(a) 
         A grantee may not permit a person to participate in an administrative decision regarding a project if:
     
    
        
        (1) 
         The decision is likely to benefit that person or a member of his or her immediate family; and
     
    
    
        
        (i) 
         Is a public official; or
     
    
        
        (ii) 
         Has a family or business relationship with the grantee.
     
    
        
        (b) 
         A grantee may not permit any person participating in the project to use his or her position for a purpose that is—or gives the appearance of being—motivated by a desire for a private financial gain for that person or for others.
     
    
        
            Code of Federal Regulations
        
        (Authority: 
                20 U.S.C. 1221e-3 and 3474
            )