83R27428 AED-D
By: Nelson, et al. S.B. No. 149
(Keffer, Thompson of Harris, S. Davis of Harris, Morrison,
Martinez Fischer, et al.)
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 adding Subdivision (2-a) and amending Subdivision (3) to
read as follows:
(2-a) "Program integration committee" means the
Cancer Prevention and Research Institute of Texas Program
Integration Committee.
(3) "Research and prevention programs committee"
means a [the] Cancer Prevention and Research Institute of Texas
Scientific Research and Prevention Programs committee [committees]
appointed by the chief executive officer [director].
SECTION 2. Subchapter A, Chapter 102, Health and Safety
Code, is amended by adding Section 102.004 to read as follows:
Sec. 102.004. STATE AUDITOR. Nothing in this chapter
limits the authority of the state auditor under Chapter 321,
Government Code, or other law.
SECTION 3. Section 102.051, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsections (c) and
(d) to read as follows:
(a) The institute [may]:
(1) may 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) may 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) may 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) may [employ an executive director as determined by
the oversight committee;
[(5)] employ necessary staff to provide
administrative support; [and]
(5) shall continuously [(6)] monitor contracts and
agreements authorized by this chapter and ensure that each grant
recipient complies with the terms and conditions of the grant
contract;
(6) shall ensure that 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
(7) shall establish procedures to document that 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.
(c) The institute shall employ a chief compliance officer to
monitor and report to the oversight committee regarding compliance
with this chapter and rules adopted under this chapter.
(d) The chief compliance officer shall:
(1) ensure that 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
(2) attend and observe the meetings of the program
integration committee to ensure compliance with this chapter and
rules adopted under this chapter.
SECTION 4. 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. 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 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;
(2) one chief operating officer;
(3) one chief product development officer; and
(4) one chief prevention officer.
(d) The officers described by Subsections (c)(1)-(4) shall
report directly to the chief executive officer and assist the chief
executive officer in collaborative outreach to further cancer
research and prevention.
SECTION 5. Section 102.052(a), Health and Safety Code, is
amended to read as follows:
(a) Not later than January 31 of each year, the institute
shall submit to the lieutenant governor, the speaker of the house of
representatives, the governor, and the standing committee of each
house of the legislature with primary jurisdiction over institute
matters and post on the institute's Internet website a report
outlining [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;
(9) a statement of the institute's compliance program
activities, including any proposed legislation or other
recommendations identified through the activities; and
(10) a list of the waivers granted in the previous 12
months through the process established in Section 102.1062.
SECTION 6. Subchapter B, Chapter 102, Health and Safety
Code, is amended by adding Section 102.0535 to read as follows:
Sec. 102.0535. GRANT RECORDS. (a) The institute shall
maintain complete records of:
(1) the review of each grant application submitted to
the institute, including the score assigned to each grant
application reviewed by a research and prevention programs
committee in accordance with rules adopted under Section
102.251(a)(1), even if the grant application is not funded by the
institute or is withdrawn after submission to the institute;
(2) each grant recipient's financial reports,
including the amount of matching funds dedicated to the research
specified for the grant award;
(3) each grant recipient's progress reports; and
(4) the institute's review of the grant recipient's
financial reports and progress reports.
(b) The institute shall have periodic audits made of any
electronic grant management system used to maintain records of
grant applications and grant awards under this section. The
institute shall address in a timely manner each weakness identified
in an audit of the system.
SECTION 7. Section 102.056, Health and Safety Code, is
amended to read as follows:
Sec. 102.056. SALARY. (a) The institute may not supplement
the salary of any institute employee with a gift or grant received
by the institute.
(b) The institute may supplement the salary of the chief
scientific officer [executive director and other senior institute
staff members]. Funding for a salary supplement for the chief
scientific officer may only come from legislative [gifts, grants,
donations, or] appropriations or bond proceeds.
(c) The institute may not supplement the salary of the chief
executive officer. The salary of the chief executive officer may
only be paid from legislative appropriations.
SECTION 8. Subchapter B, Chapter 102, Health and Safety
Code, is amended by adding Section 102.057 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.
SECTION 9. Sections 102.101(b), (d), and (e), Health and
Safety Code, are amended to read as follows:
(b) The oversight committee is composed of the following
nine [11] 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[;
[(4) the comptroller or the comptroller's designee;
and
[(5) the attorney general or the attorney general's
designee].
(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 in the field of
oncology or public health; and
(2) should attempt to include cancer survivors and
family members of cancer patients if possible.
(e) A person may not be a member of the oversight committee
if 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 10. 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 11. 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 office for staggered six-year terms, with the
terms of three members expiring on January 31 of each odd-numbered
year.
SECTION 12. Section 102.104, Health and Safety Code, is
amended to read as follows:
Sec. 102.104. OFFICERS. (a) The oversight committee shall
elect [select] 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
two consecutive terms.
(c) The oversight committee shall:
(1) establish and approve duties and responsibilities
for officers of the committee; 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 the employees of the institute.
SECTION 13. Section 102.106, Health and Safety Code, is
amended to read as follows:
Sec. 102.106. 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 members of the
oversight committee, the program integration committee, the
research and prevention programs committees, and institute
employees.
(b) An institute employee, oversight committee member,
program integration committee member, or research and prevention
programs committee member shall recuse himself or herself, as
provided by Section 102.1061(a), (b), or (c) as applicable, if the
employee or member, or a person who is related to the employee or
member 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.
(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, 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 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
the institute, a research and prevention programs committee, the
program integration committee, or the oversight committee could
result in a financial benefit to the person.
(e) Nothing in this chapter limits the authority of the
oversight committee to adopt additional conflict-of-interest
standards.
SECTION 14. Subchapter C, Chapter 102, Health and Safety
Code, is amended by adding Sections 102.1061 through 102.1064 to
read as follows:
Sec. 102.1061. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
(a) If an oversight committee member or program integration
committee member has a conflict of interest as described by Section
102.106 regarding an application that comes before the member for
review or other action, the member shall:
(1) 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) 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
described by Section 102.106 regarding an application that comes
before the employee for review or other action, the employee shall:
(1) provide written notice to 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) If a research and prevention programs committee member
has a conflict of interest described by Section 102.106 regarding
an application that comes before the member's committee for review
or other action, the member shall:
(1) provide written notice to the chief executive
officer of the conflict of interest; and
(2) 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.
(d) An oversight committee member, program integration
committee member, research and prevention programs committee
member, or institute employee with a conflict of interest may seek a
waiver as provided by Section 102.1062.
(e) An oversight committee member, program integration
committee member, research and prevention programs 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 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, research and prevention programs 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. 102.1062. 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, research and prevention
programs committee member, or institute employee. The rules must:
(1) authorize the chief executive officer or an
oversight committee member to propose the granting of a waiver by
submitting to the presiding officer of the oversight committee 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 a meeting of the oversight committee;
(3) require a majority vote of the oversight committee
members present and voting to grant a waiver;
(4) require any waiver granted to be reported annually
to the lieutenant governor, the speaker of the house of
representatives, the governor, and the standing committee of each
house of the legislature with primary jurisdiction over institute
matters; and
(5) require the institute to retain documentation of
each waiver granted.
Sec. 102.1063. INVESTIGATION OF UNREPORTED CONFLICTS OF
INTEREST. (a) An oversight committee member, a program
integration committee member, a research and prevention programs
committee member, or an institute employee who becomes aware of a
potential conflict of interest described by Section 102.106 that
has not been reported shall immediately notify the chief executive
officer of the potential conflict of interest. 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 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 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, impropriety, or
self-dealing 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 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. 102.1064. FINAL DETERMINATION OF UNREPORTED CONFLICT
OF INTEREST. (a) The chief executive officer or, if applicable,
the presiding officer of the oversight committee shall make a
determination regarding the existence of an unreported conflict of
interest described by Section 102.1063 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 research
and prevention programs 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
presiding officer of the oversight committee, shall provide written
notice of the final determination, including any further actions to
be taken, to the grant applicant requesting the investigation.
(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.
SECTION 15. 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 that receives money under this
chapter; and
(3) consider the priorities set under Subdivision (2)
in awarding grants under this chapter [director].
SECTION 16. Subchapter C, Chapter 102, Health and Safety
Code, is amended by adding Sections 102.109 and 102.110 to read as
follows:
Sec. 102.109. CODE OF CONDUCT. (a) The oversight committee
shall adopt a code of conduct applicable to each oversight
committee member, program integration committee member, and
institute employee.
(b) The code of conduct at a minimum must include provisions
prohibiting the member, the employee, or the 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 of 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) 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) making personal investments or having 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 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) leasing, directly or indirectly, any property,
capital equipment, employee, or service to any entity that receives
a grant from the institute;
(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. 102.110. FINANCIAL STATEMENT REQUIRED. Each member of
the oversight committee shall file with the chief compliance
officer a verified financial statement complying with Sections
572.022 through 572.0252, Government Code, as required of a state
officer by Section 572.021, Government Code.
SECTION 17. Section 102.151, Health and Safety Code, is
amended by amending Subsections (a-1) and (b) and adding
Subsections (c) and (e) to read as follows:
(a-1) The oversight committee shall establish research and
prevention programs committees. 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, including qualified trained cancer
patient advocates who meet the qualifications developed by rule as
provided by Subsection (c).
(b) The institute shall adopt a written policy on in-state
or out-of-state residency requirements for members of the research
and prevention programs committees. [Individuals appointed to the
research and prevention programs committee may be residents of
another state.]
(c) The oversight committee shall adopt rules regarding the
qualifications required for an individual who will serve as a
trained cancer patient advocate committee member for a research and
prevention programs committee. The rules must require a trained
cancer patient advocate to receive science-based training.
(e) The chief executive officer, in consultation with the
oversight committee, shall adopt a policy and document any change
in the amount of honorarium paid to a member of a research and
prevention programs committee, including information explaining
the basis for changing the amount.
SECTION 18. 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 19. Sections 102.156(a), (b), and (c), Health and
Safety Code, are amended 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, as
defined by Section 102.106, in an entity that has a direct interest
in a [the] matter that comes before the member's committee.
(b) The member shall recuse himself or herself in the manner
described by Section 102.1061 from the committee's deliberations
and actions on the matter in Subsection (a) and may not participate
in the committee's decision on the matter.
(c) 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 [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, more
than a five percent interest in the entity].
SECTION 20. Sections 102.201(b) and (c), Health and Safety
Code, are amended to read as follows:
(b) The cancer prevention and research fund consists of:
(1) [patent, royalty, and license fees and other
income received under a contract entered into as provided by
Section 102.255;
[(2)] appropriations of money to the fund by the
legislature, except that the appropriated money may not include the
proceeds from the issuance of bonds authorized by Section 67,
Article III, Texas Constitution;
(2) [(3)] gifts, grants, including grants from the
federal government, and other donations received for the fund; and
(3) [(4)] interest earned on the investment of money
in the fund.
(c) The fund may be used only to pay for:
(1) grants for cancer research and for cancer research
facilities in this state to realize therapies, protocols, and
medical procedures for the cure or substantial mitigation of all
types of cancer in humans;
(2) the purchase, subject to approval by the
institute, of laboratory facilities by or on behalf of a state
agency or grant recipient;
(3) grants to public or private persons to implement
the Texas Cancer Plan;
(4) the operation of the institute; [and]
(5) grants for cancer prevention and control programs
in this state to mitigate the incidence of all types of cancer in
humans; and
(6) debt service on bonds issued as authorized by
Section 67, Article III, Texas Constitution.
SECTION 21. 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 include the following procedures:
(1) a research and prevention programs committee shall
score [review] grant applications and make recommendations to the
program integration committee, established under Section 102.264,
and the oversight committee [executive director] regarding the
award of cancer research and prevention 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 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 grant
recommendations;
(B) [that] is substantially based on the list
submitted by the research and prevention programs committee under
Subdivision (1); and
(C) [,] to the extent possible, gives priority to
proposals that:
(i) [(A)] could lead to immediate or
long-term medical and scientific breakthroughs in the area of
cancer prevention or cures for cancer;
(ii) [(B)] strengthen and enhance
fundamental science in cancer research;
(iii) [(C)] ensure a comprehensive
coordinated approach to cancer research;
(iv) [(D)] are interdisciplinary or
interinstitutional;
(v) [(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;
(vi) [(F)] are matched with funds available
by a private or nonprofit entity and institution or institutions of
higher education;
(vii) [(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;
(viii) [(H)] have a demonstrable economic
development benefit to this state;
(ix) [(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]
(x) [(J)] expedite innovation and product
development [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
(xi) address the goals of the Texas Cancer
Plan; and
(3) the institute's chief compliance officer shall
compare each grant application submitted to the institute 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) before the application is submitted to a
research and prevention programs committee for review and again
before any grant is awarded to the applicant.
(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 assigned by
the research and prevention programs committee; and
(3) if applicable, the intellectual property and other
due diligence reviews of the application.
(d) A member of the program integration committee may not
discuss a grant applicant recommendation with a member of the
oversight committee unless the chief executive officer and the
program integration committee have fulfilled the requirements of
Subsections (a)(2) and (c), as applicable.
(e) The institute may not award a grant to an applicant who
has made a gift or grant to the institute or a nonprofit
organization established to provide support to the institute.
SECTION 22. Section 102.252, Health and Safety Code, is
amended to read as follows:
Sec. 102.252. FUNDING [OVERRIDING] RECOMMENDATIONS.
Two-thirds of the members of the [The] oversight committee present
and voting must vote to approve each [follow the] funding
recommendation [recommendations] of the program integration
committee. If the oversight committee does not approve a funding
recommendation of the program integration committee, a statement
explaining the reasons a funding recommendation was not followed
must be included in the minutes of the meeting [executive director
in the order the executive director submits the applications to the
oversight committee unless two-thirds of the members of the
oversight committee vote to disregard a recommendation].
SECTION 23. Section 102.255, Health and Safety Code, is
amended by amending Subsections (b), (c), and (d) and adding
Subsection (e) to read as follows:
(b) Before awarding a grant under Subchapter E, the
committee shall enter into a written contract with the grant
recipient. The contract may specify that:
(1) if all or any portion of the amount of the grant 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 the 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 the state a proportionate
amount of any profit realized from the sale; [and]
(2) if[, as of a date specified in the contract,] the
grant recipient has not used grant money awarded under Subchapter E
for the purposes for which the grant was intended, the recipient
shall repay that amount and any related interest applicable under
the contract to the state at the agreed rate and on the agreed
terms; and
(3) 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 grant money awarded under
Subchapter E and any related interest applicable under the contract
to this state at the agreed rate and on the agreed terms.
(c) The contract must:
(1) include terms relating to intellectual property
rights consistent with the standards developed by the oversight
committee under Section 102.256;
(2) require, in accordance with Subsection (d), the
grant recipient to dedicate an amount of matching funds equal to
one-half of the amount of the research grant awarded; and
(3) specify:
(A) the amount of matching funds to be dedicated
under Subdivision (2);
(B) the period in which the grant award must be
spent;
(C) the name of the research project to which
matching funds are to be dedicated; and
(D) the specific deliverables of the project that
is the subject of the grant proposal.
(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 certify that the
recipient has [have] an amount of funds equal to one-half of the
grant and dedicate those funds [dedicated] to the research that is
the subject of the grant request. The institute shall adopt rules
specifying how a grant recipient fulfills obligations under this
subchapter. At a minimum, the rules must:
(1) allow a grant recipient that is a public or private
institution of higher education, as defined by Section 61.003,
Education Code, to credit toward the recipient's matching funds the
dollar amount equivalent to the difference between the indirect
cost rate authorized by the federal government for research grants
awarded to the recipient and the indirect cost rate authorized by
Section 102.203(c);
(2) require that a grant recipient certify before the
distribution of any money awarded under a grant for cancer
research:
(A) that encumbered funds equal to one-half of
the amount of the total grant award are available and not yet
expended for research that is the subject of the grant; or
(B) if the grant recipient is a public or private
institution of higher education, the indirect cost rate authorized
by the federal research grants awarded to the recipient;
(3) specify that:
(A) a grant recipient receiving more than one
grant award may provide matching funds certification at an
institutional level;
(B) the recipient of a multiyear grant award may
certify matching funds on a yearly basis; and
(C) grant funds may not be distributed to the
grant recipient until the annual certification of the matching
funds has been approved;
(4) specify that money used for purposes of
certification may include:
(A) federal funds, including funds provided
under the American Recovery and Reinvestment Act of 2009 (Pub. L.
No. 111-5) and the fair market value of drug development support
provided to the recipient by the National Cancer Institute or other
similar programs;
(B) funds of this state;
(C) funds of other states; and
(D) nongovernmental funds, including private
funds, foundation grants, gifts, and donations;
(5) specify that the following items do not qualify
for purposes of the certification required by this subsection:
(A) in-kind costs;
(B) volunteer services furnished to a grant
recipient;
(C) noncash contributions;
(D) income earned by the grant recipient that is
not available at the time of the award;
(E) preexisting real estate of the grant
recipient, including buildings, facilities, and land;
(F) deferred giving, including a charitable
remainder annuity trust, a charitable remainder unitrust, or a
pooled income fund; or
(G) other items as may be determined by the
oversight committee;
(6) require a grant recipient and the institute to
include the certification in the grant award contract;
(7) specify that a grant recipient's failure to
provide certification shall serve as grounds for terminating the
grant award contract;
(8) require a grant recipient to maintain adequate
documentation supporting the source and use of the funds required
by this subsection and to provide documentation to the institute
upon request; and
(9) require that the institute establish a procedure
to conduct an annual review of the documentation supporting the
source and use of funds reported in the required certification.
(e) The institute shall adopt a policy on advance payments
to grant recipients.
SECTION 24. Section 102.260, Health and Safety Code, is
amended by amending Subsections (b) and (c) and adding Subsections
(d), (e), and (f) 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.
(d) The institute shall establish and implement reporting
requirements to ensure that each grant recipient complies with the
terms and conditions in the grant contract, including verification
of the amounts of matching funds dedicated to the research that is
the subject of the grant award to the grant recipient.
(e) 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 that is
not timely submitted to the institute by a grant recipient.
(f) The chief compliance officer shall monitor compliance
with this section and at least annually shall inquire into and
monitor the status of any required report that is not timely
submitted to the institute by a grant recipient. The chief
compliance officer shall notify the general counsel and the
oversight committee of a grant recipient that has not maintained
compliance with the reporting requirements or matching funds
provisions of the grant contract to allow the institute to begin
suspension or termination of the grant contract under Subsection
(b). This subsection does not limit other remedies available under
the grant contract.
SECTION 25. Section 102.262, Health and Safety Code, is
amended by adding Subsections (c) and (d) to read as follows:
(c) The records of a nonprofit organization established to
provide support to the institute are public information subject to
Chapter 552, Government Code.
(d) 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 a member of an institute committee. The posted
information must include each donor's name and the amount and date
of the donor's donation.
SECTION 26. Subchapter F, Chapter 102, Health and Safety
Code, is amended by adding Sections 102.263, 102.2631, and 102.264
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 chief 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 and are not subject to
disclosure under Chapter 552, Government Code:
(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;
(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; and
(3) other information that is 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 disclosure of the information.
(e) Information made confidential or excepted from public
disclosure by this section may be made available to the following on
request in compliance with applicable laws and procedures:
(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.
(f) A disclosure under Subsection (e) is not a voluntary
disclosure for purposes of Section 552.007, Government Code.
Sec. 102.2631. COMPLIANCE MATTERS; CLOSED MEETING. The
oversight committee may conduct a closed meeting under Chapter 551,
Government Code, to discuss an ongoing compliance investigation
into issues related to fraud, waste, or abuse of state resources.
Sec. 102.264. PROGRAM INTEGRATION COMMITTEE. (a) The
institute shall establish a program integration committee. The
committee is composed of the following five members:
(1) the chief executive officer;
(2) the chief scientific officer;
(3) the chief product development officer;
(4) the commissioner of state health services; and
(5) the chief prevention officer.
(b) The committee has the duties assigned under this
chapter.
(c) The chief executive officer shall serve as the presiding
officer of the program integration committee.
SECTION 27. Chapter 102, Health and Safety Code, is amended
by adding Subchapter G to read as follows:
SUBCHAPTER G. CANCER PREVENTION AND RESEARCH INTEREST AND SINKING
FUND
Sec. 102.270. ESTABLISHMENT OF FUND. (a) The cancer
prevention and research interest and sinking fund is a dedicated
account in the general revenue fund.
(b) The fund consists of:
(1) patent, royalty, and license fees and other income
received under a contract entered into as provided by Section
102.255; and
(2) interest earned on the investment of money in the
fund.
(c) The fund may be used only to pay for debt service on
bonds issued as authorized by Section 67, Article III, Texas
Constitution, at a time and in a manner to be determined by the
legislature in the General Appropriations Act.
SECTION 28. (a) The terms of the members of the Cancer
Prevention and Research Institute of Texas Oversight Committee
serving immediately before the effective date of this Act expire on
the effective date of this Act.
(b) As soon as practicable after the effective date of this
Act, the governor, lieutenant governor, and speaker of the house of
representatives shall each appoint members to the Cancer Prevention
and Research Institute of Texas Oversight Committee as required by
Section 102.101, Health and Safety Code, as amended by this Act. In
making the initial appointments under that section, each appointing
office shall designate one member for a term expiring January 31,
2015, one member for a term expiring January 31, 2017, and one
member for a term expiring January 31, 2019.
SECTION 29. (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 compliance officer and a chief executive 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 30. 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.