Draft Proposal Presented to Faculty Senate by Vice President for Research
Kelvin Droegemeier (April 2011)
(See
April 11, 2011 Faculty Senate Journal: http://www.ou.edu/admin/facsen/minutes/411jrn.htm)
POLICY
REGARDING CONFLICTS OF INTEREST
University
of Oklahoma, Norman Campus
I. STATEMENT OF GENERAL POLICY
II. GOVERNING AUTHORITY
III. IDENTIFYING CONFLICTS OF INTEREST
IV. DISCLOSING CONFLICTS OF INTEREST
V. ELIMINATING, MITIGATING, OR MANAGING
CONFLICTS OF INTEREST
VI. SANCTIONS
VII. APPENDICES
I. STATEMENT OF GENERAL POLICY
The University of Oklahoma is a public institution
committed to the mission of teaching; research and creative/scholarly activity;
professional and University service; and public outreach. To these ends, the University strives to
maintain an atmosphere that promotes free, open, and objective scholarly inquiry
and compatible professional interactions while recognizing its obligations and
limitations as a public institution.
Conflicts of interest[1]
are not uncommon in a modern university. The University actively recruits and
recognizes individuals with creative abilities who can contribute to
interactions not only in the classroom and laboratory but also in the business
community. There exist many opportunities to develop relationships with
external organizations, public and private, that enhance one's professional
competency, render valuable service to the community, and benefit the
University. Such interactions and relationships can create conflicts of
commitment or interest that must be governed in a manner consistent with
institutional and public values. The existence of a conflict is often not
clear-cut; however, an undisclosed or unmanaged conflict can irreparably damage
reputations that may have taken a lifetime to establish and impair the
University’s standing. Accordingly, University Employees must be watchful that
their relationships and activities do not create, or appear to create,
unmanageable conflicts.
A Conflict of Interest refers to situations in which
financial or other personal considerations may compromise an Employee's
professional judgment in carrying out his/her University responsibilities that
include but are not limited to teaching, research, contract administration, and
purchasing. When used in this policy,
the term Conflict of Interest (“Conflict”) means (1) an actual conflict of
interest exists, or (2) the potential exists for a conflict of interest to
occur, or (3) there appears to be a conflict of interest; i.e., if made public,
it could discredit the Employee or the University. The term also includes a Conflict of
Commitment. Employees are expected to
know and comply with the applicable laws and policies related to their
appointment as University/State[2]
Employees.
The purpose of this policy is to provide procedures
and guidance for identifying, disclosing, and managing Conflicts of Interest to
assure that such Conflicts do not improperly affect the activities or
professional conduct of the University or its Employees. Appropriate disclosure, review, and management
provide protection from legal liability and ethical criticism for Employees and
the University.
See Appendix A for Definitions (capitalized terms)
used throughout this policy.
II. GOVERNING
AUTHORITY
Governing authority for this policy is derived from
State and federal laws, rules, and regulations and the policies of the Board of
Regents of the University of Oklahoma. This policy overlaps with, but does not
replace, University Employee responsibilities, under such governing authority
which, in some instances, will include additional prohibitions, penalties, and
reporting duties. Compliance with State
and federal laws, rules, and regulations does not necessarily eliminate or
provide suitable management of a Conflict, which still must be addressed in
accordance with this policy.
Unless otherwise permitted by law or University
policy, University Employees may not:
A.
Disclose
confidential and/or proprietary information acquired through their University
employment to anyone not entitled to receive it, nor use such information for
personal gain or benefit; e.g., providing a Company with early or exclusive
access to Research results, except in compliance with a sponsored research
agreement or grant;
B. Use their
University position to obtain special privileges or compensation;
C. Knowingly
seek or accept anything of value intended to or that may be perceived to
affect
their judgment in the performance of their University responsibilities;
D. Influence or appear to influence University financial, Research,
or other decisions for procuring materials or services from Companies in ways
that lead or may lead to personal gain for themselves or their Families;
E. Use their University position to market or endorse the goods or
services of a Company; or
F. Participate in Research or technology transfer activities that
compromise or appear to compromise objectivity and judgment in the design,
conduct, or reporting of the Research.
Nothing in this policy prohibits any academic or
administrative unit from establishing supplementary Conflicts of Interest
policies and/or procedures that are more restrictive than those included in
this policy.
See Appendices
A, B, C, D, and H for select references to governing authority and policies.
III. IDENTIFYING
CONFLICTS OF INTEREST
Identification and disclosure of Conflicts of
Interest can protect the Employee and the University from damage to reputations
and professional activities. Employees may contact their supervisor,
Appropriate Vice President, or the Office of Legal Counsel with questions
regarding Conflicts.
The conditions, circumstances, and
relationships described in this section could result in
Conflicts. Each Employee is required to
identify and disclose all Conflicts relating to, but not limited to, each of
the categories below.
A. FINANCIAL
CONFLICTS OF INTEREST
Although most disclosures of Financial
Interests[3] will probably be deemed de minimus
Conflicts, Financial Interests above certain
thresholds will automatically be deemed by
law or regulation to be Significant Financial Interests and will require closer
scrutiny, and possible elimination, mitigation, and/or management. The
thresholds are as follows, and in each case they refer to companies or
organizations with which the University does business, or otherwise are in the
Employee’s sphere of influence or decision making authority:
1. Financial Interests that when aggregated
over twelve months (either retrospectively or prospectively, depending upon the
application) for the Employee and the Employee's spouse/domestic partner and
children, meet either of the following tests:
(a) Exceeds $10,000 in value as determined
through reference to public prices or other reasonable measures of fair market
value, or
(b) Represents more than a five percent
ownership on a fully-diluted basis of any single entity.
2. Financial Interests that exceed $1,000 in
dividends or similar interests derived during the preceding calendar year.
3. Financial Interests that involve the
ownership or promise of stock or stock options or similar interests of any
amount in a Company.
4. Annual income from dividends or for
professional or consulting activity from a Company in excess of 25% of the
Employee's Institutional Base Salary.
The following exemptions exist:
1.
Diversified mutual funds.
2.
Sector mutual funds if the combined holdings of you, your spouse, and your
minor children of funds in the sector do not exceed $50,000.
B. USE OF UNIVERSITY RESOURCES
University Resources are acquired and
maintained to carry out the education, research, and public service missions of
the University. Except for insignificant and incidental use, an Employee may
not use University Resources for non-University purposes. If a question arises
regarding what constitutes other than insignificant and incidental use, the
Employee should consult a supervisor for clarification. Many conflicts of
interest in using University Resources, particularly those relating to private
companies in which a faculty member is involved, can be resolved.
1. Facilities, Equipment, Real and Personal Property. Employees using University facilities are required to comply with the University's Facility Use policy[4]. In keeping with State of Oklahoma constitutional provisions and subject to applicable law and all pertinent University policies, rules, and regulations, it is the Research and Development (R&D) Facilities Access Policy[5] of the University that a private business may access University R&D facilities if the University, acting through its appropriate officers and employees (e.g., Department Head, Dean having oversight responsibility for programs taking place in the facility, Executive Director of Research Services, etc.), determines, in its sole and absolute discretion, that: (i) pursuant to written agreement, the private business is involved in a collaborative project with the University involving University faculty or student collaborators or University technology; (ii) the private business provides sufficient legal and financial consideration for such use (material and substantial economic benefit to the State and/or University, can be a factor); (iii) the results of the collaboration have potential economic value for the parties; (iv) the facilities and their use by the private business participating in the collaborative project are suitable to the origination, nature, and purposes of the facility, in the University’s sole and absolute discretion; and, (v) such access would materially benefit the University and further one or more of the University’s missions. The ORS is responsible for the negotiation and authorization of such use through Facilities Use Agreements (FUA). Such agreements are annually renewable. See also Section III. F.7 of this policy.
2. Intellectual Property. Except as otherwise
provided by the University's Intellectual Property Policy, all intellectual
property (i.e., creative works, trademarks, discoveries, technology, and
inventions) made or conceived either in the course and/or scope of employment
for the University or substantially through the use of facilities or funds
provided by or through the University is owned by the Board of Regents of the
University and managed by the University's Office of Technology Development.
3. Human Resources. Human resources must not
be exploited in the course of an Employee's activities. Human resources include
students, postdoctoral fellows, residents, faculty, and staff. It is
especially important to be alert for the misuse of human resources since it
often results from innocent or unconscious action.
C. USE OF OFFICIAL POSITION
State law prohibits any State officers or
State Employees from using their official positions to obtain private benefits
or to solicit or secure special privileges, exemptions,
or compensation for themselves or others, except as allowed by law.
For example, University Employees:
1 Must ensure that time and effort spent on
outside speaking, consulting, and other activities do not conflict with or
affect the performance of their University responsibilities and are reported as
appropriate under the Provost’s Disclosure of Outside Employment and Extra
Compensation policy. See Conflict of Commitment (Section III.D).
2. May not use their official University
position or the University's name for personal gain or private purposes for
themselves or their Families.
3. May not use their official position to
market, promote, or endorse the goods or services of any Company.
4. May not market, promote, or endorse goods
or services in a manner that could be perceived by the public as the
University's marketing, promoting, or endorsing those goods or services.
5. May not contract for services or purchases
with their Families or with companies owned in whole or in part by themselves
or their Families. Provided, however, exceptions may be granted in unusual
circumstances if approved in advance by the Appropriate Vice President and are
subject to University Purchasing rules. Requests for an exception must contain
a detailed description of the proposed activity and a compelling justification
for the provision of services or products by the Employee's Family or related
Company. The relationship between the Employee and Family or Company must
clearly be disclosed.
D. CONFLICT OF
COMMITMENT
Full-time faculty owe their primary commitment
of time and intellectual energies to the University.
Subject to the principles described in 5.7.1 of the Norman Campus
Faculty handbook, faculty members may engage in professional activities for
extra remuneration (from within the University or from outside sources or in
any combination of the two) to a maximum of 25% of their full-time professional
effort.
(A) Faculty on
twelve-month contracts may not receive extra compensation for teaching summer
terms or for performing sponsored research.
(B) For faculty members on
nine-month or ten-month contracts, summer activities involving funds
administered by or through the University may be formed by negotiation into an
amended contract for a period up to twelve months and for assignments up to 1.0
full-time professional effort, and they may engage in professional activities
for extra remuneration (from within the University or from outside sources or
in any combination of the two) up to a maximum of 25% of their full-time
professional effort.
(C) During any portion of
the summer in which faculty members are not on contract with the University,
they may engage in outside work without restriction, so long as the activity in
question takes place solely during the summer months during which the faculty
member is not on OU salary and does not involve use of OU facilities. The
faculty member should consider whether a conflict of interest should be
disclosed after such a period of activity, particularly if there may be any
similarities between the summer activity and the faculty member’s academic year
activities. Additionally, the faculty
member should not enter into any agreements, such as contracts or
non-disclosure statements, that in any way would limit their freedom of action
as University employees.
(D) Within the University,
the time required for all extra compensation assignments during the entire
year, and for all professional assignments during the summer, will be
determined by those responsible for the various programs as an appropriate
fraction of the faculty member's full-time professional effort and the
University will pay the faculty member the corresponding fraction of his or her
base salary rate. The time required for all professional activities for extra
remuneration outside the University will be determined by the faculty member as
an appropriate fraction of his or her full-time professional effort when
approval for such activity is requested.
(E) Approval of outside
employment shall be requested on a form, "Application for Permission to
Engage in Outside Employment" available from the Senior Vice President and
Provost’s Office or from the Office of Human Resources. Such applications and
arrangements must be submitted at the beginning of each contract year.
Submission is the responsibility of the faculty member. All activities
performed inside the University for extra compensation must be arranged, as all
in-load assignments are, with the agreement of the department chairperson,
dean, and Senior Vice President and Provost.
(F) Faculty should avoid
possible conflicts of interest with the University in all outside employment.
Questions regarding potential conflicts of interest should be addressed to the
dean, who may wish to consult the University's Legal Counsel.
(G) No
faculty member may hold a split (joint) appointment that reflects more than a
total of 1.0 full-time equivalent (FTE).
Each faculty member must disclose any Conflict
of Commitment as each new activity arises and on an annual basis in accordance with
this policy. An employee intending to engage in an activity that may present a
Conflict of Commitment must submit a written request to the Unit Head, Dean,
and/or the appropriate Vice President, as appropriate, for review of the
activity, approval, and implementation of a Management Plan as appropriate.
University faculty may not have combined
commitments (sponsored and non-sponsored) in excess of 100% professional
effort, except as provided above. Faculty or staff who have University
responsibilities in addition to those committed on sponsored programs,
including but not limited to teaching, administration, or instructional
activities, must reserve the appropriate amount of effort as agreed upon with
the Unit Head and/or Dean for those commitments and, therefore, may not commit
100% paid or unpaid effort to sponsored grants and/or contracts.
On occasion, it may be necessary to report
company proprietary information to the University in order for a
faculty/researcher to report an invention. In this case, the proprietary
information may be protected by executing a non-disclosure agreement between
the company and the University. When the disclosure of proprietary
information occurs as a result of a sponsored agreement between the company and
the University, a nondisclosure agreement must be negotiated and signed on the
faculty member(s)’s behalf by the University.
The University will assist faculty members
engaged in sponsored research involving confidentiality clauses and/or
agreements in evaluating their risks of conflicts of interest flowing from
those confidentiality agreements and in developing management plans to mitigate
such risks. The extent to which faculty members are exposed to risks due to
confidentiality agreements or clauses in sponsored projects should be reviewed
periodically and whenever a new sponsored project is initiated.
E. INSTITUTIONAL CONFLICTS OF INTEREST
Institutional Conflicts of Interest are
managed under the University's Institutional Conflicts of Interest Policy. See www.ou.edu.
F. RELATIONSHIPS
WITH COMPANIES
Generally, although employees may accept
positions and hold Financial Interests in privately held, for-profit Companies,
relationships with (a) Companies that are doing business with the University or
(b) Companies in which Employees have a direct financial stake may create
Conflicts that require disclosure, assessment, and management. Employees may
also be prohibited from involvement in particular business arrangements by
governing law.
Employees with an ownership interest in
Companies should be aware of the following State ethics rule: No Employee shall
sell, offer to sell, or cause to be sold; rent; or lease (either as an
individual or through any Company in which the Employee holds a Financial
Interest) goods, services, buildings or property to the University. Exceptions
to this rule are: I) contracts for goods or services valued at less than five
thousand dollars ($5,000), and 2) contracts entered into after public notice
and in response to a University bid or request for proposal (RFP).
1. Equity
and Other Financial Interests
Employees who propose to become involved with
a Company in which they have a Financial Interest, including but not
limited to Equity, must promptly disclose the interest to the University.
Employees having income from or Equity in such Companies should recognize that
their ability to conduct Research sponsored by that Company may be restricted,
or their objectivity compromised, because of Conflicts created by their income
from or Equity in the Company. When intellectual property is produced by an
Employee in the performance of his/her official University duties or through
the use of University Resources, the Employee may receive income or Equity
under contract through the University from a Company commercializing the
intellectual property.
2. Membership on
Boards
Service on a Company's Board of Directors or Advisory Board is normally
acceptable; however, when the Company proposes to do or is doing business with
the University, Conflicts may arise because fiduciary obligations to the
Company may conflict with primary obligations to the University to act in its
best interests. When such a Conflict arises or is anticipated, Notice to and
approval of Board membership by the Appropriate Vice President and recusal from
Board matters involving University interests or resignation from the Board are
required.
Employees may be permitted to serve on the
Board of a Company that has licensed University technology if the service is
disclosed in advance to and with approval of the Appropriate Vice President. An
employee who is allowed to assume a Board position should recognize that his or
her ability to conduct Research that is sponsored by the Company may be
restricted because of the Conflict created by the Board position. Employees who
assume Board positions must recuse themselves from all Board decisions that
involve the University.
3. Service as an Operating Officer
An Employee must disclose service or plans to
serve as an Operating Officer of any Company in which the University owns a
Financial Interest or with which there is a Conflict with the Employee's
University position (including financial conflicts, conflicts of effort, use of
university facilities, potential or real overlap between university research
and company research, and ownership of intellectual property). If an Employee
wishes to serve as an Operating Officer, under such circumstances, he/she must
work with the Appropriate Vice President to put in place a management plan to
mitigate conflicts or, failing that, may request a leave of absence from the
University for a specified period of time, in accordance with policies in the
Faculty Handbook.
4. Service as a Scientific Officer
An Employee may serve as a Scientific Officer
for a Company with the prior written permission of the Unit Head, Dean, and
Appropriate Vice President. Such service must be through a written agreement
between the University and the Company. The term of service as a Scientific
Officer should ordinarily be for one year, renewable with written approval of
the Employee's Unit Head, Dean, and the Appropriate Vice President.
5. Consulting Relationships and Multiple
Activities
Where consulting and other activities are
performed for a Company in which the Employee holds Equity; receives
compensation; serves as a Scientific Officer; has a Board seat; has multiple
professional relationships with the Company (e.g., consulting and research
agreements); or, as permitted under this policy, serves as an Operating
Officer; any consulting relationship with the Company must be disclosed and
receive prior review and written approval from the Employee's Unit Head, Dean,
and the Appropriate Vice President.
It is not uncommon for a company to disclose
proprietary information to a faculty member acting as an outside consultant. In
doing so, the company often wants written assurance that this information will
be kept confidential. Confidentiality can be challenging for a faculty member
involved in open, free exchanges of information in a public university setting,
and the company's documentation in this regard should be scrupulously examined
by the employee, in the case of private consulting, or by the University, in
the case of sponsored research.
Faculty who enter into confidentiality or
nondisclosure agreements with multiple companies or other outside entities may
face challenges in maintaining specific confidentiality requirements across
those different interactions, particularly when the intellectual content is
similar or overlapping. Therefore, it is essential to limit the amount of
confidential information received and to have the company agree to clearly
identify such proprietary information by marking it as
"confidential."
6. Support of Students and Trainees by
Companies
The progress and academic standing of
students and trainees must never be compromised. Employees supervising students
and trainees must inform them in writing of the source(s) of their funding
support, disposition of intellectual property, management of proprietary
information, and handling of publication rights prior to assigning the students
or trainees to a Research or training project supported by a Company.
A student's academic program cannot be
supported by a Company in which the supervising Employee has Equity, serves on
a Board, or serves as an Operating Officer or Scientific Officer, unless
specifically approved in writing by the Dean of the Graduate College and the
Senior Vice President and Provost via an appropriate management plan. If
approved, support (e.g., stipends, tuition, salary, scholarships) for students
and trainees provided by Companies must comply with all of the following
provisions:
(a) The College department, program, or unit
approves the recipient;
(b) The funds are provided to the University;
(c) The recipient is not subject to any
implicit or explicit expectation of providing or foregoing something in return
for the support; i.e., a "quid pro quo";
(d) The Company does not withhold or
unreasonably limit publication of the student's research. University trainees
and students may not be employed by any Company to conduct Research that
overlaps with their University training or academic program. In addition,
Graduate College policy does not allow a faculty member with supervisory
responsibility for an Employee to serve as mentor for the same individual as a
student; therefore, any proposed employment of a trainee or student by a
Company to work on Company Research that does not overlap with their training
or academic program in which the mentor has Equity, serves on a Board, or
serves as an Operating Officer or Scientific Officer of the Company must be approved
in advance by the Dean of the Graduate College and the Senior Vice President
and Provost;
(e)
Evaluations of student performance, salary, and other matters are
handled by an individual who holds a position above that of the faculty member supervising
the students(s).
7. Company Use of University Equipment and
Space
An Employee may not use or allocate
University equipment or space for personal or non-University purposes, except
as provided by University policy. Limited use of University space and
designated equipment by a Company may be permitted in accordance with governing
law following review and approval by the Appropriate Vice President. The terms
and conditions of such use shall be reduced to writing and signed by the
Appropriate Vice President and the Company in accordance with University
policy.
8. Funding for Sponsored Research and Service
Activities
Employees may not act as a principal
investigator on sponsored projects outside the University, except as allowed by
Board of Regents' policy. There is a presumption against accepting funding from
a Company in which (i) the University or the Employee has a significant
Financial Interest, (ii) the Employee serves on the Board of the Company, or
(iii) the Employee serves as an Operating Officer or Scientific Officer.
The presumption is applied as follows: When a
Company proposes to contract for Research or services to be conducted by such
an Employee or anyone under the direction of that
Employee and the Research or services involve
neither human research participants nor validation testing, the presumption
against accepting funding may be rebutted if, in the judgment of the
Appropriate Vice President, one of the following is met and a Management Plan
is in place:
(a)
The Employee's influence over the Company's decisions and the possible
commercial or private benefit from the Research or services are negligible.
(b) The Research or service is essential to
maintain the continuity of an effort related to University licensed
intellectual property during a short interval of time, normally not greater
than one year.
(c) The Employee's relationship with the
Company does not involve additional relationships with the Company such as
consulting or service agreements or Board membership, so that the likelihood of
any distortion of the Research or service outcome is minimal.
Employees supervising students and trainees
shall inform them in writing of the source(s) of funds, disposition of
intellectual property, management of proprietary information, and handling of
publication rights prior to assigning the students or trainees to a Research or
training project.
The University may not conduct testing to
validate to the public an invention created at or by the University.
9. SBIR / STTR Programs
Under Small Business Innovation Research
(SBIR) and Small Business Technology Transfer (STTR) programs, small businesses
are encouraged to partner with a research university to perform innovative
research and/or to assist in technology transfer from the university. A
University Employee may participate in the SBIR/STTR project only through a
contract between the University and the Company that outlines the Employee's
responsibilities and/or University benefits or with written authorization by
the Dean and Vice President for Research.
SBIR/STTR programs can produce a variety of
complex situations with regard to Conflicts issues. Therefore, Employees are
required to comply with the following:
1. A University Employee with any role on an
SBIR/STTR project must submit the entire grant application (University's
portion and small business's portion) to the Office of Research Services (ORS)
to enable the appropriate reviews to take place before submission of the
application to the funding agency.
2. The principal investigator for the small
business SBIR/STTR application and the principal investigator for the
subcontract to the University must be different individuals.
3. If a University Employee or his/her Family
has a Financial Interest in a Company, that individual may not bring Research
into his/her University laboratory through an SBIR or STTR contract involving
that Company, except through a contract between the Company and the University.
4. The Company must provide evidence of
availability of functioning space in which Research activities can and will
take place prior to submission of the grant application.
5. The Employee must notify the Vice
President for Research and/or ORS in writing upon receipt of an SBIR/STTR
award. If the Employee is serving as the principal investigator of the small
business concern on an SBIR grant, he/she must also provide documentation of
approval from the appropriate Dean to reduce his/her University appointment to
commit the required minimum 51% effort as the SBIR principal investigator of
the small business concern.
6. Prior to start of the project, a contract
between the University and the Company must be executed outlining the
Employee's responsibilities and/or University benefits or the Employee must
obtain written authorization by the Dean and the Vice President for Research to
proceed. There must be a clear distinction between the work done by or on
behalf of the Company and the work performed by or on behalf of the University.
7. The Employee must work through his/her college/department
to reduce his/her appointment if serving as the principal investigator on an
SBIR award for the company.
G. FINANCIAL INTERESTS INVOLVING HUMAN
RESEARCH PARTICIPANTS
All Financial Interests of an Employee
serving as an investigator in Research involving human research participants
must be disclosed and managed under the University's Human Research Participant
Protection (HRPP) policy, SOP 104A, "Conflict of Interest -
Investigators". (See link:
http://www.ouhsc.edu/irb-norman//default.asp).
An investigator with a Conflict in Research
involving human research participants may conduct that Research only with an
HRPP-approved Management Plan. However, the Norman Campus Vice President for
Research has final authority to disallow Research determined to be contrary to
the best interests of the University.
IV. DISCLOSING CONFLICTS OF INTEREST
Employees must disclose a Conflict whenever a
new activity or relationship arises and also on an annual basis in accordance
with this policy. To ensure all required disclosures are made under this policy
Employees should contact the Unit Head, Dean, or Appropriate Vice President if
there is any question whether an activity or relationship requires disclosure.
All disclosures will be forwarded to the Provost. Failure to disclose Conflicts
can result in administrative sanctions, severe sanctions, and/or civil and
criminal penalties.
A. WHAT TO DISCLOSE
When used in this policy, the term Conflict
of Interest ("Conflict") means (1) an actual conflict of interest
exists, or (2) the potential exists for a conflict of interest to occur, or (3)
there appears to be a conflict of interest; i.e., if made public, it could
discredit the Employee or the University. Disclosure of Conflicts is required
for the following in accordance with this policy.
1. Financial Conflicts of Interest above the
specified thresholds
2. Conflicts of Commitment
3. Relationships with Companies
(a) Equity and
other Financial Interests
(b) Board membership
(c) Service as an
Operating Officer
(d) Service as a
Scientific Officer
(e) Consulting
relationships with Companies
(f) Multiple
professional relationships with Companies
(g) Company support
of students and trainees
(h) Company use of
University equipment and/or space
(i) Sponsored
research support from Companies in which the Employee or University has a Significant Financial
Interest
(]) Compensation
for professional services to a Company
(k) Financial
Interests involving human subjects research
Although all possible required scenarios
cannot be itemized here, the following are examples of circumstances that do
require disclosure under this policy:
1. Participating
in University Research on a technology owned, licensed, or contractually
obligated to a Company with which the Employee or his/her Family has a
Financial Interest.
2. Receipt of University Research support
(whether in dollars or in kind) from a Company with which the Employee or
his/her Family has a Financial Interest.
3. Receipt of royalties on products
undergoing Research or testing under the supervision or control of the
Employee.
4. Service on a board of directors or
scientific advisory board of, or executive position with, a Company from which
the Employee, Employee's Family, or a Company associated with the Employee or
his/her Family receives sponsored research support.
5. Receiving funds, gifts, or any
compensation from a Company that is sponsoring an Employee's Research, for
activities or purposes unrelated to the actual costs of performing that
Research.
6. Assigning to fellows and/or students,
tasks related to an Employee's involvement with a Company.
7. Purchasing equipment, services, or
supplies for Research from a Company with which the Employee, the Employee's
Family, or a Company associated with the Employee or his/her Family has a
Financial Interest.
8. Receipt of any non-royalty payments or
entitlements to payments in connection with the Research that are not directly
related to the reasonable costs of the Research (as specified in a research
agreement between the sponsor and the University). In addition, in all
publications and presentations Employees must always disclose Financial
Interests in any Company that supports Research being reported.
B. WHEN TO DISCLOSE
If a conflict exists or is suspected,
disclosure is required with:
1. Each new and renewal proposal, grant
application, and contract submitted to the Office of Research Services (ORS).
2. Each new or modified activity or
relationship with a Company (i.e., license agreement with Spin-Off Company).
3. Each new circumstance, situation, or
activity that is not associated with an ORS submission and is a Conflict of
Interest.
The Employee's Unit Head and Dean shall
review and discuss the disclosure with the Employee as necessary. If it appears
that a conflict exists, the Unit Head and Dean will forward written
recommendations regarding the elimination, mitigation, and/or management of any
identified Conflict(s) to the Appropriate Vice President for review and final
decision on how to proceed. The Appropriate Vice President may consult with
others, such as a committee appointed for that purpose. The Employee shall be
notified in writing of the decision, including any requirements for immediate action
and plans for continued monitoring of the
Conflict.
C. HOW TO DISCLOSE
All disclosures are to be made on the
"Conflicts of Interest Disclosure Form." As appropriate, the
Conflicts of Interest Disclosure Form is incorporated into the Office of
Research Services Routing Forms for submissions that may be affected by a
conflict. Other, non-ORS related disclosures are made on forms maintained by
the Provost’s Office and the IRB and submitted to the Appropriate Vice
President.
See Appendix G and the Office of Research
Services, Provost, and IRB websites (http://www.ou.edu) for disclosure forms
with contain specific instructions.
V. ELIMINATING, MITIGATING, OR MANAGING
CONFLICTS OF INTEREST
After a Conflict has been identified and
disclosed, the faculty member or researcher involved shall develop a written
Management Plan for submission to the Appropriate Vice President in order to
eliminate, mitigate or manage the Conflict.
The plan may include, but is not limited to:
A. Full
internal disclosure and annual updates on University disclosure forms;
B. Public disclosure;
C. Disclosure to individuals or entities with
relevant interests such as institutional committees, research participants,
journals, and data safety monitoring boards;
D. Modification of the activity;
E. Divestiture of financial interests of the
Employee and/or his/her Family;
F. Reduction of involvement or severance of
relationships that create the Conflict;
G. Alteration of participation in all or a
portion of the activity;
H. Transferring securities to an independent
financial manager or blind trust or limiting the timing of sales or
distributions;
I. Oversight
of activity by an appropriate supervisor or independent reviewer;
J. Termination
of student or post-doctoral fellow involvement in the activity;
K. Independent
clinical review of the appropriateness of clinical care given to research
participants, if applicable;
L. Monitoring
the informed consent process.
After implementation of a Management Plan and
commencement of the activity or relationship, the Appropriate Vice President
will review the effectiveness of the Plan as often as deemed necessary, but not
less frequently than every twelve months. If, during the conduct of the
activity, the Appropriate Vice President determines that the Conflict has not
been properly managed or has become unmanageable under the Plan, he/she will
then, among other options, review the activity and, as necessary, refine the
Plan accordingly and/or require a new disclosure. If an outside funding agency
requires notification of the Conflict, the Appropriate Vice President will
notify the agency in accordance with agency requirements. For activities with
Companies in which the Employee has Equity or serves as an Officer or on the
Board, the Management Plan must comply with Section III. F.,
Relationships with Companies, of this policy.
VI. SANCTIONS
University sanctions may include, without restriction,
reprimand, restitution, loss of pay, suspension, or dismissal. Persons who
violate this policy also may be subject to civil and criminal penalties for
violations of State or federal law; e.g., civil penalties for willful
violations of State laws may reach $50,000 or more per violation. Allegations
against an Employee for breach of this policy should be reported to the
Appropriate Vice President for review and action. In the event a violation of
this policy also constitutes a breach of any other University policy, the
Senior Vice President and Provost, in consultation with the Appropriate Vice
President, shall determine which policy shall govern.
VII. APPENDICES
A. Definitions
B. Federal Regulations and Guidance Regarding
Financial Conflicts of Interest
C. State Government Ethics Commission Rules
Governing the Ethics and Conflicts of Interest for the Conduct of State
Officers and Employees
D. Tips for Avoiding Conflicts of Interest
E. Questions and Answers
F. Forms
G. Other University Policies That May Relate
to Conflicts of Interests
H. Principal Basis for a Conflict of Interest
Management Plan
APPENDIX
A
DEFINITIONS
Appropriate Vice President:
The vice president with authority over the unit or activity in which the
Conflict of Interest has been identified or his/her designee. For example, if the disclosure regards a
research activity, the Vice President for Research will provide oversight,
regardless of where the individual is employed within the University. If the activity is not research-related, the
vice president with authority over the unit or activity will provide
oversight.
Board:
Board of Directors or Advisory Board.
Company: Any entity, including a Spin-Off Company,
other than the Board of Regents of the University of Oklahoma.
Compensation: All
remuneration or other things of value received in payment for services
rendered, such as salary, gifts, stocks, favors, or other items of value.
Conflict of Commitment: Time or effort devoted to professional
activities that may adversely affect or interfere with an Employee’s primary
University responsibilities and obligations.
Conflict(s) of Interest (Conflict):
Refers to situations in which financial or other personal considerations
may compromise an Employee's professional judgment in carrying out his/her
University responsibilities such as teaching, research, contract
administration, or purchasing. When used
in this policy, the term Conflict of Interest means (1) an actual conflict of
interest exists, or (2) the potential exists for a conflict of interest to
occur, or (3) there appears to be a conflict of interest; i.e., if made public,
it could discredit the Employee or the University. The term also includes a Conflict of
Commitment.
Employee: Any person possessing a full- or part-time
faculty or staff appointment at the University.
For the purposes of this policy, Employee also includes adjunct faculty,
postdoctoral fellows, residents, and volunteers. In addition, graduate and
undergraduate students, whether or not paid, who work on grants or contracts
are considered Employees for the purposes of this policy.
Equity: Ownership
interest in a Company, such as stock and stock options.
Family: Includes any individual who is a spouse/domestic
partner, parent, child, stepparent, stepchild, mother-in-law, father-in-law,
son-in-law, daughter-in-law, grandparent, or grandchild of an Employee or a
member of the Employee's household.
Financial Interest: Anything of monetary value
including, but not limited to, Equity.
Gift: Anything of value to the extent that
consideration of equal or greater value is not received in exchange, as set
forth in the State Ethics Commission Rules Governing the Ethical Conduct of
State Officers and Employees.
Institutional Base Salary: The annual guaranteed
compensation paid by the University for an Employee’s appointment, whether that
individual’s time is spent on research, teaching, patient care, and/or other
University activities.
Investigator: Any person who is responsible for the design,
conduct, or reporting of Research.
Management Plan: Written plan to manage, mitigate, or eliminate a
disclosed Conflict of Interest.
Operating Officer:
An
executive of a Company (with or without salary); e.g., Chief Executive Officer,
Chief Operating Officer, Chief Financial Officer, President, Vice-President.
Public Health Service (PHS): An operating division of the
U.S. Department of Health and Human Services, and any components of the PHS to
which the authority involved may be delegated.
Research: A systematic, intensive study intended to
increase knowledge or understanding of the subject studied, a systematic study
specifically directed toward applying new knowledge to meet a recognized need,
or a systematic application of knowledge to the production of useful materials,
devices, and systems or methods, including design, development, and improvement
of prototypes and new processes to meet specific requirements. Also termed
“research and development.”
Scientific Officer: The person responsible for
conceiving, evaluating, and/or executing Research for a Company (with or
without salary).
Senior Vice President and Provost: The chief executive academic and
administrative officer of the University or his/her designee.
Significant Financial Interest:
Financial interests above a certain threshold:
A. Interests that when aggregated over the next twelve months for
the Employee and the Employee’s spouse/domestic partner and children, meet
either of the following tests:
(i) Exceeds $10,000 in value as determined
through reference to public prices or other reasonable measures of fair market
value, or
(ii) Represents more than a five percent ownership
interest in any single entity.
B. Interests
that exceed $1,000 in dividends derived during the preceding calendar year.
C. Interests
that involve the ownership or promise of stock or stock options of any amount
in a Spin-Off Company.
D. Annual
income for professional or consulting service from a Company in excess of 25%
of the Employee’s Institutional Base Salary.
Spin-Off Company: A Company that is organized to develop and/or
commercialize specific University intellectual property. Spin-Off Companies are
typically privately held, for-profit Companies with licenses to develop and/or
commercialize University intellectual property created by University Employees
and in which those Employees often own some or all of the Company.
Unit Head: An
Employee’s supervisor, such as his/her Department Chair, Center Director, or
Dean.
University: The University of Oklahoma, Norman Campus.
University Resources:
All University facilities, equipment, real and personal property,
intellectual property, and human resources.
APPENDIX
B
FEDERAL
REGULATIONS AND GUIDANCE REGARDING
FINANCIAL
CONFLICTS OF INTEREST
42 CFR Part 50.601-607, Subpart F - Responsibility
of Applicants for Promoting Objectivity in Research for which PHS Funding is
Sought
45CFR Part 94.1 - Responsible Prospective Contractors
21 CFR Part 54 – Financial Disclosure by Clinical
Investigators
NIH Guide – Objectivity in Research
http://grants2.nih.gov/grants/guide/notice-files/not95-179.html
FDA "Guidance: Financial Disclosure by Clinical
Investigators" (March 20, 2001)
http://www.fda.gov/oc/guidance/financialdis.html
NIH Guide - Financial Conflicts of Interest and
Research Objectivity: Issues for Investigators and Institutional Review Boards,
June 5, 2000
http://grants.nih.gov/grants/guide/notice-files/NOT-OD-00-040.html
OHRP Draft Interim Guidance - Financial
Relationships in Clinical Research: Issues for Institutions, Clinical
Investigators, and IRBs to Consider When Dealing with Issues of Financial
Interests and Human Subject Protection
http://www.hhs.gov/ohrp/nhrpac/mtg12-00/finguid.htm
NIH
Guide Notice
(12/06/2004) - Reminder of Financial Conflict of Interest Requirements for All
NIH-Supported Institutions.
http://grants.nih.gov/grants/guide/notice-files/NOT-OD-05-013.html
Protecting Subjects, Preserving Trust, Promoting
Progress: Policy and Guidelines for the Oversight of Individual Financial
Interests in Human Subjects Research.
http://www.aamc.org/research/coi/firstreport.pdf.
This first report of the AAMC Task Force on
Financial Conflicts of Interest in Clinical Research provides guidance related
to individual financial interests in human subjects research.
Protecting Subjects, Preserving Trust, Promoting
Progress II: Principles and Recommendations for Oversight of an Institution's
Financial Interests in Human Subjects Research. http://www.aamc.org/research/coi/2002coireport.pdf.
This second report of the AAMC Task Force offers a
conceptual framework for assessing institutional conflicts of interest and a
set of specific recommendations for the oversight of certain financial interest
in human subjects research. The guidelines highlight areas that, in the view of
the AAMC's Task Force, are especially problematic and must therefore receive
close scrutiny.
APPENDIX
C
STATE
GOVERNMENT ETHICS COMMISSION RULES GOVERNING THE ETHICS AND CONFLICTS OF
INTEREST
FOR
THE CONDUCT OF STATE OFFICERS AND EMPLOYEES
Reference: Article XXIX of the
Oklahoma Constitution, Chapter 64, Appendix: Title 257. Ethics Commission
(Section 257:20-1-13 of the Rules of the Ethics Commission, 74 O.S. Supp. 2007,
Ch. 62, App.)
The following rules and standards
may be amended by the Legislature from time to time so to find the latest
version you should either consult the latest copy of the Oklahoma State
Statutes or contact the University Office of Legal Counsel.
Oklahoma Statutes Citationized
Title 74. State Government
Chapter 62 Appendix - Title
257. Ethics Commission
Article Chapter 20
Standard 257:20-1-1. General
Purpose and Authority.
(a) The rules of this chapter
have been adopted for the purpose of complying with the provisions of the Oklahoma
Constitution, Article XXIX, Section 3 (B). The Ethics Commission finds that the
proper operation of state government requires:
(1) that a state officer or state
employee be independent and impartial;
(2) that government policy and
decisions be made through the established processes of state government;
(3) that a state officer or state
employee not use state office to obtain private benefits;
(4) that a state officer or state
employee avoid action which creates the appearance of using state office to
obtain a private or inappropriate benefit; and
(5) that the public have
confidence in the integrity of its government and state officers and state
employees.
(b) It is the intent of the
Ethics Commission:
(1) to protect against conflicts
of interest and establish standards of conduct of elective officers and state
employees in situations where conflicts may exist;
(2) to attract those citizens
best qualified to serve. Thus the rules against conflicts of interest must be
so designed as not to impede unreasonably or unnecessarily the recruitment and
retention by government of those best qualified to serve. State officers should
not be denied the opportunity, available to all other citizens, to acquire and
retain private economic interests except when such interests conflict with the
responsibility of such officers to the public;
(3) to discourage state officers
and state employees from acting upon a private or business interest in the
performance of a public duty;
(4) to develop public confidence
in persons seeking or holding state office or employment, to enhance the
dignity of state government, and to make it attractive to citizens who are
motivated to public service;
(5) that state officers and state
employees shall exercise their powers and prerogatives without prejudice or
favoritism.
Standard 257:20-1-2. Buying or
Selling State Employment or Appointments to State Office.
(a) Candidates for state office,
state officers, and state employees shall not, directly or indirectly, solicit,
receive or agree to receive anything of value, or campaign contributions, for
agreeing to appoint, appointing or procuring the appointment of another person
to any state office or agreeing to employ, employing or procuring the
employment of another person in any position as a state employee.
(b) Nothing in Subsection (a) of
this section shall be construed to include matters within the purview of the
Oklahoma Personnel Act, Sections 840 et seq. and 841 et seq. of Title 74 of the
Oklahoma Statutes.
Standard 257:20-1-3.
Accountability.
(a) All state officers and all
state employees:
(1) shall support, obey, and
defend the Constitution and laws of the State of Oklahoma; and
(2) shall not knowingly receive, directly
or indirectly, any money or other valuable thing, for the performance or
nonperformance of any act or duty pertaining to his or her office, other than
the compensation allowed by law.
(b) Nothing in Subsection (a) of
this section shall be construed to include matters within the purview of the
Oklahoma Personnel Act, Sections 840 et seq. and 841 et seq. of Title 74 of the
Oklahoma Statutes.
Standard 257:20-1-4. Misuse of
Office.
(a) No state officer or state
employee shall use his or her official position to solicit or secure special
privileges, exemptions or compensation for himself, herself or others, except
in the performance of his or her duties or as may be allowed by law. Such
prohibited activity, except as provided by statute, shall not include:
(1) writing letters or orally
communicating recommendations for hiring, reclassifying, terminating or
promoting a state employee; or
(2) an employee of an institution
within The Oklahoma State System of Higher Education receiving income from ownership
interest in a technology or other intellectual property or in a business
enterprise commercializing the technology or other intellectual property, or
receiving income as a consultant, adviser, or employee of such business
enterprise, when such technology or other intellectual property is the result
of research conducted by the employee in the performance of his or her duties
on behalf of the institution or involving the authorized use of the facilities,
equipment, or services of the institution.
(b) No state officer or state
employee, except in the performance of his or her duties, shall disclose or
offer to disclose confidential information acquired by reason of his or her
official position to any person, group or others not entitled to receive such
confidential information, nor shall he or she use such information for his or
her personal gain or benefit.
(c) No state officer or state
employee shall:
(1) receive or solicit any
compensation that would impair his or her independence of judgment for his or
her services as an officer or employee of any state agency, from any source
other than the state, unless otherwise provided by law; or
(2) accept or solicit other
employment which would impair his or her independence of judgment in the
performance of his or her public duties.
Provided, the activities
prohibited by this subsection shall not include an employee of an institution
within The Oklahoma State System of Higher Education receiving income from
ownership interest in a technology or other intellectual property or in a
business enterprise commercializing the technology or other intellectual
property, or receiving income as a consultant, adviser, or employee of such
business enterprise, when such technology or other intellectual property is the
result of research conducted by the employee in the performance of his or her
duties on behalf of the institution or the authorized use of the facilities or
services of the institution.
(d) No legislator or statewide
elective officer shall be employed by or receive any commission, fee, or other
compensation from the state, except:
(1) the compensation and
allowance for expenses provided by law to such legislator or statewide elective
officer;
(2) compensation from serving in the
Oklahoma National Guard or the Oklahoma State Guard; or
(3) income from government
pension or retirement plans.
Standard 257:20-1-5. Ownership
Prohibited by Certain State Officers in Certain Government Securities.
No state officer of a governmental
entity shall own any interest in any bond, obligation or security issued by or
in the name of such governmental entity, unless such interest is a part of a
mutual fund or similar security.
Standard 257:20-1-6.
Representation by State Officers and State Employees.
(a) A statewide elective officer
shall not receive or agree to receive compensation for representing or
assisting any person or business in any transaction involving the state; or
represent another person for a fee before any state department, agency, board
or commission. The provisions of this subsection shall not:
1. apply to the practice of law
before any court; or
2. preclude a statewide elective
officer from acting on behalf of a constituent to determine the status of a
matter before a state department, agency, board, commission, institution or
instrumentality without accepting compensation therefor.
(b) A legislator shall not
receive or agree to receive compensation for representing or assisting any
person or business in any transaction involving the state; or represent another
person, firm, corporation or entity for a fee before any state department,
agency, board or commission. The provisions of this subsection shall not:
1. apply to the practice of law
before any court; or
2. preclude a member of the
Legislature from acting on behalf of a constituent to determine the status of a
matter before a state department, agency, board, commission, institution or
instrumentality without accepting compensation therefor.
(c) A state officer or state
employee shall not represent another person as an attorney in any matter before
the Commission.
(d) A state officer or state
employee shall not represent another person before the governmental entity the
state officer or state employee serves.
(e) These restrictions shall not
apply to the following:
1. purely ministerial matters
which do not require discretion on the part of the entity;
2. representation by a state
officer or state employee in the course of the officer's or employee's official
duties;
3. self-representation by the
state officer or state employee;
4. representation by the state
officer or state employee in matters arising out of or rules promulgated
pursuant to the Oklahoma Personnel Act; or
5. representation by the state officer
or state employee in a grievance before an institution of the Oklahoma State
System of Higher Education so long as such representation is consistent with
the rules relating to such grievances.
(f) The restrictions set forth in
this section do not apply if the state officer or state employee is testifying
under oath to facts that are within the individual's knowledge, or as an expert
witness who does not accept compensation other than regularly provided for by
law or rule for subpoenaed witnesses.
Standard 257:20-1-7. Votes,
Deliberations, and Discussions by Legislators or Statewide Elective Officers.
(a) A legislator or statewide
elective officer shall not introduce or cause to have introduced, request the
introduction of, promote, or vote on any legislation if the statewide elective
officer or legislator or a child, adopted child, step-child or spouse of the
officer or legislator or a business or entity with which the legislator or
officer or a member of the immediate family of the legislator or officer is
associated has:
(1) a pecuniary interest in; or
(2) a reasonably foreseeable
benefit from;
the legislation. A reasonably
foreseeable benefit includes detriment to a business competitor to the
legislator or statewide elective officer, to a business competitor of a member
of the immediate family of the legislator or officer, or to a business
competitor of a business or entity with which the legislator or officer or
child, step-child or spouse of the legislator or officer is associated.
(b) A legislator or statewide
elective officer may introduce or cause to have introduced, request the
introduction of, promote, or vote on legislation if the only pecuniary interest
or reasonably foreseeable benefit that may accrue to the legislator or officer, child,
adopted child, step-child or spouse of the legislator or officer, or business
or entity with which a legislator or officer or a child, adopted child,
step-child or spouse of a legislator or officer is associated is
incidental to the legislator's or officer's, child's, adopted child's,
step-child's, or spouse's or business or entity's position, or which
accrues to the legislator or officer, child, adopted child, step-child or
spouse, of the legislator or officer, or business or entity as a member of a profession,
occupation, or large class, whichever is applicable, to no significantly
greater extent than the pecuniary interest or potential benefit could
reasonably be foreseen to accrue to all other members of the profession,
occupation, or large class.
(c) Nothing in this subsection
shall allow a legislator or a member of the immediate family of a legislator, a
statewide elective officer, or a business or entity with which the legislator
or statewide elective officer is associated to contract with a governmental
entity except as provided in Subsection (b) of Section 10 of this chapter.
Standard 257:20-1-8. Votes,
Deliberations, and Discussions by Public Members.
(a) A public member shall not
participate in the discussion on, vote on, influence, or attempt to influence
an official action of the governmental entity the public member serves on if
the public member or a member of the immediate family of the public member or a
business or entity with which the public member or a member of the immediate
family of the public member is associated, has:
(1) a pecuniary interest in; or
(2) a reasonably foreseeable
benefit from;
the matter under consideration by
the governmental entity of which the public member is a member. A reasonably
foreseeable benefit includes detriment to a business competitor of the public
member, to a business competitor of a member of the immediate family of a
public member or to a business competitor of a business or entity with which
the public member or a member of the immediate family of the public member is
associated. The public member's abstention must be recorded in the governmental
entity's minutes.
(b) A public member may
participate in the discussion on, vote on, or influence or attempt to influence
an official action if the only pecuniary interest or reasonably foreseeable
benefit that may accrue to the public member or a member of the immediate
family of a public member or business or entity with which the public member or
member of the immediate family of the public member is associated is incidental
to the public member's, immediate family member's or business or entity's
position, or which accrues to the public member, immediate family member or
business or entity as a member of a profession, occupation, or large class,
whichever is applicable, to no significantly greater extent than the pecuniary
interest or potential benefit could reasonably be foreseen to accrue to all
other members of the profession, occupation, or large class.
(c) Nothing in this section shall
allow a public member or a member of the immediate family of the public member
or a business or entity with which the public member or a member of the
immediate family of the public member is associated to contract with the
governmental entity over which the public member has jurisdiction.
Standard 257 20-1-9 - Restraints
on Solicitation or Acceptance of Anything of Value - Disclosure
(a) Influence of official act,
fraud or official duty. No state officer and no state employee shall, directly
or indirectly, ask, demand, exact, solicit, seek, accept, assign, receive, or
agree to receive anything of value for the state officer or employee or for any
other person or entity, in return for being:
(1) influenced in the performance
of an official act;
(2) influenced to commit, aid in
committing, collude in, or allow fraud, or make an opportunity for the
commission of fraud on a governmental entity; or
(3) induced to perform or fail to
perform an act in violation of the state officer's or state employee's official
duty.
(b) Soliciting individually or on
behalf of a regulatory governmental entity prohibited. No state officer and no
state employee shall, directly or indirectly, ask, demand, exact, solicit,
seek, accept, assign, receive or agree to receive anything of value
individually or for or on behalf of a governmental entity from a business
entity, its employees, officers or board members, or a person who has greater
than a ten percent (10%) interest in such entity if the rates, charges, prices
or fees charged by the business entity are subject to regulation by the
governmental entity which the officer or employee serves. This provision does
not apply to a campaign contribution properly received and reported, which is
exempt from the definition of anything of value in Section 2 of Chapter 1 of
this title, or to anything of value accepted on behalf of the state of Oklahoma
pursuant to Subsection (e) of this section.
(c) Calendar year limits on
things of value.
(1) Elective officers. No
elective officer, or an immediate family member of an elective officer shall,
directly or indirectly, ask, demand, exact, solicit, seek, accept, assign,
receive, or agree to receive things of value in a calendar year which, in the
aggregate, are valued at more than three hundred dollars ($300); and
(2) Other state officers and
state employees. Except for an elective officer, no state officer, state
employee or an immediate family member of such state officer or state employee
shall, directly or indirectly, ask, demand, exact, solicit, seek, accept,
assign, receive or agree to receive things of value in a calendar year which,
in the aggregate, are valued at more than one hundred dollars ($100):
from a person who the state
officer or state employee knows or should know:
(A) is a lobbyist or lobbyist
principal, provided that the following shall not be subject to this subsection:
(i) things of value received as a
result of or arising out of employment by, or doing business with, a lobbyist
or lobbyist principal; and
(ii) things of value received
from any director, stockholder, partner, agent, affiliate, member, employee or
officer of a lobbyist principal if the donor is excepted in subparagraph (D) of
Paragraph (2) from the definition of "anything of value" in Section 2
of Chapter 1 of this title, or if there exists between the recipient and the
donor a close personal relationship of long standing in which the mutual
exchange of gifts on special occasions, such as holidays or anniversaries, has
become customary;
(B) is seeking to do business or
doing business with the governmental entity of which the state officer's or
state employee's office or employment is a part; or
(C) has an economic interest in
actions or matters before or affecting the governmental entity of which the
state officer's or state employee's office or employment is a part.
A thing or things of value given
by a lobbyist; the lobbyist principal or lobbyist principals by whom the
lobbyist is employed or retained; or a stockholder, partner, agent, affiliate,
member, employee or officer of the lobbyist principal or lobbyist principals by
whom the lobbyist is employed or retained are aggregated for purposes of the
disclosure threshold and calendar year limits, regardless of how the thing or
things of value are funded. If more than one lobbyist is retained or employed
by a lobbyist principal, the disclosure and calendar year limits of the first
lobbyist to register on behalf of the lobbyist principal for a calendar year
are aggregated with each additional lobbyist employed or retained by the same
lobbyist principal.
(d) Prohibition versus
limit--Exception. Nothing in Subsection (c) shall allow a state officer or
state employee to accept anything of value in violation of Subsection (a) of
this section. Subsection (c) shall not apply to public members when things of
value are received but are not given as a result of the public member's status
as a public member.
(e) Exceptions for state officers
and employees of judicial branch and corporations. Nothing in this section
shall allow:
(1) a judicial officer, juror,
referee, arbitrator or umpire to accept anything of value from a corporation or
any other person, knowing that person to be a party in interest or the attorney
or counsel of a party in interest to any action or proceeding then pending or
about to be brought before him or her pursuant to Section 386 of Title 21 of
the Oklahoma Statutes; or
(2) a corporation to influence
elections or official duty by contributions of money or anything of value
pursuant to Section 40 of Article IX of the Oklahoma Constitution.
(f) Exceptions for forms of
compensation, gifts to state, and officers/directors of organizations. Nothing
in this section shall prohibit the acceptance or require the disclosure of:
(1) compensation, bonuses,
dividends, interest payments, employee benefits, expense reimbursements or
other forms of compensation or earnings on investments;
(2) anything of value which is
accepted by the Governor on behalf of the state of Oklahoma or a governmental entity
pursuant to Section 381 et seq. of Title 60 of the Oklahoma Statutes. Section
381 et seq. of Title 60 of the Oklahoma Statutes. In order to be deemed
accepted, the Governor must be notified in writing of any gift received by a
governmental entity, or person on behalf of a governmental entity, within ten
(10) days of receipt of the gift. Notice of acceptance must be received from
the Governor within the next thirty (30) days. Upon lack of a response from the
Governor within thirty (30) days of receipt of notice, the gift is deemed
rejected and must be returned to the donor; or
(3) the solicitation or
acceptance of anything of value for or from either:
(A) a charitable organization or
an organization described in Section 501 (c) of Title 26 of the United States
Code, 26 U.S.C., Section 501 (c), as it currently exists or as it may be
amended; or
(B) a tax-exempt professional
organization established by state statute or rules passed by the Oklahoma
Supreme Court,
by a member, state officer or
state employee, who is a member, officer or director of the organization, when
receipt of anything of value results from the member, state officer or state
employee attending a function, meeting or seminar on behalf of, or as a
representative of, the organization.
(g) No state officer or state
employee shall directly or indirectly borrow money from a lobbyist, or an
immediate family member of a lobbyist, or an entity controlled by or employing
a lobbyist. This subsection shall not apply to:
(1) a loan of money made by a
commercial lending institution, in the regular course of business, on the same
terms ordinarily available to members of the public, and which is not secured
or guaranteed by a lobbyist or lobbyist principal or any other person on behalf
of a lobbyist or lobbyist principal; or
(2) a loan from a father,
stepfather, father-in-law, mother, stepmother, mother-in-law, sister, step
sister, brother, step brother, child, step child, adopted child or their
spouses.
(h) Except for the compensation
an elective officer is entitled to by law for the performance of official
duties, no elective officer shall solicit or accept cash, check or cash
equivalent compensation for an article, appearance or speech, or for
participation at an event, unless the article, appearance or participation is
made as part of the normal course of business in the member’s private
occupation.
Standard 257:20-1-10. State
Officers' and State Employees' Private Interests in Public Contracts.
(a) Prohibition on contracting
with state - Exceptions.
(1) State officers and state
employees. No state officer or state employee, except a public member, shall
sell, offer to sell or cause to be sold, rent or lease either as an individual
or through any business enterprise in which he holds a substantial financial
interest, goods, services, buildings or property to the governmental entity
with which the officer or employee is associated or to any business entity
licensed or regulated by the governmental entity which the officer or employee
serves. This section shall not apply to students who are engaged in bona fide
work-study programs at institutions of higher education within the Oklahoma
State System of Higher Education.
(2) Limited exceptions.
Paragraph (1) of this subsection shall not apply to
(A) a state officer if real
property is acquired from the state officer by condemnation proceedings; or
(B) a state employee if real
property is acquired from the state employee either by condemnation proceedings
or the price to be paid for such property is approved in writing by the
appointing authority of the agency acquiring such property and by the Governor.
(b) Contracting with current or
former legislators and statewide elective officers-Exceptions. No legislator or
statewide elective officer shall sell or cause to be sold, rent or lease either
as an individual or through any business enterprise in which he holds a
substantial financial interest, goods, services, buildings or property to any
governmental entity. No state officer or state employee, acting in his or her
official capacity, shall enter into any contract in which the state officer or
state employee knows that a person who is then or has been a legislator within
the previous year, or a member of such person's immediate family, has a
substantial financial interest. The provisions of this subsection shall not
apply to a contract of employment with an immediate family member of a
legislator, together with any renewal, promotion or lateral transfer of such employment
contract to another governmental entity, which is:
(1) in existence on July 1, 1994;
(2)in existence prior to the
legislator's term of office;
(3) in existence prior to
marriage to the legislator; or
(4) with a student employed on a
part-time basis, which shall be seventy-five percent (75%) of a normal
forty-hour work week or thirty (30) hours per week, or less, and who is
regularly enrolled, as defined in Paragraph 11 of Section 840.8 of Title 74 of
the Oklahoma Statutes, in an institution of higher education comprising the
Oklahoma State System of Higher Education
No legislator or statewide
elective officer shall attempt to influence or perform an official function
requiring the exercise of discretion relating to a contract with any governmental
entity if a member of the legislator's or statewide elective officer's
immediate family has a substantial financial interest in such contract.
(c) Exceptions.
Subsections (a) and (b), except as prohibited by law, shall not apply to:
(1) contracts with state
employees for goods or services valued at less than five thousand dollars
($5,000);
(2) contracts with state
employees entered into after public notice by the governmental entity and
compliance with competitive bidding procedures; and
(3) employment contracts entered
into with former legislators.
(d) Exceptions for care of DHS
clients only.
(1) Care of children in need of
treatment. Employees of the Department of Human Services are authorized to
contract with qualified former state employees, or the spouses of state
employees, or other relatives of state employees, for the purpose of providing
direct care or treatment services to clients of the Department who are mentally
retarded or have other developmental disabilities or are delinquent, children
in need of supervision, or in need of treatment, or deprived. Provided,
however, that rates of payment and other terms and conditions of contracts
entered into pursuant to this section shall be established by the Commission
for Human Services and shall be no more favorable than contracts for such
services with persons who were not employed by the Department of Human Services
nor related to an individual employed by the Department of Human Services.
(2) Limitations on return to
state employment. A state employee terminating state employment to provide
direct care or treatment services to clients of the Department of Human
Services who are mentally retarded or have developmental disabilities, are
delinquent, children in need of supervision, or in need of treatment, or
deprived may not return to state employment for a period of one hundred eighty
(180) days after date of termination from contracts with the Department of
Human Services for direct care or treatment services to clients of the
Department of Human Services who are mentally retarded or have developmental
disabilities or are delinquent, children in need of supervision, or in need of
treatment, or deprived.
(3) Exceptions for contracting
with employees of OU Health Sciences Center. Notwithstanding Subsection (a) of
this section, employees of the Department of Human Services are authorized to
employ or contract with personnel of the University of Oklahoma Health Sciences
Center, directly or indirectly, to obtain professional services for the Oklahoma
Medical Center or clients of other programs administered by the Department of
Human Services.
(4) Exceptions for Foster care,
respite care, or services to children. Notwithstanding Subsection (a) of this
section, employees of the Department of Human Services are authorized to
contract with qualified state employees, or the spouses of state employees, or
other relatives of state employees, for the purpose of providing foster care,
respite care, and attendant services to children in the custody of the Department.
Standard 257:20-1-11. Actions
Taken while Negotiating for Employment.
A state officer or a state
employee shall promptly disqualify prior to recommending or taking any official
action in a matter affecting a person with whom the state officer or state
employee is negotiating for employment.
APPENDIX
D
TIPS
FOR AVOIDING CONFLICTS OF INTEREST
Employees should conduct their activities so as to
avoid Conflicts of Interest and must respond appropriately when Conflicts arise.
You are required to keep your Financial Interests separate from your Research
and University obligations in order to protect your students, trainees, and
others for whom you are responsible; preserve the integrity of your Research;
and cause no harm to human research participants. In addition, relationships
with Companies must not compromise academic freedom or delay or prohibit
publication arising from your University activities.
These tips are meant to serve as a guide to
Employees about issues that need to be considered when engaging in activities
that may involve a Conflict.
HOW IS A CONFLICT OF INTEREST ASSESSED?
One way to assess the potential for a Conflict of
Interest is to ask, “How would this look on the 6:00 news?” You should note that perceived bias can be
just as damaging as actual bias. So, you should ask the following questions
about the proposed activity:
A. Are basic
academic values upheld? For example,
1. Is an open
academic environment maintained?
2. Are there
prohibitions on publications or dissemination of Research?
3. Are
University licensing practices addressed?
4. Is the use
of University resources and facilities appropriate?
5. Are students used for private gain of the Company or their
mentors, and are they free to choose and publish their Research?
B. What is the
nature of the activity?
1. Does it
overlap with the University’s interests?
2. Is the
activity appropriate to the mission of the University?
C. Could personal
Financial Interests have a direct and significant effect on the activity? For
example,
1. How much
income or Equity is involved and what are the sources?
2. Could the Financial Interests be a significant incentive for the
individual with the Conflict?
3. Could the
Financial Interest pose a direct Conflict with the activity?
4. Could the Financial Interest compromise the objectivity of the
activity including its evaluation and presentation?
D. Could human
research participants involved in the Research be harmed by the Conflict?
If you CONSULT for a Company
A. Your primary commitment is to the University
and your consulting arrangement may not conflict with that obligation or
conflict with any other University rules or regulations.
B. The scope of your consulting responsibilities
needs to be very specific so that it does not interfere with University
responsibilities or publications resulting from your academic work.
C. You must not provide the Company with early or
exclusive access to results of your University Research, except in compliance
with a separate sponsored research agreement with the Company and the
University.
D. You must disclose this relationship with the
Company in publications and public discussions of any of your Research that is
sponsored by the Company or related to the Company.
If you serve on a BOARD OF DIRECTORS OR ADVISORY
BOARD
A. You are normally permitted to sit on
scientific or medical advisory boards, subject to appropriate disclosure;
however, your primary commitment is to the University and your service must not
conflict with that obligation or with any University rules or regulations.
B. You may serve on a Board, but must disclose
that service to the appropriate Vice President when a Conflict arises or is
anticipated.
C. You must recuse yourself from Board decisions
affecting University interests or resign your Board position.
D. You must not provide the Company with early or
exclusive access to results of your Research, except in compliance with a separate
sponsored research agreement between the Company and the University.
E. You must keep your Financial Interests
arising from service on Boards separate from your Research and University
obligations.
F. You must disclose this relationship in publications
and public discussions of any of your Research that is sponsored by the Company
or related to the Company.
If you perform a PROFESSIONAL ACTIVITY for a Company
in which you have a FINANCIAL INTEREST
A. You must report the financial interest on the
Conflicts of Interests Disclosure Form.
B. The more significant the interest is
financially, or the more likely the Research may benefit the Company (and thus
your interest—particularly in the case of stock options), the greater the risk
of the appearance of biased Research or Research results.
C. You must disclose this Financial Interest in
publications and public discussions of any of your Research that is sponsored
by the Company or related to the Company.
D. Financial Interests can raise the issue of
such incentives compromising objectivity, particularly where human research
participants are involved.
If the University has a LICENSING AGREEMENT with a
Company for technology you developed
A. All discoveries and inventions, whether patentable
or unpatentable, and including any and all patents
(domestic and foreign) based thereon and applications for such patents, which
are made or conceived by any member of the faculty, staff, or student body of
the University, either in the course and/or scope of employment for the
University or substantially through the use of facilities or funds provided by
or through the University shall be owned by and be the property of the Board of
Regents except as otherwise provided in the University Intellectual Property
Policy.
B. You may have a sponsored research agreement
through the University with the Company in which you have a Financial Interest
upon approval of the Appropriate Vice President.
C. You may have a consulting agreement through
the University with the Company in which you have a Financial Interest upon
approval of the Appropriate Vice President.
D. Be aware that if you have federal funding for
Research related to the licensed technology, the federal government retains
rights to the results of the Research and inventions or discoveries arising
from such Research.
If you receive GIFTS from a Company
A. Gifts are often used as incentives to engender
loyalty or support to a Company or its products and as a means of securing some
commercial advantage. They may include such things as equipment or reagents and
supplies, travel, or unrestricted Research support.
B. Corporate gifts for educational activities
should not create a venue for access to Research results, an opportunity for
promoting a Company's product or products, or provide the Company with
preferential treatment.
C. Unrestricted gifts for Research support are
donations and, as such, the Company receives no intellectual property rights or
access to Research results. Such gifts should not be accepted when specific
Research activities are targeted for the gift money by the donor.
D. Employees should be aware of limits on
accepting gifts imposed by the State Ethics Rules.
APPENDIX
E
QUESTIONS
AND ANSWERS
F.1. What
is the purpose of the disclosure requirements under this policy?
Disclosure
is required whenever there is a Conflict of Interest so that a management
strategy can be developed to assure that the Conflict does not interfere with
the Employee's performance of his/her University responsibilities. Disclosure can be beneficial to both the
University and the Employee in order to protect them against unfounded claims
of impropriety. Disclosure does not
necessarily mean that the Employee may not engage in the disclosed activity.
F.2. I am
a faculty member who has received a grant to support my research. A member of my household recently completed
his Ph.D. and I would like to hire him as a post-doctoral fellow on my grant. Can I do this?
Because
of the personal relationship and inasmuch as the person is a member of your
household it would not be appropriate for you to hire, supervise or evaluate
this person. See the University’s Nepotism Policy for additional guidance.
F.3. I am
a faculty member with a Spin-Off Company and want to hire a graduate student I
am advising to do some Research for this Company. Is this ok?
This
represents a Conflict of Interest that probably may be managed if the Research
does not overlap with the student’s academic program. It is important that both
you and the student understand that engaging (or even a decision to not engage)
in this activity can in no way influence the student's academic relationship
with the advisor and the University. In
order to insure this, any arrangement should be disclosed and reviewed
periodically for a continuing relationship.
F.4. I am
a faculty member and wish to test some samples for a Company for which I am
also consulting. How can I do this?
Since
you wish to have two professional relationships with the Company, this
represents a Conflict of Interest that may be manageable through contracts with
the University (fee-for service). You
may submit a proposal for the testing services through the Office of Research
Services (ORS) and use the appropriate forms to disclose your relationship to
the Company. If there are no
intellectual property issues, the primary issue is deciding on a fair value for
the services to be performed.
F.5. I am
a faculty member and the technology that I developed was licensed to a Spin-Off
Company. Can I be the Principal Investigator for an SBIR NIH grant application
the Company is submitting?
This
represents a Conflict of Interest that may be managed and must be disclosed
prior to submission of the grant application. The PI of an SBIR grant must be
employed by the “small business concern” for a minimum of 51% FTE. Therefore,
the PI must obtain the approval of his/her Unit Head to commit this level of
effort to the Company.
F.6. I am
a faculty member working with a Company that will submit a "Small Business
Innovative Research" (SBIR) project to the federal government for which
the Company would subcontract the experimental work to the University. How can this be done?
If
you will serve as the University’s Principal Investigator on the subcontract,
the University will work with the Company on the subcontract after the SBIR is
awarded to the Company. Additionally, an intellectual property agreement will
likely need to be executed between the Company and the University, unless there
is already one in place.
F.7. I am
a faculty member with a Spin-Off Company that is submitting an STTR NIH grant
application. Can I be the Principal Investigator of the grant?
This
represents a Conflict of Interest that may be managed and must be disclosed
prior to the submission of the grant application. The PI of an STTR grant must
commit a minimum of 10% effort to the grant. Therefore, the PI must obtain the
approval of his/her Unit Head to commit this level of effort to the grant.
F.8. I am
a faculty member who, with my spouse and children, owns ten percent interest in
a small biotechnology Company. The
combined value of the stock we hold in this Company is $25,000. I am writing a research proposal that I plan
to submit to the National Institutes of Health to support a project that is
related to the business interests of the Company. Can I do this?
You
may be able to do so. To comply with University
policy and National Institutes of Health rules, you will need to disclose your
involvement in the Company by disclosing your involvement in the Company in the
completing the appropriate Conflicts of Interest Disclosure forms at the time
you are submitting your proposal. Your
involvement in the Company and project will be reviewed at that time. If you receive funding from NIH, agency rules
and University policy may require further review and restrictions or conditions
may be imposed to manage, reduce, or eliminate the possibility that your
research project could be influenced by your business interests. The NIH rule requires that the University
certify that such issues have been resolved before you start spending any funds
for your research project.
F.9. I
have a business arrangement (e.g., a consulting or executive position) with an
engineering Company and they pay me to review research data and provide them
with my evaluation. They do not support
any of my research. I do have support
from other sources for my research that is related to the area of the
engineering company. Is this a Conflict?
Yes,
this is a potential Conflict of Interest as it may bias your research
evaluations or otherwise affect your research results.
F.10. My
spouse is a member of the Board of Directors of a Company that competes with a
Company for which I do research. Is
there a Conflict in this situation?
Yes,
this situation represents a potential Conflict of Interest. Due to relationships within Families, there
could exist the potential of a bias in the research you conduct.
F.11. I am
doing research funded by a Company in which I have not purchased stock. My father-in-law recently died and left in
his estate to my wife stock in this Company.
Am I in violation of the Conflict of Interest policy?
If
the value of the stock is at least $10,000 there is a Conflict of Interest that
must be reported. It is for
circumstances such as these that an annual evaluation is required by NSF and
NIH as Conflicts may not be present at the beginning of funded research but may
surface sometime during the research period.
F.12. One of
my hobbies is photography, and I have started a part-time business taking
wedding pictures on weekends. Do I need
to disclose this activity to my supervisor?
Since
your outside business is neither related to nor does it interfere with your
University responsibilities, it is not necessary for you to disclose this
activity.
F.13. My lab
is getting ready to replace our office copy machine. My brother-in-law owns a business machine
store in town, and he has offered to sell us a new copy machine at his
cost. Can I buy the machine from him?
The
purchase of a new copier for your lab would come under University purchasing policy
and the Purchasing Department will obtain competitive bids before a purchase
can be made. You would have to remove
yourself from the bidding process. If
your brother-in-law's store submits the low bid, they could be awarded the
contract. Since you would not be
involved in review and acceptance of the bids, this process would not present a
Conflict of Interest for you.
F.14. I am a
faculty member who receives a royalty payment for a survey instrument that I
developed. May I test a competitive instrument?
This
represents a Conflict that probably can be managed. You must disclose this
relationship pursuant to this policy.
APPENDIX F
FORMS
Provost form
ORS form
OTD form
IRB form
APPENDIX G
OTHER UNIVERSITY POLICIES
THAT MAY RELATE TO CONFLICTS OF
INTERESTS
Conflicts
of Interest may take various forms but exist when there is contradiction
between the private interests and professional obligations of a University
employee. In addition to being addressed
directly in this policy, such Conflicts are addressed in other University
policies which govern conduct of employees' professional activities. A listing of such policies follows. This list is not presented as comprehensive
of all references to Conflicts that may occur in the University environment. A
University employee should consult specific University policies as presented in
the Faculty Handbook, Staff Handbook, and Administrative Policies for guidance
and information regarding specific situations which may relate to Conflicts of
Interest.
1. General Purchasing Policies
2. Academic Freedom and Responsibility
3. Sabbatical Leave
4. Ethics in Research
5. Intellectual Property Policy
6. Nepotism
7. Use of State Vehicles for Private Purposes
8. Off-Campus Use of University Property
9. Conducting Private Business from
State-Owned Facility
APPENDIX H
PRINCIPAL BASIS OF A CONFLICT OF
INTEREST MANAGEMENT PLAN
In most cases,
a Conflict of Interest Management Plan involves identifying a third party to
act on behalf of the individual for whom the conflict exists. This third party must be employed within the
same organization, cannot be at the equivalent level of employment as the
individual conflicted, and ideally is in a line of direct authority one or two
levels above the individual conflicted.
The third party makes decisions regarding, and has signature authority
for, all non-technical/academic matters, such as determination of salary/raises
and performance evaluations.
[1] See Appendix A for definitions of key terms.
[2] State refers to the State of Oklahoma unless otherwise indicated.
[3] A financial interest is an interest that could result in directly or indirectly receiving a pecuniary gain or sustaining a pecuniary loss as a result of ownership or interest in a contestant or business entity; or as a result of salary, gratuity or other compensation or remuneration from any person.
[4] Available at http://vpr-norman.ou.edu/policies.
[5] Available at http://vpr-norman.ou.edu/policies.