Texas 2021 87th Regular

Texas Senate Bill SB264 Introduced / Bill

Filed 12/21/2020

                    87R1318 JG-D
 By: Menéndez S.B. No. 264


 A BILL TO BE ENTITLED
 AN ACT
 relating to the establishment of the Texas Research Consortium to
 Cure Infectious Diseases (TRANSCEND); authorizing the issuance of
 bonds.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle D, Title 2, Health and Safety Code, is
 amended by adding Chapter 90 to read as follows:
 CHAPTER 90. TEXAS RESEARCH CONSORTIUM TO CURE INFECTIOUS DISEASES
 (TRANSCEND)
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 90.001.  DEFINITIONS. In this chapter:
 (1)  "Consortium" means the Texas Research Consortium
 to Cure Infectious Diseases (TRANSCEND).
 (2)  "Disease" means a disorder of structure or
 function in a human that produces specific signs or symptoms or
 affects a specific location in the human body and that has the
 potential of being prevented by a vaccine or otherwise treated or
 cured.
 (3)  "Oversight committee" means the Texas Research
 Consortium to Cure Infectious Diseases (TRANSCEND) Oversight
 Committee.
 (4)  "Scientific committee" means the Texas Research
 Consortium to Cure Infectious Diseases (TRANSCEND) Scientific
 Committee.
 Sec. 90.002.  PURPOSE. The Texas Research Consortium to
 Cure Infectious Diseases (TRANSCEND) is established to:
 (1)  accelerate advancements in infectious disease
 diagnosis, treatment, prevention, and cures;
 (2)  facilitate innovative research and development to
 prepare for and address public health crises caused by infectious
 diseases;
 (3)  recruit, retain, and invest in leading infectious
 disease experts to research and develop diagnostics, therapies, and
 vaccines for infectious diseases;
 (4)  establish a centralized research location through
 which the consortium will operate and facilitate collaborative
 research on infectious diseases and related disorders and the
 development of treatments and cures for infectious diseases; and
 (5)  communicate the consortium's mission to the
 public.
 Sec. 90.003.  SUNSET PROVISION. The Texas Research
 Consortium to Cure Infectious Diseases (TRANSCEND) is subject to
 Chapter 325, Government Code (Texas Sunset Act), but is not
 abolished under that chapter.  The consortium shall be reviewed
 during the period in which state agencies scheduled to be abolished
 in 2035, and every 12 years after that year, are reviewed.
 SUBCHAPTER B. POWERS AND DUTIES OF CONSORTIUM
 Sec. 90.051.  POWERS AND DUTIES. The consortium:
 (1)  may award grants to persons for the purpose of:
 (A)  conducting collaborative research on
 infectious diseases and associated conditions and innovative
 methods to prepare for infectious disease outbreaks;
 (B)  developing treatments and cures, including
 vaccines, for diseases and associated conditions;
 (C)  developing education initiatives and
 conducting outreach to engage and inform the public on infectious
 diseases and associated conditions; and
 (D)  developing initiatives to prepare for and
 rapidly respond to infectious disease outbreaks and public health
 crises;
 (2)  shall establish a centralized research location
 through which the consortium will operate and facilitate
 collaborative research on infectious diseases and related
 disorders and the development of treatments and cures for
 infectious diseases;
 (3)  shall establish appropriate standards and
 oversight bodies to ensure money authorized under this chapter is
 properly used for infectious disease research and preparation and
 development of infectious disease treatments and cures;
 (4)  shall develop collaborative research
 opportunities in accordance with Subchapter F;
 (5)  may employ necessary staff to provide
 administrative support;
 (6)  shall continuously monitor contracts or
 agreements entered into under this chapter to ensure that each
 grant recipient or person conducting research under Subchapter F
 complies with the terms and conditions of the contract or
 agreement;
 (7)  shall ensure that all grant applications comply
 with this chapter and rules adopted under this chapter before the
 applications are submitted to the scientific committee for
 consideration and approval; and
 (8)  shall establish procedures to document that the
 consortium, the consortium's employees, and other consortium
 members appointed or hired under this chapter comply with any laws
 and rules governing conflicts of interest.
 Sec. 90.052.  CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
 OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
 hire a chief executive officer. The chief executive officer shall
 perform the duties required 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
 public or private partnerships and coalitions.
 (b)  The consortium 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 applications comply with
 this chapter and rules adopted under this chapter before the
 applications are submitted to the scientific committee for
 consideration and approval;
 (2)  attend and observe meetings of the scientific
 committee to ensure compliance with this chapter and rules adopted
 under this chapter; and
 (3)  perform other duties assigned under this chapter
 or by the oversight committee.
 (c)  The chief executive officer may propose and the
 oversight committee may approve the hiring of additional officers.
 An officer hired under this subsection shall report directly to the
 chief executive officer.
 Sec. 90.053.  CONSORTIUM PRINCIPAL OFFICE. (a)  The
 consortium shall establish its principal office at a facility in
 this state that:
 (1)  is a world-recognized leader in infectious disease
 research and vaccine development;
 (2)  is central to all parts of this state, including
 areas with high-risk populations most vulnerable to infectious
 diseases;
 (3)  has exclusive jurisdiction over a laboratory
 facility with a federal biosafety level of BSL-4, as designated by
 the Centers for Disease Control and Prevention; and
 (4)  has access to a sufficient number of suitable
 specimens for vaccine testing efficacy and safety.
 (b)  The consortium's principal office is the consortium's
 central research location through which the consortium operates and
 facilitates collaborative research under this chapter.
 (c)  The consortium shall adopt appropriate procedures and
 safeguards to ensure:
 (1)  the consortium and the facility described by
 Subsection (a) are governed and operated independently of each
 other; and
 (2)  the facility described by Subsection (a) receives
 no unfair advantage in grants awarded under this chapter.
 Sec. 90.054.  ANNUAL REPORT; INTERNET POSTING.  Not later
 than January 31 of each year, the consortium shall prepare and
 submit to the governor, the lieutenant governor, and each member of
 the legislature and post on the consortium's Internet website a
 written report that includes:
 (1)  the number of grants awarded during the preceding
 state fiscal year;
 (2)  a list of grant recipients for the preceding state
 fiscal year, including the dollar amount of the grant awarded to
 each recipient;
 (3)  the consortium's administrative expenses for the
 preceding state fiscal year;
 (4)  an assessment on the availability of money for
 conducting research authorized under this chapter from sources
 other than the consortium;
 (5)  a summary of findings during the preceding state
 fiscal year from research projects funded by the consortium,
 including any promising new research areas;
 (6)  an assessment of the relationship between the
 research projects funded by the consortium during the preceding
 state fiscal year and the overall strategy of the consortium's
 research goals;
 (7)  a statement of the consortium's strategic research
 and financial plans for the next state fiscal year;
 (8)  an estimate of the amount of money the state spent
 during the preceding state fiscal year to treat individuals with
 infectious diseases, including the amount spent to treat
 individuals with diseases through the child health plan program,
 Medicaid, the Teacher Retirement System of Texas, and the Employees
 Retirement System of Texas; and
 (9)  a statement of the consortium's compliance program
 activities during the preceding state fiscal year, including any
 proposed legislative or other recommendations identified through
 those activities.
 Sec. 90.055.  INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY
 COMPTROLLER. (a) The consortium shall annually commission an
 independent financial audit of the consortium's activities from a
 certified public accounting firm.
 (b)  The consortium shall provide the audit to the
 comptroller and, as soon as practicable after receiving the audit,
 the comptroller shall:
 (1)  review and evaluate the audit and issue a public
 report of that review and evaluation; and
 (2)  make recommendations to the consortium regarding
 the financial practices of the consortium.
 (c)  The oversight committee shall review the audit and the
 comptroller's report and recommendations. As applicable, the
 oversight committee shall seek to modify the consortium's financial
 practices based on the audit, report, and recommendations.
 Sec. 90.056.  GRANT RECORDS. (a) The consortium shall
 maintain complete records of:
 (1)  the review of each grant application submitted to
 the consortium, including the score assigned to each grant
 application reviewed, regardless of whether the grant application
 is approved by the scientific committee or withdrawn after
 submission to the scientific committee;
 (2)  each grant recipient's financial reports,
 including dedicated matching money provided by the recipient for
 the specified research project;
 (3)  progress reports for each research project awarded
 money under this chapter;
 (4)  the consortium's policies and procedures for
 determining any conflicts of interest and identifying each
 principal investor and owner of each grant recipient as provided by
 consortium rules; and
 (5)  the consortium's review of the grant recipient's
 financial and progress reports.
 (b)  The consortium shall have periodic audits conducted of
 any electronic grant management system used to maintain records
 under this section of grant applications and grants awarded. The
 consortium shall address in a timely manner each issue identified
 in an audit of the system.
 Sec. 90.057.  GIFTS AND GRANTS. The consortium may solicit
 and accept gifts and grants from any source to carry out the
 purposes of this chapter.
 SUBCHAPTER C. OVERSIGHT COMMITTEE
 Sec. 90.101.  COMPOSITION OF OVERSIGHT COMMITTEE;
 ELIGIBILITY OF MEMBERS. (a) The oversight committee is the
 governing body of the consortium.
 (b)  The oversight committee is composed of:
 (1)  the following nine voting members:
 (A)  three members appointed by the governor;
 (B)  three members appointed by the lieutenant
 governor; and
 (C)  three members appointed by the governor from
 a list provided to the governor by the speaker of the house of
 representatives; and
 (2)  an ex officio nonvoting member, the chief
 executive officer of the facility described by Section 90.053(a).
 (c)  The voting members of the oversight committee must
 represent the geographic and cultural diversity of this state.
 (d)  In making appointments or recommendations for
 appointments to the oversight committee, the governor, lieutenant
 governor, and speaker of the house of representatives must each
 appoint or recommend, as applicable, at least one person who is a
 physician or a scientist with extensive experience in epidemiology,
 vaccines, or public health.
 (e)  A person may not be a voting 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
 consortium;
 (2)  owns or controls, directly or indirectly, an
 interest in a business entity or other organization receiving money
 from the consortium; or
 (3)  uses or receives a substantial amount of tangible
 goods, services, or money from the consortium, other than
 reimbursement authorized by this chapter for oversight committee
 membership, attendance, or expenses.
 Sec. 90.102.  TERMS; VACANCY; REMOVAL. (a) Oversight
 committee members serve at the pleasure of the appointing authority
 for staggered four-year terms, with the terms of four or five voting
 members expiring January 31 of each even-numbered year.
 (b)  Not later than the 30th day after the date an oversight
 committee member's term expires, the appropriate appointing
 authority shall appoint a replacement in the same manner as the
 original appointment.
 (c)  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.
 (d)  It is a ground for removal from the oversight committee
 that a member:
 (1)  is ineligible for membership under Section 90.101;
 (2)  cannot, because of illness or disability,
 discharge the member's duties for a substantial part of the member's
 term; or
 (3)  is absent from more than half of the regularly
 scheduled oversight committee meetings that the member is eligible
 to attend during a calendar year without an excuse approved by a
 majority vote of the oversight committee.
 Sec. 90.103.  OFFICERS. (a) The oversight committee shall
 elect a presiding officer and assistant presiding officer from
 among its voting members every two years. The oversight committee
 may elect additional officers from among its voting 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 consortium.
 Sec. 90.104.  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. 90.105.  CONFLICT OF INTEREST; DISCLOSURE AND RECUSAL.
 (a) 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 scientific committee, and consortium employees.
 (b)  Nothing in this chapter limits the authority of the
 oversight committee to adopt additional conflict-of-interest rules
 and standards.
 (c)  If an oversight committee member or scientific
 committee member has a conflict of interest based on standards
 adopted under this section regarding a grant application that comes
 before the member for review or other action, the member shall:
 (1)  provide to the chief executive officer and the
 presiding officer of the oversight committee, or if the presiding
 officer has the conflict, the next ranking member of the oversight
 committee, written notice of 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 grant
 application and from accessing information regarding the matter to
 be decided.
 Sec. 90.106.  RULEMAKING AUTHORITY. The oversight committee
 may adopt rules necessary to administer this chapter.
 Sec. 90.107.  CODE OF CONDUCT. The oversight committee
 shall adopt a code of conduct applicable to each member of the
 oversight committee, member of the scientific committee, and
 consortium employee.
 Sec. 90.108.  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. FUNDING
 Sec. 90.151.  INFECTIOUS DISEASE RESEARCH FUND. (a) The
 infectious disease research fund is a dedicated account in the
 general revenue fund.
 (b)  The fund consists of:
 (1)  the proceeds from the issuance of bonds authorized
 by Section 69, Article III, Texas Constitution, and any additional
 appropriations of money to the fund by the legislature;
 (2)  gifts and grants, including grants from the
 federal government, received for the fund; and
 (3)  interest, dividends, and other income earned on
 the investment of money in the fund.
 (c)  Money in the fund may only be used for:
 (1)  awarding grants authorized under this chapter;
 (2)  purchasing, subject to approval by the oversight
 committee, research and laboratory facilities by or on behalf of a
 grant recipient;
 (3)  operating the consortium; and
 (4)  debt service on bonds issued as authorized by
 Section 69, Article III, Texas Constitution.
 Sec. 90.152.  ISSUANCE OF GENERAL OBLIGATION BONDS. (a) The
 consortium may request the Texas Public Finance Authority to issue
 and sell general obligation bonds of the state as authorized by
 Section 69, Article III, Texas Constitution.
 (b)  The Texas Public Finance Authority may not issue and
 sell more than $300 million in general obligation bonds authorized
 by this section in a state fiscal year.
 (b-1)  The Texas Public Finance Authority may not issue and
 sell more than $300 million in general obligation bonds authorized
 by this section before January 1, 2023. This subsection expires
 September 1, 2023.
 (c)  The consortium 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 in separate funds or accounts in the state treasury, as
 prescribed by the proceedings authorizing the bonds.
 (f)  The proceeds of the bonds may be used only to:
 (1)  make grants authorized by Section 69, Article III,
 Texas Constitution;
 (2)  purchase research facilities approved by the
 consortium;
 (3)  pay costs of operating the consortium; or
 (4)  pay costs of issuing the bonds and related bond
 administration costs of the Texas Public Finance Authority.
 Sec. 90.153.  AUTHORIZED USE OF FUNDS. (a) A grant
 recipient awarded money from the infectious disease research fund
 established under Section 90.151 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 consortium.
 (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 E. SCIENTIFIC COMMITTEE AND GRANT AWARD PROCEDURES
 Sec. 90.201.  SCIENTIFIC COMMITTEE. (a) The consortium
 shall establish a scientific committee. The committee is composed
 of seven or nine members appointed by the oversight committee.  The
 members must:
 (1)  reside in this state; and
 (2)  have expertise in the field of infectious diseases
 or another field considered appropriate by the oversight committee.
 (b)  The scientific committee shall elect a presiding
 officer and assistant presiding officer from among its members
 every two years. The scientific committee may elect additional
 officers from among its members.
 (c)  Scientific committee members serve at the pleasure of
 the oversight committee.
 (d)  The scientific committee may establish one or more
 advisory committees to assist the scientific committee in
 performing its duties under this chapter. A member of an advisory
 committee established under this subsection:
 (1)  may reside in or outside of this state;
 (2)  must have appropriate expertise to carry out the
 purposes for which the advisory committee was established; and
 (3)  serves at the pleasure of the scientific
 committee.
 Sec. 90.202.  GRANT APPLICATION REVIEW AND SELECTION.  (a)
 The scientific committee shall receive, score, and select grant
 applications to fund based on the procedures and criteria described
 by this section. The oversight committee shall contract with and
 award grants to each grant applicant selected by the scientific
 committee.
 (b)  The scientific committee shall establish procedures and
 criteria for reviewing grant applications and awarding grants under
 this chapter. The procedures must require the scientific committee
 to score and select grant applications to fund by developing a
 prioritized list that:
 (1)  ranks the grant applications in the order the
 scientific committee determines the research projects proposed by
 the applications should be funded; and
 (2)  includes information explaining the reasons each
 grant application on the list meets the scientific committee's
 standards for funding.
 (c)  The scientific committee must consider the grant
 applicant's capability in:
 (1)  conducting research on infectious diseases and
 associated conditions;
 (2)  developing treatments and cures, including
 vaccines, for infectious diseases and associated conditions that
 are marketable to the public;
 (3)  conducting outreach to engage and inform the
 public on the applicant's research results and best practices for
 treatment of infectious diseases and associated conditions;
 (4)  developing innovative methods to prepare for
 infectious disease outbreaks; and
 (5)  developing educational initiatives on the
 prevention of and treatment for infectious diseases and associated
 conditions.
 (d)  The chief compliance officer shall compare each grant
 applicant to a list of donors from any nonprofit organization
 established to provide support to the consortium before the
 application is submitted to the scientific committee for review and
 selection and again before any contract is executed or grant is
 awarded to the applicant.
 (e)  The consortium may not award a grant to an applicant who
 has made a gift or grant to the consortium or a nonprofit
 organization established to provide support to the consortium.
 Sec. 90.203.  MAXIMUM AMOUNT OF ANNUAL AWARDS. The
 consortium may not award more than $300 million in grants under this
 chapter in a state fiscal year.
 Sec. 90.204.  PERIOD FOR AWARDS. The consortium may not
 award a grant under this chapter after August 31, 2034.
 Sec. 90.205.  CONTRACT TERMS. (a) The oversight committee
 shall negotiate on behalf of the state regarding a grant awarded
 under this chapter.
 (b)  Before awarding money to a grant recipient selected by
 the scientific committee, the oversight 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 this state the grant money used
 to pay for the capital improvement, with interest at the rate and
 according to the other terms provided by the contract; and
 (ii)  share with this state a proportionate
 amount of any profit realized from the sale;
 (2)  if the grant recipient has not used grant money
 awarded under this chapter for the purposes for which the grant was
 intended, the recipient shall repay that amount and any related
 interest applicable under the contract to this 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 consortium may terminate the
 contract using the written process prescribed in the contract and
 require the recipient to repay the grant money awarded under this
 chapter 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)  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
 (2)  specify:
 (A)  the amount of matching funds to be dedicated
 under Subdivision (1);
 (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 award for infectious
 disease research any grant of any proceeds of the bonds issued under
 this chapter, the recipient of the grant must certify that the
 recipient has an amount of funds equal to one-half of the grant and
 dedicate those funds to the research that is the subject of the
 grant request. The consortium shall adopt rules specifying the
 manner in which a grant recipient fulfills obligations under this
 subsection.
 Sec. 90.206.  GRANT EVALUATION. (a) The oversight
 committee shall require as a condition of a grant award that the
 grant recipient submit to regular inspection reviews by consortium
 staff of the research project for which the award was made,
 including progress oversight reviews, to ensure compliance with the
 terms of the award and to ensure the scientific merit of the
 research.
 (b)  The chief executive officer shall determine the review
 process under this section. The chief executive officer may
 suspend or terminate in accordance with Subsection (f) grants made
 that fail to meet contractual obligations.
 (c)  The chief executive officer shall report at least
 annually to the oversight committee on the progress and continued
 merit of each research project funded by a grant under this chapter.
 (d)  The consortium shall establish and implement reporting
 requirements to ensure that each grant recipient complies with the
 terms and conditions of the grant contract, including verification
 of the amounts of matching funds dedicated to the research project
 that is the subject of the grant award to the grant recipient.
 (e)  The consortium shall implement a system to:
 (1)  track the dates on which reports under Subsection
 (d) are due and received by the consortium; and
 (2)  monitor the status of any required report that is
 not timely submitted to the consortium.
 (f)  The chief compliance officer shall monitor compliance
 with this section and at least annually inquire into and monitor the
 status of any required report that is not timely submitted to the
 consortium by a grant recipient. The chief compliance officer
 shall notify the general counsel for the consortium 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 consortium to begin
 suspension or termination of the grant contract under Subsection
 (b). This subsection does not limit other remedies available under
 the grant contract.
 Sec. 90.207.  COMPLIANCE PROGRAM. (a) In this section,
 "compliance program" means a process to assess and ensure
 compliance by the oversight committee members, scientific
 committee members, and consortium 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 consortium shall establish a compliance program
 that operates under the direction of the chief compliance officer.
 The consortium 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.
 Sec. 90.208.  MEDICAL ETHICS. The oversight committee shall
 ensure that a grant recipient of money under this chapter conduct
 any associated research project:
 (1)  with full consideration for the ethical and
 medical implications of the research project; and
 (2)  in a manner that complies with federal and state
 laws applicable to the research project.
 Sec. 90.209.  PATENT ROYALTIES AND LICENSE REVENUES PAID TO
 STATE. (a) The oversight committee shall establish standards to
 require each research project awarded money under this chapter to
 be subject to an intellectual property agreement that allows the
 state to collect royalties, income, and other benefits, including
 interest or proceeds resulting from securities and equity
 ownership, realized as a result of the research project.
 (b)  In determining the state's interest in any intellectual
 property rights, the oversight committee shall balance the
 opportunity of this state to benefit from the patents, royalties,
 licenses, and other benefits resulting from basic research, vaccine
 development, and clinical trials with the need to ensure that
 essential infectious disease research is not unreasonably hindered
 by the intellectual property agreement and that the agreement does
 not unreasonably remove the incentive on the part of each grant
 recipient and associated individuals.
 SUBCHAPTER F. COLLABORATIVE RESEARCH OPPORTUNITIES
 Sec. 90.251.  OPTION TO EXPAND ON RESEARCH FINDINGS. (a)
 The consortium shall develop opportunities for a person, regardless
 of whether the person is a grant applicant or recipient, to access
 and expand on the research findings of:
 (1)  a finished research project funded by the
 consortium under this chapter; or
 (2)  any research or other work conducted by a person
 under this subchapter.
 (b)  The consortium may establish and maintain an electronic
 system through which a person may access information on research
 findings described by Subsection (a).
 Sec. 90.252.  COLLABORATION REQUIREMENTS. (a) The
 consortium shall ensure that any research or other work that
 expands on research findings described by Section 90.251(a):
 (1)  proportionally recognizes the contributions made
 by each person who participated in the underlying research and in
 the new research or other work; and
 (2)  is subject to the same intellectual property
 agreement requirements for a research project under Section 90.209.
 (b)  A person seeking to expand on research findings
 described by Section 90.251(a) must:
 (1)  submit an application to and receive approval from
 the scientific committee;
 (2)  allow the consortium to conduct the same
 evaluation procedures for a grant recipient under Section 90.206;
 and
 (3)  allow the consortium to retain the comprehensive
 research findings of any research or other work conducted by the
 person to enable other persons to further expand on those research
 findings under this subchapter.
 SECTION 2.  (a) Not later than January 31, 2022, the
 appropriate appointing authority shall appoint the members to the
 Texas Research Consortium to Cure Infectious Diseases (TRANSCEND)
 Oversight Committee as required by Section 90.101, 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 90.101, Health and Safety Code,
 as added by this Act, in making the initial appointments to the
 Texas Research Consortium to Cure Infectious Diseases (TRANSCEND)
 Oversight Committee under that section:
 (1)  the governor shall designate:
 (A)  three members to serve terms expiring January
 31, 2024, including one member from the list provided by the speaker
 of the house of representatives; and
 (B)  three members to serve terms expiring January
 31, 2026, including two members from the list provided by the
 speaker of the house of representatives; and
 (2)  the lieutenant governor shall designate:
 (A)  one member to serve a term expiring January
 31, 2024; and
 (B)  two members to serve terms expiring January
 31, 2026.
 SECTION 3.  Notwithstanding Section 90.054, Health and
 Safety Code, as added by this Act, the Texas Research Consortium to
 Cure Infectious Diseases (TRANSCEND) is not required to submit a
 report under that section until January 31, 2023.
 SECTION 4.  This Act takes effect January 1, 2022, but only
 if the constitutional amendment proposed by the 87th Legislature,
 Regular Session, 2021, providing for the establishment of the Texas
 Research Consortium to Cure Infectious Diseases (TRANSCEND) and
 authorizing the issuance of up to $3 billion in general obligation
 bonds to fund collaborative research on and development of
 infectious disease treatments and cures for humans is approved by
 the voters. If that amendment is not approved by the voters, this
 Act has no effect.