1. (a) The purpose of this section is to make certain that regional center governing board members and regional center executive directors are guided solely by the interests of the regional center and its consumers and not by their personal financial interests when participating in the making of contracts in their official capacity.

2. (b) Regional center governing board members and regional center executive directors shall not be financially interested in any contract in which they participate in making in their official capacity.

   1. (1) Financially interested, for purposes of this section, means any financial interest regardless of the dollar amount, and includes aiming to achieve a financial gain or avoid a financial loss. The financial interest may be direct or indirect and includes any monetary or proprietary benefit, gain of any sort, or the contingent possibility of monetary or proprietary benefits, and extends to expectations of economic benefit. Certainty of financial gain is not necessary to create a conflict of interest.

      1. (A) The financial interest is direct when the individual, in his or her official capacity, does business with himself or herself in his or her private capacity.
      2. (B) The financial interest is indirect if a regional center board member or executive director enters into a contract in his or her official capacity with an individual or entity, and because of the relationship between the individual or entity to the board member or executive director, the individual or entity is in a position to render actual or potential pecuniary benefits to the board member or executive director based on that contract.
   2. (2) Participation in the making of a contract includes any act involving preliminary discussions, development, negotiations, compromises, reasoning, planning, drawing of plans and specifications, solicitation for bids, approval and execution.

3. (c) If a regional center governing board member, regional center executive director, or his or her family member has a financial interest in a potential contract that creates a present or potential conflict of interest, the regional center board member or executive director shall do all of the following prior to the first consideration of the potential contract:

   1. (1) fully disclose the existence and nature of the conflicting financial interest to the regional center board;
   2. (2) have it noted in the official board records;
   3. (3) recuse himself or herself from making, participating in making, or in any way attempting to use his or her position to influence a decision on the matter;
   4. (4) leave the room during any discussion or deliberations of the matter and shall not return until disposition of the matter is concluded; and
   5. (5) shall not cast his or her vote upon any matter or contract concerning the financial interest or be counted for purposes of a quorum.
4. (d) Subdivision (c) does not apply if a board member, who is a regional center consumer, has a financial interest in a contract that will provide him or her with a financial benefit, if that benefit will be available to any regional center consumer.
5. (e) Regional center governing board members and executive directors shall not make any contract which is financially beneficial to a family member of such person, unless the benefits associated with the contract are available to regional center consumers or their families generally. When benefits associated with the contract are available to regional center consumer or their families generally, subdivision (c) does not apply.
6. (f) The regional center board may not avoid a conflicting financial interest in a contract by delegating its decision-making authority to another individual or body.

Note: Authority cited: Sections 4626 and 4627, Welfare and Institutions Code. Reference: Sections 4622, 4626 and 4627, Welfare and Institutions Code; and Sections 1090, 87103 and 87105, Government Code.

History

1. Repealer and new section filed 12-29-86; effective thirtieth day thereafter (Register 87, No. 1).

2. Repealer and new section heading and section filed 8-15-2012 as a deemed emergency pursuant to Welfare and Institutions Code section 4627(d); operative 8-15-2012 (Register 2012, No. 33). A Certificate of Compliance must be transmitted to OAL by 2-11-2013 or emergency language will be repealed by operation of law on the following day.

3. Repealer and new section heading and section, including amendment of subsection (c), refiled 2-7-2013 as a deemed emergency pursuant to Welfare and Institutions Code section 4627(d); operative 2-7-2013 (Register 2013, No. 6). A Certificate of Compliance must be transmitted to OAL by 5-9-2013 or emergency language will be repealed by operation of law on the following day.

4. Repealer and new section heading and section and subsequent amendments refiled 5-6-2013 as a deemed emergency pursuant to Welfare and Institutions Code section 4627(d); operative 5-6-2013 (Register 2013, No. 19). A Certificate of Compliance must be transmitted to OAL by 8-5-2013 or emergency language will be repealed by operation of law on the following day.

5. Reinstatement of section as it existed prior to 8-15-2012 emergency amendment by operation of Government Code section 11346.1(f) (Register 2013, No. 32).

6. Repealer and new section heading, section and Note filed 1-28-2014; operative 1-28-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 5).