Islamic Banking

B. CSU Conflict of Interest Code

The Political Reform Act requires CSU to adopt a formal conflict of interest code. The CSU's code requires certain employees, who are most likely to be involved in university decision making where potential conflicts may be present, to file an annual disclosure form. The purpose of this form is to inform the employee and the public of potential conflicts of interest and situations where disqualification is mandated.

1. Form 700 (Disclosure)

Every employee in a position designated by the code must complete an annual statement of economic interests called a Form 700. A list of designated positions is published by the CSU every year, and is occasionally amended to reflect changes in position names and decision-making authority.

CSU assigns a disclosure category or categories to each designated employee position, depending on the level of the position and the likelihood that the person holding it will be drawn into particular conflict situations. The disclosure categories identify the kinds of personal economic interests which the employee must disclose. Each employee in a position designated by the code will receive a Form 700 every year and a cover letter that identifies his/her specific disclosure categories.

The Form 700 is filed with the campus filing officer on April 1 and is a public document. In addition to the annual filing, the Form 700 is also required to be filed when the employee first comes in to a designated position, and when the employee leaves a designated position. There is a $10 per day late fine for each day after April 1 that the Form 700 is not on file, extending up to a maximum fine of $100. All Form 700s are kept for seven years and are open to public inspection.

2. Training

Employees in positions designated by the code are required to participate in conflict of interest ethics training every two years.

3. Restrictions Regarding Honoraria, Gifts and Travel

The CSU Conflict Code also prohibits the receipt of any honoraria and gifts over $420. (Gov't Code §§ 89500 et seq., 2 CCR § 18730). A detailed discussion of these limitations can be viewed at: http://www.calstate.edu/HRAdm/pdf2008/LimitationsFactSheet_07.pdf

a. Honoraria Prohibition: Speeches, Publications, Conferences, etc.

With limited exception, an employee in a position designated by the code cannot accept payment for a speech, publishing an article, serving as an emcee or simply participating in a conference, meeting, event or other gathering, from a source that s/he has or will be required to disclose on his/her Form 700.

The exceptions to the honoraria prohibition are: