37.0 II-3.30-POLICY ON CONFLICT OF INTEREST FOR FACULTY INTEREST IN SPONSORED RESEARCH AND ECONOMIC DEVELOPMENT

I. Maryland law establishes certain conditions for faculty interest in certain sponsored research or development activities, as a part of its other ethics requirements. The following policy is consistent with these conditions.

A. A faculty member may have an interest in or serve as an employee, director, or officer of an entity engaged in sponsored research or development, or an entity having a direct interest in the outcome of sponsored research, if:
1. such interest, service, employment, or other relationship to the entity is publicly disclosed on a form approved by the State Ethics Commission. The form shall be filed with the Commission and a copy maintained as a public record at the educational institution, and

2. the interest, service, employment, or other relationship to the entity is approved by the President of the educational institution in accordance with the institution's faculty conflict of interest policies and procedures and this policy. No interest, service, employment, benefit or other relationship shall be approved if the faculty member has substantial agency policy or management responsibility for the sponsored research or development.

B. If the above provisions are not met, the faculty member is not exempt from any of the provisions of Title 3 of Article 40A. Exemption provisions under this section apply only to faculty activities related to sponsored research or development and not to other activity by the faculty member that may constitute a conflict of interest, but is not related to the sponsored research or development.

II. Procedures

A. Each constituent institution and center of the University of Maryland System shall develop and implement a procedure for faculty seeking approval to hold an interest in or to serve as an employee, director, or officer of an entity engaged in sponsored research or development, or an entity which:

1. has a direct interest in the outcome of sponsored research or development administered by the institution or center;

2. is engaged in sponsored research or development administered by the institution or center; or

3. participates in economic development programs administered by the institution or center.

B. Procedures shall include:

1. Disclosure Provisions

There shall be a requirement for timely disclosure of faculty interest, service, employment, gifts or other relationships to the entity. The disclosure shall include those relationships which would be required for filing under title 4 of Article 40A of the Maryland Code and should address both actual conflict and the appearance of conflict.

2. Review

Disclosures of interests shall be reviewed by person(s) able to determine whether or not the disclosed interest represents a harmful interest. Approval shall not be granted where harmful interest is determined. Approval shall not be granted if the faculty member has a substantial agency policy or management responsibility for the proposed program. The disclosure shall be filed publicly with theState Ethics Commission, and with the constituent institution.

3. Approval

Each exemption must have the approval of the president of the constituent institution and his/her determination is final.

The procedures shall be approved by the Office of the Attorney General and approved as to conformity with Maryland Public Ethics Law by the State Ethics Commission. The approved procedures shall be filed with the Office of the Chancellor.

Exemptions granted under this policy do not relieve a faculty member's continuing obligation to adhere to other aspects of the University's policies, including the System Policy on Professional Commitment of Faculty, or to the obligation to adhere to other provisions of the Maryland Public Ethics Law.

4. Guidelines

The constituent institution shall develop guidelines to insure that activities conducted under sponsorship do not improperly give advantage to the sponsoring entity because of its affiliation or involvement with a faculty member.

III. Reporting

Constituent institutions shall submit an annual report of all granted exemptions to the Chancellor by May 30 of each year.

The Board of Regents shall submit a report of exemption by June 30 of each year to the Legislative Policy Committee of the Maryland General Assembly.

IV. Definitions

A. "Harmful interest" means an interest which when examined under the review procedures is found to be so influential as to impair impartiality in the conduct of the research, the interpretation of the results of the research and/or determination of priorities due to the conduct of other professional commitments to University of Maryland System institutions.

B. "Faculty conflict of interest policies and procedures" means all policies and procedures of the System and of the constituent institution which relate to the professional conduct of faculty members.

C. "Sponsored research or development" means those basic and applied research activities which are performed under written agreement with an extramural agency including technology transfer agreements and those University of Maryland System institutions and constituent agreements wherein a faculty member provides services to entities engaged in research and development.