The Cancer Prevention and Research Institute of Texas (Institute) proposes amendments to §§703.3, 703.11 - 703.14, 703.20, and 703.21 regarding requests for applications, clarification on grant applications, matching form due dates, grantee audit requirements, no cost extensions, tobacco free policy waivers, and report due dates along with report approval rules. The proposed changes affect the application process as well as grantee requirements.

Background and Justification

§703.3 is first amended to remove the requirement that a Request for Applications (RFAs) be published in the Texas Register. RFAs will still be published on CPRIT's website and announced via an electronic list serve messaging service. This amendment removes a duplicative step in the RFA process that is less effective than other methods used to publish RFAs.

The second change to §703.3 adds a new subsection to clarify that CPRIT staff or CPRIT's third party grants administrator may contact the grant applicant to seek clarification on information provided in the grant application or to request additional information to facilitate the administrative review process. This change addresses occasional issues that arise when information on a document submitted by a grant applicant is unclear or the document appears to be missing a page. Requests for clarification or additional information must be approved by the Program Officer before the grant applicant is contacted. A record of requests will be made for review by the Chief Compliance Officer.

§703.11 is amended to change the due date of matching verification forms. Currently, these forms are due 60 days after the anniversary date of the effective date of the grant contract. Matching verification forms are based on grantee expenditures as reported in each Financial Status Report (FSRs) and cannot be completed until the last FSR of the last quarter of the fiscal year is submitted. FSRs are due 90 days after the end of the fiscal quarter, which occurs after the current due date of the matching verification form. This amendment changes the matching verification form due date so that it falls after the submission of the last quarter FSR.

§703.13 is amended to remove "program specific independent audit" from the accepted ways a grantee can fulfill the audit requirement. Grantees who expend $500,000 or more in state awards during its fiscal year are required to submit an audit. Currently an audit must be completed in one of the following formats: a single independent audit, a program specific audit, or an agreed upon procedures engagement. CPRIT's internal auditor recommended that CPRIT remove "program specific independent audit" from its administrative rules because it is duplicative of the agreed upon procedures, which was developed by CPRIT's internal auditor.

§703.14 is amended to implement a process for reviewing and approving no cost extensions that are requested after the specified due date. By rule, no cost extensions are due no sooner than 180 days and no later than 30 days before the end date of the grant contract. The amendment allows the Chief Executive Officer (CEO) to review and approve a request submitted outside the specified time and approve it for good cause. If approved, the CEO must provide a written justification to the Oversight Committee.

§703.20 is amended to specify what a grantee must do in order to request a waiver to the tobacco free policy for research purposes. If a research project is conducted at the entity that requires tobacco, the grantee must specify the research project conducted with the use of tobacco as well as the location for the waiver to be considered for approval.

§703.21 is amended to allow a grantee more time in filing required grantee reports if the execution date of a grant contract occurs after the effective date. Due date of grantee reports are based off of the effective date of a grant contract; however, in some cases a contract is not executed until after the effective date thus giving a grantee less time to submit reports. The rule change permits the Program Officer to approve time to submit reports that are late because of a delay in starting the project after the effective date. This rule is also amended to require the following reports be approved by CPRIT (as opposed to submitted) in order for a grantee to receive disbursement of grant funds: matching funds, progress reports (including annual, quarterly, and final), and FSRs. This change was recommended by CPRIT's internal auditors.

Fiscal Note

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.

Public Benefit and Costs

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.

Small Business and Micro-business Impact Analysis

Ms. Doyle has determined that the rule changes 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 4, 2016. 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.

Statutory Authority

The rule changes are proposed under the authority of the Texas Health and Safety Code Annotated, §102.108, 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.