The Cancer Prevention and Research Institute of Texas ("CPRIT" or "the Institute") adopts an amendment to §703.11, concerning Requirement to Demonstrate Available Funds for Cancer Research Grants, without changes to the proposed text as published in the March 27, 2015, issue of the Texas Register (40 TexReg 1810).

Reasoned Justification

Texas Health and Safety Code §102.255(d) requires CPRIT grantees to have encumbered funds equal to one-half of the amount of the grant award. The rule clarifies how grant funds awarded by other granting organizations or the grantee's own funds may count towards the matching fund requirement of a CPRIT grant.

Summary of Public Comments and Staff Recommendations

The Institute accepted public comments in writing and by fax through April 27, 2015. CPRIT received one comment from Dr. Wolfram Siede at Santa Fe BioLabs, LLC. Dr. Siede contends that the language does not provide enough direction to universities and would prevent funds form benefiting the CPRIT grant project. As explained below, the Institute declines to change the proposed amendment. The amendment to Chapter 703, §703.11, is adopted as published in the March 27, 2015, issue of the Texas Register and will not be republished.

Dr. Siede suggests alternative language for the proposed amendment: "must be spent directly on the Grant Project within the grant period as directed by the principal investigator." He contends that the language as originally proposed would allow too much leeway for universities. As an example, Dr. Siede expressed concern that money spent on new carpet for the library may be construed as appropriate matching funds.

Response: The Institute declines to make the requested change to §703.11. The suggestion is too narrowly written to provide guidance to grant recipients. The amendment as originally proposed allows institutions of higher education to use non-CPRIT funds to fulfill the matching requirement if the money is spent on activities that are sufficiently related to the CPRIT project so that the work maintained by the matching funds supports, extends, or facilitates the CPRIT project. CPRIT notes other rule provisions governing matching funds address concerns raised by Dr. Siede. For example, §703.11(a) and (g) require that matching funds be spent after the effective date of the grant and within the project period. Section 703.11(j) requires the grant recipient to maintain adequate documentation regarding the source and use of matching funds, and such documentation may be subject to an audit annually. This permits CPRIT to examine the source of funds claimed to fulfill the matching requirement and determine whether those funds support, extent, or facilities the CPRIT project.

Statutory Authority

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