The Cancer Prevention and Research Institute of Texas ("CPRIT" or "the Institute") adopts amendments to §703.6 and §703.11, regarding the grants review process and the matching fund requirements, without changes to the rule text as published in the December 26, 2014, issue of the Texas Register (39 TexReg 10185).

Reasoned Justification

The rule changes affect the grants review process and clarify both the calculation of federal indirect cost rate for institutions of higher education and the matching fund requirement. The amendment to §703.6(g) allows the Institute's Chief Compliance Officer, in place of a third-party observer, to attend and observe peer review meetings. The Chief Compliance Officer would then be required to report to the Oversight Committee any issues that may have occurred. The changes to §703.11 provide guidance for institutions of higher education in calculating their federal indirect cost rate, which is applicable to the matching funds credit, as well as address how funds spent by subcontractors or subawardees may be calculated as part of a grantee's matching requirement.

Summary of Public Comments and Staff Recommendations

The Institute accepted public comments in writing and by fax through January 26, 2015. Comments were received from The University of Texas M.D. Anderson Cancer Center ("M.D. Anderson") regarding proposed rule changes to §703.6 and §703.11. These were the only comments received. M.D. Anderson's comment relating to §703.6(e)(1) does not address the rule subsection that CPRIT proposes to amend and is not germane to the Institute's proposed rulemaking. M.D. Anderson's comment regarding the proposed change to §703.11 seeks clarity on the proposed amendment, but does not require a change to the proposed text. The amendments to Chapter 703 rules will be adopted as published in the December 26, 2014, issue of the Texas Register and will not be republished.

§703.6, Grants Review Process

M.D. Anderson submitted a proposed change to the grant application process set forth in §703.6(e)(1). The proposed change would incorporate a letter of intent process for grant mechanisms that are subject to the preliminary evaluation stage of review. M.D. Anderson did not offer comments or changes regarding the Institute's proposed rule changes to §703.6(g) affecting the third party observer.

Response: The Institute declines to make the requested change to §703.6(e). M.D. Anderson's proposed change to the grant application process is not responsive to the proposed rulemaking as published by the Institute in the Texas Register.

§703.11, Requirement to Demonstrate Available Funds for Cancer Research Grants

M.D. Anderson requested clarity or alternate language for the proposed rule change to §703.11(c)(6) relating to the calculation of subcontractor or subawardee funds as part of the required match of the grantee. M.D. Anderson did not indicate opposition to the proposed rule change.

Response: The Institute declines to change the proposed rule. For clarity, the following example is provided for additional guidance regarding the allowable amount of matching funds a subcontractor or subawardee may contribute may contribute toward the total matching fund requirement for the CPRIT grant project.

For a grantee that receives a $1,000,000 CPRIT grant and pays a subcontractor $300,000 for work conducted in furtherance of the CPRIT funded grant project, the grantee may contribute up to 30% of the grantee's total matching funds requirement. In this example, the grantee's matching fund obligation is $500,000. The subcontractor may contribute up to $150,000 (30%) toward the grantee's $500,000 matching fund requirement. As stated in the proposed rule change, the subcontractor's funds must be spent on the grant project.

The Oversight Committee approved the final order adopting the amendments to Chapter 703 rules on February 18, 2015.

Statutory Authority

The amendments are adopted under the authority of the Texas Health and Safety Code Annotated, §102.108 and §102.251, which provide the Institute with broad rulemaking authority to administer the chapter.