(a) Only those expenditures from restricted awards made from the following types of projects and activities and sponsored by federal, state, or local governmental agencies; private philanthropic organizations and foundations; for-profit businesses; or individuals shall be classified as restricted research expenditures:
- (1) Sponsored R&D, as defined in §13.122 of this title (relating to Definitions).
- (2) Industrial Collaboration Agreements for R&D activities, as defined in §13.122 of this title (relating to Definitions) with universities, colleges, centers, or institutions.
- (3) Demonstration Projects, as defined in §13.122 of this title (relating to Definitions), which have a significant new R&D component.
- (4) Sponsored instruction and training, as defined in §13.122 of this title (relating to Definitions), for curriculum development projects when the primary purpose of the project is developing and testing an instructional or educational model through appropriate research methodologies that include data collection, evaluation, dissemination, and publication.
- (5) Multiple Function Awards, as defined in §13.122 of this title (relating to Definitions), if the scope or activity of the restricted award includes R&D subject to the following limitation: if the purpose of a restricted award is primarily (more than 50 percent) research, then all expenditures made from that award qualify as restricted research expenditures. If the purpose of the restricted award is not primarily research (less than 50 percent), then none of the expenditures may be counted as restricted research. Primary purpose will normally be demonstrated by more than half of the funds having been budgeted for research, but may be demonstrated by the sponsor's statement of purpose or other documented evidence.
- (b) Institutions shall document the process for determining restricted research awards and shall maintain documentation justifying the rationale used to classify the awards as restricted research.
Source Note:The provisions of this §13.124 adopted to be effective May 15, 2005, 30 TexReg 2664.