| (a) For purposes of this chapter, a Conflict of Interest
exists when an individual subject to this rule has an interest in
the outcome of a Grant Application submitted by an entity receiving
or applying to receive money from the Institute such that the individual
is in a position to gain financially, professionally, or personally
from either a positive or negative evaluation of the Grant Application.
Individuals subject to this rule are:
(1) Oversight Committee Members;
(2) Institute employees;
(3) Scientific Research and Prevention Programs Committee
Members;
(4) Program Integration Committee Members; and
(5) Independent Contractors that perform services associated
with the Grant Review Process on behalf of the Institute, such as
facilitating grant review activities, evaluating the intellectual
property held by or licensed to a Grant Applicant, or performing a
business management due diligence review.
(b) Except under exceptional circumstances as provided
in §702.17 of this chapter (relating to Exceptional Circumstances
Requiring Participation), an individual who has a financial, professional,
or personal interest, as set forth herein, in an entity receiving
or applying to receive money from the Institute shall recuse himself
or herself and may not participate in the review, discussion, deliberation,
or vote related to the entity.
(c) A financial Conflict of Interest exists if the
individual subject to this rule or a Relative of the individual subject
to this rule:
(1) Owns or controls, directly or indirectly, an ownership
interest in an entity receiving or applying to receive money from
the Institute or in a foundation or similar organization affiliated
with the entity;
(A) Interests subject to this provision include sharing
in profits, proceeds, or capital gains. Examples of ownership or control,
include but are not limited to owning shares, stock, or otherwise,
and are not dependent on whether voting rights are included;
(B) It is not a financial Conflict of Interest if the
ownership interest is limited to shares owned via an investment in
a publicly traded mutual fund or similar investment vehicle so long
as the individual subject to this rule does not exercise any discretion
or control regarding the investment of the assets of the fund or other
investment vehicle;
(2) Could reasonably foresee that an action taken by
the Scientific Research and Prevention Programs Committee, the Program
Integration Committee, the Institute, or its Oversight Committee related
to an entity receiving or applying to receive money from the Institute
could result in a financial benefit to the individual; or
(3) Has received a financial benefit from the Grant
Applicant unrelated to the Grant Application of more than $5,000 within
the past twelve months. This total includes fees, stock and other
benefits. It also includes current stock holdings, equity interest,
intellectual property or real property interest, but does not include
diversified mutual funds or similar investment vehicle in which the
person does not exercise any discretion or control regarding the investment
of the assets of the fund or other investment vehicle.
(d) For purposes of this rule, a professional Conflict
of Interest exists if the individual subject to this rule or a Relative
of the individual subject to this rule:
(1) Is a member of the board of directors, other governing
board or any committee of an entity or of a foundation or similar
organization affiliated with an entity receiving or applying to receive
money from the Institute during the same Grant Review Cycle;
(2) Serves as an elected or appointed officer of an
entity receiving or applying to receive money from the Institute or
of a foundation or similar organization affiliated with the entity;
(3) Is an employee of or is negotiating future employment
with an entity receiving or applying to receive money from the Institute
or a foundation or similar organization affiliated with the entity;
(4) Represents in business or law, including actively
seeking to represent, an entity receiving or applying to receive money
from the Institute or a foundation or similar organization affiliated
with the entity;
(A) Representation that constitutes a professional
Conflict of Interest includes providing services as a consultant or
contractor;
(B) "Actively seeking to represent" includes activities
such as responding to a request for proposals or qualifications issued
by the entity applying to receive money from the Institute, providing
a solicited or unsolicited proposal for work to the entity applying
to receive money from the Institute, and negotiating terms of service
for representation even if a final agreement has not yet been executed;
(C) For the purposes of this rule, an individual is
no longer considered to be actively seeking to represent an entity
if that entity has selected another provider or has notified the individual
that the individual's services are not needed;
(5) Is a colleague, scientific mentor, or student of
a Senior Member or Key Personnel of the research or prevention program
team listed on the Grant Application, or is conducting or has conducted
research or other significant professional activities with a Senior
Member or Key Personnel of the research or prevention program team
listed on the Grant Application within three years of the date of
the review;
(6) Is a student, postdoctoral associate, or part of
a laboratory research group for a Senior Member or Key Personnel of
the research or prevention program team listed on the Grant Application
or has been within the past six years;
(7) Is engaged or is actively planning to be engaged
in collaboration with a Senior Member or Key Personnel of the research
or prevention program team listed on the Grant Application; or
(8) Has long-standing scientific differences or disagreements
with a Senior Member or Key Personnel of the research or prevention
program team listed on the Grant Application that are known to the
professional community and could be perceived as affecting objectivity.
(e) For purposes of this rule, a personal Conflict
of Interest exists if a Senior Member or Key Personnel of the research
or prevention program team listed on the Grant Application or an applicant
is a Relative or close personal friend of an individual subject to
this rule.
(f) Nothing herein shall prevent the Oversight Committee
from adopting more stringent standards with regard to prohibited conflicts
of interest.
(g) The General Counsel and Chief Compliance Officer
may provide guidance to individuals subject to this section on what
interests would constitute a Conflict of Interest or an appearance
of a Conflict of Interest.
|
| Source Note: The provisions of this §702.11 adopted to be effective July 13, 2009, 34 TexReg 4640; amended to be effective February 11, 2010, 35 TexReg 872; amended to be effective March 2, 2014, 39 TexReg 1385; amended to be effective June 12, 2016, 41 TexReg 4027 |
