Cut Bank School District 


THE BOARD OF TRUSTEES                                                                                                                 1512

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Conflict of Interest


A trustee may not:


1.           Engage in a substantial financial transaction for the trustee’s private business purpose, with a person whom the trustee inspects or supervises in the course of official duties.


2.           Perform an official act directly and substantially affecting, to its economic benefit, a business or other undertaking in which the trustee either has a substantial financial interest or is engaged as counsel, consultant, representative, or agent.


3.           Act as an agent or solicitor in the sale or supply of goods or services to a district.


4.           Have a pecuniary interest, directly or indirectly, in any contract made by the Board, when the trustee has more than a ten percent (10%) interest in the corporation.  A contract does not include:  1) merchandise sold to the highest bidder at public auctions; 2) investments or deposits in financial institutions that are in the business of loaning or receiving money, when such investments or deposits are made on a rotating or ratable basis among financial institutions in the community or when there is only one (1) financial institution in the community; or 3) contracts for professional services other than salaried services or for maintenance or repair services or supplies when the services or supplies are not reasonably available from other sources, if the interest of any Board member and a determination of such lack of availability are entered in the minutes of the Board meeting at which the contract is considered.


5.           Be employed in any capacity by the District, with the exception of officiating at athletic competitions under the auspices of the Montana Officials Association.


6.           Appoint to a position of trust or emolument any person related or connected by consanguinity within the fourth (4th) degree or by affinity within the second (2nd) degree.


              a.           This prohibition does not apply to the issuance of an employment contract to a person as a substitute teacher who is not employed as a substitute teacher for more than thirty (30) consecutive school days.

              b.           This prohibition does not apply to the renewal of an employment contract of a person related to a Board member, who was initially hired before the Board member assumed the trustee position.

              c.           This prohibition does not apply if trustees comply with the following requirements:  1) All trustees, except the trustee related to the person to be employed or appointed, vote to employ the related person; 2) the trustee related to the person to be employed abstains from voting; and 3) the trustees give fifteen (15) days written notice of the time and place of their intended action in a


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                            newspaper of general circulation in the county where the school is located.


Degrees of Affinity


Affinity is the legal relationship arising as the result of marriage.  Relationship by affinity terminates upon the death of one of the spouses or other dissolution of marriage, except when the marriage has resulted in issue still living.


Degrees of Consanguinity



                                                        Great Great Grandparent


                                                            3                                        5

                                          Great Grandparent            Great Great Uncle


                                        2                                      4                                        6

                            Grandparent                  Great Uncle           Child of Great Uncle


                    1                                      3                                        5                                      7

             Parent                            Uncle                     Child of GG Uncle   Grandchild of GG Uncle



Trustee/Appointing Power

                                        2                                      4                                        6                                      8

                                Brother                        1st Cousin                     2nd Cousin                     3rd Cousin


                    1                                      3                                        5                                      7

              Child                          Nephew                         1st Cousin                     2nd Cousin

                                                                                        once removed                once removed


                                        2                                      4                                        6

                             Grandchild                Grand Nephew                  1st Cousin

                                                                                                             twice removed


                                                            3                                        5

                                           Great Grandchild           Great Grand Nephew



                                                      Great Great Grandchild



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Degrees of Affinity



                                                                                             Great Grandfather-in-law





                                      1                                                                            3

                         Father-in-law                                                        Uncle-in-law


                                      1                                    2

Trustee           Spouse                       Brother-in-law

Appointing Power


                                      1                                                                            3

                           Step Child                                                        Nephew-in-law



                                                             Step Grandchild



                                                                                                Step Great Grandchild




Policy History:

Adopted on:  October 12, 2010

Reviewed on:

Revised on: