Policies

Procedures for Compliance with Section 2.1-639.6.C.7 of the Virginia State and Local Government Conflict of Interest Act

I. Purpose

These guidelines are designed to provide a framework within which the propriety and advisability of a proposed contract for research and development can be addressed. The guidelines apply to all employees of Virginia Commonwealth University.

back to top

II. Virginia Law

Under the Virginia State and Local Government Conflict of Interest Act a prohibited conflict of interest arises for an employee of VCU when an employee, or a member of his/her immediate family, has a personal interest in a firm or business which contracts with VCU. A personal interest generally is defined as ownership of more than 3 percent of the equity or liability of the business or receipt of income or other commercial arrangement worth more than $10,000 annually from the business, which accrues to the employee or a member of the employee's immediate family. Immediate family means (i) a spouse and (ii) any other person residing in the same household as the employee, who is a dependent of the employee or of whom the employee is a dependent. See Section 2.1-639.2 of the Code of Virginia for a complete definition.

The Act exempts from its application personal interests in certain categories of contracts. In particular and for purposes of this policy, interests in research and development contracts are exempted provided the disclosure and approval requirements of the law are followed. Research and development contracts covered by these guidelines include research agreements approved through the Office of Sponsored Programs and intellectual property licensing agreements with the University or an affiliated corporation.

back to top

III. Procedure

An employee's personal interest in a contract for research and development between VCU and a business in which the employee or a member of his/her immediate family has a personal interest may be permissible if (1) the personal interest has been disclosed to, and the contract for research and development has been approved in writing by the vice provost for research and graduate affairs before the contract is entered into between the University and the business in which the employee has a personal interest; (2) a disclosure statement is filed with the vice provost for research and the secretary of the Commonwealth of Virginia in the form required by Section 2.1-639.12-15 of the Code of Virginia; and (3) the employee thereafter files the aforementioned disclosure statement annually on or before January 15 of each year for the duration of the contract.

back to top

IV. Disclosure and Approval Process

Prior to the signing of a proposed research and development contract by the appropriate VCU official, an employee shall fully disclose in writing the specific nature of the employee's personal interest in a sponsor's business. The disclosure shall be in the form of a letter or memorandum attached to the Disclosure of Interest Certification accompanying the research proposal which outlines the employee's personal interest and the benefits to be gained by the University from the proposed research and development contract. All employees with a personal interest in the proposed contract must disclose that personal interest. It is the responsibility of the principal investigator to inform all employees who will be involved in the contract of the disclosure requirements.

If the department chairperson is satisfied that the proposed research and development contract will contribute to or enhance the University's research and educational programs and will not affect adversely the performance of the employee, approval shall be acknowledged by endorsing the internal approval coversheet. Should the vice provost for research and graduate affairs determine that the proposed research and development contract in which an employee may have a personal interest does not affect adversely the interests of the University, approval shall be acknowledged by endorsing the Disclosure of Interest Certification.

Institutional approval of an original contract shall not be deemed approval of subsequent changes during the life of the contract unless such changes are also submitted for approval.

Should the vice provost for research and graduate affairs determine that the research and development contract in which an employee has a personal interest has not contributed to the University's scholarly and educational missions, or has affected adversely either the performance of the employee or the interests of the University, he/she may initiate corrective action.

If the research and development contract and personal interest disclosure statement are approved, the employee will be informed in writing by the director of the Office of Sponsored Programs of the employee's obligation to file immediately all applicable forms identified in the Statement of Economic Interests, the disclosure statement required by Section 2.1-639.12-15 of the Code of Virginia. The completed forms will be returned to and held by the Office of Sponsored Programs, in confidence, until disposition of the contract is known. If a contract is signed by the appropriate VCU official, the director of the Office of Sponsored Programs will send the completed forms to the assistant vice president for human resources for forwarding to the secretary of the commonwealth. If a contract is not signed by the appropriate VCU official, the completed forms will be returned to the employee. The Statement of Economic Interests must be completed by the affected employee(s) annually thereafter on or before January 15 for the duration of the contract. The assistant vice president for human resources will be informed of the employee's need to file such an annual disclosure and will forward to the employee the necessary forms for the life of the contract. This process for filing is provided as a convenience to the university community. It remains the responsibility of the individual employee to make the written disclosure as required by law.

back to top

V. Appeal Process

If approval is denied, the employee may appeal to the Conflict of Interest Review Committee (COIRC), a standing committee of five individuals drawn from the membership of the Intellectual Properties Committee and the Research Advisory Council and appointed annually by the vice provost for research and graduate affairs on consultation with the chairs of the committee and the council. No individual shall serve on the COIRC for more than three consecutive years. The COIRC shall elect its own chair.

The COIRC will hear the appeal from the employee and the reasons for denial by the administrator. It may then call other witnesses and seek other information as deemed desirable. It shall make a recommendation to the provost. The provost will render the final decision.

back to top

VI. Impermissable Conflict of Interest

The law continues to define as an impermissible personal interest those situations in which the University currently has a signed research and development contract with a business and then an employee acquires a personal interest in the business. An employee contemplating entering into such an arrangement should seek advice from his/her attorney.

Approved by the Board of Visitors: July 16, 1992