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A. Except as provided in this section, a board member or employee of a public corporation may not participate in a decision of the public corporation in which that person or a member of that person's immediate family has a financial interest unless the financial interest is a remote financial interest and participation is approved under subsection (B) of this section.

B. A board member or employee may participate in a decision if that person or a member of that person's immediate family has only a remote financial interest, the fact and extent of the interest is disclosed to the board in a public meeting and is noted in the minutes of the board before any participation by the member in the decision, and thereafter in a public meeting the board by vote authorizes or approves the participation. If the person whose participation is under consideration is a board member, that person may not vote under this subsection. For purposes of this subsection, "remote financial interest" means:

1. That of a nonsalaried officer of a nonprofit corporation;

2. That of an employee or agent of a contracting party where the compensation of the employee or agent consists entirely of fixed wages or salary and the contract is awarded by bid or by other competitive process;

3. That of a landlord or tenant of a contracting party, except in cases where the property subject to the lease or sublease is owned or managed by the public corporation;

4. That of a holder of less than one percent of the shares of the corporation or cooperative that is the contracting party;

5. That of an owner of a savings and loan or bank savings or share account or credit union deposit account if the interest represented by the account is less than two percent of the total deposits held by the institution; or

6. Other interests that are defined as remote by bylaws adopted by the public corporation.

C. A board member or employee is not considered to be financially interested in a decision when the decision could not affect that person in a manner different from its effect on the public.

D. The board may adopt additional conflict of interest and ethical rules it considers appropriate.

E. For purposes of this section, "participate in a decision" includes all discussions, deliberations, preliminary negotiations, and votes.

F. The board may recommend to the city council the removal of a board member who intentionally violates this section or a rule adopted hereunder. In addition, violation of any provision of this section constitutes an infraction for which a monetary fine, not to exceed five hundred dollars ($500.00), may be assessed by Aberdeen Municipal Court or another court of competent jurisdiction. Violation may be proven by a preponderance of evidence and need not be proven beyond a reasonable doubt.

(Prior code § 1.98.180)