87R9386 SRA-D
By: Thompson of Harris H.B. No. 15
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Brain Institute of Texas; granting
authority to issue bonds.
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 106 to read as follows:
CHAPTER 106. BRAIN INSTITUTE OF TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 106.0001. DEFINITIONS. In this chapter:
(1) "Higher education advisory committee" means the
Brain Institute of Texas Higher Education Advisory Committee.
(2) "Institute" means the Brain Institute of Texas.
(3) "Oversight committee" means the Brain Institute of
Texas Oversight Committee.
(4) "Research committee" means the Brain Institute of
Texas Research Committee.
(5) "Research plan" means the Texas Brain Research
Plan developed by the institute.
Sec. 106.0002. PURPOSES. The Brain Institute of Texas is
established to:
(1) create and expedite innovation in brain research
to improve the health of residents of this state, enhance the
potential for a medical or scientific breakthrough in brain-related
sciences and biomedical research, and enhance the brain research
superiority of this state;
(2) attract, create, or expand research capabilities
of eligible institutions of higher education by awarding grants to
the institutions to promote a substantial increase in brain
research, strategies for prevention of brain-related diseases, and
the creation of jobs in this state; and
(3) develop and implement a research plan to foster
synergistic collaboration and investigation into brain research by
eligible institutions of higher education and their partners.
Sec. 106.0003. SUNSET PROVISION. The Brain 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,
2031.
SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
Sec. 106.0051. POWERS AND DUTIES. (a) The institute:
(1) may make grants to eligible institutions of higher
education to further the purposes of this chapter, including:
(A) implementing the research plan;
(B) researching:
(i) the causes of and prevention,
treatment, rehabilitation, and cures for brain-related diseases,
syndromes, disorders, dysfunction, injuries, developmental issues,
mental and behavioral health issues, and substance abuse disorders
and other addictions; and
(ii) any other area impacting the brain,
including an area that directly or indirectly impacts or is
impacted by the brain or brain health, such as the gut microbiome,
nutrition, and the spinal cord or nervous system, that the research
committee and the oversight committee approve;
(C) providing money for facilities, equipment,
supplies, salaries, benefits, and other costs related to brain
research;
(D) creating a statewide research and clinical
data registry for brain research; and
(E) establishing prevention programs and
strategies to mitigate the incidence of detrimental health impacts
on the brain;
(2) may support eligible institutions of higher
education by awarding grants to those institutions and their
collaborative partners for discovering the causes of and developing
cures for all types of brain and neurological health issues;
(3) shall collaborate with relevant state agencies,
coordinating councils, and consortiums to enhance brain-related
health care and research;
(4) may establish appropriate standards and oversight
bodies to ensure money authorized under this chapter is properly
used for the purposes of this chapter;
(5) may employ necessary staff to provide
administrative support to the institute;
(6) shall monitor grant contracts and agreements
authorized under this chapter to ensure each grant recipient
complies with the terms and conditions of the contract or
agreement; and
(7) shall establish procedures to document that the
institute, its employees, and any committee members appointed under
this chapter comply with all rules governing conflicts of interest
and the peer review process developed under Section 106.0252.
(b) The institute shall implement and monitor the research
plan and revise the plan as necessary.
Sec. 106.0052. 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 under this chapter or 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 report incidents of noncompliance to the oversight
committee. 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 consideration and
approval; and
(2) attend and observe research committee meetings to
ensure compliance with this chapter and rules adopted under this
chapter.
(c) The chief executive officer may hire any other officer
position the chief executive officer determines necessary for
efficient operation of the institute.
Sec. 106.0053. ANNUAL REPORT; INTERNET POSTING. Not later
than January 31 of each year, the institute shall prepare and submit
to the governor, the lieutenant governor, the speaker of the house
of representatives, and each standing committee of the legislature
having primary jurisdiction over institute matters and post on the
institute's Internet website a written report that outlines:
(1) the institute's activities under this chapter;
(2) a list of grant recipients during the preceding
state fiscal year, including the grant amount awarded to each
recipient;
(3) any research accomplishments made during the
preceding state fiscal year by a grant recipient or the recipient's
partners;
(4) an overview summary of the institute's financial
records and strategies; and
(5) the institute's future direction.
Sec. 106.0054. INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY
COMPTROLLER. (a) The institute shall annually commission an
independent financial audit of its activities from a certified
public accounting firm. 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.
Sec. 106.0055. 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, regardless of whether the grant application
is not funded by the institute or is withdrawn after submission to
the institute;
(2) each grant recipient's financial reports;
(3) each grant recipient's progress reports; and
(4) the institute's review of the grant recipient's
financial and progress reports.
(b) The institute shall keep the records described by
Subsection (a) for at least 15 years.
Sec. 106.0056. GIFTS AND GRANTS. The institute may solicit
and accept gifts and grants from any source for the purposes of this
chapter.
SUBCHAPTER C. OVERSIGHT COMMITTEE
Sec. 106.0101. COMPOSITION OF OVERSIGHT COMMITTEE. (a)
The oversight committee is the governing body of the institute.
(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.
Sec. 106.0102. TERMS; VACANCY. (a) Oversight committee
members serve at the pleasure of the appointing authority for
staggered six-year terms, with the terms of three members expiring
January 31 of each even-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. 106.0103. 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
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 institute employees.
Sec. 106.0104. EXPENSES. A member of the oversight
committee is not entitled to compensation but is entitled to
reimbursement for actual and necessary expenses incurred in
attending meetings of the committee or performing other official
duties authorized by the presiding officer.
Sec. 106.0105. CONFLICT OF INTEREST. The oversight
committee shall adopt conflict-of-interest rules, based on
standards adopted by the National Institutes of Health, to govern
members of the oversight committee, members of the research
committee, and institute employees.
Sec. 106.0106. RULEMAKING AUTHORITY. The oversight
committee may adopt rules to administer this chapter.
Sec. 106.0107. POWERS AND DUTIES. The oversight committee
shall:
(1) hire a chief executive officer;
(2) annually set priorities as prescribed by the
legislature for each grant project that receives money under this
chapter; and
(3) consider the priorities set under Subdivision (2)
in awarding grants under this chapter.
Sec. 106.0108. CODE OF CONDUCT. The oversight committee
shall adopt a code of conduct applicable to each member of the
oversight committee, member of the research committee, and
institute employee.
Sec. 106.0109. 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.
SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
Sec. 106.0151. RESEARCH COMMITTEE. (a) The oversight
committee shall establish the research committee. The chief
executive officer, with approval by a simple majority of the
members of the oversight committee, shall appoint as members of the
research committee experts in fields related to the brain,
including research, health care, disease treatment and prevention,
and other study areas.
(b) The oversight committee shall adopt a written policy on
in-state or out-of-state residency requirements for research
committee members.
(c) A research committee member may receive an honorarium.
Subchapter B, Chapter 2254, Government Code, does not apply to an
honorarium the member receives under this chapter.
Sec. 106.0152. HIGHER EDUCATION ADVISORY COMMITTEE. (a)
The higher education advisory committee is composed of the
following members:
(1) one member appointed by the president of Baylor
College of Medicine;
(2) one member appointed by the president of Texas A&M
University Health Science Center;
(3) one member appointed by the president of Texas
Tech University Health Sciences Center;
(4) one member appointed by the president of Texas
Tech University Health Sciences Center at El Paso;
(5) one member appointed by the president of The
University of Texas Southwestern Medical Center;
(6) one member appointed by the president of The
University of Texas Medical Branch at Galveston;
(7) one member appointed by the president of The
University of Texas Health Science Center at Houston;
(8) one member appointed by the president of The
University of Texas Health Science Center at San Antonio;
(9) one member appointed by the president of The
University of Texas Health Science Center at Tyler;
(10) one member appointed by the dean of Dell Medical
School at The University of Texas at Austin;
(11) one member appointed by the president of The
University of Texas M. D. Anderson Cancer Center;
(12) one member appointed by the dean of The
University of Texas Rio Grande Valley School of Medicine;
(13) one member appointed by the president of
University of North Texas Health Science Center at Fort Worth;
(14) one member appointed by the dean of University of
Houston College of Medicine; and
(15) one member appointed by the dean of Sam Houston
State University College of Osteopathic Medicine.
(b) The higher education advisory committee shall advise
the oversight committee and the research committee on issues,
opportunities, the role of higher education, and other subjects
involving brain research.
Sec. 106.0153. AD HOC ADVISORY COMMITTEE. The chief
executive officer with majority approval of the oversight
committee, as necessary, may create additional ad hoc advisory
committees of experts to advise the oversight committee and the
research committee on issues relating to brain research.
SUBCHAPTER E. FUNDING
Sec. 106.0201. BRAIN INSTITUTE OF TEXAS RESEARCH FUND. (a)
The Brain Institute of Texas research fund is a dedicated account in
the general revenue fund.
(b) The Brain Institute of Texas research fund consists of:
(1) proceeds of general obligation bonds issued for
purposes of the fund;
(2) appropriations of money to the fund by the
legislature;
(3) gifts and grants, including grants from the
federal government, received for the fund; and
(4) interest, dividends, and other income of the fund.
(c) The fund may only be used for:
(1) awarding grants authorized under this chapter,
including grants for brain research and for research facilities in
this state to conduct brain research;
(2) the purchase, subject to approval by the oversight
committee, of research facilities by or for a grant recipient; and
(3) the operation of the institute.
Sec. 106.0202. ISSUANCE OF GENERAL OBLIGATION BONDS. (a)
The institute may request the Texas Public Finance Authority to
issue and sell general obligation bonds of the state as authorized
by Section 68, Article III, Texas Constitution.
(b) The Texas Public Finance Authority may not issue and
sell general obligation bonds authorized by this section before
January 1, 2022, and may not issue and sell more than $500 million
in general obligation bonds authorized by this section in a state
fiscal year.
(c) The institute shall determine, and include in its
request for issuing bonds, the amount, exclusive of costs of
issuance, of the bonds to be issued and the preferred time for
issuing the bonds.
(d) The Texas Public Finance Authority shall issue the bonds
in accordance with and subject to Chapter 1232, Government Code,
and Texas Public Finance Authority rules. The bonds may be issued in
installments.
(e) Proceeds of the bonds issued under this section shall be
deposited to the credit of the Brain Institute of Texas research
fund and used only for the purposes authorized under Section
106.0201.
Sec. 106.0203. AUTHORIZED USE OF GRANT MONEY. (a) A grant
recipient awarded money from the Brain Institute of Texas research
fund established under Section 106.0201 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) Money awarded under this chapter may be used for
authorized expenses, including honoraria, salaries and benefits,
travel, conference fees and expenses, consumable supplies, other
operating expenses, contracted research and development, capital
equipment, and construction or renovation of state or private
facilities.
SUBCHAPTER F. PROCEDURE FOR AWARDING GRANTS
Sec. 106.0251. ELIGIBLE INSTITUTIONS OF HIGHER EDUCATION.
(a) The following institutions of higher education are eligible
for a grant award under this chapter:
(1) Baylor College of Medicine;
(2) Texas A&M University Health Science Center;
(3) Texas Tech University Health Sciences Center;
(4) Texas Tech University Health Sciences Center at El
Paso;
(5) University of North Texas Health Science Center at
Fort Worth;
(6) Dell Medical School at The University of Texas at
Austin;
(7) The University of Texas Medical Branch at
Galveston;
(8) The University of Texas Health Science Center at
Houston;
(9) The University of Texas Health Science Center at
San Antonio;
(10) The University of Texas Rio Grande Valley School
of Medicine;
(11) The University of Texas Health Science Center at
Tyler;
(12) The University of Texas Southwestern Medical
Center;
(13) The University of Texas M. D. Anderson Cancer
Center;
(14) University of Houston College of Medicine; and
(15) Sam Houston State University College of
Osteopathic Medicine.
(b) Any time before or during the application process or
after a grant is awarded under this chapter, the grant recipient may
use the money received from a grant awarded under this chapter for
purposes of this chapter and in a collaborative partnership with:
(1) another eligible institution;
(2) a general academic institution of higher
education;
(3) a historically black college or university;
(4) a nonprofit or for-profit organization;
(5) a health care organization;
(6) a branch of the United States armed forces;
(7) a private company;
(8) a federal, state, or local government; or
(9) another relevant person or organization.
Sec. 106.0252. PEER REVIEW PROCESS. The research committee
shall develop and oversee a peer review process for the selection of
brain research projects. The peer review process must evaluate
research projects based on the extent to which the project:
(1) aligns with the research plan;
(2) aligns with state priorities and needs, including
priorities and needs outlined in other state agency strategic
plans, or addresses federal or other major research sponsors'
priorities in scientific or technological fields in the area of
brain research;
(3) enhances the research superiority at eligible
institutions of higher education by creating new research
superiority, attracting existing research superiority, or
enhancing existing research superiority;
(4) benefits the residents of this state, including a
demonstrable economic or job creation benefit to this state; and
(5) if applicable, is interdisciplinary or
interinstitutional, or has collaborators or partnerships.
Sec. 106.0253. GRANT AWARD RULES AND PROCEDURES. The
oversight committee shall adopt rules and establish procedures for
awarding grants under this chapter. The rules must require the
research committee to score grant applications and make
recommendations to the oversight committee regarding the award of
grants, including the creation of a prioritized list that:
(1) ranks the grant applications in the order the
research committee determines applications should be funded; and
(2) includes information explaining the reasons each
grant application on the list meets the research committee's
standards for recommendation.
Sec. 106.0254. GRANT EVALUATION. (a) The oversight
committee 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 staff to ensure
compliance with the terms of the grant and to ensure the scientific
merit of the research.
(b) The chief executive officer, with approval of the
oversight committee, shall determine the grant review process under
this section.
(c) The chief executive officer shall report at least
annually to the oversight committee on the progress and continued
merit of each research project awarded a grant 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.
(e) The institute shall implement a system to:
(1) track the dates grant recipient reports are due
and are received by the institute; and
(2) monitor the status of any required report not
timely submitted to the institute by a grant recipient.
(f) The chief compliance officer shall monitor compliance
with this section and shall inquire into and monitor the status of
any required report not timely submitted to the institute by a grant
recipient. The chief compliance officer shall notify the general
counsel for the institute and the oversight committee of a grant
recipient that has not complied with the reporting requirements or
provisions of the grant contract to allow the institute to begin
suspension or termination of the grant contract. This subsection
does not limit other remedies available under the grant contract.
Sec. 106.0255. MULTIYEAR PROJECTS. The oversight committee
may award grant money for a multiyear project.
Sec. 106.0256. GRANT AWARD RECOMMENDATIONS. Two-thirds of
the members of the oversight committee present and voting must vote
to approve a grant application recommended by the research
committee to award a grant under this chapter. If the oversight
committee does not approve a recommendation of the research
committee, the oversight committee must ensure that the minutes of
the meeting include a statement explaining the reasons the
recommendation was not approved.
Sec. 106.0257. MEDICAL AND RESEARCH ETHICS. Any research
project that is awarded a grant under this chapter must comply with
all applicable federal and state laws regarding the conduct of
research.
Sec. 106.0258. PUBLIC INFORMATION. (a) The following
information is public information and may be disclosed under
Chapter 552, Government Code:
(1) the applicant's name and address;
(2) the amount requested in the applicant's grant
proposal;
(3) the type of brain research to be addressed under
the proposal; and
(4) any other information the institute designates
with the consent of the grant applicant.
(b) To protect the actual or potential value of information
submitted to the institute by an applicant for or recipient of an
institute grant, 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
required under Subsection (a) that is contained in a grant award
contract between the institute and a grant recipient, 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 a grant 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 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.
Sec. 106.0259. COMPLIANCE PROGRAM; CONFIDENTIAL
INFORMATION. (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.
(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 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 a 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. 106.0260. 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. 106.0261. APPROPRIATION CONTINGENCY. The institute is
required to implement a provision of this chapter only if the
legislature appropriates money specifically for that purpose. If
the legislature does not appropriate money specifically for that
purpose, the institute may, but is not required to, implement the
provision using other money available to the institute for that
purpose.
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 Brain Institute of
Texas.
SECTION 3. (a) Not later than December 1, 2022, the
appropriate appointing authority shall appoint the members to the
Brain Institute of Texas Oversight Committee as required by Section
106.0101, Health and Safety Code, as added by this Act. The
oversight committee may not take action until a majority of the
appointed members have taken office.
(b) Notwithstanding Section 106.0101, 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 Brain Institute of Texas appointed by that person to serve a
term expiring January 31, 2024, one member appointed by that person
to serve a term expiring January 31, 2026, and one member appointed
by that person to serve a term expiring January 31, 2028.
SECTION 4. If the constitutional amendment proposed by the
87th Legislature, Regular Session, 2021, authorizing the issuance
of general obligation bonds and the dedication of bond proceeds to
the Brain Institute of Texas research fund established to fund
brain research is approved by the voters, the Brain Institute of
Texas established by Chapter 106, Health and Safety Code, as added
by this Act, is eligible to receive funding through the proceeds
deposited under the authority of Section 68, Article III, Texas
Constitution, for any activities conducted by the institute that
serve the purposes of that constitutional provision.
SECTION 5. This Act takes effect January 1, 2022, but only
if the constitutional amendment proposed by the 87th Legislature,
Regular Session, 2021, authorizing the issuance of general
obligation bonds and the dedication of bond proceeds to the Brain
Institute of Texas research fund established to fund brain research
in this state is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.