Texas 2025 - 89th Regular

Texas House Bill HB1302 Compare Versions

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1	1	89R7297 MPF-D
2	2	By: Raymond H.B. No. 1302
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of the Alzheimer's Prevention and Research
10	10	Institute of Texas.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
13	13	amended by adding Chapter 101A to read as follows:
14	14	CHAPTER 101A. ALZHEIMER'S PREVENTION AND RESEARCH INSTITUTE OF
15	15	TEXAS
16	16	SUBCHAPTER A. GENERAL PROVISIONS
17	17	Sec. 101A.001. DEFINITIONS. In this chapter:
18	18	(1) "Institute" means the Alzheimer's Prevention and
19	19	Research Institute of Texas.
20	20	(2) "Oversight committee" means the Alzheimer's
21	21	Prevention and Research Institute of Texas Oversight Committee.
22	22	(3) "Peer review committee" means the Alzheimer's
23	23	Prevention and Research Institute of Texas Peer Review Committee.
24	24	(4) “Program integration committee” means the
25	25	Alzheimer's Prevention and Research Institute of Texas Program
26	26	Integration Committee.
27	27	(5) "Research plan" means the Texas Alzheimer's
28	28	Prevention and Research Plan developed by the institute.
29	29	Sec. 101A.002. PURPOSES. The Alzheimer's Prevention and
30	30	Research Institute of Texas is established to:
31	31	(1) create and expedite innovation in research on
32	32	Alzheimer's disease and related disorders to improve the health of
33	33	residents of this state, enhance the potential for a medical or
34	34	scientific breakthrough in research on Alzheimer's disease and
35	35	related disorders, and enhance the research superiority of this
36	36	state regarding Alzheimer's disease and related disorders;
37	37	(2) attract, create, or expand research capabilities
38	38	of eligible institutions of higher education and other public or
39	39	private entities by awarding grants to promote a substantial
40	40	increase in research on Alzheimer's disease and related disorders,
41	41	strategies for prevention of Alzheimer's disease and related
42	42	disorders, and the creation of exceptional jobs in this state; and
43	43	(3) develop and implement a research plan to foster
44	44	synergistic collaboration between eligible institutions of higher
45	45	education and their partners and other grant recipients in research
46	46	on Alzheimer's disease and related disorders.
47	47	Sec. 101A.003. SUNSET PROVISION. The Alzheimer's
48	48	Prevention and Research Institute of Texas is subject to Chapter
49	49	325, Government Code (Texas Sunset Act). Unless continued in
50	50	existence as provided by that chapter, the institute is abolished
51	51	and this chapter expires September 1, 2035.
52	52	Sec. 101A.004. STATE AUDITOR. Nothing in this chapter
53	53	limits the authority of the state auditor under Chapter 321,
54	54	Government Code, or other law.
55	55	SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
56	56	Sec. 101A.051. POWERS AND DUTIES. (a) The institute:
57	57	(1) may award grants to institutions of learning,
58	58	advanced medical research facilities, public or private persons,
59	59	and collaboratives in this state to further the purposes of this
60	60	chapter and Section 68, Article III, Texas Constitution, including:
61	61	(A) implementation of the research plan;
62	62	(B) research, including translational and
63	63	clinical research, into the causes of, means of prevention of, and
64	64	treatment and rehabilitation for Alzheimer's disease and related
65	65	disorders;
66	66	(C) research, including translational research,
67	67	to develop therapies, protocols, medical pharmaceuticals, or
68	68	procedures for the substantial mitigation of the symptoms of
69	69	Alzheimer's disease and related disorders;
70	70	(D) facilities, equipment, supplies, salaries,
71	71	benefits, and other costs related to research on Alzheimer's
72	72	disease and related disorders; and
73	73	(E) prevention programs and strategies to
74	74	mitigate the detrimental health impacts of Alzheimer's disease and
75	75	related disorders;
76	76	(2) shall collaborate with relevant state agencies,
77	77	coordinating councils, and consortiums to enhance health care and
78	78	research for Alzheimer's disease and related disorders;
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 to the
83	83	institute administrative support;
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 each grant recipient complies with the terms and
91	91	conditions of the contract;
92	92	(7) shall ensure all grant proposals comply with this
93	93	chapter and rules adopted under this chapter before the proposals
94	94	are submitted to the oversight committee for approval;
95	95	(8) shall establish procedures to document compliance
96	96	by the institute, institute employees, and institute committee
97	97	members with all laws and rules governing the peer review process
98	98	and conflicts of interest; and
99	99	(9) shall create a statewide research and clinical
100	100	data registry for research related to Alzheimer's disease and
101	101	related disorders.
102	102	(b) The institute shall implement, monitor, and, as
103	103	necessary, revise the research plan.
104	104	(c) The institute may collaborate as necessary with The
105	105	University of Texas Southwestern Medical Center in carrying out the
106	106	institute's duties under this chapter.
107	107	Sec. 101A.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
108	108	OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
109	109	hire a chief executive officer. The chief executive officer shall
110	110	perform the duties required by this chapter and the duties
111	111	designated by the oversight committee. The chief executive officer
112	112	must have a demonstrated ability to lead and develop academic,
113	113	commercial, and governmental partnerships and coalitions.
114	114	(b) The institute shall employ a chief compliance officer to
115	115	monitor compliance with this chapter and rules adopted under this
116	116	chapter and to report to the oversight committee incidents of
117	117	noncompliance.
118	118	(c) The chief executive officer may hire any other officer
119	119	position the chief executive officer determines necessary for the
120	120	institute's efficient operation.
121	121	Sec. 101A.053. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
122	122	later than January 31 of each year, the institute shall prepare and
123	123	submit to the governor, lieutenant governor, speaker of the house
124	124	of representatives, and standing committee of each house of the
125	125	legislature with primary jurisdiction over institute matters and
126	126	post on the institute's Internet website a report on:
127	127	(1) the institute's activities under this chapter;
128	128	(2) a list of recipients of grants awarded during the
129	129	preceding state fiscal year and the grant amount awarded to each
130	130	recipient;
131	131	(3) any research accomplishments a grant recipient or
132	132	the recipient's partners achieved during the preceding state fiscal
133	133	year;
134	134	(4) an overview summary of the institute's most recent
135	135	audited financial statement;
136	136	(5) an assessment of the relationship between the
137	137	institute's grants and research program strategy;
138	138	(6) a statement of the institute's strategic research
139	139	plans;
140	140	(7) an estimate of the financial cost to this state of
141	141	Alzheimer's disease and related disorders during the most recent
142	142	state fiscal year for which data is available, including the
143	143	amounts this state spent related to Alzheimer's disease and related
144	144	disorders under Medicaid, the Teacher Retirement System of Texas,
145	145	and the Employees Retirement System of Texas;
146	146	(8) a statement of the institute's compliance program
147	147	activities, including any proposed legislation or other
148	148	recommendations identified through the activities;
149	149	(9) for the preceding state fiscal year:
150	150	(A) a list of any conflict of interest requiring
151	151	recusal under this chapter or rules adopted under this chapter;
152	152	(B) any unreported conflict of interest
153	153	confirmed by an investigation conducted under Section 101A.254,
154	154	including any institute actions regarding an unreported conflict of
155	155	interest and subsequent investigation; and
156	156	(C) any waivers granted through the process
157	157	established under Section 101A.253; and
158	158	(10) the institute's future direction.
159	159	Sec. 101A.054. INDEPENDENT FINANCIAL AUDIT. (a) The
160	160	institute shall annually commission a certified public accounting
161	161	firm to perform an independent financial audit of its activities.
162	162	(b) The oversight committee shall review the annual
163	163	financial audit.
164	164	Sec. 101A.055. GRANT RECORDS; AUDIT OF ELECTRONIC GRANT
165	165	MANAGEMENT SYSTEM. (a) The institute shall maintain complete
166	166	records of:
167	167	(1) each grant application submitted to the institute,
168	168	including each application funded by the institute or withdrawn
169	169	after submission and the score the peer review committee assigns to
170	170	each reviewed application in accordance with rules adopted under
171	171	Section 101A.302;
172	172	(2) each grant recipient's financial reports,
173	173	including the amount of matching money dedicated to the research
174	174	specified for the grant award;
175	175	(3) each grant recipient's progress reports;
176	176	(4) the identity of each principal investor and owner
177	177	of each grant recipient as provided by institute rules to determine
178	178	any conflict of interest; and
179	179	(5) the institute's review of the grant recipient's
180	180	financial reports and progress reports.
181	181	(b) The institute shall keep each record described by
182	182	Subsection (a) until at least the 15th anniversary of the record's
183	183	date of issuance.
184	184	(c) The institute shall have prepared periodic audits of any
185	185	electronic grant management system used to maintain records of
186	186	grant applications and grant awards. The institute shall timely
187	187	address each weakness identified in an audit of the system.
188	188	Sec. 101A.056. GIFTS AND GRANTS. (a) The institute may
189	189	solicit and accept gifts and grants from any source for the purposes
190	190	of this chapter.
191	191	(b) The institute may not supplement the salary of any
192	192	institute employee or officer with a gift or grant the institute
193	193	receives.
194	194	Sec. 101A.057. PROHIBITED OFFICE LOCATION. An institute
195	195	employee may not have an office located in a facility owned by an
196	196	entity receiving or applying to receive money from the institute.
197	197	Sec. 101A.058. COMPLIANCE PROGRAM; INVESTIGATIONS. (a)
198	198	The institute shall establish a compliance program operating under
199	199	the direction of the institute's chief compliance officer to
200	200	monitor compliance with this chapter and rules adopted under this
201	201	chapter and for use in reporting incidents of noncompliance to the
202	202	oversight committee.
203	203	(b) The chief compliance officer or the officer's designee
204	204	shall attend and observe meetings of the peer review committee and
205	205	the program integration committee to ensure compliance with this
206	206	chapter and rules adopted under this chapter.
207	207	(c) The chief compliance officer shall submit a written
208	208	report to the oversight committee confirming each grant application
209	209	recommendation included on the list the program integration
210	210	committee submits under Section 101A.302(a)(2) complies with the
211	211	oversight committee's rules regarding grant award procedures. The
212	212	report must contain all relevant information on:
213	213	(1) the peer review process for the grant application;
214	214	(2) the score the peer review committee assigns to the
215	215	application;
216	216	(3) adherence to the conflict-of-interest
217	217	notification and recusal process; and
218	218	(4) confirmation that a recommended grant applicant
219	219	did not make any gift or grant prohibited by Section 101A.302(f).
220	220	(d) To ensure each grant recipient complies with reporting
221	221	requirements included in the grant contract and the rules adopted
222	222	under this chapter, the institute shall implement a system to:
223	223	(1) track the dates on which grant recipient reports
224	224	are due and are received by the institute; and
225	225	(2) monitor the status of any required report a grant
226	226	recipient does not timely submit to the institute.
227	227	(e) The chief compliance officer shall:
228	228	(1) monitor compliance with this section and the
229	229	status of any required report a grant recipient does not timely
230	230	submit to the institute; and
231	231	(2) notify the institute's general counsel and the
232	232	oversight committee of a grant recipient who has not complied with
233	233	the grant contract reporting requirements to allow the institute to
234	234	suspend or terminate the contract as the institute determines
235	235	appropriate.
236	236	(f) The chief compliance officer shall establish procedures
237	237	for investigating allegations against oversight committee members,
238	238	institute employees or contractors, grant applicants, or grant
239	239	recipients for fraud, waste, or abuse of state resources. The
240	240	procedures must include:
241	241	(1) private access to the compliance program office,
242	242	such as a telephone hotline; and
243	243	(2) to the extent possible, preservation of the
244	244	confidentiality of communications and the anonymity of a person who
245	245	submits a compliance report related to fraud, waste, or abuse or
246	246	participates in a compliance investigation.
247	247	SUBCHAPTER C. OVERSIGHT COMMITTEE
248	248	Sec. 101A.101. COMPOSITION OF OVERSIGHT COMMITTEE. (a)
249	249	The oversight committee is the institute's governing body.
250	250	(b) The oversight committee is composed of the following
251	251	nine members:
252	252	(1) three members appointed by the governor;
253	253	(2) three members appointed by the lieutenant
254	254	governor; and
255	255	(3) three members appointed by the speaker of the
256	256	house of representatives.
257	257	(c) The oversight committee members must represent this
258	258	state's geographic and cultural diversity.
259	259	(d) In making appointments to the oversight committee, the
260	260	governor, lieutenant governor, and speaker of the house of
261	261	representatives:
262	262	(1) must each appoint at least one person who is a
263	263	physician or a scientist with extensive experience working with
264	264	Alzheimer's disease or related disorders or in the field of public
265	265	health; and
266	266	(2) should attempt to include persons affected by
267	267	Alzheimer's disease or related disorders or family members or
268	268	caregivers of patients with Alzheimer's disease or related
269	269	disorders.
270	270	(e) A person may not be an oversight committee member if the
271	271	person or the person's spouse:
272	272	(1) is employed by or participates in the management
273	273	of an entity receiving money from the institute;
274	274	(2) owns or controls, directly or indirectly, an
275	275	interest in an entity receiving money from the institute; or
276	276	(3) uses or receives a substantial amount of tangible
277	277	goods, services, or money from the institute, other than
278	278	reimbursement authorized by this chapter for oversight committee
279	279	membership, attendance, or expenses.
280	280	Sec. 101A.102. REMOVAL. (a) It is a ground for removal
281	281	from the oversight committee that a member:
282	282	(1) is ineligible for membership under Section
283	283	101A.101(e);
284	284	(2) cannot, because of illness or disability,
285	285	discharge the member's duties for a substantial part of the member's
286	286	term; or
287	287	(3) is absent from more than half of the regularly
288	288	scheduled oversight committee meetings the member is eligible to
289	289	attend during a calendar year without an excuse approved by a
290	290	majority vote of the committee.
291	291	(b) The validity of an oversight committee action is not
292	292	affected by the fact that the action is taken when a ground for
293	293	removal of a committee member exists.
294	294	(c) If the chief executive officer has knowledge that a
295	295	potential ground for removal of a committee member exists, the
296	296	chief executive officer shall notify the presiding officer of the
297	297	oversight committee of the potential ground. The presiding officer
298	298	shall then notify the appointing authority and the attorney general
299	299	that a potential ground for removal exists. If the potential ground
300	300	for removal involves the presiding officer, the chief executive
301	301	officer shall notify the next highest ranking officer of the
302	302	oversight committee, who shall then notify the appointing authority
303	303	and the attorney general that a potential ground for removal
304	304	exists.
305	305	Sec. 101A.103. TERMS; VACANCY. (a) Oversight committee
306	306	members appointed by the governor, lieutenant governor, and speaker
307	307	of the house serve at the pleasure of the appointing authority for
308	308	staggered six-year terms, with the terms of three members expiring
309	309	on January 31 of each odd-numbered year.
310	310	(b) If a vacancy occurs on the oversight committee, the
311	311	appropriate appointing authority shall appoint a successor in the
312	312	same manner as the original appointment to serve for the remainder
313	313	of the unexpired term. The appropriate appointing authority shall
314	314	appoint the successor not later than the 30th day after the date the
315	315	vacancy occurs.
316	316	Sec. 101A.104. OFFICERS. (a) The oversight committee
317	317	shall elect a presiding officer and assistant presiding officer
318	318	from among its members every two years. The oversight committee may
319	319	elect additional officers from among its members.
320	320	(b) The presiding officer and assistant presiding officer
321	321	may not serve in the position to which the officer was elected for
322	322	consecutive terms.
323	323	(c) The oversight committee shall:
324	324	(1) establish and approve duties and responsibilities
325	325	for committee officers; and
326	326	(2) develop and implement policies that distinguish
327	327	the responsibilities of the oversight committee and the committee's
328	328	officers from the responsibilities of the chief executive officer
329	329	and institute employees.
330	330	Sec. 101A.105. EXPENSES. An oversight committee member is
331	331	not entitled to compensation but is entitled to reimbursement for
332	332	actual and necessary expenses incurred in attending committee
333	333	meetings or performing other official duties authorized by the
334	334	presiding officer.
335	335	Sec. 101A.106. MEETINGS. (a) The oversight committee
336	336	shall hold at least one public meeting each quarter of the calendar
337	337	year, with appropriate notice and a formal public comment period.
338	338	(b) The oversight committee may conduct a closed meeting in
339	339	accordance with Subchapter E, Chapter 551, Government Code, to
340	340	discuss issues related to:
341	341	(1) managing, acquiring, or selling securities or
342	342	other revenue-sharing obligations realized under the standards
343	343	established as required by Section 101A.305; and
344	344	(2) an ongoing compliance investigation into issues
345	345	related to fraud, waste, or abuse of state resources.
346	346	Sec. 101A.107. POWERS AND DUTIES. (a) The oversight
347	347	committee shall:
348	348	(1) hire a chief executive officer;
349	349	(2) annually set priorities for each grant program
350	350	established under this chapter; and
351	351	(3) consider the priorities set under Subdivision (2)
352	352	in awarding grants under this chapter.
353	353	(b) The oversight committee shall adopt a code of conduct
354	354	applicable to each oversight committee member, program integration
355	355	committee member, peer review committee member, and institute
356	356	employee that includes provisions prohibiting the member,
357	357	employee, or member's or employee's spouse from:
358	358	(1) accepting or soliciting any gift, favor, or
359	359	service that could reasonably influence the member or employee in
360	360	the discharge of official duties or that the member, employee, or
361	361	spouse knows or should know is being offered with the intent to
362	362	influence the member's or employee's official conduct;
363	363	(2) accepting employment or engaging in any business
364	364	or professional activity that would reasonably require or induce
365	365	the member or employee to disclose confidential information
366	366	acquired in the member's or employee's official position;
367	367	(3) accepting other employment or compensation that
368	368	could reasonably impair the member's or employee's independent
369	369	judgment in the performance of official duties;
370	370	(4) holding a personal investment or financial
371	371	interest that could reasonably create a substantial conflict
372	372	between the private interests and official duties of the member or
373	373	employee;
374	374	(5) intentionally or knowingly soliciting, accepting,
375	375	or agreeing to accept any benefit for exercising the member's
376	376	official powers or performing the member's or employee's official
377	377	duties in favor of another;
378	378	(6) directly or indirectly leasing to an entity that
379	379	receives a grant from the institute any property, capital
380	380	equipment, employee, or service;
381	381	(7) submitting a grant application for funding by the
382	382	institute;
383	383	(8) serving on the board of directors of an
384	384	organization established with a grant from the institute; or
385	385	(9) serving on the board of directors of a grant
386	386	recipient.
387	387	Sec. 101A.108. RULEMAKING AUTHORITY. The oversight
388	388	committee may adopt rules to administer this chapter.
389	389	Sec. 101A.109. FINANCIAL STATEMENT REQUIRED. Each
390	390	oversight committee member shall file with the chief compliance
391	391	officer a verified financial statement complying with Sections
392	392	572.022, 572.023, 572.024, 572.025, 572.0251, and 572.0252,
393	393	Government Code, as required of a state officer by Section 572.021
394	394	of that code.
395	395	SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
396	396	Sec. 101A.151. PEER REVIEW COMMITTEE. (a) The oversight
397	397	committee shall establish a peer review committee. The chief
398	398	executive officer, with approval by a simple majority of the
399	399	oversight committee members, shall appoint as members to the peer
400	400	review committee:
401	401	(1) experts in fields related to Alzheimer's disease
402	402	or related disorders, including research, health care, disease
403	403	treatment and prevention, and other study areas; and
404	404	(2) trained patient advocates who meet the
405	405	qualifications adopted under Subsection (c).
406	406	(b) The oversight committee shall adopt a written policy on
407	407	in-state or out-of-state residency requirements for peer review
408	408	committee members.
409	409	(c) The oversight committee shall adopt rules regarding the
410	410	qualifications required of a trained patient advocate for
411	411	membership on the peer review committee. The rules must require the
412	412	trained patient advocate to successfully complete science-based
413	413	training.
414	414	(d) A peer review committee member may receive an
415	415	honorarium. Subchapter B, Chapter 2254, Government Code, does not
416	416	apply to an honorarium the member receives under this chapter.
417	417	(e) The chief executive officer, in consultation with the
418	418	oversight committee, shall adopt a policy regarding honoraria and
419	419	document any change in the amount of honoraria paid to a peer review
420	420	committee member, including information explaining the basis for
421	421	that change.
422	422	(f) A peer review committee member may not serve on the
423	423	board of directors or other governing board of an entity receiving a
424	424	grant from the institute.
425	425	(g) Peer review committee members serve for terms as
426	426	determined by the chief executive officer.
427	427	Sec. 101A.152. PROGRAM INTEGRATION COMMITTEE. (a) The
428	428	institute shall establish a program integration committee to carry
429	429	out the duties assigned under this chapter.
430	430	(b) The program integration committee is composed of:
431	431	(1) the chief executive officer, who serves as the
432	432	presiding officer of the program integration committee;
433	433	(2) three senior-level institute employees
434	434	responsible for program policy and oversight, appointed by the
435	435	chief executive officer with the approval of a majority of the
436	436	oversight committee members; and
437	437	(3) the executive commissioner or the executive
438	438	commissioner's designee.
439	439	Sec. 101A.153. HIGHER EDUCATION ADVISORY COMMITTEE. (a)
440	440	The higher education advisory committee is composed of the
441	441	following members:
442	442	(1) two members appointed by the chancellor of The
443	443	University of Texas System to represent:
444	444	(A) The University of Texas Southwestern Medical
445	445	Center;
446	446	(B) The University of Texas Medical Branch at
447	447	Galveston;
448	448	(C) The University of Texas Health Science Center
449	449	at Houston;
450	450	(D) The University of Texas Health Science Center
451	451	at San Antonio; or
452	452	(E) The University of Texas Health Center at
453	453	Tyler;
454	454	(2) one member appointed by the chancellor of The
455	455	Texas A&M University System to represent:
456	456	(A) The Texas A&M University System Health
457	457	Science Center; or
458	458	(B) the teaching hospital for The Texas A&M
459	459	Health Science Center College of Medicine;
460	460	(3) one member appointed by the chancellor of the
461	461	Texas Tech University System to represent the Texas Tech University
462	462	Health Sciences Center;
463	463	(4) one member appointed by the chancellor of the
464	464	University of Houston System to represent the system;
465	465	(5) one member appointed by the chancellor of the
466	466	Texas State University System to represent the system;
467	467	(6) one member appointed by the chancellor of the
468	468	University of North Texas System to represent the system;
469	469	(7) one member appointed by the president of Baylor
470	470	College of Medicine; and
471	471	(8) one member appointed by the president of Rice
472	472	University.
473	473	(b) The higher education advisory committee shall advise
474	474	the oversight committee on issues, opportunities, the role of
475	475	higher education, and other subjects involving research on
476	476	Alzheimer's disease and related disorders.
477	477	Sec. 101A.154. AD HOC ADVISORY COMMITTEE. (a) The
478	478	oversight committee, as necessary, may create additional ad hoc
479	479	advisory committees composed of experts to advise the oversight
480	480	committee on issues relating to prevention of or research on
481	481	Alzheimer's disease and related disorders or other issues related
482	482	to Alzheimer's disease or related disorders.
483	483	(b) Ad hoc committee members serve for the terms the
484	484	oversight committee determines.
485	485	Sec. 101A.155. EXPENSES. Members of the higher education
486	486	advisory committee created under Section 101A.153 or an ad hoc
487	487	advisory committee created under Section 101A.154 serve without
488	488	compensation but are entitled to reimbursement for actual and
489	489	necessary expenses incurred in attending committee meetings or
490	490	performing other official duties authorized by the presiding
491	491	officer.
492	492	SUBCHAPTER E. ALZHEIMER'S PREVENTION AND RESEARCH FUND
493	493	Sec. 101A.201. ALZHEIMER'S PREVENTION AND RESEARCH FUND.
494	494	(a) In this subchapter, "fund" means the Alzheimer's Prevention
495	495	and Research Fund established under Section 68, Article III, Texas
496	496	Constitution. The fund is a special fund in the treasury outside
497	497	the general revenue fund to be administered by the institute. The
498	498	institute may use money in the fund as authorized by this chapter
499	499	without further legislative appropriation.
500	500	(b) The fund consists of:
501	501	(1) money transferred to the fund under Section 68,
502	502	Article III, Texas Constitution;
503	503	(2) money the legislature appropriates, credits, or
504	504	transfers to the fund;
505	505	(3) gifts and grants, including grants from the
506	506	federal government, and other donations received for the fund;
507	507	(4) patent, royalty, and license fees and other income
508	508	received under a contract executed as provided by Section 101A.304;
509	509	and
510	510	(5) investment earnings and interest earned on amounts
511	511	credited to the fund.
512	512	(c) The fund may only be used for the purposes authorized
513	513	under Section 68, Article III, Texas Constitution, including:
514	514	(1) the award of grants for research on or prevention
515	515	of Alzheimer's disease and related disorders and research
516	516	facilities in this state to conduct that research;
517	517	(2) the purchase of, subject to the institute's
518	518	approval, research facilities by or for a state agency or grant
519	519	recipient; and
520	520	(3) the operation of the institute.
521	521	Sec. 101A.202. ROLE OF TEXAS TREASURY SAFEKEEPING TRUST
522	522	COMPANY. (a) In this section, "trust company" means the Texas
523	523	Treasury Safekeeping Trust Company.
524	524	(b) The trust company shall invest the fund in accordance
525	525	with this section.
526	526	(c) The trust company shall hold and invest the fund, and
527	527	any accounts established in the fund, for the institute taking into
528	528	consideration the authorized uses of money in the fund. The fund
529	529	may be invested with the state treasury pool and may be pooled with
530	530	other state assets for investment purposes.
531	531	(d) The overall objective for the investment of the fund is
532	532	to maintain sufficient liquidity to meet the needs of the fund while
533	533	striving to preserve the purchasing power of the fund over a full
534	534	economic cycle.
535	535	(e) The trust company has any power necessary to accomplish
536	536	the purposes of managing and investing the fund's assets. In
537	537	managing the fund's assets, through procedures and subject to
538	538	restrictions the trust company considers appropriate, the trust
539	539	company may acquire, exchange, sell, supervise, manage, or retain
540	540	any kind of investment that a prudent investor, exercising
541	541	reasonable care, skill, and caution, would acquire or retain in
542	542	light of the purposes, terms, distribution requirements, and other
543	543	circumstances of the fund then prevailing, taking into
544	544	consideration the investment of all the fund's assets rather than a
545	545	single investment.
546	546	(f) The expenses of managing the fund shall be paid from the
547	547	fund.
548	548	(g) The trust company annually shall provide to the
549	549	institute and the oversight committee a written report on the
550	550	investments of the fund.
551	551	(h) The trust company shall adopt an appropriate written
552	552	investment policy for the fund. The trust company shall present the
553	553	investment policy to the investment advisory board established
554	554	under Section 404.028, Government Code. The investment advisory
555	555	board shall submit to the trust company recommendations regarding
556	556	the policy.
557	557	(i) The institute annually shall provide to the trust
558	558	company a forecast of the cash flows into and out of the fund. The
559	559	institute shall provide updates to the forecasts as appropriate to
560	560	ensure the trust company is able to achieve the objective specified
561	561	by Subsection (d).
562	562	(j) The trust company shall disburse money from the fund as
563	563	the institute directs. The institute shall direct disbursements
564	564	from the fund on a semiannual schedule specified by the institute
565	565	and not more frequently than twice in any state fiscal year.
566	566	Sec. 101A.203. AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
567	567	(a) A grant recipient awarded money from the fund may use the money
568	568	for research consistent with the purposes of this chapter and in
569	569	accordance with a contract between the grant recipient and the
570	570	institute.
571	571	(b) Except as otherwise provided by this section, grant
572	572	money awarded under this chapter may be used for authorized
573	573	expenses, including:
574	574	(1) honoraria;
575	575	(2) salaries and benefits;
576	576	(3) travel;
577	577	(4) conference fees and expenses;
578	578	(5) consumable supplies;
579	579	(6) operating expenses;
580	580	(7) contracted research and development;
581	581	(8) capital equipment; and
582	582	(9) construction or renovation of state or private
583	583	facilities.
584	584	(c) A grant recipient awarded money under this chapter for
585	585	research on Alzheimer's disease or related disorders may not spend
586	586	more than five percent of the money for indirect costs. In this
587	587	subsection, "indirect costs" means business expenses not readily
588	588	identified with a particular grant, contract, project, function, or
589	589	activity that are necessary for the general operation of the
590	590	organization or the performance of the organization's activities.
591	591	(d) Not more than five percent of the total amount of grant
592	592	money awarded under this chapter in a state fiscal year may be used
593	593	during that year for facility purchase, construction, remodel, or
594	594	renovation purposes, and those expenditures must benefit research
595	595	on Alzheimer's disease or related disorders.
596	596	(e) Not more than 10 percent of the total amount of grant
597	597	money awarded under this chapter in a state fiscal year may be used
598	598	during that year for prevention projects and strategies to mitigate
599	599	the incidence of Alzheimer's disease or related disorders.
600	600	SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
601	601	Sec. 101A.251. CONFLICT OF INTEREST. (a) The oversight
602	602	committee shall adopt conflict-of-interest rules, based on
603	603	standards applicable to members of scientific review committees of
604	604	the National Institutes of Health, to govern oversight committee
605	605	members, program integration committee members, peer review
606	606	committee members, and institute employees.
607	607	(b) An oversight committee member, program integration
608	608	committee member, peer review committee member, or institute
609	609	employee shall recuse the member or employee, as provided by
610	610	Section 101A.252(a), (b), or (c), as applicable, if the member or
611	611	employee, or a person who is related to the member or employee
612	612	within the second degree of affinity or consanguinity, has a
613	613	professional or financial interest in an entity awarded a grant or
614	614	applying for a grant from the institute.
615	615	(c) For purposes of Subsection (b), a person has a
616	616	professional interest in an entity awarded a grant or applying for a
617	617	grant from the institute if the person:
618	618	(1) is a member of the board of directors, another
619	619	governing board, or any committee of the entity, or of a foundation
620	620	or similar organization affiliated with the entity, during the same
621	621	grant cycle;
622	622	(2) serves as an elected or appointed officer of the
623	623	entity;
624	624	(3) is an employee of or is negotiating future
625	625	employment with the entity;
626	626	(4) represents the entity;
627	627	(5) is a professional associate of a primary member of
628	628	the entity's project team;
629	629	(6) is, or within the preceding six years has been, a
630	630	student, postdoctoral associate, or part of a laboratory research
631	631	group for a primary member of the entity's project team;
632	632	(7) is engaged or is actively planning to be engaged in
633	633	collaboration with a primary member of the entity's project team;
634	634	or
635	635	(8) has long-standing scientific differences or
636	636	disagreements with a primary member of the entity's project team,
637	637	and those differences or disagreements:
638	638	(A) are known to the professional community; and
639	639	(B) could be perceived as affecting objectivity.
640	640	(d) For purposes of Subsection (b), a person has a financial
641	641	interest in an entity awarded a grant or applying for a grant from
642	642	the institute if the person:
643	643	(1) directly or indirectly owns or controls an
644	644	ownership interest, including sharing in profits, proceeds, or
645	645	capital gains, in an entity awarded a grant or applying for a grant
646	646	from the institute; or
647	647	(2) could reasonably foresee that an action taken by
648	648	the oversight committee, the program integration committee, a peer
649	649	review committee, or the institute could result in a financial
650	650	benefit to the person.
651	651	(e) Nothing in this chapter limits the oversight
652	652	committee's authority to adopt additional conflict-of-interest
653	653	standards.
654	654	Sec. 101A.252. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
655	655	(a) If an oversight committee member or program integration
656	656	committee member has a conflict of interest described by Section
657	657	101A.251 regarding an application before the member for review or
658	658	other action, the member:
659	659	(1) shall provide written notice to the chief
660	660	executive officer and the presiding officer of the oversight
661	661	committee or the next ranking member of the committee if the
662	662	presiding officer has the conflict of interest;
663	663	(2) shall disclose the conflict of interest in an open
664	664	meeting of the oversight committee;
665	665	(3) shall recuse themselves from participating in the
666	666	review, discussion, deliberation, and vote on the application; and
667	667	(4) may not access information regarding the matter to
668	668	be decided.
669	669	(b) If a peer review committee member has a conflict of
670	670	interest described by Section 101A.251 regarding an application
671	671	before the member's committee for review or other action, the
672	672	member:
673	673	(1) shall provide written notice to the chief
674	674	executive officer of the conflict of interest;
675	675	(2) shall recuse themselves from participating in the
676	676	review, discussion, deliberation, and vote on the application; and
677	677	(3) may not access information regarding the matter to
678	678	be decided.
679	679	(c) If an institute employee has a conflict of interest
680	680	described by Section 101A.251 regarding an application before the
681	681	employee for review or other action, the employee:
682	682	(1) shall provide written notice to the chief
683	683	executive officer of the conflict of interest;
684	684	(2) shall recuse themselves from participating in the
685	685	review of the application; and
686	686	(3) may not access information regarding the matter to
687	687	be decided.
688	688	(d) An oversight committee member, program integration
689	689	committee member, peer review committee member, or institute
690	690	employee with a conflict of interest may seek a waiver as provided
691	691	by Section 101A.253.
692	692	(e) An oversight committee member, program integration
693	693	committee member, peer review committee member, or institute
694	694	employee who reports a potential conflict of interest or another
695	695	impropriety or self-dealing of the member or employee and who fully
696	696	complies with the recommendations of the institute's general
697	697	counsel and recusal requirements is considered in compliance with
698	698	the conflict-of-interest provisions of this chapter. The member or
699	699	employee is subject to other applicable laws, rules, requirements,
700	700	and prohibitions.
701	701	(f) An oversight committee member, program integration
702	702	committee member, peer review committee member, or institute
703	703	employee who intentionally violates this section is subject to
704	704	removal from further participation in the institute's grant review
705	705	process.
706	706	Sec. 101A.253. EXCEPTIONAL CIRCUMSTANCES REQUIRING
707	707	PARTICIPATION. The oversight committee shall adopt rules governing
708	708	the waiver of the conflict-of-interest requirements of this chapter
709	709	under exceptional circumstances for an oversight committee member,
710	710	program integration committee member, peer review committee
711	711	member, or institute employee. The rules must:
712	712	(1) authorize the chief executive officer or an
713	713	oversight committee member to propose granting a waiver by
714	714	submitting to the oversight committee's presiding officer a written
715	715	statement about the conflict of interest, the exceptional
716	716	circumstance requiring the waiver, and any proposed limitations to
717	717	the waiver;
718	718	(2) require a proposed waiver to be publicly reported
719	719	at an oversight committee meeting;
720	720	(3) require a majority vote of the oversight committee
721	721	members present and voting to grant a waiver;
722	722	(4) require any waiver granted to be included in the
723	723	annual report required by Section 101A.053; and
724	724	(5) require the institute to retain documentation of
725	725	each waiver granted.
726	726	Sec. 101A.254. INVESTIGATION OF UNREPORTED CONFLICTS OF
727	727	INTEREST. (a) An oversight committee member, program integration
728	728	committee member, peer review committee member, or institute
729	729	employee who becomes aware of an unreported potential conflict of
730	730	interest described by Section 101A.251 shall immediately notify the
731	731	chief executive officer of the potential conflict of interest. On
732	732	receipt of the notification, the chief executive officer shall
733	733	notify the institute's general counsel and the oversight
734	734	committee's presiding officer, who shall determine the nature and
735	735	extent of any unreported conflict.
736	736	(b) A grant applicant seeking an investigation regarding
737	737	whether a prohibited conflict of interest was not reported shall
738	738	file a written request with the chief executive officer. The
739	739	applicant must:
740	740	(1) include in the request all facts regarding the
741	741	alleged conflict of interest; and
742	742	(2) submit the request not later than the 30th day
743	743	after the date the chief executive officer presents to the
744	744	oversight committee final funding recommendations for the affected
745	745	grant cycle.
746	746	(c) On receipt of notification of an alleged conflict of
747	747	interest under Subsection (a) or (b), the institute's general
748	748	counsel shall:
749	749	(1) investigate the matter; and
750	750	(2) provide to the chief executive officer and the
751	751	oversight committee's presiding officer an opinion that includes:
752	752	(A) a statement of facts;
753	753	(B) a determination of whether a conflict of
754	754	interest or another impropriety or self-dealing exists; and
755	755	(C) if the opinion provides that a conflict of
756	756	interest or another impropriety or self-dealing exists,
757	757	recommendations for an appropriate course of action.
758	758	(d) If the conflict of interest, impropriety, or
759	759	self-dealing involves the oversight committee's presiding officer,
760	760	the institute's general counsel shall provide the opinion to the
761	761	next ranking oversight committee member who is not involved with
762	762	the conflict of interest, impropriety, or self-dealing.
763	763	(e) After receiving the opinion and consulting with the
764	764	oversight committee's presiding officer, the chief executive
765	765	officer shall take action regarding the recusal of the individual
766	766	from any discussion of or access to information related to the
767	767	conflict of interest or other recommended action related to the
768	768	impropriety or self-dealing. If the alleged conflict of interest,
769	769	impropriety, or self-dealing is held by, or is an act of, the chief
770	770	executive officer, the presiding officer of the oversight committee
771	771	shall take actions regarding the recusal or other action.
772	772	Sec. 101A.255. FINAL DETERMINATION OF UNREPORTED CONFLICT
773	773	OF INTEREST. (a) The chief executive officer or, if applicable,
774	774	the oversight committee's presiding officer shall make a
775	775	determination regarding the existence of an unreported conflict of
776	776	interest described by Section 101A.251 or other impropriety or
777	777	self-dealing. The determination must specify any actions to be
778	778	taken to address the conflict of interest, impropriety, or
779	779	self-dealing, including:
780	780	(1) reconsideration of the application; or
781	781	(2) referral of the application to another peer review
782	782	committee for review.
783	783	(b) The determination made under Subsection (a) is
784	784	considered final unless three or more oversight committee members
785	785	request that the issue be added to the agenda of the oversight
786	786	committee.
787	787	(c) The chief executive officer or, if applicable, the
788	788	oversight committee's presiding officer, shall provide to the grant
789	789	applicant requesting the investigation written notice of the final
790	790	determination, including any further actions to be taken.
791	791	(d) Unless specifically determined by the chief executive
792	792	officer or, if applicable, the presiding officer of the oversight
793	793	committee, or the oversight committee, the validity of an action
794	794	taken on a grant application is not affected by the fact that an
795	795	individual who failed to report a conflict of interest participated
796	796	in the action.
797	797	SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
798	798	Sec. 101A.301. PEER REVIEW PROCESS FOR GRANT AWARD. The
799	799	institute shall establish a peer review process to evaluate and
800	800	recommend all grants the oversight committee awards under this
801	801	chapter.
802	802	Sec. 101A.302. GRANT AWARD RULES AND PROCEDURES. (a) The
803	803	oversight committee shall adopt rules regarding the procedure for
804	804	awarding grants to an applicant under this chapter. The rules must
805	805	require:
806	806	(1) the peer review committee to score grant
807	807	applications and make recommendations to the program integration
808	808	committee and the oversight committee regarding the award of
809	809	grants, including providing a prioritized list that:
810	810	(A) ranks the grant applications in the order the
811	811	peer review committee determines applications should be funded; and
812	812	(B) includes information explaining each grant
813	813	applicant's qualification under the peer review committee's
814	814	standards for recommendation; and
815	815	(2) the program integration committee to submit to the
816	816	oversight committee a list of grant applications the program
817	817	integration committee by majority vote approved for recommendation
818	818	that:
819	819	(A) includes documentation on the factors the
820	820	program integration committee considered in making the
821	821	recommendations;
822	822	(B) is substantially based on the list submitted
823	823	by the peer review committee under Subdivision (1); and
824	824	(C) to the extent possible, gives priority to
825	825	applications including proposals that:
826	826	(i) may lead to immediate or long-term
827	827	medical and scientific breakthroughs in the areas of prevention or
828	828	treatment for Alzheimer's disease and related disorders;
829	829	(ii) strengthen and enhance fundamental
830	830	scientific research on Alzheimer's disease and related disorders;
831	831	(iii) ensure a comprehensive coordinated
832	832	approach to research on Alzheimer's disease and related disorders;
833	833	(iv) are interdisciplinary or
834	834	interinstitutional;
835	835	(v) align with state priorities and needs,
836	836	including priorities and needs outlined in other state agency
837	837	strategic plans, or that address federal or other major research
838	838	sponsors' priorities in scientific or technological research in the
839	839	fields of Alzheimer's disease and related disorders;
840	840	(vi) are matched with money provided by a
841	841	private or nonprofit entity or institution of higher education;
842	842	(vii) are collaborative between any
843	843	combination of private and nonprofit entities, public or private
844	844	agencies or institutions in this state, and public or private
845	845	institutions outside this state;
846	846	(viii) benefit the residents of this state,
847	847	including a demonstrable economic development benefit to this
848	848	state;
849	849	(ix) enhance research superiority at
850	850	institutions of higher education in this state by creating new
851	851	research superiority, attracting existing research superiority
852	852	from institutions outside this state and other research entities,
853	853	or attracting from outside this state additional researchers and
854	854	resources;
855	855	(x) expedite innovation and product
856	856	development, attract private sector entities to stimulate a
857	857	substantial increase in high-quality jobs, and increase higher
858	858	education applied science or technology research capabilities; and
859	859	(xi) address the goals of the research
860	860	plan.
861	861	(b) A peer review committee member may not attempt to use
862	862	the committee member's official position to influence a decision to
863	863	approve or award a grant or contract to the committee member's
864	864	employer.
865	865	(c) A program integration committee member may not discuss a
866	866	grant applicant recommendation with an oversight committee member
867	867	unless the program integration committee has submitted the list
868	868	required under Subsection (a)(2).
869	869	(d) Two-thirds of the oversight committee members present
870	870	and voting must vote to approve each grant award recommendation of
871	871	the program integration committee. If the oversight committee does
872	872	not approve a grant award recommendation of the program integration
873	873	committee, a statement explaining the reasons the recommendation
874	874	was not followed must be included in the minutes of the meeting.
875	875	(e) The oversight committee may not award more than $300
876	876	million in grants under this chapter in a state fiscal year.
877	877	(f) The oversight committee may not award a grant to an
878	878	applicant who has made a gift or grant to the institute, an
879	879	oversight committee member, or an institute employee on or after
880	880	January 1, 2026. This section does not apply to gifts, fees,
881	881	honoraria, or other items also excepted under Section 36.10, Penal
882	882	Code.
883	883	Sec. 101A.303. MULTIYEAR PROJECTS. (a) The oversight
884	884	committee may approve the award of grant money for a multiyear
885	885	project.
886	886	(b) The oversight committee shall specify the total amount
887	887	of money approved to fund the multiyear project. For purposes of
888	888	this chapter, the total amount is considered to have been awarded in
889	889	the state fiscal year the peer review committee approved the
890	890	project. The institute shall disburse only the money to be spent
891	891	during that fiscal year. The institute shall disburse the
892	892	remaining grant money as the money is needed in each subsequent
893	893	state fiscal year.
894	894	Sec. 101A.304. CONTRACT TERMS. (a) Before disbursing
895	895	grant money awarded under this chapter, the institute shall execute
896	896	a written contract with the grant recipient. The contract shall:
897	897	(1) specify that except for awards to state agencies
898	898	or public institutions of higher education, if all or any part of
899	899	the grant amount is used to build a capital improvement:
900	900	(A) the state retains a lien or other interest in
901	901	the capital improvement in proportion to the percentage of the
902	902	grant amount used to pay for the capital improvement; and
903	903	(B) the grant recipient shall, if the capital
904	904	improvement is sold:
905	905	(i) repay to this state the grant money used
906	906	to pay for the capital improvement, with interest at the rate and
907	907	according to the other terms provided by the contract; and
908	908	(ii) share with this state a proportionate
909	909	amount of any profit realized from the sale;
910	910	(2) specify that if the grant recipient has not used
911	911	awarded grant money for the purposes for which the grant was
912	912	intended, the recipient shall repay that grant amount and any
913	913	related interest applicable under the contract to this state at the
914	914	agreed rate and on the agreed terms;
915	915	(3) specify that if the grant recipient fails to meet
916	916	the terms and conditions of the contract, the institute may
917	917	terminate the contract using the written process prescribed in the
918	918	contract and require the recipient to repay the awarded grant money
919	919	and any related interest applicable under the contract to this
920	920	state at the agreed rate and on the agreed terms;
921	921	(4) include terms relating to intellectual property
922	922	rights consistent with the standards developed by the oversight
923	923	committee under Section 101A.305;
924	924	(5) require, in accordance with Subsection (b), the
925	925	grant recipient to dedicate an amount of matching money equal to
926	926	one-half of the amount of the grant awarded and specify the amount
927	927	of matching money to be dedicated;
928	928	(6) specify the period in which the grant award must be
929	929	spent; and
930	930	(7) include the specific deliverables of the project
931	931	that is the subject of the grant proposal.
932	932	(b) Before the institute may disburse grant money, the grant
933	933	recipient must certify the recipient has available an unexpended
934	934	amount of money equal to one-half of the grant amount dedicated to
935	935	the research specified in the grant proposal. The institute shall
936	936	adopt rules specifying a grant recipient's obligations under this
937	937	chapter. At a minimum, the rules must:
938	938	(1) allow an institution of higher education or a
939	939	private or independent institution of higher education, as those
940	940	terms are defined by Section 61.003, Education Code, or a research
941	941	institute or center affiliated with the institution, to credit
942	942	toward the recipient's matching money the dollar amount equivalent
943	943	to the difference between the indirect cost rate authorized by the
944	944	federal government for research grants awarded to the recipient and
945	945	the indirect cost rate authorized by Section 101A.203(c);
946	946	(2) specify that:
947	947	(A) the recipient of more than one grant award
948	948	under this chapter may provide matching money certification at an
949	949	institutional level;
950	950	(B) the recipient of a multiyear grant award may
951	951	yearly certify matching money; and
952	952	(C) grant money may not be disbursed to the
953	953	recipient until the annual certification of the matching money has
954	954	been approved;
955	955	(3) specify that money for certification purposes may
956	956	include:
957	957	(A) federal money;
958	958	(B) the fair market value of drug development
959	959	support provided to the recipient by the National Institutes of
960	960	Health or other similar programs;
961	961	(C) this state's money;
962	962	(D) other states' money; and
963	963	(E) nongovernmental money, including money from
964	964	private sources, foundation grants, gifts, and donations;
965	965	(4) specify that the following items may not be used
966	966	for certification purposes:
967	967	(A) in-kind costs;
968	968	(B) volunteer services provided to the
969	969	recipient;
970	970	(C) noncash contributions;
971	971	(D) the recipient's preexisting real estate,
972	972	including buildings, facilities, and land;
973	973	(E) deferred giving, including a charitable
974	974	remainder annuity trust, charitable remainder unitrust, or pooled
975	975	income fund; or
976	976	(F) any other items the institute determines;
977	977	(5) require the recipient's certification to be
978	978	included in the grant award contract;
979	979	(6) specify that the recipient's failure to provide
980	980	certification serves as grounds for terminating the grant award
981	981	contract;
982	982	(7) require the recipient to maintain adequate
983	983	documentation supporting the source and use of the money required
984	984	by this subsection and to provide documentation to the institute on
985	985	request; and
986	986	(8) require the institute to establish a procedure to
987	987	annually review the documentation supporting the source and use of
988	988	money reported in the required certification.
989	989	(c) The institute shall establish a policy on advance
990	990	payments to grant recipients.
991	991	(d) The oversight committee shall adopt rules to administer
992	992	this section.
993	993	Sec. 101A.305. PATENT ROYALTIES AND LICENSE REVENUES PAID
994	994	TO STATE. (a) The oversight committee shall establish standards
995	995	requiring all grant awards to be subject to an intellectual
996	996	property agreement that allows this state to collect royalties,
997	997	income, and other benefits, including interest or proceeds
998	998	resulting from securities and equity ownership, realized as a
999	999	result of projects undertaken with grant money awarded under this
1000	1000	chapter.
1001	1001	(b) In determining this state's interest in any
1002	1002	intellectual property rights, the oversight committee shall
1003	1003	balance the opportunity of this state to benefit from the patents,
1004	1004	royalties, licenses, and other benefits that result from basic
1005	1005	research, therapy development, and clinical trials with the need to
1006	1006	ensure that essential medical research is not unreasonably hindered
1007	1007	by the intellectual property agreement and that the agreement does
1008	1008	not unreasonably remove the incentive of the individual researcher,
1009	1009	research team, or institution.
1010	1010	(c) The oversight committee may authorize the institute to
1011	1011	execute a contract with one or more qualified third parties for
1012	1012	assistance with the management, accounting, and disposition of this
1013	1013	state's interest in securities, equities, royalties, income, and
1014	1014	other benefits realized from grant money awarded under this
1015	1015	chapter. The institute shall implement practices and procedures
1016	1016	for the management, accounting, and disposition of securities,
1017	1017	equities, royalties, income, and other benefits the institute
1018	1018	determines are in this state's best interest.
1019	1019	Sec. 101A.306. PREFERENCE FOR TEXAS SUPPLIERS. In a good
1020	1020	faith effort to achieve a goal of more than 50 percent of purchases
1021	1021	from suppliers in this state, the oversight committee shall
1022	1022	establish standards to ensure grant recipients purchase goods and
1023	1023	services from suppliers in this state to the extent reasonably
1024	1024	possible.
1025	1025	Sec. 101A.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The
1026	1026	oversight committee shall establish standards to ensure grant
1027	1027	recipients purchase goods and services from historically
1028	1028	underutilized businesses as defined by Section 2161.001,
1029	1029	Government Code, and any other applicable state law.
1030	1030	Sec. 101A.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.
1031	1031	(a) The institute shall require as a condition of a grant awarded
1032	1032	under this chapter that the grant recipient submit to regular
1033	1033	inspection reviews of the grant project by institute employees to
1034	1034	ensure compliance with the terms of the grant contract and ongoing
1035	1035	progress, including the scientific merit of the research.
1036	1036	(b) The chief executive officer shall report at least
1037	1037	annually to the oversight committee on the progress and continued
1038	1038	merit of the projects awarded grants by the institute.
1039	1039	Sec. 101A.309. MEDICAL AND RESEARCH ETHICS. A project
1040	1040	awarded a grant under this chapter must comply with all applicable
1041	1041	federal and state laws regarding the conduct of the research or a
1042	1042	prevention project.
1043	1043	Sec. 101A.310. PUBLIC INFORMATION; CONFIDENTIAL
1044	1044	INFORMATION. (a) The following information is public information
1045	1045	and may be disclosed under Chapter 552, Government Code:
1046	1046	(1) a grant applicant's name and address;
1047	1047	(2) the amount of money requested in an applicant's
1048	1048	grant proposal;
1049	1049	(3) the type of research on Alzheimer's disease or
1050	1050	related disorders to be addressed under a grant proposal; and
1051	1051	(4) any other information the institute designates
1052	1052	with the consent of a grant applicant.
1053	1053	(b) To protect the actual or potential value of information
1054	1054	submitted to the institute by an applicant for or recipient of a
1055	1055	grant under this chapter, the following information submitted by
1056	1056	the applicant or recipient is confidential and is not subject to
1057	1057	disclosure under Chapter 552, Government Code, or any other law:
1058	1058	(1) all information, other than the information
1059	1059	described under Subsection (a), contained in a grant application,
1060	1060	peer review evaluation, award contract, or progress report relating
1061	1061	to a product, device, or process, the application or use of the
1062	1062	product, device, or process, and all technological and scientific
1063	1063	information, including computer programs, developed wholly or
1064	1064	partly by the applicant or recipient, regardless of whether
1065	1065	patentable or capable of being registered under copyright or
1066	1066	trademark laws, that has a potential for being sold, traded, or
1067	1067	licensed for a fee; and
1068	1068	(2) the plans, specifications, blueprints, and
1069	1069	designs, including related proprietary information, of a
1070	1070	scientific research and development facility.
1071	1071	(c) The following information is confidential and not
1072	1072	subject to disclosure under Chapter 552, Government Code:
1073	1073	(1) information that directly or indirectly reveals
1074	1074	the identity of an individual who reports fraud, waste, or abuse of
1075	1075	state resources to the institute's compliance program office, seeks
1076	1076	guidance from the office, or participates in an investigation
1077	1077	conducted under the compliance program;
1078	1078	(2) information that directly or indirectly reveals
1079	1079	the identity of an individual who is alleged to have or may have
1080	1080	planned, initiated, or participated in activities specified in a
1081	1081	report submitted to the office if, after completing an
1082	1082	investigation, the office determines the report to be
1083	1083	unsubstantiated or without merit; and
1084	1084	(3) other information collected or produced in a
1085	1085	compliance program investigation if releasing the information
1086	1086	would interfere with an ongoing compliance investigation.
1087	1087	(d) Subsection (c) does not apply to information related to
1088	1088	an individual who consents to the information's disclosure.
1089	1089	(e) Information made confidential or excepted from public
1090	1090	disclosure by this section may be made available, on request and in
1091	1091	compliance with applicable laws and procedures, to the following:
1092	1092	(1) a law enforcement agency or prosecutor;
1093	1093	(2) a governmental agency responsible for
1094	1094	investigating the matter specified in a compliance report,
1095	1095	including the Texas Workforce Commission civil rights division or
1096	1096	the Equal Employment Opportunity Commission; or
1097	1097	(3) a committee member or institute employee who is
1098	1098	responsible under institutional policy for a compliance program
1099	1099	investigation or for a review of a compliance program
1100	1100	investigation.
1101	1101	(f) A disclosure under Subsection (e) is not a voluntary
1102	1102	disclosure for purposes of Section 552.007, Government Code.
1103	1103	(g) The institute shall post on the institute's Internet
1104	1104	website records that pertain specifically to any gift, grant, or
1105	1105	other consideration provided to the institute, an institute
1106	1106	employee, or an oversight committee member, in the employee's or
1107	1107	member's official capacity. The posted information must include
1108	1108	each donor's name and the amount and date of the donor's donation.
1109	1109	This section is not applicable to gifts, fees, honoraria, or other
1110	1110	items also excepted under Section 36.10, Penal Code.
1111	1111	SECTION 2. Section 51.955(c), Education Code, is amended to
1112	1112	read as follows:
1113	1113	(c) Subsection (b)(1) does not apply to a research contract
1114	1114	between an institution of higher education and the Cancer
1115	1115	Prevention and Research Institute of Texas or Alzheimer's
1116	1116	Prevention and Research Institute of Texas.
1117	1117	SECTION 3. Section 61.003(6), Education Code, is amended to
1118	1118	read as follows:
1119	1119	(6) "Other agency of higher education" means The
1120	1120	University of Texas System, System Administration; The University
1121	1121	of Texas at El Paso Museum; Texas Epidemic Public Health Institute
1122	1122	at The University of Texas Health Science Center at Houston; The
1123	1123	Texas A&M University System, Administrative and General Offices;
1124	1124	Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
1125	1125	Rodent and Predatory Animal Control Service (a part of the Texas A&M
1126	1126	AgriLife Extension Service); Texas A&M Engineering Experiment
1127	1127	Station (including the Texas A&M Transportation Institute); Texas
1128	1128	A&M Engineering Extension Service; Texas A&M Forest Service; Texas
1129	1129	Division of Emergency Management; Texas Tech University Museum;
1130	1130	Texas State University System, System Administration; Sam Houston
1131	1131	Memorial Museum; Panhandle-Plains Historical Museum; Cotton
1132	1132	Research Committee of Texas; Texas Water Resources Institute; Texas
1133	1133	A&M Veterinary Medical Diagnostic Laboratory; Alzheimer's
1134	1134	Prevention and Research Institute of Texas; and any other unit,
1135	1135	division, institution, or agency which shall be so designated by
1136	1136	statute or which may be established to operate as a component part
1137	1137	of any public senior college or university, or which may be so
1138	1138	classified as provided in this chapter.
1139	1139	SECTION 4. Section 572.003(c), Government Code, is amended
1140	1140	to read as follows:
1141	1141	(c) The term means a member of:
1142	1142	(1) the Public Utility Commission of Texas;
1143	1143	(2) the Texas Commission on Environmental Quality;
1144	1144	(3) the Texas Alcoholic Beverage Commission;
1145	1145	(4) the Finance Commission of Texas;
1146	1146	(5) the Texas Facilities Commission;
1147	1147	(6) the Texas Board of Criminal Justice;
1148	1148	(7) the board of trustees of the Employees Retirement
1149	1149	System of Texas;
1150	1150	(8) the Texas Transportation Commission;
1151	1151	(9) the Texas Department of Insurance;
1152	1152	(10) the Parks and Wildlife Commission;
1153	1153	(11) the Public Safety Commission;
1154	1154	(12) the Texas Ethics Commission;
1155	1155	(13) the State Securities Board;
1156	1156	(14) the Texas Water Development Board;
1157	1157	(15) the governing board of a public senior college or
1158	1158	university as defined by Section 61.003, Education Code, or of The
1159	1159	University of Texas Southwestern Medical Center, The University of
1160	1160	Texas Medical Branch at Galveston, The University of Texas Health
1161	1161	Science Center at Houston, The University of Texas Health Science
1162	1162	Center at San Antonio, The University of Texas M. D. Anderson Cancer
1163	1163	Center, The University of Texas Health Science Center at Tyler,
1164	1164	University of North Texas Health Science Center at Fort Worth,
1165	1165	Texas Tech University Health Sciences Center, Texas State Technical
1166	1166	College--Harlingen, Texas State Technical College--Marshall, Texas
1167	1167	State Technical College--Sweetwater, or Texas State Technical
1168	1168	College--Waco;
1169	1169	(16) the Texas Higher Education Coordinating Board;
1170	1170	(17) the Texas Workforce Commission;
1171	1171	(18) the board of trustees of the Teacher Retirement
1172	1172	System of Texas;
1173	1173	(19) the Credit Union Commission;
1174	1174	(20) the School Land Board;
1175	1175	(21) the board of the Texas Department of Housing and
1176	1176	Community Affairs;
1177	1177	(22) the Texas Racing Commission;
1178	1178	(23) the State Board of Dental Examiners;
1179	1179	(24) the Texas Medical Board;
1180	1180	(25) the Board of Pardons and Paroles;
1181	1181	(26) the Texas State Board of Pharmacy;
1182	1182	(27) the Department of Information Resources
1183	1183	governing board;
1184	1184	(28) the board of the Texas Department of Motor
1185	1185	Vehicles;
1186	1186	(29) the Texas Real Estate Commission;
1187	1187	(30) the board of directors of the State Bar of Texas;
1188	1188	(31) the Bond Review Board;
1189	1189	(32) the Health and Human Services Commission;
1190	1190	(33) the Texas Funeral Service Commission;
1191	1191	(34) the board of directors of a river authority
1192	1192	created under the Texas Constitution or a statute of this state;
1193	1193	(35) the Texas Lottery Commission; [or]
1194	1194	(36) the Cancer Prevention and Research Institute of
1195	1195	Texas; or
1196	1196	(37) the Alzheimer's Prevention and Research Institute
1197	1197	of Texas.
1198	1198	SECTION 5. (a) Not later than December 31, 2025, the
1199	1199	appropriate appointing authority shall appoint the members to the
1200	1200	Alzheimer's Prevention and Research Institute of Texas Oversight
1201	1201	Committee as required by Section 101A.101, Health and Safety Code,
1202	1202	as added by this Act. The oversight committee may not act until a
1203	1203	majority of the appointed members have taken office.
1204	1204	(b) Notwithstanding Section 101A.101, Health and Safety
1205	1205	Code, as added by this Act, in making the initial appointments under
1206	1206	that section, the governor, lieutenant governor, and speaker of the
1207	1207	house of representatives shall, as applicable, designate one member
1208	1208	of the Alzheimer's Prevention and Research Institute of Texas
1209	1209	appointed by that person to serve a term expiring January 31, 2027,
1210	1210	one member appointed by that person to serve a term expiring January
1211	1211	31, 2029, and one member appointed by that person to serve a term
1212	1212	expiring January 31, 2031.
1213	1213	SECTION 6. If the voters approve the constitutional
1214	1214	amendment proposed by the 89th Legislature, Regular Session, 2025,
1215	1215	providing for the establishment of the Alzheimer's Prevention and
1216	1216	Research Institute of Texas, establishing the Alzheimer's
1217	1217	Prevention and Research Fund to provide money for research on and
1218	1218	prevention and treatment of Alzheimer's disease and related
1219	1219	disorders in this state, and transferring to that fund $3 billion
1220	1220	from state general revenue, the Alzheimer's Prevention and Research
1221	1221	Institute of Texas established by Chapter 101A, Health and Safety
1222	1222	Code, as added by this Act, is eligible for funding to be deposited
1223	1223	under the authority of Section 68, Article III, Texas Constitution,
1224	1224	for the institute to engage in any activities serving the purposes
1225	1225	of that constitutional provision.
1226	1226	SECTION 7. This Act takes effect December 1, 2025, but only
1227	1227	if the constitutional amendment proposed by the 89th Legislature,
1228	1228	Regular Session, 2025, providing for the establishment of the
1229	1229	Alzheimer's Prevention and Research Institute of Texas,
1230	1230	establishing the Alzheimer's Prevention and Research Fund to
1231	1231	provide money for research on and prevention and treatment of
1232	1232	Alzheimer's disease and related disorders in this state, and
1233	1233	transferring to that fund $3 billion from state general revenue is
1234	1234	approved by the voters. If that amendment is not approved by the
1235	1235	voters, this Act has no effect.