31.05.01.R0.01 Outside Employment and Consulting Activities of Faculty

Effective: September 1, 1996

Supplements System Policy 31.05 and 31-05-01

1. Definition of Terms.
   1. External professional consultation includes intermittent activities for which payment may be received in addition to university salary and which involves advice or assistance based on an individual's expertise in the teaching or professional field.
   2. Contract research includes the conduct of activities in cooperation with an external agency in which the employee is paid a portion of the regular University contracted salary by the external agency for a period of time. A reduction of teaching load is usually involved and the university is reimbursed for the use of utilities, supplies, materials, space and equipment. Contract research will usually be entered into and administered by the university, but will be proposed or instigated by the employee or the outside agency.
   3. Contract consultation includes the utilization of university personnel for advice, assistance, or teaching by an outside agency in which University facilities, equipment, material, space or supplies are utilized. This type of consultation could include computer analyses of data or teaching outside agency personnel with or without credit. The university would be compensated for a portion of the employee's university contracted salary and the teaching load would be reduced commensurately. Overhead expenses would also be paid by the contractor, if appropriate.
2. External business activities, as with any other free-time pursuit, shall not cause the employee to be away from campus during the employee's working hours. Working hours will be determined by mutual agreement between the employee and the department or division head and will be subject to approval by the vice president for academic affairs. These activities shall not interfere with regularly assigned duties. External business activities include activities entered into by the employee as a source of income. Sales, farming and ranching, real estate investment and management, private business, merchandising, and private clinics or consultation practices are examples.
3. External consulting is authorized provided that:
   1. There is no interference with proper performance of the regular duties of the employee and professional consultation does not exceed 15 days of university time in a fiscal year. The duration of any single consultation period must be of a reasonable length of time. In all cases, the request should be submitted in accord with university procedures for absence from duty.
   2. There is no conflict with the interests of, nor unfavorable reflection upon, the university and/or the State of Texas. No materials, supplies or equipment belonging to the university are used without compensation to the university.
   3. It is clearly understood that the employee is acting as an individual and not as an agent of the university.
4. Contract research and contract consultation in which an employee's workload is reduced and the grantor agrees to pay the salary of the grantee for the proportional workload reduction is permitted provided that:
5. The university is reimbursed through "overhead funds" for the use of facilities, space, materials, supplies and equipment.
6. The contract funding is administered through the university Fiscal Office.
7. University funds shall not be expended for payment of salary to any person who directly receives funding from a grant or consulting contract in an amount equal to the grant or consulting contract. All such grants and contracts must be administered by the university.
8. No regular teaching responsibilities with another institution of higher education may be accepted without prior written approval from the vice president for academic affairs and/or President.
9. The department or division head is directed to file, through appropriate channels to the President, a report for each employee's external professional consulting activity, external business activity, and contract research or consultation grants annually by May 31. The department head is responsible for enforcement of items 2 and 3, above.
10. External professional consulting by any employee which would exceed 15 days of university time during any one fiscal year must receive the specific approval of the President after submission of a request through appropriate channels.

References: Prior Policy V C 2.1 and D-39 approved January 19, 1990; Procedure A31.01

Contact for Interpretation: Provost and Vice President for Academic Affairs