UH System Board of Regents Policies

01.01.1 Federal and State Law

Board policies are subject to all relevant laws, rules, and regulations of the federal government and the government of the State of Texas. It is the policy of the Board to comply with federal and state laws, rules, and regulations at all times. Any policy, System Administrative Memorandum, rule, or regulation found to be in conflict with a federal or state law, rule, or regulation shall be null and void to the extent of the conflict.

01.01.2 Board Bylaws

Board bylaws govern the organization and conduct of Board activities. Board policies, System Administrative Memoranda, and university policies are subject to all Board bylaws and are void to the extent that they conflict with such bylaws. The Board requires of its members compliance with all Board bylaws at all times.

01.01.3 Board Policies

The Board shall adopt official policies to establish direction for the System. The chancellor is responsible for implementation of the policies adopted by the Board. Board policies are intended to govern the actions and conduct of the individual regents, administrators, employees, and agents representing the System. The Board requires of its members, administrators, employees, and agents compliance with all Board policies at all times.

01.01.4 System Administrative Memoranda

In the event the implementation of the policies entails the development and adoption by the Chancellor of System Administrative Memoranda, the System Administrative Memoranda shall make adequate reference to the Board policies that they implement. System Administrative Memoranda are subject to Board policies and are void to the extent that they conflict with such policies. The Chancellor is responsible for the development and adoption of the System Administrative Memoranda. System Administrative Memoranda are intended to specify rules and regulations to implement Board policies, and/or to establish uniform rules, regulations, and procedures on matters of overall System concern not addressed in Board policy.

01.01.5 University Policies

University policies are subject to Board policies and to System Administrative Memoranda and are void to the extent that they conflict with Board policies and System Administrative Memoranda.

(Policy last updated 8/24/2023)

1.2 Definitions

Throughout the Board bylaws, Board policies, System Administrative Memoranda, and other official materials, the following definitions shall apply:

1. “Board.” The Board of Regents of the University of Houston
2. “University.” Any University of the System not including the System administration.
3. “System.” The collective institutions and entities of the University of Houston System including the System administration.
4. “System Administration.” The central administration for the System, as an entity (State Agency Number 783)
5. “University of ” The University legally named the University of Houston. (State Agency Number 730)
6. “UH-Clear Lake.” The University legally named the University of Houston- Clear Lake. (State Agency Number 759)
7. “UH-Downtown.” The University legally named the University of Houston- Downtown. (State Agency Number 784)
8. “UH-Victoria.” The University legally named the University of Houston- Victoria. (State Agency Number 765)

(Policy last reviewed 8/24/2023)

2.2 Executive Officers

1. The Executive Officers of the System are the Vice Chancellors, the Presidents, and the General The Vice Chancellors are responsible for the management and operation of the System under the direction of the Chancellor. The Chief Executive Officers of the universities bear the title of President. Each President is responsible for the management and operation of the university to which they are appointed under the direction of the Chancellor. The General Counsel is responsible for overseeing legal services for the System.
2. The Board appoints the Executive Officers upon recommendation of The Board is responsible for the employment, evaluation, and dismissal of the Executive Officers; however, the Chancellor has the authority to make recommendations to the Board on the employment, evaluation, and dismissal of the Executive Officers.
3. The Board annually reviews the performance of the Chancellor, the internal auditor, and the performance reports on the executive officers presented by the Chancellor.
4. The Board delegates to the Chancellor or their designee, the authority to make interim appointments for Executive Officers, which shall be submitted to the Board for ratification or review.

(Policy last reviewed 8/24/2023)

09.02.1 Authority

The Board is authorized under state law to adopt official seals for the System and its universities. The Board is also empowered by the state legislature to protect the use of the names, logos, trademarks, and other identifying marks of the System and its universities.

09.02.2 Approval

The names, logos, trademarks, and other identifying marks of the Board, the System, and the universities shall be protected and cannot be used without the express approval of the Board or its designated representative. The Chancellor shall take whatever steps are reasonable and necessary to effect and enforce this policy.

(Policy last reviewed 8/24/2023)

21.01.1 Responsibility

1. Annually, the Board approves fiscal year operating budgets and organization plans for the System administration and each university.
2. The Chancellor is responsible for developing the planning and budgeting process employed by the System. The process will provide for review of all plans by the appropriate Board committee prior to Board action.
3. The Chancellor is responsible for preparing and implementing System plans as approved by the Board, for ensuring that the results are compatible with the mission and goals approved for each university, and for reporting System performance results to the Board.
4. Under the direction of the Chancellor, the Presidents are responsible for preparing and implementing plans for their university as approved by the Board, ensuring that the results are compatible with the missions and goals approved for their universities, and reporting their university’s results to the
5. The Board shall approve new degree plans leading to customary degrees offered in American universities, of the first rank, subject to the guidelines and, where necessary, approval of the Texas Higher Education Coordinating Board. The Chancellor shall submit appropriate business plans to support the proposed degree The business plan shall include financial analysis, analysis of student demand, and need for the degree in the community.

21.01.2 Reporting Requirements

Annually, the Chancellor shall report to the Board the operating and budget plans of the System administration and each university for the ensuing fiscal year, and the System performance for that year.

(Policy last reviewed 8/24/2023)

21.03.1

The faculty member is entitled to full freedom in research and in the publication of the results, subject to the adequate performance of the faculty member’s other academic duties; but research for personal pecuniary return should be based upon an understanding with the authorities of the university.

21.03.2

The faculty member is entitled to freedom in the classroom in discussing the subject matter, but the faculty member should be careful not to introduce into the teaching controversial matter which has no close relation to the subject.

21.03.03

The faculty member is a citizen, a member of a learned profession, and an officer of an educational institution. When speaking or writing as a citizen, the faculty member shall be free from institutional censorship or discipline, but the faculty member’s special position in the community imposes special obligations. As a person of learning and an educational officer, the faculty member should remember that the public may judge the profession and the institution by the faculty member’s verbal or written Hence the faculty member should at all times strive for accuracy, exercise appropriate restraint, show respect for the opinions of others, and make every effort to indicate that the faculty member is not speaking for the institution.

(Policy last updated 8/24/2023)

21.06.1 Definitions

21.06.1.A

Appointment - The employment of an individual in a given capacity for a specified time period at a stated salary. Faculty appointments are made at the universities following procedures developed at each respective university and which have been approved by the Chancellor. Appointment letters and reappointment agreements must be approved by Academic Affairs (AA) and must follow standard forms as adopted by AA at each university and reviewed by the UHS Office of General Counsel. Prior approval of the Chief Academic Officer (Provost), the President, Chancellor, and the Board of Regents is required before any faculty appointment with tenure can be made. In addition, no person shall be appointed to the position of Dean, or equivalent, or Vice President, or equivalent, without prior consultation with the Chancellor and in accordance with Board of Regents Policy 57.10. No administrator may be given faculty status or tenure without a review and positive recommendation from the academic unit involved.

For purposes of academic personnel administration, there are three distinct groups of faculty appointment. Academic policies and procedures may vary depending on the specific faculty group:

1. Tenured faculty appointment – The titles/ranks at which faculty may be tenured are associate professor and professor.
2. Tenure-track faculty appointment – The titles/ranks which comprise the tenure-track faculty group are assistant professor, associate professor, and professor.
3. Non-tenure-track (NTT) faculty appointment – The titles/ranks which comprise the non-tenure-track (NTT) faculty group shall be established by each respective university’s non-tenure-track (NTT) faculty policy and/or procedures. Policies and procedures for non-tenure-track faculty shall be governed by System or campus policies.

21.06.01.B

Faculty qualifications - To accomplish the educational mission and goals of the university, it is essential that each institution appoint competent and qualified faculty. For accreditation purposes, the university is guided by the Southern Association of Colleges and Schools Commission on Colleges (SACS COC), our institutional regional accrediting body. Guidance regarding appropriate credentials for teaching are set out in the SACS COC Faculty Credentials Guidelines.

21.06.01.C

Seperation - The process by which an individual terminates employment with the university. See Policy 21.06.xx below regarding dismissal of tenured-faculty. Dismissal of tenure-track and non-tenure-track faculty are governed by policies at the System and campus level.

21.06.01.D

Tenure - Tenure is the entitlement of a faculty member to continue in the faculty member’s academic position unless dismissed for good cause as defined herein. Tenure does not create a property interest in any attributes of a faculty position beyond a faculty member’s continuing employment, which includes regular salary and any privileges incident to being a tenured professor, depending on the discipline. It is awarded by the Board of Regents and upon the recommendation of the President of the respective university after the appropriate university review processes have been followed. Tenure is awarded on the basis of excellence in research and scholarship, teaching and instruction, and service to date, consistent with the mission of the university, and a high degree of confidence in the continuation and enhancement of this performance for the benefit of the university.

Recommendations for tenure shall be made once each year to be effective at the beginning of the succeeding academic year except for those faculty joining the university with tenure. Tenure can only be revoked due to dismissal for cause, financial exigency, elimination of programs, medical reasons, retirement, or resignation. Tenured faculty members shall be afforded every opportunity to be placed in other related faculty assignments when the existence of a financial exigency or the elimination of a program may necessitate the dismissal of tenured faculty members. Tenure shall be specific to the University of Houston System university recommending tenure and never applies to administrative appointments.

Expedited Tenure Review - For faculty being hired with tenure an expedited process should be established by each institution which includes an expedited scholarly review consistent with national standards. Tenure is contingent on expedited review and will be presented at the next regular scheduled board meeting for approval.

21.06.01.E

Promotion - Advancement to a higher rank or title based on merit or evidence of excellence in the performance of job responsibilities. Promotions of tenured and tenure-track faculty are subject to the approval of the Chancellor and Board of Regents upon recommendation of the President.

21.06.01.F Tenured and Tenure-track positions - The following faculty ranks are considered part of the tenure-track which may lead to the award of tenure: assistant professor, associate professor, and professor. The titles/ranks at which faculty may be tenured are associate professor and professor.

21.06.01.G

Probationary period - The time a faculty member spends under appointment in a tenure-track position prior to being awarded tenure.

For tenure-track faculty, the probationary period shall not exceed seven years at the assistant professor rank, and the conditions of the period shall be specified in the appointment letter. Up to three years of prior full-time collegiate level teaching at the rank of assistant professor or above may be credited to the probationary period. Associate professors and professors without tenure shall normally serve a probationary period not to exceed four years, and conditions of the probationary period shall be specified in the appointment letter.

21.06.01H

Faculty leaves of absence - Faculty leaves of absence without pay are granted by the President or designee. Normally, the period of time of a leave of absence shall not be counted as time in the tenure-track or promotion sequence except in those circumstances approved by the President or designee.

21.06.2 Faculty Participation in Policy Development

The Board shall get advice and comment from faculty from each of the universities regarding these faculty personnel and dismissal policies. Utmost consideration shall be given to faculty advice in the development of these policies.

21.06.3 Filling with the Texas Higher EducationCoordinating Board

This policy shall be filed with the Texas Higher Education Coordinating Board on or before September 1 of each year.

(Policy last updated 8/24/2023)

21.07.1 Assurances

University policies and procedures for faculty dismissals must assure that:

1. the rights of the individual to due process are protected;
2. dismissal shall not violate the constitutionally protected rights of an individual, including but not limited to an individual’s freedom of expression, and shall not be used to restrain faculty members in their exercise of academic freedom;
3. dismissal procedures provide for timely written notice of impending dismissal that specifies the grounds on which dismissal is sought;
4. except in the case of summary dismissals, a faculty member notified of impending dismissal has the option of a hearing before an impartial faculty tribunal designated by the established procedures of the particular University; and
5. the burden of proof in dismissal proceedings rests with the University seeking the dismissal.

21.07.2 Justifications

Dismissal may be justified by one or more of the following:

1. Adequate Cause. Termination of employment for adequate cause may include:
   1. grounds related to dishonesty or conduct involving moral turpitude that adversely affects the University or the faculty member’s performance of duties or meeting professional responsibilities, or to demonstrated professional incompetence in teaching or research. Under this provision and in order to constitute a basis for dismissal, moral turpitude must also be conduct for which criminal prosecution would be permitted and that Texas Courts would deem a crime of moral turpitude;
   2. grounds related to substantial and manifest neglect of professional or academic responsibilities, including continually or repeatedly failing to perform duties or meet professional responsibilities, as well as job abandonment. Job abandonment means failure or refusal to report to work, to perform the terms of employment, or to report notification of absence for more than five consecutive work days, except in cases of emergency, documented illness or injury, or when other specific notification arrangements have been made in agreement with the faculty member’s supervisor;
   3. grounds related to failing to successfully complete any post-tenure review professional development program;
   4. grounds related to violating laws or University policies substantially related to performance of the faculty member’s duties, including but not limited failure to report sexual harassment, sexual assault, dating violence, or stalking, as required by Texas Education Code 51.252;
   5. grounds related to conviction of a crime affecting the fitness of the faculty member to engage in teaching, research, service, outreach, or administration;
   6. grounds related to engaging in unprofessional conduct that adversely affects the University or the faculty member’s performance of duties or meeting of responsibilities;
   7. grounds related to falsifying the faculty member’s academic credentials; or
   8. grounds related to actions that would result in a general condemnation of the faculty member by the U.S. academic community.
2. Financial Exigency. Termination of employment may be justified by a demonstrated and bona fide imminent financial crisis that threatens the continuation of the academic programs in their present form, and that cannot be alleviated by other means. Each University will develop criteria and procedures to determine whether a state of financial exigency exists. Standards so developed will include provisions for faculty involvement in the determination and for a minimum twelve-month notice of termination of appointment to tenured faculty. Untenured faculty will be given notice consistent with the University’s non-reappointment guidelines.
3. Medical Reasons. Termination of employment may be justified by clear and convincing medical evidence that the faculty member cannot fulfill professional and academic obligations, or the terms and conditions of appointment, with reasonable accommodation.
4. Constructive Resignation. A faculty member who, without permission of the department chair, dean, or Provost, fails to report to work for a period of time exceeding 30 days or fails to return to work after the expiration of an approved absence shall be deemed to have constructively tendered a resignation. In such a case, after written notice, the faculty member's employment will be terminated without initiating termination for cause. This does not apply if the faculty member has been approved for additional leave or if an exception is necessitated by state or federal law.
5. Discontinuance of Academic Termination of employment may be based on the discontinuance of an academic program reflecting long-range judgments concerning the educational mission of the University. Tenured faculty will be given notice eighteen months prior to termination of employment due to discontinuance of academic programs. Untenured faculty will be given notice consistent with University non-reappointment guidelines.
6. In the event of dismissal of faculty by reason of financial exigency or discontinuance of academic programs, the University’s administration will make every reasonable effort to place affected faculty in other positions. A faculty member with tenure will not be dismissed in favor of retaining a faculty member without tenure except in extraordinary circumstances where a distortion of the academic program would otherwise result.

21.07.3 Summary Dismissal

Faculty may be subject to summary dismissal for committing extremely serious misconduct. This includes but is not limited to sexual misconduct, Egregious scientific/research misconduct, fraud, violence or threat of violence in the workplace, intentional or knowing falsification of a faculty member's academic credentials; or conviction of a crime substantially affecting the fitness of the faculty member to engage in teaching, research, service, outreach, or administration.

Summary dismissal of a faculty member will proceed as follows:

1. The faculty member will be provided with written notice of the allegations against them together with an explanation of the evidence supporting summary dismissal; and will be provided an opportunity for them to respond to the allegations in a hearing with the Provost of their respective university;
2. The Provost will review any response from the faculty member and make a written determination of whether the University will proceed with the summary dismissal of the faculty member;
   1. 1. A copy of the written determination will be promptly provided to the faculty member and will clearly indicate whether the faculty member will be subject to summary dismissal.
   1. The written determination will include the effective date of the dismissal and information regarding the faculty member's opportunity for a post-dismissal appeal, if the Provost’s decision is in favor of summary dismissal; or
   2. The written determination will state that the faculty member is not subject to summary dismissal, if the Provost’s decision is against summary dismissal.
3. If the Provost determines that the faculty member is not subject to summary dismissal, if appropriate, the University may choose to proceed under regular dismissal proceedings as governed by System and campus policies.

(Policy last updated 8/24/2023)

21.08.1 Definitions

1. "Author" means any person (as defined below) who actually creates copyrighted material (also as defined below).
2. “University” means all universities within the University of Houston
3. "Business participation" means the participation of a person in any activity, the purpose of which is the commercial development or exploitation of intellectual property owned by the University. Such participation includes, but is not limited to, an equity interest, a consulting relationship, service on a Board of directors or similar body, a royalty interest, stock ownership, or any similar relationship.
4. "Copyrighted material" or "work of authorship" means original expression that is fixed in any tangible medium of expression and subject to copyright protection under Title 17 of the United States Code as it now exists or as it may be amended. Under federal law, copyright subsists from the moment of the work's creation, although protection may be enhanced by registration with the United States Copyright Office. Works of authorship currently include: 1. Books, journal articles, texts, glossaries, bibliographies, study guides, laboratory manuals, syllabi, tests, and survey instruments; 2. Lectures and unpublished lecture notes; 3. Musical works; 4. Dramatic works; 5. Works of visual art, such as sculptures and drawings; 6. Architectural works; 7. Films, audiovisual works, slide programs, film strips; 8. Sound recordings and video recordings containing original performances; 9. Programmed instruction materials; 10. Computer programs and documentation.
5. "Creator" means an inventor or author (each as defined elsewhere in this policy).
6. "Intellectual Property Rights" means those rights of ownership recognized by law in technology, copyrighted material, and computer software and firmware (all as defined in this policy). Intellectual property rights include, but are not limited to patents, copyrights, and rights to trade secrets and know-how.
7. "Inventor" means any person who discovers or invents
8. "Net income" means, with respect to Board-owned rights in any particular intellectual property and/or copyright, gross revenue received by the University as a result of the commercialization of such rights, less:
   1. any taxes or other charges of any description paid by the University to governmental agencies in connection with the particular intellectual property; and
   2. all legal and other expenses paid by the University to affiliates or third parties in filing, prosecuting, maintaining, enforcing, defending, and commercializing such rights in the United States or foreign countries.
9. “Net Sales” means the amount billed or invoiced on sales of licensed products and/or licensed services, less:
   1. Customary trade, quantity or cash discounts, and non-affiliated brokers' or agents' commissions actually allowed and taken;
   2. Amounts repaid or credited because of rejection or return; and
   3. To the extent separately stated on purchase orders, invoices, or other documents of sale, taxes levied on and other governmental charges made as to production, sale, transportation, delivery, or use and paid by or on behalf of the creator.
10. "Person" means any part-time or full-time faculty or staff member working at, or student attending, the University or other entity under the governance of the Board.
11. "Chancellor/President" means the Chancellor/President of the University under the governance of the Board, or any person the Chancellor/President designates to carry out the University's intellectual property policy.
12. "Software" means any program, language, or procedure for a computer system or portion thereof, and any accompanying documentation. Software includes, but is not limited to, computer programs, internal programs, subroutines, assemblers, generators, subroutine libraries, compilers, operating systems, and application programs.
13. "Technology" means discoveries, innovations, or
14. "University research" means all research, activities, or work within or related to a person's expertise or general area of employment responsibility, or that has resulted from activities performed by the person on University time, with the support of University funds or from using University facilities, including work under a research agreement with an external sponsor and research conducted by anyone, whether or not a person as defined in this policy, who utilizes University resources.
15. “University support” means direct University support which includes but is not limited to the following:
    1. Equipment, materials, and staff services from any of a variety of university departments other than the person’s academic department or unit are used in the development of copyrightable materials at no expense to the author or the author’s academic department/unit.
    2. Author receives support for the development of copyrightable material, such support being in the form of money in excess of normal salary, reduced teaching load, released time, or other resources from a department, college, or any unit of the University.

21.08.2 Standing Committee on Intellectual Property

1. Appointment. The Chancellor/President of the University shall appoint or specify the make-up of a Standing Committee on Intellectual Property.
2. Duties in General. In addition to the responsibilities described elsewhere in this policy, the committee will advise and recommend to the Chancellor/President:
   1. guidelines and procedures for implementation of this intellectual property policy;
   2. proposed amendments to this policy; and
   3. such other matters as the Chancellor/President

21.08.3 Technology: Patents, Trade Secrets, Know-How, Etc.

1. Ownership of Technology. The Board owns all intellectual property rights for technology that is conceived or reduced to practice by any person engaged in university research. The Board has delegated to the Chancellor/President of the University the authority to make the following exceptions:
   1. In cases of contracts for sponsored research exclusively with an industrial sponsor or in other rare circumstances for sponsored research, the University may agree, that the sponsors or other parties may own the intellectual property rights in technology resulting from such research.
   2. The University may accept research agreements that, under statutory law, vest intellectual property rights in the technology resulting from such research in an agency of government.
   3. After consideration as required by this policy, the University may waive intellectual property rights in technology in favor of the inventor.
2. Technology Agreement. Every person employed by the University shall execute a "Technology Agreement," a copy of which is available from the Chancellor/President's office. However, the failure of any person to execute a "Technology Agreement" shall not affect the Board's rights under this policy.
3. Technology Assignment and Execution of Documents. Whether or not a person makes a disclosure of technology as described below, they shall execute assignments or any other documents required for the acquisition and protection of Board-owned intellectual property rights, including those documents necessary to enable the University to fulfill requirements imposed by agreement or by law.
4. Disclosure of Technology. Carefully planned methods of transferring Board-owned rights in technology will best accomplish the objectives stated in the "Purpose" section of this policy. The University can accomplish those objectives only if inventors promptly disclose technology. Premature publication of information pertaining to discoveries and inventions, or delayed prosecution of patent protection, can damage seriously the ability to obtain patent protection. Therefore, if a person conceives or reduces to practice any technology, that person must disclose such technology to the University as soon as practicable after the date of first conception or Certain research agreements may require disclosure, and in such a case a person shall disclose technology in accordance with the agreement. To make a proper disclosure, the inventor must prepare, sign, and date a patent disclosure in the form promulgated by the University. The inventor must also include pertinent data or illustrations to show the principle of the technology.
5. Action after Disclosure
   1. The Standing Committee on Intellectual Property shall review the technology upon disclosure and shall recommend to the Chancellor/President that the University adopt one of the following actions:
   2. institute action to acquire patent protection. The committee shall recommend whether the University should pursue such action itself or refer the technology to a management agency; or license the technology as know-how and/or a trade secret, whether or not it obtains patent protection;
   3. transfer intellectual property rights in the technology to the research sponsor, if such transfer is required by a research agreement; or
   4. waive ownership in the intellectual property rights in the technology in favor of the inventor with the University retaining 4% of net sales, should the inventor commercialize the technology that was disclosed. In addition, if the University had invested financial resources for legal protection of the technology prior to waiving ownership, the University shall recoup its legal fees and expenses from future revenues in addition to retaining 4% of net sales from the commercialization of the technology. It is noted, however, that any future improvements or modifications developed at the University are considered new inventions and the property of the University and subject to this policy. The 4% interest will be distributed: 2% to the University, 1% to the Department(s) or Research Center based on research budget allocation, and 1% to the College(s) based on research budget allocation.
   5. After reviewing the committee's recommendation and such other technical consultation as is appropriate under the circumstances, the Chancellor/President shall determine the University's course of action concerning the technology.
   6. The University will act in good faith and will attempt to evaluate all disclosures within a reasonable time. The Standing Committee on Intellectual Property evaluates each disclosure, if adequate (see subsection following), within 30 days prior to the expiration of patent pendency for the provisional application. The Chancellor/President has an additional 30 days to act on the committee's recommendation. If either the committee or the Chancellor/ President fails to act on the invention within the relevant time period specified above, the inventor may request, and in response thereto, the University may grant a waiver of the University's rights in favor of the inventor.
   7. If the inventor fails to provide any information pertinent, in the committee's judgment, to evaluation of the disclosure, the disclosure is not "adequate." In such circumstances, the committee shall request the needed information from the inventor, and the calculation of the time periods specified in the foregoing subsection shall not begin until the requested information is received by the committee.
6. Publication. Premature publication of information pertaining to technology could damage seriously the University's ability to obtain patent protection in foreign countries. Accordingly, an inventor may not seek publication of any information pertaining to disclosed technology until the earlier of (1) 90 days after disclosure is made or (2) the University grants permission for such This requirement is intended only to affect the timing for publication of research findings and shall not be used to infringe upon the academic freedom of any person. However, if the inventor publicly disclosed the invention, the University and members of the Standing Committee on Intellectual Property shall not be held responsible for any loss if patent protection is not secured.

21.08.4 Copyrights

1. Ownership of Copyrights. The University will not assert ownership of copyright developed by faculty, staff, or students, unless separately contracted for, in any: Books, journal articles, texts, glossaries, bibliographies, study guides, laboratory manuals, syllabi, tests, and survey instruments; 2. Lectures and unpublished lecture notes; 3. Musical works; 4. Dramatic works; 5. Works of visual art, such as sculptures and drawings; 6. Architectural works.
2. The University will assert ownership of copyright developed by faculty, staff or students, with regard to other types of works subject to copyright, namely, 7. Films, audiovisual works, slide programs, and film strips; 8. Sound recordings and video recordings containing original performances; Programmed instruction materials; 10. Computer programs, software, and documentation, allocation of copyright ownership will be as follows:
   1. University Supported Effort. When a work is created with financial support or resources of the University and the work is not prepared in accordance with the terms of a contract or grant in which the University is a party or as a specific University assignment, the University will own the copyright and the division of royalty and other income will be based on the Net Income Distribution included in this policy. Routine use, as sanctioned by University policy, of library, office space, equipment, supplies, facilities, and personnel within the author’s department or college does not, for the purposes of this section, constitute University support. Faculty preparation of standard teaching and research materials (e.g., PowerPoints) and recordings of lectures and/or software (e.g., python code) are “faculty owned”, while special content created by university staff or faculty members that received additional compensation to create programmatic content will be university owned.
   2. Extramurally Sponsored Effort. Copyright in works developed with support from an outside agency through a contract or grant will be owned by the University. The Chancellor/President or their designee must approve deviations from the policy.
   3. University Commissioned Efforts. Materials or other works produced by employees of the University will be subject to copyright exclusively by the University, if the University commissioned the employee to write or produce the specific materials or works. A faculty member’s general obligation to produce scholarly and creative works and the receipt of a professional development leave, unless there is a specific agreement to the contrary, do not constitute University Commissioned Efforts as defined in this policy.
   4. Student copyrights as a result of course work. The University claims no rights to works created by students in the course of their education, such as dissertations, papers and articles, if the student received no support from a research grant in the form of wages, salary, stipend or a grant from funds administered by the University. The University will own the copyright to works created by graduate students in the course of their assigned duties of employment, including duties as teaching or research assistant as part of an assigned task, where the assignment explicitly states that the work will be owned by the University.
   5. Categorization issues. It is recognized that the boundaries among traditional forms of works of authorship may be difficult to apply to certain works in newer media. For example, the line between books and programmed instruction materials may not be apparent. For purposes of this policy, a work whose presentation and use are interactive (other than for purposes of searching the text or otherwise locating material, or for verifying correct answers) will be regarded as a computer program rather than a book. When questions of ownership arise, and until the dispute is resolved, it will be managed as though the University owns the copyright.
   6. Software and Firmware. Since the potential exists to protect software and firmware under copyright, patent, and trade secret laws, the author must comply with Board policies and regulations governing copyrights and technology.
3. Disclosure of Copyright. Carefully planned methods of transferring Board-owned rights in copyright will best accomplish the objectives stated in the "Purpose" section of this The University can accomplish those objectives only if authors promptly disclose copyrighted material. Therefore, if a person creates copyrighted material, that person must disclose such works to the University as soon as practicable after the date of fixing the original expression in any tangible medium. Certain research agreements may require disclosure, and in such a case a person shall disclose technology in accordance with the agreement. To make a proper disclosure, the author must prepare, sign, and date a copyright disclosure in the form promulgated by the University. The author must also include other pertinent data to show the medium of copyright.
4. Action after Disclosure
   1. The Standing Committee on Intellectual Property shall review the copyright upon disclosure and shall recommend to the Chancellor/President that the University adopt one of the following actions:
   2. recommend whether the University should pursue commercialization action itself or refer the technology to a management agency; or license the copyrighted material;
   3. transfer the rights in the copyright to the research sponsor, if such transfer is required by a research agreement; or
   4. waive ownership in the copyright in favor of the author with the University retaining 4% of net sales, should the author commercialize the copyright that was disclosed. In addition, if the University had invested financial resources for legal protection of the copyrighted material prior to waiving ownership, the University shall recoup its legal fees and expenses from future revenues in addition to retaining 4% of net sales from the commercialization of the technology. It is noted, however, that any future improvements or modifications developed at the University are considered new copyrighted material and the property of the University and subject to this policy.
   5. After reviewing the committee's recommendation and such other technical consultation as is appropriate under the circumstances, the Chancellor/President shall determine the University's course of action concerning the technology.
5. Rights to Fair Use. Where the University owns the copyright, the authors will retain rights to copy and distribute the original work to the extent necessary for classroom use in connection with courses taught by the author at this or another University. In exercising these rights, the author will provide fair attribution to the University of Houston for having supported the original The author will include the copyright notice; where the author owns the copyright, the University will retain rights to fair use, archival and library reproductions, and performance and display of such works.
6. Revision of Materials and Works. Works as to which the University, under the terms of this policy, owns the copyright shall not be altered or revised without providing the author a reasonable opportunity to assume the responsibility for the revision. If the author declines the opportunity to revise such material, the Chancellor/President in consultation with the appropriate department or office will make the assignment of responsibility for the revision.
7. Withdrawal of Materials and Works from Use. Materials and works as to which the copyright is owned by the University, under the terms of this policy, shall be withdrawn from use when the University in consultation with the author deems such use to be obsolete or inappropriate. No withdrawal or other discontinuance shall take place that would violate the terms of any licensing or other agreement relating to the materials or
8. Reimbursement of Expenses. In those instances where the University takes copyright ownership pursuant to this policy, any gross revenue received as a result of commercializing any work of authorship developed or created at the University must first be applied to recovering expenses associated with the creation of such work and with exploitation of the copyright therein. Thereafter, revenue will be allocated to the authors and the University in the same manner as net income in the case of patented
9. Apportionment Among Authors. When there is more than one author of a work, the shares to the respective authors shall be distributed in the proportions set forth on the disclosure form submitted to the Standing Committee on Intellectual Property. If no disclosure has been submitted, then by agreement between the authors, or in the absence of such agreement, the proportions will be determined by the Chancellor/President after affording an opportunity for hearing those concerned.
10. Resolution of Copyright or Equity Disputes. A University Copyright Appeals Committee, an Ad Hoc Subcommittee of the Standing Committee on Intellectual Property, shall review the applications for the resolution of copyright or equity disputes and shall submit its recommendation to the Chancellor/President. Either the employee or the Vice President for Research may request a review. The Copyright Appeals Committee shall be appointed by the Chancellor/President from nominations submitted by the Standing Committee on Intellectual Property and shall function in accordance with policies and procedures established by the Standing Committee on Intellectual Property and reviewed by the University Faculty Senates. The Chancellor/President’s decision will be binding on all parties and will be conveyed to all involved in a timely fashion, but must be conveyed within 60 working days.

21.08.5 Commercialization of Board-Owned Intellectual Property and Copyrighted Material

The Board policy is to make productive use of Intellectual Property and Copyrighted Material for the good of the public, the creator, and the System. To achieve this goal, the University may license, transfer, or otherwise commercialize Board rights in technology or copyrighted works developed by its faculty, staff, and students. To manage this process, the University operates a licensing and technology transfer program and requires strict compliance therewith. The University also encourages creators themselves to seek potential licensees and transferees or to notify the University of such individuals or companies. In all instances, the University must be involved in any negotiation of a commercialization agreement concerning Board intellectual property rights in technology or copyrighted works and must give final approval to any such agreement.

21.08.6 Net Income Distribution

1. Reimbursement to System. The Board recognizes the healthy symbiotic relationship that, by this policy, it seeks to foster between itself and persons associated with the University. Of necessity, the University will receive all gross revenue as a result of commercializing any intellectual property rights developed or created at the University and this must first be applied to recovering the expenses listed in the definition of "net income" above. Thereafter, the creator(s) of the intellectual property has a residual economic interest to be paid out according to the schedule in the following
2. Creator's Residual Economic Interest
   1. 40% of Net Income shall be paid to the creator(s) thereof in the proportions set forth on the disclosure form submitted to the Standing Committee on Intellectual Property (in the case of patents and other technology) or on the title page of the copyrighted work.
   2. Thereafter, unless the Standing Committee on Intellectual Property recommends, and the Chancellor/President adopts a different distribution, the remaining Net Income derived from the commercialization of the intellectual property rights shall be distributed as follows:
   3. 40% to the University;
   4. 13% to the creator(s) academic department(s) or research center(s) in proportion to the research budget allocations;
   5. 7% to the college(s) in proportion to the research budget allocation.
3. Time of Distributions. The sums referenced in the foregoing schedule shall be distributed annually to the creator(s) or the University as soon as practicable after the close of the fiscal year during which the income was received.
4. When equity, in the form of stocks, is received as part of the license agreement, the company shall be directed to issue 40% of the stocks to the creator(s) and the remainder of the stock shall be distributed to the University. For clarity, the creator’s share of equity, in the form of stocks, will be issued directly from the company and the creator shall not then be entitled to an additional 40% share of the remaining stock distributed to the University.
5. The distribution with the University shall be as follows:

   The entire University share will be distributed to a that has incurred the costs of development, protection of the Intellectual Property and Marketing;

   1. If the University of Houston System or a university has contributed financially to the commercialization of the Intellectual Property, the Chancellor or their designee shall determine the equitable distribution of the University share;
   2. Each university shall establish its own policies for internal distribution.

21.08.7 Business Participation

1. Business Participation Approved. The Board does not discourage persons subject to this policy from participating in the commercial development and/or exploitation of Board-owned intellectual Nonetheless, such participation must conform in all respects to this policy, including the policy stated above concerning licenses and transfers to applicable state and federal laws, and University conflict of interest policies.
2. Specific Requirements. In particular, a person shall not engage in business participation if such participation would violate Board Policy 57.08, section 572.051, Texas Government Code, section 912, Texas Education Code, or other state or federal law or regulation that controls such participation.

(Policy last updated 8/24/2023)

21.11.1 Preamble

The Board of Regents of the University of Houston System affirms the principle that the quality of its universities is inextricably tied to the quality of its faculty, and their contributions and endeavors. These enable the University to serve its public through the creation of an environment that nurtures faculty development and increase the likelihood of success in the pursuit of teaching, research and service. The faculty is comprised of several groups: tenured faculty, tenure track faculty, and non-tenure-track faculty. The Board supports the contributions of all its faculty constituents and remains committed to the institution of tenure, recognizing that the public interest is best served in a climate in which faculty members are free to pursue the creation and dissemination of knowledge.

At the same time, the Board recognizes the need to create an environment of accountability and public trust in both the institution as a whole and in individual faculty members. Performance evaluation processes must include peer review for the different groups of faculty and shall be conducted as prescribed by applicable university policy and procedure. Evaluations shall be based on the professional responsibilities of the faculty member as prescribed by applicable institutional policies for the different groups of faculty in the areas of teaching, research, and service, and where applicable, patient care and administration.

The policies promulgated below are intended to ensure that all faculty including tenured, tenure track, and non-tenure-track faculty members consistently perform at acceptable professional levels, to provide for a plan of faculty development where necessary, and finally, in the instance of failure to correct deficiencies, to provide for the revocation of tenure or other appropriate disciplinary action for tenured faculty and to provide for appropriate disciplinary measures for tenure track and non-tenure-track faculty.

21.11.2 Comprehensive Performance Evaluations of Faculty

Regardless of tenure status, all full-time faculty members shall be evaluated on an annual basis. The results of performance evaluations are used to determine eligibility for merit raises, and they shall factor into tenure and promotion decisions for tenured and tenure-track faculty and contract renewals for non-tenure track faculty. Because the evaluation has immediate and long-term effects on their professional relationship with the institution, faculty members should take special care in preparing their annual reports, reviewing the appropriate policy and departmental criteria. New faculty should consult their chairs and departmental colleagues for examples of well written reports.

Tenured and tenure-track faculty shall be evaluated according to the three categories of evaluation used in tenure and promotion decisions: teaching, and scholarly/creative activities as well as service. Non-tenure-track faculty evaluation policies shall be developed at the university, college, or departmental level. Each university shall create a policy governing an open, fair, and transparent annual performance review process, incorporating academic due process rights. The University policy shall provide a process providing for a short-term development plan with performance benchmarks for any faculty receiving a rating of not meeting expectations in any areas of any evaluation conducted, see also BOR policy 21.11.3 below.

Administrators who also hold a tenured faculty position shall be subject to the established review procedures for administrators as codified in Board by-laws, Board policies, System Administrative Memoranda, and university policies on this subject.

The records of actions taken to comply with these policies shall reside in the Office of the Provost of each University. Deans must provide an annual written report to the Provost with regard to the status of faculty members for whom a professional development plan has been established.

21.11.3 Post Tenure Review

1. Institutional post-tenure performance review policies must conform to any and all relevant state statutes, including procedures for alternative dispute resolution (Chapter 154, Civil Practice and Remedies Code) and to other applicable policies of the Board (Board of Regents Policy 21.07 - Faculty Dismissal).
2. Post-tenure performance review policies and procedures at both the System and University levels and any subsequent amendments thereto (hereinafter referred to as “post-tenure performance review policies”) are grounded in three principal academic values: peer review, academic freedom, and due process.
3. The evaluation process shall be directed toward the professional development of the faculty member. Toward that end, the institution, through its appropriate academic officers and in concert with the affected faculty member, shall devise an individual short-term plan of professional development for faculty members for whom a determination of unsatisfactory performance (not meeting expectations) is made. Such a professional development plan shall be specific with regard to expectations, actions, performance benchmarks for returning to satisfactory performance, timeline, resources, and the consequences of non-correction of the identified In the event that implementation of the professional development plan does not result in substantial improvement of performance, the faculty member may be subject to disciplinary action, including possibly the revocation of tenure and dismissal. A tenured faculty member subject to the revocation of tenure and dismissal on the basis of an unsatisfactory performance evaluation must be given the opportunity for referral of the matter to a non-binding alternative dispute resolution process. A faculty member may also be subject to revocation of tenure or other appropriate disciplinary action if, during the evaluation process, incompetency, neglect of duty, or other good cause is determined to be present in accordance with BOR Policy Section 21.07. (Faculty Dismissal).

(Policy last reviewed 8/24/2023)

University regulations concerning student use of alcohol and controlled substances shall be consistent with state and federal law and reflect the intent of the Texas Legislature and Congress to discourage drug and alcohol abuse by students.

Accordingly, such regulations shall provide disciplinary measures including, and after due process, suspension from attendance or enrollment for a prescribed period of time.

Presidents shall encourage and develop regular communication with students for the purposes of:

1. informing students of regulations concerning the use of alcohol and controlled substances; and
2. informing students of programs, either on campus or in the community, designed to counsel and advise individuals regarding alcohol and drug abuse.

(Policy last reviewed 8/24/2023)

The Board recognizes that there are legally incorporated nonprofit organizations (support organizations, sometimes known as “institutionally related foundations”) whose sole purpose is to benefit the University of Houston System, any of its universities, or any specified activity within those universities. These organizations are administered by Boards of directors that are independent from the direct control and supervision of the UH System Board of Regents. However, because state law charges the Board with governance of the System, the Board must ensure that the existence, purpose, and operations of all such organizations and foundations are consistent with the Board’s policies and objectives for the System. The Board therefore delegates to the System Chancellor the authority necessary to ensure compliance by all private support organizations and foundations authorized to act on behalf of the System with a written agreement addressing the subject matters indicated below. The Chancellor and/or their designee shall report to the Board annually on the compliance status of each authorized support organization.

Any nonprofit entity wishing to become an authorized support organization of the System or any of its universities must be approved by the Board to act in this capacity. Each support organization approved by the Board must enter into a written agreement that adequately addresses the following:use of the names, logos, symbols, or marks, or any parts thereof, of the University of Houston System, and its universities by the support organization;

1. 1. solicitation, acceptance, administration and investment of funds received by the support organization for the benefit of the System or any of its universities, including reporting and acknowledgement/receipting, and auditing requirements for assets, gifts, and distributions;
   2. use of System staff, facilities, and other resources;
   3. service by an officer or employee of the System and/or its universities as an officer or director of the support organization;
   4. remuneration or compensation in any form to an officer or employee of the System and/or its universities by the support organization;
   5. access to the records and documents of the support organization by the University of Houston System, including its Internal Auditor;
   6. the compatibility of the activities of the private support organization with the mission of the System; and
   7. standards of ethical and professional conduct for the support organization’s financial advisors and service providers; and
   8. other issues the Chancellor deems necessary in establishing rules governing all aspects of conduct of the System and its employees in relationship to the support organization.

(Policy last reviewed 8/24/2023)

41.01.1 Philosophy

1. A primary responsibility of the Board is to ensure the legal and fiscal integrity of the System. To that end, the Board directs the Department of Internal Auditing to perform those audit activities necessary to assure that the System’s resources are being properly managed and accounted for and that the institution is complying with approved policies and statutory requirements.
2. Internal audits are resource tools for management and enable the System to monitor the effectiveness with which policies are followed, objectives met, and control Systems function.
3. Internal Auditing is an independent, objective assurance and consulting activity designed to add value and improve the System’s operations. It helps the System accomplish its objectives by bringing a Systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes, including those related to contracts.
4. The Department of Internal Auditing will be free of all operational and management responsibilities that would impair the ability to make independent reviews of all aspects of the System.
5. In carrying out their duties and responsibilities, members of the Department of Internal Auditing will have full, free, and unrestricted access to all System activities, records, property, and personnel. The Department of Internal Auditing may also request access to the financial records of private support organizations and foundations chartered for the benefit of the University of Houston System or any part thereof.

41.01.2 Organizational Responsibility

1. The Chief Audit Executive will report directly to the chair of the Audit and Compliance Committee of the Board and have access to the Chancellor.
2. The Board is responsible for the employment, evaluation, and dismissal of the internal auditor; however, the Chancellor has the authority to make recommendations to the Board on the employment, evaluation, and dismissal of the internal auditor.
3. The Department of Internal Auditing will perform its duties in accordance with the Standards for the Professional Practice of Internal Auditing and the Code of Professional Ethics, as established by the Institute of Internal Auditors, and generally accepted government auditing standards.

41.01.3 The Internal Auditing Process

1. A. In August of each year, the Department of Internal Auditing will present to the Audit and Compliance Committee a long-range audit plan and an annual audit plan for the Board’s review and approval. This plan will include a summary of the resources dedicated to the Internal Audit program in order for the board to determine if adequate resources exist to ensure that risks identified in the annual risk assessment are adequately covered within a reasonable time frame. The plan will include risk-based testing of contract administration.
2. The Chief Audit Executive will meet with the Chancellor on a regular basis to review audits performed, audits in progress, and future audits, and special investigations.
3. The Chief Audit Executive will meet with the chair of the Audit and Compliance Committee on a regular basis to review audits performed, audits in progress, and future audits.
4. Internal Audit reports will be distributed to the Chancellor, members of the Board of Regents, the State Auditor, the Governor’s Office of Planning and Budgeting, the Legislative Budget Board and the Sunset Advisory Commission, as required by the Texas Government Code, Section 2102.
5. Internal Audit’s written responses to the State Auditor’s Office’s requests of Internal Audit to investigate reports of suspected fraud, waste, abuse and/or ineffective operations at the University of Houston System will be distributed to the Chair of the Audit and Compliance Committee and the Chancellor.

41.01.4 Objectives

The internal audit activity evaluates and contributes to the improvement of the System’s risk management, control and governance Systems by addressing the following objectives:

1. Risk Management : Internal audit activity will assist the System by identifying and evaluating significant exposures to risk and contributing to the improvement of risk management and control Systems.
2. Control : Internal audit activity will assist the System in maintaining effective controls by evaluating their effectiveness and efficiency and by promoting continuous improvement
3. Governance : Internal audit activity will contribute to the System’s governance process by evaluating and improving the process through which values and goals are established and communicated, 1. the accomplishment of goals is monitored, 2. accountability is ensured, and 3. values are preserved.
4. The internal audit activity will evaluate risk exposures and adequacy and effectiveness of controls relating to the System’s governance, operations and information Systems regarding the
   • Reliability and integrity of financial and operational information
   • Effectiveness and efficiency of operations
   • Safeguarding of assets
   • Compliance with laws, regulations, and contracts.
5. The Department of Internal Auditing will coordinate audit efforts with those of external CPA firms and the state auditor’s office.
6. The Department of Internal Auditing will investigate reports of suspected fraud, misappropriation or other fiscal irregularities.

42.01.1 System-Wide Compliance Officer

The System-wide Compliance Officer is responsible, and will be held accountable for, apprising the Chancellor and the Audit and Compliance Committee of the institutional compliance functions and activities at each of the universities as set out in Subparagraph B, below. The System-wide Compliance Officer provides institutional compliance assistance to the Chancellor and the Vice Chancellors in the exercise of their responsibilities.

1. 1. Appointment: The System-wide Compliance Officer shall be appointed by the Chancellor. The System-wide Compliance Officer is the senior compliance official of The University of Houston System, and, as such, provides assistance and advice covering all university compliance programs, and shall hold office without fixed term, subject to the pleasure of the Chancellor.
   2. Duties and Responsibilities: The primary responsibilities of the System-wide Compliance Officer include developing an infrastructure for the effective operation of The University of Houston System Institutional Compliance Program, designed to prevent, monitor, detect and respond to non-compliance throughout the System; chairing the System Compliance Council; and developing annual risk-based compliance initiatives in light of institutional risks.

42.03.1 Framework

Each university shall establish its own policies for implementing a research security program. The policy framework for research security must address the following:

1. Achieving the highest level of compliance with applicable ethical, legal, regulatory, contractual, and system standards and requirements for securing and protecting the institution’s research portfolios, including safeguarding classified information and controlled unclassified information;
2. Promoting within the institution an organizational culture of compliance with federal requirements to ensure the institution maintains eligibility for federal funding, including requirements with foreign influence reporting, export controls, and National Security Presidential Memorandum – 33 (NSPM-33);
3. Coordinating with the System-wide Research Security Officer to address any issues at the institution associated with the goals of the research security program.

42.03.2 System-Wide Research Security Officer

The System-wide Research Security Officer shall have direct access to the Chancellor (as needed) to apprise the Chancellor of the research security functions and activities at each of the institutions as set out in Subparagraph B, below.

1. Appointment: The System-wide Research Security Officer shall be appointed by the Chancellor and shall hold office without fixed term, subject to the pleasure of the Chancellor
2. Duties and Responsibilities: The primary responsibilities of the System-wide Research Security Officer include the following:
   1. Monitoring institutional research security programs to ensure proper implementation, including but not limited to, monitoring classified information and controlled unclassified information programs, foreign influence reporting programs, export control programs, and NSPM-33 implementation;
   2. Providing research security training and export control training to relevant personnel;
   3. Serving as the point of contact for communications with federal agencies related to research security;
   4. Assisting institutions with issues associated with the goals of their research security program; and
   5. Attending the annual academic security and counter exploitation program seminar offered by Texas A&M University.

53.01.1 Acquisition of Works of Art

This policy pertains to construction projects in excess of $1,000,000 involving construction of a new building or the addition of square footage to an existing building or renovation projects greater than $5,000,000. One percent of the construction costs for new buildings may be allocated for the acquisition of art for the project. Renovation projects greater than

$5,000,000 may be subject to a 0.5% allocation for the acquisition of art for the project. Of the 1% and 0.5% allocated, the Committee may set aside sufficient funds for promotion, public programs, operations, and conservation of the public art collection. The determination of the specific amount to be set aside will be made by the Senior Vice Chancellor for Administration and Finance (or designee) based on recommendations from the Committee. The University of Houston System-wide Public Art Committee Procedures Manual, governing the administration of the public art collection, shall be submitted to the Board for approval.

Any college, foundation, corporation, or other entity wishing to contribute to new facilities, donate, participate in a joint venture, or otherwise give or create new facilities with any university must include, as part of the project cost, at least one percent of the construction cost for the commissioning, selection, and installation of art. The Board delegates to the Chancellor or their designee the authority to identify and acquire art. All works of art acquired through the process must be recommended by the University of Houston System-wide Public Art Committee in accordance with the University of Houston System-wide Public Art Committee Procedures Manual and approved by the Chancellor.

Any individual, foundation, or business entity may also wish to contribute to the System-wide Public Art Collection. If donated, such art will be reviewed according to System gift acceptance policies as well as the policies and procedures in the University of Houston System-wide Public Art Committee Operating Procedures Manual.

53.02.1 Contents

Building identification plaques shall contain the:

1. name of Texas governor at the time of approval of the project;
2. names of Chair, Vice Chair, Secretary and other members of the Board at the time of approval of the project;
3. names of the Chancellor and University President at the time of approval of the project;
4. names of architects;
5. name of general contractor;
6. year project is approved; and
7. year building construction is completed.

53.02.2 Definitions

The “time of approval” date shall be the date the Board approves the project program, budget, schedule, and schematic design.

The “completion” date shall be the date established by the certificate of substantial completion as issued by the architect and approved by the Senior Vice Chancellor for Administration and Finance.

53.02.3 Funding

Building identification plaques will be paid for from project funds.

53.03.1 The Board delegates to the Chancellor the authority to select and approve the services of architects, engineers, and general contractors for construction and renovation projects requiring Board approval and to execute appropriate contracts to secure the aforementioned services.

Upon presentation of the proposed projects to the Board, the Senior Vice Chancellor for Administration and Finance shall provide a summary of the project, which shall include a description of the procurement process to be used.

53.03.2 The Board delegates to the Chancellor, or their designee, the authority to select, approve, and execute appropriate contracts to secure the following services:

1. Architects, engineers, and general contractors for projects not requiring Board approval; and,
2. Professional services firms relating to testing, real estate, environmental issues, and HVAC Systems for all construction and renovation projects, and professional services for other projects as authorized by the Chancellor not requiring Board approval.

55.01.1 Board Approval

In an open meeting, the Board must approve:

1. Purchase, gift or acquisition of real property;
2. the sale of real property or conveyance of any interest in real property; expressly excluded are utility easements to serve one or more universities.
3. as lessee, all real estate leases, lease renewals and extensions, if the obligation of the lease is equal to or greater than $1,000,000.
4. oil and gas leases with an expected bonus exceeding $100,000.
5. banking agreements for financial institutions which serve as primary depositories for operating or investment purposes of the System or any of the universities;
6. any single procurement or revenue contract for construction, equipment, goods, and/or services, not specified above, which is expected to exceed $1,000,000;
7. any extension, modification, or renewal of an existing contract to exceed $1,000,000, or that increases the value of a contract already approved by the Board by more than 25% of the previously approved amount;
8. act as executive committee to oversee the evaluation and assessment of executive officers and any other compensation contract of $1,000,000 or more in one fiscal year;
9. any series of contracts which are initiated in the same department for the same goods or services with the same party within a fiscal year, that, if combined in one contract, would require Board approval; and
10. any other contract the Board might designate as having significant importance to require Board approval.

55.01.2 Delegation of Authority for Contracts Requiring Board Approval

1. Delegation to the Chancellor. The Chancellor shall execute all contracts approved by the Board.
2. Delegation by the Chancellor. All delegations of contracting authority shall be in writing, approved by the Chancellor, and filed with the Board. No employee, officer, or agent of the System shall have the authority to execute contracts unless delegated such authority pursuant to this policy.
3. General Counsel Review. All contracts must be reviewed and approved as to form by the Office of the General Counsel before execution. The Office of the General Counsel may approve uniform contracts which, thereafter, may be used without additional review and approval by the Office of General Counsel, as long as the standard form of agreement has not been altered. Standard form contracts requiring Board or Chancellor approval must be reviewed by the Office of General Counsel.
4. Construction Contract Review. All contracts must be reviewed and approved as to form by the Office of the General Counsel before execution. The Office of the General Counsel may approve uniform contracts which, thereafter, may be used without additional review and approval by the Office of General Counsel, as long as the standard form of agreement has not been altered. Standard form contracts requiring Board or Chancellor approval must be reviewed by the Office of General Counsel.
5. Procurement Process and ReviewThe System Purchasing Department shall conduct the procurement process for all contracts expected to be over $1,000,000, including all possible extensions, in compliance with System policies and applicable laws. The Internal Auditing Department shall review the procurement process for reasonableness and compliance with System policies and applicable laws.
6. EmergenciesIn the event of a bona fide emergency, as declared by the chairman of the Board upon consultation with the Chancellor, the Chancellor may enter into a contract that would otherwise require Board approval under this policy, provided that the Chancellor submits such contract to the Board for ratification at the next regular meeting of the Board.

55.01.3 Delegation of Authority for Contracts not Requiring Board Approval

1. Delegation to the Chancellor. The Chancellor may negotiate, execute, and administer all contracts and related necessary legal documents and instruments not requiring Board approval according to section 55.01.
2. Delegation to the Chancellor. The Chancellor may delegate the authority granted by section 55.01.3A to System administration officers or the Presidents, according to their areas of responsibility. The Chancellor may approve the further delegation of such authority by System administrative officers or the Presidents as is appropriate.
3. General Counsel Review. All contracts must be reviewed and approved as to form by the Office of General Counsel before execution. The Office of General Counsel may approve uniform contracts which, thereafter, may be used without additional review and approval by the Office of General Counsel, as long as the standard form of agreement has not been altered
4. Construction Contract Review. When the total project costs of a new construction and/or renovation project are $300,000 or less, each university shall ensure that all plans, specifications, and bidding documents are reviewed for compliance with applicable state laws prior to being released for bidding. When total project costs are greater than $300,000, the System’s office of Facilities Planning and Construction shall manage such projects, including review of all plans, specifications and bidding documents for compliance with applicable state laws prior to being released for bidding. The universities may request authority to manage a specific project over $300,000 up to $1,000,000 by submitting a request in writing detailing the scope of the project for the approval of the Vice Chancellor on a project-by-project basis. Evaluation and approval of requests will be based upon the universities expertise and ability to negotiate, review, and administer such contracts. Requests for authority to manage a project over $300,000 up to $1,000,000 by the must be received and approved before proceeding with the project.
5. Procurement ProcessThe universities Purchasing Department shall conduct the procurement process for all contracts expected to be $1,000,000 or less, including all possible extensions, in compliance with System policies and applicable laws. The Internal Auditing Department shall review the procurement process for reasonableness and compliance with System policies and applicable laws.
6. Banking Agreements for Secondary Depositories. The UHS Office of the Treasurer shall select the secondary depositories of the System and of the universities, upon the approval of the VC/VP for Administration and Finance. Secondary depositories are those financial institutions which maintain deposits temporarily until they may be transferred to a primary operating depository account. Balances in all depository accounts shall be fully secured by the FDIC. The amount on deposit shall not exceed the amount insured by the FDIC plus any collateral pledged against the account.

55.01.4 Reporting to the Board

Following the end of each fiscal year, a report shall be submitted to the Board for:

1. All payments for professional or consulting services made during the previous fiscal year from System-wide sources to a single entity that exceeded $250,000,
2. All payments for construction, equipment, goods and service contracts during the previous fiscal year from System-wide sources to a single entity that exceeded $1,000,000, and
3. All contracts that require enhanced contract or performance monitoring under Sections 2261.253, 2261.254 and 2261.255 of the Texas Government Code.

The report shall be subject to the Department of Internal Auditing’s review for compliance with the applicable laws and UHS policies. Investment agreements are not included in this reporting requirement.

55.01.5 Contract Administration

The Chancellor as Chief Executive Officer of the System, is responsible for implementing a contract administration function which is designed to ensure compliance with all applicable policies, laws and regulations and at a minimum shall:

1. Include a contract administration handbook that provides consistent contracting policies and practices and contract review procedures, including a risk analysis procedure which is subject to contract review procedures and a contract review checklist that includes:
   1. A description of each step of the procedure that each institution must use to evaluate and process contracts;
   2. A description of each process that must be completed before contract execution and;
   3. A value threshold that initiates the required review by the Office of General Counsel unless the contract is a standard contract previously approved by the Office of General Counsel
2. Require training for officers and employees authorized to execute contracts or exercise discretion in awarding contracts, including training in ethics, selection of appropriate procurement methods, and information resources purchasing technologies.

55.02.1 Applicability

1. This policy applies to all contracts that require the approval of the Board under Board Policy 55.01.
2. This policy shall not be construed as enlarging or restricting the competitive bidding requirements imposed by state or federal law or administrative rule, regulation, or order.
3. This policy shall not apply to any situation where the service or product to be contracted for is unique and/or is available from only one source or where procurement is allowed without competitive bidding standards as allowed by law.

55.02.2 Competitive Bidding Required

1. The Board will only enter into a contract when the contracting party was selected pursuant to a competitive bidding process designed to fulfill the purposes of this policy except when otherwise prohibited by law.
2. This policy does not mandate any particular form of bidding process for every contract. However, any such process must meet the following minimum requirements:
   1. when the subject matter warrants, the process should permit an objective analysis of bidding responses;
   2. the process should provide enough advance information through invitations to bid or requests for proposals so as to invite bids from as many eligible sources as practicable;
   3. when appropriate, based on subject matter, the process should invite creativity in the delivery of goods or services
   4. the process should recognize qualitative as well as quantitative comparisons of responses or proposals; and
   5. no evaluation or comparison of bids should be conducted until the time has expired for receiving all bids or requests for proposals.

55.04.1 Applicability

1. This policy applies to all purchases and procurements of goods and services for the System and its universities.
2. It is the intent of the System that the goals of this policy will apply to the hiring of subcontractors by its contractors. This intent will be reflected in bid documents and in the provisions of all contracts.
3. This policy shall not be construed as permitting variation from competitive bidding requirements as imposed by state or federal law or administrative rule, regulation, or order.

55.04.2 Definitions

1. “Historically Underutilized Business” (“HUB”) means:
   1. a for-profit corporation, sole proprietorship, partnership, joint venture or supplier contract between an applicable historically underutilized business as determined under the provisions of this Section(and Texas Government Code 2161.001(2)) and a prime contractor, with its principal place of business in this State;
   2. in which at least 51 percent of all classes of the shares of stock, other equitable securities, assets, or interests are owned by one or more persons who are economically disadvantaged because of their identification as members of certain groups, including Black Americans, Hispanic Americans, women, Asian Pacific Americans, Native Americans, and disabled veterans (as defined in the Texas Government Code 2161.001) and who have a proportionate interest and demonstrate active participation in the control, operation, and management of the business; and
   3. that is certified by the Texas Comptroller’s Office as a business enterprise meeting the above criteria.

55.04.3 Assessment

1. The System administration HUB Coordinator will report annually on HUB utilization for all UHS universities to the Chancellor or their designee.
2. Each March and September, each university’s HUB Coordinator shall submit payment, bidding, and contract information to the Texas Controller’s Office for semi-annual HUB reporting as required by the Texas Government Code 2161.121 & 2161.122
3. Each University and the System administration will develop and update, as needed, a strategic plan for increasing the use of HUB in purchasing and public works contracting as required by Texas Government Code 2161.123
4. Each University and the System administration will annually submit a State Agency Progress Report reflecting HUB performance, operational goals, and objectives by December 31, in accordance with Texas Government Code 2161.124.
5. Each University and the System administration will comply with internal recordkeeping and reporting requirements, including an annual Estimate of Expected Contract Awards (Texas Government Code 2161.183) and monthly reporting on actual HUB spend percentages (Texas Government Coe 2161.122).

56.03.1 Board Approval

The Board shall approve all fees and charges as allowed by law, or any amendment thereto, made by any University for:

1. tuition
2. student service fees;
3. general fees;
4. laboratory fees;
5. computer use fees;
6. Fgeneral property deposits;
7. Groom and board within university housing for students; and
8. parking privileges.

56.03.2 Delegation of Authority

Exclusive of those charges or fees requiring Board approval, the Chancellor may set charges or fees, or any amendment thereto. At least once each fiscal year, the Chancellor shall submit to the Board for its approval a list of such charges or fees.

56.03.3 Waivers

The Chancellor or the Presidents may waive tuition and fees or charges as allowed by law.

57.01.1 Principles

All members of the Board and all employees of the System and its universities shall adhere to the highest ethical standards of conduct reflected in state law and Board policies.

57.01.2 Code of Ethics

All members of the Board and employees of the System and its universities are expected to adhere to the System code of ethics and obey all federal, state, and local laws. Employees are subject to disciplinary action for violating the code of ethics or laws, as well as any applicable civil or criminal penalties for law violations.

All members of the Board and employees of the System and its universities shall be furnished a copy of the code of ethics and Texas Government Code Section 572.051 within three (3) business days after the start of employment or commencement of service and shall receive regular training on such laws and policies.

All members of the Board shall annually sign conflict of interest certification statements affirming their compliance with their official oath and specific provisions of Texas statutes related to ethical behavior.

1. General Standards of Conduct
   1. No Board member or employee shall accept or solicit any gift, favor, or service that might reasonably tend to influence them in the discharge of official duties or that they know or should know is being offered with the intent to influence their official conduct.
   2. No Board member or employee shall use their position to secure special privileges or exemptions for themselves or others, except as is allowed by law.
   3. No Board member or employee shall accept other employment or compensation that could reasonably be expected to impair their independence of judgment in the performance of their official duties.
   4. No Board member or employee shall intentionally or knowingly solicit, accept, or agree to accept any benefit for having exercised their official powers or performed their official duties in favor of another.
   5. No Board member or employee who exercises discretion in connection with contracts, purchases, payments, claims, or other pecuniary transactions shall solicit, accept, or agree to accept any benefit from a person or entity the employee knows or should know is or is likely to become financially interested in such transactions.
   6. No Board member or employee shall receive any compensation for their services to the System from any source other than the State of Texas except as is allowed by law.
   7. No Board member or employee shall accept other employment or engage in any business or professional activity that foreseeably might require or induce them to disclose confidential information acquired by reason of their official position.
   8. No Board member or employee shall disclose without authorization confidential information gained by reason of their official position, nor shall they otherwise use such information for their personal gain or benefit.
   9. No Board member or employee shall engage in any form of sexual harassment as stated in Board policy 29.02 and System and University policies.
2. Conflict of Interest – Board members/Employees
   1. No Board member or employee shall make personal investments in any enterprise that foreseeably might create a substantial conflict between their private interests and the System’s interests.
   2. No Board member or employee shall transact any business for the System with any entity of which they are an officer, agent, employee, or member, or in which they have a direct or indirect financial or other interest.
   3. No Board member or employee shall act as an agent for another person in the negotiation of the terms of an agreement relating to the provision of money, services, or property to the System or any of its universities.
3. Conflict of Interest – employees
   1. Any employee involved in procurement or contract management shall disclose in the manner specified in the System policy any potential conflict of interest that is known by the Board member or employee with respect to any contract with a private vendor or bid for the purchase of goods or services from a private vendor with the University.
   2. No employee shall have a direct or indirect financial or other interest, shall engage in a business transaction or professional activity, or shall incur any obligation that is in substantial conflict with the proper discharge of the employee’s duties and responsibilities to the System.
   3. The University shall not accept a gift, grant, donation, or other consideration to be used as a salary supplement without the prior written approval of the proposed recipient's immediate supervisor, the Dean or Vice President overseeing the college or division employing the proposed recipient, the Vice Chancellor for Legal Affairs/General Counsel, the President, and the Chief Audit Executive.
4. Conflict of Commitment. No employee's activities outside the System shall interferewith their duties and responsibilities to the System.
5. Use of University Resources. The resources of the University shall be used only in accordance with university policies and applicable law.
6. Outside Activities

   Full-time exempt employees may engage in outside professional activities, provided such activities benefit the System and/or contribute to the professional development of the individual.

   This privilege is subject in all instances to the conditions set forth below. Failure to comply with this policy may subject an employee to disciplinary action including reprimand, suspension, or termination.

   1. The first responsibility of the individual is to the System, and outside professional commitments must not interfere with the employee’s full-time responsibility to the System.
   2. No outside obligation should result in any conflict of interest or conflict of commitment involving the individual’s duties and responsibilities to the System or to its programs, policies, and objectives. Outside activities that represent actual or potential conflicts of interest or commitment must be avoided.
   3. Use of System facilities, space, equipment, or support staff for outside activities is permitted only if a financial arrangement has been concluded between the individual and the administration prior to the individual beginning the outside activity.
   4. Individuals may not represent themselves as acting in the capacity of System employees when conducting outside activities. The System bears no responsibility for any actual or implied obligations or liabilities incurred by the individual resulting from an outside activity.
   5. Full-time exempt employees who wish to arrange outside activities must obtain prior written approval under the process established by the Chancellor. Review of such activities will include consideration of any real or apparent conflict of interest or conflict of commitment and the benefit of the proposed service to the System and the University and/or the professional development of the employee. Each full-time exempt employee who engages in an outside professional activity, including teaching on a temporary basis at other institutions, must ensure that such activities generally be not more than 8 hours per calendar week, and in no event exceed a maximum of 32 hours per month and must arrange such activities so as not to interfere with their System obligations, such as regularly scheduled classes.
   6. When any of an individual’s salary is paid from funds for externally sponsored activities, the time allowable for outside activities must comply with sponsor requirements.

   The Chancellor will establish a process for monitoring outside activities of full-time exempt employees, including but not limited to compensated employment and board service, to ensure that such activities are consistent with the above policy.

7. Outside Employment or Appointments of Executive Officers

   The Chancellor and Executive Officers of the System Administration and the Presidents and Vice Presidents of the Universities may become members of a Board of Directors, Trustees, Regents, or of a corporation or institution’s Governing Body by whatever name, if the position: 1) is of benefit to the state or is required by state or federal law, and 2) creates no conflict of interest or conflict of commitment. Such service will usually be deemed to be in the best interest of the University of Houston System. Approval procedures for these positions will be as follows:

   1. The Board should be informed of a non-compensated appointment of the Chancellor or a President of any institution, including a statement that the appointment meets the two requirements stated above.
   2. Prior to the Chancellor or a President accepting an invitation to serve in an additional position that includes compensation greater than $25,000. The Board must approve this appointment and must also make an official record of the compensation, including salary, bonus, per diem or other types of compensation. The Board should be informed of appointments to compensated Boards below the $25,000 threshold.
   3. Compensation is defined as remuneration for services rendered and does not include reimbursement of expenses whether by direct reimbursement or per diem.
   4. The Board delegates to the Chancellor the authority to approve outside employment or appointments for the Vice-Chancellors of the system and each President is delegated the authority to approve for their Vice-Presidents, in compliance with the requirements stated above.

57.01.3 Dual Office Holding

The Board must give its approval before the Chancellor or a President of any university may hold other non-elective state or federal office. Approval must include formal findings that the dual office holding is of benefit to the state or required by state or federal law and creates no conflict of interest or conflict of commitment.

57.01.4 Nepotism

Members of the Board shall not appoint, confirm the appointment of, or vote for the appointment or confirmation of their relative or another Board member’s relative to a position with the System unless the individual was continuously employed in the position for at least 30 days immediately before the appointment of the Board member to whom the individual is related. If this exception applies, the board member to whom the individual is related may not participate in any deliberation or voting on the appointment, reappointment, confirmation, employment, reemployment, change in status, compensation, or dismissal of the individual if that action applies only to the individual.

System employees shall not hire, appoint, reappoint, promote, or supervise their relative and shall not recommend, approve, or otherwise act with regard to the hiring, appointment, reappointment, salary, promotion, or supervision of their relative. Relatives shall not be employed in the supervisory-subordinate relationship even if it results from marriage after the employment relationship was formed. The provisions of this policy apply to all System programs regardless of funding source.

For the purposes of this policy, the term “relative” is defined as anyone related to the Board member or employee within the third degree of consanguinity (i.e., parent, grandparent, great grandparent, brother, sister, half brothers and sisters, child, grandchild, great grandchild, aunt, uncle, niece, and nephew) and within the second degree of affinity (i.e., spouse, spouse’s parent, spouse’s grandparent, spouse’s sibling, spouse’s child, spouse’s grandchild, parent’s spouse, grandparent’s spouse, sibling’s spouse, child’s spouse, and grandchild’s spouse).

57.10.1 Executive management employees include persons serving in the following positions: Chancellor, Vice Chancellor, General Counsel, President, Vice President, Dean (Academic), Chief Audit Executive, and their equivalents (e.g., an administrative head of a recognized department reporting directly to the Chancellor or President).

57.10.2 Executive management employment agreements will contain the following elements, where applicable: Period of Service, Base Salary, Benefits, Deferred Compensation, Perquisites, Separation, Appointments of Tenured Faculty Members, and Performance Incentives.

57.10.3 For those executive management employees who also hold tenured faculty positions, the following additional provisions apply:

1. The determination of the administrative rate to be paid to an executive management employee is based on the traditional criteria of scope of responsibility, marketplace, and individual qualifications, provided, however, that the rate falls within the salary range paid to individuals holding comparable positions at similar institutions. In addition to the administrative rate, an academic rate is also determined for a tenured faculty member who serves in an executive management position, to be used as the original basis for establishing the salary of the individual at the time they return to their regular faculty position. This academic rate is based on an assessment of current salary rates for comparably ranked faculty in the faculty member’s discipline and the relative qualifications of the faculty member within that discipline. Though the academic rate is initially set at the time of the appointment to the executive management position, it is subject to adjustment based on the length of time the individual serves in the executive management position, and will reflect an increment not less than the average increment of the faculty members in their discipline and at their rank.
2. If provided in the employment agreement, a tenured faculty member may be eligible for a paid leave assignment for a period of up to one year in order to prepare to return to academic duties. The duration of the paid leave assignment should be reasonably related to the length of time that the individual has served in administrative position(s) and therefore removed from normal academic responsibilities. Eligibility for the paid leave assignment is contingent upon an expressed intention to resume academic duties and is grounded in recognition of the need to support an individual during the time they are retooling for the purpose of returning to faculty duties. A faculty member terminated for cause from an executive management position is not eligible for a paid leave assignment. If a faculty member accepts other employment during the period of the paid leave assignment, all salary entitlement will cease.

57.10.4 This policy is effective for all appointments made to executive management positions after the time of approval of the policy, June 20, 1996.

58.02.1 Code of Ethics

Financial advisors and service providers under contract with the University of Houston System shall:

1. act with integrity, competence, diligence, respect, and in an ethical manner with the public, clients, prospective clients, employers, employees, and colleagues in the investment profession, and other participants in the global capital markets;
2. use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, and engaging in other professional activities;
3. practice, and encourage others to practice, in a professional and ethical manner that will reflect credit on themselves and the profession;
4. promote the integrity and viability of the global capital markets for the ultimate benefit of society;
5. maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals; and
6. place the interest of clients, the interest of their employer, and the integrity of the investment profession above their own personal interest.

58.02.2 Standards of Professional Conduct

Financial advisors and service providers under contract with the University of Houston System:

1. must understand and comply with all applicable laws, rules, and regulations of any government agency, regulatory organization, licensing agency, or professional association governing their professional activities;
2. must not knowingly participate or assist in, any violation of such laws, rules, or regulations;
3. must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities;
4. must not offer, solicit, or accept any gift, benefit, compensation, or consideration that could be reasonably expected to compromise their own or another’s independence and objectivity;
5. must not make any statements that misrepresents facts relating to investment analysis, recommendations, actions, or other professional activities;
6. must not engage in any professional conduct involving dishonesty, fraud, deceit, or commit any act that reflects adversely on their integrity, trustworthiness, or professional competence;
7. must exercise due diligence, independence, and thoroughness in conducting investment analysis, making investment recommendations, and taking investment actions; and
8. must have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, and action.

58.02.01The above standards of conduct are derived from the Association for Investment Management and Research code of ethics and standards of professional conduct.

71.03.1 Investment Management

All endowment and alternative investment portfolios are managed by the System’s external investment managers; real property holdings may be externally managed or managed internally by the Vice Chancellor for administration and finance. All investments are managed in accordance with the Endowment Fund Statement of Investment Objectives and Policies approved by the Board. The Endowment Fund Statement of Investment Objectives and Policies is on file in the Board of Regents office and on the Treasury website.

72.01.1 Local Funds

The treasurer or an external investment manager approved by the Board shall invest all local funds in accordance with Investment Policy for Non-Endowed Funds approved by the Board. All demand deposits shall be collateralized as required by law. Longer-term funds shall be invested to ensure the safety of principal, liquidity, and maximum yield with primary emphasis on safety and liquidity.

72.01.2 Bond-Related Funds

Proceeds from the issuance of bonds and revenues designated for debt repayment are invested in accordance with bond resolution investment instructions. Bond-related funds are managed by the treasurer.