(a) If an Oversight Committee Member or a Program Integration Committee Member has a Conflict of Interest as described in this chapter with respect to an entity or Grant Application that comes before the individual for review or other action, the Member shall:
  (1) Provide written notice of the Conflict of Interest to the Chief Executive Officer and the presiding officer of the Oversight Committee (or the next ranking member of the Oversight Committee if the presiding officer has the Conflict of Interest). For purposes of this requirement, an Oversight Committee member or Program Integration Committee member who designates the Conflict of Interest on the secure website provided to review the recommended Grant Awards is deemed to have provided written notice;
  (2) Disclose the Conflict of Interest in an open meeting of the Oversight Committee; and
  (3) Recuse himself or herself from participation in the review, discussion, deliberation and vote on the entity or Grant Application, including access to information regarding the matter to be decided, unless a waiver has been granted pursuant to §702.15 of this chapter (relating to Investigation of Unreported Conflicts of Interest Affecting the Grant Review Process).
(b) If a Scientific Research and Prevention Programs Committee Member has a Conflict of Interest as described in this chapter with respect to a Grant Application that comes before the individual for review or other action, the member shall:
  (1) Provide written notice of the Conflict of Interest to the Chief Executive Officer. For purposes of this requirement, a Scientific Research and Prevention Program Committee Member who designates the Conflict of Interest on the secure website provided to review the Grant Applications is deemed to have provided written notice; and
  (2) Recuse himself or herself from any participation in the review, discussion, scoring, deliberation and vote on the Grant Application, including access to information regarding the matter to be decided unless a waiver has been granted pursuant to §702.15 of this chapter.
(c) Some Conflicts of Interest are such that the existence of a conflict with a Grant Applicant applying for a Grant Mechanism raises the presumption that the conflict may affect the individual's impartial review of other Grant Applications pursuant to the same Grant Mechanism in the Grant Review Cycle. The Institute has determined that the existence of one or more of the following Conflicts of Interest for an Oversight Committee Member, Scientific Research and Prevention Programs Committee Member, Program Integration Committee Member, Institute employee, Independent Contractor or a Relative of an individual subject to this rule shall require recusal of the individual from participating in the review, discussion, scoring, deliberation and vote on all Grant Applications competing for the same Grant Mechanism in the entire Grant Review Cycle, unless a waiver has been granted pursuant to §702.15 of this chapter:
  (1) The individual subject to this provision is an employee of a Grant Applicant;
  (2) The individual subject to this provision is actively seeking employment with a Grant Applicant. For the purposes of this paragraph, "actively seeking employment" includes activities such as submission of an employment application, resume, curriculum vitae, or similar document and/or interviewing with one or more representatives from the organization with no final action taken by the organization regarding consideration of such employment;
  (3) The individual subject to this provision serves on the board of directors or as an elected or appointed officer of a Grant Applicant or a foundation or similar organization affiliated with the Grant Applicant; or
  (4) The individual subject to this provision owns or controls, directly or indirectly, an ownership interest in a Grant Applicant or a foundation or similar organization affiliated with the Grant Applicant. 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.
(d) If an Institute Employee or independent contractor involved in the Grant Review Process has a Conflict of Interest as described in this chapter with respect to a Grant Application that comes before the individual for review or other action, the Institute Employee or independent contractor shall:
  (1) Provide written notice to the Chief Executive Officer of the Conflict of Interest; and
  (2) Recuse himself or herself from participation in the review of the Grant Application and be prevented from accessing information regarding the matter to be decided, unless a waiver has been granted pursuant to §702.15 of this chapter.
(e) The Institute shall retain supporting documentation regarding the implementation of its Conflict of Interest policy and actions taken to exclude a conflicted Oversight Committee Member, Program Integration Committee Member, Scientific Research and Prevention Programs Committee Member or Institute Employee from participating in the review, discussion, deliberation and vote on the Grant Application.
  (1) The supporting documentation retained by the Institute may be stored by the Institute's electronic Grant Management System.
  (2) For purposes of this rule, "supporting documentation" may include Conflict of Interest agreements, Conflict of Interest disclosure forms, action taken to address a previously unreported Conflict of Interest after its existence is determined, approved waivers, sign-out sheets, independent third party observation reports, post-review certifications and Oversight Committee meeting minutes.
  (3) All supporting documentation shall be publicly available, except that information included in the supporting documentation that is otherwise protected by Chapter 552, Texas Government Code may be redacted.
(f) Individuals subject to this chapter are encouraged to self-report. Any individual who self-reports a potential Conflict of Interest or any impropriety or self-dealing, and who fully complies with any recommendations of the General Counsel and recusal from any discussion, voting, deliberation or access to information regarding the matter, shall be considered by the Institute to be in compliance with this chapter. The individual is still subject to the operation of other laws, rules, requirements or prohibitions. Substantial compliance with the procedures provided herein constitutes compliance.
(g) Intentional violations of this rule may result in the removal of the individual from further participation in the Institute's Grant Review Process

Source Note: The provisions of this §702.13 adopted to be effective February 11, 2010, 35 TexReg 872; amended to be effective March 2, 2014, 39 TexReg 1385; amended to be effective December 7, 2016, 41 TexReg 9527