| (a) Except as addressed by the Request for Applications
or this rule, only Texas-based entities are eligible to receive Grant
Awards.
(b) Grant Applicants responding to a Request for Applications
may be located outside the state of Texas when the Grant application
is submitted and reviewed. However, the Institute requires the Grant
Applicant to demonstrate that it will relocate to Texas as a condition
of the Grant Award.
(c) A Grant Applicant for a Product Development Grant
Award may demonstrate compliance with subsection (b) by fulfilling
a majority of the following requirements:
(1) The U.S. headquarters is physically located in
Texas;
(2) The Chief Executive Officer resides in Texas;
(3) A majority of the company's personnel, including
at least two other C-level employees (or equivalent) reside in Texas;
(4) Manufacturing activities take place in Texas;
(5) At least 90% of Grant Award funds are paid to
individuals and entities in Texas, including salaries and personnel
costs for employees and contractors;
(6) At least one clinical trial site in Texas; and
(7) Collaboration with a medical research organization
in Texas, including a public or private institution of higher education.
(d) The location criteria to be fulfilled by the Grant
Recipient are reflected in the Grant Contract.
(e) Unless otherwise specified by the Grant Contract,
the Grant Recipient must fulfill the requirements within one year
of receiving the disbursement of Grant Award funds.
(f) The Grant Recipient will report on the location
criteria at least annually.
(g) The Institute will monitor compliance with this
policy. Failure to meet and maintain the Texas location requirements
may result in suspension of the Grant Award, termination of the Grant
Contract, repayment of Grant Award funds; or other appropriate action
as determined by the Chief Executive Officer and reported to the Oversight
Committee.
(h) Nothing herein prohibits the Grant Recipient from
proposing and the Institute from approving one or more alternative
or additional location requirements. The Chief Executive Officer shall
notify the Oversight Committee of the alternative criteria at an open
meeting. The proposed alternative location requirement is approved
unless a simple majority of the Oversight Committee votes to reject
the Chief Executive Officer's recommendation.
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