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[[underlined]] Proposed Amendment to the Bylaws of the Board of Regents [[/underlined]]

Mr. Humelsine noted that the following proposed bylaw is intended to alert members of the Board to situations where they or an organization with which they are involved might have business or financial transactions directly with the Institution.  Any such transactions should be disclosed to the Executive Committee so the Regents will have a document to be filed for the record, or as the basis for an appropriate motion, toe alleviate a possible conflict of interest or its appearance.  It is limited to a Regent's business or financial involvement directly with the Smithsonian, and thus, for example, would not normally cover transactions such as Smithsonian purchase of stock in a corporation in which a Regent may have some financial interest.  This proposed bylaw is consistent with and makes explicit the Regents obligation as trustees.

Section 2.10 [[underlined]] Disclosure [[/underlined]]:

A member of the Board of Regents shall disclose in writing to the Executive Committee any financial transaction or business dealing with the Institution in which such member has a direct involvement.

It was recognized that this amendment was presented to the Board of Regents for its initial discussion only.  In accordance with the provisions of Section 1.02, and as confirmed by the Regents, the proposed Section 2.10 will be laid over for formal approval at the May 5, 1986 meeting of the Board.