Inside Iowa State: Iowa State University

February 13, 2004

Understand state ethics law, avoid trouble

by Karen Bolluyt
Using tax dollars appropriately and preventing activities that might unduly influence the judgment of Iowa State employees is part of the university's obligation to taxpayers.

The specifics of these obligations are outlined in Chapter 68B of the Iowa Code, Iowa's government ethics law. In a series of articles, Inside will cover three sections of state ethics law that are of particular interest to Iowa State employees. The first deals with conflicts of interest.

What does the conflict of interest law prohibit?
The Iowa Code prohibits outside employment or other activities that might be at odds with ethical behavior for state employees. This includes the use of state property for personal benefit, and accepting outside money, goods or services for performance of an employee's official duties.

For example, you may not use a university laboratory for a private consulting business. Nor should you accept money for tutoring or advising activities that overlap or duplicate your university responsibilities. Some faculty members assign textbooks they have written, but conflict-of-interest questions must be resolved if the faculty member collects royalties from the sale of the book. Remedies include turning royalties over to the university, having a departmental committee make the textbook selection without the author's participation, or obtaining approval from the dean and provost. Employees who own a private business may create a conflict of interest by employing students or others over whom they have supervisory responsibilities at the university.

What kinds of activities commonly result in a conflict of interest?
Activities outside of ISU create the most opportunities for conflicts. If you have an ownership interest or management responsibilities in a private business, you must be alert to potential conflict-of-interest situations.

For example, if your job gives you access to confidential information about the adhesives industry, it may not be possible for you to own an interest in an adhesives company. Your job also may limit your freedom to serve on company boards or to do research sponsored by the company in which you have an ownership interest.

How can I be sure to avoid a conflict of interest?
ISU policies on conflict of interest can be found in the Office Procedure Guide (OPG 3.1(3)), the Faculty Handbook (Section 8.2.3) and the P&S Handbook (Section 2.8). As early as possible, tell your department chair, director or immediate supervisor about any potential conflict of interest. The gold sheet application for sponsored funding also requires disclosure of conflict-of-interest information.

Who decides if a conflict exists?
Department chairs or directors make this determination and may ask for changes in your outside activity. Even the appearance of a conflict of interest may be problematic in some situations. Deans or the provost may resolve disputes regarding this determination.

What are the possible outcomes of issues regarding conflict of interest?
The goal is to prevent conflicts, if at all possible. There are at least four possible decisions:

You and other interested parties agree that no conflict exists and the activity can proceed.
The university makes a public disclosure of potential conflicts but you are not required to make other accommodations.
You change your activities, relation-ships or employment base. For example, you resign from a board, sell equity, take a leave of absence or change from a full-time to part-time appointment.
If the conflict cannot be resolved, the employee will have to choose whether to remain an ISU employee.

Next in this series: the gift law
Editors' note: ISU associate counsel Keith Bystrom assisted with this series.