contract. Any elected or appointed state authority, board, or commission may authorize an authority, board, or commission member to derive a direct benefit from a contract if:
             (1)      The member has provided full disclosure to the authority, board, or commission, including:
             (a)      All parties to the contract;
             (b)      The member's role in the contract;
             (c)      The purpose and objective of the contract;
             (d)      The consideration or benefit conferred or agreed to be conferred upon each party; and
             (e)      The duration of the contract;
             (2)      The authority, board, or commission finds that the terms of the contract are fair, reasonable, and not contrary to the public interest; and
             (3)      The authorization is a public record included in the official minutes of the authority, board, or commission, that shall be filed with the auditor-general and attorney general.
     The auditor-general shall compile the authorizations and present them annually for review by the Government Operations and Audit Committee. A member who requests an authorization under this section shall make the request prior to entering into any contract that requires disclosure or within forty-five days after entering into the contract. Once disclosed and authorized by the governing board, no further disclosure or authorization is required unless the contract extends into consecutive fiscal years. A contract that extends into consecutive fiscal years requires an annual disclosure but no new authorization is required. If the authority, board, or commission rejects the request for authorization made by the member, the contract is voidable and subject to disgorgement pursuant to § 3-23-5, or the member may resign from the authority, board, or commission. No member of a state authority, board, or commission may participate in or vote upon a decision of the state authority, board, or commission relating to a matter in which the member derives a direct benefit.

Source: SL 2016, ch 33, § 3; SL 2017, ch 31, § 6.


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