Section VI - ADMINISTRATION AND STRATEGIC PLANNING

November 26, 2007

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51 REAL ESTATE

51.01 Acquisition and Sale of Property

The acquisition and sale of all real property shall be approved by the board in compliance with Policy 57.01 with at least (2) appraisals in demonstrating fair market value. Real property with a fair market value of less than $50,000 may be demonstrated by approved documentation other than by appraisal. All acquisitions and sales of real property shall be by an approved purchase agreement and special warranty deed in transferring title, including appropriate qualifying language. All documentation must be reviewed and approved by the Office of the General Counsel. (05/17/07)

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52 PROPERTY

52.01 Abandoned and Unclaimed Personal Property

The board delegates to the chancellor the authority and responsibility for the safekeeping and appropriate disposition of unclaimed or abandoned personal property found on university grounds. Disposition of abandoned or unclaimed property shall be in accordance with state statutes. (05/17/07)

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53 FACILITIES

53.01 Works of Art

The Systemwide Art Acquisition Committee (SWAAC) shall provide art acquisition services for the administration. The Committee shall be appointed by the board according to guidelines noted in the SWAAC procedures manual.

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. One percent of the construction costs shall be allocated for the acquisition of art for the project. Of the 1% allocated, up to 10% may be set aside for the operating budget supporting the Systemwide Art Acquisition Committee (SWAAC). The determination will be made by the vice chancellor for administration and finance in consultation with the chancellor.

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 component of the system 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 his or her designee the authority to identify and acquire art. All works of art acquired through the process must be recommended by the SWAAC in accordance with the SWAAC Procedures Manual approved by the chancellor. (05/17/07)

53.02 Building Identification Plaques

Building identification plaques shall be placed in all new buildings constructed by the system.

53.02.1 Contents

Building identification plaques shall contain:

A. the name of Texas governor at the time of approval of the project;

B. the names of chair, vice chair, secretary and other members of the board at the time of approval of the project;

C. the names of the chancellor and component university president at the time of approval of the project;

D. the names of architects;

E. the name of general contractor;

F. the year project is approved; and

G. the 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 vice chancellor for administration and finance.

53.02.3 Funding

Building identification plaques will be paid for from project funds.(05/17/07)

53.03 Selection and Approval of Professional Services and General Contractors

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.

Two weeks prior to the preparation of a selection list for an architect or engineering firm, the vice chancellor for administration and finance will provide the board with information about the proposed project. This information will include qualification criteria to be used in evaluating firms for the designated project, a time line for the selection process and other information as is appropriate in the circumstances. Board members may provide suggestions about firms they believe should be considered. The vice chancellor for administration and finance will provide the chancellor with a recommended firm.

53.03.2 The board delegates to the chancellor, or his or her designee, the authority to select, approve, and execute appropriate contracts to secure the following services:

Architects, engineers and general contractors for projects not requiring board approval; and,

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. (05/17/07)

53.04 Approval of Construction Projects

The vice chancellor for administration and finance shall present for approval to the board projects for new construction or major repair and rehabilitation of buildings and facilities when the total cost is equal to or greater than the submittal threshold requiring Texas Higher Education Coordinating Board action. In such cases, the board will be presented with the project, budget, schedule and, if applicable, a program and schematic design. Once a project is approved by The Higher Education Coordinating Board, the board delegates to the chancellor the authority to negotiate and execute all appropriate contracts and easements required to accomplish the project provided it is within the approved scope and budget of the project. (05/17/07)

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54 GROUNDS

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55 FINANCE

55.01 Contracts

No person has the authority to bind the system contractually except in accordance with this policy.

55.01.1 Board Approval

In an open meeting, the board must approve:

A. contracts for the purchase, gift or acquisition of real property;

B. contracts for the sale of real property or conveyance of any rights in real property;

C. as lessee, all real estate leases, lease renewals and extension, if the obligation of the lease is equal to or greater than the submittal threshold requiring Texas Higher Education Coordinating Board action.

D. banking and investment agreements;

E. any single procurement contract for any equipment, goods and services, not specified above, which is expected to exceed $1,000,000 in a fiscal year with exception of contracts that fall within and are apart of approved construction projects set forth in Section 55.04;

F. any extension, modification, or renewal of an existing contract which is expected to exceed $1,000,000 in a fiscal year;

G. 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 or reporting;

H. 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

A. Delegation to the Chancellor. The chancellor shall execute all contracts approved by the board.

B. 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.

C. 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 the General Counsel if no changes or alterations have been made to the contract or those that require board approval.

D. Construction Contract Review. The system office of Facilities and Planning shall review all plans, specifications and bidding documents for compliance with applicable state laws governing their areas of responsibility prior to being released for bidding.

E. Emergencies. In 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

A. 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 57.01.

B. Delegation by the Chancellor. The chancellor may delegate the authority granted by section 57.01.3A 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.

C. 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 if no changes or alterations have been made to the contract.

D. Construction Contract Review. When total project costs of a new construction and/or renovation project are $300,000 or less, each component 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.

55.01.4 Reporting to the Board

Following the end of each fiscal year, a report shall be submitted to the board listing all professional service or consulting contracts where total compensation from systemwide sources to a single entity exceeded $250,000 during the fiscal year. (05/17/07)

55.02 Competitive Bidding

The purpose of this policy is to achieve efficiency in the expenditure of system funds for goods and services, to prevent favoritism or the appearance of favoritism, to secure the best goods and services at the lowest practical cost, and to stimulate competition.

55.02.1 Applicability

A. This policy applies to all contracts that require the approval of the board under Board Policy 57.01.

B. 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.

C. 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

A. 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.

B. 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 a reasonably 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.

C. The board shall have the authority to reject nonresponsive bids or proposals, or to reject all bids or proposals. However, the board may, in its sole discretion, waive deficiencies in bidding that do not have a material impact on the overall fairness of the process.

D. The board is not obligated to contract with the lowest bidder, but rather with the most appropriate bidder given the totality of the system's needs. (05/17/07)

55.03 Travel Reimbursement

The board delegates to the chancellor or his or her designee the authority to approve all travel reimbursements from appropriated or other funds. All such reimbursements must be in compliance with the rules and regulations set out in state law.

The Texas Education Code allows the University of Houston System to pay for the regents' actual expenses, including travel expenses, incurred in attending the work of the board subject to the approval of the board chair. Any incremental travel expenses incurred by the University of Houston System or by a board member on behalf of a board member's spouse, dependents or guests, in attending the work of the board, are the sole responsibility of the board member. (05/17/07)

55.04 Historically Underutilized Businesses

The board adopts the following policy to comply fully with the letter and the spirit of Chapter 2161 of the Texas Government Code, and the applicable provisions of the current Appropriations Act. The board pledges to:

a) reaffirm the system's commitment to the principles of equal opportunity for all businesses and to act affirmatively to increase the participation of historically underutilized businesses in the system's procurement processes;

b) encourage participation in procurement from historically underutilized businesses;

c) foster further expansion and development of historically underutilized businesses;

d) actively assist historically underutilized businesses in Texas, particularly in the areas served by the various component universities, in becoming familiar with the procurement processes of the system;

e) support growth and new business opportunities in the areas served by the system, thereby promoting the economic development of the state;

f) expand the number of suppliers and contractors seeking to provide goods and services to the system, thereby encouraging competition, with the ultimate goal of improving quality and economy of goods and services purchased by the system;

g) support and encourage the improvement of business conditions encountered by historically underutilized businesses; and

h) heighten awareness throughout the system and the communities served by the system, of the capabilities and needs of historically underutilized businesses that can provide goods and services for the system.

55.04.1 Applicability

A. This policy applies to all purchases and procurements of goods and services for the system and its component universities.

B. 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.

C. 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

A. "Historically under-utilized business" means:

1. a for-profit corporation, sole proprietorship, partnership, joint venture or supplier contract between an economically disadvantaged business with principal place of business in this State, and a prime contractor;

2. designated by the State Purchasing and General Services Commission; and

3. in which at least 51 percent of all classes of the shares of stock or other equitable securities 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, and Native Americans, who have suffered the effect of discriminatory practices or similar insidious circumstances over which they have no control and who have a proportionate interest and demonstrate active participation in the control, operation, and management of the corporation's affairs.

The General Services Commission will certify a business enterprise meeting the above criteria.

55.04.3 Assessment

A. Each component university and the designated person for the system administration will report annually to the chancellor or his or her designee on purchases and contracts with historically underutilized businesses.

B. Each March and September the chancellor or his or her designee shall report on the purchases and contracts awarded to historically underutilized businesses and all non-treasury funds spent with historically underutilized businesses for the previous six month period to the General Services Commission as required by the Texas Government Code.

C. Each component university and the system administration will include in its strategic plan, a plan for increasing the use of historically underutilized businesses in purchasing and construction contracting as required by the Texas Government Code.(05/17/07)

55.05 Reduction in Asset Valuations

All reductions in asset valuations on the accounting records of the University of Houston System, including but not limited to accounts receivable, notes receivable, inventory, and capital assets, must be approved by the Board of Regents. (05/17/07)

55.06 Higher Education Assistance Fund (HEAF)

According to Article VII, Section 17 of the Texas Constitution, the Texas Legislature makes appropriations from the Higher Education Assistance Fund (HEAF) to the Boards of Regents of institutions of higher education, including the Board of Regents of the University of Houston System. The board is responsible for authorizing HEAF expenditures by system components based on the chancellor's recommendation.

The chancellor is responsible for recommending HEAF expenditures to the board based on systemwide priorities. The presidents are responsible for recommending university HEAF priorities to the chancellor, based on plans that identify the need to acquire land; to construct and equip buildings; to rehabilitate or make major repairs to buildings and facilities; to acquire capital equipment; and to acquire library books or other library materials. HEAF allocations are recommended annually during the budget process. (05/17/07)

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56 FEES

56.01 Concurrent Enrollment Fees

It is the policy of the board to avoid undue economic hardship caused by the duplication of mandatory fees on students enrolled in two or more component universities. Subject to the limitations and conditions established by state law, such students may apply for and receive waivers or reductions of building use fees and student service fees under the regulations and procedures established by the system. (05/17/07)

56.02 Fees For Continuing Education Courses

In accordance with Section 54.545 of the Texas Education Code, the board delegates authority to the chancellor, or his/her designee, to set fees for each continuing education course at each institution in an amount sufficient to permit the institution to recover the costs of providing the course. Fees will be charged only for a course for which the institution does not collect tuition or receive formula funding, including an extension course, correspondence course, or other self-supporting course. Information regarding fees charged for continuing education courses shall be on file at each institution in the office of the president. (05/17/07)

56.03 Approval of Tuition, Fees and Other Charges

Tuition, fees, or other charges to students, faculty, staff, and the general public at any component university of the system shall be established or changed only in accordance with this policy.

56.03.1 Board Approval

The board shall approve all fees and charges as allowed by law, or any amendment thereto, made by any component university for:

A. tuition;

B. student service fees;

C. general fees;

D. laboratory fees;

E. computer use fees;

F. general property deposits;

G. room and board within university housing for students; and

H. 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 fees or charges as allowed by law. (05/17/07)

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57 PERSONNEL

57.01 Code of Ethics

57.01.1 All members of the board and all employees of the system and its component institutions shall adhere to the highest ethical standards of conduct reflected in state law and board policies.

57.01.2 The system code of ethics is comprised of the following components:

A. Statutory Standards of Conduct for State Employees, Section 572.051, Texas Government Code;

B. the following board policies:

a) Academic Freedom (21.03)

b) Sexual Harassment (29.02)

c) Governmental Appearances (81.01)

d) Consulting and Paid Professional Service (57.02)

e) Dual Employment (57.04)

f) Nepotism (57.07)

g) Conflicts of Interest (57.08)

57.01.3 All members of the board and employees of the system and its component institutions shall be furnished a copy of the laws and policies comprising the code of ethics at the time of employment or commencement of service and at the start of each academic year. (05/17/07)

57.02 Consulting and Paid Professional Service

Full-time members of the faculty and professional or administrative staff may engage in external consultation or other paid professional services, provided such activities benefit the system and 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.

57.02.1 The first responsibility of the individual is to the system, and outside professional commitments should not interfere with the person's full-time responsibility to the system.

57.02.2 No outside obligation should result in any conflict of interest involving the individual's responsibilities to the system or to its programs, policies, and objectives. Consulting and other professional agreements that represent actual or potential conflicts of interest must be avoided.

57.02.3 Use of system facilities, space, equipment, or support staff for consulting or other paid professional activities is permitted only if a financial arrangement has been concluded between the individual and the administration prior to the employee's beginning the outside consulting or other paid professional service.

57.02.4 Individuals may not represent themselves as acting in the capacity of system employees when conducting consulting or other paid professional activities. The system bears no responsibility for any actual or implied obligations or liabilities incurred by the individual resulting from a consulting or other paid professional agreement or activity.

57.02.5 Faculty who wish to arrange consulting or other paid professional activities must provide prior written notification to their dean. Review by their dean of such activities will include consideration of any real or apparent conflict of interest and the benefit of the proposed service to the system and the component university. Each faculty member who engages in consulting or other paid professional service, including teaching on a temporary basis at other institutions, must ensure that such activities do not require commitments of time averaging more than one day per calendar week, and must arrange such activities so as not to interfere with regularly scheduled classes.

57.02.6 Professional or administrative staff who wish to arrange consulting or other paid professional activities must obtain prior written approval from the appropriate supervisor. While consulting is a recognized aspect of faculty activities with the limitations noted in this document, consulting by professional or administrative staff must be justified on an individual basis by clear and direct benefit to the system.

57.02.7 When any of an individual's salary is paid from funds for externally sponsored activities, the time allowable for consultation or other paid professional activities must comply with sponsor requirements.

Unpaid public service is not included in this policy, nor are occasional lectures that include fees, unless these activities require significant amounts of time or otherwise conflict with regular system obligations.

Each president and the chancellor will establish a process for monitoring outside paid professional activities of their faculty and staff in order to ensure that such activities are consistent with the above policy and also serve system purposes. The chancellor will report to the board annually on such activities. (05/17/07)

57.03 Equal Employment Opportunity

The University of Houston System shall provide equal opportunity for employment to all persons regardless of race, color, religion, sex, national origin, disability, age, or veteran status, and shall strive to achieve full and equal employment opportunity throughout the system for faculty and staff employees. (05/17/07)

57.04 Dual Employment

The board must give its approval before any officer of the system or its component institutions may hold other nonelective state or federal office or position of honor, trust, or profit. 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. The board delegates to the Chancellor the authority to approve such dual office holding by any system employee who is not an officer of the system or its component institutions. (05/17/07)

57.05 Outside Employment of General Officers

The chancellor and officers of the system administration and the presidents and vice presidents of the component universities shall not become members of any board of directors, trustees, regents, or of any corporation or institution's governing body by whatever name except with the specific prior approval of the board. (05/17/07)

57.06 Leaves of Absence

The board delegates to the chancellor or his or her designee the authority to grant extended leaves of absence to employees of the system. Leaves may be granted for such purposes as research and writing, education, other personal development, or extended illness, according to system guidelines. Leaves will be limited in duration to twelve months. (05/17/07)

57.07 Nepotism

Relatives of members of the board shall not be employed by the system unless the employment took place at least one year prior to the appointment of the board member. Relatives of other system employees shall not be employed by the system in positions where the employee has the official authority to hire or recommend or approve the hiring, salary, or promotions of the 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 employee within the second degree of affinity or the third degree of consanguinity and includes the employee's spouse and the employee's or the spouses' parents, grandparents, great grandparents, brothers, sisters, half brothers and sisters, children, grandchildren, great grandchildren, aunts, uncles, nieces, nephews, first cousins, second cousins, and persons married to them. (11/26/07)

57.08 Conflicts of Interest

All members of the board and employees of the system and its component institutions shall adhere to and be furnished a copy of the Statutory Standards of Conduct for State Employees, Section 572.051, Texas Government Code, and shall avoid conflicts of interest, generally described as the use of one's university employment or position to obtain unauthorized privileges, benefits, or things of value for oneself or others, including the following:

57.08.1 No board member or employee shall solicit, engage, or agree to accept any privilege, benefit or thing of value for the exercise of his or her discretion, influence, or powers as an employee or regent, except as is allowed by law.

57.08.2 No board member or employee shall accept any privilege, benefit, or thing of value that might influence him or her in the discharge of his or her duties as an employee or regent.

57.08.3 No board member or employee shall use his or her position to secure special privileges or exemptions for himself or herself or others, except as is allowed by law.

57.08.4 No board member or employee may be an officer, agent, employee, or member of, or own an interest in a professional activity that foreseeably might require or induce him or her to disclose confidential information acquired by reason of his or her system position.

57.08.5 No board member or employee shall accept employment or engage in any business or professional activity that foreseeably might require or induce him or her to disclose confidential information acquired by reason of his or her system position.

57.08.6 No board member or employee shall disclose confidential information gained by reason of his or her system position, nor shall he or she otherwise use such information for his or her personal gain or benefit.

57.08.7 No board member or employee shall transact any business for the system with any entity of which he or she is an officer, agent, employee, or member, or in which he or she owns a significant interest.

57.08.8 No board member or employee shall make personal investments in any enterprise that foreseeably might create a substantial conflict between his or her private interests and the system's interests.

57.08.9 No board member or employee shall accept other employment that might impair his or her independence of judgment in the performance of his or her system duties.

57.08.10 No board member or employee shall receive any compensation for his or her services to the system from any source other than the State of Texas except as is allowed by law.

57.08.11 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.

Failure of any employee to comply with the foregoing shall constitute grounds for discharge or other disciplinary action. (05/17/07)

57.09 Sick Leave Pool

The board delegates to the chancellor the authority and responsibility to adopt and implement a program within the system to allow employees voluntarily to transfer sick leave time earned by the employee to a sick leave pool, administered by the chancellor or his or her designee, for the benefit of eligible employees suffering from catastrophic illnesses or injuries. The chancellor shall not be eligible to participate in the sick leave pool. (05/17/07)

57.10 Executive Management Employees

All executive management employee appointments shall be approved by the board upon the recommendation of the chancellor. The board delegates to the chancellor, or his/her designee, the authority to approve all other faculty, professional, and administrative actions. Executive management employees are considered administrative employees, and conditions of service are governed by policies relating to administrative employees.

57.10.1 Executive management employees include persons serving in the following positions: Chancellor, Vice Chancellor, General Counsel, President, Vice President, Dean (Academic), Director of Internal Auditing, 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:

A. 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 he/she returns to his/her 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 his/her discipline and at his/her rank.

B. 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 he/she is 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. (05/17/07)

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58 Financial Advisors and Service Providers

58.01 Disclosure

Financial advisors and service providers which include a person or business entity who acts as a financial advisor, financial consultant, money or investment manager or broker shall comply with the disclosure requirements contained in Texas Government Code Section 2263.005. Financial Advisors and service providers must:

a) make full and fair disclosure of all matters that could reasonably be expected to impair their independence and objectivity or interfere with their respective duties to the University of Houston System; and

b) on an annual basis, communicate the relevant information using the Texas State Auditor's Office Uniform Disclosure Form. (05/17/07)

58.02 Standards of Conduct for Financial Advisors and Service Providers

58.02.1 Code of Ethics

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

A. 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;

B. use reasonable care and exercise independent professional judgment when conducting investment analysis, making investment recommendations, taking investment actions, or engaging in other professional activities;

C. practice, and encourage others to practice, in a professional and ethical manner that will reflect credit on themselves and the profession;

D. maintain and improve their professional competence and strive to maintain and improve the competence of other investment professionals; and

E. 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:

A. 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;

B. must not knowingly participate or assist in, any violation of such laws, rules, or regulations;

C. must use reasonable care and judgment to achieve and maintain independence and objectivity in their professional activities;

D. 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;

E. must not make any statements that misrepresents facts relating to investment analysis, recommendations, actions, or other professional activities;

F. 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;

G. must exercise due diligence, independence, and thoroughness in conducting investment analysis, making investment recommendations, and taking investment actions; and

H. must have a reasonable and adequate basis, supported by appropriate research and investigation, for any investment analysis, recommendation, and action.

58.02.03 The above standards of conduct are derived from the Association for Investment Management and Research code of ethics and standards of professional conduct. (05/17/07)

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69 ADMINISTRATION AND STRATEGIC PLANNING MISCELLANEOUS