1192wa

    On the printed bill, delete everything after the enacting clause and insert:

"    Section 1. That chapter 13-5 be amended by adding a NEW SECTION to read:

    Each board member, fiscal agent, officer, and executive of a local service agency, school district, cooperative service unit, education service agency, nonprofit education service agency, or jointly governed education service entity that receives money from or through the state shall file quarterly with the Department of Education a disclosure that lists any contract in which the member, agent, officer, or executive has or had an interest or receives or received a direct benefit and in which any public agency or state agency as defined in § 1-24-1 also has or had an interest. The secretary of education, each member of the Board of Education, each employee of the Department of Education, or any other employee of state government shall file quarterly with the Department of Education the secretary's, member's, or employee's membership or participation in and any compensation received from a consortium or any other organization if membership or participation in that consortium or organization would include the exercise of control over any aspect of public education in the state by the consortium or organization. The disclosure under this section shall include the purpose and essential terms of the contract and the date of any authorization for the contract, if required, under § 3-23-8, or the purpose and terms of the membership or participation. The Department of Education shall compile any disclosure as it is received pursuant to this section and provide a quarterly report to members of the Legislature that includes all of the disclosures that occurred in the preceding quarter. The Department of Education shall publish a quarterly notice in at least three newspapers of general circulation in different parts of the state including the disclosures that were compiled by the department in the preceding quarter. Any member of the Legislature may submit a concern in writing regarding any disclosure under this section to the chair of the Government Operations and Audit Committee to be heard during the following Legislative Session. Any violation of the provisions of this section requiring disclosure is a Class 1 misdemeanor. The attorney general may impose a civil penalty in an amount not to exceed three times the direct benefit received under any contract by the board member, fiscal agent, officer, or executive who failed to disclose a contract pursuant to this section. Any civil penalty recovered under this section shall be paid to the state general fund.

    Section 2. That § 3-23-6 be amended to read:

    3-23-6. No board member, fiscal agent, officer, or executive of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity that receives money from or through the state may have an interest in a contract nor receive a direct benefit from a contract that to which the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity is a party to the contract during or for two years following the member's, agent's, officer's, or executive's end of service with the agency, district, unit, or entity, except as provided in § 3-23-8 or section 4 of this Act.

    Section 3. That § 3-23-8 be amended to read:

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    3-23-8. A local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity may authorize a board member, fiscal agent, officer, or executive to have an interest in a contract or derive a direct benefit from a contract if:

            (1)    The person has provided full written disclosure to the governing board of the agency, district, or unit governing board, or entity;

            (2)    The governing board has reviewed the essential terms of the transaction or contract and the person's role of the board member, fiscal agent, officer, or executive in the contract or transaction; and

            (3)    The transaction or the terms of the contract are fair, reasonable, and are not contrary to the public interest.

    No member of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity may participate in or vote upon a decision of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity relating to a matter in which the member has an interest or derives a direct benefit.

    The Any authorization given pursuant to this section shall be in writing. Any authorization given pursuant to this section and is a public record. Each authorization shall be filed with the auditor-general. The auditor-general shall compile the authorizations as they are received, provide a quarterly report to members of the Legislature that includes all of the authorizations that occurred in the preceding quarter, and present them annually for review by the Government Operations and Audit Committee. A board member, fiscal agent, officer, or executive of a local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity may comply is in compliance with this section if: the local service agency, school district, cooperative education service unit, education service agency, nonprofit education service agency, or jointly governed education service entity puts on its regular meeting agenda an inquiry for conflicts disclosure prior to the consideration of any substantive matters; the person subject to this chapter publicly discloses his or her interest in a contract, direct benefit, or other conflict with any matter on the agenda; the person is excused from discussion and consideration of such matters; the board determines the matter underlying the conflict is fair, reasonable, and not contrary to the public interest; and the disclosure is included in the minutes which that are publicly available.

    Section 4. That chapter 13-5 be amended by adding a NEW SECTION to read:

    Within the two-year period prohibiting any contract with a board member, fiscal agent, officer, or executive of a local service agency, school district, cooperative service unit, education service agency, nonprofit education service agency, or jointly governed education service entity that receives money from or through the state, the agency, district, unit, or entity may approve a former board member, fiscal agent, officer, or executive to contract with the agency, district, unit, or entity if the agency, district, unit, or entity determines that the transaction and the terms of the contract are fair, reasonable, and are in the best interests of the public. The authorization shall be in writing.

    Any approval given pursuant to this section is a public record. Each approval shall be filed with the auditor-general. The auditor-general shall compile the approvals as they are received, provide a quarterly report to members of the Legislature that includes all of the authorizations that occurred

in the preceding quarter, and present them annually for review by the Government Operations and Audit Committee.

    Section 5. That § 3-23-1 be amended to read:

    3-23-1. No elected or appointed member of a state authority, board, or commission may have an interest in any contract or derive a direct benefit from any contract with the state which that is within the jurisdiction or relates to the subject matter of the state authority, board or commission or with a political subdivision of the state if the political subdivision administers or executes similar subject matter programs as the state authority, board or commission, nor may the member have an interest in any contract or derive a direct benefit from any contract for one year two years after the end of the member's term on the authority, board, or commission except as provided in §§ 3-23-3 and 3-23-4.

    Section 6. That § 3-23-3 be amended to read:

    3-23-3. Any elected or appointed authority, board, or commission may authorize an authority, board, or commission member to have an interest in a contract or to derive a direct benefit from a contract if:

            (1)    The authority, board, or commission member has provided full written disclosure to the authority, board, or commission;

            (2)    The authority, board, or commission has reviewed the essential terms of the transaction or contract and the authority, board, or commission member's role in the contract or transaction; and

            (3)    The transaction and the terms of the contract are fair, reasonable, and not contrary to the public interest.

    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 has an interest or derives a direct benefit.

    The Any authorization given pursuant to this section shall be in writing. Any authorization given pursuant to this section and is a public record. Each authorization shall be filed with the auditor-general. The auditor-general shall compile the authorizations as they are received, provide a quarterly report to members of the Legislature that includes all of the authorizations that occurred in the preceding quarter, and present them annually for review by the Government Operations and Audit Committee. A member of an authority, board, or commission may comply is in compliance with this section if: the authority, board, or commission puts on its regular meeting agenda an inquiry for conflicts disclosure prior to the consideration of any substantive matters; the member publicly discloses his or her interest in a contract, direct benefits, or other conflict with any matter on the agenda; the member is excused from discussion and consideration of the matter; the board determines the matter underlying the conflict is fair, reasonable, and not contrary to the public interest; and the disclosure is included in the minutes which are publicly available.

    Section 7. That § 3-23-4 be amended to read:

    3-23-4. Within the one-year two-year period prohibiting any contract with an elected or appointed authority, board, or commission, the authority, board, or commission may approve a former authority, board, or commission member to contract with the elected or appointed authority, board, or commission if the authority, board, or commission determines that the transaction and the

terms of the contract are fair, reasonable, and are in the best interests of the public. The authorization shall be in writing.

    Any approval given pursuant to this section is a public record. Each approval and shall be filed with the auditor-general. The auditor-general shall compile the approvals as they are received, provide a quarterly report to members of the Legislature that includes all of the authorizations that occurred in the preceding quarter, and present them annually for review by the Government Operations and Audit Committee. "