17B-2a-814 - Conflict of interests prohibited -- Disclosure -- Violation -- Penalty. - Utah Statutes

17B-2a-814. Conflict of interests prohibited -- Disclosure -- Violation -- Penalty.
(1) As used in this section, "relative" means a parent, spouse, child, grandparent,grandchild, great grandparent, great grandchild, or sibling of a trustee, officer, or employee.
(2) Except as provided in this section, a trustee, officer, or employee of a public transitdistrict may not be interested in any manner, directly or indirectly, in a contract or in the profitsderived from a contract:
(a) awarded by the board of trustees; or
(b) made by an officer or employee pursuant to discretionary authority vested in theofficer or employee.
(3) Notwithstanding Subsection (2), if a trustee, officer, or employee of a public transitdistrict is a stockholder, bondholder, director, or other officer or employee of a corporationcontracting with the district, the district may contract with that corporation for its general benefitunless the trustee, officer, or employee of the district owns or controls, directly or indirectly,stock or bonds in an amount greater than 5% of the total amount of outstanding stock or bonds.
(4) (a) (i) A trustee, officer, or employee of a public transit district who has, or whoserelative has, a substantial interest in a contract with, sale to, purchase from, or service to thedistrict shall disclose that interest to the board of trustees of the district in a public meeting of theboard.
(ii) The board of trustees of the district shall disclose that interest in the minutes of itsmeeting.
(b) A trustee, officer, or employee of a public transit district who has, or whose relativehas, a substantial interest in a contract with, sale to, purchase from, or service to the district maynot vote upon or otherwise participate in any manner as a trustee, officer, or employee in thecontract, sale, purchase, or service.
(5) A trustee, officer, or employee of a public transit district, in contemplation of officialaction by the trustee, officer, or employee or by the district or in reliance on information to whichthe trustee, officer, or employee has access in an official capacity and which has not been madepublic, commits misuse of official information if the trustee, officer, or employee:
(a) acquires a pecuniary interest in any property, transaction, or enterprise that may beaffected by the information or official action;
(b) speculates or wagers on the basis of the information or official action; or
(c) aids, advises, or encourages another to do so with intent to confer upon any person aspecial pecuniary benefit.
(6) Each trustee, officer, and employee who violates this section:
(a) is guilty of a class B misdemeanor; and
(b) if convicted, shall be terminated from board appointment or district employment.

Renumbered and Amended by Chapter 329, 2007 General Session