i) Purchase of State-owned property by an employee absent fair and open bidding, where required. This is a violation of TBR Policy 4:02:20:00 and State law under Tenn. Code. Ann. §§ 12-2-208 and 12-2-417.
ii) Institutional purchases from businesses in which an employee or family member has a financial interest. Tenn. Code Ann. §12-4-103 prohibits employees from bidding on, selling, or offering to sell or have an interest in the selling of merchandise, equipment, material, or similar commodity to the State of Tennessee during their tenure of employment, or for six (6) months thereafter. Violation of this provision is considered a class E felony. Employees are required to disclose if he/she or members of his/her family have any significant ownership interest (more than 4%) in such business or if the employee or a member of his/her family serves as an officer for the business.
Tenn. Code Ann. §12-3-106(b) declares that it is a conflict of interest for any person or any company with whom such person is an officer, director, or equity owner with more than 1% interest to bid on any public contract for products or services for the University if that person or their relative is responsible for approving such contract for the University. Under this provision, relative means spouse, parent, sibling or child.
iii) Use of educational materials from which a faculty member derives a financial benefit. Any faculty member who wishes to use in his or her teaching activities educational materials (e.g. textbook) that he or she has authored, or in which he or she otherwise stands to benefit financially from such use, has a conflict of interest that must be managed. The use of such materials shall be evaluated by the appropriate University department or division committee. University policy UM 1669 Faculty Authored Educational Material establishes guidelines for making these decisions.
iv) Acceptance of gifts, gratuities, or favors. No employee shall knowingly solicit or accept, directly or indirectly, on behalf of himself or herself, any person living in the employee’s household or a family member, for personal use or consumption, any gift including but not limited to any gratuity, service, favor, food, entertainment, lodging, transportation, loan, loan guarantee or any other thing of monetary value, from any person or entity that:
a) Has or is seeking to obtain, contractual or business or financial relations with the University; and
b) Has interests that may be substantially affected by the performance or nonperformance of the employee.
Exceptions to the prohibition of gifts:
1) a gift with a non-business purpose motivated by a close personal relationship and not by the employee’s position with the University;
2) informational materials in the form of books, articles, periodicals, other written materials, audiotapes, videotapes, or other forms of communications
3) sample merchandise, promotional items, and appreciation tokens, if they are routinely given to customers, suppliers or potential customers or suppliers in the ordinary course of business, including items distributed at tradeshows and professional meetings where vendors display and promote their services and products;
4) food, refreshments, foodstuffs, entertainment, or beverages provided as part of a meal or other event, including tradeshows and professional meetings, if the value of such items does not exceed fifty dollars ($50.00) per occasion; provided that the value of the gift may not be reduced in value by dividing the cost of the gift among two or more persons or entities. Rather, the measure is the value of the gift received by each individual person;
5) circumstances where refusal or reimbursement of the gift may be awkward and contrary to the larger interests of the University. In such circumstances, the employee is to use his or her best judgment, and disclose the gift including a description, estimated value, the person or entity providing the gift, and any explanation necessary within fourteen (14) days to their immediate supervisor;
6) food, refreshments, meals, foodstuffs, entertainment, beverages or intrastate travel expenses that are provided in connection with an event where the employee is a speaker or part of a panel discussion at a scheduled meeting of an established or recognized membership organization which has regular meetings;
7) participation in institution or foundation fundraising and public relations activities (i.e. golf tournaments and banquets), where persons or entities provide sponsorship; and
8) loans from established financial institutions made in the ordinary course of business on usual and customary terms, so long as there are no guarantees or collateral provided by any person from whom the employee would normally be prohibited from accepting a gift.
v) Approval of transactions involving self or family members. No employee shall be the approver of a University transaction in which that employee or a family member of that employee benefits financially or in any other respect, such as by the reduction of an academic requirement. Any transactions in which the employee or a family member could benefit financially or otherwise must be approved by a person with higher authority than the employee at issue.
