3.2.3  

  The board has a policy addressing conflict of interest for its members.

RATIONALE FOR COMPLIANCE JUDGMENT

The governing board for Nashville State Technical Community College is the Tennessee Board of Regents (TBR).  The Tennessee Board of Regents has a policy addressing conflict of interest for its members.

The composition and powers of the Tennessee Board of Regents are set forth in Tennessee Code Annotated 49-8-201 through 49-8-203  [1,2,3].   The board consists of 18 members:  12 lay citizens appointed for six-year terms by the governor, with one from each of the state's nine congressional districts and three grand divisions; one faculty member from among the system institutions appointed by the governor for a one-year term; one student from among the system institutions appointed for a one-year term by the governor; and four ex-officio members--the Governor of Tennessee, the Commissioner of Education, the Commissioner of Agriculture, and the Executive Director of the Tennessee Higher Education Commission, who is a non-voting member. 

Part IV, Section 7 of the Bylaws of the Tennessee Board of Regents addresses standards of conduct and procedures for addressing voting conflict of interest for board members [4].

Tennessee Board of Regents Policy 1:02:03:10 also addresses conflict of interest for board members by:

• Defining the general guiding principles for board members;
• Illustrating activities which could potentially constitute conflict of interest;
• Defining disclosure requirements related to conflicts of interest;
• Describing the process for disclosure evaluation and rendering of decisions;
• Describing the appeals process regarding decisions on conflict of interest [5].

This policy further cites specific federal regulations, state laws, and TBR policies related to conflict of interest of board members.  The policy also includes a copy of the Disclosure Statements which must be filed with the Secretary of the Board annually by all board members.

Section 4(d) of Tennessee Code 49-8-203 specifically states that no board member may have any financial interest in a transaction affecting the interests of any institution [3].   Tennessee Code 49-8-204 further requires the TBR to adopt a code of ethics for its board members [6].  This code of ethics is embodied in TBR Policy 1:02:03:20 [7].   Article 2, Section I of the policy defines and addresses conflicts of interest for board members, and states that “Each Regent will abide by the Board’s Conflict of Interest Policy 1:02:03:10…”.  Article 3 of the policy outlines disclosure hearing and board member removal procedures in the event of violation of the TBR conflict of interest policy. 

DOCUMENTATION

SOURCE LOCATION

[1] Tennessee Code Annotated 49-8-201

docs/TCA_49_8_201_Board_Composition.htm

[2] Tennessee Code Annotated 49-8-202

docs\TCA_49_8_202_Board_Authorization_to Hire_Chief_Executive.htm

[3] Tennessee Code Annotated 49-8-203

docs\TCA_49_8_203_Powers_and_Duties_of_Board.htm

[4] Bylaws of the Tennessee Board of Regents

docs\TBR_Policy_Appendicies_6_06_00_00_ByLaws.htm

[5] Tennessee Board of Regents Policy 1:02:03:10

docs\TBR_Governance_Policy_1_02_03_10_Conflict_of_Interest.htm

[6] Tennessee Code Annotated 49-8-204

docs\TCA_49_8_204_Code_Of_Ethics.htm

[7] Tennessee Board of Regents Policy 1:02:03:20

docs\TBR_Governance_Policy_1_02_03_20_Board_Member_Code_of_Ethics.htm