1995-96                    UNIVERSITY OF MINNESOTA                       No. 1
                            FACULTY SENATE MINUTES

                              NOVEMBER 16, 1995

      The first meeting of the Faculty Senate for 1995-96 was convened in the 
Whiting Proscenium Theater, Rarig Center, Minneapolis campus, on Thursday, 
November 16, 1995, at 12:50 p.m.  Checking or signing the roll as present were 
124 voting faculty members, 6 ex officio members, and 7 nonmembers.  Professor 
Roberta Humphreys, Faculty Senate Vice Chair, presided.

                             I. MEETING SCHEDULE
                                 Information

      Other 1995-96 meetings of the Faculty Senate are scheduled as follows:

                           Thursday, February 15, 1996
                            Thursday, April 18, 1996
                             Thursday, May 16, 1996



           II. ADMINISTRATIVE RESPONSE TO FACULTY SENATE ACTIONS
                                Information

      A.      Addendum to the Faculty Workload Task Force Report
              Approved by:          the Faculty Senate on April 20, 1995
                                    the Administration on June 19, 1995
                                    the Board of Regents - no action required


      B.      Interpretation of Sections 3-9 of the Regulations Concerning 
              Faculty Tenure re Promotion and Tenure Decisions at the 
              Provostal and Chancellor Level
              Approved by:          the Faculty Senate on June 8, 1995
                                    the Administration on June 19, 1995
                                    the Board of Regents on October 13, 1995

      C.      Amendment of Sections 14.1 and 14.2 (including an 
              Interpretation) of the Regulations Concerning Faculty Tenure re 
              Timely Responses in Cases of  Unrequested Leave of Absence, 
              Termination or Suspension
              Approved by:         the Faculty Senate on May 19, 1994 
                                   (amendments) and June 8, 1995 
                                   (interpretation)
                                   the Administration on June 19, 1995
                                   the Board of Regents on October 13, 1995

      D.      Interpretation of Sections 14 and 15 of the Regulations 
              Concerning Faculty Tenure re Clarification of the Term "Days"
              Approved by:         the Faculty Senate on June 8, 1995
                                   the Administration on June 19, 1995
                                   the Board of Regents on October 13, 1995


           ------------------------------------------------------
                               CONSENT AGENDA
                                   Action

      Agenda Items III. through V. are considered to be noncontroverial or 
"housekeeping" in nature and are offered as a "Consent Agenda" to be take up 
as a single item with one vote.  Any item will be taken up separately at the 
request of a Senator.  A majority of those members present and voting is 
required for approval.

                III. MINUTES FOR APRIL 20, MAY 18, and JUNE 8


                           IV. FACULTY SENATE OFFICERS

      The chair of the Faculty Senate recommends the following officers for 
1995-96:

                           Parliamentarian--Karen Brown
                       Abstractor and Clerk--Martha Kvanbeck


                           V. COMMITTEE ON COMMITTEES
                    Committees of the Faculty Senate, 1995-96

FACULTY AFFAIRS - Faculty:  Daniel Feeney (chair), Carole Bland, Carol 
Chomsky, Mary Dempsey, Judith Gaston, Richard Goldstein, Roland Guyotte, 
Kinley Larntz, Willard Manning, Richard McGehee, Carol Miller, Samuel Myers, 
Ken Roering, Bernard Selzler, James Stone, Yang Wang.  Academic Professional:  
Judith Gaston. Ex Officio:  Carol Carrier, Cheryl Coryea, Robert Fahnhorst, 
George Seltzer.  Students:  Samar Barakat, Kevin O'Laughlin.

JUDICIAL - Faculty:  Edwin Fogelman (chair), Ron Akehurst, Jean Bauer, David 
Born, Susan Brorson, Vincente Cabrera, Laura Cooper, Timothy Dunnigan, 
Genevieve Escure, Edward Foster, David Frank, Shirley Garner, Hillel 
Gershenson, Ilene Harris, Curtis Hoard, Joan Howland, Jack Imholte, Edward 
Kaplan, Candace Kruttschnitt, David Lykken, Jack Mandel, John (Kim) 
Munholland, Takashi Okagaki, Angelita Reyes, Sharon Satterfield, Harold 
Schwartz, Oriol Valls, Billie J. Wahlstrom, Carol Wells.

INFORMATION:

FACULTY CONSULTATIVE - Faculty:  Carl Adams (chair), John Adams, Carole Bland, 
Victor Bloomfield, Virginia Gray (vice chair), James Gremmels, Robert Jones, 
Geoffrey Maruyama, Harvey Peterson, Michael Steffes. Ex Officio:  Roberta 
Humphreys, Daniel Feeney, Laura Coffin Koch, Lester Drewes, Fred Morrison.


                                                      W. ANDREW COLLINS, Chair
                                                       Committee on Committees

DISCUSSION:

      The Consent Agenda was approved without discussion.

                                                                      APPROVED

            -----------------------------------------------------


                      VI. FACULTY CONSULTATIVE COMMITTEE
                          Conflict of Interest Policy
                                    Action

MOTION:

      To approve revisions of the Conflict of Interest Policy.   

      (deleted language is in [brackets])

                          CONFLICT OF INTEREST POLICY

                  Approved by Board of Regents April 8, 1994
                 Administratively Revised September 27, 1995


1.     STATEMENT OF GENERAL POLICY


        The University of Minnesota actively encourages and participates in 
        interaction with both  the public and private sectors as an important 
        component of its research, education, and public service activities.  
        The University encourages the recruitment, retention, and recognition 
        of individuals with creative abilities who can contribute to 
        technology transfer and interactions with BUSINESS(1) and public 
        entities consistent with their primary commitment to the University.  
        ACADEMIC EMPLOYEEs involved in such interactions may receive personal 
        financial compensation in accordance with the principles and 
        guidelines provided in this policy.  Research activities supported by 
        grants, contracts, or GIFTs from public and private entities as well 
        as individuals provide a valuable source of funds, equipment, and 
        topics for University research. Professional interactions, including 
        consulting arrangements, between ACADEMIC EMPLOYEEs and public 
        entities and private BUSINESSes advance the University's ability to 
        provide a high-quality research and educational experience for 
        students and enhance employment opportunities for students.  
        University licensing of technology, ACADEMIC EMPLOYEE's consulting, 
        assisting in new BUSINESS start-ups, and other forms of technology 
        transfer to both public and private entities are critical to meeting 
        society's needs.  The University is committed to fostering the welfare 
        of the State of Minnesota through interaction by the University with 
        other public entities and the private sector.

        At the same time, the University and its employees are committed to 
        conducting themselves and University activities in accordance with the 
        highest standards of integrity and ethics.  This includes the 
        identification of the potential for conflicts of interest and the 
        assurance that they do not improperly affect University activities.  
        It is the purpose of this policy to set forth the principles for 
        identifying such potential for conflicts and the procedures for 
        reviewing and addressing the potential for conflicts that occur.   

2.     CONFLICT OF INTEREST AND EXTERNAL RELATIONSHIPS 

        A conflict of interest occurs when an ACADEMIC EMPLOYEE compromises 
        his/her professional judgment in carrying out University teaching, 
        research, outreach, or public service activities because of an 
        external relationship that directly or indirectly affects the 
        FINANCIAL INTEREST of the ACADEMIC EMPLOYEE, any FAMILY(2) member, or 
        any ASSOCIATED ENTITY.

        The potential for conflicts arises because of the nature and scope of 
        activities engaged in by the University and its employees.  The 
        University assumes that potential for conflicts will occur regularly 
        in the normal conduct of activities.  However, it is essential that 
        the significant potential for conflicts be disclosed and reviewed by 
        the University.  After disclosure the University can then make an 
        informed judgment about a particular case and require appropriate 
        oversight, limitations, or prohibitions on the activity in accordance 
        with this policy.  ACADEMIC EMPLOYEES may not engage in activities in 
        which an actual conflict of interest occurs.

        ACADEMIC EMPLOYEES are encouraged to PARTICIPATE in technology 
        transfer activities and interactions with other public entities and 
        with BUSINESS.  Such activities, referred to in this document as 
        external relationships, may have the potential for conflicts of 
        interest.  However, no wrongdoing is implied by the existence of 
        external relationships.

        SIGNIFICANT COMBINATIONS OF ACTIVITIES AND EXTERNAL RELATIONSHIPS

        The potential for a conflict interest arises when certain behaviors on 
        the part of the ACADEMIC EMPLOYEE occur and are coupled to the 
        existence of certain external relationships.  Some combinations 
        (Category I below) are assumed to not represent a conflict of 
        interest.  Other combinations represent sufficient potential for 
        conflict of interest (Category II below) that they require review and 
        prior approval by the University before the ACADEMIC EMPLOYEE can 
        engage in the activity.  Category III below addresses an activity 
        combined with an external relationship that is presumed to be a 
        conflict of interest and is therefore not allowed.

        The following is a representative, though not inclusive, list of 
        activities and external relationships covered by this policy.  The 
        categories are general guidelines, and application of appropriate 
        review and oversight will always be in accordance with maintaining the 
        full integrity or reputation of the University and its employees 
        within the context of academic freedom.

        Any combination of activity and external relationship not specifically 
        represented in Categories I-III that an ACADEMIC EMPLOYEE reasonably 
        believes constitutes a potential conflict of interest must be reported 
        in writing to the ACADEMIC EMPLOYEE's department head.(3)  The 
        department head will determine whether the relationship represents an 
        activity requiring further review. 

        CATEGORY I  - Allowable combinations of  activities and external 
        relationships: The following are not considered conflicts of interest 
        and do not require disclosure.  They are allowable, if they are 
        consistent with other policies of the University including the 
        Consulting and Patent and Technology Transfer policies:(4)

        a)      An ACADEMIC EMPLOYEE receiving royalties and honoraria 
                for published scholarly works, occasional lectures, and other 
                writings or creative works.(5,6)

        b)      An ACADEMIC EMPLOYEE receiving honoraria for serving as a 
                special reviewer or serving on review panels for academic, 
                governmental, or not-for-profit entities. 

        c)      An ACADEMIC EMPLOYEE receiving royalties under the 
                University's or another academic institution's royalty-sharing 
                policies but the employee does not have any other relationship 
                with the royalty-granting entity as specified in Category II.

        d)      An ACADEMIC EMPLOYEE participating in a Private Practice Plan 
                pursuant to policies adopted by the Board of Regents.

        CATEGORY II  - Combinations of activities and external relationships 
        that have the potential for conflict of interest: The following 
        combinations range from those that are considered to have minimal to 
        moderate potential for conflict of interest (Section A) to those that 
        have a moderate to high potential for conflict of interest (Section 
        B).  The activities in Section A  are ordinarily allowable following 
        disclosure and, where necessary, the implementation of oversight or 
        other management procedures.  The activities and external 
        relationships listed in Section B require case-by-case review and only 
        some of the specific relationships may be approved. Special oversight 
        or management procedures are likely to be required (see Section 3 for 
        disclosure and approval procedures).

        SECTION  A - Combinations of activities and external relationships in 
        which there is a minimal to moderate potential for conflict of 
        interest.
 
        RESEARCH ACTIVITIES

        a)     An ACADEMIC EMPLOYEE participating in research on a 
               technology, process, or product developed in whole or in part 
               by that ACADEMIC EMPLOYEE in which the employee, a member of 
               his/her IMMEDIATE FAMILY, or an ASSOCIATED ENTITY is entitled 
               to receive royalties from an existing agreement with a 
               BUSINESS under the University's or another academic 
               institution's royalty-sharing policies, but has no other 
               FINANCIAL INTERESTs in the project.

        b)     An ACADEMIC EMPLOYEE assigning students, postdoctoral fellows, 
               or other trainees to research projects in which the ACADEMIC 
               EMPLOYEE, a member of his/her IMMEDIATE FAMILY, or an 
               ASSOCIATED ENTITY is entitled to receive royalties from an 
               existing agreement with a BUSINESS under the University's or 
               another academic institution's royalty-sharing policies, but 
               has no other FINANCIAL INTERESTs in the project.

        INSTRUCTIONAL ACTIVITIES

        c)     An ACADEMIC EMPLOYEE assigning students or other trainees to 
               instructional projects, for example, design projects, in which 
               the ACADEMIC EMPLOYEE, a member of his/her IMMEDIATE FAMILY, 
               or an ASSOCIATED ENTITY has A FINANCIAL INTEREST.

        SECTION B - Combinations of activities and EXTERNAL RELATIONSHIPS IN 
        WHICH THERE IS A MODERATE TO HIGH POTENTIAL FOR CONFLICT OF INTEREST.

        RESEARCH ACTIVITIES

        a)     AN ACADEMIC EMPLOYEE participating in clinical trials or 
               evaluation or development of a technology, process, or product 
               owned or controlled by a BUSINESS in which the employee, a 
               member of his/her FAMILY, or an ASSOCIATED ENTITY has a 
               FINANCIAL INTEREST.

        b)     An ACADEMIC EMPLOYEE assigning students, postdoctoral fellows, 
               or other trainees to projects supported by a BUSINESS (through 
               SPONSORED RESEARCH or a GIFT) in which the ACADEMIC EMPLOYEE, a 
               member of his/her FAMILY, or an ASSOCIATED ENTITY has a 
               FINANCIAL INTEREST, other than royalty income or the 
               entitlement to future royalty income under university royalty-
               sharing policies.

        c)     An ACADEMIC EMPLOYEE receiving University-supervised SPONSORED 
               RESEARCH support or GIFTS (whether in dollars or in kind) for 
               research from a BUSINESS in which he/she, a member of his/her 
               FAMILY, or an ASSOCIATED ENTITY has a FINANCIAL INTEREST, other 
               than royalty income or the entitlement to future royalty income 
               under university royalty-sharing policies. 

        BOARD MEMBERSHIPS

        d)     AN ACADEMIC EMPLOYEE receiving research support (SPONSORED 
               RESEARCH or a GIFT) from a BUSINESS in which the employee or a 
               member of his/her FAMILY serves on the board of directors or 
               advisory board.

        EXTERNAL ACTIVITIES

        e)     AN ACADEMIC EMPLOYEE holding an EXECUTIVE POSITION in a 
               BUSINESS engaged in commercial or research activities directly 
               related to his/her University responsibilities.

        ADMINISTRATIVE RESPONSIBILITIES

        f)     AN ACADEMIC EMPLOYEE taking administrative action on behalf of 
               the University with respect to the University or any 
               University-affiliated organization that is beneficial to a 
               BUSINESS in which he/she, a member of his/her FAMILY, or an 
               ASSOCIATED ENTITY has a FINANCIAL INTEREST.

        g)     An ACADEMIC EMPLOYEE taking administrative action on behalf of 
               the University with respect to any supported research activity 
               (SPONSORED RESEARCH or a GIFT) in which the ACADEMIC EMPLOYEE, 
               a member of his/her FAMILY, or an ASSOCIATED ENTITY has a 
               FINANCIAL INTEREST in the sponsor or donor.

        PROFESSIONAL REFERRALS

        h)    WITH THE EXCLUSION OF CONSULTING ACTIVITIES THAT CONFORM TO THE 
              CONSULTING POLICY, AN ACADEMIC EMPLOYEE while acting in the 
              context of his/her University duties making professional 
              referrals to a BUSINESS in which he/she, a member of his/her 
              FAMILY, or an ASSOCIATED ENTITY has a FINANCIAL INTEREST of 
              which the ACADEMIC EMPLOYEE is aware or reasonably should be 
              aware.(7)

       CATEGORY III  - A COMBINATION OF AN ACTIVITY AND AN EXTERNAL 
       RELATIONSHIP THAT IS PROHIBITED: THE FOLLOWING ACTIVITY CREATES A 
       CONFLICT OF INTEREST AND IS NOT ALLOWED FOR ACADEMIC EMPLOYEEs:

       PURCHASING GOODS OR SERVICES

       a)     ACADEMIC EMPLOYEES involved with or who may influence purchasing 
              decisions or contracting on behalf of the University must comply 
              with Minn. Stat. § 15.43, Acceptance of Advantage by State 
              Employee, which is fully set forth in Appendix [D]E.

3.  IMPLEMENTATION - CONFLICT OF INTEREST

Successful implementation of this policy assumes a shared responsibility by 
all ACADEMIC EMPLOYEES and the administration of the University.  ACADEMIC 
EMPLOYEES are expected to comply with all the disclosure requirements 
described below.  Once proposed activities have been administratively reviewed 
with a plan of action completed and approved, University administration has 
the responsibility to vigorously defend the activity so long as the ACADEMIC 
EMPLOYEE complies with the plan of action, the disclosure requirements, other 
University policies, and the law.

A.     DISCLOSURE OF FINANCIAL INTERESTS REQUIREMENTS

REQUIREMENTS FOR DISCLOSURE OF FINANCIAL INTERESTS:  ANY TIME AN  ACADEMIC 
EMPLOYEE PLANS TO INITIATE AN ACTIVITY THAT MAY BE CLASSIFIED UNDER CATEGORY 
II OF THIS POLICY, THE ACADEMIC EMPLOYEE must obtain approval of the proposed 
activity before commencing the activity. For the purposes of this policy, 
disclosure OF FINANCIAL INTERESTS is required when [the interest in] THE 
AGGREGATED ANNUAL INCOME BY AN ACADEMIC EMPLOYEE AND IMMEDIATE FAMILY MEMBERS 
FROM a BUSINESS OR ANY OTHER ENTITY IS EXPECTED TO [by an ACADEMIC EMPLOYEE or 
by an IMMEDIATE FAMILY member] exceeds $[5,000]10,000 [in annual income of all 
types], WHEN equity or ownership interest IN ANY SINGLE ENTITY IS valued at 
$10,000 OR MORE, OR [1]5 percent or more (DETERMINED THROUGH REFERENCE TO 
PUBLIC PRICES OR OTHER REASONABLE MEASURES OF FAIR MARKET VALUE), or WHEN 
THERE IS A commitment for [any] future royalties.  Disclosure OF FINANCIAL 
INTERESTS is also required when an EXTENDED FAMILY member holds an EXECUTIVE 
POSITION in a BUSINESS, or holds equity or ownership interest valued at ten 
percent or more in a BUSINESS.  DISCLOSURE OF FINANCIAL INTERESTS IS NOT 
REQUIRED FOR  AN OWNERSHIP INTEREST IN A SMALL BUSINESS INNOVATION RESEARCH 
(SBIR) PROGRAM (PUB. L. 97-219) OR A SMALL BUSINESS TECHNOLOGY TRANSFER 
PROGRAM (PUB. L. 102-564).

DISCLOSURE AT THE TIME OF SUBMITTING A PROPOSAL FOR SPONSORED RESEARCH OR 
RECEIPT OF A GIFT:  ALL ACADEMIC EMPLOYEEs must disclose relevant FINANCIAL 
INTERESTs to their department heads at the time of their application for 
research support (from internal or external funding sources) or technology 
transfer, or upon receipt of a GIFT if the proposed falls under the provisions 
of this policy.  Funding for the project will not be accessible to the 
ACADEMIC EMPLOYEE until the disclosure of FINANCIAL INTEREST is reviewed and 
approval is given, and other appropriate measures have been implemented in 
accord with this policy.

ANNUAL DISCLOSURE:  All ACADEMIC EMPLOYEEs are required annually to complete 
and  submit to their department heads the Disclosure Form reporting all 
FINANCIAL INTERESTs related to research activities and consulting activities.   
Whenever substantial changes occur that the ACADEMIC EMPLOYEE believes may 
alter the FINANCIAL INTERESTS previously disclosed, an updated form must be 
submitted within thirty (30) days.

DISCLOSURE WHEN INVOLVED WITH REVIEW OR ADVISORY ACTIVITIES:  All ACADEMIC 
EMPLOYEES must temporarily excuse themselves from any University committee or 
review process that is considering an activity in which they have a FINANCIAL 
INTEREST. 

In addition, ACADEMIC EMPLOYEES must also disclose to committee chairs or the 
appropriate administrator any interest (BUSINESS, FINANCIAL, OR FAMILY) that 
might cause the employee to compromise his/her judgment while serving as a 
committee member or making administrative decisions. An example is serving in 
an EXECUTIVE POSITION for any organization that does business with the 
University or sets policies or rules that affect the University's activities.

DISCLOSURE WHEN INVOLVED WITH TECHNOLOGY TRANSFER:  When ACADEMIC EMPLOYEES 
are involved with transferring technology through patents or licensing to a 
BUSINESS in which the employee has a FINANCIAL INTEREST, the employee must 
disclose the FINANCIAL INTEREST to the Associate Vice President, Office of 
Research and Technology Transfer.

DISCLOSURE TO EXTERNAL ENTITIES: ACADEMIC EMPLOYEEs must disclose relevant 
FINANCIAL INTERESTs to sponsors of research and in reporting by either written 
or oral communication research results.(8)  Disclosure must also be made by 
any employee who makes an appearance, either in person or by way of a written 
communication, before any public body, commission, group, or individual, to 
present facts or to give an opinion respecting any issue or matter up for 
consideration, discussion, or action.(9)

ADDITIONAL INFORMATION:  When considering approval of Category II activities 
or monitoring Category III activities, the department head, dean, or 
appropriate [academic vice president]PROVOST/vice chancellor may require the 
ACADEMIC EMPLOYEE to submit additional clarifying information pertinent to the 
activity under review.  This supplemental information will be treated as non-
public information to the extent allowed by law.

WAIVING THE REQUIREMENT FOR DISCLOSURE OF FINANCIAL INTEREST:  IN SPECIAL 
SITUATIONS, ACADEMIC EMPLOYEES may request a waiver of the requirement to file 
a financial disclosure to participate in a specific activity if they can 
document that they are not in a position to influence the accuracy of the 
outcome of the research or the timely and accurate dissemination of the 
results of the research.  A request for a waiver must be submitted to the 
ACADEMIC EMPLOYEE's department head.  The administrative review process should 
follow the procedure described below for Category II - Section A activities.  
If the request for the waiver is denied, then the ACADEMIC EMPLOYEE must 
either comply with the disclosure requirements or not participate in the 
proposed activity.

B.     REVIEW OF APPLICATIONS FOR EXTERNAL SUPPORT OR RECEIPT OF GIFTS

REVIEW PROCESS: The general purpose of reviews is to assist employees and the 
University in avoiding or controlling risks to integrity and reputation 
engendered by such relationships, while at the same time protecting and 
furthering the interests of employees, the University, and society in the 
activities supported by SPONSORED RESEARCH and GIFTs (see Appendix  B,1,b for 
general guidelines for the review process).

CATEGORY II - SECTION A:  The department head is the responsible administrator 
for this section.  When a department head receives the disclosure form, he/she 
will consider the appropriateness of the activity and will determine a course 
of action that will be reported in writing to the dean to whom the department 
head reports.  The dean will either approve the department head's action or 
submit the disclosure for review following the Category II - Section B 
procedure.  In those instances when the dean does not concur, the activity may 
not proceed until approval is obtained by the Category II - Section B review 
procedure.  Review and decisions on proposed activities for this section must 
be completed within twenty (20) working days after the department head 
receives the written disclosure.

CATEGORY II - SECTION B: The dean is the responsible administrator for this 
section. When a department head receives the disclosure form, he/she will 
consider the appropriateness of the activity and will recommend a course of 
action that will be submitted to the dean to whom the department head reports.  
The dean will refer the proposed activity to the appropriate Conflict Review 
Committee (described below) with or without his/her specific recommendation. 
The Conflict Review Committee will either endorse the dean's recommendation or 
suggest to the dean a course of action.  The dean will then determine the 
course of action for the proposed activity and submit the decision to the 
[academic vice president] PROVOST or vice chancellor to whom the dean reports.  
The [vice president]PROVOST/vice chancellor will either concur or return the 
plan of action to the dean for revision. For those proposed activities that 
would benefit from an additional perspective, the [vice president]PROVOST/vice 
chancellor will forward a request to the Vice President for Research to refer 
the activity to the Public-Private Partnership Committee (PPPC).  The advice 
from the PPPC will be submitted to the dean, who will determine the course of 
action and submit the decision to the [vice president] PROVOST or vice 
chancellor to whom the dean reports.  The [vice president]PROVOST/vice 
chancellor will either concur or return the plan of action to the dean for 
revision.  Review and decisions on proposed activities for this section must 
be completed within thirty (30) working days after the department head 
receives the written disclosure except for those activities referred to the 
PPPC.  The proposed activities that are reviewed by the PPPC must be completed 
within an additional thirty (30) working days.

CONFLICT REVIEW COMMITTEES (CRCS): Each [academic vice president] PROVOST or 
vice chancellor will determine whether the review committee(s) should be 
organized at the collegiate level or by area (multiple colleges) and, in 
consultation with appropriate deans, will be responsible for appointing review 
committee members (see Appendix B).  ACADEMIC EMPLOYEEs will have the 
opportunity to meet with the CRC to discuss the situation and possible 
actions.

APPEAL/RECONSIDERATION PROCESS:  If an ACADEMIC EMPLOYEE believes the 
determined course of action is inappropriate, the employee may appeal or ask 
for the decision to be reconsidered by the dean.   The dean will then refer 
the appeal to the Conflict Review Committee to have the activity reconsidered.  
Upon completion of the review, the dean will act on the recommendation.

SPECIAL REPORTING REQUIREMENTS TO SPONSORING AGENCIES:  SOME FUNDING AGENCIES 
(E.G., PUBLIC HEALTH SERVICE) REQUIRE NOTIFICATION OF POTENTIAL CONFLICTS OF 
INTEREST BEFORE FUNDS MAY BE EXPENDED IN SUPPORT OF THE ACTIVITY THAT HAS THE 
REPORTED INTEREST. TO FULFIL THIS REQUIREMENT, THE DEAN OF THE UNIT IN WHICH A 
POTENTIAL CONFLICT OF INTEREST HAS BEEN IDENTIFIED WILL INFORM THE VICE 
PRESIDENT FOR RESEARCH OF THE POTENTIAL CONFLICT OF INTEREST AND HOW IT WILL 
BE MANAGED, REDUCED, OR ELIMINATED.  THE VICE PRESIDENT FOR RESEARCH WILL 
NOTIFY THE FUNDING AGENCY ENTITY ABOUT THE POTENTIAL CONFLICT OF INTEREST AND 
PROVIDE ASSURANCE THAT THE INTEREST HAS BEEN MANAGED, REDUCED, OR ELIMINATED. 
OTHER AGENCIES (E.G., NSF) REQUIRE NOTIFICATION OF CONFLICTS OF INTEREST THAT 
CANNOT BE MANAGED OR ELIMINATED. ONLY THOSE AGENCIES THAT HAVE THESE SPECIFIC 
REQUIREMENTS WILL BE NOTIFIED.

RECORD RETENTION:  Each dean will maintain records of all financial disclosure 
statements filed and all actions taken by the institution, on an award-by-
award basis, for at least three (3) years beyond the termination of the award 
or until resolution of any action by the University or governmental agencies 
involving the records.  All records will be maintained in a manner to protect 
confidentiality.

C.     REPORTING OF PREVIOUSLY APPROVED RELATIONSHIPS

Each dean annually will submit a written report to the appropriate [academic 
vice president]PROVOST/vice chancellor summarizing all requests and actions 
regarding Category II external relationships.  In addition, the dean must 
report on ongoing Category II relationships to ensure that management and 
oversight activities are being carried out as required.  These reports will be 
forwarded by the [vice president] PROVOST or vice chancellor to the Vice 
President for Research for transmission to the Public-Private Partnership 
Committee, which will review activities for consistency and make suggestions 
for modification of operating principles and procedures.  On behalf of the 
committee, the Vice President for Research will communicate its 
recommendations in writing to the [vice presidents] PROVOSTS and vice 
chancellors, who in turn will communicate in writing with their deans.  The 
Vice President for Research also will consult with appropriate faculty 
governance committees regarding proposed changes in the operating principles 
and procedures.

4.     COMPLIANCE

The University expects ACADEMIC EMPLOYEEs to comply fully and promptly with 
all the requirements of this policy.  Breaches of this policy include, but are 
not limited to, failure to file, intentionally filing an incomplete, 
erroneous, or misleading disclosure form, or failing to provide additional 
information as required by the approving authority.  A violation of this 
policy may be the basis for discipline of an ACADEMIC EMPLOYEE.  If sanctions 
are necessary, they will be imposed in accordance with the Regulations 
Concerning Faculty Tenure and the Academic Professional and Administrative 
Staff Policies and Procedures.  The potential sanctions may include, but are 
not limited to, the following:

     *     Letter of admonition;  
     *     Ineligibility of the ACADEMIC EMPLOYEE for grant applications, 
           Institutional Review Board (IRB) approval, or supervision of 
           graduate students;
     *     Suspension;  
     *     Nonrenewal of appointment;  
     *     Dismissal.

IF AN ACADEMIC EMPLOYEE WHO IS INVOLVED WITH SPONSORED RESEARCH FAILS TO 
COMPLY WITH THIS POLICY AND HAS BIASED THE DESIGN, CONDUCT OR REPORT OF 
RESEARCH DUE A CONFLICT OF INTEREST,  THEN THE DEAN OF THE UNIT MUST PROMPTLY 
INFORM THE VICE PRESIDENT FOR RESEARCH.  THE VICE PRESIDENT FOR RESEARCH WILL 
THEN NOTIFY THE SPONSORING AGENCY OF THE CORRECTIVE ACTION TAKEN OR TO BE 
TAKEN. 

5.     OTHER APPLICABLE POLICIES AND LAWS

The statement  of principles contained in this policy complements the 
provisions of other applicable policies, regulations, and laws.  These include 
Regents' policies on "Patent and Technology Transfer"; "Consulting and Outside 
Affiliations: Outside Consulting, Service Activities and Other Outside Work"; 
and the "Faculty and Staff Grievance Procedure."  Other relevant guidelines 
include the "Regulations Concerning Faculty Tenure"; Purchase of Services 
Policies and Procedures, and applicable state and federal law.  This policy is 
intended to help implement and expand upon these other related requirements.  

This policy AND THE APPENDICIES A - E ATTACHED HERETO AND INCORPORATED HEREIN, 
supersedes all others with respect to matters covered herein.

APPENDIX A - OPERATING DEFINITIONS

THE ITEMS APPEARING IN SMALL CAPITAL LETTERS SHALL HAVE THE FOLLOWING 
MEANINGS:

A) ACADEMIC EMPLOYEE means any person possessing either a full-time (any 
employee holding an appointment of more than 66 percent time) or part-time 
academic or staff appointment at the University and includes all persons with 
the following class numbers:  Academic Administrative 93xx; Faculty 94xx; 
Minnesota Extension Service 96xx; and Academic Professionals 97xx.  Also 
included in this category are those individuals, whether salaried or not 
salaried, who on behalf of the University are responsible [for writing and 
submitting grants.] THE DESIGN, CONDUCT,OR REPORTING OF RESEARCH.  

b) An ASSOCIATED ENTITY of an ACADEMIC EMPLOYEE means any trust, organization, 
or enterprise over which the employee, alone or together with his/her FAMILY, 
exercises a controlling interest.

c) BUSINESS means any corporation, partnership, sole proprietorship, firm, 
franchise, association, organization, holding company, joint stock company, 
receivership, business or real estate trust, or any other nongovernmental 
legal entity organized for profit, not-for-profit, or charitable purposes.

d) EXECUTIVE POSITION refers to any position that includes responsibilities 
for a significant segment of the operation or management of a BUSINESS.

e)  EXTENDED FAMILY of an ACADEMIC EMPLOYEE includes children who do not 
qualify as dependents for tax purpose, parents, and siblings.

f)  The FAMILY of an ACADEMIC EMPLOYEE includes both IMMEDIATE FAMILY and 
EXTENDED FAMILY.

g) A FINANCIAL INTEREST is an interest in a BUSINESS consisting of: (1) any 
stock, stock option, or similar ownership interest in such BUSINESS, but 
excluding any interest arising solely by reason of investment in such BUSINESS 
by a mutual, pension, or other institutional investment fund over which the 
ACADEMIC EMPLOYEE does not exercise control; or (2) receipt of, or the right 
or expectation to receive, any income from such BUSINESS whether in the form 
of a fee (e.g., consulting), salary, allowance, forbearance, forgiveness, 
interest in real or personal property, dividend, royalty derived from the 
licensing of technology or other processes or products, rent, capital gain, 
real or personal property, or any other form of compensation, or any 
combination thereof.  For the purposes of this policy, disclosure OF FINANCIAL 
INTERESTS is required when [the interest in] THE AGGREGATED ANNUAL INCOME BY 
AN ACADEMIC EMPLOYEE AND IMMEDIATE FAMILY MEMBERS FROM a BUSINESS OR ANY OTHER 
ENTITY IS EXPECTED TO [by an ACADEMIC EMPLOYEE or by an IMMEDIATE FAMILY 
member] exceeds $[5,000]10,000 ]in annual income of all types], WHEN equity or 
ownership interest IN ANY SINGLE ENTITY is valued at $10,000 OR MORE, OR [1]5 
percent or more (DETERMINED THROUGH REFERENCE TO PUBLIC PRICES OR OTHER 
REASONABLE MEASURES OF FAIR MARKET VALUE), or WHEN THERE IS A commitment for 
[any] future royalties.  Disclosure OF FINANCIAL INTERESTS is also required 
when an EXTENDED FAMILY member holds an EXECUTIVE POSITION in a BUSINESS, or 
holds equity or ownership interest valued at ten percent or more in a 
BUSINESS.  DISCLOSURE OF FINANCIAL INTERESTS IS NOT REQUIRED FOR  AN OWNERSHIP 
INTEREST IN A SMALL BUSINESS INNOVATION RESEARCH (SBIR) PROGRAM (PUB. L. 97-
219) OR A SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM (PUB. L. 102-564). 

h) GIFT means an unrestricted donation of assets to the University or any 
portion of the University.  The donor may specify the general purpose for 
which the gift may be used, but there may be no other terms and conditions 
concerning the use of such assets.  Assets may be in the form of cash, 
securities, tangible personal property, partnership interests, or pledges for 
acceptable assets that are assigned to the University.  For the purposes of 
this policy, disclosure is required when (a) a GIFT is from a BUSINESS in 
which an ACADEMIC EMPLOYEE has a FINANCIAL INTEREST or (b) the value of the 
GIFT exceeds $1,000 in a given year.

i)  IMMEDIATE FAMILY includes the ACADEMIC EMPLOYEE's spouse or domestic 
partner, and children who qualify as dependents for tax purposes.

j)  PARTICIPATE means to be part of the described activity in any capacity, 
including, but not limited to, serving as the principal investigator, co-
investigator, research collaborator, or provider of direct services or patient 
care. The term is not intended to apply to individuals who provide primarily 
technical support or who are purely advisory, with no direct access to the 
data (e.g., control over its collection or analysis) or, in the case of 
research with human subjects, to the study participants, unless they are in a 
position to influence the study's results or have privileged information as to 
the outcome.

k)  SPONSORED RESEARCH means research, training, and instructional projects 
involving funds, materials, or other compensation from outside sources under 
agreements that contain any of the following: The agreement binds the 
University or an affiliated institution to a line of scholarly or scientific 
inquiry specified to a substantial level of detail;  a line-item budget is 
involved;  financial reports are required; the award is subject to external 
audit; unexpended funds must be returned to the sponsor at the conclusion of 
the project; or the agreement provides for the disposition of either tangible 
or intangible properties that may result from the activity.

APPENDIX B - CONFLICT REVIEW COMMITTEES

1)     CONFLICT REVIEW COMMITTEES

       (A)     FORMATION AND MEMBERSHIP

       [Academic vice presidents] PROVOSTS and vice chancellors will form one 
       or more Conflict Review Committees (CRCS) for their areas to review the 
       potential for conflicts of interest respecting SPONSORED RESEARCH, 
       funding and GIFTs.  Committees may be organized by area (multiple 
       colleges) or for particular colleges where the number of such cases or 
       their nature justify a separate committee.  Three-quarters of the 
       voting member-ship of each CRC will be faculty members from the area or 
       college(s) to be served.  The remaining one-quarter of the voting 
       members will include faculty from outside the college(s) and 
       representatives from outside the University.  Some of the members 
       should be individuals who have participated in approved external 
       relationships.  Each CRC will also include nonvoting staff representa-
       tion from the Office of Research and Technology Transfer.  The 
       [academic vice president]PROVOST/vice chancellor will decide on the 
       composition of each CRC and select its members in consultation with the 
       appropriate deans. 

       (B)     GUIDELINES

       The principal objective for the review committees and responsible 
       administrators is to help guard ACADEMIC EMPLOYEEs and the University 
       from engaging in activities where the risk to integrity and reputation 
       as a result of an external relationship outweighs the value of the 
       activity to academic and societal goals.  Relevant factors for the 
       review committees and responsible administrators to consider are the 
       size of the FINANCIAL INTEREST, when the relationship commenced, 
       whether the conditions of the relationship have changed during the past 
       year, the likelihood of actual conflict (will the results of the 
       activity likely be affected by or affect the FINANCIAL INTEREST), 
       mechanisms to ensure integrity (peer review, other independent research 
       sites, and independent monitors or controls), the importance of the 
       proposed activity, and the availability of alternatives to avoid the 
       conflict or apparent conflict. 

       One possible recommendation as a result of the review is approval of 
       the activity as proposed if it is concluded that the potential for 
       conflict is so remote or inconsequential that there is minimal 
       probability for biasing the objectivity of the activity.  Other 
       possible recommendations are to require periodic peer review of the 
       activity (oversight) by individuals independent of the ACADEMIC 
       EMPLOYEE, outside monitors for the activity, divestiture of the 
       FINANCIAL INTEREST, modification of the plan of work, or assignment of 
       different ACADEMIC EMPLOYEEs without a FINANCIAL INTEREST to control 
       the activity.  To the extent possible and reasonable under the 
       circumstances, and in light of the importance of the activity, the 
       review committees and responsible administrators will work with ACAD-
       EMIC EMPLOYEEs to develop means for the activity to take place while 
       protecting the integrity and the reputation of the ACADEMIC EMPLOYEEs 
       and the University.  In special circumstances upon receiving advice 
       from the PPPC, the [academic vice president]PROVOSt/vice chancellor may 
       approve the activity for a limited period of time due to the 
       potentially great benefit from the activity even though there is a high 
       potential for conflict of interest.  

2)     PUBLIC-PRIVATE PARTNERSHIP COMMITTEE

       (A)     FORMATION AND MEMBERSHIP

       The Vice President for Research will form a Public-Private Partnership 
       Committee (PPPC) to advise the University administration on complex 
       ethical issues that cannot be resolved by direct application of 
       existing policies.  Although some members of this committee will be 
       drawn from within the University to provide relevant information and 
       guidance, the majority will represent a broad spectrum of contituencies 
       outside the University.

       (B)     GUIDELINES

       The PPPC will provide advice on how to handle proposed activities that 
       require an additional perspective beside that provided by the CRC.  The 
       PPPC will also annually perform a retrospective review of all decisions 
       involving Category II relationships and provide advice on how policies 
       and procedures might be modified to maintain the integrity of the 
       institution.  The Vice President of Research will serve as the liaison 
       between the PPPC and the [other vice presidents]PROVOSTS/vice 
       chancellors.  The Vice President for Research also will confer with 
       appropriate faculty governance committees regarding proposed changes in 
       the operating principles and procedures.

APPENDIX C - EXISTING RELATIONSHIPS 

This policy takes a broader view of the potential for conflict of interest and 
contains more stringent guidelines than the policy it replaces.  As a result, 
it is expected that certain existing realtionships of ACADEMIC EMPLOYEEs will 
have to be modified.  In order to implement the policy, ACADEMIC EMPLOYEES 
must disclose all existing external relationships to department heads for 
review as specified in Section 3.  This provision also applies to all new 
ACADEMIC EMPLOYEEs hired after this policy is adopted.  The following section 
sets forth transitional rules for removing identified conflicts.  They apply 
to activities department heads and deans have determined to be unallowable.

APPENDIX D - MECHANISMS FOR REMEDIATION

If a department head or dean decides an existing combination of an activity 
and external relationship is unallowable, [the ACADEMIC EMPLOYEE can do any of 
the following to remove the potential for conflict of interest] THE FOLLOWING 
CONDITIONS OR RESTRICTIONS MIGHT BE IMPOSED TO MANAGE  POTENTIAL CONFLICTS OF 
INTEREST, BUT ARE NOT LIMITED TO:

*     DIVESTITURE OF FINANCIAL INTERESTS in publicly traded BUSINESSEs:  
      within three months following the administrative decision, the ACADEMIC 
      EMPLOYEE must divest at least 75 percent of relevant stock holdings; 100 
      percent of the stock must be divested by the end of the sixth month.

*     DIVESTITURE OF FINANCIAL INTERESTs in privately held Businesses:  The 
      ACADEMIC EMPLOYEE will be required to divest himself/herself of his/her 
      interest at the earliest reasonable time in the judgment of the 
      department head or dean.  The University must be assured that the 
      ACADEMIC EMPLOYEE will not be obligated to future activities or 
      responsibilities for the BUSINESS.

*     RETAINING FINANCIAL INTERESTS but withdrawing from University activity: 
      In lieu of divestment of a FINANCIAL INTEREST, an ACADEMIC EMPLOYEE may 
      retain the interest and instead discontinue the University activity in 
      question.  In such circumstances the ACADEMIC EMPLOYEE may continue to 
      participate in the research for a period not to exceed six months 
      following notification that the combination of activities and external 
      relationships is not approved. Under such circumstances, the 
      implementation of appropriate monitoring procedures may be warranted 
      during such period.

*     RESIGNING OR TAKING A LEAVE FROM AN EXECUTIVE POSITION in Business 
      related to an ACADEMIC EMPLOYEE'S University activity:  A full-time 
      ACADEMIC EMPLOYEE with an EXECUTIVE POSITION in a BUSINESS that is 
      deemed unallowable must resign or take a leave of absence from the 
      position within a period determined to be reasonable under the 
      circumstances.  In no case will this period exceed six months from the 
      determination that the relationship is not acceptable. In making these 
      arrangements, efforts will be made to minimize the disruption the change 
      might create for the parties involved.

APPENDIX [D]E - MINN. STAT. 15.43, ACCEPTANCE OF ADVANTAGE BY STATE 
EMPLOYEE

Subdivision 1.  Financial interest of agents.  No employee of the state or of 
the University of Minnesota in direct contact with suppliers or potential 
suppliers to the state or the university, or who may directly or indirectly 
influence a purchasing decision or contract by establishing specification, 
testing purchased products, evaluating contracted services, or otherwise has 
official involvement in the purchasing or contracting process may:

     (1)  Have any financial interest or have any personal beneficial interest 
     directly or indirectly in contracts or purchase orders for goods or 
     services used by, or purchased for resale or furnished to a department or 
     agency of the state or the university; or

     (2)  Accept directly or indirectly from a person, firm, or corporation to 
     which a contract or purchase order has been or may be, awarded, a rebate, 
     gift, money, or anything of value other than items of nominal value.  No 
     such employee may further accept any promise, obligation or contract for 
     future reward.

Subd. 2.  Textbooks exempted.  Textbooks authored by an employee of the 
state's education systems or of the University of Minnesota may be used as 
required course material upon receipt of written approval from the head of the 
department.  Instructors in state instutions and at the university may accept 
free samples of textbooks and related teaching materials.


Subd. 3.  Other exemptions.  The commissioners of human services and 
corrections, and the chancellors of the state university and community college 
systems may by rule prescribe procedure for the acceptance of gifts from any 
person or organization, provided that such gifts are accepted by the 
commissioner or chancellor, or a desighnated representatice of the 
commissioner or chancellor, and that such gifts areused solely for the firect 
benefit of patients, inmates, or students under the jurisdiction of the 
accepting state officer.

Subd. 4.  Penalties.  A violation of this section is a misdemeanor.

History: 1973 C 349 S 2; 1973 C 400 S 1; 1975 C 321 S 2; 1982 C 560 S 7; 1984 
C 654 ART 5 S 58; 1986 C 444

                                   ENDNOTES

(1)   Definitions of terms appearing in small capital letters are listed in 
      Appendix A.
(2)   See definition of FAMILY (IMMEDIATE FAMILY and EXTENDED FAMILY) in 
      Appendix A.
(3)   Department head is used as a generic term for the immediate 
      administrator, which is normally the department head, department chair, 
      or director.
(4)   This Conflict of Interest Policy does not supersede the consulting 
      policy, the "Patent and Technology Transfer Policy" or any future 
      policies on intellectual property.
(5)   Products produced for a specific University job assignment are excluded 
      and remain the property of the University, consistent with applicable 
      law and policy..
(6)   Consistent with the Academic Personnel Policy on "Use of Educational 
      Materials, the Sale of which Benefits Personally Faculty or Staff 
      Members," the approval of the appropriate department head or dean is 
      required when an ACADEMIC EMPLOYEE selects materials for assignment to 
      University students the sale of which will provide personal income to 
      the employee. 
(7)   Only in special situations should full-time ACADEMIC EMPLOYEES be 
      permitted to engage in this type of activity, for example, when the 
      function is not generally available from other sources and the employee 
      fully discloses his/her relevant FINANCIAL INTEREST to prospective 
      clients.
(8)   When submitting a paper for publication, an ACADEMIC EMPLOYEE must 
      disclose to the editor any FINANCIAL INTEREST that may be affected by 
      publication.  This provision also applies to release of information to 
      news media.
(9)   This is taken from the Regents' Policy on "Presenting Testimony - 
      Identification of Affiliations."  The intention is to replace that 
      policy by including its basic provisions in the conflict of interest 
      policy and also in the conflict of commitment policy.


COMMENT:

     These revisions were approved by the Faculty Consultative Committee 
acting on behalf of the Faculty Senate to meet a Federal deadline.  
Confirmation of the Faculty Consultative Committee approval by the Faculty 
Senate is requested.

                                                             CARL ADAMS, CHAIR
                                                FACULTY CONSULTATIVE COMMITTEE

DISCUSSION:

     Professor Daniel Feeney, Chair of the Senate Faculty Affairs Committee, 
presented and briefly reviewed the proposed revisions to the Conflict of 
Interest Policy.  Hearing no discussion from the body, the chair turned 
immediately to the vote.  The amended policy was approved by a majority of 
members present and voting.

                                                                      APPROVED


                           VII. ANNUAL REPORTS
                                INFORMATION

                        Faculty Affairs Committee
                         Annual Report, 1994-95

      The Senate Committee on Faculty Affairs (SCFA) met 15 times during the 
1994-95 academic year.  Issues discussed where those related to the quality of 
faculty life, faculty well-being in general, the protection of faculty rights, 
and issues that influence faculty status and tenure.  Included on the 
committee were faculty members: D. Feeney (Chair), R. Brewer, D. Canafax, C. 
Chomsky, M. Dempsey, A. Erickson, K. Larntz, W. Manning, R. McGehee, K. M. 
Sadowsky, G. Seltzer, B. Selzler, D. Spring, J. Stone, & Y. Wang; 
academic/professional member, J. Gaston; ex officio members: Assoc. Vice Pres. 
C. Carrier, D. Mulvihill, & R. Paschke.  In order to facilitate its business, 
SCFA used the following subcommittees: Faculty Retirement Subcommittee (SCFA 
Standing Subcommittee), Health Care Subcommittee (SCFA Standing Subcommittee), 
Tenure Subcommittee (SCFA Standing Subcommittee), Subcommittee on 
Administrative Review & The Minnesota Data Practices Act, and Faculty Benefits 
other than Retirement Subcommittee (SCFA Standing Subcommittee).  In addition 
SCFA was represented on both the Academic Staff Advisory Committee and the 
Faculty Consultative Committee.

      During the first meeting, a list of issues facing the Faculty Affairs 
Committee were discussed.  The following is a summary of the issues and 
accomplishments of SCFA for the year 94-95.  


SCFA INPUT ON ALL UNIVERSITY POLICIES, RESOLUTIONS, AND SELF ASSESSMENT:  
      There were 3 documents generated outside this committee on which SCFA 
provided input.  The first was a jointly sponsored "Research Resolution" which 
originated in the Research Committee and was eventually presented to the 
University Senate.  In this resolution was the provision that within the 
missions of all academic units, there should be an allowance for scholarly 
activities and appropriate time allocated to faculty wishing to pursue those 
endeavors.  SCFA also provided input on the revised Regent's statement on 
Academic Freedom.  This was part of a recurring update of Regent's policies 
and a simplification of multiple policies in to one succinct policy.  Under 
the U-2000 initiative, a series of 18 performance goals and critical measures 
are being developed for the institution to assess itself.  These are being 
grouped and approved in intervals by group.  Of those that were approved 
during the 1994-95 academic year, SCFA provided the most detailed input on the 
development of the segment titled "Faculty & Staff Recruitment, Development, 
Satisfaction, and retention".  Modification of the draft presented to SCFA was 
significant based on the input from the committee.  Faculty issues such as 
retraining, salary relationships to peer institutions, faculty involvement in 
administrative decisions, and the general facilities and teaching environment 
were proposed as additional considerations because they were germane to the 
quality of faculty life.  Further details on these issues are available in the 
minutes of the Senate Committee on Faculty Affairs and those of the University 
Senate.  

SCFA INPUT ON THE REPORT OF THE COMPENSATION WORKING GROUP:
      The Compensation Working Group chaired by Professor Carl Adams solicited 
input on drafts of their report on 3 occasions from the Faculty Affairs 
Committee.  Issues were discussed relating to the University of Minnesota 
being able to maintain its status as a surviving research institution and what 
will be necessary to attract and maintain the necessary faculty into the 21st 
century.  Discussions centered around competitive compensation packages in 
general, options for faculty to supplement their salary while serving our 
institution in their teaching, research, and service capacities, and what 
nonfiscal aspects of compensation could be used to promote faculty to come to 
or stay with this institution.  At the end of the discussions, Faculty Affairs 
Committee commended Professor Adams and his group for their task and expressed 
hope that the compensation report would be implemented by the U of M 
Administration and the Board of Regents with enthusiasm.  

SCFA INPUT ON THE PROFESSIONAL COMMITMENT POLICY:
      Acting Vice President for Research and Acting Dean of the Graduate 
School Mark Brenner visited SCFA several times with the continually evolving 
draft of the Professional Commitment Policy.  The Faculty Affairs Committee 
served as a balancing and neutralizing body and presented numerous arguments 
as to why certain aspects of the policy should be modified.  The underlying 
concern of Faculty Affairs was that, although the policy is intended to 
provide guidelines to faculty on external activities and serve as a source of 
information for those interested in faculty accountability, that the policy 
should not have a damaging affect on what was already perceived to be 
deteriorating faculty morale.  SCFA Input on the Professional Commitment 
Policy: (continued)  A formal vote from within SCFA was not taken because the 
policy "evolved" until it was presented to the Faculty Senate.  Among the 
members of the Faculty Affairs Committee, there were those who indicated they 
would support the policy and there were those who said they would not based 
either on general principles or specific clauses.  Concerns were expressed by 
several SCFA members that the Faculty Senate might not pass the document.  
Apparently these were well-founded.  After the final draft of the policy 
failed to received Faculty Senate approval, a subcommittee was formed 
(including the Chair of the Faculty Affairs Committee) with the charge that a 
document which can be accepted by the Senate should be drafted as early as 
possible in the 1995-96 academic year.  

REESTABLISHMENT OF AN ADVOCACY OFFICE:
      The Administrative Director of the Faculty Senate indicated that there 
had been some requests for advocacy services from her office.  Ms. Kvanbeck 
indicated that there had been an Advocacy Office to serve faculty/professional 
administrative staff, but its operation ceased when the revised Faculty and 
Staff Grievance Policy went in to effect.  In an attempt to gather information 
on the need for an Advocacy Office, Professor Mario Bognanno, primary drafter 
of the existing grievance policy, Mr. Nick Barbatsis, current University 
Grievance Officer, and Professor David Ward, 1994-95 Chair of the Senate 
Judicial Committee, were interviewed.  No decisions were made on the need for 
an Advocacy Office.  However, it became quite obvious that the scope of such 
an office would must be limited and that the applicability of advocates (other 
than lawyers) in the formal Judicial Committee proceedings would be quite 
limited.  Reestablishment of an Advocacy Office: (continued) 

      There was some sentiment that advocates could serve as sources of 
information on options for faculty and staff, but would then not be involved 
as formal advisors during a specific grievance or Judicial Committee 
proceedings.  Additional input will be sought during the 1995-96 academic year 
on this issue with the intent of formulating a recommendation to Central 
Administration.  

SCFA INPUT ON PROPOSED REVISIONS OF THE U OF M SEXUAL HARASSMENT POLICY:
      The Sexual Harassment Board, Chaired by Professor R. Poppele, presented 
its suggested revisions of the U-MN Sexual Harassment Policy to the Faculty 
Affairs Committee.  Considerations centered around the change from the 
existing policy wherein sexual relationships between members of the University 
community (where one may have influence or authority over the other) are 
currently "discouraged" to a revised policy wherein such relationships would 
be "forbidden".  Clarification was requested on the relationship between the 
Sexual Harassment Policy and the Regent's Policy on Nepotism regarding  
"committed (sexual) relationships".   In addition, SCFA requested a statement 
on action (e.g. disclosure) that should be taken to protect individuals 
pursuing legitimate relationships leading to "committed" (sexual) 
relationships, if these relationships that cross university rank or employment 
class (including relationships between faculty and students) are forbidden.  
Concern was also expressed the tendency for and the motivation of third party 
reporting (actual or fictitious) and how malicious versus legitimate reports 
would be assessed.  A suitably adjusted, revised version of the Sexual 
Harassment Policy is anticipated during the 1995-96 academic year.  

FACULTY AFFAIRS COMMITTEE DELIBERATIONS ON ISSUES RELATING TO FACULTY MORALE:
      The Faculty Affairs Committee discussed at length what issues may be 
influencing the perceived decline in faculty morale.  Issues such as salary, 
administrative policies, perceived worth of the institution in the state and 
within the Legislature, relationship between the faculty and the Board of 
Regent's, variance in values between the Administration and the Faculty, and 
the very status of faculty governance within the stream of administrative 
deliberations and evolving policies were considered to have impact (mostly 
negative).  These issues were discussed both with the Faculty Consultative 
Committee and to some degree with President Hasselmo during discussions on the 
future of tenure at this institution.  While no formal conclusions were 
derived, awareness of faculty viewpoint on these issues was heightened.  It 
was noted that a sense of university community seemed lacking and that the 
well being of faculty may be being lost in the barrage of budget problems, 
legislative lobbying efforts, unfavorable press, and the numerous other 
pressures brought to bear on the Administration.  This discussion will be 
ongoing in the 1995-96 academic year.

FACULTY AFFAIRS COMMITTEE AND THE ISSUE OF TENURE:
      The administrative restructuring into a 3 Provost and 3 Chancellor model 
presented the need for revision of the tenure code to the Tenure Subcommittee 
of SCFA.  Concerns were expressed about the potential variability of tenure 
decisions when the decisions were decentralized and the input of the Graduate 
School Dean uncertain.  Concerns were expressed about equitability across 
units and the need for a central broad picture of the ever evolving faculty at 
the institution.  The future of tenure at U-MN was discussed with President 
Hasselmo and Vice President Infante.  Faculty Affairs Committee and the Issue 
of Tenure: (continued) The goals of these discussions were to make faculty 
concerns known and to provide faculty input on evolving tenure deliberations 
that are taking place in general among higher education administrators and 
their constituents.  

      Because of the complexity of the tenure issue, a formal revision of the 
Tenure Code was postponed.  An interim interpretation, that would encompass 
the Provost, Chancellor decision models, was put in place for the academic 
year 1995-96.  During that academic year, formal input from faculty and 
administration will be sought by the Tenure Subcommittee with the intent of 
making carefully deliberated modifications in the Tenure Code.  At the end of 
the 94-95 academic year, the Tenure Committee requested a "white paper" or 
philosophical overview of where our institution is going in its tenure 
posture. This information was solicited from Central Administration with the 
intent that it be used in the deliberations on the Tenure Code modifications 
that will occur in the upcoming academic year.  

ACTIVITIES OF THE SCFA RETIREMENT SUBCOMMITTEE:
      The Retirement Subcommittee had several issues which were either ongoing 
or resolved during the 94-95 academic year.  The first was final deliberations 
on an implementation of new subaccount options in the Basic Retirement Plan.  
Request for proposals were solicited by the Employee Benefits Group from all 
major mutual fund families at the end of the 1993-94 academic year.  The 
Retirement Subcommittee meet when the proposals were available and had 
undergone preliminary screening by the Employee Benefits Department.  
Activities of the SCFA Retirement Subcommittee: (continued)

      Criteria for acceptance of new fund and fund families were:  1) the 
availability of relatively aggressive funds and their track record over time, 
the willingness of the fund family to waive fees, the ability of the fund 
family to handle both 403b and 401a classified funds, willingness to provide 
timely and individualized accounting, and the ability to work with the current 
carrier of the general account fund, Minnesota Mutual Life Insurance Company 
of St. Paul (MMLIC).  After deliberations on the groups that meet these 
criteria, the Retirement Subcommittee recommended the adoption of the Fidelity 
family of funds from which 3 specific funds would be added to the basic 
retirement plan.  These were Fidelity Contrafund, Fidelity Asset Manager: 
Growth, and Fidelity OTC (over the counter).  The logistics of adding funds to 
the basic plan were addressed and the funds were available for participants to 
begin purchasing early in winter quarter of 1995 and were available for 
transfer of existing 403b and 401a basic plan dollars by mid-spring quarter of 
1995.  

      As part of an ongoing effort, The Retirement Subcommittee continued to 
monitor the performance of the available options in the Basic Retirement Plan.  
Performance was evaluated on a quarterly basis and no further additions or 
deletions from the available options were recommended.  Attention is 
continually directed at the financial health of the basic annuity carrier, 
Minnesota Mutual Life Insurance Company of St. Paul.  There is a gradual 
transition of funds in the "general account" of the Faculty and P & A 
Retirement Plan from what was a 50:50 between MMLIC and Northwestern National 
Life Insurance Company, to a 100% management by MMLIC.  This transition 
eliminates one of the safe guards on the general account (the strength of two 
independent carriers) and heightens the sensitivity of the Retirement 
Subcommittee to any changes in ratings of the Minnesota Mutual Life Insurance 
Company.  Activities of the SCFA Retirement Subcommittee: (continued)

      A somewhat contentious issue within the Retirement Subcommittee was the 
offering of "enhanced phased retirement options" that would be available only 
during a window in later winter early spring of 1995 and which must be 
exercised effective June 30, 1995.  Concerns were expressed about using such 
vehicles on faculty to promote retirements and the effect that such sporadic 
offerings might have on overall faculty retirement planning.  After numerous 
deliberations, the enhanced phased retirement option was offered but was 
presented as a mixed opportunity for faculty interested in retirement and as a 
means of gradual faculty down sizing in the face of decreasing federal and 
state support.  

      Finally, the Retirement Subcommittee annually addresses the status of U 
of M Retirees who served as faculty or academic staff prior to 1963.  Those 
with service prior to that date lacked the opportunity to participate in the 
Basic Retirement Plan as it is currently administered and, therefore, can be 
at financial disadvantage (particularly during long-term retirement).  During 
the 1993-94 academic year, the Retirement Subcommittee recommended that the 
supplementation necessary to receive a minimum total income (from retirement 
annuity, social security, and U of M supplementation) be set at a minimum of 
$20,500.  That number was proposed for indexing in increments parallel to cost 
of living adjustments in social security payments for future years and was 
approved by Central Administration to be in effect 7/1/94.  While this 
approach served those with a minimum level of income, it did little for those 
between $20,500-$30,000 minimum total income.  

ACTIVITIES OF THE SCFA RETIREMENT SUBCOMMITTEE: (continued)
      In the 1994-95 academic year, the Retirement Committee proposed that all 
U-MN supplementation be adjusted parallel to social security cost of living 
adjustments for those whose minimum total income did not exceed $30,000 and 
who had appropriate service prior to 1963.  This 1993-94 recommendation was 
approved by Central Administration and is slated for implementation during the 
1995-96 academic year.  

SCFA SUBCOMMITTEE ON ADMINISTRATIVE REVIEW AND THE MINNESOTA DATA PRACTICES 
ACT:
      The issue of Central Administration and even Senior Collegiate 
Administration reviews was discussed in the Faculty Affairs Committee.  
Concerns were expressed that reviews were not uniform, review may not be as 
effective as possible, and that many of the problems seen in garnering 
information for review were hindered by the Minnesota Data Practices Act.  On 
that basis, a subcommittee was formed to investigate what faculty should know 
about the Minnesota Data Practices Act both in their day to day activities as 
well as when they provide input on administrative reviews.  The subcommittee, 
in conjunction with the General Counsel's Office and the Office of Human 
Resources, was in the process of developing a report at the end of the 1994-95 
academic year.  That report will be used when this subcommittee initiates 
discussion with a Human Resources-based administrative review subcommittee 
when they jointly develop guidelines for administrative review.  Promoting 
effective data gathering and transmission during the process under the 
provisions of the Minnesota Data Practices Act will be a major part of these 
deliberations.  This subcommittee is ongoing in to 1995-96 academic year.  

EXPLORATION IN TO A FACULTY & STAFF PRINTED INFORMATION BULLETIN OR NEWSPAPER:
      Discussions on a combination of faculty morale, the need for informed 
faculty and staff as major decisions are made (and why they were made), and 
the need to provide a forum of exchange of viewpoints precipitated a 
discussion of the need for a faculty periodical or what may loosely be called 
a "newspapers".  The relationship of this periodical to existing U of M 
printed materials such as "The Brief", "The U of M Report", the "Minnesota 
Daily" and "Footnote" were discussed.  Issues of depth of coverage, frequency 
of publication, and sources of revenue were all considered.  Under the 
guidance of Professors Carol Bland and Jim Stone, Vice President for 
University Relations, George, and Director of University Relations Fluer, an 8 
issue trial of the periodical, "KIOSK", was initiated in late spring of 1994-
95 academic year.  Marketing surveys and focus groups were initiated and 
conducted throughout the summer of 1995.  Further deliberations on the 
periodical will be undertaken early in the 1995-96 academic year son faculty 
and staff reaction to it can be judged.  An interim editorial review board was 
appointed and policies and operating parameters evolved, but will continue to 
be refined.  

ACTIVITIES OF THE SCFA SUBCOMMITTEE ON HEALTH PLANS:
      The SCFA Subcommittee on Health Plans provided input to Employee 
Benefits regarding areas of improvement of the health plan.  Deliberations 
were again initiated as to whether the University of Minnesota should remain 
as a part of the overall State of Minnesota Health Plan or whether it should 
develop its own health plan.  These discussions are ongoing.  The emphasis in 
the discussion is a combination of economic feasibility versus desirability of 
the U of M operating its own health plan.  Activities of the SCFA Subcommittee 
on Health Plans: (continued) No formal decision was made, but the activities 
of the committee will become considerably more intense in the upcoming 
academic year because the biennial parameters of the State of Minnesota plan 
will become available to faculty in the Fall of 95.  Changes, some of which 
may not be in the best interest of U-MN faculty and academic staff, are 
anticipated.  Because the U of M has no formal input on the design or 
implementation of the State of Minnesota Health Plan provisions or providers, 
concern is ever present that needs of the faculty and academic staff may not 
be given appropriate or even equitable consideration during the State of 
Minnesota deliberations.  

SCFA ACTIVITIES RELATED TO U OF M COMPENSATION COMMITTEE:
      In ordinary year where sufficient funds are available for recurring 
merit or even cost of living salary increases for faculty and academic staff, 
a Compensation Subcommittee would be convened by the Associate Vice President 
for Academic Affairs.  SCFA is represented on this Compensation Committee by 
the Chair of Faculty Affairs or his/her designate.  The subcommittee was 
convened once in the 1994-95 academic year basically to discuss the lack of 
funds available for general merit and cost of living raises for faculty and 
academic staff.  No further deliberations were undertaken because of 
insufficient funds for salary augmentation.

      As the report indicates, the Senate Committee on Faculty Affairs and its 
Subcommittees have had a busy year and anticipate that 1995-96 will be an 
equally busy year.  I would like to express my appreciation to the members for 
their thoughtful contributions and the generous sharing of their time to our 
active system of faculty consultation and governance.  I would especially like 
to thank those who term of service on SCFA ended in June of 1995.  It was 
fitting that these individuals,  as well as returning members, were recognized 
at an Assembly held during Spring Quarter of 1995.  The tasks of the 
Subcommittee Chairs merit particular mention because it is these individuals 
who foster the efficient and indepth investigation into specific issues and 
improve the efficiency of SCFA as a whole.  Many thanks!

                                                            Dan Feeney,  Chair


                          Judicial Committee
                         Annual Report 1994-95


CASE LOAD

During the 1994-95 academic year, panels of the Senate Judicial Committee held 
prehearing and/or hearing conferences in six cases (one of which included 
proceedings to rehear a case ordered by the Court of Appeals), a prehearing 
conference in one case which is on hold pending the outcome of a civil suit, 
accepted a case in which all proceedings were concluded after the complainant 
resigned, and initiated four new cases.

ISSUES

Due to the increasing complexity of the complaints before this committee, and 
the appearance of attorneys from both sides in a majority of the cases, 
extensive discussions were held throughout the 1994-95 academic year, and 
continue to be held, regarding possible changes in the rules and adjusting 
committee procedures to handle these more complicated cases.  A major, new 
contribution to the committeešs work over the past year has been the 
assistance of the committeešs legal counsel, Ms. Karen Schanfield.

MEMBERSHIP OF THE SENATE JUDICIAL COMMITTEE

The Judicial Committee is an all-faculty committee.  Its members in 1994-95 
were:  Professors David Ward, Chair; Ronald Akehurst, Hyman Berman, David 
Born, Susan Brorson, Laura Cooper, Jonathan Chaplin, Genevieve Escure, Edwin 
Fogelman, Edward Foster, David Frank, Shirley Garner, Susan Gerberich, Hillel 
Gershenson, Curtis Hoard, Edward Kaplan, David Lykken, Larry Miller, Kim 
Munholland, Steve Nickles, Carla Phillips, Angelita Reyes, Sharon Satterfield, 
Harold Schwartz, George Sheets, Patricia Tomlinson, Oriol Valls, Billie 
Wahlstrom, and Carol Wells.  

Members who served as hearing officers were Professors Hyman Berman, Shirley 
Garner, Susan Gerberich, Hillel Gershenson, Edward Foster, Kim Munholland, 
Steve Nickles, and Carol Wells.

Assignment to the Senate Judicial Committee involves work on very important 
issues and a major commitment of time and the Chair would like to commend 
members of the 1994-95 Committee for their service in this vital University 
function.


                          VIII.  OLD BUSINESS

                                  NONE


                          IX.  NEW BUSINESS

                                  NONE


                            X. ADJOURNMENT

     The meeting was adjourned at 12:55 p.m.

                                                               MARTHA KVANBECK
                                                                    ABSTRACTOR