3-23-8Circumstances under which local service agency, school district, or cooperative education service unit may authorize board member or others with authority to contract to derive direct benefit from contract.

A local service agency, school district, or cooperative education service unit, may authorize a person described in § 3-23-6 to derive a direct benefit from a contract if:

(1)    The person has provided full written disclosure to the agency, district, or unit governing board of all parties to the contract, the person's role in the contract, the purpose or objective of the contract, the consideration or benefit conferred or agreed to be conferred upon each party, and the duration of the contract;

(2)    The governing board finds that the terms of the contract are fair, reasonable, and not contrary to the public interest; and

(3)    Any request for authorization or governing board action are public records. The official minutes of the governing board shall include any governing board action on each request for authorization and shall be filed with the auditor-general and attorney general.

A person described in § 3-23-6 who has an interest in a contract pursuant to § 3-23-7.1 shall disclose the existence of a contract in which the person has an interest and the person's role in the contract but no governing board authorization is required for the person to have an interest in the contract. Disclosure shall also be made at the annual reorganization meeting if the contract extends into consecutive fiscal years. The interest disclosure shall be included in the official minutes of the governing board.

Any person receiving a direct benefit from a contract and requesting an authorization pursuant to § 3-23-8 shall make the request prior to entering into any contract that requires disclosure or within forty-five days after entering into the contract that requires disclosure. Any authorization by the governing board requires no further disclosure or authorization unless the contract extends into consecutive fiscal years. If the contract extends into consecutive fiscal years, disclosure shall be made annually at the annual reorganization meeting but no new authorization is required. If the entity rejects any request for authorization, the contract is voidable and subject to disgorgement pursuant to § 3-23-9 or the person may resign from the local service agency, school district, or cooperative education service unit.

No board member of a local service agency, school district, or cooperative education service unit may participate in or vote upon a decision of a local service agency, school district, or cooperative education service unit relating to a matter in which the member derives a direct benefit.

Source: SL 2016, ch 33, § 8; SL 2017, ch 31, § 14; SL 2017, ch 74, § 2.