Texas 2021 - 87th Regular

Texas Senate Bill SB264 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	87R1318 JG-D
2	2	By: Menéndez S.B. No. 264
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the establishment of the Texas Research Consortium to
8	8	Cure Infectious Diseases (TRANSCEND); authorizing the issuance of
9	9	bonds.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle D, Title 2, Health and Safety Code, is
12	12	amended by adding Chapter 90 to read as follows:
13	13	CHAPTER 90. TEXAS RESEARCH CONSORTIUM TO CURE INFECTIOUS DISEASES
14	14	(TRANSCEND)
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 90.001. DEFINITIONS. In this chapter:
17	17	(1) "Consortium" means the Texas Research Consortium
18	18	to Cure Infectious Diseases (TRANSCEND).
19	19	(2) "Disease" means a disorder of structure or
20	20	function in a human that produces specific signs or symptoms or
21	21	affects a specific location in the human body and that has the
22	22	potential of being prevented by a vaccine or otherwise treated or
23	23	cured.
24	24	(3) "Oversight committee" means the Texas Research
25	25	Consortium to Cure Infectious Diseases (TRANSCEND) Oversight
26	26	Committee.
27	27	(4) "Scientific committee" means the Texas Research
28	28	Consortium to Cure Infectious Diseases (TRANSCEND) Scientific
29	29	Committee.
30	30	Sec. 90.002. PURPOSE. The Texas Research Consortium to
31	31	Cure Infectious Diseases (TRANSCEND) is established to:
32	32	(1) accelerate advancements in infectious disease
33	33	diagnosis, treatment, prevention, and cures;
34	34	(2) facilitate innovative research and development to
35	35	prepare for and address public health crises caused by infectious
36	36	diseases;
37	37	(3) recruit, retain, and invest in leading infectious
38	38	disease experts to research and develop diagnostics, therapies, and
39	39	vaccines for infectious diseases;
40	40	(4) establish a centralized research location through
41	41	which the consortium will operate and facilitate collaborative
42	42	research on infectious diseases and related disorders and the
43	43	development of treatments and cures for infectious diseases; and
44	44	(5) communicate the consortium's mission to the
45	45	public.
46	46	Sec. 90.003. SUNSET PROVISION. The Texas Research
47	47	Consortium to Cure Infectious Diseases (TRANSCEND) is subject to
48	48	Chapter 325, Government Code (Texas Sunset Act), but is not
49	49	abolished under that chapter. The consortium shall be reviewed
50	50	during the period in which state agencies scheduled to be abolished
51	51	in 2035, and every 12 years after that year, are reviewed.
52	52	SUBCHAPTER B. POWERS AND DUTIES OF CONSORTIUM
53	53	Sec. 90.051. POWERS AND DUTIES. The consortium:
54	54	(1) may award grants to persons for the purpose of:
55	55	(A) conducting collaborative research on
56	56	infectious diseases and associated conditions and innovative
57	57	methods to prepare for infectious disease outbreaks;
58	58	(B) developing treatments and cures, including
59	59	vaccines, for diseases and associated conditions;
60	60	(C) developing education initiatives and
61	61	conducting outreach to engage and inform the public on infectious
62	62	diseases and associated conditions; and
63	63	(D) developing initiatives to prepare for and
64	64	rapidly respond to infectious disease outbreaks and public health
65	65	crises;
66	66	(2) shall establish a centralized research location
67	67	through which the consortium will operate and facilitate
68	68	collaborative research on infectious diseases and related
69	69	disorders and the development of treatments and cures for
70	70	infectious diseases;
71	71	(3) shall establish appropriate standards and
72	72	oversight bodies to ensure money authorized under this chapter is
73	73	properly used for infectious disease research and preparation and
74	74	development of infectious disease treatments and cures;
75	75	(4) shall develop collaborative research
76	76	opportunities in accordance with Subchapter F;
77	77	(5) may employ necessary staff to provide
78	78	administrative support;
79	79	(6) shall continuously monitor contracts or
80	80	agreements entered into under this chapter to ensure that each
81	81	grant recipient or person conducting research under Subchapter F
82	82	complies with the terms and conditions of the contract or
83	83	agreement;
84	84	(7) shall ensure that all grant applications comply
85	85	with this chapter and rules adopted under this chapter before the
86	86	applications are submitted to the scientific committee for
87	87	consideration and approval; and
88	88	(8) shall establish procedures to document that the
89	89	consortium, the consortium's employees, and other consortium
90	90	members appointed or hired under this chapter comply with any laws
91	91	and rules governing conflicts of interest.
92	92	Sec. 90.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
93	93	OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
94	94	hire a chief executive officer. The chief executive officer shall
95	95	perform the duties required under this chapter or designated by the
96	96	oversight committee. The chief executive officer must have a
97	97	demonstrated ability to lead and develop academic, commercial, and
98	98	public or private partnerships and coalitions.
99	99	(b) The consortium shall employ a chief compliance officer
100	100	to monitor compliance with this chapter and rules adopted under
101	101	this chapter and report incidents of noncompliance to the oversight
102	102	committee. The chief compliance officer shall:
103	103	(1) ensure that all grant applications comply with
104	104	this chapter and rules adopted under this chapter before the
105	105	applications are submitted to the scientific committee for
106	106	consideration and approval;
107	107	(2) attend and observe meetings of the scientific
108	108	committee to ensure compliance with this chapter and rules adopted
109	109	under this chapter; and
110	110	(3) perform other duties assigned under this chapter
111	111	or by the oversight committee.
112	112	(c) The chief executive officer may propose and the
113	113	oversight committee may approve the hiring of additional officers.
114	114	An officer hired under this subsection shall report directly to the
115	115	chief executive officer.
116	116	Sec. 90.053. CONSORTIUM PRINCIPAL OFFICE. (a) The
117	117	consortium shall establish its principal office at a facility in
118	118	this state that:
119	119	(1) is a world-recognized leader in infectious disease
120	120	research and vaccine development;
121	121	(2) is central to all parts of this state, including
122	122	areas with high-risk populations most vulnerable to infectious
123	123	diseases;
124	124	(3) has exclusive jurisdiction over a laboratory
125	125	facility with a federal biosafety level of BSL-4, as designated by
126	126	the Centers for Disease Control and Prevention; and
127	127	(4) has access to a sufficient number of suitable
128	128	specimens for vaccine testing efficacy and safety.
129	129	(b) The consortium's principal office is the consortium's
130	130	central research location through which the consortium operates and
131	131	facilitates collaborative research under this chapter.
132	132	(c) The consortium shall adopt appropriate procedures and
133	133	safeguards to ensure:
134	134	(1) the consortium and the facility described by
135	135	Subsection (a) are governed and operated independently of each
136	136	other; and
137	137	(2) the facility described by Subsection (a) receives
138	138	no unfair advantage in grants awarded under this chapter.
139	139	Sec. 90.054. ANNUAL REPORT; INTERNET POSTING. Not later
140	140	than January 31 of each year, the consortium shall prepare and
141	141	submit to the governor, the lieutenant governor, and each member of
142	142	the legislature and post on the consortium's Internet website a
143	143	written report that includes:
144	144	(1) the number of grants awarded during the preceding
145	145	state fiscal year;
146	146	(2) a list of grant recipients for the preceding state
147	147	fiscal year, including the dollar amount of the grant awarded to
148	148	each recipient;
149	149	(3) the consortium's administrative expenses for the
150	150	preceding state fiscal year;
151	151	(4) an assessment on the availability of money for
152	152	conducting research authorized under this chapter from sources
153	153	other than the consortium;
154	154	(5) a summary of findings during the preceding state
155	155	fiscal year from research projects funded by the consortium,
156	156	including any promising new research areas;
157	157	(6) an assessment of the relationship between the
158	158	research projects funded by the consortium during the preceding
159	159	state fiscal year and the overall strategy of the consortium's
160	160	research goals;
161	161	(7) a statement of the consortium's strategic research
162	162	and financial plans for the next state fiscal year;
163	163	(8) an estimate of the amount of money the state spent
164	164	during the preceding state fiscal year to treat individuals with
165	165	infectious diseases, including the amount spent to treat
166	166	individuals with diseases through the child health plan program,
167	167	Medicaid, the Teacher Retirement System of Texas, and the Employees
168	168	Retirement System of Texas; and
169	169	(9) a statement of the consortium's compliance program
170	170	activities during the preceding state fiscal year, including any
171	171	proposed legislative or other recommendations identified through
172	172	those activities.
173	173	Sec. 90.055. INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY
174	174	COMPTROLLER. (a) The consortium shall annually commission an
175	175	independent financial audit of the consortium's activities from a
176	176	certified public accounting firm.
177	177	(b) The consortium shall provide the audit to the
178	178	comptroller and, as soon as practicable after receiving the audit,
179	179	the comptroller shall:
180	180	(1) review and evaluate the audit and issue a public
181	181	report of that review and evaluation; and
182	182	(2) make recommendations to the consortium regarding
183	183	the financial practices of the consortium.
184	184	(c) The oversight committee shall review the audit and the
185	185	comptroller's report and recommendations. As applicable, the
186	186	oversight committee shall seek to modify the consortium's financial
187	187	practices based on the audit, report, and recommendations.
188	188	Sec. 90.056. GRANT RECORDS. (a) The consortium shall
189	189	maintain complete records of:
190	190	(1) the review of each grant application submitted to
191	191	the consortium, including the score assigned to each grant
192	192	application reviewed, regardless of whether the grant application
193	193	is approved by the scientific committee or withdrawn after
194	194	submission to the scientific committee;
195	195	(2) each grant recipient's financial reports,
196	196	including dedicated matching money provided by the recipient for
197	197	the specified research project;
198	198	(3) progress reports for each research project awarded
199	199	money under this chapter;
200	200	(4) the consortium's policies and procedures for
201	201	determining any conflicts of interest and identifying each
202	202	principal investor and owner of each grant recipient as provided by
203	203	consortium rules; and
204	204	(5) the consortium's review of the grant recipient's
205	205	financial and progress reports.
206	206	(b) The consortium shall have periodic audits conducted of
207	207	any electronic grant management system used to maintain records
208	208	under this section of grant applications and grants awarded. The
209	209	consortium shall address in a timely manner each issue identified
210	210	in an audit of the system.
211	211	Sec. 90.057. GIFTS AND GRANTS. The consortium may solicit
212	212	and accept gifts and grants from any source to carry out the
213	213	purposes of this chapter.
214	214	SUBCHAPTER C. OVERSIGHT COMMITTEE
215	215	Sec. 90.101. COMPOSITION OF OVERSIGHT COMMITTEE;
216	216	ELIGIBILITY OF MEMBERS. (a) The oversight committee is the
217	217	governing body of the consortium.
218	218	(b) The oversight committee is composed of:
219	219	(1) the following nine voting members:
220	220	(A) three members appointed by the governor;
221	221	(B) three members appointed by the lieutenant
222	222	governor; and
223	223	(C) three members appointed by the governor from
224	224	a list provided to the governor by the speaker of the house of
225	225	representatives; and
226	226	(2) an ex officio nonvoting member, the chief
227	227	executive officer of the facility described by Section 90.053(a).
228	228	(c) The voting members of the oversight committee must
229	229	represent the geographic and cultural diversity of this state.
230	230	(d) In making appointments or recommendations for
231	231	appointments to the oversight committee, the governor, lieutenant
232	232	governor, and speaker of the house of representatives must each
233	233	appoint or recommend, as applicable, at least one person who is a
234	234	physician or a scientist with extensive experience in epidemiology,
235	235	vaccines, or public health.
236	236	(e) A person may not be a voting member of the oversight
237	237	committee if the person or the person's spouse:
238	238	(1) is employed by or participates in the management
239	239	of a business entity or other organization receiving money from the
240	240	consortium;
241	241	(2) owns or controls, directly or indirectly, an
242	242	interest in a business entity or other organization receiving money
243	243	from the consortium; or
244	244	(3) uses or receives a substantial amount of tangible
245	245	goods, services, or money from the consortium, other than
246	246	reimbursement authorized by this chapter for oversight committee
247	247	membership, attendance, or expenses.
248	248	Sec. 90.102. TERMS; VACANCY; REMOVAL. (a) Oversight
249	249	committee members serve at the pleasure of the appointing authority
250	250	for staggered four-year terms, with the terms of four or five voting
251	251	members expiring January 31 of each even-numbered year.
252	252	(b) Not later than the 30th day after the date an oversight
253	253	committee member's term expires, the appropriate appointing
254	254	authority shall appoint a replacement in the same manner as the
255	255	original appointment.
256	256	(c) If a vacancy occurs on the oversight committee, the
257	257	appropriate appointing authority shall appoint a successor in the
258	258	same manner as the original appointment to serve for the remainder
259	259	of the unexpired term. The appropriate appointing authority shall
260	260	appoint the successor not later than the 30th day after the date the
261	261	vacancy occurs.
262	262	(d) It is a ground for removal from the oversight committee
263	263	that a member:
264	264	(1) is ineligible for membership under Section 90.101;
265	265	(2) cannot, because of illness or disability,
266	266	discharge the member's duties for a substantial part of the member's
267	267	term; or
268	268	(3) is absent from more than half of the regularly
269	269	scheduled oversight committee meetings that the member is eligible
270	270	to attend during a calendar year without an excuse approved by a
271	271	majority vote of the oversight committee.
272	272	Sec. 90.103. OFFICERS. (a) The oversight committee shall
273	273	elect a presiding officer and assistant presiding officer from
274	274	among its voting members every two years. The oversight committee
275	275	may elect additional officers from among its voting members.
276	276	(b) The presiding officer and assistant presiding officer
277	277	may not serve in the position to which the officer was elected for
278	278	two consecutive terms.
279	279	(c) The oversight committee shall:
280	280	(1) establish and approve duties and responsibilities
281	281	for officers of the committee; and
282	282	(2) develop and implement policies that distinguish
283	283	the responsibilities of the oversight committee and the committee's
284	284	officers from the responsibilities of the chief executive officer
285	285	and the employees of the consortium.
286	286	Sec. 90.104. EXPENSES. A member of the oversight committee
287	287	is not entitled to compensation but is entitled to reimbursement
288	288	for actual and necessary expenses incurred in attending meetings of
289	289	the committee or performing other official duties authorized by the
290	290	presiding officer.
291	291	Sec. 90.105. CONFLICT OF INTEREST; DISCLOSURE AND RECUSAL.
292	292	(a) The oversight committee shall adopt conflict-of-interest
293	293	rules, based on standards adopted by the National Institutes of
294	294	Health, to govern members of the oversight committee, members of
295	295	the scientific committee, and consortium employees.
296	296	(b) Nothing in this chapter limits the authority of the
297	297	oversight committee to adopt additional conflict-of-interest rules
298	298	and standards.
299	299	(c) If an oversight committee member or scientific
300	300	committee member has a conflict of interest based on standards
301	301	adopted under this section regarding a grant application that comes
302	302	before the member for review or other action, the member shall:
303	303	(1) provide to the chief executive officer and the
304	304	presiding officer of the oversight committee, or if the presiding
305	305	officer has the conflict, the next ranking member of the oversight
306	306	committee, written notice of the conflict of interest;
307	307	(2) disclose the conflict of interest in an open
308	308	meeting of the oversight committee; and
309	309	(3) recuse himself or herself from participating in
310	310	the review, discussion, deliberation, and vote on the grant
311	311	application and from accessing information regarding the matter to
312	312	be decided.
313	313	Sec. 90.106. RULEMAKING AUTHORITY. The oversight committee
314	314	may adopt rules necessary to administer this chapter.
315	315	Sec. 90.107. CODE OF CONDUCT. The oversight committee
316	316	shall adopt a code of conduct applicable to each member of the
317	317	oversight committee, member of the scientific committee, and
318	318	consortium employee.
319	319	Sec. 90.108. FINANCIAL STATEMENT REQUIRED. Each member of
320	320	the oversight committee shall file with the chief compliance
321	321	officer a verified financial statement complying with Sections
322	322	572.022 through 572.0252, Government Code, as required of a state
323	323	officer by Section 572.021, Government Code.
324	324	SUBCHAPTER D. FUNDING
325	325	Sec. 90.151. INFECTIOUS DISEASE RESEARCH FUND. (a) The
326	326	infectious disease research fund is a dedicated account in the
327	327	general revenue fund.
328	328	(b) The fund consists of:
329	329	(1) the proceeds from the issuance of bonds authorized
330	330	by Section 69, Article III, Texas Constitution, and any additional
331	331	appropriations of money to the fund by the legislature;
332	332	(2) gifts and grants, including grants from the
333	333	federal government, received for the fund; and
334	334	(3) interest, dividends, and other income earned on
335	335	the investment of money in the fund.
336	336	(c) Money in the fund may only be used for:
337	337	(1) awarding grants authorized under this chapter;
338	338	(2) purchasing, subject to approval by the oversight
339	339	committee, research and laboratory facilities by or on behalf of a
340	340	grant recipient;
341	341	(3) operating the consortium; and
342	342	(4) debt service on bonds issued as authorized by
343	343	Section 69, Article III, Texas Constitution.
344	344	Sec. 90.152. ISSUANCE OF GENERAL OBLIGATION BONDS. (a) The
345	345	consortium may request the Texas Public Finance Authority to issue
346	346	and sell general obligation bonds of the state as authorized by
347	347	Section 69, Article III, Texas Constitution.
348	348	(b) The Texas Public Finance Authority may not issue and
349	349	sell more than $300 million in general obligation bonds authorized
350	350	by this section in a state fiscal year.
351	351	(b-1) The Texas Public Finance Authority may not issue and
352	352	sell more than $300 million in general obligation bonds authorized
353	353	by this section before January 1, 2023. This subsection expires
354	354	September 1, 2023.
355	355	(c) The consortium shall determine, and include in its
356	356	request for issuing bonds, the amount, exclusive of costs of
357	357	issuance, of the bonds to be issued and the preferred time for
358	358	issuing the bonds.
359	359	(d) The Texas Public Finance Authority shall issue the bonds
360	360	in accordance with and subject to Chapter 1232, Government Code,
361	361	and Texas Public Finance Authority rules. The bonds may be issued
362	362	in installments.
363	363	(e) Proceeds of the bonds issued under this section shall be
364	364	deposited in separate funds or accounts in the state treasury, as
365	365	prescribed by the proceedings authorizing the bonds.
366	366	(f) The proceeds of the bonds may be used only to:
367	367	(1) make grants authorized by Section 69, Article III,
368	368	Texas Constitution;
369	369	(2) purchase research facilities approved by the
370	370	consortium;
371	371	(3) pay costs of operating the consortium; or
372	372	(4) pay costs of issuing the bonds and related bond
373	373	administration costs of the Texas Public Finance Authority.
374	374	Sec. 90.153. AUTHORIZED USE OF FUNDS. (a) A grant
375	375	recipient awarded money from the infectious disease research fund
376	376	established under Section 90.151 may use the money for research
377	377	consistent with the purposes of this chapter and in accordance with
378	378	a contract between the grant recipient and the consortium.
379	379	(b) Money awarded under this chapter may be used for
380	380	authorized expenses, including honoraria, salaries and benefits,
381	381	travel, conference fees and expenses, consumable supplies, other
382	382	operating expenses, contracted research and development, capital
383	383	equipment, and construction or renovation of state or private
384	384	facilities.
385	385	SUBCHAPTER E. SCIENTIFIC COMMITTEE AND GRANT AWARD PROCEDURES
386	386	Sec. 90.201. SCIENTIFIC COMMITTEE. (a) The consortium
387	387	shall establish a scientific committee. The committee is composed
388	388	of seven or nine members appointed by the oversight committee. The
389	389	members must:
390	390	(1) reside in this state; and
391	391	(2) have expertise in the field of infectious diseases
392	392	or another field considered appropriate by the oversight committee.
393	393	(b) The scientific committee shall elect a presiding
394	394	officer and assistant presiding officer from among its members
395	395	every two years. The scientific committee may elect additional
396	396	officers from among its members.
397	397	(c) Scientific committee members serve at the pleasure of
398	398	the oversight committee.
399	399	(d) The scientific committee may establish one or more
400	400	advisory committees to assist the scientific committee in
401	401	performing its duties under this chapter. A member of an advisory
402	402	committee established under this subsection:
403	403	(1) may reside in or outside of this state;
404	404	(2) must have appropriate expertise to carry out the
405	405	purposes for which the advisory committee was established; and
406	406	(3) serves at the pleasure of the scientific
407	407	committee.
408	408	Sec. 90.202. GRANT APPLICATION REVIEW AND SELECTION. (a)
409	409	The scientific committee shall receive, score, and select grant
410	410	applications to fund based on the procedures and criteria described
411	411	by this section. The oversight committee shall contract with and
412	412	award grants to each grant applicant selected by the scientific
413	413	committee.
414	414	(b) The scientific committee shall establish procedures and
415	415	criteria for reviewing grant applications and awarding grants under
416	416	this chapter. The procedures must require the scientific committee
417	417	to score and select grant applications to fund by developing a
418	418	prioritized list that:
419	419	(1) ranks the grant applications in the order the
420	420	scientific committee determines the research projects proposed by
421	421	the applications should be funded; and
422	422	(2) includes information explaining the reasons each
423	423	grant application on the list meets the scientific committee's
424	424	standards for funding.
425	425	(c) The scientific committee must consider the grant
426	426	applicant's capability in:
427	427	(1) conducting research on infectious diseases and
428	428	associated conditions;
429	429	(2) developing treatments and cures, including
430	430	vaccines, for infectious diseases and associated conditions that
431	431	are marketable to the public;
432	432	(3) conducting outreach to engage and inform the
433	433	public on the applicant's research results and best practices for
434	434	treatment of infectious diseases and associated conditions;
435	435	(4) developing innovative methods to prepare for
436	436	infectious disease outbreaks; and
437	437	(5) developing educational initiatives on the
438	438	prevention of and treatment for infectious diseases and associated
439	439	conditions.
440	440	(d) The chief compliance officer shall compare each grant
441	441	applicant to a list of donors from any nonprofit organization
442	442	established to provide support to the consortium before the
443	443	application is submitted to the scientific committee for review and
444	444	selection and again before any contract is executed or grant is
445	445	awarded to the applicant.
446	446	(e) The consortium may not award a grant to an applicant who
447	447	has made a gift or grant to the consortium or a nonprofit
448	448	organization established to provide support to the consortium.
449	449	Sec. 90.203. MAXIMUM AMOUNT OF ANNUAL AWARDS. The
450	450	consortium may not award more than $300 million in grants under this
451	451	chapter in a state fiscal year.
452	452	Sec. 90.204. PERIOD FOR AWARDS. The consortium may not
453	453	award a grant under this chapter after August 31, 2034.
454	454	Sec. 90.205. CONTRACT TERMS. (a) The oversight committee
455	455	shall negotiate on behalf of the state regarding a grant awarded
456	456	under this chapter.
457	457	(b) Before awarding money to a grant recipient selected by
458	458	the scientific committee, the oversight committee shall enter into
459	459	a written contract with the grant recipient. The contract may
460	460	specify that:
461	461	(1) if all or any portion of the amount of the grant is
462	462	used to build a capital improvement:
463	463	(A) the state retains a lien or other interest in
464	464	the capital improvement in proportion to the percentage of the
465	465	grant amount used to pay for the capital improvement; and
466	466	(B) the grant recipient shall, if the capital
467	467	improvement is sold:
468	468	(i) repay to this state the grant money used
469	469	to pay for the capital improvement, with interest at the rate and
470	470	according to the other terms provided by the contract; and
471	471	(ii) share with this state a proportionate
472	472	amount of any profit realized from the sale;
473	473	(2) if the grant recipient has not used grant money
474	474	awarded under this chapter for the purposes for which the grant was
475	475	intended, the recipient shall repay that amount and any related
476	476	interest applicable under the contract to this state at the agreed
477	477	rate and on the agreed terms; and
478	478	(3) if the grant recipient fails to meet the terms and
479	479	conditions of the contract, the consortium may terminate the
480	480	contract using the written process prescribed in the contract and
481	481	require the recipient to repay the grant money awarded under this
482	482	chapter and any related interest applicable under the contract to
483	483	this state at the agreed rate and on the agreed terms.
484	484	(c) The contract must:
485	485	(1) require, in accordance with Subsection (d), the
486	486	grant recipient to dedicate an amount of matching funds equal to
487	487	one-half of the amount of the research grant awarded; and
488	488	(2) specify:
489	489	(A) the amount of matching funds to be dedicated
490	490	under Subdivision (1);
491	491	(B) the period in which the grant award must be
492	492	spent;
493	493	(C) the name of the research project to which
494	494	matching funds are to be dedicated; and
495	495	(D) the specific deliverables of the project that
496	496	is the subject of the grant proposal.
497	497	(d) Before the oversight committee may award for infectious
498	498	disease research any grant of any proceeds of the bonds issued under
499	499	this chapter, the recipient of the grant must certify that the
500	500	recipient has an amount of funds equal to one-half of the grant and
501	501	dedicate those funds to the research that is the subject of the
502	502	grant request. The consortium shall adopt rules specifying the
503	503	manner in which a grant recipient fulfills obligations under this
504	504	subsection.
505	505	Sec. 90.206. GRANT EVALUATION. (a) The oversight
506	506	committee shall require as a condition of a grant award that the
507	507	grant recipient submit to regular inspection reviews by consortium
508	508	staff of the research project for which the award was made,
509	509	including progress oversight reviews, to ensure compliance with the
510	510	terms of the award and to ensure the scientific merit of the
511	511	research.
512	512	(b) The chief executive officer shall determine the review
513	513	process under this section. The chief executive officer may
514	514	suspend or terminate in accordance with Subsection (f) grants made
515	515	that fail to meet contractual obligations.
516	516	(c) The chief executive officer shall report at least
517	517	annually to the oversight committee on the progress and continued
518	518	merit of each research project funded by a grant under this chapter.
519	519	(d) The consortium shall establish and implement reporting
520	520	requirements to ensure that each grant recipient complies with the
521	521	terms and conditions of the grant contract, including verification
522	522	of the amounts of matching funds dedicated to the research project
523	523	that is the subject of the grant award to the grant recipient.
524	524	(e) The consortium shall implement a system to:
525	525	(1) track the dates on which reports under Subsection
526	526	(d) are due and received by the consortium; and
527	527	(2) monitor the status of any required report that is
528	528	not timely submitted to the consortium.
529	529	(f) The chief compliance officer shall monitor compliance
530	530	with this section and at least annually inquire into and monitor the
531	531	status of any required report that is not timely submitted to the
532	532	consortium by a grant recipient. The chief compliance officer
533	533	shall notify the general counsel for the consortium and the
534	534	oversight committee of a grant recipient that has not maintained
535	535	compliance with the reporting requirements or matching funds
536	536	provisions of the grant contract to allow the consortium to begin
537	537	suspension or termination of the grant contract under Subsection
538	538	(b). This subsection does not limit other remedies available under
539	539	the grant contract.
540	540	Sec. 90.207. COMPLIANCE PROGRAM. (a) In this section,
541	541	"compliance program" means a process to assess and ensure
542	542	compliance by the oversight committee members, scientific
543	543	committee members, and consortium employees with applicable laws,
544	544	rules, and policies, including matters of:
545	545	(1) ethics and standards of conduct;
546	546	(2) financial reporting;
547	547	(3) internal accounting controls; and
548	548	(4) auditing.
549	549	(b) The consortium shall establish a compliance program
550	550	that operates under the direction of the chief compliance officer.
551	551	The consortium may establish procedures, such as a telephone
552	552	hotline, to allow private access to the compliance program office
553	553	and to preserve the confidentiality of communications and the
554	554	anonymity of a person making a compliance report or participating
555	555	in a compliance investigation.
556	556	Sec. 90.208. MEDICAL ETHICS. The oversight committee shall
557	557	ensure that a grant recipient of money under this chapter conduct
558	558	any associated research project:
559	559	(1) with full consideration for the ethical and
560	560	medical implications of the research project; and
561	561	(2) in a manner that complies with federal and state
562	562	laws applicable to the research project.
563	563	Sec. 90.209. PATENT ROYALTIES AND LICENSE REVENUES PAID TO
564	564	STATE. (a) The oversight committee shall establish standards to
565	565	require each research project awarded money under this chapter to
566	566	be subject to an intellectual property agreement that allows the
567	567	state to collect royalties, income, and other benefits, including
568	568	interest or proceeds resulting from securities and equity
569	569	ownership, realized as a result of the research project.
570	570	(b) In determining the state's interest in any intellectual
571	571	property rights, the oversight committee shall balance the
572	572	opportunity of this state to benefit from the patents, royalties,
573	573	licenses, and other benefits resulting from basic research, vaccine
574	574	development, and clinical trials with the need to ensure that
575	575	essential infectious disease research is not unreasonably hindered
576	576	by the intellectual property agreement and that the agreement does
577	577	not unreasonably remove the incentive on the part of each grant
578	578	recipient and associated individuals.
579	579	SUBCHAPTER F. COLLABORATIVE RESEARCH OPPORTUNITIES
580	580	Sec. 90.251. OPTION TO EXPAND ON RESEARCH FINDINGS. (a)
581	581	The consortium shall develop opportunities for a person, regardless
582	582	of whether the person is a grant applicant or recipient, to access
583	583	and expand on the research findings of:
584	584	(1) a finished research project funded by the
585	585	consortium under this chapter; or
586	586	(2) any research or other work conducted by a person
587	587	under this subchapter.
588	588	(b) The consortium may establish and maintain an electronic
589	589	system through which a person may access information on research
590	590	findings described by Subsection (a).
591	591	Sec. 90.252. COLLABORATION REQUIREMENTS. (a) The
592	592	consortium shall ensure that any research or other work that
593	593	expands on research findings described by Section 90.251(a):
594	594	(1) proportionally recognizes the contributions made
595	595	by each person who participated in the underlying research and in
596	596	the new research or other work; and
597	597	(2) is subject to the same intellectual property
598	598	agreement requirements for a research project under Section 90.209.
599	599	(b) A person seeking to expand on research findings
600	600	described by Section 90.251(a) must:
601	601	(1) submit an application to and receive approval from
602	602	the scientific committee;
603	603	(2) allow the consortium to conduct the same
604	604	evaluation procedures for a grant recipient under Section 90.206;
605	605	and
606	606	(3) allow the consortium to retain the comprehensive
607	607	research findings of any research or other work conducted by the
608	608	person to enable other persons to further expand on those research
609	609	findings under this subchapter.
610	610	SECTION 2. (a) Not later than January 31, 2022, the
611	611	appropriate appointing authority shall appoint the members to the
612	612	Texas Research Consortium to Cure Infectious Diseases (TRANSCEND)
613	613	Oversight Committee as required by Section 90.101, Health and
614	614	Safety Code, as added by this Act. The oversight committee may not
615	615	take action until a majority of the appointed members have taken
616	616	office.
617	617	(b) Notwithstanding Section 90.101, Health and Safety Code,
618	618	as added by this Act, in making the initial appointments to the
619	619	Texas Research Consortium to Cure Infectious Diseases (TRANSCEND)
620	620	Oversight Committee under that section:
621	621	(1) the governor shall designate:
622	622	(A) three members to serve terms expiring January
623	623	31, 2024, including one member from the list provided by the speaker
624	624	of the house of representatives; and
625	625	(B) three members to serve terms expiring January
626	626	31, 2026, including two members from the list provided by the
627	627	speaker of the house of representatives; and
628	628	(2) the lieutenant governor shall designate:
629	629	(A) one member to serve a term expiring January
630	630	31, 2024; and
631	631	(B) two members to serve terms expiring January
632	632	31, 2026.
633	633	SECTION 3. Notwithstanding Section 90.054, Health and
634	634	Safety Code, as added by this Act, the Texas Research Consortium to
635	635	Cure Infectious Diseases (TRANSCEND) is not required to submit a
636	636	report under that section until January 31, 2023.
637	637	SECTION 4. This Act takes effect January 1, 2022, but only
638	638	if the constitutional amendment proposed by the 87th Legislature,
639	639	Regular Session, 2021, providing for the establishment of the Texas
640	640	Research Consortium to Cure Infectious Diseases (TRANSCEND) and
641	641	authorizing the issuance of up to $3 billion in general obligation
642	642	bonds to fund collaborative research on and development of
643	643	infectious disease treatments and cures for humans is approved by
644	644	the voters. If that amendment is not approved by the voters, this
645	645	Act has no effect.