The Cancer Prevention and Research Institute of Texas ("CPRIT" or "the Institute") proposes amendments to 25 Texas Administrative Code §703.11 and §703.23, relating to the requirements for a grant recipient to provide supporting documentation for matching funds and the Institute's payment of advance funds.

Background and Justification

The proposed change to §703.11 requires a grant recipient to submit all supporting documentation for matching funds expenditures at the time that it files its matching fund verification form. Texas law requires that research grant recipients expend their own funds equal to at least one half of grant funds. The grant recipient submits a matching compliance form to CPRIT indicating that it has expended the required amount of matching funds. With this proposed rule amendment, the grant recipient must also submit supporting documentation showing the expenditures made with matching funds at the same time the grant recipient files its matching compliance form. This change assists the Institute in verifying that the grant recipient has accurately calculated and expended the required amount of matching funds. The rule amendment also explains that the Institute will not review or approve a matching compliance form until the grant recipient has uploaded all supporting documentation for the applicable matching funds compliance form.

The proposed change to §703.23 allows the Institute to withhold payment of up to ten percent (10%) of the grant award for grant recipients who receive advance payment of grant funds. CPRIT will not disburse the retained amount to the grant recipient until the grant recipient fulfills all applicable grant award close out requirements and the Institute has approved the grant recipient's required reports. While most grant recipients receive grant funds on a reimbursement basis, CPRIT's statute and administrative rules allow for CPRIT to advance grant funds to grant recipients. Holding back payment of the final 10% helps to ensure that the grant recipient meets the requirements of the grant contract before receiving final payment on a grant award and limits the amount of outstanding CPRIT funds. The proposed amendment includes a process allowing the Institute's CEO to approve for good cause a grant recipient's request that CPRIT retain less than 10% of the grant award.

Fiscal Note

Kristen Pauling Doyle, Deputy Executive Officer and General Counsel for the Cancer Prevention and Research Institute of Texas, has determined that for the first five-year period the rule change is in effect, there will be no foreseeable implications relating to costs or revenues for state or local government due to 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 due to enforcing the rules will be clarifying processes regarding submission of required documents demonstrating the grant recipient's compliance with the matching fund requirement.

Small Business, Micro-Business, and Rural Communities Impact Analysis

Ms. Doyle has determined that the rule changes will not affect small businesses, micro businesses, or rural communities.

Government Growth Impact Statement

The Institute, in accordance with 34 Texas Administrative Code §11.1, has determined that during the first five years that the proposed rule changes will be in effect:

(1) the proposed rule changes will not create or eliminate a government program;

(2) implementation of the proposed rule changes will not affect the number of employee positions;

(3) implementation of the proposed rule changes will not require an increase or decrease in future legislative appropriations;

(4) the proposed rule changes will not affect fees paid to the agency;

(5) the proposed rule changes will not create new rules;

(6) the proposed rule changes will not expand existing rules;

(7) the proposed rule changes will not change the number of individuals subject to the rules; and

(8) The rule changes are unlikely to have an impact on the state's economy. Although the changes are likely to have neutral impact on the state's economy, the Institute lacks enough data to predict the impact with certainty.

Submit written comments on the proposed rule changes 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 13, 2020. The Institute asks parties filing comments to indicate whether 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 Institute proposes the rule changes 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. Ms. Doyle 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 affected by these rules.