Relating to the creation of the Dementia Prevention and Research Institute of Texas.

89(R) SB 5 - Enrolled version - Bill Text

S.B. No. 5

AN ACT

relating to the creation of the Dementia Prevention and Research

Institute of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle E, Title 2, Health and Safety Code, is

amended by adding Chapter 101A to read as follows:

CHAPTER 101A. DEMENTIA PREVENTION AND RESEARCH INSTITUTE OF TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 101A.001. DEFINITIONS. In this chapter:

(1)

"Institute" means the Dementia Prevention and

Research Institute of Texas.

(2)

"Oversight committee" means the Dementia

Prevention and Research Institute of Texas Oversight Committee.

(3)

"Peer review committee" means the Dementia

Prevention and Research Institute of Texas Peer Review Committee.

(4)

“Program integration committee” means the

Dementia Prevention and Research Institute of Texas Program

Integration Committee.

Sec.

101A.002.

PURPOSES. The Dementia Prevention and

Research Institute of Texas is established to:

(1)

create and expedite innovation in research on

dementia, Alzheimer's disease, Parkinson's disease, and related

disorders to improve the health of residents of this state, enhance

the potential for a medical or scientific breakthrough in research

on dementia, Alzheimer's disease, Parkinson's disease, and related

disorders, and enhance the research superiority of this state

regarding dementia, Alzheimer's disease, Parkinson's disease, and

related disorders; and

(2)

attract, create, or expand research capabilities

of eligible institutions of higher education and other public or

private entities by awarding grants to promote a substantial

increase in research on dementia, Alzheimer's disease, Parkinson's

disease, and related disorders, strategies for prevention of

dementia, Alzheimer's disease, Parkinson's disease, and related

disorders, and the creation of exceptional jobs in this state.

Sec.

101A.003.

SUNSET PROVISION. The Dementia Prevention

and Research Institute of Texas is subject to Chapter 325,

Government Code (Texas Sunset Act). Unless continued in existence

as provided by that chapter, the institute is abolished and this

chapter expires September 1, 2035.

Sec.

101A.004.

STATE AUDITOR. Nothing in this chapter

limits the authority of the state auditor under Chapter 321,

Government Code, or other law.

SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE

Sec. 101A.051. POWERS AND DUTIES. The institute:

(1)

may award grants to institutions of learning,

advanced medical research facilities, public or private persons,

and collaboratives in this state to further the purposes of this

chapter and Section 68, Article III, Texas Constitution, including:

(A)

research, including translational and

clinical research, into the causes of, means of prevention of, and

treatment and rehabilitation for dementia, Alzheimer's disease,

Parkinson's disease, and related disorders;

(B)

research, including translational research,

to develop therapies, protocols, medical pharmaceuticals, or

procedures for the substantial mitigation of the symptoms of

dementia, Alzheimer's disease, Parkinson's disease, and related

disorders;

(C)

facilities, equipment, and other costs

related to research on dementia, Alzheimer's disease, Parkinson's

disease, and related disorders; and

(D)

prevention programs and strategies to

mitigate the detrimental health impacts of dementia, Alzheimer's

disease, Parkinson's disease, and related disorders;

(2)

may collaborate with relevant state agencies,

coordinating councils, and consortiums to enhance health care and

research for dementia, Alzheimer's disease, Parkinson's disease,

and related disorders;

(3)

shall establish the appropriate standards and

oversight bodies to ensure money authorized under this chapter is

properly used for the purposes of this chapter;

(4)

may employ necessary staff to provide to the

institute administrative support;

(5)

may contract with another state agency to share

the cost of administrative services, including grant accounting,

grant monitoring, technical and document management of the grant

application review process, legal services, and compliance

services;

(6)

shall monitor grant contracts authorized by this

chapter and ensure each grant recipient complies with the terms and

conditions of the contract;

(7)

shall ensure all grant proposals comply with this

chapter and rules adopted under this chapter before the proposals

are submitted to the oversight committee for approval; and

(8)

shall establish procedures to document compliance

by the institute, institute employees, and institute committee

members with all laws and rules governing the peer review process

and conflicts of interest.

Sec.

101A.052.

CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE

OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall

hire a chief executive officer. The chief executive officer shall

perform the duties required by this chapter and the duties

designated by the oversight committee. The chief executive officer

must have a demonstrated ability to lead and develop academic,

commercial, and governmental partnerships and coalitions.

(b)

The institute shall employ a chief compliance officer to

monitor compliance with this chapter and rules adopted under this

chapter and to report to the oversight committee incidents of

noncompliance.

(c)

The chief executive officer may hire any other officer

position the chief executive officer determines necessary for the

institute's efficient operation.

Sec.

101A.053.

ANNUAL PUBLIC REPORT; INTERNET POSTING. Not

later than January 31 of each year, the institute shall prepare and

submit to the governor, lieutenant governor, speaker of the house

of representatives, and standing committee of each house of the

legislature with primary jurisdiction over institute matters and

post on the institute's Internet website a report on:

(1) the institute's activities under this chapter;

(2)

a list of recipients of grants awarded during the

preceding state fiscal year and the grant amount awarded to each

recipient;

(3)

any research accomplishments a grant recipient or

the recipient's partners achieved during the preceding state fiscal

year;

(4)

an overview summary of the institute's most recent

audited financial statement;

(5)

an assessment of the relationship between the

institute's grants and research program strategy;

(6)

an estimate of the financial cost to this state of

dementia, Alzheimer's disease, Parkinson's disease, and related

disorders during the most recent state fiscal year for which data is

available;

(7)

a statement of the institute's compliance program

activities, including any proposed legislation or other

recommendations identified through the activities;

(8) for the preceding state fiscal year:

(A)

a list of any conflict of interest requiring

recusal under this chapter or rules adopted under this chapter;

(B)

any unreported conflict of interest

confirmed by an investigation conducted under Section 101A.254,

including any institute actions regarding an unreported conflict of

interest and subsequent investigation; and

(C)

any waivers granted through the process

established under Section 101A.253; and

(9) the institute's future direction.

Sec.

101A.054.

INDEPENDENT FINANCIAL AUDIT. (a) The

institute shall annually commission a certified public accounting

firm to perform an independent financial audit of its activities.

The institute shall provide the audit to the comptroller.

(b) The comptroller shall:

(1)

review and evaluate the audit and annually issue a

public report of that review; and

(2)

make recommendations concerning the institute's

financial practices and performance.

(c)

The oversight committee shall review the annual

financial audit, the comptroller's public report and

recommendations, and the financial practices of the institute.

Sec.

101A.055.

GRANT RECORDS; AUDIT OF ELECTRONIC GRANT

MANAGEMENT SYSTEM. (a) The institute shall maintain complete

records of:

(1)

each grant application submitted to the institute,

including each application funded by the institute or withdrawn

after submission and the score the peer review committee assigns to

each reviewed application in accordance with rules adopted under

Section 101A.302;

(2)

each grant recipient's financial reports,

including the amount of matching money dedicated to the research

specified for the grant award;

(3) each grant recipient's progress reports;

(4)

the identity of each principal investor and owner

of each grant recipient as provided by institute rules to determine

any conflict of interest; and

(5)

the institute's review of the grant recipient's

financial reports and progress reports.

(b)

The institute shall keep each record described by

Subsection (a) until at least the 15th anniversary of the record's

date of issuance.

(c)

The institute shall have prepared periodic audits of any

electronic grant management system used to maintain records of

grant applications and grant awards. The institute shall timely

address each weakness identified in an audit of the system.

Sec.

101A.056.

GIFTS AND GRANTS. (a) The institute may

solicit and accept gifts and grants from any source for the purposes

of this chapter.

(b)

The institute may not supplement the salary of any

institute employee or officer with a gift or grant the institute

receives.

Sec.

101A.057.

PROHIBITED OFFICE LOCATION. An institute

employee may not have an office located in a facility owned by an

entity receiving or applying to receive money from the institute.

Sec.

101A.058.

COMPLIANCE PROGRAM; INVESTIGATIONS. (a)

The institute shall establish a compliance program operating under

the direction of the institute's chief compliance officer to

monitor compliance with this chapter and rules adopted under this

chapter and for use in reporting incidents of noncompliance to the

oversight committee.

(b)

The chief compliance officer or the officer's designee

shall attend and observe meetings of the peer review committee and

the program integration committee to ensure compliance with this

chapter and rules adopted under this chapter.

(c)

The chief compliance officer shall submit a written

report to the oversight committee confirming each grant application

recommendation included on the list the program integration

committee submits under Section 101A.302(a)(2) complies with the

oversight committee's rules regarding grant award procedures. The

report must contain all relevant information on:

(1) the peer review process for the grant application;

(2)

the score the peer review committee assigns to the

application;

(3)

adherence to the conflict-of-interest

notification and recusal process; and

(4)

confirmation that a recommended grant applicant

did not make any gift or grant prohibited by Section 101A.302(f).

(d)

To ensure each grant recipient complies with reporting

requirements included in the grant contract and the rules adopted

under this chapter, the institute shall implement a system to:

(1)

track the dates on which grant recipient reports

are due and are received by the institute; and

(2)

monitor the status of any required report a grant

recipient does not timely submit to the institute.

(e) The chief compliance officer shall:

(1)

monitor compliance with this section and the

status of any required report a grant recipient does not timely

submit to the institute; and

(2)

notify the institute's general counsel and the

oversight committee of a grant recipient who has not complied with

the grant contract reporting requirements to allow the institute to

suspend or terminate the contract as the institute determines

appropriate.

(f)

The chief compliance officer shall establish procedures

for investigating allegations against oversight committee members,

institute employees or contractors, grant applicants, or grant

recipients for fraud, waste, or abuse of state resources. The

procedures must include:

(1)

private access to the compliance program office,

such as a telephone hotline; and

(2)

to the extent possible, preservation of the

confidentiality of communications and the anonymity of a person who

submits a compliance report related to fraud, waste, or abuse or

participates in a compliance investigation.

SUBCHAPTER C. OVERSIGHT COMMITTEE

Sec.

101A.101.

COMPOSITION OF OVERSIGHT COMMITTEE. (a)

The oversight committee is the institute's governing body.

(b)

The oversight committee is composed of the following

nine members:

(1) three members appointed by the governor;

(2)

three members appointed by the lieutenant

governor; and

(3)

three members appointed by the speaker of the

house of representatives.

(c)

The oversight committee members must represent this

state's geographic and cultural diversity.

(d)

In making appointments to the oversight committee, the

governor, lieutenant governor, and speaker of the house of

representatives:

(1)

must each appoint at least one person who is a

physician or a scientist with extensive experience working with

dementia, Alzheimer's disease, Parkinson's disease, or related

disorders or in the field of public health; and

(2)

should attempt to include persons affected by

dementia, Alzheimer's disease, Parkinson's disease, or related

disorders or family members or caregivers of patients with

dementia, Alzheimer's disease, Parkinson's disease, or related

disorders.

(e) A person may not be an oversight committee member if:

(1)

the person or the person's spouse is employed by or

participates in the management of an entity receiving money from

the institute;

(2)

the person or the person's spouse owns or controls,

directly or indirectly, an interest in an entity receiving money

from the institute;

(3)

the person or the person's spouse uses or receives

a substantial amount of tangible goods, services, or money from the

institute, other than reimbursement authorized by this chapter for

oversight committee membership, attendance, or expenses; or

(4)

the person is a member of the Cancer Prevention and

Research Institute of Texas Oversight Committee established under

Section 102.101.

Sec.

101A.102.

REMOVAL. (a)

It is a ground for removal

from the oversight committee that a member:

(1)

is ineligible for membership under Section

101A.101(e);

(2)

cannot, because of illness or disability,

discharge the member's duties for a substantial part of the member's

term; or

(3)

is absent from more than half of the regularly

scheduled oversight committee meetings the member is eligible to

attend during a calendar year without an excuse approved by a

majority vote of the committee.

(b)

The validity of an oversight committee action is not

affected by the fact that the action is taken when a ground for

removal of a committee member exists.

(c)

If the chief executive officer has knowledge that a

potential ground for removal of a committee member exists, the

chief executive officer shall notify the presiding officer of the

oversight committee of the potential ground. The presiding officer

shall then notify the appointing authority and the attorney general

that a potential ground for removal exists. If the potential ground

for removal involves the presiding officer, the chief executive

officer shall notify the next highest ranking officer of the

oversight committee, who shall then notify the appointing authority

and the attorney general that a potential ground for removal

exists.

Sec.

101A.103.

TERMS; VACANCY. (a)

Oversight committee

members appointed by the governor, lieutenant governor, and speaker

of the house serve at the pleasure of the appointing authority for

staggered six-year terms, with the terms of three members expiring

on January 31 of each odd-numbered year.

(b)

If a vacancy occurs on the oversight committee, the

appropriate appointing authority shall appoint a successor in the

same manner as the original appointment to serve for the remainder

of the unexpired term. The appropriate appointing authority shall

appoint the successor not later than the 30th day after the date the

vacancy occurs.

Sec.

101A.104.

OFFICERS. (a)

The oversight committee

shall elect a presiding officer and assistant presiding officer

from among its members every two years. The oversight committee may

elect additional officers from among its members.

(b)

The presiding officer and assistant presiding officer

may not serve in the position to which the officer was elected for

consecutive terms.

(c) The oversight committee shall:

(1)

establish and approve duties and responsibilities

for committee officers; and

(2)

develop and implement policies that distinguish

the responsibilities of the oversight committee and the committee's

officers from the responsibilities of the chief executive officer

and institute employees.

Sec.

101A.105.

EXPENSES. An oversight committee member is

not entitled to compensation but is entitled to reimbursement for

actual and necessary expenses incurred in attending committee

meetings or performing other official duties authorized by the

presiding officer.

Sec.

101A.106.

MEETINGS. (a)

The oversight committee

shall hold at least one public meeting each quarter of the calendar

year, with appropriate notice and a formal public comment period.

(b)

The oversight committee may conduct a closed meeting in

accordance with Subchapter E, Chapter 551, Government Code, to

discuss issues related to:

(1)

managing, acquiring, or selling securities or

other revenue-sharing obligations realized under the standards

established as required by Section 101A.305; and

(2)

an ongoing compliance investigation into issues

related to fraud, waste, or abuse of state resources.

Sec.

101A.107.

POWERS AND DUTIES. (a)

The oversight

committee shall:

(1) hire a chief executive officer;

(2)

annually set priorities for each grant program

established under this chapter; and

(3)

consider the priorities set under Subdivision (2)

in awarding grants under this chapter.

(b)

The oversight committee shall adopt a code of conduct

applicable to each oversight committee member, program integration

committee member, peer review committee member, and institute

employee that includes provisions prohibiting the member,

employee, or member's or employee's spouse from:

(1)

accepting or soliciting any gift, favor, or

service that could reasonably influence the member or employee in

the discharge of official duties or that the member, employee, or

spouse knows or should know is being offered with the intent to

influence the member's or employee's official conduct;

(2)

accepting employment or engaging in any business

or professional activity that would reasonably require or induce

the member or employee to disclose confidential information

acquired in the member's or employee's official position;

(3)

accepting other employment or compensation that

could reasonably impair the member's or employee's independent

judgment in the performance of official duties;

(4)

holding a personal investment or financial

interest that could reasonably create a substantial conflict

between the private interests and official duties of the member or

employee;

(5)

intentionally or knowingly soliciting, accepting,

or agreeing to accept any benefit for exercising the member's

official powers or performing the member's or employee's official

duties in favor of another;

(6)

directly or indirectly leasing to an entity that

receives a grant from the institute any property, capital

equipment, employee, or service;

(7)

submitting a grant application for funding by the

institute;

(8)

serving on the board of directors of an

organization established with a grant from the institute; or

(9)

serving on the board of directors of a grant

recipient.

Sec.

101A.108.

RULEMAKING AUTHORITY. The oversight

committee may adopt rules to administer this chapter.

Sec.

101A.109.

FINANCIAL STATEMENT REQUIRED. Each

oversight committee member shall file with the chief compliance

officer a verified financial statement complying with Sections

572.022, 572.023, 572.024, 572.025, 572.0251, and 572.0252,

Government Code, as required of a state officer by Section 572.021

of that code.

SUBCHAPTER D. OTHER INSTITUTE COMMITTEES

Sec.

101A.151.

PEER REVIEW COMMITTEE. (a)

The oversight

committee shall establish a peer review committee. The chief

executive officer, with approval by a simple majority of the

oversight committee members, shall appoint as members to the peer

review committee:

(1)

experts in fields related to dementia, Alzheimer's

disease, Parkinson's disease, or related disorders, including

research, health care, dementia, Alzheimer's disease, and

Parkinson's disease treatment and prevention, and other study

areas; and

(2)

trained patient advocates who meet the

qualifications adopted under Subsection (c).

(b)

The oversight committee shall adopt a written policy on

in-state or out-of-state residency requirements for peer review

committee members.

(c)

The oversight committee shall adopt rules regarding the

qualifications required of a trained patient advocate for

membership on the peer review committee. The rules must require the

trained patient advocate to successfully complete science-based

training.

(d)

A peer review committee member may receive an

honorarium. Subchapter B, Chapter 2254, Government Code, does not

apply to an honorarium the member receives under this chapter.

(e)

The chief executive officer, in consultation with the

oversight committee, shall adopt a policy regarding honoraria and

document any change in the amount of honoraria paid to a peer review

committee member, including information explaining the basis for

that change.

(f)

A peer review committee member may not serve on the

board of directors or other governing board of an entity receiving a

grant from the institute.

(g)

Peer review committee members serve for terms as

determined by the chief executive officer.

Sec.

101A.152.

PROGRAM INTEGRATION COMMITTEE. (a)

The

institute shall establish a program integration committee to carry

out the duties assigned under this chapter.

(b) The program integration committee is composed of:

(1)

the chief executive officer, who serves as the

presiding officer of the program integration committee;

(2)

three senior-level institute employees

responsible for program policy and oversight, appointed by the

chief executive officer with the approval of a majority of the

oversight committee members; and

(3)

the executive commissioner or the executive

commissioner's designee.

Sec.

101A.153.

HIGHER EDUCATION ADVISORY COMMITTEE.

(a)

The higher education advisory committee is composed of the

following members:

(1)

one member appointed by the chancellor of The

University of Texas System;

(2)

one member appointed by the chancellor of The

Texas A&M University System;

(3)

one member appointed by the chancellor of the

Texas Tech University System;

(4)

one member appointed by the chancellor of the

University of Houston System;

(5)

one member appointed by the chancellor of the

Texas State University System;

(6)

one member appointed by the chancellor of the

University of North Texas System;

(7)

one member appointed by the president of Baylor

College of Medicine; and

(8)

one member appointed by the president of Rice

University.

(b)

The higher education advisory committee shall advise

the oversight committee on issues, opportunities, the role of

higher education, and other subjects involving research on

dementia, Alzheimer's disease, Parkinson's disease, and related

disorders.

Sec.

101A.154.

AD HOC ADVISORY COMMITTEE. (a)

The

oversight committee, as necessary, may create additional ad hoc

advisory committees composed of experts to advise the oversight

committee on issues relating to prevention of or research on

dementia, Alzheimer's disease, Parkinson's disease, and related

disorders or other issues related to dementia, Alzheimer's disease,

Parkinson's disease, or related disorders.

(b)

Ad hoc committee members serve for the terms the

oversight committee determines.

Sec.

101A.155.

EXPENSES.

Members of the higher education

advisory committee created under Section 101A.153 or an ad hoc

advisory committee created under Section 101A.154 serve without

compensation but are entitled to reimbursement for actual and

necessary expenses incurred in attending committee meetings or

performing other official duties authorized by the presiding

officer.

SUBCHAPTER E. DEMENTIA PREVENTION AND RESEARCH FUND

Sec.

101A.201.

DEMENTIA PREVENTION AND RESEARCH FUND.

(a)

In this subchapter, "fund" means the Dementia Prevention and

Research Fund established under Section 68, Article III, Texas

Constitution. The fund is a special fund in the treasury outside

the general revenue fund to be administered by the institute.

(b) The fund consists of:

(1)

money transferred to the fund under Section 68,

Article III, Texas Constitution;

(2)

money the legislature appropriates, credits, or

transfers to the fund; and

(3)

gifts and grants, including grants from the

federal government, and other donations received for the fund.

(c)

The fund may only be used for the purposes authorized

under Section 68, Article III, Texas Constitution, including:

(1)

the award of grants for research on or prevention

of dementia, Alzheimer's disease, Parkinson's disease, and related

disorders and research facilities in this state to conduct that

research;

(2)

the purchase of, subject to the institute's

approval, research facilities by or for a state agency or grant

recipient; and

(3) the operation of the institute.

Sec.

101A.202.

AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.

(a)

A grant recipient awarded money from the fund may use the money

for research consistent with the purposes of this chapter and in

accordance with a contract between the grant recipient and the

institute.

(b)

Except as otherwise provided by this section, grant

money awarded under this chapter may be used for authorized

expenses, including:

(1) honoraria;

(2) travel;

(3) conference fees and expenses;

(4) consumable supplies;

(5) operating expenses;

(6) contracted research and development;

(7) capital equipment; and

(8)

construction or renovation of state or private

facilities.

(c)

A grant recipient awarded money under this chapter for

research on dementia, Alzheimer's disease, Parkinson's disease, or

related disorders may not spend more than five percent of the money

for indirect costs. In this subsection, "indirect costs" means

business expenses not readily identified with a particular grant,

contract, project, function, or activity that are necessary for the

general operation of the organization or the performance of the

organization's activities.

(d)

Not more than five percent of the total amount of grant

money awarded under this chapter in a state fiscal year may be used

during that year for facility purchase, construction, remodel, or

renovation purposes, and those expenditures must benefit research

on dementia, Alzheimer's disease, Parkinson's disease, or related

disorders.

(e)

Not more than 10 percent of the total amount of grant

money awarded under this chapter in a state fiscal year may be used

during that year for prevention projects and strategies to mitigate

the incidence of dementia, Alzheimer's disease, Parkinson's

disease, or related disorders.

SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL

Sec.

101A.251.

CONFLICT OF INTEREST. (a)

The oversight

committee shall adopt conflict-of-interest rules, based on

standards applicable to members of scientific review committees of

the National Institutes of Health, to govern oversight committee

members, program integration committee members, peer review

committee members, and institute employees.

(b)

An oversight committee member, program integration

committee member, peer review committee member, or institute

employee shall recuse the member or employee, as provided by

Section 101A.252(a), (b), or (c), as applicable, if the member or

employee, or a person who is related to the member or employee

within the second degree of affinity or consanguinity, has a

professional or financial interest in an entity awarded a grant or

applying for a grant from the institute.

(c)

For purposes of Subsection (b), a person has a

professional interest in an entity awarded a grant or applying for a

grant from the institute if the person:

(1)

is a member of the board of directors, another

governing board, or any committee of the entity, or of a foundation

or similar organization affiliated with the entity, during the same

grant cycle;

(2)

serves as an elected or appointed officer of the

entity;

(3)

is an employee of or is negotiating future

employment with the entity;

(4) represents the entity;

(5)

is a professional associate of a primary member of

the entity's project team;

(6)

is, or within the preceding six years has been, a

student, postdoctoral associate, or part of a laboratory research

group for a primary member of the entity's project team;

(7)

is engaged or is actively planning to be engaged in

collaboration with a primary member of the entity's project team;

or

(8)

has long-standing scientific differences or

disagreements with a primary member of the entity's project team,

and those differences or disagreements:

(A) are known to the professional community; and

(B) could be perceived as affecting objectivity.

(d)

For purposes of Subsection (b), a person has a financial

interest in an entity awarded a grant or applying for a grant from

the institute if the person:

(1)

directly or indirectly owns or controls an

ownership interest, including sharing in profits, proceeds, or

capital gains, in an entity awarded a grant or applying for a grant

from the institute; or

(2)

could reasonably foresee that an action taken by

the oversight committee, the program integration committee, a peer

review committee, or the institute could result in a financial

benefit to the person.

(e)

Nothing in this chapter limits the oversight

committee's authority to adopt additional conflict-of-interest

standards.

Sec.

101A.252.

DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.

(a)

If an oversight committee member or program integration

committee member has a conflict of interest described by Section

101A.251 regarding an application before the member for review or

other action, the member:

(1)

shall provide written notice to the chief

executive officer and the presiding officer of the oversight

committee or the next ranking member of the committee if the

presiding officer has the conflict of interest;

(2)

shall disclose the conflict of interest in an open

meeting of the oversight committee;

(3)

shall recuse themselves from participating in the

review, discussion, deliberation, and vote on the application; and

(4)

may not access information regarding the matter to

be decided.

(b)

If a peer review committee member has a conflict of

interest described by Section 101A.251 regarding an application

before the member's committee for review or other action, the

member:

(1)

shall provide written notice to the chief

executive officer of the conflict of interest;

(2)

shall recuse themselves from participating in the

review, discussion, deliberation, and vote on the application; and

(3)

may not access information regarding the matter to

be decided.

(c)

If an institute employee has a conflict of interest

described by Section 101A.251 regarding an application before the

employee for review or other action, the employee:

(1)

shall provide written notice to the chief

executive officer of the conflict of interest;

(2)

shall recuse themselves from participating in the

review of the application; and

(3)

may not access information regarding the matter to

be decided.

(d)

An oversight committee member, program integration

committee member, peer review committee member, or institute

employee with a conflict of interest may seek a waiver as provided

by Section 101A.253.

(e)

An oversight committee member, program integration

committee member, peer review committee member, or institute

employee who reports a potential conflict of interest or another

impropriety or self-dealing of the member or employee and who fully

complies with the recommendations of the institute's general

counsel and recusal requirements is considered in compliance with

the conflict-of-interest provisions of this chapter.

The member or

employee is subject to other applicable laws, rules, requirements,

and prohibitions.

(f)

An oversight committee member, program integration

committee member, peer review committee member, or institute

employee who intentionally violates this section is subject to

removal from further participation in the institute's grant review

process.

Sec.

101A.253.

EXCEPTIONAL CIRCUMSTANCES REQUIRING

PARTICIPATION.

The oversight committee shall adopt rules governing

the waiver of the conflict-of-interest requirements of this chapter

under exceptional circumstances for an oversight committee member,

program integration committee member, peer review committee

member, or institute employee.

The rules must:

(1)

authorize the chief executive officer or an

oversight committee member to propose granting a waiver by

submitting to the oversight committee's presiding officer a written

statement about the conflict of interest, the exceptional

circumstance requiring the waiver, and any proposed limitations to

the waiver;

(2)

require a proposed waiver to be publicly reported

at an oversight committee meeting;

(3)

require a majority vote of the oversight committee

members present and voting to grant a waiver;

(4)

require any waiver granted to be included in the

annual report required by Section 101A.053; and

(5)

require the institute to retain documentation of

each waiver granted.

Sec.

101A.254.

INVESTIGATION OF UNREPORTED CONFLICTS OF

INTEREST. (a)

An oversight committee member, program integration

committee member, peer review committee member, or institute

employee who becomes aware of an unreported potential conflict of

interest described by Section 101A.251 shall immediately notify the

chief executive officer of the potential conflict of interest.

On

receipt of the notification, the chief executive officer shall

notify the institute's general counsel and the oversight

committee's presiding officer, who shall determine the nature and

extent of any unreported conflict.

(b)

A grant applicant seeking an investigation regarding

whether a prohibited conflict of interest was not reported shall

file a written request with the chief executive officer. The

applicant must:

(1)

include in the request all facts regarding the

alleged conflict of interest; and

(2)

submit the request not later than the 30th day

after the date the chief executive officer presents to the

oversight committee final funding recommendations for the affected

grant cycle.

(c)

On receipt of notification of an alleged conflict of

interest under Subsection (a) or (b), the institute's general

counsel shall:

(1) investigate the matter; and

(2)

provide to the chief executive officer and the

oversight committee's presiding officer an opinion that includes:

(A) a statement of facts;

(B)

a determination of whether a conflict of

interest or another impropriety or self-dealing exists; and

(C)

if the opinion provides that a conflict of

interest or another impropriety or self-dealing exists,

recommendations for an appropriate course of action.

(d)

If the conflict of interest, impropriety, or

self-dealing involves the oversight committee's presiding officer,

the institute's general counsel shall provide the opinion to the

next ranking oversight committee member who is not involved with

the conflict of interest, impropriety, or self-dealing.

(e)

After receiving the opinion and consulting with the

oversight committee's presiding officer, the chief executive

officer shall take action regarding the recusal of the individual

from any discussion of or access to information related to the

conflict of interest or other recommended action related to the

impropriety or self-dealing.

If the alleged conflict of interest,

impropriety, or self-dealing is held by, or is an act of, the chief

executive officer, the presiding officer of the oversight committee

shall take actions regarding the recusal or other action.

Sec.

101A.255.

FINAL DETERMINATION OF UNREPORTED CONFLICT

OF INTEREST. (a)

The chief executive officer or, if applicable,

the oversight committee's presiding officer shall make a

determination regarding the existence of an unreported conflict of

interest described by Section 101A.251 or other impropriety or

self-dealing.

The determination must specify any actions to be

taken to address the conflict of interest, impropriety, or

self-dealing, including:

(1) reconsideration of the application; or

(2)

referral of the application to another peer review

committee for review.

(b)

The determination made under Subsection (a) is

considered final unless three or more oversight committee members

request that the issue be added to the agenda of the oversight

committee.

(c)

The chief executive officer or, if applicable, the

oversight committee's presiding officer, shall provide to the grant

applicant requesting the investigation written notice of the final

determination, including any further actions to be taken.

(d)

Unless specifically determined by the chief executive

officer or, if applicable, the presiding officer of the oversight

committee, or the oversight committee, the validity of an action

taken on a grant application is not affected by the fact that an

individual who failed to report a conflict of interest participated

in the action.

SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS

Sec.

101A.301.

PEER REVIEW PROCESS FOR GRANT AWARD. The

institute shall establish a peer review process to evaluate and

recommend all grants the oversight committee awards under this

chapter.

Sec.

101A.302.

GRANT AWARD RULES AND PROCEDURES. (a) The

oversight committee shall adopt rules regarding the procedure for

awarding grants to an applicant under this chapter. The rules must

require:

(1)

the peer review committee to score grant

applications and make recommendations to the program integration

committee and the oversight committee regarding the award of

grants, including providing a prioritized list that:

(A)

ranks the grant applications in the order the

peer review committee determines applications should be funded; and

(B)

includes information explaining each grant

applicant's qualification under the peer review committee's

standards for recommendation; and

(2)

the program integration committee to submit to the

oversight committee a list of grant applications the program

integration committee by majority vote approved for recommendation

that:

(A)

includes documentation on the factors the

program integration committee considered in making the

recommendations;

(B)

is substantially based on the list submitted

by the peer review committee under Subdivision (1); and

(C)

to the extent possible, gives priority to

applications with proposals that:

(i)

may lead to immediate or long-term

medical and scientific breakthroughs in the areas of prevention or

treatment for dementia, Alzheimer's disease, Parkinson's disease,

and related disorders;

(ii)

strengthen and enhance fundamental

scientific research on dementia, Alzheimer's disease, Parkinson's

disease, and related disorders;

(iii)

ensure a comprehensive coordinated

approach to research on dementia, Alzheimer's disease, Parkinson's

disease, and related disorders;

(iv)

are interdisciplinary or

interinstitutional;

(v)

align with state priorities and needs,

including priorities and needs outlined in other state agency

strategic plans, or that address federal or other major research

sponsors' priorities in scientific or technological research in the

fields of dementia, Alzheimer's disease, Parkinson's disease, and

related disorders;

(vi)

are matched with money provided by a

private or nonprofit entity or institution of higher education;

(vii)

are collaborative between any

combination of private and nonprofit entities, public or private

agencies or institutions in this state, and public or private

institutions outside this state;

(viii)

benefit the residents of this state,

including a demonstrable economic development benefit to this

state;

(ix)

enhance research superiority at

institutions of higher education in this state by creating new

research superiority, attracting existing research superiority

from institutions outside this state and other research entities,

or attracting from outside this state additional researchers and

resources; and

(x)

expedite innovation and product

development, attract private sector entities to stimulate a

substantial increase in high-quality jobs, and increase higher

education applied science or technology research capabilities.

(b)

A peer review committee member may not attempt to use

the committee member's official position to influence a decision to

approve or award a grant or contract to the committee member's

employer.

(c)

A program integration committee member may not discuss a

grant applicant recommendation with an oversight committee member

unless the program integration committee has submitted the list

required under Subsection (a)(2).

(d)

Two-thirds of the oversight committee members present

and voting must vote to approve each grant award recommendation of

the program integration committee. If the oversight committee does

not approve a grant award recommendation of the program integration

committee, a statement explaining the reasons the recommendation

was not followed must be included in the minutes of the meeting.

(e)

The oversight committee may not award more than $300

million in grants under this chapter in a state fiscal year.

(f)

The oversight committee may not award a grant to an

applicant who has made a gift or grant to the institute, an

oversight committee member, or an institute employee on or after

January 1, 2026. This section does not apply to gifts, fees,

honoraria, or other items also excepted under Section 36.10, Penal

Code.

Sec.

101A.303.

MULTIYEAR PROJECTS. (a) The oversight

committee may approve the award of grant money for a multiyear

project.

(b)

The oversight committee shall specify the total amount

of money approved to fund the multiyear project. For purposes of

this chapter, the total amount is considered to have been awarded in

the state fiscal year the peer review committee approved the

project. The institute shall disburse only the money to be spent

during that fiscal year. The institute shall disburse the

remaining grant money as the money is needed in each subsequent

state fiscal year.

Sec.

101A.304.

CONTRACT TERMS. (a) Before disbursing

grant money awarded under this chapter, the institute shall execute

a written contract with the grant recipient. The contract shall:

(1)

specify that except for awards to state agencies

or public institutions of higher education, if all or any part of

the grant amount is used to build a capital improvement:

(A)

the state retains a lien or other interest in

the capital improvement in proportion to the percentage of the

grant amount used to pay for the capital improvement; and

(B)

the grant recipient shall, if the capital

improvement is sold:

(i)

repay to this state the grant money used

to pay for the capital improvement, with interest at the rate and

according to the other terms provided by the contract; and

(ii)

share with this state a proportionate

amount of any profit realized from the sale;

(2)

specify that if the grant recipient has not used

awarded grant money for the purposes for which the grant was

intended, the recipient shall repay that grant amount and any

related interest applicable under the contract to this state at the

agreed rate and on the agreed terms;

(3)

specify that if the grant recipient fails to meet

the terms and conditions of the contract, the institute may

terminate the contract using the written process prescribed in the

contract and require the recipient to repay the awarded grant money

and any related interest applicable under the contract to this

state at the agreed rate and on the agreed terms;

(4)

include terms relating to intellectual property

rights consistent with the standards developed by the oversight

committee under Section 101A.305;

(5)

require, in accordance with Subsection (b), the

grant recipient to dedicate an amount of matching money equal to

one-half of the amount of the grant awarded and specify the amount

of matching money to be dedicated;

(6)

specify the period in which the grant award must be

spent; and

(7)

include the specific deliverables of the project

that is the subject of the grant proposal.

(b)

Before the institute may disburse grant money, the grant

recipient must certify the recipient has available an unexpended

amount of money equal to one-half of the grant amount dedicated to

the research specified in the grant proposal. The institute shall

adopt rules specifying a grant recipient's obligations under this

chapter. At a minimum, the rules must:

(1)

allow an institution of higher education or a

private or independent institution of higher education, as those

terms are defined by Section 61.003, Education Code, a research

institute or center affiliated with the institution, or a

not-for-profit hospital system, to credit toward the recipient's

matching money the dollar amount equivalent to the difference

between the indirect cost rate negotiated by the federal government

for research grants awarded to the recipient and the indirect cost

rate authorized by Section 101A.202(c);

(2) specify that:

(A)

the recipient of more than one grant award

under this chapter may provide matching money certification at an

institutional level;

(B)

the recipient of a multiyear grant award may

yearly certify matching money; and

(C)

grant money may not be disbursed to the

recipient until the annual certification of the matching money has

been approved;

(3)

specify that money for certification purposes may

include:

(A) federal money;

(B)

the fair market value of drug development

support provided to the recipient by the National Institutes of

Health or other similar programs;

(C) this state's money;

(D) other states' money; and

(E)

nongovernmental money, including money from

private sources, foundation grants, gifts, and donations;

(4)

specify that the following items may not be used

for certification purposes:

(A) in-kind costs;

(B)

volunteer services provided to the

recipient;

(C) noncash contributions;

(D)

the recipient's preexisting real estate,

including buildings, facilities, and land;

(E)

deferred giving, including a charitable

remainder annuity trust, charitable remainder unitrust, or pooled

income fund; or

(F) any other items the institute determines;

(5)

require the recipient's certification to be

included in the grant award contract;

(6)

specify that the recipient's failure to provide

certification serves as grounds for terminating the grant award

contract;

(7)

require the recipient to maintain adequate

documentation supporting the source and use of the money required

by this subsection and to provide documentation to the institute on

request; and

(8)

require the institute to establish a procedure to

annually review the documentation supporting the source and use of

money reported in the required certification.

(c)

The institute shall establish a policy on advance

payments to grant recipients.

(d)

The oversight committee shall adopt rules to administer

this section.

Sec.

101A.305.

PATENT ROYALTIES AND LICENSE REVENUES PAID

TO STATE. (a) The oversight committee shall establish standards

requiring all grant awards to be subject to an intellectual

property agreement that allows this state to collect royalties,

income, and other benefits, including interest or proceeds

resulting from securities and equity ownership, realized as a

result of projects undertaken with grant money awarded under this

chapter.

(b)

In determining this state's interest in any

intellectual property rights, the oversight committee shall

balance the opportunity of this state to benefit from the patents,

royalties, licenses, and other benefits that result from basic

research, therapy development, and clinical trials with the need to

ensure that essential medical research is not unreasonably hindered

by the intellectual property agreement and that the agreement does

not unreasonably remove the incentive of the individual researcher,

research team, or institution.

(c)

The oversight committee may authorize the institute to

execute a contract with one or more qualified third parties for

assistance with the management, accounting, and disposition of this

state's interest in securities, equities, royalties, income, and

other benefits realized from grant money awarded under this

chapter. The institute shall implement practices and procedures

for the management, accounting, and disposition of securities,

equities, royalties, income, and other benefits the institute

determines are in this state's best interest.

Sec.

101A.306.

PREFERENCE FOR TEXAS SUPPLIERS. In a good

faith effort to achieve a goal of more than 50 percent of purchases

from suppliers in this state, the oversight committee shall

establish standards to ensure grant recipients purchase goods and

services from suppliers in this state to the extent reasonably

possible.

Sec.

101A.307.

HISTORICALLY UNDERUTILIZED BUSINESSES. The

oversight committee shall establish standards to ensure grant

recipients purchase goods and services from historically

underutilized businesses as defined by Section 2161.001,

Government Code, and any other applicable state law.

Sec.

101A.308.

GRANT COMPLIANCE AND PROGRESS EVALUATION.

(a) The institute shall require as a condition of a grant awarded

under this chapter that the grant recipient submit to regular

inspection reviews of the grant project by institute employees to

ensure compliance with the terms of the grant contract and ongoing

progress, including the scientific merit of the research.

(b)

The chief executive officer shall report at least

annually to the oversight committee on the progress and continued

merit of the projects awarded grants by the institute.

Sec.

101A.309.

MEDICAL AND RESEARCH ETHICS. A project

awarded a grant under this chapter must comply with all applicable

federal and state laws regarding the conduct of the research or a

prevention project.

Sec.

101A.310.

PUBLIC INFORMATION; CONFIDENTIAL

INFORMATION. (a) The following information is public information

and may be disclosed under Chapter 552, Government Code:

(1) a grant applicant's name and address;

(2)

the amount of money requested in an applicant's

grant proposal;

(3)

the type of research on dementia, Alzheimer's

disease, Parkinson's disease, or related disorders to be addressed

under a grant proposal; and

(4)

any other information the institute designates

with the consent of a grant applicant.

(b)

To protect the actual or potential value of information

submitted to the institute by an applicant for or recipient of a

grant under this chapter, the following information submitted by

the applicant or recipient is confidential and is not subject to

disclosure under Chapter 552, Government Code, or any other law:

(1)

all information, other than the information

described under Subsection (a), contained in a grant application,

peer review evaluation, award contract, or progress report relating

to a product, device, or process, the application or use of the

product, device, or process, and all technological and scientific

information, including computer programs, developed wholly or

partly by the applicant or recipient, regardless of whether

patentable or capable of being registered under copyright or

trademark laws, that has a potential for being sold, traded, or

licensed for a fee; and

(2)

the plans, specifications, blueprints, and

designs, including related proprietary information, of a

scientific research and development facility.

(c)

The following information is confidential and not

subject to disclosure under Chapter 552, Government Code:

(1)

information that directly or indirectly reveals

the identity of an individual who reports fraud, waste, or abuse of

state resources to the institute's compliance program office, seeks

guidance from the office, or participates in an investigation

conducted under the compliance program;

(2)

information that directly or indirectly reveals

the identity of an individual who is alleged to have or may have

planned, initiated, or participated in activities specified in a

report submitted to the office if, after completing an

investigation, the office determines the report to be

unsubstantiated or without merit; and

(3)

other information collected or produced in a

compliance program investigation if releasing the information

would interfere with an ongoing compliance investigation.

(d)

Subsection (c) does not apply to information related to

an individual who consents to the information's disclosure.

(e)

Information made confidential or excepted from public

disclosure by this section may be made available, on request and in

compliance with applicable laws and procedures, to the following:

(1) a law enforcement agency or prosecutor;

(2)

a governmental agency responsible for

investigating the matter specified in a compliance report,

including the Texas Workforce Commission civil rights division or

the Equal Employment Opportunity Commission; or

(3)

a committee member or institute employee who is

responsible under institutional policy for a compliance program

investigation or for a review of a compliance program

investigation.

(f)

A disclosure under Subsection (e) is not a voluntary

disclosure for purposes of Section 552.007, Government Code.

(g)

The institute shall post on the institute's Internet

website records that pertain specifically to any gift, grant, or

other consideration provided to the institute, an institute

employee, or an oversight committee member, in the employee's or

member's official capacity. The posted information must include

each donor's name and the amount and date of the donor's donation.

SECTION 2. Section 51.955(c), Education Code, is amended to

read as follows:

(c) Subsection (b)(1) does not apply to a research contract

between an institution of higher education and the Cancer

Prevention and Research Institute of Texas
or Dementia Prevention

and Research Institute of Texas
.

SECTION 3. Section 572.003(c), Government Code, is amended

to read as follows:

(c) The term means a member of:

(1) the Public Utility Commission of Texas;

(2) the Texas Commission on Environmental Quality;

(3) the Texas Alcoholic Beverage Commission;

(4) the Finance Commission of Texas;

(5) the Texas Facilities Commission;

(6) the Texas Board of Criminal Justice;

(7) the board of trustees of the Employees Retirement

System of Texas;

(8) the Texas Transportation Commission;

(9) the Texas Department of Insurance;

(10) the Parks and Wildlife Commission;

(11) the Public Safety Commission;

(12) the Texas Ethics Commission;

(13) the State Securities Board;

(14) the Texas Water Development Board;

(15) the governing board of a public senior college or

university as defined by Section 61.003, Education Code, or of The

University of Texas Southwestern Medical Center, The University of

Texas Medical Branch at Galveston, The University of Texas Health

Science Center at Houston, The University of Texas Health Science

Center at San Antonio, The University of Texas M. D. Anderson Cancer

Center, The University of Texas Health Science Center at Tyler,

University of North Texas Health Science Center at Fort Worth,

Texas Tech University Health Sciences Center, Texas State Technical

College--Harlingen, Texas State Technical College--Marshall, Texas

State Technical College--Sweetwater, or Texas State Technical

College--Waco;

(16) the Texas Higher Education Coordinating Board;

(17) the Texas Workforce Commission;

(18) the board of trustees of the Teacher Retirement

System of Texas;

(19) the Credit Union Commission;

(20) the School Land Board;

(21) the board of the Texas Department of Housing and

Community Affairs;

(22) the Texas Racing Commission;

(23) the State Board of Dental Examiners;

(24) the Texas Medical Board;

(25) the Board of Pardons and Paroles;

(26) the Texas State Board of Pharmacy;

(27) the Department of Information Resources

governing board;

(28) the board of the Texas Department of Motor

Vehicles;

(29) the Texas Real Estate Commission;

(30) the board of directors of the State Bar of Texas;

(31) the Bond Review Board;

(32) the Health and Human Services Commission;

(33) the Texas Funeral Service Commission;

(34) the board of directors of a river authority

created under the Texas Constitution or a statute of this state;

(35) the Texas Lottery Commission; [
or
]

(36) the Cancer Prevention and Research Institute of

Texas
; or

(37)

the Dementia Prevention and Research Institute of

Texas
.

SECTION 4. (a) Not later than December 31, 2025, the

appropriate appointing authority shall appoint the members to the

Dementia Prevention and Research Institute of Texas Oversight

Committee as required by Section 101A.101, Health and Safety Code,

as added by this Act. The oversight committee may not act until a

majority of the appointed members have taken office.

(b) Notwithstanding Section 101A.101, Health and Safety

Code, as added by this Act, in making the initial appointments under

that section, the governor, lieutenant governor, and speaker of the

house of representatives shall, as applicable, designate one member

of the Dementia Prevention and Research Institute of Texas

Oversight Committee appointed by that person to serve a term

expiring January 31, 2027, one member appointed by that person to

serve a term expiring January 31, 2029, and one member appointed by

that person to serve a term expiring January 31, 2031.

(c) Notwithstanding Section 101A.104, Health and Safety

Code, as added by this Act, the governor shall designate a member

the governor appoints under Subsection (b) of this section to serve

as the initial presiding officer of the Dementia Prevention and

Research Institute of Texas Oversight Committee.

(d) Not later than January 31, 2026, the Dementia Prevention

and Research Institute of Texas Oversight Committee established

under Section 101A.101, Health and Safety Code, as added by this

Act, shall hold its first meeting at a location determined by the

presiding officer of the Dementia Prevention and Research Institute

of Texas Oversight Committee designated under Subsection (c) of

this section.

SECTION 5. If the voters approve the constitutional

amendment proposed by the 89th Legislature, Regular Session, 2025,

providing for the establishment of the Dementia Prevention and

Research Institute of Texas, establishing the Dementia Prevention

and Research Fund to provide money for research on and prevention

and treatment of dementia, Alzheimer's disease, Parkinson's

disease, and related disorders in this state, and transferring to

that fund $3 billion from state general revenue, the Dementia

Prevention and Research Institute of Texas established by Chapter

101A, Health and Safety Code, as added by this Act, is eligible for

funding to be deposited under the authority of Section 68, Article

III, Texas Constitution, for the institute to engage in any

activities serving the purposes of that constitutional provision.

SECTION 6. This Act takes effect December 1, 2025, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, providing for the establishment of the

Dementia Prevention and Research Institute of Texas, establishing

the Dementia Prevention and Research Fund to provide money for

research on and prevention and treatment of dementia, Alzheimer's

disease, Parkinson's disease, and related disorders in this state,

and transferring to that fund $3 billion from state general revenue

is approved by the voters. If that amendment is not approved by the

voters, this Act has no effect.

______________________________

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 5 passed the Senate on

March 5, 2025, by the following vote: Yeas 29, Nays 2; and that

the Senate concurred in House amendment on May 12, 2025, by the

following vote: Yeas 29, Nays 1.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 5 passed the House, with

amendment, on April 24, 2025, by the following vote: Yeas 121,

Nays 23, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor