The Cancer Prevention and Research Institute of Texas ("CPRIT" or "the Institute") proposes amending 25 Texas Administrative Code §§703.11 (relating to the eligibility of certain grant recipient expenses to quality as matching grant funds) and 703.24 (relating to submission of corrections to grant recipient documentation supporting Financial Status Reports.) The Institute further proposes amendments to 25 Texas Administrative Code §§703.10, 703.15, and 703.26 to references to Uniform Grant Management Standards with Texas Grant Management Standards.

Background and Justification

The proposed amendment to §703.11(c) adds a new paragraph (7) allowing a grant recipient to count expenditures the grant recipient incurs for relocating its operations and personnel to Texas toward the grant recipient's matching funds obligation. Texas Health and Safety Code § 102.255(c) requires a research grant recipient to dedicate an amount of matching funds equal to one-half of the amount of the research grant awarded. Section 703.11 provides examples of eligible grant recipient expenditures to fulfill the matching funds requirement. Grant recipients who relocate to Texas to carry out the goals and objectives of their CPRIT grant may be eligible to count those relocation expenses as matching funds.

The proposed amendment to §703.24(a)(5) requires a grant recipient to provide information necessary to correct a deficiency in the supporting documentation of a Financial Status Report (FSR) within five (5) business days of a request from the Institute. If the grant recipient fails to provide the requested information, the Institute may disapprove the FSR. Currently, CPRIT permits a grant recipient 21 days to respond to a request regarding FSR supporting documentation. Changing the response time to 5 business days will expedite review of FSR supporting documentation.

The proposed amendments to §§703.10(c)(11), 703.15(b)(3), and 703.26(b) update outdated references to Uniform Grant Management Standards (UGMS) in the Institute's administrative rules with the new Texas Grant Management Standards (TxGMS) references. The Comptroller of Public Accounts published TxGMS to replace UGMS effective 2022. The Institute refers grant recipients to TxGMS, when there are not Institute-specific guidelines within CPRIT's statute and/or administrative rules.

Fiscal Note

Kristen Pauling Doyle, Deputy Executive Officer and General Counsel for CPRIT, 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 change is in effect the public benefit anticipated due to enforcing the rule will be clarifying grantee reporting obligations and consequences.

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

Ms. Doyle has determined that the rule change 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 change will be in effect:

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

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

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

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

(5) the proposed rule change will not create new rule;

(6) the proposed rule change will not expand existing rule;

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

(8) The rule change is unlikely to have an impact on the state's economy. Although the change is 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 change to Ms. Kristen Pauling Doyle, General Counsel, Cancer Prevention and Research Institute of Texas, P.O. Box 12097, Austin, Texas 78711, no later than October 3, 2022. The Institute asks parties filing comments to indicate whether they support the rule revision proposed by the Institute and, if the party requests a change, to provide specific text for the proposed change. Parties may submit comments electronically to kdoyle@cprit.texas.gov or by facsimile transmission to (512) 475-2563.

Statutory Authority

The Institute proposes the rule change 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.

There is no other statute, article, or code affected by these rules.