Medical College of Georgia
Conflict of Interest Policy
October 1, 1995
PURPOSE
To (1) ensure the integrity and objectivity of the research and other scholarly activities of MCG employees through the disclosure and management of financial conflicts of interest and
(2) ensure compliance with state laws prohibiting certain transactions with state agencies.
As used in this policy, "Conflict of interest" means any situation in which [i] it reasonably appears that a significant financial interest could affect the design, conduct, or reporting of activities funded or proposed for funding by a sponsor, or [ii] the personal interest of an employee or his or her family may prevent or appear to prevent the employee from making an unbiased decision with respect to the employee's employment with the institution including, without limitation, situations when the employee or a member of his or her family has a significant financial interest in a business which competes or may compete with the Medical College of Georgia.
I. DISCLOSURE OF SIGNIFICANT FINANCIAL INTEREST
A. Definitions
1. "Investigator" means the principal investigator, co-investigator, and any other person (e.g., post-doctoral fellows) at MCG who is responsible for the design, conduct, or reporting of research or scholarly activities funded or proposed for funding by a sponsor.
2. "Responsible representative of the institution" means:
a. Department Chair for faculty and other departmental personnel meeting the definition of investigator;
b. Dean for Department Chair;
c. Vice-President for Academic Affairs for Deans and other Vice-Presidents; and
d. President for Vice-President for Academic Affairs.
3. "Significant financial interest" means anything of monetary value, including, but not limited to, salary or other payments for services (e.g., consulting fees or honoraria); equity interests (e.g., stocks, stock options or other ownership interest); and intellectual property rights (e.g., patents, trademarks, copyrights and royalties from such rights). The term does not include:
- salary, royalties or other remuneration from MCG;
- income from seminars, lectures, or teaching engagements sponsored by public or nonprofit entities;
- income from services on advisory committees or review panels for public or nonprofit entities; or
- an equity interest that, when aggregated for the investigator and the investigator's spouse and dependent children, meets both of the following tests: [i] does not exceed $10,000 in value as determined through reference to public prices or other reasonable measures of fair market value, and (ii) does not represent more than a 5% ownership in any single entity; or
- salary, royalties or other payments that, when aggregated for the investigator and the investigator's spouse and dependent children, are not expected to exceed $10,000 during the next twelve-month period.
B. Disclosure of Significant Financial Interest
Every investigator shall disclose any conflict of interest which arises during the course of his/her employment to the appropriate responsible representative. This disclosure shall be on MCG's "Significant Financial Interest Disclosure Form", a copy of which is attached as "Exhibit A". The Disclosure Form shall be signed by the investigator. A separate disclosure form is required for each project and for each conflict of interest. Every investigator must submit a completed and signed disclosure form to the appropriate institutional representative prior to the time any research grant, contract, or other extramural proposal is submitted for review to the Office of Grants and Contracts. Investigators must also certify that appropriate disclosures have been made and any potential conflicts of interest have been resolved. A certification is included on the standard MCG grant routing sheet and must be signed by the investigator. The disclosure shall be updated by the investigator at any time there is a change in the facts reported in the initial disclosure. If no conflict of interest existed at the time of the initial proposal but such a conflict arises during the course of the project or proposal, the investigator shall file a disclosure of conflict of interest as soon as facts creating the conflict become known to him/her.
C. Resolution of Conflicts of Interest
The responsible representative to whom a disclosure of conflict of interest is made shall review such disclosure and make a determination as to whether or not a conflict of interest exists. The Vice-President for Research may provide assistance and guidance in the resolution and management of any conflicts. A conflict of interest will exist whenever the responsible representative determines that a significant financial interest exists which could directly and significantly affect the design, conduct or reporting of the research or scholarly activities funded or proposed for funding by a potential sponsor. Should a conflict of interest exist, the responsible representative shall determine what restrictions, if any, should be imposed by MCG to manage, reduce or eliminate such conflicts of interest.
By way of illustration, the following conditions or restrictions may be imposed to manage, reduce or eliminate conflicts of interest:
a. public disclosure of significant financial interest;
b. monitoring of research by independent reviewers;
c. modification of the research plans;
d. disqualification from participation in that portion of the research that would be affected by the significant financial interest;
e. divestiture of significant financial interests by the investigator; or
f. severance of relationships that create actual or potential conflicts of interest.
In addition to the restrictions listed above, the responsible representative shall have discretion to impose any other conditions or restrictions which in their judgment would manage, reduce or eliminate any actual or potential conflict of interest and which would be consistent with applicable policies, regulations, and laws.
Should the responsible representative determine that MCG is unable to satisfactorily manage a conflict of interest, the responsible representative shall immediately notify both the investigator and the Office of Grants and Contracts. The Office of Grants and Contracts shall be responsible for notifying the sponsor of MCG's determination.
All decisions made or taken by the responsible representative shall be in writing and shall state the decision, the reasons therefor and any conditions or restrictions imposed. This written decision together with the written disclosure of conflict of interest shall be maintained for at least three years after the later of:
1. the termination or completion of the award to which they relate; or
2. the resolution of any government action involving those records.
The President of the Medical College of Georgia, either directly or through his/her designee, reserves the right to review all decisions regarding management and resolution of conflicts of interest made by a responsible representative. In the event the President determines that the responsible representative's decision is incorrect, inappropriate, or inconsistent with applicable law, the President reserves the right to rescind, modify, or reverse a decision of the responsible representative.
II. TRANSACTIONS WITH STATE AGENCIES
A. Definitions
1. "Agency" means any agency, authority, department, board, bureau, commission, committee, offices, or instrumentality of the State of Georgia but shall not mean a political subdivision of the State of Georgia.
2. "Business" means any corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, trust, or other legal entity.
3. "Employee" means any person who is employed full-time or part-time by the Medical College of Georgia.
4. "Family" means spouse and dependents.
5. "Full-time" means 30 hours of work for MCG per week for more than 26 weeks per calendar year.
6. "Part-time" means any amount of work other than full-time work.
7. "Person" means any person, corporation, partnership, proprietorship, firm, enterprise, franchise, association, organization, or other legal entity.
8. "Substantial interest" means the direct or indirect ownership of more than 25 percent of the assets or stock of any business.
9. "Transact business" or "transact any business" means to sell or lease any personal property, real property, or services on behalf of oneself or on behalf of another party as an agent, broker, dealer, or representative and means to purchase surplus real or personal property on behalf of oneself or on behalf of another party as an agent, broker, dealer, or representative.
B. Prohibited Transactions
No MCG employee shall undertake any activity which constitutes a conflict of interest except as may be expressly approved and/or managed pursuant to the provisions of this policy. Georgia law states that it shall be unlawful for any full-time employee, either for himself/herself, or on behalf of any business, or for any business in which such employee or member of his/her family has a substantial interest, to transact business with the agency which employs him/her. As defined in Georgia law, "agency" would be the Board of Regents of the University System of Georgia and, therefore, this provision would apply to employment by any institution of the University System.
Georgia law expressly allows employees of one unit of the University System to teach or work as a consultant for another unit of the University System provided all of the following conditions are met:
A. The employee in question is a chaplain, fireman, licensed physician, dentist, psychologist, registered nurse, licensed practical nurse, or holds a doctorate or masters degree from an accredited college or university;
B. The president of the University System institution wishing to utilize the services of the MCG employee has certified in writing the need for the services and sets forth why the best interests of the state would be served by obtaining the part-time services of that individual in lieu of obtaining the same services from a person not employed by the state;
C. The President of the Medical College of Georgia has certified in writing that the employee whose services are desired is available to perform such services, that the performance of such services will not detract nor have a detrimental effect on the performance of that person's employment at the Medical College of Georgia, and that the part-time employment of this person would be in the best interest of the State of Georgia.
The certifications described in paragraphs [B] and [C] shall be met by the employee completing and obtaining the necessary signatures on the "University System of Georgia Employee Consultant Agreement Between Institutions" form (See "Attachment B").
The law also provides that full-time employees of the Board of Regents may serve as members on governing bodies of private, non-profit, educational, athletic or research related foundations and associations which are organized for the purpose of supporting institutions of higher education in this state and in which in furtherance of this purpose may transact business with such institutions or with the Board of Regents of the University System of Georgia. Such foundations and associations would include, but are not limited to, MCG Research Institute, Physicians Practice Group, and MCG Foundation. (See, Official Code of Georgia Annotated, 45-10-20, et seq.).
C. Annual Reporting of Transactions with State Agencies
Georgia law requires that any employee, whether part-time or full-time, either for himself/herself, for any business or on behalf of any business in which such employee or any member of his family has a substantial interest and who transacts business with any state agency shall disclose such transaction. Such disclosure shall be submitted prior to January 31 of each year to the Secretary of State on forms provided by the Secretary of State. These forms are available from the MCG Division of Personnel and are mailed to all employees on or about the first of each calendar year. Employees who transact business with the State and fail to file the annual disclosure statement may be subject to civil penalties, including restitution, a fine of up to $10,000 and termination of employment. (See, Official Code of Georgia Annotated Section 45-10-26).
III. APPEALS
An employee who disagrees with a decision of a responsible representative or other MCG official with respect to a conflict of interest which directly involves that employee may appeal such decision as follows:
a. a decision of a department chair may be appealed to the dean;
b. a decision of a dean or vice president may be appealed to the President.
All appeals shall be in writing and shall be submitted to the official hearing the appeal within five (5) working days of the employee's notification of the decision. The decision of the President in all matters related to this policy shall be final as to the Medical College of Georgia, subject to the right to appeal to the Board of Regents in accordance with the policies of the Board of Regents (See, Section 201.08, "Policies of the Board of Regents of the University System of Georgia").
IV. PENALTIES
Any employee who violates this policy may be subject to disciplinary action up to and including dismissal. Additionally, Georgia law provides penalties for those individuals transacting business with the state in violation of state law (See Official Code of Georgia Annotated, Section 45-10-26). Such civil penalties or fines would be in addition to any disciplinary action taken by the Medical College of Georgia. |