Conflict of Interest Policy

JSCC Policy Number: 1.02.03.10

TBR Policy Reference: 4:02:10:00, 4:02:20:00, 5:01:05:00, 5:01:06:00

TBR Guideline Reference: Not Applicable

Approved By: President's Cabinet

Original Date Effective: 2013-10-13

Last Modified: 2023-05-19

Responsible Office: Financial and Administrative Affairs

Purpose

This policy is intended to define the general principles which should guide the actions of employees of Jackson State Community College (hereinafter referenced as “institution”); offer illustrations of activities that potentially constitute a conflict of interest; make employees aware of disclosure requirements related to conflicts of interest; describe the process by which those disclosures shall be evaluated and decisions rendered; and describe the appeals process regarding such decisions.

Policy

I. Definitions

Conflict of interest - occurs when the personal interests, financial or otherwise, of a person who owes a duty to the institution (all employees) actually or potentially diverge with the person’s professional obligations to and the best interests of the TBR and its institutions.

Conflict of commitment - occurs when the personal or other non-work related activities of an employee of the institution impair the ability of that employee to meet their commitments of time and energy to the Institution.

Family member - includes the spouse and children (both dependent and non-dependent) of a person covered by this policy.

Immediate family – relating to Section VI, means spouse, dependent children or stepchildren, or relatives related by blood or marriage.

II. Objectives of the Conflicts of Interest Policy

All employees of the institution serve the interests of the State of Tennessee and its citizens and have a duty to avoid activities and situations that put personal interests before the professional obligations they owe to the state and its citizens.

III. Pertinent Federal Regulations, State Laws, and TBR Policies

A. The following lists are intended to indicate sources of information that may provide additional guidance regarding conflict of interest situations. This policy is intended to be consistent with all pertinent Federal and State laws, regulations, and policies and with other TBR policies.

B. To the extent conflicts arise, federal and state laws, regulations, and policies shall take precedence.

C. The lists are not intended to be exhaustive, and other laws, regulations, and policies may be implicated in a given conflict of interest situation.

1. Federal Regulations

i. The National Science Foundation (NSF) and the Department of Health and Human Services (HHS), acting through the Public Health Service (PHS) (which includes the National Institutes of Health (NIH)), have promulgated policies and regulations regarding conflicts of interest and disclosure of financial interests by investigators who receive funding from these federal agencies.

ii. Section 510 of NSF Publication 95-26, the Grant Policy Manual, contains the NSF policy regarding researcher conflicts of interest. The PHS regulations, upon which the NSF policy is modeled, are contained in the Code of Federal Regulations at 42 CFR 50.601 et seq. and 45 CFR 94.1 et seq.

iii. Other federal agencies (e.g., the Veterans’ Administration or the Food and Drug Administration) may require as a condition to a contract, disclosure, and management of conflicts of interest (see, for example, Veterans’ Administration).

2. Tennessee State Law

i. Various statutes contained in the Tennessee Code Annotated (T.C.A.) are pertinent to the issue of conflicts of interest within the TBR System, including:

a. T.C.A. § 8-50-501, Disclosure statements of conflict of interests by certain public officials
b. T.C.A. § 12-2-208, Purchase by officer unlawful - penalty for violation
c. T.C.A. § 12-2-415, State surplus property disposition regulationPage 3 of 10 Conflict of Interest Policy
d. T.C.A. § 12-2-416, Violation of § (12-2-415)
e. T.C.A. § 12-2-417, State employee violation - punishment
f. T.C.A. § 12-4-106, Prohibition against receiving rebates, gifts, money or anything of value – Conflict of interest
g. T.C.A. § 12-4-101, Personal interest of officers prohibited
h. T.C.A. § 12-4-102, Penalty for unlawful interest
i. T.C.A. § 12-4-103, Bidding by state employees prohibited
j. T.C.A. § 12-4-104, Penalty for unlawful transactions
k. T.C.A. § 49-8-203(d), Powers and duties (of the Board of Regents)

ii. It is significant to note that violating some statutes may lead to criminal penalties (e.g., violation of T.C.A. § 12-4-103 is a Class E felony

3. TBR Policies and Guidelines

i. The following TBR policies and guidelines deal with issues that implicate conflict
of interest situations:

a. TBR Policy (4:02:10:00), Purchasing Policy and Procedures
b. TBR Policy (4:02:20:00), Disposal of Surplus Personal Property
c. TBR Policy (5:01:05:00), Outside Employment
d. TBR Policy (5:01:06:00), Intellectual Property
e. TBR Guideline (P:090), Nepotism

IV. Applicability

This policy shall apply to all persons employed (either as full-time, part-time or temporary employees) by the institution.

V. General Principles

A. It is the institution’s policy that employees should avoid external commitments which significantly interfere with the employee’s duties to the institution (conflicts of commitment). See also TBR Policy 5:01:05:00, Outside Employment. Disclosures of conflicts of commitment shall be made as required under Policy 5:01:05:00 and evaluated as indicated in that policy.

B. It is the further policy of the institution that employees should avoid situations where the employee’s self-interests diverge from the institution's best interests (conflict of interest).

C. The mere existence of a potential or actual conflict of interest does not mean such conflict must necessarily be eliminated.

D. Where the potential detriment to the institution is minor and inconsequential, and the conflict does not indicate a violation of federal or state law, regulation, or policy, those persons charged with evaluating disclosures should allow the activity to proceed without interference.

E. For those situations which do not implicate federal or state law, regulation, or policy, the standard by which it should be determined whether a conflict of interest should be managed, reduced, or eliminated is whether that conflict would appear to a reasonable person to call into question the integrity or judgment of the affected employee.

VI. Situations and Activities Creating a Conflict of Interest

A. In the following situations and activities, at least the appearance, and possibly the actuality, of an employee allowing his or her personal interests, and not the best interests of the TBR and its constituent institutions, to affect that employee’s judgments. This list is illustrative and not exhaustive.

B. Self-dealing. Situations in which an employee can appear to influence or actually influence an institutionally-related decision from which that person or a member of that person’s family stands to realize a personal financial benefit are self-dealing and a conflict of interest. Examples of self-dealing activities are numerous and include, but may not be limited to, those listed as follows:

1. Purchase of state-owned property by an employee absent fair and open bidding.

i. It is unlawful for any state employee to purchase surplus state-owned property absent a fair and open bidding process (see T.C.A. § 12-2-208 and T.C.A. § 12-2-417).

ii. Such purchases are also prohibited under TBR Policy 4:02:20:00.

2. Institutional purchases from businesses where an employee or family member has a financial interest.

i. T.C.A. § 12-4-103 declares that it is unlawful for any state official or employee to “bid on, sell, or offer for sale, any merchandise, equipment or material, or similar commodity, to the state of Tennessee” or “to have any interest in the selling of the same to the state” during that person’s term of employment and for six months thereafter.

ii. Disclosure of any such transaction by an employee or member of the employee’s family or by a business in which an employee or member of the employee’s family has any significant (more than 4%) ownership interest or for which an employee or employee family member serves as an officer is required by this policy.

iii. T.C.A. § 12-4-106(b)(2013) declares that it is a conflict of interest for any person or any company with whom such person is an officer, a director, or an equity owner of greater than 1% interest to bid on any public contract for products or services for a governmental entity if such person or “immediate family” of such person is a member of a board or commission having responsibility for letting or approving the such contract.

iv. For purposes of this section only, “immediate family” means spouse, dependent children or stepchildren, or relatives related by blood or marriage

3. Use of educational materials from which a faculty member derives financial benefit in that faculty member’s teaching activities.

i. Any faculty member who wishes to use, in his or her teaching activities, educational materials (e.g. a textbook) that he or she has authored or in which he or she otherwise stands to benefit financially from such use, a conflict of interest disclosure shall be made per Section VII of this policy.

ii. Whether the use of such materials shall be permitted shall be evaluated either under the terms of institutional policy or in the absence of such policy, by the review committee established under Section IX of this policy.

iii. Such evaluation shall include consideration of suitable substitute materials and ensure that the needs of students are best served by the use of the materials in which the faculty member has an interest.

4. Acceptance of Gifts, Gratuities, or Favors

i. No employee shall knowingly solicit or accept, directly or indirectly, on behalf of himself or herself or any member of the employee’s household, for personal use or consumption, any gift, including but not limited to any gratuity, service, favor, food, entertainment, lodging, transportation, loan, loan guarantee or any other thing of monetary value, from any person or entity that:

a. Has, or is seeking to obtain, contractual or other business or financial relations with the Institution in which the individual is employed; or

b. Has interests that may be substantially affected by the performance or nonperformance of the employee.

5. Exceptions

i. The prohibition on accepting gifts, in Section VI.B.4, does not apply to:

a. A gift given by a member of the employee’s immediate family or by an individual if the gift is given for a non-business purpose and is motivated by a close personal friendship and not by the position of the employee;

b. Informational materials include books, articles, periodicals, other written materials, audiotapes, videotapes, or other forms of communication.

c. Sample merchandise, promotional items, and appreciation tokens, if they are routinely given to customers, suppliers, or potential customers or suppliers in the ordinary course of business, including items distributed at tradeshows and professional meetings where vendors display and promote their services and products;

d. Food, refreshments, foodstuffs, entertainment, or beverages provided as part of a meal or other event, including tradeshows and professional meetings, if the value of such items does not exceed fifty dollars ($50.00) per occasion; provided further, that the value of a gift made pursuant to this subsection may not be reduced below the monetary limit by dividing the cost of the gift among two or more persons or entities identified in Section VI.B.4.

e. There may be circumstances where refusal or reimbursement of a gift (such as a lunch or dinner) may be awkward and contrary to the larger interests of the Institution. In such circumstances, the employee is to use his or her best judgment and disclose the gift, including a description, estimated value, the person or entity providing the gift, and any explanation necessary within fourteen (14) days to his or her immediate supervisor;

f. Food, refreshments, meals, foodstuffs, entertainment, beverages or intrastate travel expenses that are provided in connection with an event where the employee is a speaker or part of a panel discussion at a scheduled meeting of an established or recognized membership organization that has regular meetings;

g. Participation in an institution or foundation fundraising and public relations activities, i.e. golf tournaments and banquets, where persons or entities identified in Section VI.B.4 provide sponsorships; and

h. Loans from established financial institutions made in the ordinary course of business on usual and customary terms, so long as there are no guarantees or collateral provided by any person described in Section VI.B.4

6. Inappropriate use of students or support staff

i. Employees shall ensure that the activities of students or support staff are not exploited for the benefit of any external activity of an employee.

ii. Before assigning any non-institutionally related task (which is more than incidental in nature) to a student or member of the support staff, an employee shall disclose such proposed activities and obtain approval.

7. Inappropriate use of state-owned resources

Employees may not make significant use of state-owned facilities, equipment, materials, or other resources not otherwise available to the public in activities unrelated to the institution and intended for personal benefit without prior disclosure and approval.

8. Failure to disclose intellectual property

i. TBR Policy 5:01:06:00 governs the rights and responsibilities of persons affiliated with the TBR and its Institutions regarding intellectual property developed during the term of their affiliation with the TBR.

ii. Among the responsibilities enumerated in the policy is that of disclosure of inventions and those copyrightable works which may be reasonably expected to have a commercial value that they have jointly or solely developed or created during their affiliation with the TBR and its institutions.

VII. General Disclosure Requirements

A. Referencing TBR Policy 1:08:01:00 persons to whom this policy applies who believe that a conflict of interest may exist either personally or concerning another person covered by this policy shall make a written disclosure of the facts and circumstances surrounding the situation. No particular format is required, but the disclosure should adequately describe the pertinent facts and circumstances. Disclosures are submitted to the President’s Office for review by the Conflict of Interest Disclosure Review Committee.

A. Disclosures made by the president shall be submitted to Tennessee Ethics Commission.

B. Grant Investigator – Investigator is defined as the principal investigator, co-principal investigators, and any other person responsible for designing, conducting, or reporting research or educational activities funded or proposed for funding.

Investigators seeking funding from federal, state and/or local grants are required to disclose all significant financial interests: 1.) that would reasonably appear to be affected by the scope of the grant; 2.) in entities whose financial interests would reasonably appear to be affected by such activities. Such disclosures must be submitted before the proposal is submitted to the funding agency. Further, such disclosures must be updated during the award period, either annually or as new reportable financial interests arise. To facilitate such disclosures, the Jackson State Community College Disclosure of Interest Form will be used for local, state, and federal grants. Investigators seeking funding from federal grants from the Public Health Services (including the National Institutes of Health) or the National Science Foundation must also complete the Jackson State Community College Disclosure of Interest for Federal Grants.

Disclosures are submitted to the President’s Office for review by the Conflict of Interest Disclosure Review Committee. Disclosure of financial interests made under this special disclosure requirement does not eliminate the responsibility for making disclosures under general disclosures when specific conflict of interest situations arise.

C. JSCC Administration – The Vice Presidents, Deans, Business Services Director, Directors of Workforce, and Small Business Development Director must file a Jackson State Community College Conflict of Interest Disclosure Form within one month of their initial appointment and annually after that in January. Disclosures are submitted to the President’s Office for review by the Conflict of Interest Disclosure Review Committee.

President and Athletic Department – See section VIII.

VIII. Special Disclosure Requirements for Regents and Certain TBR Employees

A. The presidents of all community colleges, coaches, assistant coaches, and employees of athletic departments who are exempt from the provisions of the Fair Labor Standards Act are required to file a financial disclosure form within one month of their initial appointment and annually after that in January.

B. Disclosure of financial interests under this section does not eliminate the responsibility for disclosures under Section VII when a specific conflict of interest situation arises.

i. The president of the institution is required by T. C. A. § 8-50-501(a)(15) to file an online Statement of Disclosure of Interests Form with the Tennessee Ethics Commission at https://apps.tn.gov/conflict/, Form ss-8005 (State Officials). The form is also available on the TBR website. For the president, this statement of disclosure will meet the requirements of this policy.

ii. Coaches, assistant coaches, exempt employees of the athletic department, and other institutional personnel required to complete a disclosure form shall also use the Tennessee Ethics Commission Form ss-8005, Statement of Disclosure of Interest Form, and accompanying instructions. The form shall be submitted to the institution’s human resource officer or other person designated by the institution’s president.

IX. Review of Disclosures

A. Disclosures made under Section VII of this policy by the president shall be evaluated by the TBR or a duly appointed committee thereof.

B. The college shall establish a Conflict of Interest Disclosure Review Committee to receive and evaluate conflict of interest disclosures made under Sections VI, VII, and VIII herein per the following guidelines.

A. Membership - Disclosures by an employee of the college shall be evaluated by a committee composed of the Vice President for Financial and Administrative Affairs, Human Resource Coordinator, Compliance & Risk Officer (serves as chairperson), Executive Director Workforce, Shared Services Liaison, Sponsored Programs Officer, and a faculty member appointed by the President.

B. Duration of Membership – Committee members shall serve a two-year term and may serve multiple consecutive terms at the President’s discretion.

C. Meetings – The Committee shall meet as frequently as necessary to conduct its business at least once per academic year. The Committee chair shall call the meetings and ensure committee guidelines are followed. The chair will confirm that meeting minutes are taken accurately and minimally reflect the date and time of the meeting, members present, members absent, issues discussed, and actions taken by the Committee. Approved minutes and records generated by the Committee should be provided to the Compliance and Risk Office and kept by campus policy.

D. Duties – As described by TBR Policy 1:03:03:10, the committee shall evaluate conflict of interest disclosures and determine what actions may be required to manage, reduce or eliminate conflicts of interest.

Following the evaluation of the disclosure, the committee shall render a decision regarding the issue(s) presented by the disclosure.

Any disclosure which indicates an actual violation of law shall be forwarded to the president along with the committee’s findings.

C. Persons potentially committing a conflict of interest violation under consideration by a conflict of interest review committee shall receive notice of the committee’s evaluation and be allowed to appear before that committee.

X. Sanctions

Failure to observe restrictions imposed due to review of a conflict of interest disclosure or a knowing failure to disclose a conflict of interest may result in disciplinary proceedings under TBR and institutional policy.

XI. Appeals

Decisions made by the campus Conflict of Interest Disclosure Review committee may be appealed to the president in writing within ten (10) working days, absent good cause, of the receipt of the Committee’s determination. The President will issue a written response to the appeal as promptly as possible. The decision of the president shall be final and binding.