Texas 2023 - 88th Regular

Texas House Bill HB15 Compare Versions

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1	1	88R19433 SRA-F
2	2	By: Thompson of Harris, Craddick, Buckley, H.B. No. 15
3	3	Bonnen, Kuempel, et al.
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the creation of the Mental Health and Brain Research
9	9	Institute of Texas.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle H, Title 3, Education Code, is amended
12	12	by adding Chapter 157 to read as follows:
13	13	CHAPTER 157. MENTAL HEALTH AND BRAIN RESEARCH INSTITUTE OF TEXAS
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 157.001. DEFINITIONS. In this chapter:
16	16	(1) "Institute" means the Mental Health and Brain
17	17	Research Institute of Texas.
18	18	(2) "Oversight committee" means the Mental Health and
19	19	Brain Research Institute of Texas Oversight Committee.
20	20	(3) "Peer review committee" means the Mental Health
21	21	and Brain Research Institute of Texas Peer Review Committee.
22	22	(4) “Program integration committee” means the Mental
23	23	Health and Brain Research Institute of Texas Program Integration
24	24	Committee.
25	25	(5) "Research plan" means the Texas Mental Health and
26	26	Brain Health Research Plan developed by the institute.
27	27	Sec. 157.002. PURPOSES. The Mental Health and Brain
28	28	Research Institute of Texas is established to:
29	29	(1) create and expedite innovation in mental health
30	30	and brain research to improve the health of residents of this state,
31	31	enhance the potential for a medical or scientific breakthrough in
32	32	mental health and brain-related sciences and biomedical research,
33	33	and enhance the mental health and brain research superiority of
34	34	this state;
35	35	(2) attract, create, or expand research capabilities
36	36	of eligible institutions of higher education and other public or
37	37	private entities by awarding grants to promote a substantial
38	38	increase in mental health and brain research, strategies for
39	39	prevention of mental health and brain-related diseases, mental
40	40	health and brain health initiatives, and the creation of
41	41	high-quality jobs in this state; and
42	42	(3) develop and implement a research plan to foster
43	43	synergistic collaboration and investigation into mental health and
44	44	brain health research by eligible institutions of higher education
45	45	and their partners.
46	46	Sec. 157.003. STATE AUDITOR. Nothing in this chapter
47	47	limits the authority of the state auditor under Chapter 321,
48	48	Government Code, or other law.
49	49	SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
50	50	Sec. 157.051. POWERS AND DUTIES. (a) The institute:
51	51	(1) may make grants to provide money to institutions
52	52	of learning, advanced medical research facilities, public and
53	53	private persons, and collaborations in this state to further the
54	54	purposes of this chapter, including:
55	55	(A) implementation of the research plan;
56	56	(B) research, such as translational and clinical
57	57	research into:
58	58	(i) the causes of and prevention,
59	59	treatment, rehabilitation, protocols, and cures for mental health
60	60	and human brain-related diseases, syndromes, disorders,
61	61	dysfunction, injuries, developmental issues, neurological health
62	62	issues, behavioral health issues, and substance use disorders and
63	63	other addictions; and
64	64	(ii) any other area impacting mental health
65	65	or the brain, including an area that directly or indirectly impacts
66	66	or is impacted by mental health or the brain or brain health, such
67	67	as the gut microbiome, nutrition, and the spinal cord or nervous
68	68	system, that the peer review committee and the oversight committee
69	69	approve;
70	70	(C) providing money for facilities, equipment,
71	71	supplies, salaries, benefits, and other costs related to mental
72	72	health and brain research; and
73	73	(D) prevention programs and strategies to
74	74	mitigate the incidence of detrimental health impacts on mental
75	75	health or the brain;
76	76	(2) shall collaborate with relevant state agencies,
77	77	coordinating councils, and consortiums to enhance mental health and
78	78	brain-related health care and research;
79	79	(3) shall establish the appropriate standards and
80	80	oversight bodies to ensure money authorized under this chapter is
81	81	properly used for the purposes of this chapter;
82	82	(4) shall employ necessary staff to provide
83	83	administrative support to the institute;
84	84	(5) may contract with another state agency to share
85	85	the cost of administrative services, including grant accounting,
86	86	grant monitoring, technical and document management of the grant
87	87	application review process, legal services, and compliance
88	88	services;
89	89	(6) shall monitor grant contracts authorized by this
90	90	chapter and ensure that each grant recipient complies with the
91	91	terms and conditions of the grant contract;
92	92	(7) shall ensure that all grant proposals comply with
93	93	this chapter and rules adopted under this chapter before the
94	94	proposals are submitted to the oversight committee for approval;
95	95	(8) shall establish procedures to document that the
96	96	institute, its employees, and its committee members appointed under
97	97	this chapter comply with all laws and rules governing the peer
98	98	review process and conflicts of interest; and
99	99	(9) shall create a statewide research and clinical
100	100	data registry for mental health and brain research.
101	101	(b) The institute shall implement and monitor the research
102	102	plan and revise the plan as necessary.
103	103	Sec. 157.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
104	104	OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
105	105	hire a chief executive officer. The chief executive officer shall
106	106	perform the duties required by this chapter or designated by the
107	107	oversight committee. The chief executive officer must have a
108	108	demonstrated ability to lead and develop academic, commercial, and
109	109	governmental partnerships and coalitions.
110	110	(b) The institute shall employ a chief compliance officer to
111	111	monitor compliance with this chapter and rules adopted under this
112	112	chapter and to report incidents of noncompliance to the oversight
113	113	committee.
114	114	(c) The chief executive officer may hire any other officer
115	115	position the chief executive officer determines necessary for
116	116	efficient operation of the institute.
117	117	Sec. 157.053. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
118	118	later than January 31 of each year, the institute shall prepare and
119	119	submit to the governor, the lieutenant governor, the speaker of the
120	120	house of representatives, and the standing committee of each house
121	121	of the legislature with primary jurisdiction over institute matters
122	122	and post on the institute's Internet website a report that
123	123	outlines:
124	124	(1) the institute's activities under this chapter;
125	125	(2) a list of recipients that were awarded grants
126	126	during the preceding state fiscal year, including the grant amount
127	127	awarded to each recipient;
128	128	(3) any research accomplishments achieved during the
129	129	preceding state fiscal year by a grant recipient or the recipient's
130	130	partners;
131	131	(4) an overview summary of the institute's most recent
132	132	audited financial statement;
133	133	(5) an assessment of the relationship between the
134	134	institute's grants and the strategy of its research program;
135	135	(6) a statement of the institute's strategic research
136	136	plans;
137	137	(7) an estimate of the financial cost to this state of
138	138	mental health and brain disease during the most recent state fiscal
139	139	year for which data is available, including the amounts this state
140	140	spent related to mental health and brain disease through the
141	141	Medicaid program, the Teacher Retirement System of Texas, and the
142	142	Employees Retirement System of Texas;
143	143	(8) a statement of the institute's compliance program
144	144	activities, including any proposed legislation or other
145	145	recommendations identified through the activities;
146	146	(9) for the preceding state fiscal year:
147	147	(A) a list of any conflicts of interest that
148	148	require recusal under this chapter or rules adopted under this
149	149	chapter;
150	150	(B) any unreported conflicts of interest
151	151	confirmed by an investigation conducted under Section 157.254,
152	152	including any actions taken by the institute regarding an
153	153	unreported conflict of interest and subsequent investigation; and
154	154	(C) any waivers granted through the process
155	155	established under Section 157.253; and
156	156	(10) the institute's future direction.
157	157	Sec. 157.054. INDEPENDENT FINANCIAL AUDIT. (a) The
158	158	institute shall annually commission an independent financial audit
159	159	of its activities from a certified public accounting firm.
160	160	(b) The oversight committee shall review the annual
161	161	financial audit and the financial practices of the institute.
162	162	Sec. 157.055. GRANT RECORDS. (a) The institute shall
163	163	maintain complete records of:
164	164	(1) regardless of whether the grant application is
165	165	funded by the institute or is withdrawn after submission to the
166	166	institute, the review of each grant application submitted to the
167	167	institute, including the score assigned to each grant application
168	168	reviewed by the peer review committee in accordance with rules
169	169	adopted under Section 157.302;
170	170	(2) each grant recipient's financial reports,
171	171	including the amount of matching money dedicated to the research
172	172	specified for the grant award;
173	173	(3) each grant recipient's progress reports;
174	174	(4) for the purpose of determining any conflict of
175	175	interest, the identity of each principal investor and owner of each
176	176	grant recipient as provided by institute rules; and
177	177	(5) the institute's review of the grant recipient's
178	178	financial reports and progress reports.
179	179	(b) The institute shall keep the records described by
180	180	Subsection (a) until at least the 15th anniversary of the date the
181	181	record was issued.
182	182	(c) The institute shall have prepared periodic audits of any
183	183	electronic grant management system used to maintain records of
184	184	grant applications and grant awards under this section. The
185	185	institute shall timely address each weakness identified in an audit
186	186	of the system.
187	187	Sec. 157.056. GIFTS AND GRANTS. The institute may solicit
188	188	and accept gifts and grants from any source for the purposes of this
189	189	chapter.
190	190	Sec. 157.057. PROHIBITED OFFICE LOCATION. An institute
191	191	employee may not have an office located in a facility owned by an
192	192	entity receiving or applying to receive money from the institute.
193	193	Sec. 157.058. COMPLIANCE PROGRAM. (a) The institute shall
194	194	establish a compliance program that operates under the direction of
195	195	the institute's chief compliance officer to monitor compliance with
196	196	this chapter and rules adopted under this chapter and to use to
197	197	report incidents of noncompliance to the oversight committee.
198	198	(b) The chief compliance officer or designee shall attend
199	199	and observe meetings of the peer review committee and the program
200	200	integration committee to ensure compliance with this chapter and
201	201	rules adopted under this chapter.
202	202	(c) The chief compliance officer shall submit a written
203	203	report to the oversight committee confirming that each grant
204	204	application recommendation included on the list submitted by the
205	205	program integration committee under Section 157.302(a)(2) followed
206	206	the oversight committee's rules regarding the procedure for
207	207	awarding grants under this chapter. The report must contain all
208	208	relevant information on:
209	209	(1) the peer review process for the grant application;
210	210	(2) the application's peer review score assigned by
211	211	the peer review committee;
212	212	(3) adherence to the conflict-of-interest
213	213	notification and recusal process; and
214	214	(4) the confirmation that a grant applicant
215	215	recommended for approval did not make any gift or grant prohibited
216	216	by Section 157.302(f).
217	217	(d) To ensure each grant recipient complies with reporting
218	218	requirements included in the grant contract and the rules adopted
219	219	under this chapter, the institute shall implement a system to:
220	220	(1) track the dates on which grant recipient reports
221	221	are due and are received by the institute; and
222	222	(2) monitor the status of any required report that a
223	223	grant recipient does not timely submit to the institute.
224	224	(e) The chief compliance officer shall:
225	225	(1) monitor compliance with this section;
226	226	(2) inquire into and monitor the status of any
227	227	required report that a grant recipient does not timely submit to the
228	228	institute; and
229	229	(3) notify the general counsel of the institute and
230	230	the oversight committee of a grant recipient that has not complied
231	231	with the reporting requirements of the grant contract to allow the
232	232	institute to suspend or terminate the grant contract as warranted.
233	233	(f) The chief compliance officer shall establish procedures
234	234	for investigating allegations of fraud, waste, or abuse of state
235	235	resources against oversight committee members, institute employees
236	236	or contractors, grant applicants, or grant recipients. The
237	237	procedures must include:
238	238	(1) private access to the compliance program office,
239	239	such as a telephone hotline; and
240	240	(2) to the extent possible, preservation of the
241	241	confidentiality of communications and the anonymity of a person
242	242	submitting a compliance report related to fraud, waste, or abuse or
243	243	participating in a compliance investigation.
244	244	SUBCHAPTER C. OVERSIGHT COMMITTEE
245	245	Sec. 157.101. COMPOSITION OF OVERSIGHT COMMITTEE. (a) The
246	246	oversight committee is the governing body of the institute.
247	247	(b) The oversight committee is composed of the following
248	248	nine members:
249	249	(1) three members appointed by the governor;
250	250	(2) three members appointed by the lieutenant
251	251	governor; and
252	252	(3) three members appointed by the speaker of the
253	253	house of representatives.
254	254	(c) The oversight committee members must represent the
255	255	geographic and cultural diversity of this state.
256	256	(d) In making appointments to the oversight committee, the
257	257	governor, lieutenant governor, and speaker of the house of
258	258	representatives:
259	259	(1) must each appoint at least one person who is a
260	260	physician or a scientist with extensive experience in the field of
261	261	mental health or brain disease or public health; and
262	262	(2) should attempt to include, if possible:
263	263	(A) persons affected by mental health or brain
264	264	disease; or
265	265	(B) family members or caregivers of persons
266	266	affected by mental health or brain disease.
267	267	(e) A person may not be an oversight committee member if the
268	268	person or the person's spouse:
269	269	(1) is employed by or participates in the management
270	270	of a business entity or other organization receiving money from the
271	271	institute;
272	272	(2) owns or controls, directly or indirectly, an
273	273	interest in a business entity or other organization receiving money
274	274	from the institute; or
275	275	(3) uses or receives a substantial amount of tangible
276	276	goods, services, or money from the institute, other than
277	277	reimbursement authorized by this chapter for oversight committee
278	278	membership, attendance, or expenses.
279	279	Sec. 157.102. REMOVAL. (a) It is a ground for removal from
280	280	the oversight committee that a member:
281	281	(1) is ineligible for membership under Section
282	282	157.101(e);
283	283	(2) cannot, because of illness or disability,
284	284	discharge the member's duties for a substantial part of the member's
285	285	term; or
286	286	(3) is absent from more than half of the regularly
287	287	scheduled oversight committee meetings that the member is eligible
288	288	to attend during a calendar year without an excuse approved by a
289	289	majority vote of the committee.
290	290	(b) The validity of an action of the oversight committee is
291	291	not affected by the fact that it is taken when a ground for removal
292	292	of a committee member exists.
293	293	(c) If the chief executive officer has knowledge that a
294	294	potential ground for removal exists, the chief executive officer
295	295	shall notify the presiding officer of the oversight committee of
296	296	the potential ground. The presiding officer shall then notify the
297	297	appointing authority and the attorney general that a potential
298	298	ground for removal exists. If the potential ground for removal
299	299	involves the presiding officer, the chief executive officer shall
300	300	notify the next highest ranking officer of the oversight committee,
301	301	who shall then notify the appointing authority and the attorney
302	302	general that a potential ground for removal exists.
303	303	Sec. 157.103. TERMS; VACANCY. (a) Oversight committee
304	304	members appointed by the governor, lieutenant governor, and speaker
305	305	of the house serve at the pleasure of the appointing official for
306	306	staggered six-year terms, with the terms of three members expiring
307	307	on January 31 of each odd-numbered year.
308	308	(b) If a vacancy occurs on the oversight committee, the
309	309	appropriate appointing official shall appoint a successor in the
310	310	same manner as the original appointment to serve for the remainder
311	311	of the unexpired term. The appropriate appointing official shall
312	312	appoint the successor not later than the 30th day after the date the
313	313	vacancy occurs.
314	314	Sec. 157.104. OFFICERS. (a) The oversight committee shall
315	315	elect a presiding officer and assistant presiding officer from
316	316	among its members every two years. The oversight committee may
317	317	elect additional officers from among its members.
318	318	(b) The presiding officer and assistant presiding officer
319	319	may not serve in the position to which the officer was elected for
320	320	consecutive terms.
321	321	(c) The oversight committee shall:
322	322	(1) establish and approve duties and responsibilities
323	323	for officers of the committee; and
324	324	(2) develop and implement policies that distinguish
325	325	the responsibilities of the oversight committee and the committee's
326	326	officers from the responsibilities of the chief executive officer
327	327	and institute employees.
328	328	Sec. 157.105. EXPENSES. An oversight committee member is
329	329	not entitled to compensation but is entitled to reimbursement for
330	330	actual and necessary expenses incurred in attending meetings of the
331	331	committee or performing other official duties authorized by the
332	332	presiding officer.
333	333	Sec. 157.106. MEETINGS. (a) The oversight committee shall
334	334	hold at least one public meeting each quarter of the calendar year,
335	335	with appropriate notice and a formal public comment period.
336	336	(b) The oversight committee may conduct a closed meeting in
337	337	accordance with Subchapter E, Chapter 551, Government Code, to
338	338	discuss issues related to:
339	339	(1) managing, acquiring, or selling securities or
340	340	other revenue-sharing obligations realized under the standards
341	341	established as required by Section 157.305; and
342	342	(2) an ongoing compliance investigation into issues
343	343	related to fraud, waste, or abuse of state resources.
344	344	Sec. 157.107. POWERS AND DUTIES. (a) The oversight
345	345	committee shall:
346	346	(1) hire a chief executive officer;
347	347	(2) annually set priorities for each grant program
348	348	that receives money under this chapter; and
349	349	(3) consider the priorities set under Subdivision (2)
350	350	in awarding grants under this chapter.
351	351	(b) The oversight committee shall adopt a code of conduct
352	352	applicable to each oversight committee member, program integration
353	353	committee member, peer review committee member, and institute
354	354	employee that includes provisions prohibiting the member, the
355	355	employee, or the member's or employee's spouse from:
356	356	(1) accepting or soliciting any gift, favor, or
357	357	service that could reasonably influence the member or employee in
358	358	the discharge of official duties or that the member, employee, or
359	359	spouse knows or should know is being offered with the intent to
360	360	influence the member's or employee's official conduct;
361	361	(2) accepting employment or engaging in any business
362	362	or professional activity that would reasonably require or induce
363	363	the member or employee to disclose confidential information
364	364	acquired in the member's or employee's official position;
365	365	(3) accepting other employment or compensation that
366	366	could reasonably impair the member's or employee's independent
367	367	judgment in the performance of official duties;
368	368	(4) making personal investments or holding a financial
369	369	interest that could reasonably create a substantial conflict
370	370	between the member's or employee's private interest and the member's
371	371	or employee's official duties;
372	372	(5) intentionally or knowingly soliciting, accepting,
373	373	or agreeing to accept any benefit for exercising the member's
374	374	official powers or performing the member's or employee's official
375	375	duties in favor of another;
376	376	(6) leasing, directly or indirectly, any property,
377	377	capital equipment, employee, or service to any entity that receives
378	378	a grant from the institute;
379	379	(7) submitting a grant application for funding by the
380	380	institute;
381	381	(8) serving on the board of directors of an
382	382	organization established with a grant from the institute; or
383	383	(9) serving on the board of directors of a grant
384	384	recipient.
385	385	Sec. 157.108. RULEMAKING AUTHORITY. The oversight
386	386	committee may adopt rules to administer this chapter.
387	387	Sec. 157.109. FINANCIAL STATEMENT REQUIRED. Each oversight
388	388	committee member shall file with the chief compliance officer a
389	389	verified financial statement complying with Sections 572.022
390	390	through 572.0252, Government Code, as required of a state officer
391	391	by Section 572.021, Government Code.
392	392	SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
393	393	Sec. 157.151. PEER REVIEW COMMITTEE. (a) The oversight
394	394	committee shall establish a peer review committee. The chief
395	395	executive officer, with approval by a simple majority of the
396	396	oversight committee members, shall appoint as members of the peer
397	397	review committee experts in fields related to mental health or the
398	398	brain, including research, health care, disease treatment and
399	399	prevention, and other study areas and trained patient advocates who
400	400	meet the qualifications adopted under Subsection (c).
401	401	(b) The oversight committee shall adopt a written policy on
402	402	in-state or out-of-state residency requirements for peer review
403	403	committee members.
404	404	(c) The oversight committee shall adopt rules regarding the
405	405	qualifications required of a trained patient advocate committee
406	406	member for a peer review committee. The rules must require the
407	407	trained patient advocate to successfully complete science-based
408	408	training.
409	409	(d) A peer review committee member may receive an honorarium
410	410	and may be reimbursed for travel expenses incurred in conducting
411	411	committee business. Subchapter B, Chapter 2254, Government Code,
412	412	does not apply to an honorarium the member receives under this
413	413	chapter.
414	414	(e) The chief executive officer, in consultation with the
415	415	oversight committee, shall adopt a policy regarding honoraria and
416	416	document any change in the amount of honoraria paid to a peer review
417	417	committee member, including information explaining the basis for
418	418	that change.
419	419	(f) A peer review committee member appointed under this
420	420	chapter may not serve on the board of directors or other governing
421	421	board of an entity receiving a grant from the institute.
422	422	(g) Peer review committee members serve for terms as
423	423	determined by the chief executive officer.
424	424	Sec. 157.152. PROGRAM INTEGRATION COMMITTEE. (a) The
425	425	institute shall establish a program integration committee with the
426	426	duties assigned under this chapter.
427	427	(b) The program integration committee is composed of:
428	428	(1) the institute's chief executive officer, who shall
429	429	serve as the presiding officer of the program integration
430	430	committee;
431	431	(2) three senior-level institute employees
432	432	responsible for program policy and oversight, appointed by the
433	433	chief executive officer with the approval of a majority of the
434	434	oversight committee members; and
435	435	(3) the executive commissioner of the Health and Human
436	436	Services Commission or the executive commissioner's designee.
437	437	Sec. 157.153. HIGHER EDUCATION ADVISORY COMMITTEE. (a)
438	438	The higher education advisory committee is composed of the
439	439	following members:
440	440	(1) one member appointed by the president of Baylor
441	441	College of Medicine;
442	442	(2) one member appointed by the president of Texas A&M
443	443	Health;
444	444	(3) one member appointed by the president of Texas
445	445	Tech University Health Sciences Center;
446	446	(4) one member appointed by the president of Texas
447	447	Tech University Health Sciences Center at El Paso;
448	448	(5) one member appointed by the president of The
449	449	University of Texas Southwestern Medical Center;
450	450	(6) one member appointed by the president of The
451	451	University of Texas Medical Branch at Galveston;
452	452	(7) one member appointed by the president of The
453	453	University of Texas Health Science Center at Houston;
454	454	(8) one member appointed by the president of The
455	455	University of Texas Health Science Center at San Antonio;
456	456	(9) one member appointed by the president of The
457	457	University of Texas at Tyler Health Science Center;
458	458	(10) one member appointed by the dean of Dell Medical
459	459	School at The University of Texas at Austin;
460	460	(11) one member appointed by the president of The
461	461	University of Texas M. D. Anderson Cancer Center;
462	462	(12) one member appointed by the dean of The
463	463	University of Texas Rio Grande Valley School of Medicine;
464	464	(13) one member appointed by the president of
465	465	University of North Texas Health Science Center at Fort Worth;
466	466	(14) one member appointed by the president of Rice
467	467	University;
468	468	(15) one member appointed by the dean of University of
469	469	Houston College of Medicine; and
470	470	(16) one member appointed by the dean of Sam Houston
471	471	State University College of Osteopathic Medicine.
472	472	(b) The oversight committee by majority vote may increase
473	473	the membership of the higher education advisory committee to
474	474	include appointees representing institutions of higher education
475	475	not listed in Subsection (a).
476	476	(c) The higher education advisory committee shall advise
477	477	the oversight committee on issues, opportunities, the role of
478	478	higher education, and other subjects involving mental health or
479	479	brain research.
480	480	Sec. 157.154. AD HOC ADVISORY COMMITTEE. (a) The oversight
481	481	committee, as necessary, may create additional ad hoc advisory
482	482	committees of experts to advise the oversight committee on issues
483	483	relating to mental health research, brain research, brain health,
484	484	brain-related diseases, spinal cord injuries, traumatic brain
485	485	injuries, mental and behavioral health issues, including substance
486	486	abuse disorders and other addictions, or other brain- or
487	487	neurological-related issues.
488	488	(b) Ad hoc committee members serve for the terms determined
489	489	by the oversight committee.
490	490	Sec. 157.155. EXPENSES. Members of the higher education
491	491	advisory committee or any ad hoc advisory committee appointed under
492	492	this subchapter serve without compensation but are entitled to
493	493	reimbursement for actual and necessary expenses incurred in
494	494	attending committee meetings or performing other official duties
495	495	authorized by the presiding officer, including travel expenses.
496	496	SUBCHAPTER E. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH FUND
497	497	Sec. 157.201. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH
498	498	FUND. (a) In this subchapter, "fund" means the Mental Health and
499	499	Brain Institute Research Fund established under Section 68, Article
500	500	III, Texas Constitution. The fund is a special fund in the treasury
501	501	outside the general revenue fund to be administered by the
502	502	institute. The fund is to be used by the institute as authorized by
503	503	this chapter without further legislative appropriation.
504	504	(b) The fund consists of:
505	505	(1) money transferred to the fund under Section 68,
506	506	Article III, Texas Constitution;
507	507	(2) money appropriated, credited, or transferred to
508	508	the fund by the legislature;
509	509	(3) patent, royalty, and license fees and other income
510	510	received under a contract entered into as provided by Section
511	511	157.304; and
512	512	(4) investment earnings and interest earned on amounts
513	513	credited to the fund.
514	514	(c) The fund may only be used for:
515	515	(1) the award of grants authorized under this chapter,
516	516	including grants for mental health and brain research, brain health
517	517	studies and disease prevention, and research facilities in this
518	518	state to conduct mental health or brain research;
519	519	(2) the purchase, subject to approval by the
520	520	institute, of research facilities by or for a state agency or grant
521	521	recipient; and
522	522	(3) the operation of the institute.
523	523	Sec. 157.202. ROLE OF TEXAS TREASURY SAFEKEEPING TRUST
524	524	COMPANY. (a) In this section, "trust company" means the Texas
525	525	Treasury Safekeeping Trust Company.
526	526	(b) The trust company shall invest the fund in accordance
527	527	with this section.
528	528	(c) The trust company shall hold and invest the fund, and
529	529	any accounts established in the fund, for the institute, taking
530	530	into account the purposes for which money in the fund may be used.
531	531	The fund may be invested with the state treasury pool and may be
532	532	pooled with other state assets for purposes of investment.
533	533	(d) The overall objective for the investment of the fund is
534	534	to maintain sufficient liquidity to meet the needs of the fund while
535	535	striving to preserve the purchasing power of the fund over a full
536	536	economic cycle.
537	537	(e) The trust company has any power necessary to accomplish
538	538	the purposes of managing and investing the assets of the fund. In
539	539	managing the assets of the fund, through procedures and subject to
540	540	restrictions the trust company considers appropriate, the trust
541	541	company may acquire, exchange, sell, supervise, manage, or retain
542	542	any kind of investment that a prudent investor, exercising
543	543	reasonable care, skill, and caution, would acquire or retain in
544	544	light of the purposes, terms, distribution requirements, and other
545	545	circumstances of the fund then prevailing, taking into
546	546	consideration the investment of all the assets of the fund rather
547	547	than a single investment.
548	548	(f) The expenses of managing the fund shall be paid from the
549	549	fund.
550	550	(g) The trust company annually shall provide a written
551	551	report to the institute and to the oversight committee with respect
552	552	to the investments of the fund.
553	553	(h) The trust company shall adopt a written investment
554	554	policy that is appropriate for the fund. The trust company shall
555	555	present the investment policy to the investment advisory board
556	556	established under Section 404.028, Government Code. The investment
557	557	advisory board shall submit to the trust company recommendations
558	558	regarding the policy.
559	559	(i) The institute annually shall provide to the trust
560	560	company a forecast of the cash flows into and out of the fund. The
561	561	institute shall provide updates to the forecasts as appropriate to
562	562	ensure that the trust company is able to achieve the objective
563	563	specified by Subsection (d).
564	564	(j) The trust company shall disburse money from the fund as
565	565	directed by the institute. The institute shall direct disbursements
566	566	from the fund on a semiannual schedule specified by the institute
567	567	and not more frequently than twice in any state fiscal year.
568	568	Sec. 157.203. AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
569	569	(a) A grant recipient awarded money from the fund may use the money
570	570	for research consistent with the purposes of this chapter and in
571	571	accordance with a contract between the grant recipient and the
572	572	institute.
573	573	(b) Except as otherwise provided by this section, grant
574	574	money awarded under this chapter may be used for authorized
575	575	expenses, including:
576	576	(1) honoraria;
577	577	(2) salaries and benefits;
578	578	(3) travel;
579	579	(4) conference fees and expenses;
580	580	(5) consumable supplies;
581	581	(6) operating expenses;
582	582	(7) contracted research and development;
583	583	(8) capital equipment;
584	584	(9) construction or renovation of state or private
585	585	facilities; and
586	586	(10) reimbursement for participation costs incurred
587	587	by brain cancer clinical trial participants, including
588	588	transportation, lodging, and any costs reimbursed under the cancer
589	589	clinical trial participation program established under Chapter 51,
590	590	Health and Safety Code.
591	591	(c) A grant recipient receiving money under this chapter for
592	592	mental health or brain disease research may not spend more than five
593	593	percent of the money for indirect costs. For purposes of this
594	594	subsection, "indirect costs" means the expenses of conducting
595	595	business that are not readily identified with a particular grant,
596	596	contract, project, function, or activity, but are necessary for the
597	597	general operation of the organization or the performance of the
598	598	organization's activities.
599	599	(d) Not more than five percent of the total amount of grant
600	600	money awarded under this chapter in a state fiscal year may be used
601	601	for facility purchase, construction, remodel, or renovation
602	602	purposes, and those expenditures must benefit mental health or
603	603	brain research.
604	604	(e) Not more than 10 percent of the total amount of grant
605	605	money awarded under this chapter in a state fiscal year may be used
606	606	for prevention projects and strategies to mitigate the incidence of
607	607	detrimental health impacts on mental health or the brain during
608	608	that year.
609	609	SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
610	610	Sec. 157.251. CONFLICT OF INTEREST. (a) The oversight
611	611	committee shall adopt conflict-of-interest rules, based on
612	612	standards applicable to members of scientific review committees of
613	613	the National Institutes of Health, to govern members of the
614	614	oversight committee, the program integration committee, the peer
615	615	review committee, and institute employees.
616	616	(b) An oversight committee member, program integration
617	617	committee member, peer review committee member, or institute
618	618	employee shall recuse himself or herself, as provided by Section
619	619	157.252(a), (b), or (c), as applicable, if the member or employee,
620	620	or a person who is related to the member or employee within the
621	621	second degree of affinity or consanguinity, has a professional or
622	622	financial interest in an entity receiving or applying to receive
623	623	money from the institute.
624	624	(c) A person has a professional interest in an entity
625	625	receiving or applying to receive money from the institute if the
626	626	person:
627	627	(1) is a member of the board of directors, another
628	628	governing board, or any committee of the entity, or of a foundation
629	629	or similar organization affiliated with the entity, during the same
630	630	grant cycle;
631	631	(2) serves as an elected or appointed officer of the
632	632	entity;
633	633	(3) is an employee of or is negotiating future
634	634	employment with the entity;
635	635	(4) represents the entity;
636	636	(5) is a professional associate of a primary member of
637	637	the entity's project team;
638	638	(6) is, or within the preceding six years has been, a
639	639	student, postdoctoral associate, or part of a laboratory research
640	640	group for a primary member of the entity's project team;
641	641	(7) is engaged or is actively planning to be engaged in
642	642	collaboration with a primary member of the entity's project team;
643	643	or
644	644	(8) has long-standing scientific differences or
645	645	disagreements with a primary member of the entity's project team,
646	646	and those differences or disagreements:
647	647	(A) are known to the professional community; and
648	648	(B) could be perceived as affecting objectivity.
649	649	(d) A person has a financial interest in an entity receiving
650	650	or applying to receive money from the institute if the person:
651	651	(1) owns or controls, directly or indirectly, an
652	652	ownership interest, including sharing in profits, proceeds, or
653	653	capital gains, in an entity receiving or applying to receive money
654	654	from the institute; or
655	655	(2) could reasonably foresee that an action taken by
656	656	the oversight committee, the program integration committee, a peer
657	657	review committee, or the institute could result in a financial
658	658	benefit to the person.
659	659	(e) Nothing in this chapter limits the authority of the
660	660	oversight committee to adopt additional conflict-of-interest
661	661	standards.
662	662	Sec. 157.252. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
663	663	(a) If an oversight committee member or program integration
664	664	committee member has a conflict of interest as described by Section
665	665	157.251 regarding an application that comes before the member for
666	666	review or other action, the member shall:
667	667	(1) provide written notice to the chief executive
668	668	officer and the presiding officer of the oversight committee or the
669	669	next ranking member of the committee if the presiding officer has
670	670	the conflict of interest;
671	671	(2) disclose the conflict of interest in an open
672	672	meeting of the oversight committee; and
673	673	(3) recuse himself or herself from participating in
674	674	the review, discussion, deliberation, and vote on the application
675	675	and from accessing information regarding the matter to be decided.
676	676	(b) If a peer review committee member has a conflict of
677	677	interest described by Section 157.251 regarding an application that
678	678	comes before the member's committee for review or other action, the
679	679	member shall:
680	680	(1) provide written notice to the chief executive
681	681	officer of the conflict of interest; and
682	682	(2) recuse himself or herself from participating in
683	683	the review, discussion, deliberation, and vote on the application
684	684	and from accessing information regarding the matter to be decided.
685	685	(c) If an institute employee has a conflict of interest
686	686	described by Section 157.251 regarding an application that comes
687	687	before the employee for review or other action, the employee shall:
688	688	(1) provide written notice to the chief executive
689	689	officer of the conflict of interest; and
690	690	(2) recuse himself or herself from participating in
691	691	the review of the application and be prevented from accessing
692	692	information regarding the matter to be decided.
693	693	(d) An oversight committee member, program integration
694	694	committee member, peer review committee member, or institute
695	695	employee with a conflict of interest may seek a waiver as provided
696	696	by Section 157.253.
697	697	(e) An oversight committee member, program integration
698	698	committee member, peer review committee member, or institute
699	699	employee who reports a potential conflict of interest or another
700	700	impropriety or self-dealing of the member or employee and who fully
701	701	complies with the recommendations of the general counsel and
702	702	recusal requirements is considered in compliance with the
703	703	conflict-of-interest provisions of this chapter. The member or
704	704	employee is subject to other applicable laws, rules, requirements,
705	705	and prohibitions.
706	706	(f) An oversight committee member, program integration
707	707	committee member, peer review committee member, or institute
708	708	employee who intentionally violates this section is subject to
709	709	removal from further participation in the institute's grant review
710	710	process.
711	711	Sec. 157.253. EXCEPTIONAL CIRCUMSTANCES REQUIRING
712	712	PARTICIPATION. The oversight committee shall adopt rules governing
713	713	the waiver of the conflict-of-interest requirements of this chapter
714	714	under exceptional circumstances for an oversight committee member,
715	715	program integration committee member, peer review committee
716	716	member, or institute employee. The rules must:
717	717	(1) authorize the chief executive officer or an
718	718	oversight committee member to propose granting a waiver by
719	719	submitting to the presiding officer of the oversight committee a
720	720	written statement about the conflict of interest, the exceptional
721	721	circumstance requiring the waiver, and any proposed limitations to
722	722	the waiver;
723	723	(2) require a proposed waiver to be publicly reported
724	724	at a meeting of the oversight committee;
725	725	(3) require a majority vote of the oversight committee
726	726	members present and voting to grant a waiver;
727	727	(4) require any waiver granted to be reported annually
728	728	to the lieutenant governor, the speaker of the house of
729	729	representatives, the governor, and the standing committee of each
730	730	house of the legislature with primary jurisdiction over institute
731	731	matters; and
732	732	(5) require the institute to retain documentation of
733	733	each waiver granted.
734	734	Sec. 157.254. INVESTIGATION OF UNREPORTED CONFLICTS OF
735	735	INTEREST. (a) An oversight committee member, a program
736	736	integration committee member, a peer review committee member, or an
737	737	institute employee who becomes aware of a potential conflict of
738	738	interest described by Section 157.251 that has not been reported
739	739	shall immediately notify the chief executive officer of the
740	740	potential conflict of interest. On notification, the chief
741	741	executive officer shall notify the presiding officer of the
742	742	oversight committee and the general counsel, who shall determine
743	743	the nature and extent of any unreported conflict.
744	744	(b) A grant applicant seeking an investigation regarding
745	745	whether a prohibited conflict of interest was not reported shall
746	746	file a written request with the institute's chief executive
747	747	officer. The applicant must:
748	748	(1) include in the request all facts regarding the
749	749	alleged conflict of interest; and
750	750	(2) submit the request not later than the 30th day
751	751	after the date the chief executive officer presents final funding
752	752	recommendations for the affected grant cycle to the oversight
753	753	committee.
754	754	(c) On notification of an alleged conflict of interest under
755	755	Subsection (a) or (b), the institute's general counsel shall:
756	756	(1) investigate the matter; and
757	757	(2) provide to the chief executive officer and
758	758	presiding officer of the oversight committee an opinion that
759	759	includes:
760	760	(A) a statement of facts;
761	761	(B) a determination of whether a conflict of
762	762	interest or another impropriety or self-dealing exists; and
763	763	(C) if the opinion provides that a conflict of
764	764	interest or another impropriety or self-dealing exists,
765	765	recommendations for an appropriate course of action.
766	766	(d) If the conflict of interest, impropriety, or
767	767	self-dealing involves the presiding officer of the oversight
768	768	committee, the institute's general counsel shall provide the
769	769	opinion to the next ranking oversight committee member who is not
770	770	involved with the conflict of interest, impropriety, or
771	771	self-dealing.
772	772	(e) After receiving the opinion and consulting with the
773	773	presiding officer of the oversight committee, the chief executive
774	774	officer shall take action regarding the recusal of the individual
775	775	from any discussion of or access to information related to the
776	776	conflict of interest or other recommended action related to the
777	777	impropriety or self-dealing. If the alleged conflict of interest,
778	778	impropriety, or self-dealing is held by, or is an act of, the chief
779	779	executive officer, the presiding officer of the oversight committee
780	780	shall take actions regarding the recusal or other action.
781	781	Sec. 157.255. FINAL DETERMINATION OF UNREPORTED CONFLICT OF
782	782	INTEREST. (a) The chief executive officer or, if applicable, the
783	783	presiding officer of the oversight committee shall make a
784	784	determination regarding the existence of an unreported conflict of
785	785	interest described by Section 157.251 or other impropriety or
786	786	self-dealing. The determination must specify any actions to be
787	787	taken to address the conflict of interest, impropriety, or
788	788	self-dealing, including:
789	789	(1) reconsideration of the application; or
790	790	(2) referral of the application to another peer review
791	791	committee for review.
792	792	(b) The determination made under Subsection (a) is
793	793	considered final unless three or more oversight committee members
794	794	request that the issue be added to the agenda of the oversight
795	795	committee.
796	796	(c) The chief executive officer or, if applicable, the
797	797	presiding officer of the oversight committee, shall provide written
798	798	notice of the final determination, including any further actions to
799	799	be taken, to the grant applicant requesting the investigation.
800	800	(d) Unless specifically determined by the chief executive
801	801	officer or, if applicable, the presiding officer of the oversight
802	802	committee, or the oversight committee, the validity of an action
803	803	taken on a grant application is not affected by the fact that an
804	804	individual who failed to report a conflict of interest participated
805	805	in the action.
806	806	SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
807	807	Sec. 157.301. AWARD REVIEW PROCESS. The institute shall
808	808	use a peer review process to evaluate and recommend all grants the
809	809	oversight committee awards under this chapter.
810	810	Sec. 157.302. GRANT AWARD RULES AND PROCEDURES. (a) The
811	811	oversight committee shall adopt rules regarding the procedure for
812	812	awarding grants to an applicant under this chapter. The rules must
813	813	require:
814	814	(1) the peer review committee to score grant
815	815	applications and make recommendations to the program integration
816	816	committee and the oversight committee regarding the award of
817	817	grants, including providing a prioritized list that:
818	818	(A) ranks the grant applications in the order the
819	819	peer review committee determines applications should be funded; and
820	820	(B) includes information explaining each grant
821	821	applicant's qualification under the peer review committee's
822	822	standards for recommendation; and
823	823	(2) the program integration committee to submit to the
824	824	oversight committee a list of grant applications the program
825	825	integration committee by majority vote approved for recommendation
826	826	that:
827	827	(A) includes documentation on the factors the
828	828	program integration committee considered in making the grant
829	829	recommendations;
830	830	(B) is substantially based on the list submitted
831	831	by the peer review committee under Subdivision (1); and
832	832	(C) to the extent possible, gives priority to
833	833	proposals that:
834	834	(i) may lead to immediate or long-term
835	835	medical and scientific breakthroughs in the areas of prevention,
836	836	treatment, or cures for mental health or brain disease;
837	837	(ii) strengthen and enhance fundamental
838	838	science in mental health or brain research;
839	839	(iii) ensure a comprehensive coordinated
840	840	approach to mental health or brain research;
841	841	(iv) are interdisciplinary or
842	842	interinstitutional;
843	843	(v) align with state priorities and needs,
844	844	including priorities and needs outlined in other state agency
845	845	strategic plans, or address federal or other major research
846	846	sponsors' priorities in scientific or technological fields in the
847	847	area of mental health or brain research;
848	848	(vi) are matched with money provided by a
849	849	private or nonprofit entity or institution of higher education;
850	850	(vii) are collaborative between any
851	851	combination of private and nonprofit entities, public or private
852	852	agencies or institutions in this state, and public or private
853	853	institutions outside this state;
854	854	(viii) benefit the residents of this state,
855	855	including a demonstrable economic development benefit to this
856	856	state;
857	857	(ix) enhance research superiority at
858	858	institutions of higher education in this state by creating new
859	859	research superiority, attracting existing research superiority
860	860	from institutions outside this state and other research entities,
861	861	or attracting from outside this state additional researchers and
862	862	resources;
863	863	(x) expedite innovation and product
864	864	development, attract private sector entities to stimulate a
865	865	substantial increase in high-quality jobs, and increase higher
866	866	education applied science or technology research capabilities; and
867	867	(xi) address the goals of the research
868	868	plan.
869	869	(b) A member of a peer review committee may not attempt to
870	870	use the committee member's official position to influence a
871	871	decision to approve or award a grant or contract to the committee
872	872	member's employer.
873	873	(c) A program integration committee member may not discuss a
874	874	grant applicant recommendation with an oversight committee member
875	875	unless the program integration committee has fulfilled the
876	876	requirements of Subsection (a)(2).
877	877	(d) Two-thirds of the oversight committee members present
878	878	and voting must vote to approve each funding recommendation of the
879	879	program integration committee. If the oversight committee does not
880	880	approve a funding recommendation of the program integration
881	881	committee, a statement explaining the reasons the funding
882	882	recommendation was not followed must be included in the minutes of
883	883	the meeting.
884	884	(e) The oversight committee may not award more than $300
885	885	million in grants under this chapter in a state fiscal year.
886	886	(f) The oversight committee may not award a grant to an
887	887	applicant who has made a gift or grant to the institute, an
888	888	oversight committee member, or an institute employee on or after
889	889	January 1, 2024. This section does not apply to gifts, fees,
890	890	honoraria, or other items also excepted under Section 36.10, Penal
891	891	Code.
892	892	Sec. 157.303. MULTIYEAR PROJECTS. (a) The oversight
893	893	committee may approve the award of grant money for a multiyear
894	894	project.
895	895	(b) The oversight committee shall specify the total amount
896	896	of money approved to fund the multiyear project. The total amount
897	897	specified is considered for purposes of this chapter to have been
898	898	awarded in the state fiscal year that the peer review committee
899	899	approved the project. The institute shall distribute only the
900	900	money that will be expended during that fiscal year. The institute
901	901	shall distribute the remaining grant money as the money is needed in
902	902	each subsequent state fiscal year.
903	903	Sec. 157.304. CONTRACT TERMS. (a) Before disbursing any
904	904	grant money awarded under this chapter, the institute shall execute
905	905	a written contract with the grant recipient. The contract shall:
906	906	(1) specify that except for awards to state agencies
907	907	or public institutions of higher education, if all or any portion of
908	908	the amount of the grant is used to build a capital improvement:
909	909	(A) the state retains a lien or other interest in
910	910	the capital improvement in proportion to the percentage of the
911	911	grant amount used to pay for the capital improvement; and
912	912	(B) the grant recipient shall, if the capital
913	913	improvement is sold:
914	914	(i) repay to the state the grant money used
915	915	to pay for the capital improvement, with interest at the rate and
916	916	according to the other terms provided by the contract; and
917	917	(ii) share with the state a proportionate
918	918	amount of any profit realized from the sale;
919	919	(2) specify that if the grant recipient has not used
920	920	awarded grant money for the purposes for which the grant was
921	921	intended, the recipient shall repay that grant amount and any
922	922	related interest applicable under the contract to this state at the
923	923	agreed rate and on the agreed terms;
924	924	(3) specify that if the grant recipient fails to meet
925	925	the terms and conditions of the contract, the institute may
926	926	terminate the contract using the written process prescribed in the
927	927	contract and require the recipient to repay the awarded grant money
928	928	and any related interest applicable under the contract to this
929	929	state at the agreed rate and on the agreed terms;
930	930	(4) include terms relating to intellectual property
931	931	rights consistent with the standards developed by the oversight
932	932	committee under Section 157.305;
933	933	(5) require that, in accordance with Subsection (b),
934	934	the grant recipient dedicate an amount of matching money equal to
935	935	one-half of the amount of the research grant awarded and specify the
936	936	amount of matching money to be dedicated;
937	937	(6) specify the period in which the grant award must be
938	938	spent; and
939	939	(7) include the specific deliverables of the project
940	940	that is the subject of the grant proposal.
941	941	(b) Before the institute may disburse grant money, the grant
942	942	recipient must certify that the recipient has an amount of money
943	943	equal to one-half of the grant money that is available and not yet
944	944	expended, and dedicate that money to the research that is the
945	945	subject of the grant proposal. The institute shall adopt rules
946	946	specifying a grant recipient's obligations under this subchapter.
947	947	At a minimum, the rules must:
948	948	(1) allow a grant recipient that is an institution of
949	949	higher education or a private or independent institution of higher
950	950	education, as those terms are defined by Section 61.003, or a
951	951	research institute or center affiliated with the institution, to
952	952	credit toward the recipient's matching money the dollar amount
953	953	equivalent to the difference between the indirect cost rate
954	954	authorized by the federal government for research grants awarded to
955	955	the recipient and the indirect cost rate authorized by Section
956	956	157.203(c);
957	957	(2) specify that:
958	958	(A) a grant recipient receiving more than one
959	959	grant award may provide matching money certification at an
960	960	institutional level;
961	961	(B) the recipient of a multiyear grant award may
962	962	yearly certify matching money; and
963	963	(C) grant money may not be disbursed to the grant
964	964	recipient until the annual certification of the matching money has
965	965	been approved;
966	966	(3) specify that money for certification purposes may
967	967	include:
968	968	(A) federal funds;
969	969	(B) the fair market value of drug development
970	970	support provided to the recipient by the National Institutes of
971	971	Health or other similar programs;
972	972	(C) funds of this state;
973	973	(D) funds of other states; and
974	974	(E) nongovernmental funds, including private
975	975	funds, foundation grants, gifts, and donations;
976	976	(4) specify that the following items may not be used
977	977	for certification purposes:
978	978	(A) in-kind costs;
979	979	(B) volunteer services provided to a grant
980	980	recipient;
981	981	(C) noncash contributions;
982	982	(D) preexisting real estate of the grant
983	983	recipient, including buildings, facilities, and land;
984	984	(E) deferred giving, including a charitable
985	985	remainder annuity trust, charitable remainder unitrust, or pooled
986	986	income fund; or
987	987	(F) any other items determined by the institute;
988	988	(5) require that the grant recipient's certification
989	989	be included in the grant award contract;
990	990	(6) specify that a grant recipient's failure to
991	991	provide certification serves as grounds for terminating the grant
992	992	award contract;
993	993	(7) require a grant recipient to maintain adequate
994	994	documentation supporting the source and use of the money required
995	995	by this subsection and to provide documentation to the institute on
996	996	request; and
997	997	(8) require that the institute establish a procedure
998	998	to conduct an annual review of the documentation supporting the
999	999	source and use of money reported in the required certification.
1000	1000	(c) The institute shall establish a policy on advance
1001	1001	payments to grant recipients.
1002	1002	(d) The oversight committee shall adopt rules to administer
1003	1003	this section.
1004	1004	Sec. 157.305. PATENT ROYALTIES AND LICENSE REVENUES PAID TO
1005	1005	STATE. (a) The oversight committee shall establish standards
1006	1006	requiring all grant awards to be subject to an intellectual
1007	1007	property agreement that allows this state to collect royalties,
1008	1008	income, and other benefits, including interest or proceeds
1009	1009	resulting from securities and equity ownership, realized as a
1010	1010	result of projects undertaken with money awarded under this
1011	1011	chapter.
1012	1012	(b) In determining this state's interest in any
1013	1013	intellectual property rights, the oversight committee shall
1014	1014	balance the opportunity of this state to benefit from the patents,
1015	1015	royalties, licenses, and other benefits that result from basic
1016	1016	research, therapy development, and clinical trials with the need to
1017	1017	ensure that essential medical research is not unreasonably hindered
1018	1018	by the intellectual property agreement and that the agreement does
1019	1019	not unreasonably remove the incentive on the part of the individual
1020	1020	researcher, research team, or institution.
1021	1021	(c) The oversight committee may authorize the institute to
1022	1022	enter into a contract with one or more qualified third parties for
1023	1023	assistance with the management, accounting, and disposition of this
1024	1024	state's interest in securities, equities, royalties, income, and
1025	1025	other benefits realized as a result of projects undertaken with
1026	1026	money awarded under this chapter. The institute shall implement
1027	1027	practices and procedures with regard to managing, accounting, and
1028	1028	disposition of securities, equities, royalties, income, and other
1029	1029	benefits as it may determine to be in the best interest of the
1030	1030	state.
1031	1031	Sec. 157.306. PREFERENCE FOR TEXAS SUPPLIERS. In a good
1032	1032	faith effort to achieve a goal of more than 50 percent of purchases
1033	1033	from suppliers in this state, the oversight committee shall
1034	1034	establish standards to ensure that grant recipients purchase goods
1035	1035	and services from suppliers in this state to the extent reasonably
1036	1036	possible.
1037	1037	Sec. 157.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The
1038	1038	oversight committee shall establish standards to ensure that grant
1039	1039	recipients purchase goods and services from historically
1040	1040	underutilized businesses as defined by Section 2161.001,
1041	1041	Government Code, and any other applicable state law.
1042	1042	Sec. 157.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.
1043	1043	(a) The institute shall require as a condition of a grant awarded
1044	1044	under this chapter that the grant recipient submit to regular
1045	1045	inspection reviews of the grant project by institute staff to
1046	1046	ensure compliance with the terms of the grant contract and ongoing
1047	1047	progress, including the scientific merit of the research.
1048	1048	(b) The chief executive officer shall report at least
1049	1049	annually to the oversight committee on the progress and continued
1050	1050	merit of the projects awarded grants by the institute.
1051	1051	Sec. 157.309. MEDICAL AND RESEARCH ETHICS. Any project
1052	1052	that is awarded a grant under this chapter must comply with all
1053	1053	applicable federal and state laws regarding the conduct of the
1054	1054	research or prevention project.
1055	1055	Sec. 157.310. PUBLIC INFORMATION; CONFIDENTIAL
1056	1056	INFORMATION. (a) The following information is public information
1057	1057	and may be disclosed under Chapter 552, Government Code:
1058	1058	(1) the applicant's name and address;
1059	1059	(2) the amount of money requested in the applicant's
1060	1060	grant proposal;
1061	1061	(3) the type of mental health or brain research to be
1062	1062	addressed under the proposal; and
1063	1063	(4) any other information the institute designates
1064	1064	with the consent of the grant applicant.
1065	1065	(b) To protect the actual or potential value of information
1066	1066	submitted to the institute by an applicant for or recipient of an
1067	1067	institute grant, the following information submitted by the
1068	1068	applicant or recipient is confidential and is not subject to
1069	1069	disclosure under Chapter 552, Government Code, or any other law:
1070	1070	(1) all information, other than the information
1071	1071	required under Subsection (a), that is contained in a grant award
1072	1072	application, peer review evaluation, award contract, or progress
1073	1073	report relating to a product, device, or process, the application
1074	1074	or use of the product, device, or process, and all technological and
1075	1075	scientific information, including computer programs, developed
1076	1076	wholly or partly by a grant applicant or recipient, regardless of
1077	1077	whether patentable or capable of being registered under copyright
1078	1078	or trademark laws, that has a potential for being sold, traded, or
1079	1079	licensed for a fee; and
1080	1080	(2) the plans, specifications, blueprints, and
1081	1081	designs, including related proprietary information, of a
1082	1082	scientific research and development facility.
1083	1083	(c) The following information is confidential and not
1084	1084	subject to disclosure under Chapter 552, Government Code:
1085	1085	(1) information that directly or indirectly reveals
1086	1086	the identity of an individual who made a report related to fraud,
1087	1087	waste, or abuse of state resources to the institute's compliance
1088	1088	program office, sought guidance from the office, or participated in
1089	1089	an investigation conducted under the compliance program;
1090	1090	(2) information that directly or indirectly reveals
1091	1091	the identity of an individual who is alleged to have or may have
1092	1092	planned, initiated, or participated in activities that are the
1093	1093	subject of a report made to the office if, after completing an
1094	1094	investigation, the office determines the report to be
1095	1095	unsubstantiated or without merit; and
1096	1096	(3) other information that is collected or produced in
1097	1097	a compliance program investigation if releasing the information
1098	1098	would interfere with an ongoing compliance investigation.
1099	1099	(d) Subsection (c) does not apply to information related to
1100	1100	an individual who consents to disclosure of the information.
1101	1101	(e) Information made confidential or excepted from public
1102	1102	disclosure by this section may be made available on request and in
1103	1103	compliance with applicable laws and procedures to the following:
1104	1104	(1) a law enforcement agency or prosecutor;
1105	1105	(2) a governmental agency responsible for
1106	1106	investigating the matter that is the subject of a compliance
1107	1107	report, including the Texas Workforce Commission civil rights
1108	1108	division or the federal Equal Employment Opportunity Commission; or
1109	1109	(3) a committee member or institute employee who is
1110	1110	responsible under institutional policy for a compliance program
1111	1111	investigation or for a review of a compliance program
1112	1112	investigation.
1113	1113	(f) A disclosure under Subsection (e) is not a voluntary
1114	1114	disclosure for purposes of Section 552.007, Government Code.
1115	1115	(g) The institute shall post on the institute's Internet
1116	1116	website records that pertain specifically to any gift, grant, or
1117	1117	other consideration provided to the institute, an institute
1118	1118	employee, or a member of the oversight committee, in the employee's
1119	1119	or oversight committee member's official capacity. The posted
1120	1120	information must include each donor's name and the amount and date
1121	1121	of the donor's donation. This section is not applicable to gifts,
1122	1122	fees, honoraria, or other items also excepted under Section 36.10,
1123	1123	Penal Code.
1124	1124	Sec. 157.311. APPROPRIATION CONTINGENCY. The institute is
1125	1125	required to implement a provision of this chapter only if the
1126	1126	legislature appropriates money specifically for that purpose. If
1127	1127	the legislature does not appropriate money specifically for that
1128	1128	purpose, the institute may, but is not required to, implement the
1129	1129	provision using other money available to the institute for that
1130	1130	purpose.
1131	1131	SECTION 2. Section 51.955(c), Education Code, is amended to
1132	1132	read as follows:
1133	1133	(c) Subsection (b)(1) does not apply to a research contract
1134	1134	between an institution of higher education and the Cancer
1135	1135	Prevention and Research Institute of Texas or Mental Health and
1136	1136	Brain Research Institute of Texas.
1137	1137	SECTION 3. Section 61.003(6), Education Code, is amended to
1138	1138	read as follows:
1139	1139	(6) "Other agency of higher education" means The
1140	1140	University of Texas System, System Administration; The University
1141	1141	of Texas at El Paso Museum; Texas Epidemic Public Health Institute
1142	1142	at The University of Texas Health Science Center at Houston; The
1143	1143	Texas A&M University System, Administrative and General Offices;
1144	1144	Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
1145	1145	Rodent and Predatory Animal Control Service (a part of the Texas A&M
1146	1146	AgriLife Extension Service); Texas A&M Engineering Experiment
1147	1147	Station (including the Texas A&M Transportation Institute); Texas
1148	1148	A&M Engineering Extension Service; Texas A&M Forest Service; Texas
1149	1149	Division of Emergency Management; Texas Tech University Museum;
1150	1150	Texas State University System, System Administration; Sam Houston
1151	1151	Memorial Museum; Panhandle-Plains Historical Museum; Cotton
1152	1152	Research Committee of Texas; Texas Water Resources Institute; Texas
1153	1153	A&M Veterinary Medical Diagnostic Laboratory; Mental Health and
1154	1154	Brain Research Institute of Texas; and any other unit, division,
1155	1155	institution, or agency which shall be so designated by statute or
1156	1156	which may be established to operate as a component part of any
1157	1157	public senior college or university, or which may be so classified
1158	1158	as provided in this chapter.
1159	1159	SECTION 4. (a) Not later than December 1, 2024, the
1160	1160	appropriate appointing authority shall appoint the members to the
1161	1161	Mental Health and Brain Research Institute of Texas Oversight
1162	1162	Committee as required by Section 157.101, Education Code, as added
1163	1163	by this Act. The oversight committee may not act until a majority
1164	1164	of the appointed members have taken office.
1165	1165	(b) Notwithstanding Section 157.101, Education Code, as
1166	1166	added by this Act, in making the initial appointments under that
1167	1167	section, the governor, lieutenant governor, and speaker of the
1168	1168	house of representatives shall, as applicable, designate one member
1169	1169	of the Mental Health and Brain Research Institute of Texas
1170	1170	Oversight Committee appointed by that person to serve a term
1171	1171	expiring January 31, 2025, one member appointed by that person to
1172	1172	serve a term expiring January 31, 2027, and one member appointed by
1173	1173	that person to serve a term expiring January 31, 2029.
1174	1174	(c) The governor shall designate one member to serve as
1175	1175	interim presiding officer for the purpose of calling and presiding
1176	1176	over meetings of the Mental Health and Brain Research Institute of
1177	1177	Texas Oversight Committee until an election is held under Section
1178	1178	157.104, Education Code, as added by this Act.
1179	1179	SECTION 5. If the constitutional amendment proposed by the
1180	1180	88th Legislature, Regular Session, 2023, requiring the creation of
1181	1181	the Mental Health and Brain Research Institute of Texas and the
1182	1182	transfer of $3 billion from general state revenue to fund mental
1183	1183	health and brain research in this state is approved by the voters,
1184	1184	the Mental Health and Brain Research Institute of Texas established
1185	1185	by Chapter 157, Education Code, as added by this Act, is eligible to
1186	1186	receive funding deposited under the authority of Section 68,
1187	1187	Article III, Texas Constitution, for any activities conducted by
1188	1188	the institute that serve the purposes of that constitutional
1189	1189	provision.
1190	1190	SECTION 6. This Act takes effect January 1, 2024, but only
1191	1191	if the constitutional amendment proposed by the 88th Legislature,
1192	1192	Regular Session, 2023, requiring the creation of the Mental Health
1193	1193	and Brain Research Institute of Texas, establishing the Mental
1194	1194	Health and Brain Institute Research Fund to provide funding for
1195	1195	mental health and brain research in this state, and transferring
1196	1196	general revenue to that fund is approved by the voters. If that
1197	1197	amendment is not approved by the voters, this Act has no effect.