Policies
State Ethics Act and Research
Preamble
The advice given below applies to Principal Investigators
(PIs) as well as other university or state employees who
might control or direct a research project and who must
comply with the Ethics Act. The Ethics Act is complex,
relatively new, and not fully instructed by previous case
determinations.
We have Policies and Procedures for PIs who must comply
with federal PHS Act 42 C.F.R ò 50.01 (misconduct
of research or research training) by reporting their
conflict of interest on grant proposals and subsequently
have the university manage those conflicts. The purpose
of this federal act is to protect the public from
financial misconduct or research dishonesty, and assure
timely unimpeded publication of research results by the
PI and his/her collaborators. OGRD Policies and
Procedures.
Current University procedures to manage PI conflict of
interest per federal guidelines are not sufficient to
comply with the state of Washington's 1994 Ethics in
Public Service Act, RCW 42.52. (See Washington State Executive Ethics
Board. )
This law sets forth a framework for ethical behavior by
state employees with respect to financial transactions,
receipt of gifts, outside activities, and use of state
resources for personal gain. The Executive Ethics Board
has the authority to issue statutory opinions regarding
the Ethics Act. This law does not directly impose
sanctions against state agencies that are victims of
employee infractions. Neither the University, nor the
Attorney General's Office can act on behalf of an
employee who violates the Ethics Act.
Conflict of Commitment or Allegiance
An underlying principle to the Ethics Act is that a fully
appointed university employee must provide full time
services to the university and state. A Conflict of
Commitment or Allegiance occurs if the PI simultaneously
owns or is employed by a company.
Company equity ownership, line management, day-to-day
employment, assumption of continuing role in technical or
scientific aspects, and transfer of marketable
technologies or information are discussed in the Faculty
Manual Section IV.E. Extended Professional Activities.
University approval of such activities might be granted
if ethical concerns or conflicts of interest can be
managed; if the missions of the Company and University
are shared and enhanced; if Pi's work for the Company is
totally dissociated from PI's work for the University, if
no students are involved; if the employment is short term
or less than 20% of PI's time; and/or if the PI is not
fully employed by the University.
Outside employment or ownership cannot interfere with the
normal university duties expected from the PI. Outside
employment or ownership must be reported, approved and
supervised by the PI's department chair, dean and
provost. In any case, the PI must comply with the
provisions of the Ethics Act discussed below.
Consulting
The WSU Faculty Manual Section IV.D and previous Ethics
Board rulings do allow consulting arrangements for
faculty for up to 20% of the PI's time, so long as these
arrangements
(1) do not interfere with his or her normal university
duties;
(2) the consulting itself is outside of his or her
expected university duties;
(3) do not involve assisting others in university
transactions which the employee has participated;
(4) are not for an organization for whom the law
prohibits receipt of gifts;
(5) do not significantly use university facilities;
(6) do not require the employee to disclose confidential
information or unapproved transfer of university
intellectual property. Consulting activities must be
reported to and managed by the PI's chair, dean and
provost.
Ethics Act basic: Public employees are prohibited from
using their public position for private benefit or gain.
With regard to research projects PIs cannot play both
sides of the fence. The PI or his/her family members
cannot own, hold an executive position, serve on
executive boards, or be employed by a Company and
simultaneously arrange or participate in contracts for
university research services that will benefit the
Company. All Sponsored Research Agreements must be
negotiated and arranged by the University and not the PI.
Even as a consultant to a Company the PI cannot
simultaneously oversee or require that the Company
provide a research contract or any other form of research
support back into the PI's research program which will
result in the PI's personal benefit or Company's benefit.
Consulting for the Company might still be possible, e.g.
serve on scientific advisory board, but arrangements must
be made by the University and the Company to avoid
Conflict of Interest and Conflict of Commitment by the
PI.
A PI or university administrator may sit on some types of
non-profit executive boards such as the Spokane
Intercollegiate Research and Technology Institute (SIRTI)
but must not do so for personal benefit.
A PI or other employee can own stock in retirement funds
like TIAA-CREF or small stock holdings in larger
companies and simultaneously be engaged in sponsored
research agreements with those large companies. In these
cases the PI or other employees do not direct or
influence the research programs of those companies.
Intellectual Property
The PI cannot negotiate license agreements or disclose
university confidential information to a company or
potential Licensee. University Intellectual Properties
are to be disclosed to and managed by the Office of
Intellectual Property Administration and its agent the
WSU Research Foundation.
In keeping with the federal Bayh-Dole Act a PI, who is a
named inventor on university owned Intellectual Property,
can receive royalties from university-licensed
inventions. The University's agent, WSU Research
Foundation, must distribute the royalties.
Employees cannot assist with state transactions if he
or she participated in the transaction previously.
This section of the Ethics Act applies to transactions
outward from the university to the company or other
agencies. The PI, who might benefit personally, cannot
assist or give advice to others, whether for compensation
or not, in a transaction involving the state. For
example, the PI cannot directly advise the Company with
its contract agreements with the university. The PI's
company cannot be a subcontractor on a University
project. This provision limits the employee's ability to
participate in start-up companies established upon his or
her technologies. PIs are advised to seek legal counsel
if they intend to be involved in such start-up companies.
Where to get help
Your use of the REX form in preparation of a grant or
contract proposal offers an avenue to address conflict of
interest and/or state Ethics concerns. Similarly your
Annual Report of Outside Professional Services made to
your chair, dean and provost provides another avenue to
openly describe potential conflicts of interest.
Potential conflicts are referred to the faculty Conflict
of Interest Committee - a committee that focuses upon
federal PHS/NSF guidelines only. If the committee
believes the revealed potential conflict falls outside of
federal PHS/NSF guidelines and there may be a conflict
with the state Ethics Act, they will refer the matter to
the Vice President for Research. Such instances will be
reviewed on a case-by-case basis.
General advice for all university employees regarding the
Ethics Act is provided by Heather Lopez, WSU Internal
Auditor.
Advice regarding a specific research activity having a
potential PI conflict may be routed to Sherry Gordon,
Assistant Attorney General, via your Department Chair and
Dean. Note: The Attorney General's Office represents the
institution and not the employee.
If you have questions about your activities and
associations you may contact me at (509) 335-6412.
