SUBJECT:

Conflict of Interest Pilot Program for Service Agreements

This notice serves to inform faculty and staff about a pilot program that
will be implemented January 1, 1998 requiring the completion and submittal
of a UCSD "Statement of Economic Interest on Incoming Service Agreements"
form. This form is to be submitted with all requests to establish incoming
service agreements with entities that seek services from UCSD. These types
of agreements are generally known as "service agreements" or "incoming
purchase orders" and are processed on behalf of UCSD by the Business
Contracts Office of Purchasing.

This pilot program is being established in an effort to comply with
University policies in support of the Political Reform Act of 1974 which
requires all employees and officers to disqualify themselves from
participating in a University decision when a financial conflict of
interest is present. Accordingly, UCSD established a resident Conflict of
Interest (COI) office to coordinate COI activities for the campus. An
Independent Review Committee (IRC), consisting of representatives from
faculty, is charged with advising the Chancellor on issues regarding: (1)
management of COI situations which may result in the loss of federal and
state funds and research opportunities; and (2) assisting employees in
assessing certain circumstances where outside employee activities or
involvement may inappropriately conflict with their University position.

Currently, under the Political Reform Act and existing University policies,
faculty and staff positions identified as Designated Officials are required
to disclose certain financial interests that exist with entities doing
business with the University. However, because of the recent emphasis on
potential conflict of interest relationships, it was determined that a pilot
program be established which would extend the disclosure requirement to
those faculty and staff who are involved with agreements for services that
are contracted for use by outside entities.

The pilot program will begin January 1, 1998 and continue through March 31,
1998. All requests to establish service agreements or incoming purchase
orders for amounts greater than $1000 will require completion by the
Principal Investigator or individual making the decision of a "Statement of
Economic Interest on Incoming Service Agreements" form. The Business
Contracts Office requires that this form be sent with all documents that are
pertinent to the establishment of the service agreement or incoming purchase
order. All statement of economic interest forms will be forwarded to the
COI Office for review and approval prior to the establishment of any
agreement.

At the conclusion of the pilot program an evaluation of the results will be
conducted and a recommendation will be made to expand the pilot program,
institute a permanent reporting program or continue with the current
conduct of business.

Thank you for your full cooperation during this pilot period. We ask that
you forward this information to your faculty and staff and make them aware
of the pilot program. Information about this program, along with a copy of
the form, can be accessed from the Business Contract's web site at
http://www-bfs.ucsd.edu/pur/services/buscon.htm.

Steven W. Relyea Vice Chancellor - Business Affairs Paul Saltman, Chair Independent Review Committee