Chapter 5: Institutional Conflicts of Interest

5.1 Purpose

This University of Texas at El Paso (University) policy assures the identification, evaluation, management, and/or elimination of a matter that creates an Institutional Conflict of Interest (ICOI) or the appearance thereof. This policy applies in addition to general University policies, such as the University’s Standards of Conduct Guide, and policies governing conflicts of interest and conflicts of commitment in order to safeguard the primary mission of the University.

5.2 Policy Statement and Applicability

This policy applies to ICOIs which cannot be allowed to compromise, or appear to compromise, the Institution’s mission. The relationships fostered between the University and industry are imperative for scientific advancement, commercial development, and public distribution of licensed and marketed intellectual property which must correlate with the University’s primary mission. As the University engages in relationships that lead to financial or reputational benefit for the Institution or Institutional Officials, the risk must be assessed and aligned with the Institution’s mission. Individual conflicts of interest are addressed in Regents’ Rule 30104, UTS 175, and UTS 180 and the University Handbook of Operating Procedures (HOP), Section V, Chapter 29 and Section IV, Chapter 2.

5.3 Institutional Conflicts of Interest

5.3.1 ICOI Examples

ICOIs may arise in situations including, but not limited to, the following:

An Institution licenses intellectual property to an outside entity and holds substantial royalty or equity interests in the entity which may be affected by ongoing Institutional research or other Institutional activities;
Substantial gifts to the Institution appear to be connected to decisions related to the Institution’s primary mission in ways that may not be appropriate;
An Institution holds substantial investments or equity interest in an outside entity that has a financial or business relationship with the Institution;
A Significant Outside Financial Interest of any Institutional Official affects or appears to affect the decisions of the institution;
An Institution enters into a transaction that compromises or appears to compromise the Institution’s research, teaching, service to students, outreach mission activities, or reputation.

5.3.2 Review Committee

The University shall create and maintain an ICOI Committee (the Committee) to review ICOIs and to advise on the identification, disclosure, management, or elimination of all facets of ICOIs. In the event that a particular ICOI relates to the Significant Outside Financial Interests of the President, the Committee has the authority to report its recommendations directly to UT System Administration. The Committee has the authority to refer potential ICOIs directly to UT System Administration in any other circumstance as determined by the Committee. Members of the Committee are selected and appointed by the President.

5.3.3 Committee Procedure

Four (4) voting Committee members will be appointed by the President, and five (5) Committee members will be ex-officio members. One (1) voting member will not be affiliated with the University. Three (3) Committee members must be tenured faculty members at the Associate Professor or Professor rank, chosen from a list of at least six (6) eligible faculty members created by the Faculty Advisory Body. The President will appoint one (1) of the faculty members to serve as Committee chair.

Ex-officio members will include the Faculty Advisory Body representative; the Vice President for Business Affairs; the Vice President for Research; the Vice President for Institutional Advancement; and the Director for Research Protections. The Chief Legal Officer will attend meetings as a non-voting member and serves as legal advisor to the Committee.

Appointed members who are not ex-officio will serve three (3) year terms and may be reappointed by the President for additional terms. Any vacancies of appointed members will be filled by Presidential appointment to serve the remainder of the unexpired term.

Quorum is defined as one more than half of the voting members and must be maintained for all Committee votes. Because of the sensitivity of the topics addressed, meetings generally will be closed to visitors. However, invitations to attend a portion of the Committee meeting may be extended to individuals with special expertise related to agenda topics. Additionally, and at its discretion, the Committee may appoint non-voting ex-officio members for renewable one-year terms.

5.3.4 ICOI Reporting

Potential ICOIs should be forwarded for Committee review as soon as they are identified. Institutional policies should allow for the anonymous reporting of potential ICOIs. The University will utilize its existing system allowing the anonymous disclosure of any situation suspected to involve an ICOI to the Committee for review.

5.3.5 Monitoring and Ongoing Management

The University will provide for regular reviews of disclosure statements and Management Plans to determine University compliance with this policy.

5.4 Definitions

Executive Officers: Includes, but is not limited to, the President, and all individuals who report directly to the President (other than administrative support positions).

Institutional Conflict of Interest (ICOI): Any Significant Outside Financial Interest of the Institution or an Institutional Official that reasonably poses a risk of significant and direct influence on decisions involving the Institution’s primary interests or missions (e.g., research, teaching, service to students, and/or administration of these missions).

Institutional Official: Includes executive officers, and any employee who exercises broad and significant decision-making authority over key Institution functions.

Management Plan: A written understanding of the situation that gives rise to an Institutional conflict of interest and the management mechanisms that will be implemented to mitigate or eliminate the conflict.

Significant Outside Financial Interests of the Institution: Any substantial financial interest, including:

Gifts from any person, business, or entity;
Payments from a person, business, or entity for the licensing of intellectual property; and
Equity and ownership interests in entities held by the Institution, including equity and ownership interests resulting from technology transfer activities.

The University may choose to adopt more specific criteria and thresholds, suitable to the Institution’s unique circumstances.