(1) As used in this section: (a) "Charter school officer" means: (i) a member of a charter school's governing board; (ii) a member of a board or an officer of a nonprofit corporation under which a charter school is organized and managed; or (iii) the chief administrative officer of a charter school. (b) (i) "Employment" means a position in which a person's salary, wages, pay, or compensation, whether as an employee or contractor, is paid from charter school funds. (ii) "Employment" does not include a charter school volunteer. (c) "Relative" means a father, mother, husband, wife, son, daughter, sister, brother, uncle, aunt, nephew, niece, first cousin, mother-in-law, father-in-law, brother-in-law, sister-in-law, son-in- law, or daughter-in-law. (2) (a) Except as provided in Subsection (2)(b), a relative of a charter school officer may not be employed at a charter school. (b) If a relative of a charter school officer is to be considered for employment in a charter school, the charter school officer shall: (i) disclose the relationship, in writing, to the other charter school officers; (ii) submit the employment decision to the charter school's governing board for the approval, by majority vote, of the charter school's governing board; (iii) abstain from voting on the issue; and (iv) be absent from the portion of the meeting where the employment is being considered and determined. (3) (a) Except as provided in Subsections (3)(b) and (3)(c), a charter school officer or a relative of a charter school officer may not have a financial interest in a contract or other transaction involving a charter school in which the charter school officer serves as a charter school officer. (b) If a charter school's governing board considers entering into a contract or executing a transaction in which a charter school officer or a relative of a charter school officer has a financial interest, the charter school officer shall: (i) disclose the financial interest, in writing, to the other charter school officers; (ii) submit the contract or transaction decision to the charter school's governing board for the approval, by majority vote, of the charter school's governing board; (iii) abstain from voting on the issue; and (iv) be absent from the portion of the meeting where the contract or transaction is being considered and determined. (c) The provisions in Subsection (3)(a) do not apply to a reasonable contract of employment for: (i) the chief administrative officer of a charter school; or (ii) a relative of the chief administrative officer of a charter school whose employment is approved in accordance with the provisions in Subsection (2). (4) The state board or State Charter School Board may not operate a charter school.
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