FINAL BILL REPORT

HB 2911

FULL VETO

BYRepresentatives Nutley and Todd

Exempting school districts and associated students of school districts from certain contract prohibitions.

House Committe on State Government

Senate Committee on Education

AS PASSED LEGISLATURE

BACKGROUND:

State law prohibits a municipal officer from being directly or indirectly beneficially interested in any contract that is made under the supervision of the officer.  The municipal officers governed by this prohibition include the members of the boards of directors of school districts.  Exceptions to this rule are provided by state law.

SUMMARY:

An exemption is established to the rule that a municipal officer must not be directly or indirectly beneficially interested in a contract that is made under the supervision of the officer.  The exemption applies to a school district contract under the following circumstances:  the contract is awarded by competitive bid by the school district or by the associated students of the district;  the contract is for goods; the member having the interest discloses it in a statement filed with the county auditor; the member does not participate in any decision of the district regarding the letting of the contract; the member does not personally contact any official or employee of the district to facilitate the preparation of the contract, to promote the awarding of the contract, or to influence the manner in which it is performed; prior to becoming a member, the member had a similar contractual relationship with the district or associated students for the same kind of goods; the member held office prior to the effective date of the act; and the contract was entered into before the effective date of the act.

VOTES ON FINAL PASSAGE:

      House 90   4

      Senate    39    10 (Senate amended)

      House 91   3 (House concurred)

FULL VETO:  (See VETO MESSAGE)