Texas 2013 - 83rd Regular

Texas House Bill HB951 Latest Draft

Bill / Introduced Version

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                            By: Keffer H.B. No. 951


 A BILL TO BE ENTITLED
 AN ACT
 relating to the Cancer Prevention and Research Institute of Texas.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 102.001, Health and Safety Code, is
 amended by amending Subdivision (3) to read as follows:
 (3)  "Research and prevention programs committee"
 means the Cancer Prevention and Research Institute of Texas
 Scientific Research and Prevention Programs committees appointed
 by the chief executive officer [director].
 SECTION 2.  Section 102.051, Health and Safety Code, is
 amended by amending Subsection (a) and adding Subsection (c) to
 read as follows:
 (a)  The institute may:
 (1)  make grants to provide funds to public or private
 persons to implement the Texas Cancer Plan, and may make grants to
 institutions of learning and to advanced medical research
 facilities and collaborations in this state for:
 (A)  research into the causes of and cures for all
 types of cancer in humans;
 (B)  facilities for use in research into the
 causes of and cures for cancer;
 (C)  research, including translational research,
 to develop therapies, protocols, medical pharmaceuticals, or
 procedures for the cure or substantial mitigation of all types of
 cancer in humans; and
 (D)  cancer prevention and control programs in
 this state to mitigate the incidence of all types of cancer in
 humans;
 (2)  support institutions of learning and advanced
 medical research facilities and collaborations in this state in all
 stages in the process of finding the causes of all types of cancer
 in humans and developing cures, from laboratory research to
 clinical trials and including programs to address the problem of
 access to advanced cancer treatment;
 (3)  establish the appropriate standards and oversight
 bodies to ensure the proper use of funds authorized under this
 chapter for cancer research and facilities development;
 (4)  [employ an executive director as determined by the
 oversight committee;
 [(5)]  employ necessary staff to provide
 administrative support; and
 (5) [(6)]  monitor contracts and agreements authorized
 by this chapter.
 (c)  The institute shall employ a compliance officer, who,
 under the direction of the chief executive officer, shall ensure
 that:
 (1)  all grant proposals comply with this chapter and
 rules adopted under this chapter before being submitted to the
 oversight committee for approval;
 (2)  the institute, its employees, and its committee
 members appointed under this chapter comply with all laws and rules
 governing the peer review process and conflicts of interest; and
 (3)  each grant recipient complies with the terms of
 the grant contract.
 SECTION 3.  Subchapter B, Chapter 102, Health and Safety
 Code, is amended by adding Section 102.0511 to read as follows:
 Sec. 102.0511.  CHIEF EXECUTIVE OFFICER; OTHER OFFICERS. (a)
 The oversight committee shall hire a chief executive officer. Under
 the direction of the oversight committee, the chief executive
 officer shall perform the duties required by this chapter or
 designated by the oversight committee.
 (b)  The chief executive officer must have:
 (1)  broad scientific and clinical experience;
 (2)  a balanced research and development portfolio; and
 (3)  a demonstrated ability to lead and develop
 academic, commercial, and governmental partnerships and
 coalitions.
 (c)  The chief executive officer shall hire:
 (1)  one chief scientific officer, who reports directly
 to the chief executive officer;
 (2)  one chief operating officer, who reports directly
 to the chief executive officer; and
 (3)  one development officer, who reports directly to
 the chief executive officer and assists in attracting
 public-private partnerships to further cancer research.
 SECTION 4.  Section 102.052(a), Health and Safety Code, is
 amended to read as follows:
 (a)  The institute shall issue an annual public report
 outlining the institute's activities, grants awarded, grants in
 progress, research accomplishments, and future program
 directions.  The report must include:
 (1)  the number and dollar amounts of research and
 facilities grants;
 (2)  identification of the grant recipients for the
 reported year;
 (3)  the institute's administrative expenses;
 (4)  an assessment of the availability of funding for
 cancer research from sources other than the institute;
 (5)  a summary of findings of research funded by the
 institute, including promising new research areas;
 (6)  an assessment of the relationship between the
 institute's grants and the overall strategy of its research
 program;
 (7)  a statement of the institute's strategic research
 and financial plans; [and]
 (8)  an estimate of how much cancer has cost the state
 during the year, including the amounts spent by the state relating
 to cancer by the child health program, the Medicaid program, the
 Teacher Retirement System of Texas, and the Employees Retirement
 System of Texas; and
 (9)  a statement of the institute's compliance program
 activities, including any proposed legislation or other
 recommendations identified through the activities.
 SECTION 5.  Section 102.056, Health and Safety Code, is
 amended to read as follows:
 Sec. 102.056.  SALARY. The institute may supplement the
 salary of the chief executive officer [director] and other senior
 institute staff members.  Funding for a salary supplement may come
 from gifts, grants, donations, or appropriations.
 SECTION 6.  Subchapter B, Chapter 102, Health and Safety
 Code, is amended by adding Sections 102.057 through 102.063 to read
 as follows:
 Sec. 102.057.  PROHIBITED OFFICE LOCATION. An institute
 employee may not have an office in a facility owned by an entity
 receiving or applying to receive money from the institute.
 Sec. 102.058.  CONFLICT OF INTEREST REQUIRING RECUSAL. (a)
 An oversight committee member or institute employee shall disclose
 in writing to the chief executive officer if the member, the
 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 receiving or
 applying to receive money from the institute.
 (b)  The member or employee described by Subsection (a) shall
 recuse himself or herself from the institute's consideration of
 grant applications from the entity receiving or applying to receive
 money from the institute as provided by Section 102.062(a) or (b),
 as applicable.
 (c)  A person has a professional interest in an entity
 receiving or applying to receive money from the institute if the
 person:
 (1)  is a member of the board of directors, the other
 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 or of a foundation or similar organization affiliated with
 the entity;
 (3)  is an employee of or is negotiating future
 employment with the entity or with a foundation or similar
 organization affiliated with the entity;
 (4)  represents the entity or a foundation or similar
 organization affiliated with the entity;
 (5)  is a professional associate of a primary member of
 the entity's research or prevention program 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 research or prevention
 program team;
 (7)  is engaged or is actively planning to be engaged in
 collaboration with a primary member of the entity's research or
 prevention program team; or
 (8)  has long-standing scientific differences or
 disagreements with a primary member of the entity's research or
 prevention program team, and those differences:
 (A)  are known to the professional community; and
 (B)  could be perceived as affecting objectivity.
 (d)  A person has a financial interest in an entity receiving
 or applying to receive money from the institute if the person:
 (1)  owns or controls, directly or indirectly, an
 ownership interest, including sharing in profits, proceeds, or
 capital gains, in an entity receiving or applying to receive money
 from the institute or in a foundation or similar organization
 affiliated with the entity; or
 (2)  could reasonably foresee that an action taken by a
 scientific research and prevention program committee, the
 institute, or the oversight committee could result in financial
 benefit to the person.
 Sec. 102.059.  STANDARDS OF CONDUCT. (a) An oversight
 committee member or institute employee may not:
 (1)  accept or solicit any gift, favor, or service that
 could reasonably influence the member or employee in the discharge
 of official duties or that the member or employee knows or should
 know is being offered with the intent to influence the member's or
 employee's official conduct;
 (2)  accept employment or engage 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)  accept other employment or compensation that could
 reasonably impair the member's or employee's independent judgment
 in the performance of official duties;
 (4)  make personal investments or have a financial
 interest that could reasonably create a substantial conflict
 between the member's or employee's private interest and the member's
 or employee's official duties;
 (5)  intentionally or knowingly solicit, accept, or
 agree 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; or
 (6)  lease, directly or indirectly, any property,
 capital equipment, employee, or service to any program, business
 entity, organization, or institution that receives a grant from the
 institute.
 (b)  An oversight committee member or the member's spouse may
 not:
 (1)  submit a grant application for funding by the
 institute;
 (2)  be employed by or participate in the management of
 a business entity or other organization receiving money from the
 institute;
 (3)  own or control, directly or indirectly, a
 financial interest in a business entity or other organization
 receiving money from the institute; or
 (4)  use or receive a substantial amount of tangible
 goods, services, or money from the institute other than
 reimbursement authorized for attendance or expenses.
 (c)  An oversight committee member, an institute employee,
 or an individual related to the employee within the second degree of
 affinity or consanguinity may not serve on the board of directors or
 other governing board of a nonprofit organization established to
 provide support to the institute.
 (d)  An institute employee may not serve on the board of
 directors of a nonprofit organization established with a grant from
 the institute.
 (e)  An employee of a nonprofit organization established
 with a grant from the institute may not serve on the
 commercialization review council.
 (f)  The institute may not participate in a business decision
 of a nonprofit organization established with a grant from the
 institute.
 (g)  Notwithstanding Section 102.156, a member of a research
 and prevention programs committee appointed under this chapter may
 not serve on the board of directors or other governing board of an
 entity receiving a grant from the institute or of a foundation or
 similar organization affiliated with the entity.
 Sec. 102.060.  INVESTIGATION OF CONFLICTS OF INTEREST. (a)
 An oversight committee member, a committee member, or an institute
 employee shall immediately notify the chief executive officer of a
 conflict of interest, including a professional or financial
 interest described by Section 102.058 or 102.156. On notification,
 the chief executive officer shall notify the presiding officer of
 the oversight committee and the general counsel, who shall
 determine the nature and extent of any 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 institute's 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 final funding
 recommendations for the affected grant cycle to the oversight
 committee.
 (c)  On 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
 presiding officer of the oversight committee 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 involves the presiding
 officer of the oversight committee, 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
 presiding officer of the oversight committee, 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, 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.
 Sec. 102.061.  FINAL DETERMINATION OF CONFLICT OF INTEREST.
 (a) The chief executive officer or, if applicable, the presiding
 officer of the oversight committee shall make a final determination
 regarding the existence of a conflict of interest, impropriety, or
 self-dealing. The final 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 scientific
 research and prevention programs committee for review.
 (b)  The final determination 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 shall provide written
 notice of the final determination, including any further actions to
 be taken, to the grant applicant requesting an investigation.
 (d)  Unless specifically determined by the chief executive
 officer 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.
 Sec. 102.062.  DISCLOSURE OF CONFLICT OF INTEREST. (a) If an
 oversight committee member has a conflict of interest, including a
 professional or financial interest described by Section 102.058,
 regarding an application that comes before the member for review or
 other action, the member shall:
 (1)  notify the chief executive officer, as provided by
 Section 102.058, 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)  disclose the conflict of interest in an open
 meeting of the oversight committee; and
 (3)  recuse himself or herself from participating in
 the review, discussion, deliberation, and vote on the application
 and from accessing information regarding the matter to be decided.
 (b)  If an institute employee has a conflict of interest,
 including a professional or financial interest described by Section
 102.058, regarding an application that comes before the employee
 for review or other action, the employee shall:
 (1)  notify the chief executive officer of the conflict
 of interest; and
 (2)  recuse himself or herself from participating in
 the review of the application and be prevented from accessing
 information regarding the matter to be decided.
 (c)  An oversight 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 general counsel and recusal 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.
 (d)  An oversight 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. 102.063.  ADDITIONAL DUTIES OF COMPLIANCE OFFICER. (a)
 The compliance officer shall adopt and implement a policy on
 in-state or out-of-state residency requirements for members of the
 commercialization review council.
 (b)  The compliance officer shall retain documentation
 relating to:
 (1)  each grant recipient's financial reports;
 (2)  each grant recipient's progress reports; and
 (3)  institute reviews of the financial reports and
 progress reports.
 (c)  The compliance officer shall adopt and implement a
 system to track the date on which a grant recipient's report:
 (1)  is due; and
 (2)  is received by the institute.
 (d)  The compliance officer shall inquire into and monitor
 the status of any required report that is not timely submitted to
 the institute by a grant recipient.
 (e)  The compliance officer shall develop and implement a
 policy on advance payments to grant recipients.
 SECTION 7.  Section 102.101(e), Health and Safety Code, is
 amended to read as follows:
 (e)  A person may not be a member of the oversight committee
 if, at the time the person is appointed, the person or the person's
 spouse:
 (1)  is employed by or participates in the management
 of a business entity or other organization receiving money from the
 institute;
 (2)  owns or controls, directly or indirectly, an [more
 than a five percent] interest in a business entity or other
 organization receiving money from the institute; or
 (3)  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.
 SECTION 8.  Section 102.102(c), Health and Safety Code, is
 amended to read as follows:
 (c)  If the chief executive officer [director] has knowledge
 that a potential ground for removal exists, the chief executive
 officer [director] 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 [director] 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.
 SECTION 9.  Section 102.103(a), Health and Safety Code, is
 amended to read as follows:
 (a)  Oversight committee members appointed by the governor,
 lieutenant governor, and speaker of the house serve at the pleasure
 of the appointing officer for staggered six-year terms, with the
 terms of three members expiring on January 31 of each odd-numbered
 year.
 SECTION 10.  Section 102.104, Health and Safety Code, is
 amended to read as follows:
 Sec. 102.104.  OFFICERS. (a) The oversight committee shall
 select a presiding officer from among its members.
 (b)  The presiding officer may not serve more than two years.
 SECTION 11.  Section 102.107, Health and Safety Code, is
 amended to read as follows:
 Sec. 102.107.  POWERS AND DUTIES. The oversight committee
 shall:
 (1)  hire a chief [an] executive officer;
 (2)  annually set priorities, as prescribed by the
 Legislature, for each grant program and each category of funded
 research that receives money under this chapter; and
 (3)  consider the priorities set under Subdivision (2)
 in awarding grants under this chapter [director].
 SECTION 12.  Section 102.151, Health and Safety Code, is
 amended by amending Subsections (a-1) and (b) and adding
 Subsections (c), (e), and (f) to read as follows:
 (a-1)  The chief executive officer [director], with approval
 by simple majority of the members of the oversight committee, shall
 appoint as members of scientific research and prevention programs
 committees experts in the field of cancer research and prevention.
 (b)  Individuals appointed to [the] research and prevention
 programs committees [committee] may be residents of this state or
 another state.
 (c)  The oversight committee shall establish as scientific
 research and prevention programs committees the following standing
 review committees:
 (1)  a basic research committee;
 (2)  a translation research committee;
 (3)  an infrastructure committee; and
 (4)  a multidisciplinary committee.
 (e)  The oversight committee, as the oversight committee
 considers necessary, may add committee members to a scientific
 research and prevention programs committee or standing review
 committee.
 (f)  The chief executive officer, in consultation with the
 oversight committee, shall implement a system to document any
 change in the amount of honorarium paid to a member of a scientific
 research and prevention programs committee, including information
 explaining the basis for changing the amount.
 SECTION 13.  Section 102.152, Health and Safety Code, is
 amended to read as follows:
 Sec. 102.152.  TERMS OF RESEARCH AND PREVENTION PROGRAMS
 COMMITTEE MEMBERS. Members of a research and prevention programs
 committee serve for terms as determined by the chief executive
 officer [director].
 SECTION 14.  Section 102.156, Health and Safety Code, is
 amended by amending Subsections (a) and (c) and adding Subsection
 (d) to read as follows:
 (a)  A member of a research and prevention programs
 committee, the university advisory committee, or any ad hoc
 committee appointed under this subchapter shall disclose in writing
 to the chief executive officer [director] if the member has a
 professional [an interest in a matter that comes before the
 member's committee] or [has a substantial] financial interest in an
 entity that has a direct interest in a [the] matter that comes
 before the member's committee.
 (c)  A person has a [substantial] financial interest in an
 entity if the person:
 (1)  is an employee, member, director, or officer of
 the entity; or
 (2)  owns or controls, directly or indirectly, an [more
 than a five percent] interest in the entity.
 (d)  A person has a professional interest in an entity
 receiving or applying to receive money from the institute if the
 person:
 (1)  is a member of the board of directors, the other
 governing board, or any committee of 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 research or prevention program applicant's 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 research or prevention
 program applicant's team;
 (7)  is engaged or is actively planning to be engaged in
 collaboration with a primary member of the entity's research or
 prevention program applicant's team; or
 (8)  has long-standing scientific differences or
 disagreements with a primary member of the entity's research or
 prevention program applicant's team, and those differences:
 (A)  are known to the professional community; and
 (B)  could be perceived as affecting objectivity.
 SECTION 15.  Section 102.251, Health and Safety Code, is
 amended by amending Subsection (a) and adding Subsections (c), (d),
 and (e) to read as follows:
 (a)  The oversight committee shall issue rules regarding the
 procedure for awarding grants to an applicant under this chapter.
 The rules must require grant applications to include specific
 periodic deliverables that if not met prohibit continued grant
 funding.  The rules must include the following procedures:
 (1)  a research and prevention programs committee shall
 semiquantitatively rate [review] grant applications according to
 predetermined categories and make recommendations to the Program
 Integration Committee, established under Subchapter G, [executive
 director] regarding the award of cancer research grants, including
 a prioritized list that:
 (A)  ranks the grant applications in the order the
 committee determines applications should be funded; and
 (B)  includes information explaining how each
 grant application on the list meets the research and prevention
 programs committee's standards for recommendation;
 (2)  the Program Integration Committee [executive
 director] shall submit to the oversight committee a list of grant
 applications, including documentation on the factors the Program
 Integration Committee considered in making the grant
 recommendations, that is substantially based on the list submitted
 by the committee under Subdivision (1) and, to the extent possible,
 gives priority to proposals that:
 (A)  could lead to immediate or long-term medical
 and scientific breakthroughs in the area of cancer prevention or
 cures for cancer;
 (B)  strengthen and enhance fundamental science
 in cancer research;
 (C)  ensure a comprehensive coordinated approach
 to cancer research;
 (D)  are interdisciplinary or interinstitutional;
 (E)  address federal or other major research
 sponsors' priorities in emerging scientific or technology fields in
 the area of cancer prevention or cures for cancer;
 (F)  are matched with funds available by a private
 or nonprofit entity and institution or institutions of higher
 education;
 (G)  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;
 (H)  have a demonstrable economic development
 benefit to this state;
 (I)  enhance research superiority at institutions
 of higher education in this state by creating new research
 superiority, attracting existing research superiority from
 institutions not located in this state and other research entities,
 or enhancing existing research superiority by attracting from
 outside this state additional researchers and resources; and
 (J)  expedite innovation and commercialization,
 attract, create, or expand private sector entities that will drive
 a substantial increase in high-quality jobs, and increase higher
 education applied science or technology research capabilities; and
 (3)  the institute's chief scientific officer and
 development officer shall compare the list of grant applicants
 submitted to the oversight committee under Subdivision (2) to a
 list of donors from any nonprofit organization established to
 provide support to the institute compiled from information made
 available under Section 102.262(c).
 (c)  The chief executive officer shall submit a written
 affidavit for each grant application recommendation included on the
 list submitted to the oversight committee under Subsection (a)(2).
 The affidavit must contain all relevant information on:
 (1)  the peer review process for the grant application;
 (2)  the application's peer review score;
 (3)  the pre-grant due diligence reviews of the
 application; and
 (4)  if applicable, the intellectual property reviews
 of the application.
 (d)  The chief executive officer may not discuss a grant
 applicant recommendation with a member of the oversight committee
 unless the chief executive officer has fulfilled the requirements
 of Subsections (a)(2) and (c).
 (e)  The institute may not award a grant to an applicant who
 has made a gift or grant to a nonprofit organization established to
 provide support to the institute.
 SECTION 16.  Section 102.252, Health and Safety Code, is
 amended to read as follows:
 Sec. 102.252.  FUNDING [OVERRIDING] RECOMMENDATIONS. (a)
 The oversight committee must follow the funding recommendations of
 the chief executive officer [director] in the order the chief
 executive officer [director] submits the applications to the
 oversight committee unless two-thirds of the members of the
 oversight committee vote to disregard a recommendation.
 (b)  The oversight committee shall approve or disapprove
 each grant application submitted to the committee by the chief
 executive officer.
 SECTION 17.  Section 102.255(d), Health and Safety Code, is
 amended to read as follows:
 (d)  Before the oversight committee may make for cancer
 research any grant of any proceeds of the bonds issued under
 Subchapter E, the recipient of the grant must have an amount of
 funds equal to one-half of the grant and dedicate those funds to the
 specific grant proposal dedicated to the research that is the
 subject of the grant request.
 SECTION 18.  Sections 102.260(b) and (c), Health and Safety
 Code, are amended to read as follows:
 (b)  The chief executive officer [director] shall determine
 the grant review process under this section.  The chief executive
 officer [director] may terminate grants that do not meet
 contractual obligations.
 (c)  The chief executive officer [director] shall report at
 least annually to the oversight committee on the progress and
 continued merit of each research program funded by the institute.
 SECTION 19.  Section 102.262, Health and Safety Code, is
 amended by adding Subsection (c) to read as follows:
 (c)  The records of the institute and of a nonprofit
 organization established to provide support to the institute shall,
 to the extent the records pertain specifically to any gift, grant,
 or other consideration provided by the organization to the
 institute, an employee of the institute, or a member of a committee
 of the institute, be made available to the public.  A record that is
 available under this subsection is public information subject to
 Chapter 552, Government Code.
 SECTION 20.  Subchapter F, Chapter 102, Health and Safety
 Code, is amended by adding Section 102.263 to read as follows:
 Sec. 102.263.  COMPLIANCE PROGRAM.  (a)  In this section,
 "compliance program" means a process to assess and ensure
 compliance by the institute's committee members and employees with
 applicable laws, rules, and policies, including matters of:
 (1)  ethics and standards of conduct;
 (2)  financial reporting;
 (3)  internal accounting controls; and
 (4)  auditing.
 (b)  The institute shall establish a compliance program that
 operates under the direction of the institute's compliance officer.
 The institute may establish procedures, such as a telephone
 hotline, to allow private access to the compliance program office
 and to preserve the confidentiality of communications and the
 anonymity of a person making a compliance report or participating
 in a compliance investigation.
 (c)  The following are confidential:
 (1)  information that directly or indirectly reveals
 the identity of an individual who made a report to the institute's
 compliance program office, sought guidance from the office, or
 participated in an investigation conducted under the compliance
 program; and
 (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 that are the
 subject of a report made to the office if, after completing an
 investigation, the office determines the report to be
 unsubstantiated or without merit.
 (d)  Subsection (c) does not apply to information related to
 an individual who consents to disclosure of the information.
 (e)  Information is excepted from disclosure under Chapter
 552, Government Code, if it is collected or produced in a compliance
 program investigation and releasing the information would
 interfere with an ongoing compliance investigation.
 (f)  Information made confidential or excepted from public
 disclosure by this section may be made available to the following on
 request in compliance with applicable law and procedure:
 (1)  a law enforcement agency or prosecutor;
 (2)  a governmental agency responsible for
 investigating the matter that is the subject of a compliance
 report, including the Texas Workforce Commission civil rights
 division or the federal 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.
 (g)  A disclosure under Subsection (f) is not a voluntary
 disclosure for purposes of Section 552.007, Government Code.
 SECTION 21.  Chapter 102, Health and Safety Code, is amended
 by adding Subchapter G to read as follows:
 SUBCHAPTER G. PROGRAM INTEGRATION COMMITTEE
 Sec. 102.301.  COMPOSITION. (a) The program integration
 committee is composed of the following seven members:
 (1)  the chief executive officer;
 (2)  the chief scientific officer;
 (3)  the development officer;
 (4)  the commissioner of state health services;
 (5)  one member appointed by the governor;
 (6)  one member appointed by the lieutenant governor;
 and
 (7)  one member appointed by the speaker of the house of
 representatives.
 (b)  The members appointed under Subsections(a)(5)-(7) must
 have expertise in academic science or business.
 Sec. 102.302.  DUTIES. The program integration committee
 shall:
 (1)  review and assess the ratings assigned by a
 research and prevention programs committee in its initial review of
 grant applications;
 (2)  prioritize the applications that the committee
 determines will have the greatest impact on the health and economy
 of this state;
 (3)  prepare grant application recommendations for the
 oversight committee;
 (4)  make recommendations to the oversight committee
 concerning the development and maintenance of any institute
 investment grants and other investments, including any investment
 requirements prescribed by the legislature or under state law; and
 (5)  ensure that the institute does not duplicate other
 cancer-related research, including research conducted by the
 United States Department of Health and Human Services National
 Institutes of Health.
 SECTION 22.  (a)  As soon as practicable after the effective
 date of this Act, the Cancer Prevention and Research Institute of
 Texas Oversight Committee shall adopt the rules necessary to
 implement the changes in law made by this Act.
 (b)  The changes in law made by this Act apply only to a grant
 application submitted to the Cancer Prevention and Research
 Institute of Texas on or after the effective date of this Act.  A
 grant application submitted before the effective date of this Act
 is governed by the law in effect on the date the application was
 submitted, and that law is continued in effect for that purpose.
 (c)  Not later than January 1, 2014, employees, oversight
 committee members, and members of other committees of the Cancer
 Prevention and Research Institute of Texas must comply with the
 changes in law made by this Act regarding the qualifications of the
 employees and members.
 (d)  Not later than December 1, 2013, the Cancer Prevention
 and Research Institute of Texas Oversight Committee shall employ a
 chief executive officer and a compliance officer as required by
 Sections 102.051(c) and 102.0511, Health and Safety Code, as added
 by this Act.
 (e)  As soon as practicable after the effective date of this
 Act, the Cancer Prevention and Research Institute of Texas
 Oversight Committee shall establish a compliance program as
 required by Section 102.263, Health and Safety Code, as added by
 this Act.
 SECTION 23.  This Act takes effect immediately if it
 receives a vote of two-thirds of all the members elected to each
 house, as provided by Section 39, Article III, Texas Constitution.
 If this Act does not receive the vote necessary for immediate
 effect, this Act takes effect September 1, 2013.