2.25 Personnel Office; Ethics Policy for the Board of Regents: Midwestern State University

2.25
Personnel Office
ETHICS POLICY FOR THE BOARD OF REGENTS OF MIDWESTERN STATE UNIVERSITY
Date Adopted/Most Recent Revision: 8/3/01

Introduction: It is of the highest importance that the people of the State of Texas have complete confidence in the integrity of their public servants. This need is especially critical in the area of state-supported higher education. The responsibility for education and training the future leaders of the state and nation carries with it the duty to adhere to the highest ethical standards and principles. It is for this reason that these standards of conduct and ethical principles and the accompanying guidelines are promulgated by the Board of Regents of Midwestern State University (MSU). In the event of a conflict between the terms of this policy and any existing policy, this policy will control. If a topic has also been addressed in other policy statements or manuals of MSU, the procedures and statements contained therein are hereby affirmed and made a part hereof for all purposes.
Standards of Conduct: In accordance with the standards for public servants established by Texas common law and by statutory provisions, the Board of Regents of Midwestern State University hereby adopts these standards of conduct for its members. A member of the Board of Regents should not:

Accept or solicit any gift, favor, or service that might reasonably tend to influence the Regent in the discharge of official duties or that the Regent knows or should know is being offered with the intent to influence the Regent's official conduct.

Accept employment or engage in a business or professional activity that the Regent might reasonably expect would require or induce him or her to disclose confidential information acquired by reason of his or her official position.

Accept other appointments or any employment or compensation that could reasonably be expected to impair the Regent's independence of judgment in the performance of official duties.

Make personal investments that could reasonably be expected to create a substantial conflict between the Regent's private interest and the public interest.

Intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised his or her official powers or performed official duties in favor of another.
Conflicts of Interest: It is the policy of the State of Texas that state officers may not have direct or indirect interests, including financial and other interests, engage in business transactions or professional activities, or incur any obligation of any nature that is in substantial conflict with the proper discharge of the officer's duties in the public interest. In order to implement this policy and strengthen the faith and confidence of the people of Texas in the integrity of those persons serving on the Board of Regents of Midwestern State University, the Board adopts the following policies:

Ethics Commission Financial Disclosure Statements
Members of the Board of Regents must file a financial statement with the Texas Ethics Commission annually. Forms prescribed by the commission shall be utilized.

Contracts Prohibited
Except as provided in section 3 below. MSU may not enter into a contract in which a member of the Board of Regents has a direct or indirect pecuniary interest. A pecuniary interest owned by a member's spouse is considered to be an "indirect pecuniary interest."

Recusal Permitted Only for Certain Types of Contracts Having Pecuniary Interests
If a Regent is a stockholder or director of a corporation seeking to enter into a contract with MSU, and the Regent owns or has a beneficial interest in no more than five (5) percent of the corporation's outstanding capital stock, the contract may be executed so long as it is an affiliation agreement, license (including a license of intellectual property), or sponsored research agreement, or it is awarded by competitive bidding or competitive sealed proposals. An interest owned by the Regent's spouse is considered to be a "beneficial interest." The affected Regent must disclose such interest in public meeting of the Board of Regents and refrain from voting on the contract or transaction. Any such contract or transaction requiring Board approval must be approved by an affirmative majority of the Board members voting on the contract or transaction.

Regent Disclosure of Personal or Private Interest
A member of the Board who has a personal or private interest in a measure, proposal, or decision pending before the Board of Regents, other than a contract in which a Regent has a pecuniary interest, shall disclose such interest in a public meeting of the Board, and such disclosure shall be entered in the minutes of the Board. The Board may consider such measure, proposal or decision, but any member having such an interest shall not vote or otherwise participate in such deliberation or action of the Board. This procedure may not be utilized for contracts in which a member has a pecuniary interest.

Potential Conflict of Interest of Regent
As soon as possible after becoming aware of any potential conflict of interest a Regent shall disclose such fact and any other relevant information to the appropriate committee of the Board.

Contracts with Non-profit Corporations
The Board is not precluded from entering into contracts or other transactions with nonprofit corporations merely because a Regent also serves on the board of or is a member of the nonprofit corporation. Other factors and interest, such as pecuniary or personal interests, may require disclosure and recusal, as described above.

Disclosure of Interest in Property to be Acquired
As officers of the government, Regents are required to disclose any legal or equitable interest in property that is to be acquired with public funds. Such disclosure shall be made by filing an affidavit containing specific information as required by statute. The affidavit must be filed with the county clerk of the county in which the individual resides and the county clerk of each county in which the property is located. In addition, a copy of the affidavit should be sent to the President and the other members of the Board of Regents. Such filing must be completed within ten days before the date on which the property is to be acquired by purchase or condemnation. "Public funds" includes only funds collected by or through a government.
Ethics Commission Financial Disclosure Statements: Members of the Board of Regents must file a financial statement with the Texas Ethics Commission annually. Forms prescribed by the commission shall be utilized.
Contracts Prohibited: Except as provided in section 3 below. MSU may not enter into a contract in which a member of the Board of Regents has a direct or indirect pecuniary interest. A pecuniary interest owned by a member's spouse is considered to be an "indirect pecuniary interest."
Recusal Permitted Only for Certain Types of Contracts Having Pecuniary Interests: If a Regent is a stockholder or director of a corporation seeking to enter into a contract with MSU, and the Regent owns or has a beneficial interest in no more than five (5) percent of the corporation's outstanding capital stock, the contract may be executed so long as it is an affiliation agreement, license (including a license of intellectual property), or sponsored research agreement, or it is awarded by competitive bidding or competitive sealed proposals. An interest owned by the Regent's spouse is considered to be a "beneficial interest." The affected Regent must disclose such interest in public meeting of the Board of Regents and refrain from voting on the contract or transaction. Any such contract or transaction requiring Board approval must be approved by an affirmative majority of the Board members voting on the contract or transaction.
Regent Disclosure of Personal or Private Interest: A member of the Board who has a personal or private interest in a measure, proposal, or decision pending before the Board of Regents, other than a contract in which a Regent has a pecuniary interest, shall disclose such interest in a public meeting of the Board, and such disclosure shall be entered in the minutes of the Board. The Board may consider such measure, proposal or decision, but any member having such an interest shall not vote or otherwise participate in such deliberation or action of the Board. This procedure may not be utilized for contracts in which a member has a pecuniary interest.
Potential Conflict of Interest of Regent: As soon as possible after becoming aware of any potential conflict of interest a Regent shall disclose such fact and any other relevant information to the appropriate committee of the Board.
Contracts with Non-profit Corporations: The Board is not precluded from entering into contracts or other transactions with nonprofit corporations merely because a Regent also serves on the board of or is a member of the nonprofit corporation. Other factors and interest, such as pecuniary or personal interests, may require disclosure and recusal, as described above.
Disclosure of Interest in Property to be Acquired: As officers of the government, Regents are required to disclose any legal or equitable interest in property that is to be acquired with public funds. Such disclosure shall be made by filing an affidavit containing specific information as required by statute. The affidavit must be filed with the county clerk of the county in which the individual resides and the county clerk of each county in which the property is located. In addition, a copy of the affidavit should be sent to the President and the other members of the Board of Regents. Such filing must be completed within ten days before the date on which the property is to be acquired by purchase or condemnation. "Public funds" includes only funds collected by or through a government.
Travel: Detailed MSU policies regarding travel regulations may be found in sections 2-15 through 2-18 of the MSU Handbook of Fiscal Regulations and Procedures Manual, or by contacting the MSU Business Office.

Transportation, Meals, and Lodging
Members of the Board of Regents are entitled to receive the following when traveling to conduct official business.

Reimbursement of actual amounts expended for meals and lodging, excluding unallowable items as defined by law, with actual receipts provided;

Reimbursement for transportation and incidental expenses at rates specified in the Appropriations Act for state employees.

"Official Business" for Purpose of Travel
To qualify for travel reimbursements and use of MSU vehicles, the purpose of a trip must be "state business" or "official business" of MSU. State or official business is the accomplishment of a governmental function directly entrusted to MSU or one of its components, including the reasonable necessary means and methods to accomplish that function.

Improper Travel Reimbursement
When a Regent engages in travel for which compensation is to be received from any source other than MSU funds, he or she shall not submit a claim under the provisions of the MSU travel regulations. A Regent who received an overpayment for a travel expense shall reimburse MSU for the overpayment.

Travel Bonus (Frequent Flyer) Awards
Members of the Board of Regents who earn credit with airlines, hotels, car rental companies, etc., for official travel are not required to account for such credit or to use such for official travel only.

State Credit Cards
Members of the Board of Regents may not use state credit cards for personal expenses. State credit cards may only be used for legitimate MSU business expenses. Payment of charges on individual cards is the sole responsibility of the individual Regent. MSU shall not be responsible for the charges, regardless of the types of charges. Regents may use state credit cards to charge for items that, while they qualify as official business, are not fully reimbursable under state and/or MSU guidelines for reimbursement.

Official Travel by Spouses and Relatives of Regents
Spouses and other relatives of Regents may qualify to have travel expenses paid by MSU if their presence at a function or on a trip is for an official purpose benefitting MSU and/or the State of Texas. In making a determination of whether the presence of a spouse or relative is for an official purpose, the factors to be considered are the nature and duties of the Regent's office, the traditional role, if any of the spouse or relative, the purpose of the particular trip, and the spouse or relative's connection with that purpose. Requests for reimbursement of expenses or for direct payment of travel expenses for such persons must be approved in advance by the Chairperson of the Finance and Audit Committee of the Board of Regents.

Foreign Travel
As provided by Article IX, Section 5.09(i), General Appropriations Act, 77th Texas Legislature, a request by a Regent for travel related to official State business outside of the United States, except for Canada, Mexico and U.S. possessions, must be approved in advance by the President and the Chairperson of the Board of Regents if the source of funding is money other than gift funds or contracts and grants.
Transportation, Meals, and Lodging: Members of the Board of Regents are entitled to receive the following when traveling to conduct official business.

Reimbursement of actual amounts expended for meals and lodging, excluding unallowable items as defined by law, with actual receipts provided;

Reimbursement for transportation and incidental expenses at rates specified in the Appropriations Act for state employees.
"Official Business" for Purpose of Travel: To qualify for travel reimbursements and use of MSU vehicles, the purpose of a trip must be "state business" or "official business" of MSU. State or official business is the accomplishment of a governmental function directly entrusted to MSU or one of its components, including the reasonable necessary means and methods to accomplish that function.
Improper Travel Reimbursement: When a Regent engages in travel for which compensation is to be received from any source other than MSU funds, he or she shall not submit a claim under the provisions of the MSU travel regulations. A Regent who received an overpayment for a travel expense shall reimburse MSU for the overpayment.
Travel Bonus (Frequent Flyer) Awards: Members of the Board of Regents who earn credit with airlines, hotels, car rental companies, etc., for official travel are not required to account for such credit or to use such for official travel only.
State Credit Cards: Members of the Board of Regents may not use state credit cards for personal expenses. State credit cards may only be used for legitimate MSU business expenses. Payment of charges on individual cards is the sole responsibility of the individual Regent. MSU shall not be responsible for the charges, regardless of the types of charges. Regents may use state credit cards to charge for items that, while they qualify as official business, are not fully reimbursable under state and/or MSU guidelines for reimbursement.
Official Travel by Spouses and Relatives of Regents: Spouses and other relatives of Regents may qualify to have travel expenses paid by MSU if their presence at a function or on a trip is for an official purpose benefitting MSU and/or the State of Texas. In making a determination of whether the presence of a spouse or relative is for an official purpose, the factors to be considered are the nature and duties of the Regent's office, the traditional role, if any of the spouse or relative, the purpose of the particular trip, and the spouse or relative's connection with that purpose. Requests for reimbursement of expenses or for direct payment of travel expenses for such persons must be approved in advance by the Chairperson of the Finance and Audit Committee of the Board of Regents.
Foreign Travel: As provided by Article IX, Section 5.09(i), General Appropriations Act, 77th Texas Legislature, a request by a Regent for travel related to official State business outside of the United States, except for Canada, Mexico and U.S. possessions, must be approved in advance by the President and the Chairperson of the Board of Regents if the source of funding is money other than gift funds or contracts and grants.
Benefits, Gifts, and Honoraria: A "benefit" is anything reasonably regarded as pecuniary gain or pecuniary advantage, including benefit to any other person in whose welfare the Regent has a direct or substantial interest.

Bribery
No member of the Board of Regents may solicit, offer, or accept any benefit in exchange for his or her decision, opnion, recommendation, vote, or other exercise of official power or discretion. A benefit that is otherwise allowed by MSU policy is nevertheless prohibited if it is offered in exchange for official action, as described above.

Prohibited Benefits
As a public servant who exercise discretion in connection with contracts, purchases, payments, claims, and other pecuniary transactions of government, a member of the Board of Regents may not solicit, accept, or agree to accept any benefit from any person the Regent knows is interested in or is likely to become interested in any contract, purchase, payment, claim, or transaction involving the Regent's discretion. This prohibition does not apply to:

Gifts or other benefits conferred on account of kinship or a personal, professional, or business relationship independent of a Regent's status as a member of the Board;

A fee prescribed by law to be received by a Regent or any other benefit to which he or she is lawfully entitled or for which he or she gives legitimate consideration in a capacity other than as a member of the Board;

A gift, award, or memento that is received from a lobbyist who is required to make reports under Chapter 305 of the Government Code; and

Items having a value of less than $50, not including cash or negotiable instruments.

A Regent who receives an unsolicited benefit that he or she is prohibited from accepting by law may donate the benefit to a governmental entity that has the authority to accept the gift or may donate the benefit to a recognized tax-exempt charitable organization formed for educational, religious, or scientific purposes.

Food, Lodging, Transportation, and Entertainment Received as a Guest
A Board member may accept food, lodging, transportation, or entertainment from persons or entities he or she knows or reasonably should know are interested in or likely to become interested in a contract, purchase, payment, claim, decision, or transaction involving the exercise of the Board's discretion only if the Board member is a "guest" as defined by Texas law. A Regent is a "guest" if the person or a representative of the entity providing the food, lodging, transportation, or entertainment is present at the time the food, lodging, transportation, or entertainment is received or enjoyed by the Regent. Members of the Board are required to report any such benefits valued at over $250 on their annual disclosure statements filed with the Texas Ethics Commission.

Gift Items
Members of the Board shall disclose to the Finance and Audit Committee of the Board of Regents any gift received in the course of official business having a value of more than $50.

From Friends, Relatives, and Associates
Members of the Board may accept benefits from personal friends, relatives, or business associates with whom they have a relationships independent of their official status, so long as the benefit is not offered in exchange for official action or decision.

Awards
A Regent may accept plaques and similar recognition awards.

Honoraria
A Regent may not solicit, accept, or agree to accept an honorarium in consideration for services he or she would not have been asked to provide but for his or her official position or duties. This prohibition includes a request for or acceptance of a payment made to a third party if made in exchange for such services. However, he or she may accept the direct provision of or reimbursement for expenses for transportation and lodging incurred in connection with a speaking engagement at a conference or similar event. Meals provided as part of the event or reimbursement for actual expenses for meals may also be accepted. Participation by a Regent must be more than merely perfunctory.
Bribery: No member of the Board of Regents may solicit, offer, or accept any benefit in exchange for his or her decision, opnion, recommendation, vote, or other exercise of official power or discretion. A benefit that is otherwise allowed by MSU policy is nevertheless prohibited if it is offered in exchange for official action, as described above.
Prohibited Benefits: As a public servant who exercise discretion in connection with contracts, purchases, payments, claims, and other pecuniary transactions of government, a member of the Board of Regents may not solicit, accept, or agree to accept any benefit from any person the Regent knows is interested in or is likely to become interested in any contract, purchase, payment, claim, or transaction involving the Regent's discretion. This prohibition does not apply to:

Gifts or other benefits conferred on account of kinship or a personal, professional, or business relationship independent of a Regent's status as a member of the Board;

A fee prescribed by law to be received by a Regent or any other benefit to which he or she is lawfully entitled or for which he or she gives legitimate consideration in a capacity other than as a member of the Board;

A gift, award, or memento that is received from a lobbyist who is required to make reports under Chapter 305 of the Government Code; and

Items having a value of less than $50, not including cash or negotiable instruments.

A Regent who receives an unsolicited benefit that he or she is prohibited from accepting by law may donate the benefit to a governmental entity that has the authority to accept the gift or may donate the benefit to a recognized tax-exempt charitable organization formed for educational, religious, or scientific purposes.
Food, Lodging, Transportation, and Entertainment Received as a Guest: A Board member may accept food, lodging, transportation, or entertainment from persons or entities he or she knows or reasonably should know are interested in or likely to become interested in a contract, purchase, payment, claim, decision, or transaction involving the exercise of the Board's discretion only if the Board member is a "guest" as defined by Texas law. A Regent is a "guest" if the person or a representative of the entity providing the food, lodging, transportation, or entertainment is present at the time the food, lodging, transportation, or entertainment is received or enjoyed by the Regent. Members of the Board are required to report any such benefits valued at over $250 on their annual disclosure statements filed with the Texas Ethics Commission.
Gift Items: Members of the Board shall disclose to the Finance and Audit Committee of the Board of Regents any gift received in the course of official business having a value of more than $50.
From Friends, Relatives, and Associates: Members of the Board may accept benefits from personal friends, relatives, or business associates with whom they have a relationships independent of their official status, so long as the benefit is not offered in exchange for official action or decision.
Awards: A Regent may accept plaques and similar recognition awards.
Honoraria: A Regent may not solicit, accept, or agree to accept an honorarium in consideration for services he or she would not have been asked to provide but for his or her official position or duties. This prohibition includes a request for or acceptance of a payment made to a third party if made in exchange for such services. However, he or she may accept the direct provision of or reimbursement for expenses for transportation and lodging incurred in connection with a speaking engagement at a conference or similar event. Meals provided as part of the event or reimbursement for actual expenses for meals may also be accepted. Participation by a Regent must be more than merely perfunctory.
Use of MSU Funds or Property: No member of the Board shall expend or authorize the expenditure of any MSU funds for the purpose of influencing the outcome of any election, or the passage or defeat of any legislative measure.
Political Contributions: No member of the Board shall expend or authorize the expenditure of any MSU funds for the purpose of influencing the outcome of any election, or the passage or defeat of any legislative measure.
Misapplication of Property: It is a violation of state law for a Regent acting with the intent to obtain a benefit or with intent to harm another, to intentionally or knowingly misapply any thing of value belonging to the government that comes into the Regent's custody or possession by virtue of his or her office.
Nepotism: Members of the Board of Regents are prohibited from appointing, voting for, or confirming the appointment of any person related to such Regent within the third degree by consanguinity (blood) or within the second degree by affinity (marriage) when the salary or compensation of such person is to be paid from public funds. Relatives within the third degree by consanguinity include a Regent's parent, child, grandparent, sibling, grandchild, great-grandparent, uncle, aunt, nephew, niece, and great-grandchild. Relatives within the second degree by affinity include Regent's spouse; the spouse's parent, grandparents, and siblings; the Regent's son-or-daughter-in-law; and the Regent's grandchild's spouse. In addition, members of the Board of Regents may not take such action on behalf of any individual who is related to any Board member within such degrees. These prohibitions do not apply if the person who is related to the Regent has been continuously employed in the office or position for at least thirty (30) days prior to the appointment or employment of the Regent. If the related person continues in such a position, the Regent may not participate in any deliberation or vote on the appointment, reappointment, confirmation of the appointment or reappointment, employment, re-employment, change in status, compensation, or dismissal of the related individual if that action applies only to that individual and is not taken regarding a bona fide class or category of employees.
Misuse of Official Information: It is a violation of state law for a Regent if, in reliance on information to which he has access in his official capacity and which has not been made public, he or she:

Acquires or aids another to acquire a pecuniary interest in any property, transaction or enterprise that may be affected by the information; or

Speculates or aids another to speculate on the basis of the information.
Sexual Harassment: Regents shall not use their positions of authority to sexually harass employees of the university nor any firm or individual who conducts business with the university. Regents will not condone sexual harassment by staff, faculty or administration of the university.
Outside Influences: It shall be the duty of the Board of Regents to assure that outside influences or pressures from political or religious organizations or other external sources do not affect the Midwestern State University Administration in the execution of their duties and decisions as State of Texas employees.