1. (a) As authorized by Texas Health and Safety Code §102.054, the Institute may solicit and accept gifts from any source to support the operations of the Institute and to further its purposes; except that the Institute may not supplement the salary of any Institute Employee with a gift or grant received by the Institute.
2. (b) An Oversight Committee Member or an Institute Employee shall not authorize a donor to use the property of the Institute unless the property is used in accordance with a contract between the Institute and the donor, the contract is found by the Institute to serve a public purpose, the contract contains provisions to ensure the public purpose continues, and the Institute is reasonably compensated for the use of the property.

3. (c) Procedure for acceptance of gifts.

   1. (1) Gifts to the Institute may be designated for one of the following categories:

      1. (A) Unrestricted General Support;
      2. (B) Restricted Programmatic Support;
      3. (C) Endowed and Restricted Funds; or
      4. (D) Other (includes gifts of real or personal property).
   2. (2) Gifts of ten thousand dollars ($10,000) or less may be accepted on behalf of the Institute by the Chief Executive Officer.
   3. (3) The Executive Committee of the Oversight Committee may accept gifts of cash, stock, bonds, or personal property with a value in excess of ten thousand dollars ($10,000) but less than one million dollars ($1,000,000) on behalf of the Institute. If one or more Executive Committee members do not agree with the decision to accept the gift on behalf of the Institute, the decision to accept the gift will be made by a majority vote of the Oversight Committee.

   4. (4) Acceptance of gifts made to the Institute of cash, stock, bonds, or personal property with a value in excess of one million dollars, gifts of real property regardless of value, and all other gifts not herein described shall be approved by a majority vote of the Oversight Committee. To assist in its decision, a report shall be created by the Chief Executive Officer that includes the following information:

      1. (A) Name and biographical data regarding the individual or organization making the gift;
      2. (B) A description of the gift;
      3. (C) A list of conditions or requirements to be imposed on the Institute as a result of accepting the gift;
      4. (D) If one of the conditions is naming, then include a description of the object to be named and whether there is a time limit on continuing the name;
      5. (E) If the gift is real property, an evaluation of the gift by the General Land Office;
      6. (F) If the gift is stock or other investments, a description of how they will be sold and the expected net proceeds; and
      7. (G) A description of how the gift will be used.
   5. (5) All funds received from donations to the Institute will be deposited to the state treasury and used for the purpose specified by the donor or for general Institute programs when no purpose is specified.

4. (d) The Institute encourages the offer of gifts of additional revenue and real and personal property through naming.

   1. (1) Naming can be given to both real objects and inanimate objects, such as Grant Awards.

   2. (2) The Oversight Committee will consider a request for naming in connection with a gift of real or personal property of substantial value to the Institute and its programs. In determining whether a gift has substantial value, the Oversight Committee will evaluate the following factors:

      1. (A) The size of the real or personal property in relation to other fund sources--including bonds--available at the same time and consideration of whether the donation will make a material contribution to the Institute's goals and programs that otherwise would not be made;
      2. (B) Availability of the real or personal property; and
      3. (C) The degree of flexibility and discretion the Institute will have in the use of the real or personal property.
   3. (3) The Oversight Committee must approve the recommendation to name an object or program by a majority vote of its members.

5. (e) The Oversight Committee may refuse a gift to the Institute for any reason, including:

   1. (1) The gift requires an initial and/or on-going expenditure that will likely equal or exceed the value of the gift.
   2. (2) The gift is from an institution, entity, or organization, or a director, officer, or an executive of an institution, entity or organization that has applied for funding from the Institute, or currently receives funding from the Institute, or the gift is from a Senior Member or Key Personnel of the research or prevention program team listed on a Grant Application or Grant Award.
   3. (3) The Institute may return a gift made by an institution, entity, organization, or individual that was otherwise eligible to make the donation at the time that the gift was accepted by the Institute in the event that the donor subsequently submits a Grant Application for funding from the Institute within the fiscal year of the donation.
   4. (4) For purposes of this section, the limitation on gifts does not apply to a donation made as the result of the final bequeathal.

6. (f) The Institute shall report information pertaining to gifts, grants, or other consideration provided to the Institute, an Institute Employee, or a member of an Institute committee, subject to the requirements in this subsection.

   1. (1) The information shall be posted on the Institute's Internet website.
   2. (2) The information to be posted shall include the donor's name, the date of the donor's donation, and the amount of the donor's donation.
   3. (3) The reporting requirement applies to all gifts, grants, or other consideration provided to the Institute except that individual conference registration fees paid to CPRIT by conference attendees shall not be treated as consideration for purposes of the reporting requirement. The total amount received for conference registration fees may be reported.

   4. (4) The reporting requirement applies to all gifts, grants, or other consideration given to a Oversight Committee Member, Institute Employee, or Program Integration Committee Member except that the following items are not considered gifts, grants or consideration subject to the reporting requirement:

      1. (A) Books, pamphlets, articles, or other similar materials that contain information directly related to the job duties of an Oversight Committee Member, Institute Employee, or Program Integration Committee Member and that are accepted by the individual on behalf of Institute for use in performing the individual's job duties;
      2. (B) Items or consideration of any value given to the Oversight Committee Member, Institute Employee, or Program Integration Committee Member by a Relative;

      3. (C) Items or consideration of any value given to the Oversight Committee Member, Institute Employee, or Program Integration Committee Member by a personal friend so long as:

         1. (i) The item or consideration is given based solely on an existing personal relationship;
         2. (ii) The personal friend or a Relative of the personal friend is not an employee of an entity receiving or applying to receive money from the Institute; and
         3. (iii) The individual subject to this provision has no reason to believe that the item or consideration is being offered through an intermediary in an attempt to evade reporting requirements.
      4. (D) Items of nominal intrinsic value less than $50, such as modest items of food and refreshment on infrequent occasions, shared ground transportation in non-luxury vehicles, and unsolicited advertising or promotional material such as plaques, certificates, trophies, paperweights, calendars, note pads, and pencils, but excluding cash or negotiable instruments.

   5. (5) The reporting requirement applies only to the gifts, grants, or other consideration given to a Scientific Research and Prevention Programs Committee Member by a Grant Applicant or Grant Recipient during the period that the Member is appointed except that the following items are not considered gifts, grants or consideration subject to the reporting requirement:

      1. (A) Books, pamphlets, articles, or other similar materials that contain information directly related to the job duties of the Scientific Research and Prevention Programs Committee Member and that are accepted by the individual for use in performing the individual's job duties;
      2. (B) Items of nominal intrinsic value less than $50, such as modest items of food and refreshment on infrequent occasions, shared ground transportation in non-luxury vehicles, and unsolicited advertising or promotional material such as plaques, certificates, trophies, paperweights, calendars, note pads, and pencils, but excluding cash or negotiable instruments.

   6. (6) The reporting requirement applies to a member of an Advisory Committee of the Institute only to the extent that the individual participates in the Grant Review Process.

      1. (A) If the individual participates in the Grant Review Process, then the individual must report gifts, grants, or other consideration given to the Advisory Committee member by a Grant Applicant or Grant Recipient during the period that the Advisory Committee member participates in the Grant Review Process except that the following items are not considered gifts, grants or consideration subject to the reporting requirement:

         1. (i) Books, pamphlets, articles, or other similar materials that contain information directly related to the job duties of the Advisory Committee member and that are accepted by the individual for use in performing the individual's job duties;
         2. (ii) Items of nominal intrinsic value less than $50, such as modest items of food and refreshment on infrequent occasions, shared ground transportation in non-luxury vehicles, and unsolicited advertising or promotional material such as plaques, certificates, trophies, paperweights, calendars, note pads, and pencils, but excluding cash or negotiable instruments.
      2. (B) For purposes of this subsection, participation in the Grant Review Process by an Advisory Committee member does not include submitting a Grant Application or receiving a Grant Award.

Source Note:The provisions of this §702.7 adopted to be effective July 13, 2009, 34 TexReg 4640; amended to be effective February 11, 2010, 35 TexReg 872; amended to be effective March 2, 2014, 39 TexReg 1385.