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influence the recipient to engage in conduct which would amount to a conflict of interests. <br /> The written standards shall also include standards of conduct covering organizational <br /> conflicts of interest, in which the SUBRECIPIENT may be unable or appears to be unable to <br /> be impartial in conducting procurement actions due to relationships between the <br /> SUBRECIPIENT and relationships with a parents company, affiliate, or subsidiary <br /> organization. The written standards provided by the SUBRECIPIENT will include disciplinary <br /> actions to be applied for violations of such standards. <br /> d. Copeland "Anti-kickback" Act.-Any Contractor paid in full or part with CDBG funds will <br /> comply with the Copeland Anti-Kickback Act (18 U.S.0 874) as supplemented in Department <br /> of Labor regulations (29 CFR part 3)that states whoever, by force, intimidation, or threat of <br /> procuring dismissal from employment, or by any other manner whatsoever induces any <br /> person employed in the construction, prosecution, completion or repair of any public <br /> building, public work, or building or work financed in whole or in part by loans or grants <br /> from the United States, to give up any part of the compensation to which he is entitled <br /> under his contract of employment, shall be fined under this title or imprisoned not more <br /> than five years, or both. Though CDBG funds shall not be used to pay for the construction, <br /> prosecution, completion or repair of buildings the SUBRECIPIENT affirms that by accepting <br /> CDBG funds, the SUBRECIPIENT will comply with the Copeland "Anti-Kickback" Act. <br /> XXI. PROGRAM INCOME: Program income shall herein be defined as gross income received by <br /> the SUBRECIPIENT directly derived or generated from the use of CDBG funds. Program <br /> income includes, but is not limited to: <br /> a. Fees for services performed, <br /> b. Use or rental of real personal property acquired under Federal awards, <br /> c. The sale of commodities or items fabricated under a Federal award, <br /> d. License fees and royalties on patents and copyrights, <br /> e. And principal and interest on loans made with Federal award money. <br /> SUBRECIPIENT agrees that unless otherwise stated in this section,the SUBRECIPIENT <br /> shall follow the program income requirements as outlined in § 200.307 of the Omni <br /> Circular. <br /> SUBRECIPIENT understands and agrees that all program income shall be the <br /> property of the CITY, which shall have the exclusive right to determine the use and <br /> disposition of said income except for fees for services which are used as part of the <br /> operating budget. However, such exempt fees must be small so as not to prevent <br /> participation of Low and Middle Income participants. SUBRECIPIENT will remit all <br /> other said income the CITY. Said remittance shall be submitted annually and <br /> accompany the Final Report. <br /> SUBRECIPIENT acknowledges that interest earned on advances of Federal funds, <br /> rebates, credits and discounts do not count as program income. <br /> 14 <br />