1. (a) For purposes of this chapter, a conflict of interest exists when an individual subject to this rule has an interest in the outcome of an application such that the individual is in a position to gain financially, professionally, or personally from either a positive or negative evaluation of the grant proposal. Individuals subject to this rule are:

   1. (1) Oversight Committee members;
   2. (2) University Advisory Committee members;
   3. (3) Ad hoc committee(s) members;
   4. (4) Institute employees; and
   5. (5) Scientific Research and Prevention Program committee members.
2. (b) Except under exceptional circumstances as provided in §702.17 of this chapter (relating to Exceptional Circumstances Requiring Participation), an individual who has a conflict of interest with respect to an application may not participate in the review, discussion, deliberation, or vote on the application.

3. (c) A financial conflict of interest exists if the individual subject to this rule or a close relative of the individual:

   1. (1) Owns or controls, directly or indirectly, an ownership interest of five percent (5%) or more in a business entity or other organization receiving or applying to receive money from the Institute. Interests subject to this provision include sharing in profits, proceeds, or capital gains. Examples of ownership or control, include but are not limited to owning shares, stock, or otherwise, and are not dependent on whether voting rights are included.
   2. (2) Could reasonably foresee that an action taken by the Scientific Research and Prevention Program committee, the Institute or its Oversight Committee could result in a financial benefit to the individual of 100% or more.

4. (d) For purposes of this rule, a professional conflict of interest exists if the individual subject to this rule or a close relative:

   1. (1) Is a member of the board of directors, other governing board or any committee of an entity or other organization receiving or applying to receive money from the Institute during the same grant cycle;
   2. (2) Serves as an elected or appointed officer of an entity or other organization receiving or applying to receive money from the Institute;
   3. (3) Is an employee of or is negotiating future employment with an entity other organization receiving or applying to receive money from the Institute;
   4. (4) Represents an entity or other organization receiving or applying to receive money from the Institute in business or law;
   5. (5) Is a professional associate of a primary member of the research/prevention program applicant's team;
   6. (6) Is a student, postdoctoral associate, or part of a laboratory research group for a primary member of the research/program applicant's team or has been within the past six years;
   7. (7) Is engaged or is actively planning to be engaged in collaboration with a primary member of the research/prevention program applicant's team; or
   8. (8) Has long-standing scientific differences or disagreements with a primary member of the research/prevention program applicant's team that are known to the professional community and could be perceived as affecting objectivity.
5. (e) For purposes of this rule, a personal conflict of interest exists if the applicant is a family member or close personal friend of an individual subject to this rule.
6. (f) Nothing herein shall prevent Oversight Committee members, Institute employees, or Scientific Research and Prevention Program committee members from adopting more stringent standards with regard to prohibited conflicts of interest.
7. (g) The Executive Director may provide guidance to the members of the Oversight Committee, Institute employees, and Scientific Research and Prevention Program committee members on what interests would constitute a conflict of interest or an appearance of a conflict of interest.

Source Note:The provisions of this §702.11 adopted to be effective July 13, 2009, 34 TexReg 4640; amended to be effective February 11, 2010, 35 TexReg 872.