Section 1500.5035  Disclosure of Financial Interests and Potential Conflicts of Interest

a)         For purposes of Section 50-35(a) of the Code, an "offer from responsive bidders or offerors" means only those offers that are received using an Invitation for Bids or Request for Proposals under Sections 20-10, 20-15 and 20-35 or Article 35 of the Code.  Disclosures are not required in small, sole source or emergency procurements.

b)         For purposes of:

1)         Section 50-35(b) of the Code, "parent entity" means a person who owns 100% of the bidding entity.

2)         Section 50-35(b)(1) of the Code, "contractual employment of services" means any contract to provide services to the State, whether as independent contractor or employee, that is by and between the State and the named individual.

c)         Distributable or distributive income means the income of a company after payment of all expenses, including employee salaries and bonuses, and retained earnings, which is distributed to those entitled to receive a share of such income.

d)         Personal services shall be any contract for services subject to this Code, including, for example, professional and artistic services, repair services, cleaning and guard services, but excludes contracts with employees who are exempt from the Code under Section 1-10(b)(4).

e)         "Competitively bid" means a contract let pursuant to Sections 20-10, 20-15 and 20-35 of the Code.

f)         "Subject to federal 10K reporting" means subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934.  "10K disclosure" means a report required under Section 13 or 15(d) of the Securities Exchange Act of 1934.

g)         Once a disclosure is made in relation to a particular contract, the disclosure need not be repeated if the contract is amended.

h)         10K Disclosures

1)         Any vendor subject to federal 10K reporting requirements may submit its 10K to the State in satisfaction of the disclosure requirement of Section 50-35(b) of the Code provided the vendor also identifies the specific sections or parts in the 10K disclosure where the State may find information, if any, pertaining to those who have an ownership interest or an interest in the distributable income of the vendor or its parent, or other information that the vendor knows or reasonably should know identifies a potential conflict of interest with the State.  If the financial interest or conflict of interest information requested by the State is not in the 10K, but is in a document referenced in the 10K, or in a document that may be submitted to the SEC in conjunction with or in lieu of the 10K, then that additional documentation shall be provided as well.

2)         10K disclosures are available for public review.  Any potential conflict of interest identified by the public and brought to the attention of the CPO or SPO shall be investigated.

3)         In circumstances where a vendor may submit a 10K disclosure in lieu of the specific disclosure requirements of the Code and for purposes of the Procurement Officer's duty to consider any conflict or potential conflict of interest that may exist, but that is not subject to specific disclosure requirements of the Code and this Part, and that is not personally known by the Procurement Officer, the duty of the Procurement Officer "publicly known or reasonably available to the public" shall be satisfied by taking into consideration information identified by the vendor in the 10K disclosure and any information disclosed pursuant to public review of the 10K disclosure.