Texas Register

TITLE 25 HEALTH SERVICES
PART 11CANCER PREVENTION AND RESEARCH INSTITUTE OF TEXAS
CHAPTER 703GRANTS FOR CANCER PREVENTION AND RESEARCH
RULE §703.12Limitation on Use of Funds
ISSUE 03/25/2016
ACTION Proposed
Preamble Texas Admin Code Rule

(a)A Grant Recipient may use Grant Award funds only for Cancer Research and Cancer Prevention projects consistent with the purpose of the Act, and in accordance with the Grant Contract. Grant Award funds may not be used for purposes other than those purposes for which the grant was awarded. The Institute may require a Grant Recipient to repay Grant Award funds if the Grant Recipient fails to expend the Grant Award funds in accordance with the terms and conditions of the Grant Contract and the provisions of this chapter.

(b)Grant Award funds must be used for Authorized Expenses.

  (1)Expenses that are not authorized and shall not be paid from Grant Award funds, include, but are not limited to:

    (A)Bad debt, such as losses arising from uncollectible accounts and other claims and related costs.

    (B)Contributions to a contingency reserve or any similar provision for unforeseen events.

    (C)Contributions and donations made to any individual or organization.

    (D)Costs of entertainment, amusements, social activities, and incidental costs relating thereto, including tickets to shows or sports events, meals, alcoholic beverages, lodging, rentals, transportation and gratuities.

    (E)Costs relating to food and beverage items, unless the food item is related to the issue studied by the project that is the subject of the Grant Award.

    (F)Fines, penalties, or other costs resulting from violations of or failure to comply with federal, state, local or Indian tribal laws and regulations.

    (G)An honorary gift or a gratuitous payment.

    (H)Interest and other financial costs related to borrowing and the cost of financing.

    (I)Legislative expenses such as salaries and other expenses associated with lobbying the state or federal legislature or similar local governmental bodies, whether incurred for purposes of legislation or executive direction.

    (J)Liability insurance coverage.

    (K)Benefit replacement pay or legislatively-mandated pay increases for eligible general revenue-funded state employees at Grant Recipient state agencies or universities.

    (L)Professional association fees or dues for the Grant Recipient or an individual.

    (M)Promotional items and costs relating to items such as T-shirts, coffee mugs, buttons, pencils, and candy that advertise or promote the project or Grant Recipient.

    (N)Patient support services costs relating to services such as personal care items and financial assistance for low-income clients.

     (O)Fees for visa services.

  (2)Additional guidance regarding Authorized Expenses for a specific program may be provided by the terms of the Grant Contract and by the Uniform Grant Management Standards (UGMS) adopted by the Comptroller's Office. If guidance from UGMS on a particular issue conflicts with a specific provision of the Grant Contract, Chapter 102, Texas Health and Safety Code, or the Institute's administrative rules, then the Grant Contract, statute, or Institute administrative rule shall prevail.

  (3)The Institute is responsible for making the final determination regarding whether an expense shall be considered an Authorized Expense.

(c)A Grant Recipient of Grant Award funds for a Cancer Research or Cancer Prevention project may not spend more than five percent (5%) of the Grant Award funds for Indirect Costs.

(d)The Institute may not award more than five percent (5%) of the total Grant Award funds for each fiscal year to be used for facility purchase, construction, remodel, or renovation purposes during any year. Any Grant Award funds that are to be expended by a Grant Recipient for facility purchase, construction, remodel, or renovations are subject to the following conditions:

  (1)The use of Grant Award funds must be specifically approved by the Chief Executive Officer with notification to the Oversight Committee;

  (2)Grant Award funds spent on facility purchase, construction, remodel, or renovation projects must benefit Cancer Prevention and Research;

  (3)If Grant Award funds are used to build a capital improvement, then the state retains a lien or other interest in the capital improvement in proportion to the percentage of the Grant Award funds used to pay for the capital improvement. If the capital improvement is sold, then the Grant Recipient agrees to repay to the state the Grant Award funds used to pay for the capital improvement, with interest, and share with the state a proportionate amount of any profit realized from the sale.

(e)The Institute may not award more than ten percent (10%) of the money awarded from the Cancer Prevention and Research Fund or from the proceeds of bonds issued on behalf of the Institute to be used for Cancer Prevention and Control programs during any year. Grant Awards for Cancer Prevention research projects shall not be counted toward the Grant Award amount limit for Cancer Prevention and Control Programs. For purposes of this subsection, the Institute is presumed to award the full amount of funds available. At the first regular Oversight Committee meeting of the fiscal year, the Chief Executive Officer shall report that full amount of Grant Award funds available to be awarded for the fiscal year subject to periodic updates announced at regular meetings of the Oversight Committee.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on March 9, 2016

TRD-201601195

Heidi McConnell

Chief Operating Officer

Cancer Prevention and Research Institute of Texas

Earliest possible date of adoption: April 24, 2016

For further information, please call: (512) 463-3190



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