The Cancer Prevention and Research Institute of Texas (Institute) proposes an amendment to §§703.5, 703.6, 703.11, and 703.24. The proposed changes affect conflicts of interest prohibitions of Scientific Research and Prevention Program Committee Members, Product Development Review Council role in due diligence, the matching fund requirements of Academic Research and Product Development Research grantees, and disapproval of Financial Status Reports for untimely supporting documentation.

Background and Justification

The proposed amendment to §703.5(g) prohibits a Scientific Research and Prevention Programs Committee Member from providing professional services to a grant applicant that results in compensation of more than $5,000. The restriction would be in place for one year beginning from the due date of the Grant Application or the effective date of the Grant Award, whichever is later.

The proposed amendment to §703.6(c)(4)(B) reflects that the Product Development Review Council decides the applications moving forward in the review process for due diligence. The Review Council’s decision is based on the Grant Applications recommended by the Peer Review Panel(s).

The proposed amendment to §703.11(a) clarifies that the Institute may require a research grant recipient to demonstrate a matching funds obligation greater than one-half of the grant award amount. In the event that the Institute increases the matching funds obligation, the proposed language requires the Institute to include the obligation in the Request for Applications. Texas Health and Safety Code §102.0255 requires research grant recipients to dedicate an amount of matching funds equal to one-half of the grant award.

The proposed amendment to §703.24 allows the Institute to disapprove a Financial Status Report (FSR) if a Grant Recipient does not timely respond to a written request by the Institute for more information or backup documentation. If the Institute submits a request in writing for more information or backup documentation regarding an FSR, the Grant Recipient has 21 days to respond to the request. If there is no response by the Grant Recipient within that timeframe, the FSR will be disapproved. The proposed amendment is not intended to restrict the Institute’s ability to disapprove an FSR or to extend the Grant Recipient’s FSR due date.

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 April 3, 2017. 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.texas.gov. Comments may be submitted by facsimile transmission to 512/475-2563.

Statutory Authority

The amendments are proposed under the authority of the Texas Health and Safety Code Annotated, §102.108 and §102.251, which provide the Institute with broad rule-making authority to administer the chapter and to issue rules regarding the procedures for awarding grants. Kristen Pauling Doyle, the Institute’s General Counsel, has reviewed the proposed amendments 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 this proposal.