Arizona Revised Statutes §38-503 requires the disclosure of substantial interest by an employee or elected college official in any contract, sale, purchase, or service by or to the college as well as disclosure of any substantial interest in any decision of the college. If such an interest exists, the employee shall refrain from participating in the decision, contract, sale, or purchase in any manner.
A substantial interest is any nonspeculative pecuniary or proprietary interest, either direct or indirect other than a remote interest as defined in A.R.S §38-502(10). Interest refers to a situation in which you may gain or lose something as contrasted to a general sympathy or feeling.
Northland Pioneer College follows A.R.S §38-502(9) which defines relative as the spouse, child, child's child, parent, grandparent, brother or sister of the whole or half blood and their spouses and the parent, brother, sister or child of a spouse.
The Disclosure of Substantial Interest Form shall be distributed to all employees with their annual employment contract and considered valid until notified otherwise by the employee or until the expiration of twelve-months from its initial completion. Completed forms shall be kept on file in the Human Resources Office and shall be open to the public. Even if an employee has no substantial interest to disclose, the Form is still required to be completed and signed and kept on file. It is the responsibility of each person to keep the disclosure current and updated at least annually.
Any contract entered into which represents a violation of the statute is voidable at the option of the board. Any person affected by board action may commence a civil suit for the purpose of enforcing this section and the court may order appropriate relief including reasonable costs and attorney's fees to the prevailing party. In addition, criminal penalties are provided for two classes of persons. Those who intentionally or knowingly violate the statute may be guilty of a Class 6 felony. Those who recklessly or negligently violate the statute may be guilty of a Class 1 misdemeanor. A person found guilty of either violation shall forfeit public office or employment.
