The 708 Board is considering what some will probably consider long over due conflict of interest rules at its meeting Tuesday, March 25th at 6 PM at its building north of Route 176 and west of Terra Cotta Road (as opposed to Terra Cotta Avenue, which is Rt 176.)

There are two streets named “Terra Cotta” near the 708 Board office building.

Here are the guts of the report to be considered:

Conflict of Interest situations may include but are not limited to, the following:

Financial or material gain or business advantage results from a contract or relationship with a vendor providing services or products to the Mental Health Board which they influence, or

From a policy or decision of the Mental Health Board, or

From information gained through responsibilities as a member of the Mental Health Board, or

When a member’s relationship with another member, consultant or vendor will intrude upon their judgment or decision-making, or

When a policy or decision would favor an entity in which a member has a significant relationship.

1. Full disclosure, in writing, shall be made by the interested parties to the Executive Director in all conflicts of interest, including but not limited to the following:

• A board member is related to another board member or staff member by blood, marriage or domestic partnership.
• A staff member in a supervisory capacity is related to another staff member who they supervise.
• A board member or their organization stands to benefit from a McHenry County Mental Health  Board transaction or staff member of such organization receives payment from the McHenry
  County Mental Health Board for any subcontract, goods, or services other than as a part of their regular job responsibilities.
• A board member has a family member on the Board or sits on the Board directly or has a family member who is employed by an organization that receives funding from the McHenry County Mental Health Board.
• A board member or staff member is a member of the governing body of a contributor to the McHenry County Mental Health Board.
• A volunteer working on behalf of the McHenry County Mental Health Board who meets any of the situation or criteria listed above.

2. All staff and volunteers shall complete the Conflict of Interest Disclosure Form (Attachment A) at  the time of hire and annually as a part of the Performance Appraisal process.

3. Board members shall complete the Conflict of Interest Disclosure form at the beginning of their term of service and annually thereafter.

4. Following full disclosure of a possible conflict of interest, the Executive Director shall determine whether a conflict exists. The Executive Director may request legal counsel opinion, if necessary.

5. An interested board member, staff or volunteer shall not participate in any discussion or debate in which the subject of discussion is a contract, transaction, policy, or situation in which there may be a perceived or actual conflict of interest. However, they may be present unless directed otherwise by the Executive Director or Board President to provide clarifying information in such a discussion or debate as allowed by the Corporate Attorney.

6. Anyone in a position to make decisions about the financial resources of the McHenry County Mental Health Board, who also stands to benefit from that decision, has a duty to disclose that conflict as soon as it arises or become apparent. They may not participate in any final decisions.

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I see two problems with the proposed policy:

1. In “3. Board members shall complete the Conflict of Interest Disclosure form at the beginning of their term of service and annually thereafter,” the form should be updated annually or within a short time after any change that might put the member in a conflict of interest occurs.
2. There is no enforcement section. What is the penalty for violating the conflict of interest rules?