Section 1120.5013  Conflicts of Interest

a)         An individual has a direct pecuniary interest in a contract when the individual is owed a payment in conjunction with performance of a contract, including but not limited to finders fees and commission payments.

b)         Distributable income means the income of a company after payment of all expenses, including employee salary and bonus, and retained earnings, and the remaining amount is actually distributed to those entitled to receive a share of such income.  In the case of a for-profit corporation, distributable income means "dividends".  When calculating entitlement to distributable income, the entitlement shall be determined at the end of the company's most recent fiscal year.

c)         This Section does not apply to contracts with licensed professionals provided such contracts are competitively bid.  (For purposes of this Section, "bid" means procured pursuant to the competitive procedures identified in Subpart E of this Part.)