The Cancer Prevention and Research Institute of Texas (Institute) proposes amendments to §703.6 and §703.11, regarding the grants review process and the matching fund requirements.

As part of the grants review process, the Institute engages an independent third-party observer to attend peer review and review council meetings in order to confirm the correct processes are used. The proposed amendment to §703.6(g) would allow the Institute's Chief Compliance Officer, in place of a third-party observer, to attend and observe those meetings. Following the meetings, the Chief Compliance Officer shall report any issues to the Oversight Committee before a vote on award applications is taken. The proposed amendment would not preclude the Institute from contracting with an independent third-party to observe meetings. If a third-party is utilized, the third-party shall issue a report to the Chief Compliance Officer.

The Institute permits a grant recipient that is a public or private institution of higher education, as defined by §61.003, Texas Education Code, to credit toward the grant recipient's matching funds obligation the dollar amount equivalent to the difference between the indirect cost rate authorized by the federal government for research grants awarded to the grant recipient and the five percent (5%) indirect cost limit imposed by §102.203(c), Texas Health and Safety Code. The proposed amendment to §703.11(b) provides guidance for calculating the federal indirect cost rate applicable for the matching funds credit when the federal indirect cost rate changes during the project year. The proposed amendment to §703.11(c) addresses how encumbered funds expended by subcontractors or subawardees on the grant project may be counted as matching funds.

Kristen Pauling Doyle, General Counsel for the Cancer Prevention and Research Institute of Texas has determined that for the first five-year period the rule changes are in effect there will be no foreseeable implications relating to costs or revenues for state or local government as a result of enforcing or administering the rules.

Ms. Doyle has determined that for each year of the first five years the rule changes are in effect the public benefit anticipated as a result of enforcing the rules will be clarification of policies and procedures the Institute will follow to implement its statutory duties.

Ms. Doyle has determined that the rule shall not have an effect on small businesses or on micro businesses.

Written comments on the proposed rule changes may be submitted to Ms. Kristen Pauling Doyle, General Counsel, Cancer Prevention and Research Institute of Texas, P.O. Box 12097, Austin, Texas 78711, no later than January 26, 2015. Parties filing comments are asked to indicate whether or not they support the rule revisions proposed by the Institute and, if a change is requested, to provide specific text proposed to be included in the rule. Comments may be submitted electronically to kdoyle@cprit.state.tx.us. Comments may be submitted by facsimile transmission to 512/475-2563.

The rule changes are proposed under the authority of the Texas Health and Safety Code Annotated, §102.108 and §102.251, which provides the Institute with broad rule-making authority to administer the chapter. Kristen Pauling Doyle, the Institute's General Counsel, has reviewed the proposed amendment and certifies the proposal to be within the Institute's authority to adopt.

There is no other statute, article or code that is affected by these rules.