156

LAWS OF MARYLAND

Ch. 22

REVISOR'S NOTE: This section presently appears as Art.
77, §123.

The only changes are in style.

5-111. CONFLICT OF INTEREST PROHIBITED.

(A)         WHAT CONSTITUTES A DIRECT AND INDIRECT FINANCIAL
INTEREST.

(1) IN THIS SECTION, AN INDIVIDUAL IS CONSIDERED
TO HAVE A DIRECT FINANCIAL INTEREST IN A CONTRACT OR
PURCHASE IN WHICH A COUNTY BOARD IS A PARTY IF THE CONTRACT
OR PURCHASE IS TO BE CONSUMMATED BETWEEN THE COUNTY BOARD
AND:

(I)       THE INDIVIDUAL, HIS SPOUSE, OR HIS CHILD;

(II)          ANY FIRM, CORPORATION, OR ASSOCIATION IN
WHICH THE INDIVIDUAL, HIS SPOUSE, OR HIS CHILD, EITHER
JOINTLY OR SEVERALLY, OWN, IN TOTAL, MORE THAN 3 PERCENT OF
THE INVESTED CAPITAL OR CAPITAL STOCK; OR

(III)       ANY FIRM, CORPORATION, OR ASSOCIATION FROM
WHICH THE INDIVIDUAL, HIS SPOUSE, OR HIS CHILD, EITHER
JOINTLY OR SEVERALLY, HAVE RECEIVED COMBINED WAGES,
SALARIES, OR BONUSES OF AN AVERAGE OF AT LEAST $5,000 A YEAR
OVER THE 3 PREVIOUS YEARS.

(2)       IN THIS SECTION, ANY FINANCIAL INTEREST OF
AN INDIVIDUAL IN A TRANSACTION NOT INCLUDED IN THE
DESCRIPTION OF "DIRECT FINANCIAL INTEREST" IN PARAGRAPH (1)
OF THIS SUBSECTION IS CONSIDERED AN INDIRECT FINANCIAL
INTEREST.

(B)       COUNTY SUPERINTENDENT.

(1)   EXCEPT AS PROVIDED IN THIS SUBSECTION, A
COUNTY SUPERINTENDENT MAY NOT HAVE A DIRECT OR INDIRECT
FINANCIAL INTEREST IN ANY CONTRACT OR PURCHASE TO WHICH THE
COUNTY BOARD IN HIS COUNTY IS A PARTY.

(2)     A COUNTY SUPERINTENDENT WHO KNOWS OR
REASONABLY MAY BE EXPECTED TO KNOW THAT HE HAS A DIRECT
FINANCIAL INTEREST IN ANY CONTRACT OR PURCHASE IN WHICH THE
COUNTY BOARD IN HIS COUNTY IS OR MAY BE IN ANY WAY
CONCERNED, PROMPTLY SHALL DISCLOSE THIS INTEREST TO THE
STATE SUPERINTENDENT.

(3)   IF THE TRANSACTION HAS BEEN APPROVED IN
WRITING BY THE STATE SUPERINTENDENT, AND IF DISCLOSURE IS
MADE AND THE COUNTY SUPERINTENDENT DISQUALIFIES HIMSELF FROM
ACTING ON THE TRANSACTION ON BEHALF OF THE COUNTY BOARD, THE
TRANSACTION MAY BE COMPLETED IF IT INVOLVES:

(I) MAKING A DEPOSIT BY THE COUNTY BOARD IN A
BANK IN WHICH THE COUNTY SUPERINTENDENT HAS A DIRECT