The University Senate of Michigan Technological University
PROPOSAL 2-03
(Voting Units: Full Senate)
Definitions
Conflict of Interest: Actual,
possible or perceived Conflicts of Interest and/or conflicts of commitment, including
time, as discussed in General Principles 1.1.
Committee: MTU Conflict of Interest
Committee
Coordinator: MTU Conflict of Interest
Coordinator
Member: A member of the MTU community.
MTU: Michigan Technological University
MTU Community: All faculty, staff,
students, and administrators of MTU.
MTU Resources: Includes all
facilities such as office space and equipment, as well as information
technology (including web site servers and telecommunications), personnel and
stationery.
Policy: The MTU Conflict of Interest
policy for which these procedures were developed to implement (Board of Control
Policy 3.13).
Procedures: These Conflict of Interest
procedures.
Proposal: A proposal for externally funded
or sponsored research, education and training activity,
or other external collaborations.
Relative: A member of the MTU community's
spouse, child (by blood, adoption or marriage), parent, or person
with whom the member has a close personal relationship.
Supervisor: Department chair, dean,
director; in some cases a researcher, staff,
faculty member or administrator other than a chair, dean or director.
Preamble
MTU is a complex, dynamic
university of which we are proud -- a university with important goals and
remarkable achievements. For the purpose of these Conflict of Interest
procedures, this dynamism has two consequences. First, though these procedures
strive to be comprehensive, these procedures cannot address every possible
situation and do not obviate the need of members to understand and follow
other MTU policies and procedures. Second, as the market and our collective
expertise develop, new conflict of interest challenges will arise.
In applying these procedures, the President and Board
of Control relinquish none of their constitutional or statutory authority.
Finally, members should be reminded that the Board of Control cannot
change or override federal, state or local laws; as such, members must continue
to abide by these laws notwithstanding anything that may appear in these
procedures.
1 General Principles
1.1 Conflict of Interest in the
university context is a very difficult subject, for it touches on many
different, but related, topics, including proprietary rights and
use of MTU resources. Conflicts can be divided into two basic
categories. The first covers what many people traditionally associate with the
term Conflict of Interest -- opportunities for inappropriate personal gain
during the pursuit of official duties. The gains might be financial, but may
include other forms of benefit such as power or political advantage. The second
category covers conflict of commitment -- the choices individuals make about
their professional priorities, especially the allocation of their time to the
different institutions and organizations they serve as professionals. Members
may encounter conflicts of commitment when outside professional activities take
priority over other MTU-related responsibilities.
1.2
An important function of these procedures is to (i) describe appropriate
commercial relationships beyond normal MTU business between supervisors,
faculty, and other researchers and their staff subordinates, students and other
parties, and (ii) identify when those relationships generate
potential or actual Conflict of Interest and should be disclosed, mitigated, if
possible, discouraged, or disallowed.
These procedures identify five categories of activity that may generate
Conflicts of Interest: (i) activities which are usually exempt, (ii) outside
professional service activities, (iii) activities or external relationships
with minimal financial interests, including supervision of relatives, and the
use of university resources, (iv) complex external relationships, including
business activities and entrepreneurial projects.
1.3 Most situations that pose
Conflicts of Interest involve contacts or relationships between individual
members and external entities that compromise, or appear to compromise, the
judgment, activities or perceived loyalty of those individuals. Perception is
an especially important but slippery realm, for it is not guided strictly by
"the intentions" and perception can be as damaging to the individual
and MTU as are clear-cut, open conflicts. Therefore, it is incumbent upon the
member to disclose sufficient information so that any perception of a Conflict
of Interest can be addressed and satisfactorily resolved. MTU thus will
consider how Conflict of Interest appears to an outside third party when
applying these procedures.
1.4 These procedures primarily
address conflicts emerging from professional activities. MTU does not seek to
regulate private decisions that are protected by statute. However, nothing in
these procedures should be construed as allowing any member of the MTU
community to avoid other obligations under state and federal law. For example,
patent and copyright laws must be followed (see Board of Control Policy 18,
especially section 1, on Patent and Other Proprietary Rights).
1.4.1 There is a State of Michigan Statute on
Conflict of Interest, MCL 15.321, et seq. (the "Statute") that
requires that MTU members disclose any pecuniary interest in a contract with
MTU to the Board of Control, which will make the disclosure a matter of record
in its official proceedings. Any member contemplating a contract with MTU must
disclose this to the Coordinator, who will make a determination regarding the
conflict with respect to the provisions of the Statute, and if required by the
Statute, will report the conflict to the Board of Control.
1.5 MTU's Conflict of
Interest policies and procedures rest upon the following:
1.5.1 Upon becoming a member, every
individual makes a commitment to MTU. Those who accept full-time appointments
or employment at MTU must accord MTU their primary professional loyalty. These
procedures require, therefore, that every member arrange their personal
interests and activities so as not to conflict with their commitment to MTU.
This avoidance of Conflict of Interest requires that individuals shall not
realize improper gain, financial or otherwise, from either (i) the inappropriate
use of MTU property, funds, equipment, prestige, or other resources; or (ii)
from the exercise of outside professional opportunities that conflict with the
conduct of their MTU duties.
1.5.2 These procedures do not require
members to avoid involvement in outside public or private activities. To the
contrary, such involvement is often wholly consistent with MTU's mission to
educate its students and serve the public interest.
1.6 It is vital to the successful
performance of MTU's mission that members be as free as
possible from Conflicts of Interest. No member may undertake any activity
that constitutes an actual or perceived Conflict of Interest, except as may be
expressly approved and/or permitted pursuant to these procedures. It is each
member's responsibility, therefore, to contact the Conflict of Interest
Coordinator (Coordinator) if he or she encounters a Conflict of Interest not
contemplated by these procedures or if there is uncertainty about the existence
of a conflict.
1.7 In the event that any member
makes any disclosure to any MTU official pursuant to these procedures with
respect to an ongoing project or relationship, such member must submit complete
and accurate follow-up disclosure, in the same form as previously submitted, to
such MTU party if change of circumstances has rendered any previously submitted
Disclosure Form materially inaccurate or incomplete.
1.8
In the event that the Conflict of Interest Coordinator or Committee proposes
remedies or mechanisms for ameliorating, mitigating, or eliminating a member’s
Conflict of Interest, these shall be reported to the member’s supervisor.
1.9
The MTU Board of Control is governed by separate Michigan statutes with respect
to Conflict of Interest (MCL15.301 and MCL 15.341). As a courtesy, the Board may disclose Conflicts of Interests to
the Coordinator.
2 Category I: Outside
Activities Exempt from Conflict of Interest
Participation in Category I traditional professional
activities do not typically create Conflicts of Interest or commitment (but see
section 6.2), and as such do not normally have to be fully disclosed to the
Coordinator. Category I activities include, but are not limited to:
If a member has reason to believe that an ordinarily
benign Category I activity may create a Conflict of Interest, they must fully
disclose this potential Conflict of Interest to the Coordinator prior to
participation in the proposed activity. The Coordinator will promptly determine
whether the proposed activity would constitute a Conflict of Interest, and in
consultation with the member, settle upon an appropriate course of action.
3 Category II: Outside Professional Service
Activities Which Create Conflicts of Interest
3.1 Definitions
3.1.1
Activities that may generate Category
II Conflicts of Interest include:
3.1.2 Activities that do not generate Category II Conflicts of Interest include:
3.2 Category II Guidelines
3.2.1 Members should not allow their
outside service activities to interfere with their primary responsibilities to
MTU.
3.2.2 The time and attention devoted to
rendering an outside professional service must not have priority over routine
MTU obligations, unless the member has been appropriately released from those
obligations.
3.2.3 By way of guidance, members may
not engage in Category II activities in excess of an average of one day per
five-day workweek, and fifteen days per academic semester. Faculty and
researchers may, upon approval of their supervisors, be extended the limited
privilege of flexible scheduling of some working hours so that some Category II
activities in excess of this level are performed during normal working hours
during the period required to accomplish the service or activity.
3.3 Disclosure and Review
3.3.1 Each Member must promptly and fully
disclose in writing to their immediate supervisor when such member engages in
any Category II activities, whether or not it will result in a conflict of
interest.
3.3.2 If an immediate supervisor
determines that a Category II activity creates a Conflict of Interest or is
otherwise detrimental to the college's, school's, department's, or individual's
primary duties, he or she may require that the member submit to special
oversight or management procedures or to cease such activity. Members may
appeal their supervisor's decision to MTU's Conflict of Interest Coordinator.
4 Category III: External Relationships and Activities
With Minimal Financial Interests
4.0 Background
Certain aspects of the efforts of members to serve
their professions or the wider community may create opportunities for members
to benefit monetarily from those efforts, over and above their regular salary
or compensation. These opportunities include professional consulting; adoption
of self-authored textbooks or other course materials; royalties from patents;
sponsored research, education and training proposals; routine testing; and the
ownership and operation of small businesses not directly related to the
member’s MTU responsibilities. MTU encourages these activities in the belief
that such contacts and the activities benefit MTU, its faculty members and
students, and the wider community. But Conflicts of Interest and particularly
conflicts of commitment are inherent in these activities. When compensation is
small, the primary conflict is likely to be a conflict of commitment, as a
member diverts his or her time from regular responsibilities from MTU to an
outside professional activity. The first step in mitigating such a conflict is
prior disclosure of the activity to the member's immediate supervisor. In some
cases, additional required actions are described in the guidelines below.
In addition, two activities that are deemed Category
III activities are use of university facilities and supervision of relatives.
4.1 Consulting
Category III activities include providing consulting
services by a member on more than a one-time basis where such services are
related to the member's area of professional expertise. Professional activities
or outside employment of any type undertaken by faculty on nine-month
appointments during the summer term, however, are not considered Category III
activities.
4.1.1 Category III Consulting
Guidelines
4.1.1.1 Faculty members on nine-month
appointments may provide consulting services during
that nine-month period only when the individual's primary
duties in the classroom, research, and other academic areas continue to be
performed at a high standard. (Also see section 4.1.3).
4.1.1.2 Faculty members, research staff
or administrators on twelve-month appointments may pursue consulting on a
limited basis only, because of the demands placed on their time by MTU. (Also
see section 4.1.3).
4.1.1.3 Any Category III consulting that
overlaps with or takes place in the context of potential Category IV activity
(e.g., financial interests above the Category IV threshold of $10,000 annually)
will be reviewed by the Coordinator to determine if the activity should be
considered Category IV and follow the procedures thereto (see section 5).
4.1.1.4
A full-time member may not engage in Category III activities in excess of the
equivalent of one day per week during the regular academic year, up to a
maximum of 36 days. Should the member be required to be absent from work or to
miss meeting regularly scheduled classes in order to engage in the Category III
activity, the member’s supervisor must approve the absence in advance.
4.1.1.5 Members may not divert work from
MTU that would normally be funded through sponsored
research or other proposals into their
own Category III consulting activity for the purpose of avoiding payment of MTU
overhead or to reduce third party costs.
4.1.1.6 Members may not compete with
professional or instructional
services offered by MTU.
4.1.1.7 Members may not accept consulting
contracts that could be perceived as conveying competitive advantage to third
parties due to the member's employment at MTU.
4.1.1.8 Members must not accept
consulting contracts that expose the individual or MTU to actual or apparent
conflicts arising from multiple concurrent financial, advisory, or occupational
programs.
4.1.1.9 Faculty and staff members with
financial relationships outside of MTU who can apply for sponsored funding
should not allow such pursuits to interfere with their pursuit of sponsored
funding for MTU. In situations where MTU and the outside entity can apply for
the same funding, MTU has first priority in making application and the member
may not cause the outside entity to compete with MTU funding applications.
Members must first discuss such ideas or proposals with their supervisors in
such situations. The investigator must recognize that he or she owes
appropriate time and effort to MTU's search for sponsored projects.
4.1.2 Disclosure and Review
4.1.2.1 Before engaging in Category III
consulting activities, members must fully disclose proposed activity in writing
to their immediate supervisors. Supervisors may require that the member submit
to special oversight or management procedures or to cease such activities, if
they determine that such activities constitute a Conflict of Interest or are
otherwise detrimental to the college's school's, department's, or individual's
primary duties, especially if consulting places excessive or disproportionate
demands (e.g., see section 4.1.2.3) on the time, energy, or intellectual effort
of the individual involved. Members may appeal their supervisor's decision to
the Coordinator.
4.1.2.2 Supervisors may permit faculty
members or researchers to adopt a limited flexible work schedule so that some
consulting services may be performed during what would otherwise be normal
working hours during the period required to accomplish the service or activity.
4.2 Adoption of Self-authored Textbooks and Other
Course Materials
4.2.1 Definitions
4.2.1.1
"Textbooks" are books sold to students that are (i) published by
commercial or university presses, or (ii) assembled and/or published within MTU
or through local duplication services.
4.2.1.2
"Course Materials" are non-book instructional materials sold to
students that are (i) published by commercial or university presses; or (ii)
material assembled and/or published within MTU or through local duplication
services.
4.2.2 Guidelines
4.2.2.1
Faculty may not sell instructional materials directly to students.
4.2.2.2
All textbooks and course materials adopted for a class must represent, in the
instructor's professional opinion, the most appropriate choice for that class
and the students within it.
4.2.2.3
Members must select books and course materials according to the merit and
appropriateness of these items, not for personal financial gain.
4.2.3
Disclosure and Review
4.2.3.1
Faculty who receive royalties from the sale of textbooks or course materials
must disclose the use of such works to their chair or dean for approval.
4.2.3.2
If the chair's or dean's review determines that a member's use of
member-authored textbooks or course materials constitutes a Conflict of
Interest or is otherwise detrimental to the college, school, department, or MTU,
the chairperson may require the member to submit to special oversight or
management procedures or to cease the use of such textbooks or course
materials. Members may appeal the chairperson's decision to the Coordinator.
4.3 Royalties
from Patents
4.3.1 Guidelines
4.3.1.1
Members may work on or assign students, postdoctoral fellows, or other trainees
to research projects in which that member or a relative is entitled to receive
royalties or licensing fees from patents or patent applications, but has no other
financial interests in that project, provided that the roles are made clear in
writing to their immediate supervisor and the Coordinator.
4.3.1.2
Per the terms of each employee’s and graduate student's Patent, Research and
Other Proprietary Rights Agreement, and MTU’s Board of Control Policy (Chapter
18), developments made while individuals are employed by MTU must be assigned
to MTU. Use of technologies that are covered under this agreement and
related policies can only be conducted under appropriate license or other
agreements. Individuals interested in beginning entrepreneurial
activities based on developments that have occurred during their course of
employment should consult the Office of Intellectual Property and Technology
Commercialization to determine if a license is necessary and to begin
discussing licensing conditions.
4.3.2
Disclosure and Review
Members who are entitled to
receive royalties (or licensing fees) in connection with
projects and continue to conduct research related to the subject for which they
are receiving royalties must fully disclose in writing the existence of these
royalty payments to their immediate supervisor and the
Coordinator before continuing their research
or assigning others to the project. To avoid doubt, this disclosure must
include the nature and circumstances of the assistance provided by and
compensation provided to students, postdoctoral fellows, or other trainees to
such projects. The Coordinator may require the member to
submit to special oversight or management procedures or to cease such
activities altogether, and will inform the member’s supervisor of such
procedures. Members may appeal the imposition of any such remedy or mechanisms
to the Committee.
4.4 Proposals
(Sponsored Research, Education/Training,
and other Proposals)
4.4.1
Category III Proposal
Guidelines
4.4.1.1
Members that submit proposals and who conduct ongoing research and
collaborations at MTU funded by outside third parties must avoid if possible,
and disclose if unavoidable, all Conflicts of Interest including, without
limitation: (1) the existence of financial connections between the project
staff, including the investigators, and research sponsor or client; and (2)
financial involvement by investigators and/or other members of the research
team with an outside business enterprise in the same or a related research area
through consulting or other business activities.
4.4.2
Disclosure and Review
4.4.2.1 If
no Category III (or IV or V) Conflict of Interest exists for a given proposal,
the principal or cooperating investigator indicates on the MTU transmittal form
that the proposal does not present a conflict of interest, and by signing the
transmittal form, certifies that the investigator(s) have read these procedures
and are in compliance with them.
4.4.2.2 If
a Category III Conflict of Interest exists for a proposal, each investigator
must submit to the Coordinator a completed Conflict of Interest Cover Sheet and
Disclosure Form ("Disclosure Forms") at the time of submission of
each such proposal. If there are multiple investigators, Disclosure Forms
must be submitted by each investigator.
4.4.2.3
Distinct Disclosure Forms must be submitted to the
Coordinator for each separate proposal, including proposals to continue ongoing
currently sponsored research. The Coordinator will keep this information as
confidential as possible.
4.4.2.4
The Coordinator will review the submitted Disclosure Forms
for Conflict of Interest. If the Coordinator identifies a real, potential, or
perceived Conflict of Interest, the Coordinator will work with the
investigator(s) to propose remedies or mechanisms for ameliorating, mitigating,
or eliminating the Conflict of Interest, or will disapprove the proposed
activity. These remedies or mechanisms need not be finalized before submission
of the proposal, but must be finalized to the satisfaction of the Coordinator
before funds may be expended by any investigator. Members may appeal the
imposition of any such remedy or mechanisms to the Committee.
4.4.2.5
After the review the Coordinator will attach a signed internal review
form to each contract or grant proposal, indicating the satisfactory
resolution of any Conflicts of Interest. The satisfactory signed internal
review form must be in the proposal file in order for MTU to release funds to
the principal investigator. Normally
this review, including these forms, is not transmitted to funding agencies. If
funding agencies request copies of these forms, the Coordinator will confer with
Research and Sponsored Programs and the PI before releasing any information.
4.4.2.6
In the event that the Coordinator is off campus and unable to review
external research and project proposals for potential Conflicts of Interest,
other designated MTU representatives will be authorized to conduct the Conflict
of Interest review and to sign the internal review form. Cover Sheets and
Disclosure Forms so reviewed by designated MTU representatives, and the
internal review form, must then be transmitted to the Coordinator for
subsequent verification.
4.4.2.7 If a new Conflict of Interest arises after
receipt of a research award, or if the Conflict of Interest situation changes
after receipt of a research award, the investigator(s) must submit to the
Coordinator updated Disclosure Forms.
The Coordinator will review the submitted Disclosure Forms for Conflict
of Interest. If the Coordinator
identifies a real, potential, or perceived Conflict of Interest, the
Coordinator will work with the investigator(s) to propose remedies or
mechanisms for ameliorating, mitigating, or eliminating the Conflict of
Interest, or will disapprove the proposed activity. These remedies or mechanisms must be finalized to the
satisfaction of the Coordinator before additional funds may be expended by any
investigator. Members may appeal the
imposition of any such remedy or mechanisms to the Committee
4.5
Testing
4.5.1 Definitions
4.5.1.1
Testing is defined as the performance of a standard test that provides the
sponsor with results and does not involve an analysis of those results
4.5.2
Disclosure and Review
4.5.2.1
Members engaged in testing must submit Disclosure Forms to the Coordinator on
an annual basis with respect to such testing if a Conflict of Interest
exists.
4.5.2.2
After reviewing the Disclosure Forms, the Coordinator may require the member to
submit to special oversight or management procedures or to cease such testing
altogether. Members may appeal the
decision of the Coordinator to the Committee.
4.6 Small Businesses Not Directly
Related to the Member’s MTU Responsibilities
4.6.1 Definitions
4.6.1.1 Category III activities include
owning and operating a small business outside of MTU in an area not directly
related to the member’s MTU responsibilities or areas of expertise. The
ownership or operation of a small business during the summer term by faculty,
staff or administrators on nine-month appointments, however, is not considered
a Category III activity.
4.6.2 Guidelines
4.6.2.1 Faculty members, staff or
administrators on nine-month appointments may own or operate small businesses
during that nine-month period. Nonetheless, this business should not interfere
with the individual's primary MTU duties. (Also see section 4.6.3).
4.6.2.2 Faculty members, staff or
administrators on twelve-month appointments may own or operate a small business
on a limited basis only, because of the demands placed on their time by MTU.
(Also see section 4.6.3).
4.6.2.3 Any ownership or operation of a
small business, which overlaps with or takes place in the context of potential
Category IV activity (e.g., financial interests above the Category IV threshold
of $10,000 annually), will be reviewed by the Coordinator to determine if the
activity should be considered Category IV and follow the procedures thereto
(see section 5).
4.6.2.4
A full-time member may not engage in Category III activities in excess of the
equivalent of one day per week during the regular academic year, up to a
maximum of 36 days. Should the member be required to be absent from work or to
miss meeting regularly scheduled classes in order to engage in the Category III
activity, the member’s supervisor must approve the absence in advance.
4.6.2.5 Members may not divert work from
MTU that would normally be funded through sponsored
research into their own Category III small business for the purpose of avoiding
payment of MTU overhead or to reduce third party costs.
4.6.2.6 Members may not compete with
professional or instructional
services offered by MTU.
4.6.2.7 Members may not accept business
contracts that could be perceived as conveying competitive advantage to third
parties due to the member's employment at MTU.
4.6.2.8 Members must not accept business
contracts that expose the individual or MTU to actual or apparent conflicts
arising from multiple concurrent financial, advisory, or occupational programs.
4.6.2.9
Faculty and staff members with financial relationships outside of MTU who can
apply for sponsored funding should not allow their small business to interfere
with their pursuit of sponsored funding for MTU. In situations where MTU and
the outside entity can apply for the same funding, MTU has first priority in
making application and the member may not cause the outside entity to compete
with MTU funding applications. Members must first discuss such ideas or
proposals with their supervisors in such situations. The investigator must
recognize that he or she owes appropriate time and effort to MTU's search for
sponsored projects.
4.6.3 Disclosure and Review
4.6.3.1 Before engaging in Category III
business ownership or operation, members must fully disclose proposed activity
in writing to their immediate supervisors. Supervisors may require that the
member submit to special oversight or management procedures or to cease such
activities, if they determine that such activities constitute a Conflict of
Interest or are otherwise detrimental to the college's school's, department's,
or individual's primary duties, especially if the business places excessive or
disproportionate demands (e.g., see section 4.1.2.3) on the time, energy, or
intellectual effort of the individual involved. Members may appeal their
supervisor's decision to the Coordinator.
4.6.3.2 Supervisors may permit faculty,
researchers or staff members to adopt a limited flexible work schedule so that
some business activities may be performed during what would otherwise be normal
working hours during the period required to accomplish the service or activity.
4.7 Use of
University Resources
4.7.1
Definition
4.7.1.1 Category III activities include
the use of MTU resources in connection with any work
undertaken by members for outside activities.
4.7.2
Category III Use Guidelines
4.7.2.1
Correspondence and reports related to outside activities must not be written on
MTU stationery, nor shall such correspondence or reports identify the member as
representing MTU.
4.7.2.2 Members
should abide by MTU policies, such as the MTU Computer Use Policy and
University Web Policy, that govern use of MTU resources.
4.7.2.3
Members engaged in outside activities involving more than minimal use of MTU
equipment or resources as determined by the supervisor, department chair or
dean, must make special arrangements to schedule the use of those resources.
Members must reimburse MTU for any MTU resources, including small-scale office
or laboratory equipment, used during the provision of work for outside entities
for which they receive direct compensation. If actual costs cannot be
determined or a use fee negotiated, the cost of using MTU facilities will be
deemed to be fifteen percent (15%) of any gross revenues (such as a consulting
fee) received by the member in connection with the provision of services during
which the member used MTU facilities.
4.7.3
Disclosure and Review
4.7.3.1
Before engaging in the use of MTU resources in connection with any work
undertaken for outside sponsors, members must fully disclose in writing to
their immediate supervisors the extent to which the proposed activity will
utilize MTU resources. Supervisors may require that the member
submit to special oversight or management procedures or cease such activities,
if they determine that such activities constitute a Conflict of Interest or are
otherwise detrimental to the college's, school's, department's, or individual's
primary duties. Members may appeal
their supervisor's decision to the Coordinator.
4.8 Supervision of Relatives
4.8.1
Guidelines
4.8.1.1 This
procedure is intended to prevent members from being accused of unfairly or
inappropriately advancing the interests of a family member or relative. This
policy also applies to principal and cooperating investigators conducting
sponsored research or other programs. Primary responsibility for avoiding
situations that create the appearance of conflict of interest falls on the
member or investigator.
4.8.1.2
Under no circumstances may members initiate or participate in MTU decisions
involving a direct monetary or non-monetary benefit to a relative as defined in
Board of Control Policy 3.8 (spouses, brothers, sisters, sons, daughters, and
parents) or person with whom member has close personal relationship including,
without limitation, decisions related to initial appointment, retention,
promotion, salary determination, travel, leave of absence, stock shares or
profits, stock options, and initial public offerings.
4.8.1.3
Members should exercise caution in their involvement with MTU decisions that
benefit relatives or a person with whom the member has a close personal
relationship.
4.8.1.4
Members who serve as principal and cooperating
investigators of proposals or participate in programs funded by outside
agencies and conducted through MTU must at all times abide by MTU policies and
procedures regarding hiring and supervision of relatives and related rules
regarding procurement during the life of the grant or contract.
4.8.2
Disclosure and Review
4.8.2.1
If any member serves in a supervisory role to a relative, then such member must
fully disclose that relationship to his or her immediate supervisor.
Supervisors may require the member to submit to special oversight or management
procedures or require alternative supervisory responsibility for the relative.
Members may appeal the supervisor's decision to the Coordinator. Members have
the primary responsibility for avoiding this type of conflict of interest, and
should excuse themselves from any situation that might create even the
appearance of nepotism. When in doubt, members should step aside from potential
conflicts of interest and seek advice from higher administrators, who may
appoint alternate supervisors for such cases.
4.8.2.2
Principal investigators and cooperating investigators of proposals must fully
disclose in writing to their immediate supervisor and to the Coordinator their
intent to hire relatives or include relatives as investigators on the proposal
at the time they submit grant and contract proposals to MTU for approval and
justify such a decision. The Coordinator will work with the investigator(s) to
propose remedies or mechanisms for ameliorating, mitigating, or eliminating the
Conflict of Interest, including requiring the member to submit to special
oversight or management procedures or requiring alternative supervisory
responsibility for the relative, or the Coordinator will disapprove the
proposed activity. These remedies or mechanisms need not be finalized before
submission of the proposal, but must be finalized to the satisfaction of the
Coordinator before funds may be expended by any investigator to hire the
relative. Members may appeal the
Coordinator’s decision to the Committee.
5 Category IV: Complex External Relationships,
Including Outside Business Activities and Entrepreneurial Projects
5.0 Background
Certain external relationships entered into by
members, by their very nature, pose complicated Conflict of Interest problems.
For example, MTU, like most state universities, is expected to contribute to
the state's economic development by encouraging the movement of new ideas,
processes, and technologies developed by members into the marketplace. On
occasion, members have sought to turn ideas into marketable products, jobs, and
profits. Adherence to the disclosure and review
provisions of this policy will help avoid improper preferential treatment to
individual business enterprises that involve members. It will also help to
delineate more clearly where activities that are part of a member’s MTU
responsibilities end, and where outside activities begin, when MTU employees
have private business interests related to their professional university
responsibilities. The possibility of financially benefiting outside
entities, as well as one's self, further clouds the issue. Finally, it is also
possible for research efforts by members who are connected to outside business
interests to take unfair advantage of the university's resources, since these resources
are not available to potential competitors.
5.1 Definitions
5.1.1 A member is normally deemed to be
engaging in Category IV activities when that member has a significant financial
interest of $10,000 or more per year in any outside activity related to their
MTU responsibilities. However, Category IV activities defined below in
5.1.1.4-5.1.1.7 require disclosure even if the financial interest has not yet
reached the $10,000 threshold. Category IV activities include, but are not
limited to:
5.1.1.1 participation in testing, trials,
research, evaluation, or development of a technology, machinery, process,
product, hardware or software owned or controlled by a business in which the
member, a relative, or an associated entity (trust or any other enterprise over
which the individual exercises a controlling interest) has a consulting
relationship, sits on a board of directors, holds stock or stock options or
similar ownership interest, or has any other financial interest;
5.1.1.2 assignment of students, postdoctoral
fellows, or other trainees to projects supported by a business (either as
sponsored research or as a gift) in which the member, a relative, or an
associated entity (trust or any other enterprise over which the individual
exercises a controlling interest) has a financial interest other than royalties
under MTU policies;
5.1.1.3 participation in, or taking
administrative action on, MTU-supervised activities via
grants and contracts, purchase orders, lease arrangement, rentals, and/or
donations from a business in which the member, a relative, or an associated
entity (trust or any other enterprise over which the individual exercises a
controlling interest) has a consulting relationship, holds stock or similar
ownership interest, has any other financial interest (other than royalties
under MTU policies), or serves on the board of directors or advisory board;
5.1.1.4 assumption of an executive position in a business engaged in
commercial or research activities related to his/her MTU responsibilities;
5.1.1.5 holding of
a financial interest in a business related to the member's MTU responsibilities
that competes or has the potential to compete with services, products, or bids
for sponsored research by MTU;
5.1.1.6 taking any
action on behalf of MTU that is beneficial to a business in which the
member, a relative, or an associated entity has a financial interest.
5.2 Category IV Guidelines
5.2.1 Early efforts to establish a
business to commercialize the results of an
individual's MTU research may require some latitude in these areas. Members
interested in beginning entrepreneurial activities based on developments that
have occurred during their employment at MTU should consult the Office of
Intellectual Property and Technology Commercialization to determine if a
license is necessary (see 4.3.1.2) Once an enterprise has been established by a
member or involving a member, he or she must clarify the relationship between
MTU and the business with which he or she has financial interests. In
particular, the member’s role in the business and the relationship between the
member’s MTU and business activities must be disclosed to the Coordinator. In addition, if students are involved in
this activity, members must fully disclose to the students the relationship
between MTU and the business.
5.2.2 Members engaging in Category IV
activities must abide by the Category III guidelines for use of university
resources (see 4.7 above) and supervision of relatives (see 4.8 above).
5.3 Category IV Disclosure and Review
5.3.1 Members who engage in any
Category IV activity including research and consulting, must submit timely,
complete and accurate Disclosure Forms to their
immediate supervisor and the Coordinator in advance of pursuing that activity.
Filing these forms with the Coordinator will begin the process of seeking
permission to engage in Category IV activities. All new Category IV activities
must be reviewed and approved by the Committee. The supervisor, Coordinator and
the Committee will keep this information as confidential as possible.
5.3.2 After reviewing the Disclosure
Forms the Coordinator may require the member to submit to special oversight or
management procedures or to cease such Category IV activity altogether. Members
may appeal the Coordinator's decision to the Committee.
5.3.3 All members with a Category IV
Conflict of Interest must submit an annual report to the Coordinator with an
update of all his or her Category IV activities over the previous 12 months.
This report will normally be submitted in April, and the Coordinator will
review this report within two weeks.
6 Category V: Other Activities and Conflicts
6.1 Purchasing
Purchasing is an area where concerns about Conflict
of Interest traditionally have focused, given the opportunities that exist for
an employee to benefit inappropriately from official activities. MTU's
purchasing procedures are designed to protect MTU employees from the appearance
of taking unfair advantages or making inappropriate gains through their control
of University purchases. The procedures also protect MTU and insure that
individuals responsible for purchases are not in a Conflict of Interest and
abusing their position.
6.1.1 Guidelines
6.1.1.1 MTU's purchasing policy seeks to
use disclosure mechanisms to insure that the marketplace, not personal
financial gain, guides purchasing decisions.
6.1.1.2 All members authorized to and
engaged in purchasing on behalf of MTU in any capacity must:
6.1.1.2.A Give first consideration to the
objectives, policies and procedures of MTU.
6.1.1.2.B Strive to obtain the maximum
ultimate value of each dollar of expenditure.
6.1.1.2.C Cooperate with trade and
industrial associations in the promotion and development
of sound business methods.
6.1.1.2.D Demand honesty in sales
representation whether offered through the medium of an oral or written
statement, an advertisement, or a sample of a product.
6.1.1.2.E Decline personal gifts,
gratuities, goods, services, and trips, which might in any way influence the
purchase of materials.
6.1.1.2.F Grant all competitive bidders
equal consideration, to regard each transaction on its own merits, to foster
and promote fair ethical and legal trade practices.
6.1.1.2.G Accord a prompt and
courteous reception insofar as conditions permit to all who call on legitimate business
missions.
6.1.1.2.H Counsel and cooperate with
National Association of Educational Buyers members and to promote a spirit of
unity among them.
6.1.1.3 Purchases may be made from firms
in which a member or a relative has a financial interest only upon prior,
written disclosure to the Coordinator and written approval by the member's
immediate supervisor.
6.1.2 Disclosure and Review
6.1.2.1 Members authorized to and
responsible for purchasing equipment or services for MTU must fully disclose in
writing any financial relationships with potential vendors to the Coordinator
upon each purchase requisition. A member must disclose any level of ownership
in, or control of, a company with which such member intends to do business
using MTU funds, equipment, expertise, or influence, for any level of financial
relationship.
6.1.2.2 Members authorized to and responsible
for purchasing supplies or services
under research grants or sponsored projects also must comply with the
guidelines and standards specified in the individual contracts, as well as with
all MTU policies and procedures. If there is a conflict between the different
applicable policies and procedures, the member must resolve the conflict with
the advice of the Coordinator.
6.1.2.3 Members who exercise a
significant measure of control over purchases because of their positions
(buyers, department chairs, MTU officers) or because they must approve certain
purchases (deans, upper-level administrators, Board of Control members, etc.)
must file financial disclosure forms with the Coordinator if
there is a Conflict of Interest.
6.1.2.4 After reviewing submitted
Disclosure Forms, the Coordinator may require the member to submit to special
oversight or management procedures or to reverse the purchasing decision
altogether. Members may appeal the Coordinator's decision to the Committee.
6.2 Business Referrals (see end note 1)
6.2.1 Guidelines
6.2.1.1 Except within the context of
consulting activities that conform to MTU's policies on consulting (see
sections 3.1.1 and 4.1 and 4.2), a member, while acting in the context of his
or her MTU duties, may not make professional referrals to a business or outside
entity in which he/she, a relative, or an associated entity has a financial
interest.
6.2.1.2 To obtain advice untainted by
potential or perceived Conflicts of Interest, MTU employees must apply the
principle of separation of functions when retaining consultants or purchasing
products. In this context, the term "function" pertains to advising
versus performance of tasks.
6.2.1.3 MTU must normally disqualify a
consultant who serves as an uncompensated adviser to MTU from receiving
compensation for providing services to MTU. MTU normally must not accept advice
from a consultant that refers MTU to an enterprise in which the consultant has
a financial interest.
6.2.2 Disclosure and Review
6.2.2.1 A member may make exceptions to
these procedures in cases where MTU clearly benefits from not separating advice
and service into separate functions. Any exception to these section 6.2
guidelines must be approved in advance by the Coordinator and the member's
immediate supervisor.
6.3 Business Relationships with Subordinates
When a supervisor enters into a business relationship
with a subordinate not involving sponsored research, a conflict could arise
concerning potential or perceived coercion. Most business or consulting
relationships are routine, acceptable and should be encouraged. Some types of
contractual, business relationships are more serious and need more detailed
disclosure, and may be prohibited. An example of a relationship that may be
prohibited, and that must be disclosed and reviewed by the Coordinator, is a
partnership that makes the student (or subordinate) a co-owner or officer of a
business, where the differential in power puts the student (or subordinate) in
an unfair bargaining position and compromises the advisor's (or supervisor's)
primary responsibility to MTU. Such a business relationship is especially
problematic if it involves undergraduate students.
6.3.1 Guidelines
6.3.1.1 Members may occasionally hire
students or subordinates to do work for them unrelated to the member's MTU
responsibilities (e.g., yard work) or in a business setting (e.g., the hiring
of students to do survey work or testing as part of a consulting project).
These activities are reasonable as long as there is no coercion involved and
fair and reasonable compensation is provided.
6.3.1.2 In rare cases, members may enter
into contractual or business relationships involving substantial actual or
potential financial interests with students that they supervise provided that
members sever their MTU supervisory relationship with the student prior to
negotiating the contract or business relationship. This supervisory
relationship may be maintained, however, at the request of the member and the
student, and with the prior approval of the member's chair, dean, or director
and the Coordinator.
6.3.2 Disclosure and Review
6.3.2.1 Under cases described in section
6.3.1.1, members must notify their immediate supervisor prior to hiring
subordinates or students whom they advise or from their courses. The immediate
supervisor may require the member to submit to special oversight or management
procedures or to reverse the contemplated hiring altogether. Members may appeal
the supervisor's decision to the Coordinator.
6.3.2.2 Under cases described in section
6.3.1.2, members must notify their immediate supervisor and the Coordinator.
The immediate supervisor and/or Coordinator may require the member to submit to
special oversight or management procedures or to eliminate the contemplated
relationship altogether. Members may appeal the supervisor's and/or
Coordinator's decision to the Committee. To avoid doubt, in such circumstances
the immediate supervisor and/or Coordinator will normally require that a
faculty member be replaced as the student's advisor. The involved student has a
right to discuss issues related to activities described in this section with
the faculty member's immediate supervisor and/or the Coordinator prior to the
imposition of any conditions upon the faculty member.
7 Review and Enforcement
7.1 Supervisors
7.1.1 Supervisors have substantial responsibility to work with
faculty and staff in their departments to resolve Conflicts of Interest. They
should seek the advice of the Coordinator as necessary.
7.1.2 Supervisors must submit to the Coordinator an annual
report of conflicts of interest that they have resolved in their
department. This will assist the
Coordinator in preparing the Coordinator’s annual report to the Provost and
Board of Control.
7.2 MTU Conflict of Interest Coordinator
The Provost and Senior Vice President for Academic
and Student Affairs must designate a Coordinator with an academic background
and a familiarity with the academic and research process. The Coordinator's
primary responsibility will be to review submitted Disclosure Forms and in
cases of Category III, IV or V activities to determine appropriate mitigation
procedures whenever possible. The Coordinator will have the authority to
certify that MTU is in compliance with the Conflict of Interest guidelines or
regulations of external funding agencies as well as those of MTU and the State
of Michigan. The Coordinator will work with members to identify means of
minimizing or eliminating potential Conflicts of Interest. The Coordinator also
will have the authority to contact funding agencies in the event that Conflicts
of Interest cannot be resolved under these procedures. The Coordinator
will confer with Research and Sponsored Programs before releasing any
confidential information.
The Coordinator will develop procedures to hear
appeals of decisions made by supervisors and will retain records connected to
Coordinator-level Conflict of Interest reviews for three years after each
project is completed. The Coordinator will request and must receive from
supervisors an annual report that summarizes Conflicts of Interest disclosed to
supervisors, and must prepare annual reports for the Provost and Board of
Control that includes a summary of Conflict of Interest activities during the
previous year.
The Coordinator will serve as a resource for members
seeking to gain more information about Conflicts of Interest, how to avoid
them, and how to mitigate and resolve conflicts that occur. The Coordinator
will assist in the completion of Disclosure Forms by members in a fashion
analogous to MTU research staff who help prepare budgets and financial
statements for sponsored research proposals to outside agencies. The
Coordinator will play the role of facilitator and educator on the subject of
Conflict of Interest at MTU and will work with members in seeking resolutions
to Conflicts of Interest. Finally, members who have concerns about Conflicts of
Interest involving other members may contact the Coordinator about their
concerns. The identity of the member raising such concerns will normally be
kept confidential. The Coordinator must contact immediate supervisors so that
Conflicts of Interest may be examined pursuant to these procedures.
7.3 MTU
Conflict of Interest Committee
7.3.1
The Committee will review all activities that fall under Category IV, as well
as research proposals seeking external funding that contain Conflicts of
Interest that cannot be resolved by the Coordinator, in a timely manner. The
Committee is a permanent committee elected by the University Senate, consisting
of three members from the Senate constituency (faculty and staff), with
staggered terms, in addition to the Coordinator as an ex officio
member. It is anticipated that relatively few cases will require such a review.
But for these reviews, the Committee may add, on a case-by-case basis,
additional members as necessary. These additional members will be appointed by
the President of the University Senate and the MTU administration based on
their knowledge of the applicable field of expertise as well as knowledge of
Conflict of Interest and intellectual property issues.
7.3.2 The
charge to this Committee includes the following, without limitation:
7.3.3 If the
Committee, in considering cases of the last two types, finds that a significant
Conflict of Interest exists, it will recommend to the Provost and Senior Vice
President for Academic and Student Affairs that a member take actions to
ameliorate or alleviate the Conflict of Interest. These actions may include,
without limitation:
This list is not exclusive and there may be other
possible actions adopted to ameliorate or alleviate the Conflict of Interest.
7.3.4
In instances where a satisfactory resolution of Conflicts of Interest still
cannot be achieved through this procedure, the Coordinator will contact relevant
funding agencies to inform them of the circumstances surrounding such cases.
The Coordinator will notify Research and Sponsored Programs before contacting
these agencies. This step must
be taken only at the conclusion of MTU's internal review process. In the
interest of maintaining confidentiality, principal investigators and other
members must not contact sponsors about such cases until after the Coordinator
has done so.
7.4 Violations of MTU Conflict of
Interest Procedures
7.4.1
All members, at the time they begin their connection with MTU, shall be given
copies of these procedures. MTU may provide continuing education about these
procedures but it is the responsibility of each member to know their
obligations.
7.4.2 MTU's
Conflict of Interest procedures place significant trust and responsibility upon
individual members, who are expected to make full and open disclosure of
Conflicts of Interest. Violation of this trust is an especially serious failure
of professional conduct. MTU has the authority to take action against
individuals who violate these procedures, up to and including discharge. MTU
approval to undertake particular projects, including sponsored research,
consulting, and outside professional activities that create Conflicts of
Interest may be withdrawn immediately in cases where individual members fail to
fully disclose or otherwise misrepresent significant financial interests.
Similarly, failure to cooperate with MTU officials responsible for reviews of
Conflict of Interest disclosure will prevent MTU approval and sending of
outside research and project proposals to potential sponsors.
7.4.3
When a violation of MTU policy is alleged (see section 7.2.3), a thorough and
timely process shall take place within MTU to provide adequate opportunity for
the Committee to reach valid conclusions. It is imperative that the procedures
described in this document be followed and protection be afforded to the rights
and reputation of both accuser and accused, those investigating the
allegations, any sponsoring agency, and MTU. All parties shall be responsible
for maintaining the confidentiality of the Committee proceedings and of all
evidence developed in the proceedings to the extent allowed by law. All
proceedings shall be in accordance with applicable rules and obligations of
MTU. Only substantiated findings of violation of these procedures, as
determined by either the Provost and Senior Vice President for Academic and
Student Affairs or the MTU President, will be part of the personnel record.
7.4.4
Allegations of violations of these procedures shall be directed to the
Coordinator. If the activities fall under Categories I or II, the
Coordinator shall refer the matter to the individual's immediate supervisor so
that Conflicts of Interest may be examined in the normal fashion. The same
shall apply to activities under Category III, with the exception of sponsored
research activities. If the allegations allege violations of policy involving
sponsored research activities, or about Category IV and V activities, the
Coordinator shall notify the individual so accused, and gather basic
information. The Coordinator will then present this material to the Committee
within fourteen (14) working days. The accused shall have opportunity to
respond and present information to the Committee. All evidence produced by the
member shall be reviewed and secured by the Committee. The Committee shall
determine whether grounds for an investigation of a violation exist, or whether
the accusations are without merit. The Committee shall notify the accused and
the Provost and Senior Vice President for Academic and Student Affairs of its
finding.
7.4.5
If the Committee determines that grounds for an investigation exist, the
Provost and Senior Vice President for Academic and Student Affairs may accept
or reject that finding. If accepted, an additional three-person investigating
Committee shall be designated to investigate the allegations. These individuals
shall be impartial members with sufficient expertise and dedication to conduct
a thorough and equitable investigation. These members will generally not be
from the same academic unit as the accused. Appointments will be made to this
committee by agreement of the University Senate President and the MTU
President. Strict attention shall be paid to any factors that might compromise
their ability to impartially examine the allegations by those members asked to
serve.
7.4.6
Private and separate sessions shall be conducted by the investigating Committee
to hear the accuser(s), the accused, and others as determined necessary by the
Committee. Sessions to obtain testimony may be conducted either in person or by
electronic means such as telephone conference calls. The accused shall be
informed of the accusations in writing from the investigating Committee and be
given the opportunity to respond and present evidence on his/her behalf during
the inquiry. All evidence that is produced shall be reviewed and secured.
Necessary administrative support (e.g., clerical, gathering information,
witnesses, and record keeping) will be provided by the Provost and Senior Vice
President for Academic and Student Affairs.
7.4.7
The investigating Committee shall submit a written report of its findings,
conclusions, and recommendations, together with pertinent documentation and
evidence, to the Provost and Senior Vice President for Academic and Student
Affairs, the accused, the Coordinator, and the Committee within thirty (30)
working days after its formation, unless the time limit is extended by the
Provost and Senior Vice President for Academic and Student Affairs following a
written request and explanation from the Committee. If the investigating
committee finds that the procedures have been violated, it shall recommend
sanctions (see also section 7.2.3) to reflect the seriousness of the violation.
Distinctions shall be made between neglect, honest oversights, or ignorance of
procedures on the one hand, and willful violations on the other hand,
especially deliberate failures to fully disclose relationships that create Conflicts
of Interest. Sanctions may include but are not limited to sending a letter of
reprimand, setting special conditions on outside professional activities,
research or consulting efforts, or external entrepreneurial activities,
requiring special certification or assurances of compliance, disbarment from
the opportunity to conduct externally funded research with selected funding
agencies for fixed periods of time, or termination of employment. Any
termination shall occur in a manner consistent with existing applicable MTU
policies on employment practices and academic tenure. MTU may impose
limitations or special reviews on the outside professional and entrepreneurial
activities of affected individuals.
7.4.8
The Provost and Senior Vice President for Academic and Student Affairs shall
receive the investigating Committee's report and shall respond within fourteen
(14) working days, accepting, modifying, or rejecting its findings. The Provost
and Senior Vice President for Academic and Student Affairs shall submit his/her
decision in writing to the accused, the investigating committee and the
Committee, the Coordinator, the appropriate dean or unit director, and the MTU
President. Individuals have a right to appeal decisions to the MTU President,
making such an appeal within fourteen (14) working days. The President shall
appoint an appeals committee of at least three impartial members, at least two
of whom were not members of previous committees hearing this appeal, and who
are not party to the conflict. The committee shall report its findings and
recommendations to the President within twenty-one (21) working days of being
convened. The President's decision shall be submitted to the accused, all three
committees, the Coordinator, the appropriate dean or unit director, and the
Provost and Senior Vice President for Academic and Student Affairs.
7.4.9 The
Coordinator shall maintain evidence, reports, and recordings involving the
allegations, inquiry, and investigation for five years after the submission of
the final report. Where required by the rules and procedures of sponsoring and
granting agencies, the Coordinator shall inform them of the final decisions and
provide reports of investigations.
ENDNOTES
Proposed Amendment to Proposal 2-03
Draft of 20 February 2003