Policy 108: CSUS Board Conflict of Interest Policy

Subject: Governance

Board Policy

The Board has promulgated a Conflict of Interest Policy Statement in Article IX of the Board’s By-Laws. This policy applies to all CSUS personnel, including employed students, faculty, staff, administration, and Board Members. The policy imposes strict disclosure requirements on all persons subject to the policy.

The CSUS Conflict of Interest Policy defines public employment and appointment as a public trust and identifies as a violation of that trust:

1. Any effort to realize personal gain through official action(s) – other than compensation and/or benefits that accrue under approved contracts;
2. Any disclosure of confidential information;
3. Any attempt to advance or promote interests that compete with, or are adverse to, or conflict with the best interests of the CSUS.

The Board requires all CSUS Board Members, Board Officers, CSUS Officers, and CSUS employees to base all decisions or actions solely on the basis of a sincere and faithful effort to promote and foster the best interests of the CSUS and its constituent institutions and entities.

Procedures

1. Disclosure of Conflicts of Interest: On or about April 30 of each year, each person included within one of the following named groups must file a disclosure statement linked hereto with the Chancellor and the General Counsel, indicating all affiliations likely to cause an actual or apparent conflict of interest, and to notify the General Counsel promptly of any change in those affiliations. The General Counsel shall maintain the required disclosures on file for the following persons:
   • Board Members;
   • Board Officers;
   • CSUS Officers.
2. Any person covered by this Policy engaged in a transaction that creates an actual or potential conflict of interest – or an appearance of an actual or potential conflict of interest — must, prior to discussing or taking any action for or against the transaction:
   1. Fully disclose the nature of the interest or involvement creating the actual or potential conflict of interest to the Board;
   2. Refrain from any and all participation in the Board’s consideration of or action on the matter, if CSUS General Counsel rules that a conflict of interest exists; and
   3. Adhere to the management plan developed and approved to prevent a conflict from occurring.
3. This Policy does not prevent persons covered by it from engaging in business transactions with a CSUS campus or entity IF that person makes the required disclosures, refrains from involvement in any official decisions taken by the Board or other CSUS authority concerning those transactions, and adheres to the approved conflict of interest management plan. The person affected must note the disclosure and abstention in open session, with the notation reflected in the minutes of the meeting. It is recommended that anyone concerned about a potential conflict of interest should consult with the CSUS General Counsel concerning voluntary actions to guard against legal consequences of potential conflicts of interest.

Institution Requirements

1. The Chancellor and institution Presidents ensure that campuses maintain conflict of interest policies in compliance with this Policy, federal and state law.
2. All system and campus policies must include all the required disclosure and mitigation procedures required by law.
3. This Policy and all related system and campus policies require periodic review and approval by the Office of General Counsel to assure continued currency and relevance.

History

• Effective Oct. 4, 2013, by Board Resolution