Inside Iowa State: Iowa State University

March 12, 2004

Iowa State may buy your widget -- maybe
Last in a series on Iowa ethics law

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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.

Section 68B.3 in the code deals with purchases of goods or services from public employees or their families. Iowa State's central purchasing department usually handles questions on this law and is responsible for an annual report to the Board of Regents, State of Iowa, about these transactions.

What are the rules on purchases from employees or their families?
If you are an Iowa State employee, you may not sell more than $1,000 per transaction or $2,000 per year to the university without regents' approval. After this approval, you may not sell more than $2,000 per transaction or $5,000 per year without participating in an open bid.

Which family members are included in this prohibition?
The rules cover employees, their spouses and minor children, and any business owned by an employee's spouse or children.

What can happen if I am not alert to these rules?
In one case, the university was not able to pay a large sum to a faculty member's spouse. She had edited scientific papers for a department. The situation was only discovered when the payment voucher went to the purchasing office.

What is the penalty for violating government ethics laws?
A violation can be a serious misdemeanor, which could result in a fine ($250-$1,500) or imprisonment up to one year. However, it is more likely that you would be reprimanded, suspended or dismissed.

Editor's note: ISU associate counsel Keith Bystrom helped with this series.