PACT Charter School

Original Creation Date: June 2015
Last Approved By: PACT Charter School Board of Directors
Last Approved Date: March 2, 2023
Year Reviewed: 2022-2023

PURPOSE

The purpose of this policy is to ensure members of elected and appointed committed not engage in actions that create a conflict of interest.

POLICY STATEMENT

The committees of PACT Charter School are committed to full compliance with the applicable provisions of state law.

DEFINITIONS

1.  “Committees” means the duly appointed or elected committee members of PACT Charter School
2.  “Control” means the ability to affect a person's management, operations, or policy actions or decisions.
3.  “Affiliate” means a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with another person.
4.  “Person” means an individual or entity of any kind.
5.  “Immediate Family” means an individual whose relationship by blood, marriage, adoption, or partnering is no more remote than the first cousin.
6.  “Related Party” means an affiliate or immediate relative of the other party in question, an affiliate of an immediate relative, or an immediate relative of an affiliate.

LIMITATIONS OF BOARD MEMBERSHIP

1. An individual is prohibited from serving as a School Board of Directors member if:
   
   
• The individual, an immediate family member, or the individual's partner;
• Is a full or part owner or principal with;
• A for-profit, or nonprofit entity, or independent contractor;
• With whom the School Board of Directors contracts, directly or indirectly, for professional services, goods, or facilities.
  
  
2. An individual is prohibited from serving as a School Board of Director if an immediate family member is an employee of the school.
   
   
3. Violations
   
   
• Contract Voided. A violation of this policy renders a contract voidable at the option of the Commissioner of Education or the PACT School Board of Directors.
• Personal Liability. A PACT School Board of Directors member who violates this prohibition is individually liable to the school for any damage caused by the violation.
  
  
4. Any employee, agent, or School Board of Director of PACT Charter School’s authorizer who participates in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or non-renewal process or decision is ineligible to serve on the PACT School Board of Directors.

LIMITATION ON CONTRACT ADMINISTRATION

1. No Board member, employee, officer, or agent of PACT Charter School shall participate in selecting, awarding, or administering a contract if a conflict of interest exists.
   
   
2. A conflict exists when any of the following individuals or an organization employing one of these individuals has a financial interest in an entity with which the school is contracting:
   
   
• A School Board of Director, employee, officer, or agent of PACT Charter School;
• The immediate family of the School Board of Director, employee, officer, or agent; or
• The partner of the School Board of Director, employee, officer, or agent.
  
  
3. A violation of this paragraph renders the contract void.
   
   
4. The conflict of interest provisions under this policy do not apply to compensation paid to a licensed teacher employed by PACT Charter School who also serves as a School Board of Directors member.

LIMITATIONS ON LEASES AND OTHER CONTRACTS

1. Contracts with Authorizer. PACT Charter School will disclose any potential contract, lease, or service purchase from its authorizer to the Commissioner of Education.
   
   
2. PACT Charter School will accept any such contract only through an open bidding process, properly documented, and the contract must be a separate contract from the PACT Charter School contract. PACT Charter School will not enter into a contract with its authorizer to provide management and financial services for the school without documenting that it received at least two competitive bids.
   
   
3. Leases of Property. PACT Charter School will not enter a lease of real property with a related party unless the lessor is a nonprofit corporation under Chapter 317A or a cooperative under Chapter 308A. The lease cost is reasonably based on current market values.

Legal References:    

Minn. Stat. §124E.06, subd. 1(a) (Charter School Law–Conflict of Interest)

Minn. Stat. §124E.06 (Charter School Law– Formation of School)

Minn. Stat. §124E.10, subd. 4(b). (Charter School Law-Related Party Lease Costs)

Minn. Stat. §317A (Non-Profit Law)