By: Thompson of Harris H.B. No. 15
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Mental Health and Brain Research
Institute of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle H, Title 3, Education Code, is amended
by adding Chapter 157 to read as follows:
CHAPTER 157. MENTAL HEALTH AND BRAIN RESEARCH INSTITUTE OF TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 157.001. DEFINITIONS. In this chapter:
(1) "Institute" means the Mental Health and Brain
Research Institute of Texas.
(2) "Oversight committee" means the Mental Health and
Brain Research Institute of Texas Oversight Committee.
(3) "Peer review committee" means the Mental Health
and Brain Research Institute of Texas Peer Review Committee.
(4) "Program integration committee" means the Mental
Health and Brain Research Institute of Texas Program Integration
Committee.
(5) "Research plan" means the Texas Mental Health and
Brain Health Research Plan developed by the institute.
Sec. 157.002. PURPOSES. The Mental Health and Brain
Research Institute of Texas is established to:
(1) create and expedite innovation in mental health
and brain research to improve the health of residents of this state,
enhance the potential for a medical or scientific breakthrough in
mental health and brain-related sciences and biomedical research,
and enhance the mental health and brain research superiority of
this state;
(2) attract, create, or expand research capabilities
of eligible institutions of higher education and other public or
private entities by awarding grants to promote a substantial
increase in mental health and brain research, strategies for
prevention of brain-related diseases, brain health initiatives,
and the creation of high-quality jobs in this state; and
(3) develop and implement a research plan to foster
synergistic collaboration and investigation into mental health and
brain health research by eligible institutions of higher education
and their partners.
Sec. 157.003. STATE AUDITOR. Nothing in this chapter
limits the authority of the state auditor under Chapter 321,
Government Code, or other law.
SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
Sec. 157.051. POWERS AND DUTIES. (a) The institute:
(1) may make grants to provide money to institutions
of learning, advanced medical research facilities, public and
private persons, and collaborations in this state to further the
purposes of this chapter, including:
(A) implementation of the research plan;
(B) research, such as translational and clinical
research into:
(i) the causes of and prevention,
treatment, rehabilitation, protocols, and cures for mental health
and human brain-related diseases, syndromes, disorders,
dysfunction, injuries, developmental issues, neurological health
issues, 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 peer
review committee and the oversight committee approve;
(C) providing money for facilities, equipment,
supplies, salaries, benefits, and other costs related to mental
health and brain research; and
(D) prevention programs and strategies to
mitigate the incidence of detrimental health impacts on the brain;
(2) shall collaborate with relevant state agencies,
coordinating councils, and consortiums to enhance mental health and
brain-related health care and research;
(3) shall establish the appropriate standards and
oversight bodies to ensure money authorized under this chapter is
properly used for the purposes of this chapter;
(4) shall employ necessary staff to provide
administrative support to the institute;
(5) may contract with another state agency to share
the cost of administrative services, including grant accounting,
grant monitoring, technical and document management of the grant
application review process, legal services, and compliance
services;
(6) shall monitor grant contracts authorized by this
chapter and ensure that each grant recipient complies with the
terms and conditions of the grant contract;
(7) shall ensure that all grant proposals comply with
this chapter and rules adopted under this chapter before the
proposals are submitted to the oversight committee for approval;
(8) shall establish procedures to document that the
institute, its employees, and its committee members appointed under
this chapter comply with all laws and rules governing the peer
review process and conflicts of interest; and
(9) shall create a statewide research and clinical
data registry for brain research.
(b) The institute shall implement and monitor the research
plan and revise the plan as necessary.
Sec. 157.052. 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 by 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 to report incidents of noncompliance to the oversight
committee.
(c) The chief executive officer may hire any other officer
position the chief executive officer determines necessary for
efficient operation of the institute.
Sec. 157.053. ANNUAL PUBLIC 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 the standing committee of each house
of the legislature with primary jurisdiction over institute matters
and post on the institute's Internet website a report that
outlines:
(1) the institute's activities under this chapter;
(2) a list of recipients that were awarded grants
during the preceding state fiscal year, including the grant amount
awarded to each recipient;
(3) any research accomplishments achieved during the
preceding state fiscal year by a grant recipient or the recipient's
partners;
(4) an overview summary of the institute's most recent
audited financial statement;
(5) an assessment of the relationship between the
institute's grants and the strategy of its research program;
(6) a statement of the institute's strategic research
plans;
(7) an estimate of the financial cost to this state of
brain disease during the most recent state fiscal year for which
data is available, including the amounts this state spent related
to brain disease through the Medicaid program, the Teacher
Retirement System of Texas, and the Employees Retirement System of
Texas;
(8) a statement of the institute's compliance program
activities, including any proposed legislation or other
recommendations identified through the activities;
(9) for the preceding state fiscal year:
(A) a list of any conflicts of interest that
require recusal under this chapter or rules adopted under this
chapter;
(B) any unreported conflicts of interest
confirmed by an investigation conducted under Section 157.254,
including any actions taken by the institute regarding an
unreported conflict of interest and subsequent investigation; and
(C) any waivers granted through the process
established under Section 157.253; and
(10) the institute's future direction.
Sec. 157.054. INDEPENDENT FINANCIAL AUDIT. (a) The
institute shall annually commission an independent financial audit
of its activities from a certified public accounting firm.
(b) The oversight committee shall review the annual
financial audit and the financial practices of the institute.
Sec. 157.055. GRANT RECORDS. (a) The institute shall
maintain complete records of:
(1) regardless of whether the grant application is
funded by the institute or is withdrawn after submission to the
institute, the review of each grant application submitted to the
institute, including the score assigned to each grant application
reviewed by the peer review committee in accordance with rules
adopted under Section 157.302;
(2) each grant recipient's financial reports,
including the amount of matching money dedicated to the research
specified for the grant award;
(3) each grant recipient's progress reports;
(4) for the purpose of determining any conflict of
interest, the identity of each principal investor and owner of each
grant recipient as provided by institute rules; and
(5) the institute's review of the grant recipient's
financial reports and progress reports.
(b) The institute shall keep the records described by
Subsection (a) until at least the 15th anniversary of the date the
record was issued.
(c) The institute shall have prepared periodic audits of any
electronic grant management system used to maintain records of
grant applications and grant awards under this section. The
institute shall timely address each weakness identified in an audit
of the system.
Sec. 157.056. GIFTS AND GRANTS. The institute may solicit
and accept gifts and grants from any source for the purposes of this
chapter.
Sec. 157.057. PROHIBITED OFFICE LOCATION. An institute
employee may not have an office located in a facility owned by an
entity receiving or applying to receive money from the institute.
Sec. 157.058. COMPLIANCE PROGRAM. (a) The institute shall
establish a compliance program that operates under the direction of
the institute's chief compliance officer to monitor compliance
with this chapter and rules adopted under this chapter and to use
to report incidents of noncompliance to the oversight committee.
(b) The chief compliance officer or designee shall attend
and observe meetings of the peer review committee and the program
integration committee to ensure compliance with this chapter and
rules adopted under this chapter.
(c) The chief compliance officer shall submit a written
report to the oversight committee confirming that each grant
application recommendation included on the list submitted by the
program integration committee under Section 157.302(a)(2) followed
the oversight committee's rules regarding the procedure for
awarding grants under this chapter. The report must contain all
relevant information on:
(1) the peer review process for the grant application;
(2) the application's peer review score assigned by
the peer review committee;
(3) adherence to the conflict-of-interest
notification and recusal process; and
(4) the confirmation that a grant applicant
recommended for approval did not make any gift or grant prohibited
by Section 157.302(f).
(d) To ensure each grant recipient complies with reporting
requirements included in the grant contract and the rules adopted
under this chapter, the institute shall implement a system to:
(1) track the dates on which grant recipient reports
are due and are received by the institute; and
(2) monitor the status of any required report that a
grant recipient does not timely submit to the institute.
(e) The chief compliance officer shall:
(1) monitor compliance with this section;
(2) inquire into and monitor the status of any
required report that a grant recipient does not timely submit to the
institute; and
(3) notify the general counsel of the institute and
the oversight committee of a grant recipient that has not complied
with the reporting requirements of the grant contract to allow the
institute to suspend or terminate the grant contract as warranted.
(f) The chief compliance officer shall establish procedures
for investigating allegations of fraud, waste, or abuse of state
resources against oversight committee members, institute employees
or contractors, grant applicants, or grant recipients. The
procedures must include:
(1) private access to the compliance program office,
such as a telephone hotline; and
(2) to the extent possible, preservation of the
confidentiality of communications and the anonymity of a person
submitting a compliance report related to fraud, waste, or abuse or
participating in a compliance investigation.
SUBCHAPTER C. OVERSIGHT COMMITTEE
Sec. 157.101. 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.
(c) The oversight committee members must represent the
geographic and cultural diversity of this state.
(d) In making appointments to the oversight committee, the
governor, lieutenant governor, and speaker of the house of
representatives:
(1) must each appoint at least one person who is a
physician or a scientist with extensive experience in the field of
brain disease or public health; and
(2) should attempt to include persons affected by
brain disease or family members or caregivers of brain disease
patients if possible.
(e) A person may not be an oversight committee member if the
person or the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization receiving money from the
institute;
(2) owns or controls, directly or indirectly, an
interest in a business entity or other organization receiving money
from the institute; or
(3) uses or receives a substantial amount of tangible
goods, services, or money from the institute, other than
reimbursement authorized by this chapter for oversight committee
membership, attendance, or expenses.
Sec. 157.102. REMOVAL. (a) It is a ground for removal from
the oversight committee that a member:
(1) is ineligible for membership under Section
157.101(e);
(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 committee.
(b) The validity of an action of the oversight committee is
not affected by the fact that it is taken when a ground for removal
of a committee member exists.
(c) If the chief executive officer has knowledge that a
potential ground for removal exists, the chief executive officer
shall notify the presiding officer of the oversight committee of
the potential ground. The presiding officer shall then notify the
appointing authority and the attorney general that a potential
ground for removal exists. If the potential ground for removal
involves the presiding officer, the chief executive officer shall
notify the next highest ranking officer of the oversight committee,
who shall then notify the appointing authority and the attorney
general that a potential ground for removal exists.
Sec. 157.103. TERMS; VACANCY. (a) Oversight committee
members appointed by the governor, lieutenant governor, and speaker
of the house serve at the pleasure of the appointing official for
staggered six-year terms, with the terms of three members expiring
on January 31 of each odd-numbered year.
(b) If a vacancy occurs on the oversight committee, the
appropriate appointing official shall appoint a successor in the
same manner as the original appointment to serve for the remainder
of the unexpired term. The appropriate appointing official shall
appoint the successor not later than the 30th day after the date the
vacancy occurs.
Sec. 157.104. 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
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. 157.105. EXPENSES. An oversight committee member 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. 157.106. MEETINGS. (a) The oversight committee shall
hold at least one public meeting each quarter of the calendar year,
with appropriate notice and a formal public comment period.
(b) The oversight committee may conduct a closed meeting in
accordance with Subchapter E, Chapter 551, Government Code, to
discuss issues related to:
(1) managing, acquiring, or selling securities or
other revenue-sharing obligations realized under the standards
established as required by Section 157.305; and
(2) an ongoing compliance investigation into issues
related to fraud, waste, or abuse of state resources.
Sec. 157.107. POWERS AND DUTIES. (a) The oversight
committee shall:
(1) hire a chief executive officer;
(2) annually set priorities for each grant program
that receives money under this chapter; and
(3) consider the priorities set under Subdivision (2)
in awarding grants under this chapter.
(b) The oversight committee shall adopt a code of conduct
applicable to each oversight committee member, program integration
committee member, peer review committee member, and institute
employee that includes provisions prohibiting the member, the
employee, or the member's or employee's spouse from:
(1) accepting or soliciting any gift, favor, or
service that could reasonably influence the member or employee in
the discharge of official duties or that the member, employee, or
spouse knows or should know is being offered with the intent to
influence the member's or employee's official conduct;
(2) accepting employment or engaging in any business
or professional activity that would reasonably require or induce
the member or employee to disclose confidential information
acquired in the member's or employee's official position;
(3) accepting other employment or compensation that
could reasonably impair the member's or employee's independent
judgment in the performance of official duties;
(4) making personal investments or holding a financial
interest that could reasonably create a substantial conflict
between the member's or employee's private interest and the member's
or employee's official duties;
(5) intentionally or knowingly soliciting, accepting,
or agreeing to accept any benefit for exercising the member's
official powers or performing the member's or employee's official
duties in favor of another;
(6) leasing, directly or indirectly, any property,
capital equipment, employee, or service to any entity that receives
a grant from the institute;
(7) submitting a grant application for funding by the
institute;
(8) serving on the board of directors of an
organization established with a grant from the institute; or
(9) serving on the board of directors of a grant
recipient.
Sec. 157.108. RULEMAKING AUTHORITY. The oversight
committee may adopt rules to administer this chapter.
Sec. 157.109. FINANCIAL STATEMENT REQUIRED. Each oversight
committee member 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. 157.151. PEER REVIEW COMMITTEE. (a) The oversight
committee shall establish a peer review committee. The chief
executive officer, with approval by a simple majority of the
oversight committee members, shall appoint as members of the peer
review committee experts in fields related to the brain, including
research, health care, disease treatment and prevention, and other
study areas and trained patient advocates who meet the
qualifications adopted under Subsection (c).
(b) The oversight committee shall adopt a written policy on
in-state or out-of-state residency requirements for peer review
committee members.
(c) The oversight committee shall adopt rules regarding the
qualifications required of a trained patient advocate committee
member for a peer review committee. The rules must require the
trained patient advocate to successfully complete science-based
training.
(d) A peer review committee member may receive an honorarium
and may be reimburse for travel expenses incurred in conducting
committee business. Subchapter B, Chapter 2254, Government Code,
does not apply to an honorarium the member receives under this
chapter.
(e) The chief executive officer, in consultation with the
oversight committee, shall adopt a policy regarding honoraria and
document any change in the amount of honoraria paid to a peer review
committee member, including information explaining the basis for
that change.
(f) A peer review committee member appointed under this
chapter may not serve on the board of directors or other governing
board of an entity receiving a grant from the institute.
(g) Peer review committee members serve for terms as
determined by the chief executive officer.
Sec. 157.152. PROGRAM INTEGRATION COMMITTEE. (a) The
institute shall establish a program integration committee with the
duties assigned under this chapter.
(b) The program integration committee is composed of:
(1) the institute's chief executive officer, who shall
serve as the presiding officer of the program integration
committee;
(2) three senior-level institute employees
responsible for program policy and oversight, appointed by the
chief executive officer with the approval of a majority of the
oversight committee members; and
(3) the executive commissioner of the Health and Human
Services Commission or the executive commissioner's designee.
Sec. 157.153. 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
Health;
(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 at Tyler Health Science Center;
(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 president of Rice
University;
(15) one member appointed by the dean of University of
Houston College of Medicine; and
(16) one member appointed by the dean of Sam Houston
State University College of Osteopathic Medicine.
(b) The oversight committee by majority vote may increase
the membership of the higher education advisory committee to
include appointees representing institutions of higher education
not listed in Subsection (a).
(c) The higher education advisory committee shall advise
the oversight committee on issues, opportunities, the role of
higher education, and other subjects involving brain research.
Sec. 157.154. AD HOC ADVISORY COMMITTEE. (a) The oversight
committee, as necessary, may create additional ad hoc advisory
committees of experts to advise the oversight committee on issues
relating to brain research, brain health, brain-related diseases,
spinal cord injuries, traumatic brain injuries, mental and
behavioral health issues, including substance abuse disorders and
other addictions, or other brain- or neurological-related issues.
(b) Ad hoc committee members serve for the terms determined
by the oversight committee.
Sec. 157.155. EXPENSES. Members of the higher education
advisory committee or any ad hoc advisory committee appointed under
this subchapter serve without compensation but are entitled to
reimbursement for actual and necessary expenses incurred in
attending committee meetings or performing other official duties
authorized by the presiding officer, including travel expenses.
SUBCHAPTER E. FUNDING
Sec. 157.201. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH
FUND. (a) In this subchapter, "fund" means the MENTAL HEALTH AND
Brain Institute Research Fund established under Section 68, Article
III, Texas Constitution.
(b) The fund consists of:
(1) money transferred to the fund under Section 68,
Article III, Texas Constitution;
(2) money appropriated, credited, or transferred to
the fund by the legislature;
(3) patent, royalty, and license fees and other income
received under a contract entered into as provided by Section
157.304; and
(4) investment earnings and interest earned on amounts
credited to the fund.
(c) The fund may only be used for:
(1) the award of grants authorized under this chapter,
including grants for mental health and brain research, brain health
studies and disease prevention, and research facilities in this
state to conduct brain research;
(2) the purchase, subject to approval by the
institute, of research facilities by or for a state agency or grant
recipient; and
(3) the operation of the institute.
Sec. 157.202. AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
(a) A grant recipient awarded money from the fund 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) Except as otherwise provided by this section, grant
money awarded under this chapter may be used for authorized
expenses, including:
(1) honoraria;
(2) salaries and benefits;
(3) travel;
(4) conference fees and expenses;
(5) consumable supplies;
(6) operating expenses;
(7) contracted research and development;
(8) capital equipment;
(9) construction or renovation of state or private
facilities; and
(10) reimbursement for participation costs incurred
by brain cancer clinical trial participants, including
transportation, lodging, and any costs reimbursed under the cancer
clinical trial participation program established under Chapter 51,
Health and Safety Code.
(c) A grant recipient receiving money under this chapter for
brain disease research may not spend more than five percent of the
money for indirect costs. For purposes of this subsection,
"indirect costs" means the expenses of conducting business that are
not readily identified with a particular grant, contract, project,
function, or activity, but are necessary for the general operation
of the organization or the performance of the organization's
activities.
(d) Not more than five percent of the total amount of grant
money awarded under this chapter in a state fiscal year may be used
for facility purchase, construction, remodel, or renovation
purposes, and those expenditures must benefit brain research.
(e) Not more than 10 percent of the total amount of grant
money awarded under this chapter in a state fiscal year may be used
for prevention projects and strategies to mitigate the incidence of
detrimental health impacts on the brain during that year.
SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
Sec. 157.251. CONFLICT OF INTEREST. (a) The oversight
committee shall adopt conflict-of-interest rules, based on
standards applicable to members of scientific review committees of
the National Institutes of Health, to govern members of the
oversight committee, the program integration committee, the peer
review committee, and institute employees.
(b) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee shall recuse himself or herself, as provided by Section
157.252(a), (b), or (c), as applicable, if the member or employee,
or a person who is related to the member or employee within the
second degree of affinity or consanguinity, has a professional or
financial interest in an entity receiving or applying to receive
money from the institute.
(c) A person has a professional interest in an entity
receiving or applying to receive money from the institute if the
person:
(1) is a member of the board of directors, another
governing board, or any committee of the entity, or of a foundation
or similar organization affiliated with the entity, during the
same grant cycle;
(2) serves as an elected or appointed officer of the
entity;
(3) is an employee of or is negotiating future
employment with the entity;
(4) represents the entity;
(5) is a professional associate of a primary member of
the entity's project team;
(6) is, or within the preceding six years has been, a
student, postdoctoral associate, or part of a laboratory research
group for a primary member of the entity's project team;
(7) is engaged or is actively planning to be engaged in
collaboration with a primary member of the entity's project team;
or
(8) has long-standing scientific differences or
disagreements with a primary member of the entity's project team,
and those differences or disagreements:
(A) are known to the professional community; and
(B) could be perceived as affecting objectivity.
(d) A person has a financial interest in an entity receiving
or applying to receive money from the institute if the person:
(1) owns or controls, directly or indirectly, an
ownership interest, including sharing in profits, proceeds, or
capital gains, in an entity receiving or applying to receive money
from the institute; or
(2) could reasonably foresee that an action taken by
the oversight committee, the program integration committee, a peer
review committee, or the institute could result in a financial
benefit to the person.
(e) Nothing in this chapter limits the authority of the
oversight committee to adopt additional conflict-of-interest
standards.
Sec. 157.252. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
(a) If an oversight committee member or program integration
committee member has a conflict of interest as described by Section
157.251 regarding an application that comes before the member for
review or other action, the member shall:
(1) provide written notice to the chief executive
officer and the presiding officer of the oversight committee or the
next ranking member of the committee if the presiding officer has
the conflict of interest;
(2) disclose the conflict of interest in an open
meeting of the oversight committee; and
(3) recuse himself or herself from participating in
the review, discussion, deliberation, and vote on the application
and from accessing information regarding the matter to be decided.
(b) If a peer review committee member has a conflict of
interest described by Section 157.251 regarding an application that
comes before the member's committee for review or other action, the
member shall:
(1) provide written notice to the chief executive
officer of the conflict of interest; and
(2) recuse himself or herself from participating in
the review, discussion, deliberation, and vote on the application
and from accessing information regarding the matter to be decided.
(c) If an institute employee has a conflict of interest
described by Section 157.251 regarding an application that comes
before the employee for review or other action, the employee shall:
(1) provide written notice to the chief executive
officer of the conflict of interest; and
(2) recuse himself or herself from participating in
the review of the application and be prevented from accessing
information regarding the matter to be decided.
(d) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee with a conflict of interest may seek a waiver as provided
by Section 157.253.
(e) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee who reports a potential conflict of interest or another
impropriety or self-dealing of the member or employee and who fully
complies with the recommendations of the general counsel and
recusal requirements is considered in compliance with the
conflict-of-interest provisions of this chapter. The member or
employee is subject to other applicable laws, rules, requirements,
and prohibitions.
(f) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee who intentionally violates this section is subject to
removal from further participation in the institute's grant review
process.
Sec. 157.253. EXCEPTIONAL CIRCUMSTANCES REQUIRING
PARTICIPATION. The oversight committee shall adopt rules governing
the waiver of the conflict-of-interest requirements of this chapter
under exceptional circumstances for an oversight committee member,
program integration committee member, peer review committee
member, or institute employee. The rules must:
(1) authorize the chief executive officer or an
oversight committee member to propose granting a waiver by
submitting to the presiding officer of the oversight committee a
written statement about the conflict of interest, the exceptional
circumstance requiring the waiver, and any proposed limitations to
the waiver;
(2) require a proposed waiver to be publicly reported
at a meeting of the oversight committee;
(3) require a majority vote of the oversight committee
members present and voting to grant a waiver;
(4) require any waiver granted to be reported annually
to the lieutenant governor, the speaker of the house of
representatives, the governor, and the standing committee of each
house of the legislature with primary jurisdiction over institute
matters; and
(5) require the institute to retain documentation of
each waiver granted.
Sec. 157.254. INVESTIGATION OF UNREPORTED CONFLICTS OF
INTEREST. (a) An oversight committee member, a program
integration committee member, a peer review committee member, or an
institute employee who becomes aware of a potential conflict of
interest described by Section 157.251 that has not been reported
shall immediately notify the chief executive officer of the
potential conflict of interest. On notification, the chief
executive officer shall notify the presiding officer of the
oversight committee and the general counsel, who shall determine
the nature and extent of any unreported conflict.
(b) A grant applicant seeking an investigation regarding
whether a prohibited conflict of interest was not reported shall
file a written request with the institute's chief executive
officer. The applicant must:
(1) include in the request all facts regarding the
alleged conflict of interest; and
(2) submit the request not later than the 30th day
after the date the chief executive officer presents final funding
recommendations for the affected grant cycle to the oversight
committee.
(c) On notification of an alleged conflict of interest under
Subsection (a) or (b), the institute's general counsel shall:
(1) investigate the matter; and
(2) provide to the chief executive officer and
presiding officer of the oversight committee an opinion that
includes:
(A) a statement of facts;
(B) a determination of whether a conflict of
interest or another impropriety or self-dealing exists; and
(C) if the opinion provides that a conflict of
interest or another impropriety or self-dealing exists,
recommendations for an appropriate course of action.
(d) If the conflict of interest, impropriety, or
self-dealing involves the presiding officer of the oversight
committee, the institute's general counsel shall provide the
opinion to the next ranking oversight committee member who is not
involved with the conflict of interest, impropriety, or
self-dealing.
(e) After receiving the opinion and consulting with the
presiding officer of the oversight committee, the chief executive
officer shall take action regarding the recusal of the individual
from any discussion of or access to information related to the
conflict of interest or other recommended action related to the
impropriety or self-dealing. If the alleged conflict of interest,
impropriety, or self-dealing is held by, or is an act of, the chief
executive officer, the presiding officer of the oversight committee
shall take actions regarding the recusal or other action.
Sec. 157.255. FINAL DETERMINATION OF UNREPORTED CONFLICT OF
INTEREST. (a) The chief executive officer or, if applicable, the
presiding officer of the oversight committee shall make a
determination regarding the existence of an unreported conflict of
interest described by Section 157.251 or other impropriety or
self-dealing. The determination must specify any actions to be
taken to address the conflict of interest, impropriety, or
self-dealing, including:
(1) reconsideration of the application; or
(2) referral of the application to another peer review
committee for review.
(b) The determination made under Subsection (a) is
considered final unless three or more oversight committee members
request that the issue be added to the agenda of the oversight
committee.
(c) The chief executive officer or, if applicable, the
presiding officer of the oversight committee, shall provide written
notice of the final determination, including any further actions to
be taken, to the grant applicant requesting the investigation.
(d) Unless specifically determined by the chief executive
officer or, if applicable, the presiding officer of the oversight
committee, or the oversight committee, the validity of an action
taken on a grant application is not affected by the fact that an
individual who failed to report a conflict of interest participated
in the action.
SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
Sec. 157.301. AWARD REVIEW PROCESS. The institute shall
use a peer review process to evaluate and recommend all grants the
oversight committee awards under this chapter.
Sec. 157.302. GRANT AWARD RULES AND PROCEDURES. (a) The
oversight committee shall adopt rules regarding the procedure for
awarding grants to an applicant under this chapter. The rules must
require:
(1) the peer review committee to score grant
applications and make recommendations to the program integration
committee and the oversight committee regarding the award of
grants, including providing a prioritized list that:
(A) ranks the grant applications in the order the
peer review committee determines applications should be funded; and
(B) includes information explaining each grant
applicant's qualification under the peer review committee's
standards for recommendation; and
(2) the program integration committee to submit to the
oversight committee a list of grant applications the program
integration committee by majority vote approved for recommendation
that:
(A) includes documentation on the factors the
program integration committee considered in making the grant
recommendations;
(B) is substantially based on the list submitted
by the peer review committee under Subdivision (1); and
(C) to the extent possible, gives priority to
proposals that:
(i) may lead to immediate or long-term
medical and scientific breakthroughs in the areas of prevention,
treatment, or cures for brain disease;
(ii) strengthen and enhance fundamental
science in brain research;
(iii) ensure a comprehensive coordinated
approach to brain research;
(iv) are interdisciplinary or
interinstitutional;
(v) align with state priorities and needs,
including priorities and needs outlined in other state agency
strategic plans, or address federal or other major research
sponsors' priorities in scientific or technological fields in the
area of brain research;
(vi) are matched with money provided by a
private or nonprofit entity or institution of higher education;
(vii) are collaborative between any
combination of private and nonprofit entities, public or private
agencies or institutions in this state, and public or private
institutions outside this state;
(viii) benefit the residents of this state,
including a demonstrable economic development benefit to this
state;
(ix) enhance research superiority at
institutions of higher education in this state by creating new
research superiority, attracting existing research superiority
from institutions outside this state and other research entities,
or attracting from outside this state additional researchers and
resources;
(x) expedite innovation and product
development, attract private sector entities to stimulate a
substantial increase in high-quality jobs, and increase higher
education applied science or technology research capabilities; and
(xi) address the goals of the research
plan.
(b) A member of a peer review committee may not attempt to
use the committee member's official position to influence a
decision to approve or award a grant or contract to the committee
member's employer.
(c) A program integration committee member may not discuss a
grant applicant recommendation with an oversight committee member
unless the program integration committee has fulfilled the
requirements of Subsection (a)(2).
(d) Two-thirds of the oversight committee members present
and voting must vote to approve each funding recommendation of the
program integration committee. If the oversight committee does not
approve a funding recommendation of the program integration
committee, a statement explaining the reasons the funding
recommendation was not followed must be included in the minutes of
the meeting.
(e) The oversight committee may not award more than $300
million in grants under this chapter in a state fiscal year.
(f) The oversight committee may not award a grant to an
applicant who has made a gift or grant to the institute, an
oversight committee member, or an institute employee on or after
January 1, 2024. This section does not apply to gifts, fees,
honoraria, or other items also excepted under Section 36.10, Penal
Code.
Sec. 157.303. MULTIYEAR PROJECTS. (a) The oversight
committee may approve the award of grant money for a multiyear
project.
(b) The oversight committee shall specify the total amount
of money approved to fund the multiyear project. The total amount
specified is considered for purposes of this chapter to have been
awarded in the state fiscal year that the peer review committee
approved the project. The institute shall distribute only the
money that will be expended during that fiscal year. The institute
shall distribute the remaining grant money as the money is needed in
each subsequent state fiscal year.
Sec. 157.304. CONTRACT TERMS. (a) Before disbursing any
grant money awarded under this chapter, the institute shall execute
a written contract with the grant recipient. The contract shall:
(1) specify that except for awards to state agencies
or public institutions of higher education, if all or any portion of
the amount of the grant is used to build a capital improvement:
(A) the state retains a lien or other interest in
the capital improvement in proportion to the percentage of the
grant amount used to pay for the capital improvement; and
(B) the grant recipient shall, if the capital
improvement is sold:
(i) repay to the state the grant money used
to pay for the capital improvement, with interest at the rate and
according to the other terms provided by the contract; and
(ii) share with the state a proportionate
amount of any profit realized from the sale;
(2) specify that if the grant recipient has not used
awarded grant money for the purposes for which the grant was
intended, the recipient shall repay that grant amount and any
related interest applicable under the contract to this state at the
agreed rate and on the agreed terms;
(3) specify that if the grant recipient fails to meet
the terms and conditions of the contract, the institute may
terminate the contract using the written process prescribed in the
contract and require the recipient to repay the awarded grant money
and any related interest applicable under the contract to this
state at the agreed rate and on the agreed terms;
(4) include terms relating to intellectual property
rights consistent with the standards developed by the oversight
committee under Section 157.305;
(5) require that, in accordance with Subsection (b),
the grant recipient dedicate an amount of matching money equal to
one-half of the amount of the research grant awarded and specify the
amount of matching money to be dedicated;
(6) specify the period in which the grant award must be
spent; and
(7) include the specific deliverables of the project
that is the subject of the grant proposal.
(b) Before the institute may disburse grant money, the grant
recipient must certify that the recipient has an amount of money
equal to one-half of the grant money that is available and not yet
expended, and dedicate that money to the research that is the
subject of the grant proposal. The institute shall adopt rules
specifying a grant recipient's obligations under this subchapter.
At a minimum, the rules must:
(1) allow a grant recipient that is an institution of
higher education or a private or independent institution of higher
education, as those terms are defined by Section 61.003, or a
research institute or center affiliated with the institution, to
credit toward the recipient's matching money the dollar amount
equivalent to the difference between the indirect cost rate
authorized by the federal government for research grants awarded to
the recipient and the indirect cost rate authorized by Section
157.203(c);
(2) specify that:
(A) a grant recipient receiving more than one
grant award may provide matching money certification at an
institutional level;
(B) the recipient of a multiyear grant award may
yearly certify matching money; and
(C) grant money may not be disbursed to the grant
recipient until the annual certification of the matching money has
been approved;
(3) specify that money for certification purposes may
include:
(A) federal funds;
(B) the fair market value of drug development
support provided to the recipient by the National Institutes of
Health or other similar programs;
(C) funds of this state;
(D) funds of other states; and
(E) nongovernmental funds, including private
funds, foundation grants, gifts, and donations;
(4) specify that the following items may not be used
for certification purposes:
(A) in-kind costs;
(B) volunteer services provided to a grant
recipient;
(C) noncash contributions;
(D) preexisting real estate of the grant
recipient, including buildings, facilities, and land;
(E) deferred giving, including a charitable
remainder annuity trust, charitable remainder unitrust, or pooled
income fund; or
(F) any other items determined by the institute;
(5) require that the grant recipient's certification
be included in the grant award contract;
(6) specify that a grant recipient's failure to
provide certification serves as grounds for terminating the grant
award contract;
(7) require a grant recipient to maintain adequate
documentation supporting the source and use of the money required
by this subsection and to provide documentation to the institute on
request; and
(8) require that the institute establish a procedure
to conduct an annual review of the documentation supporting the
source and use of money reported in the required certification.
(c) The institute shall establish a policy on advance
payments to grant recipients.
(d) The oversight committee shall adopt rules to administer
this section.
Sec. 157.305. PATENT ROYALTIES AND LICENSE REVENUES PAID TO
STATE. (a) The oversight committee shall establish standards
requiring all grant awards to be subject to an intellectual
property agreement that allows this state to collect royalties,
income, and other benefits, including interest or proceeds
resulting from securities and equity ownership, realized as a
result of projects undertaken with money awarded under this
chapter.
(b) In determining this 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 that result from basic
research, therapy development, and clinical trials with the need to
ensure that essential medical research is not unreasonably hindered
by the intellectual property agreement and that the agreement does
not unreasonably remove the incentive on the part of the individual
researcher, research team, or institution.
(c) The oversight committee may transfer its management and
disposition authority over this state's interest in securities,
equities, royalties, income, and other benefits realized as a
result of projects undertaken with money awarded under this chapter
to the Texas Treasury Safekeeping Trust Company. If the oversight
committee transfers management and disposition authority under
this subsection, the trust company has any power necessary to
accomplish the purposes of this section.
(d) In managing the assets described by Subsection (c)
through procedures and subject to restrictions that the Texas
Treasury Safekeeping Trust Company considers appropriate, the
trust company may acquire, exchange, sell, supervise, manage, or
retain any kind of investment that a prudent investor, exercising
reasonable care, skill, and caution, would acquire, exchange, sell,
or retain in light of the purposes, terms, distribution
requirements, and other circumstances then prevailing pertinent to
each investment, including the requirements prescribed by
Subsection (b) and the purposes described by Section 157.002. The
trust company may charge a fee to recover the reasonable and
necessary costs incurred in managing assets under this section.
Sec. 157.306. PREFERENCE FOR TEXAS SUPPLIERS. In a good
faith effort to achieve a goal of more than 50 percent of purchases
from suppliers in this state, the oversight committee shall
establish standards to ensure that grant recipients purchase goods
and services from suppliers in this state to the extent reasonably
possible.
Sec. 157.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The
oversight committee shall establish standards to ensure that grant
recipients purchase goods and services from historically
underutilized businesses as defined by Section 2161.001,
Government Code, and any other applicable state law.
Sec. 157.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.
(a) The institute 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 contract and ongoing
progress, including the scientific merit of the research.
(b) The chief executive officer shall report at least
annually to the oversight committee on the progress and continued
merit of the projects awarded grants by the institute.
Sec. 157.309. MEDICAL AND RESEARCH ETHICS. Any project
that is awarded a grant under this chapter must comply with all
applicable federal and state laws regarding the conduct of the
research or prevention project.
Sec. 157.310. PUBLIC INFORMATION; CONFIDENTIAL
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 of money 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
application, peer review evaluation, award contract, or progress
report 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 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 related to fraud,
waste, or abuse of state resources 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 on request and in
compliance with applicable laws and procedures to the following:
(1) a law enforcement agency or prosecutor;
(2) a governmental agency responsible for
investigating the matter that is the subject of a compliance
report, including the Texas Workforce Commission civil rights
division or the federal Equal Employment Opportunity Commission; or
(3) a committee member or institute employee who is
responsible under institutional policy for a compliance program
investigation or for a review of a compliance program
investigation.
(f) A disclosure under Subsection (e) is not a voluntary
disclosure for purposes of Section 552.007, Government Code.
(g) 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 the oversight committee, in the employee's
or oversight committee member's official capacity. The posted
information must include each donor's name and the amount and date
of the donor's donation. This section is not applicable to gifts,
fees, honoraria, or other items also excepted under Section 36.10,
Penal Code.
Sec. 157.311. 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 Mental Health and
Brain Research Institute of Texas.
SECTION 3. Section 61.003(6), Education Code, is amended to
read as follows:
(6) "Other agency of higher education" means The
University of Texas System, System Administration; The University
of Texas at El Paso Museum; Texas Epidemic Public Health Institute
at The University of Texas Health Science Center at Houston; The
Texas A&M University System, Administrative and General Offices;
Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
Rodent and Predatory Animal Control Service (a part of the Texas A&M
AgriLife Extension Service); Texas A&M Engineering Experiment
Station (including the Texas A&M Transportation Institute); Texas
A&M Engineering Extension Service; Texas A&M Forest Service; Texas
Division of Emergency Management; Texas Tech University Museum;
Texas State University System, System Administration; Sam Houston
Memorial Museum; Panhandle-Plains Historical Museum; Cotton
Research Committee of Texas; Texas Water Resources Institute; Texas
A&M Veterinary Medical Diagnostic Laboratory; Mental Health and
Brain Research Institute of Texas; and any other unit, division,
institution, or agency which shall be so designated by statute or
which may be established to operate as a component part of any
public senior college or university, or which may be so classified
as provided in this chapter.
SECTION 4. (a) Not later than December 1, 2024, the
appropriate appointing authority shall appoint the members to the
Mental Health and Brain Research Institute of Texas Oversight
Committee as required by Section 157.101, Education Code, as added
by this Act. The oversight committee may not act until a majority
of the appointed members have taken office.
(b) Notwithstanding Section 157.101, Education 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 Mental Health and Brain Research Institute of Texas
Oversight Committee appointed by that person to serve a term
expiring January 31, 2025, one member appointed by that person to
serve a term expiring January 31, 2027, and one member appointed by
that person to serve a term expiring January 31, 2029.
(c) The governor shall designate one member to serve as
interim presiding officer for the purpose of calling and presiding
over meetings of the Mental Health and Brain Research Institute of
Texas Oversight Committee until an election is held under Section
157.104, Education Code, as added by this Act.
SECTION 5. If the constitutional amendment proposed by the
88th Legislature, Regular Session, 2023, requiring the creation of
the Brain Institute of Texas and the transfer of $3 billion from
general state revenue to fund mental health and brain research in
this state is approved by the voters, the Mental Health and Brain
Research Institute of Texas established by Chapter 157, Education
Code, as added by this Act, is eligible to receive funding 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 6. This Act takes effect January 1, 2024, but only
if the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, requiring the creation of the Mental Health
and Brain Research Institute of Texas and the transfer of $3 billion
from general state revenue to fund mental health and brain research
in this state is approved by the voters. If that amendment is not
approved by the voters, this Act has no effect.