UC Santa Barbara                                Attachment 5005 A
  Policies                                             
  Issuing Unit:  Administrative Services          Date: July 15, 1986
  
  
  
  
          COMPEDIUM OF SPECIALIZED UNIVERSITY POLICIES,
             GUIDELINES, AND REGULATIONS RELATED TO
                      CONFLICT OF INTEREST
                                
                              INDEX
                                                                          Page
  1.   Standing Order of The Regents 103.1 (b), Special Projects            2 
       Concerning Officers, Faculty Members, and Employees of the
       University-Service Obligations
  2.   University Regulation No. 3, Privileges and Duties of Members of     2
       the Faculty
  3.   University Regulation No. 4, Special Services to Individuals and     2
       Organizations
  4.   University Regulation No. 5, Academic Freedom                        3
  5.   University Policy on Faculty Conduct and Administration of           3
       Discipline, including The Faculty Code of Conduct
  6.   Policy on Outside Professional Activities of Faculty Members         3
  7.   Policy on Additional Compensation for Services as Faculty            3
       Consultant, Academic Personnel Manual, Section 664
  8.   Statement of Conflict of Interest                                    4
  9.   Instructions to Review and Appraisal Committee, Academic Personnel   4
       Manual, Section 210
  10.  University of California Patent Policy                               4
  11.  Policies on Appointment of Near Relatives                            5
  12.  Policy on Acceptance or Offering of Gifts and Gratuities by          5
       University Employees
  13.  Policies Applying to Campus Activities, Organizations, and Students  5
       (use of university facilities)
  14.  Conflict of Interest Code (financial)                                5
  15.  Policy Regarding Employee-Vendor Relationships                       5
  16.  Materiel Management, Business and Finance Bulletin BUS-43            6
  17.  Independent Consultants, Business and Finance Bulletin BUS-34        7
  18.  Internal Audit Code of Ethics                                        8
  19.  University of California Police Rules and Regulations                8
  20.  Policy on Disclosure of Financial Interest in Private Sponsors of    8
       Research
  
                                
                                
                                
          COMPEDIUM OF SPECIALIZED UNIVERSITY POLICIES,
             GUIDELINES, AND REGULATIONS RELATED TO
                      CONFLICT OF INTEREST
                                
  1.   Standing order of The Regents of the University of California 103.1
       (b), Special Provisions Concerning Officers, Faculty Members, and
       Employees of the University-Service Obligations (January 22, 1971).
  
       Summary:  No portion of time due the university shall be devoted to
                 private purposes and no outside employment shall interfere
                 with performance of university duties.
       
  2.   University Regulations No. 3, Privileges and Duties of Members of
       the Faculty, Section 3a (February 15, 1935).
  
       Summary:  Faculty are assumed to devote full "working" time to the
                 university.  Service includes classroom teaching,
                 conference with students, studying and writing, research,
                 committee work, administration, and public service, with
                 time devoted to each varying with, and dependent upon,
                 involvement with each type of activity.
  
  3.   University Regulation No. 4, Special Services to Individuals with
       Organizations (June 23, 1958) and Principles Underlying Regulation
       No. 4 (June 23, 1958).
  
       Summary:  Faculty may render professional or scholarly services for
                 compensation and may engage in the practice of their
                 professions to maintain professional competency if such
                 service does not interfere with university commitments and
                 if it gives experience and knowledge of value to his
                 teaching or research; is suitable research through which
                 he may make worthy contributions of knowledge; or is
                 appropriate public service.  When consultants or outside
                 services are such as to interfere with recognized
                 university duties, they may be undertaken only on the
                 basis of a leave of absence.  University laboratories,
                 bureaus, and facilities are not to be used for work of a
                 purely commercial character except when it can be shown
                 conclusively that satisfactory facilities for such
                 services do not exist elsewhere.
  
  4.   University Regulation No. 5, Academic Freedom (June 15, 1944),
       Academic Personnel Manual Section 010.
  
       Summary:  The function of the university is to train students in
                 processes whereby truth is to be made known.  Its
                 obligation is to see that conditions under which questions
                 are examined are those which give play to intellect.  To
                 convert or make converts is alien and hostile to this
                 dispassionate duty.  When considering political, social,
                 or sectarian movements, they are to be dissected and
                 examined (not taught) and the conclusion left to the logic
                 of the facts.
  
  5.   University Policy on Faculty Conduct and Administration of
       Discipline (June, 1974), including The Faculty Code of Conduct (May,
       1974), Academic Personnel Manual Section 015.
  
       Summary:  The policy includes in its statement on ethical principles
                 that the professor "determines the amount and character of
                 the work he does outside his institution with due regard
                 to his paramount responsibilities within it..."  The
                 policy also lists as one type of unacceptable conduct the
                 "unauthorized use of university resources or facilities on
                 a significant scale for personal, commercial, political,
                 or religious purposes" and contains sanctions where abuse
                 is demonstrated.
  
  6.   Policy on Outside Professional Activities of Faculty Members (April
       13, 1979), Academic Personnel Manual Section 025.
  
       Summary:  Amplifies previously issued policies on expected duties of
                 a faculty member and clarifies expectations of performance
                 of compensated or uncompensated outside professional
                 activities which relate to a faculty member's academic
                 specialty.  Requires annual reports on such activities to
                 departmental chairpersons.
  
  7.   Policy on Additional Compensation for Services as Faculty Consultant
       (July 1, 1984), Academic Personnel Manual Section 664.
  
       Summary:  If not regularly engaged on the project concerned, a
                 member of the faculty may, on occasion, receive additional
                 compensation for consultant services on projects conducted
                 under the auspices of the university.
  
  8.   Statement of Conflict of Interest (issued by the President, October
       5, 1967 and October 12, 1967).
  
       Summary:  The statement recognizes the potential conflict of
                 interest from sponsored research, consulting contracts,
                 and staff involvement in the management of private
                 companies and illustrates for guidance the kinds of
                 situations which may give rise to conflicts of interest
                 (excerpted from a 1964 joint statement of the American
                 Council on Education and the American Association of
                 University Professors).
  
  9.   Instruction to Review and Appraisal Committees (June 21, 1977
       through May 1, 1981), Academic Personnel Manual Section 210.
  
       Summary:  The instructions state that "Superior intellectual
                 attainment, as evidenced both in teaching and in research
                 or other creative achievement, is an indispensable
                 qualification for appointment or promotion to tenure
                 positions."  Creative work includes recognized artistic
                 production in architectural or engineering design;
                 professional competence; demonstrated distinction in the
                 profession; and public service, service to the community,
                 state, and nation.
  
  10.  University of California Patent Policy (November 18, 1985).
  
       Summary:  In order to equitably administer intellectual property,
                 the discoveries and inventions of members of the
                 faculties, employees, and others associated with the
                 university are subject to the patent policy.  The use of
                 university facilities or services, particular assignment
                 of duties, possible claims of a cooperating agency where
                 research is supported from extramural funds, and other
                 situations may give rise to a complex of interrelated
                 equities or rights.  Specific requirements of the policy
                 are set forth, including No. II.A., which states:  "An
                 agreement to assign inventions and patents to the
                 University, except those resulting from permissible
                 consulting activities without use of university
                 facilities, shall be mandatory for all employees..."  By
                 letters of January 14, 1976, and July 14, 1976, and their
                 attachments, the President extended patent policy
                 regulations to non-compensated researchers, certain
                 visiting scholars and consultants, and graduate students.
  
  11.  Policies on Appointment of Near Relatives, Academic Personnel Manual
       Section 520, (July 1, 1971 and June 3, 1985) and Staff Personnel
       Policy 211.26 (July 1, 1985).
  
       Summary:  Appointment of near relatives in the same department is
                 permitted, subject to reasonable safeguards against
                 conflict of interest.
  
  12.  Policy on Acceptance or Offering of Gifts and Gratuities by
       University Employees (February 6, 1980).
  
       Summary:  No officer or employee should accept any gift or gratuity
                 from any source which is offered or appears to be offered
                 because of the university position held by the officer or
                 employee.  This document also prohibits offers of a gift
                 or gratuity by university officers or employee and defines
                 gifts and gratuities.
  
  13.  Policies Applying to Campus Activities, Organizations, and Students
       (January 3, 1979).
  
       Summary:  Included in this document is the policy that university
                 facilities may be used only for university-related
                 purposes or in furtherance of such purposes.
  
  14.  University of California Conflict of Interest Code (financial),
       approved by the Fair Political Practices Commission, January 26,
       1978 and re-approved yearly thereafter with modifications.
  
       Summary:  The Code requires public filing of financial disclosure
                 statements by designated officials and disqualification
                 from governmental decision-making of any employee who has
                 a financial interest.  Programmatic teaching and research
                 decisions when a research project is totally publically
                 funded, are not considered governmental decisions under
                 the Code.  Research decisions pertaining to research
                 projects funded in whole or in part by private entities
                 are subject to separate code and policy requirements.
                 See:  Policy on Disclosure of Financial Interest in
                 Private Sponsors of Research.  See No. 20, page 6.
  
  15.  Policy Regarding Employee-Vendor Relationships (August 19, 1982).
  
       Summary:  Goods or services shall not be purchased from a university
                 officer, employee, or near relative unless there is a
                 specific determination that the goods or services are not
                 available otherwise.
  
  16.  Materiel Management, Business and Finance Bulletin BUS-43 (April 15,
       1986).
  
       Part 2:   Basic Policies and Requirements, Section XI (p. 24),
       Personal Purchases.
  
       Summary:  University credit, purchasing power, and facilities shall
                 not be used to purchase goods or services for individuals
                 or non-university activities.
  
                 Organizations and activities closely allied to or
                 officially associated with the university (such as a
                 faculty club or an ASUC), with the approval of the
                 chancellor, may not be permitted to purchase materials
                 that are not subject to federal tax through the campus
                 Materiel Management Office.
  
       Part 9:   Employee-Vendor Relationships, (pp. 48-50).
  
       Summary:  Separation of Interest-It is the policy of the university
                 to separate an employee's university and private interests
                 and to safeguard the university and its employees against
                 charges of favoritism in acquisition of goods and
                 services.
  
                 Conflict of Interest-The State of California Political
                 Reform Act prohibits an employee from making, or
                 participating in the making, of a decision if there exists
                 a financial conflict of interest.  Requirements governing
                 such decision-making are set forth in the university's
                 Conflict of Interest Code and shall be observed in
                 purchase of goods and services by the university.  (See
                 No. 14, above.)
                 
                 Determination-No purchase, lease of goods, or contracts
                 for services shall be made from any employee or near
                 relative unless there has been a specific determination by
                 the Materiel Manager or designee that the goods or
                 services are not available either from commercial sources
                 or from the university's own facilities.
                 
                 Inspection-The responsible administrative officer or
                 representative whenever necessary to ensure an
                 understanding of facts presented shall inspect the
                 business premises and records of an employee-vendor or
                 near relative-vendor from whom the university is
                 considering acquiring goods or services.
                 
                 Exceptions-Each responsible administrative officer is
                 delegated authority, within constraints imposed by the
                 Political Reform Act, for approving exceptions to policy
                 when there are unusual or extenuating circumstances.
  
       Introduction (p.1) and Appendix B, Principles and Standards or
       Purchasing Practice Advocated by National Association of Purchasing
       Management, and Code of Ethics of National Association of
       Educational Buyers.
  
       Summary:  The university is committed to maintaining high standards
                 of performance based upon fair, ethical, and professional
                 business practices.  It therefore, expects each Materiel
                 Manager and anyone else authorized to make purchases to
                 abide by the purchasing codes of conduct attached to BUS-
                 43 in Appendix B.
  
  17.  Independent Consultants, Business and Finance Bulletin BUS-34 (July
       8, 1981 and March 31, 1983).
  
       Summary:  Proposals from independent consultants shall include the
                 name and university position of any officer, faculty
                 member, or other employee of the university who holds a
                 position of director, officer, partner, trustee, manager,
                 or employee in the consultant organiztion.  Selection of
                 the independent consultant shall be made on the basis of
                 qualifications, resources, experience, needs of the
                 university, and cost to the university.  In the selection
                 process, any officer or employee participating in the
                 decision must keep in mind the disqualification
                 requirements for financial conflict of interest of the
                 State of California Political Reform Act of 1974.  The
                 university policy regarding employee-vendor relationships
                 applies to services as an independent consultant.
  
                 If an employee-vendor relationship exists, the reporting
                 requirements of Business and Finance Bulletin BUS-43 shall
                 be followed.  (See No. 15 and No. 16, above.)
  
  18.  Ethical Professional Conduct:  Internal Audit Code of Ethics.
  
       Summary:  The university subscribes to the Code of Certified
                 Internal Auditors, whch subscribes to avoidance of any
                 conflict of interest or manifestation of bribery.
  
  19.  University of California Police Rules and Regulations (April 1,
       1981).
  
       Summary:  The regulations include the Law Enforcement Code of Ethics
                 as an introduction and a section on Code of Conduct for
                 University Police employees.  Specifically, employees
                 shall conduct their private and professional lives in such
                 a manner as to avoid bringing discredit upon the
                 department or upon themselves and, for example, shall not
                 solicit or accept gratuities, use one's position to obtain
                 privileges, or permit endorsement for advertising purposes
                 based upon the employee's university position.
  
  20.  Policy on Disclosure of Financial Interest in Private Sponsors of
       Research (April 8, 1982), Academic Personnel Manual Section 028.
  
       Summary:  University Policy on Disclosure of Financial Interest in
                 Private Sponsors of Research issued by the President on
                 April 26, 1984, and State regulations mandated by the
                 President on April 26, 1984, and State regulations
                 mandated by the Fair Political Practices Commission under
                 the Political Reform Act (2 Cal. Admin. Code Section
                 18705) require that a principal investigator must disclose
                 whether or not he has a direct or indirect financial
                 interest in the sponsor of research which is funded in
                 whole or in part: 1) through a contract or grant of $250
                 or more with a non-governmental entity; or 2) by a gift
                 from a non-governmental entity which is earmarked by the
                 donor for a specific research project or a specified
                 principal investigator, provided the amount of the gift,
                 or the aggregate over a 12 month period, from the same
                 donor is $250 or more.
       
                 When an interest by a principal investigator in the
                 sponsor is disclosed, a campus committee must review
                 whether or not the contract, grant, or gift can be
                 accepted.



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