House of Delegates G2 No. 363 By: Delegate Perkins (Departmental - University of Maryland System) and Delegates Boergers, Petzold, Rosapepe, Dembrow, Huff, MacKinnon, and Roesser Introduced and read first time: January 17 1990
Assigned to: Constitutional and Administrative Law
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 9 1990
CHAPTER______
1 AN ACT concerning 2 Ethics Law - Public Institutions of Higher Education - Faculty Conflict of Interest 3 Policies. 4 FOR the purpose of requiring the governing boards and certain public senior 5 institutions of higher education to develop conflict of interest policies and 6 institutional procedures: allowing faculty to have certain affiliations and to retain 7 certain interests in entities under certain conditions: requiring certain disclosure 8 and approvals; requiring certain governing boards of certain higher education 9 institutions to submit a certain annual report to the Legislative Policy Committee 10 of the General Assembly: and generally relating to State ethics, sponsored 11 research and development programs at public institutions of higher education. 12 BY adding to 13 Article 40A - Maryland Public Ethics Law 14 Section 3-109 15 Annotated Code of Maryland 16 (1986 Replacement Volume and 1989 Supplement 17 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF 18 MARYLAND, THE Laws of Maryland read as follows: 19 Article 40A - Maryland Public Ethics Law 20 3- 109 21 (A) (1) IN THIS SECTION THE FOLLOWING WOffice of Research and DevelopmentS HAVE THE 22 MEANINGS INDICATED. 23 (2) "FACULTY CONFLICT OF INTERESTS POLICES" MEANS EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. HOUSE BILL No. 363 1 POLICES ADOPTED BY THE GOVERNING BOARDS OF THE PUBLIC 2 SENIOR HIGHER EDUCATION INSTITUTIONS THAT ARE APPROVED BY 3 THE OFFICE OF THE ATTORNEY GENERAL AND APPROVED AS TO 4 CONFORMITY WITH THIS SECTION BY THE STATE ETHICS COMMISSION. 5 (3) "SPONSORED RESEARCH OR DEVELOPMENT" MEANS AN 6 AGREEMENT TO ENGAGE IN BASIC OR APPLIED RESEARCH OR 7 DEVELOPMENT AT A PUBLIC SENIOR HIGHER EDUCATION INSTITUTION, 8 AND INCLUDES TRANSFERRING UNIVERSITY-OWNED TECHNOLOGY OR 9 PROVIDING SERVICES BY A FACULTY MEMBER TO ENTITIES ENGAGED 10 IN SPONSORED RESEARCH OR DEVELOPMENT. 11 (4) "PUBLIC SENIOR HIGHER EDUCATION INSTITUTION" HAS 12 THE MEANING DEFINED IN SUBTITLE I OF TITLE 10 OF TB EDUCATION 13 ARTICLE. 14 (B) (1) PUBLIC SENIOR HIGHER EDUCATION INSTITUTIONS 15 ENGAGED IN SPONSORED RESEARCH OR DEVELOPMENT SHALL 16 DEVELOP FACULTY CONFLICT OF INTEREST PROCEDURES BASED ON 17 GOVERNING BOARD CONFLICT OF INTEREST POLICES AND TEE 18 PURPOSES OF THIS ARTICLE EXPRESSED IN SECTION 1-102. THE 19 PROCEDURES SHALL BE APPROVED BY THE OFFICE OF TB ATTORNEY 20 GENERAL, AND APPROVED AS TO CONFORMITY WITH THIS SECTION 21 BY THE STATE ETHICS COMMISSION. 22 (2) PROCEDURES SHALL INCLUDE: 23 (I) DISCLOSURE REQUIREMENTS FOR FACULTY 24 INTERESTS, SERVICE, EMPLOYMENT, GIFTS, OR OTHER RELATIONSHIPS 25 TO THE ENTITY ENGAGED IN THE SPONSORED RESEARCH OR 26 DEVELOPMENT, OR AN ENTITY HAVING A DIRECT INTEREST IN THE 27 OUTCOME OF SPONSORED RESEARCH OR DEVELOPMENT, WHICH 28 WOULD REQUIRE DISCLOSURE IF THE PERSON WERE TO FILE 29 DISCLOSURE UNDER TITLE 4 OF THIS ARTICLE; 30 (II) OTHER RESTRICTIONS TO PREVENT A SUBSTANTIAL 31 CONFLICT WITH A FACULTY MEMBER'S DUTIES TO THE INSTITUTION 32 OF HIGHER EDUCATION, WHILE ENCOURAGING COMMERCIALIZATION OF 33 UNIVERSITY-OWNED TECHNOLOGY; AND 34 (III) GUIDELINES TO [INSURE THAT ACTIVITIES 35 CONDUCTED UNDER SPONSORED RESEARCH OR DEVELOPMENT DO NOT 36 IMPROPERLY GIVE ADVANTAGE TO ENTITIES BECAUSE OF THEIR 37 AFFILIATION OR INVOLVEMENT WITH A FACULTY MEMBER. 38 (C) (1) EXCEPT FOR §§ 3-103(C), 3-104, AND 3-106, TITLE 3 OF THIS 39 ARTICLE DOES NOT BAR A FACULTY MEMBER AT A PUBLIC SENIOR 40 HIGHER EDUCATION INSTITUTION FROM HAVING AN INTEREST IN OR 41 SERVING AS AN EMPLOYEE, DIRECTOR, OR OFFICER OF AN ENTITY 42 ENGAGED IN SPONSORED RESEARCH OR DEVELOPMENT, OR AN ENTITY HOUSE BILL No. 363 1 HAVING A DIRECT INTEREST IN THE OUTCOME OF SPONSORED 2 RESEARCH, IF: 3 (1) ANY INTEREST, SERVICE, EMPLOYMENT, OR OTHER 4 RELATIONSHIP TO THE ENTITY IS PUBLICLY DISCLOSED ON A FORM 5 APPROVED BY THE STATE ETHICS COMMISSION. THE FORM SHALL BE 6 FILED WITH THE COMMISSION AND A COPY MAINTAINED AS A PUBLIC 7 RECOffice of Research and Development AT THE EDUCATIONAL INSTITUTION AND 8 (II) THE INTEREST, SERVICE, EMPLOYMENT OR OTHER 9 RELATIONSHIP TO THE ENTITY IS APPROVED BY THE PRESIDENT OF THE 10 EDUCATIONAL INSTITUTION IN ACCOffice of Research and DevelopmentANCE WITH ITS THE 11 INSTITUTION'S FACULTY CONFLICT OF INTEREST PROCEDURE AND 12 GOVERNING BOARD POLICY, NO INTEREST, SERVICE, EMPLOYMENT, 13 BENEFIT OR OTHER RELATIONSHIP SHALL BE APPROVED IF THE 14 FACULTY MEMBER HAS SUBSTANTIAL AGENCY POLICY OR 15 MANAGEMENT RESPONSIBILITY FOR THE SPONSORED RESEARCH OR 16 DEVELOPMENT. 17 (2) IF THE PROVISIONS OF SUBSECTION (C)(1)(I) AND (11) OF 18 THIS SECTION ARE NOT MET, THE FACULTY MEMBER IS NOT EXEMPT 19 FROM ANY OF THE PROVISIONS OF TITLE 3 OF THIS ARTICLE F. THE 20 EXEMPTIONS PROVIDED UNDER THIS SECTION APPLY ONLY TO 21 FACULTY ACTIVITIES RELATED TO SPONSORED RESEARCH OR 22 DEVELOPMENT AND NOT TO OTHER ACTIVITY BY THE FACULTY 23 MEMBER THAT MAY CONSTITUTE A CONFLICT OF INTEREST BUT IS NOT 24 RELATED TO THE SPONSORED RESEARCH OR DEVELOPMENT. 25 SECTION 2. AND BE IT FURTHER ENACTED. That by June 30. 1991. and by 26 June 30 each year thereafter. the governing boards of the public senior higher education 27 institutions shall prepare and submit a report to the Legislative Policy Committee of the 28 General Assembly of the approvals granted under the provisions of this Act during the 29 previous year by the institutions they govern 30 SECTION 2.3 AND BE IT FURTHER ENACTED, That this Act shall take 31 effect July 1,1990. Approved: Governor. Speaker of the House of Delegates. President of the Senate.
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