Board counseled on Ethics Act and pecuniary-interest rules: disclosure, recusals, and when the whole board is barred

Lincoln County Board of Education members received detailed advice on conflict-of-interest rules at a March 6 meeting, where speakers explained differences between the state's pecuniary interest statute and the broader Ethics Act.

Attorney Howard Souffer said the pecuniary interest statute can preclude an entire board from entering contracts or paying funds when a board member has a direct or indirect financial interest. "Under the pecuniary interest statute, the board cannot enter into the arrangement," Souffer said, adding that the statute has sometimes led to board members being removed from office when it was violated.

Souffer contrasted the pecuniary-interest law with the Ethics Act, which applies more broadly to public employees and bars using an official position to benefit relatives or oneself. He gave examples discussed at the session: an immediate family member applying for a posted job, an entrepreneur seeking to use district facilities for profit, and volunteers performing construction work without insurance.

Presenters urged members to seek advice early rather than assume no conflict exists. Souffer recommended contacting the state Ethics Commission for confidential advice and, when needed, requesting a written opinion. He noted the commission posts opinions anonymously and that following a written commission opinion provides legal immunity even if the commission's conclusion is later challenged.

Board members discussed everyday scenarios (boosters, volunteers, contractors) and expressed a need to ensure employees and volunteers understand rules. Presenters emphasized the board's obligation to follow statutes and policies and recommended formal checks — for example, reviewing relationships and financial interests before approving contracts or facility use.