1. Purpose

1.01. Compliance With Federal Policy. The purpose of this agreement is to comply with the applicable federal policy requiring grantee institutions employing more than 50 persons to maintain a financial conflict of interest policy.

1.02. Federal Requirements. The federal government has established minimum standards for the grantees' policies and has required certifications from principal investigators, co-principal investigators, and authorized institutional representatives.

2. Financial Disclosures

2.01. Definitions

a. "Investigator" means the principal investigator, co-principal investigators, and any other person at Texas State responsible for the design, conduct, or reporting of research or educational activities funded or proposed for funding by the federal government.

b. "Significant financial interest" means anything of monetary value, including:

(1) salary or other payments for services (e.g., consulting fees or honoraria);

(2) equity interests (e.g., stocks, stock options, or other ownership interests);

(3) intellectual property rights (e.g., patents, copyrights, and royalties from such rights).

c. "Significant financial interest" does not include:

(1) salary, royalties, or other remuneration from Texas State;

(2) income from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;

(3) income from service on advisory committees or review panels for public or nonprofit entities; or

(4) financial interests in business enterprises or entities if the value of such interest does not exceed $10,000 or represent more than a 5% ownership interest for any one enterprise or entity when aggregated for the investigator and the investigator's spouse and dependent children.

2.02. Disclosures. Each investigator must disclose all significant financial interests of the investigator (including those of the investigator's spouse and dependent children):

a. that would reasonably appear to be directly and significantly affected by the research or educational activities funded or proposed for funding by the federal government; or

b. entities whose financial interests would reasonably appear to be directly and significantly affected by such activities.

2.03. University's Representative. The disclosure must be to the Associate Vice President for Research and Sponsored Programs, who is designated as Texas State's responsible representative.

2.04. Time of Disclosure. Investigators must provide the required financial disclosures at the time the proposal is submitted to the federal government, using the attached Investigator's Disclosure Statement. Investigators must update their disclosures during the pendency of the award, either on an annual basis, or as new reportable significant financial interests are obtained.

3. Persons To Review Disclosures And Resolve Problems

3.01. Reviewing Financial Disclosures. The Associate Vice President for Research and Sponsored Programs will review financial disclosures, determine whether an actual or potential conflict of interest exists, and determine what conditions or restrictions, if any, Texas State should impose to manage, reduce, or eliminate such conflicts of interest.

3.02. Determining Conflict Of Interest. An actual or potential conflict of interest exists when the Associate Vice President for Research and Sponsored Programs reasonably determines that a significant financial interest could affect the design, conduct, or reporting of the research or educational activities funded or proposed for funding by the federal government.

4. Enforcement Mechanisms

4.01. Managing Potential Conflicts. Examples of conditions or restrictions that might be imposed to manage, reduce, or eliminate actual or potential conflicts of interest include:

a. public disclosure of significant financial interests;

b. monitoring research by independent reviewers;

c. modification of the research plan;

d. disqualification from participation in the portion of the federal government-funded research that would be affected by the significant financial interests;

e. divestiture of significant financial interests; or

f. severance of relationships that create actual or potential conflicts.

4.02. Research Without Conditions or Restrictions. If the Associate Vice President for Research and Sponsored Programs determines that imposing conditions or restrictions would be either ineffective or inequitable, and that the potential negative impacts that may arise from a significant financial interest are outweighed by the interests of scientific progress, technology transfer, or the public health and welfare, then he/she may allow the research to go forward without imposing such conditions or restrictions.

4.03. Disciplinary Sanctions. An investigator who fails to follow this policy is subject to disciplinary sanctions as provided by university policy. If the Associate Vice President for Research and Sponsored Programs believes an investigator has violated this policy they will inform the appropriate vice president, who will investigate, and, if appropriate, begin disciplinary action.

5. Informing Federal Government Of Unresolved Conflict Issues

5.01. Informing Federal Government. The Associate Vice President for Research and Sponsored Programs will keep the federal government appropriately informed if the university finds that it is unable to satisfactorily manage an actual or potential conflict of interest. He/she will maintain contacts with federal government and develop procedures for full and accurate disclosures.

6. Maintaining Records

6.01. Time For Keeping Records. The Associate Vice President for Research and Sponsored Programs will maintain records of all financial disclosures and of all actions taken to resolve actual or potential conflicts of interest until at least three years after the later of (1) the termination or completion of the award to which they relate, or (2) the resolution of any government action involving those records.