Maryland State Public Ethics Law
(issued by the State of Maryland Legislature)

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.