Texas 2025 - 89th Regular

Texas House Bill HB185 Compare Versions

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Old	New	Differences
1	1	89R241 MPF-F
2	2	By: Thompson H.B. No. 185
3	3
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of the Mental Health and Brain Research
10	10	Institute of Texas.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle H, Title 3, Education Code, is amended
13	13	by adding Chapter 157 to read as follows:
14	14	CHAPTER 157. MENTAL HEALTH AND BRAIN RESEARCH INSTITUTE OF TEXAS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 157.001. DEFINITIONS. In this chapter:
17	17	(1) "Institute" means the Mental Health and Brain
18	18	Research Institute of Texas.
19	19	(2) "Oversight committee" means the Mental Health and
20	20	Brain Research Institute of Texas Oversight Committee.
21	21	(3) "Peer review committee" means the Mental Health
22	22	and Brain Research Institute of Texas Peer Review Committee.
23	23	(4) “Program integration committee” means the Mental
24	24	Health and Brain Research Institute of Texas Program Integration
25	25	Committee.
26	26	(5) "Research plan" means the Texas Mental Health and
27	27	Brain Health Research Plan developed by the institute.
28	28	Sec. 157.002. PURPOSES. The Mental Health and Brain
29	29	Research Institute of Texas is established to:
30	30	(1) create and expedite innovation in mental health
31	31	and brain research to improve the health of residents of this state,
32	32	enhance the potential for a medical or scientific breakthrough in
33	33	mental health and brain-related sciences and biomedical research,
34	34	and enhance the mental health and brain research superiority of
35	35	this state;
36	36	(2) attract, create, or expand research capabilities
37	37	of eligible institutions of higher education and other public or
38	38	private entities by awarding grants to promote a substantial
39	39	increase in mental health and brain research, strategies for
40	40	prevention of mental health issues and brain-related diseases,
41	41	mental health and brain health initiatives, and the creation of
42	42	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 mental
46	46	health and brain health research.
47	47	Sec. 157.003. STATE AUDITOR. Nothing in this chapter
48	48	limits the authority of the state auditor under Chapter 321,
49	49	Government Code, or other law.
50	50	SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
51	51	Sec. 157.051. POWERS AND DUTIES. (a) The institute:
52	52	(1) may award grants to institutions of learning,
53	53	advanced medical research facilities, public or private persons,
54	54	and collaborations in this state to further the purposes of this
55	55	chapter and Section 68, Article III, Texas Constitution, including:
56	56	(A) implementation of the research plan;
57	57	(B) research, including translational and
58	58	clinical research, into:
59	59	(i) the causes of, the means of prevention
60	60	of, the treatment and rehabilitation of, and the cures for mental
61	61	health issues and human brain-related diseases, syndromes,
62	62	disorders, dysfunctions, injuries, developmental issues,
63	63	neurological health issues, behavioral health issues, and
64	64	substance use disorders and other addictions; and
65	65	(ii) any other issues affecting mental
66	66	health and the human brain, including issues that directly or
67	67	indirectly affect or are affected by mental health or the brain or
68	68	brain health, such as the gut microbiome, nutrition, and the spinal
69	69	cord or nervous system, that the peer review committee and the
70	70	oversight committee approve;
71	71	(C) research, including translational research,
72	72	to develop therapies, protocols, medical pharmaceuticals, or
73	73	procedures for the cure or substantial mitigation of all types of
74	74	human brain diseases and disorders;
75	75	(D) support for institutions of learning,
76	76	advanced medical research facilities, public or private persons,
77	77	and collaborations in this state in conducting the research subject
78	78	to the grant award, including in developing programs to address
79	79	access to advanced treatment of mental health issues and brain
80	80	diseases or disorders;
81	81	(E) facilities, equipment, supplies, salaries,
82	82	benefits, and other costs related to mental health and brain
83	83	research; and
84	84	(F) prevention programs and strategies to
85	85	mitigate the incidence of detrimental health impacts on mental
86	86	health or the brain;
87	87	(2) shall collaborate with relevant state agencies,
88	88	coordinating councils, and consortiums to enhance mental health and
89	89	brain-related health care and research;
90	90	(3) shall establish the appropriate standards and
91	91	oversight bodies to ensure money authorized under this chapter is
92	92	properly used for the purposes of this chapter;
93	93	(4) shall employ necessary staff to provide
94	94	administrative support to the institute;
95	95	(5) may contract with another state agency to share
96	96	the cost of administrative services, including grant accounting,
97	97	grant monitoring, technical and document management of the grant
98	98	application review process, legal services, and compliance
99	99	services;
100	100	(6) shall monitor grant contracts authorized by this
101	101	chapter and ensure each grant recipient complies with the terms and
102	102	conditions of the contract;
103	103	(7) shall ensure all grant proposals comply with this
104	104	chapter and rules adopted under this chapter before the proposals
105	105	are submitted to the oversight committee for approval;
106	106	(8) shall establish procedures to document compliance
107	107	by the institute, its employees, and its committee members
108	108	appointed under this chapter with all laws and rules governing the
109	109	peer review process and conflicts of interest; and
110	110	(9) shall create a statewide research and clinical
111	111	data registry for mental health and brain research.
112	112	(b) The institute shall implement and monitor the research
113	113	plan and revise the plan as necessary.
114	114	Sec. 157.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
115	115	OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
116	116	hire a chief executive officer. The chief executive officer shall
117	117	perform the duties required by this chapter and the duties
118	118	designated by the oversight committee. The chief executive officer
119	119	must have a demonstrated ability to lead and develop academic,
120	120	commercial, and governmental partnerships and coalitions.
121	121	(b) The institute shall employ a chief compliance officer to
122	122	monitor compliance with this chapter and rules adopted under this
123	123	chapter and to report incidents of noncompliance to the oversight
124	124	committee.
125	125	(c) The chief executive officer may hire any other officer
126	126	position the chief executive officer determines necessary for
127	127	efficient operation of the institute.
128	128	Sec. 157.053. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
129	129	later than January 31 of each year, the institute shall prepare and
130	130	submit to the governor, the lieutenant governor, the speaker of the
131	131	house of representatives, and the standing committee of each house
132	132	of the legislature with primary jurisdiction over institute matters
133	133	and post on the institute's Internet website a report on:
134	134	(1) the institute's activities under this chapter;
135	135	(2) a list of recipients of grants awarded during the
136	136	preceding state fiscal year and the grant amount awarded to each
137	137	recipient;
138	138	(3) any research accomplishments a grant recipient or
139	139	the recipient's partners achieved during the preceding state fiscal
140	140	year;
141	141	(4) an overview summary of the institute's most recent
142	142	audited financial statement;
143	143	(5) an assessment of the relationship between the
144	144	institute's grants and the strategy of its research program;
145	145	(6) a statement of the institute's strategic research
146	146	plans;
147	147	(7) an estimate of the financial cost to this state of
148	148	mental health issues and brain disease during the most recent state
149	149	fiscal year for which data is available, including the amounts this
150	150	state spent related to mental health issues and brain disease
151	151	through the Medicaid program, the Teacher Retirement System of
152	152	Texas, and the Employees Retirement System of Texas;
153	153	(8) a statement of the institute's compliance program
154	154	activities, including any proposed legislation or other
155	155	recommendations identified through the activities;
156	156	(9) for the preceding state fiscal year:
157	157	(A) a list of any conflicts of interest requiring
158	158	recusal under this chapter or rules adopted under this chapter;
159	159	(B) any unreported conflicts of interest
160	160	confirmed by an investigation conducted under Section 157.254,
161	161	including any institute actions regarding an unreported conflict of
162	162	interest and subsequent investigation; and
163	163	(C) any waivers granted through the process
164	164	established under Section 157.253; and
165	165	(10) the institute's future direction.
166	166	Sec. 157.054. INDEPENDENT FINANCIAL AUDIT. (a) The
167	167	institute shall annually commission a certified public accounting
168	168	firm to perform an independent financial audit of its activities.
169	169	(b) The oversight committee shall review the annual
170	170	financial audit and the financial practices of the institute.
171	171	Sec. 157.055. GRANT RECORDS; AUDIT OF ELECTRONIC GRANT
172	172	MANAGEMENT SYSTEM. (a) The institute shall maintain complete
173	173	records of:
174	174	(1) the review of each grant application submitted to
175	175	the institute, including the score the peer review committee
176	176	assigns to each reviewed grant application in accordance with rules
177	177	adopted under Section 157.302;
178	178	(2) each grant recipient's financial reports,
179	179	including the amount of matching money dedicated to the research
180	180	specified for the grant award;
181	181	(3) each grant recipient's progress reports;
182	182	(4) the identity of each principal investor and owner
183	183	of each grant recipient as provided by institute rules to determine
184	184	any conflict of interest; and
185	185	(5) the institute's review of the grant recipient's
186	186	financial reports and progress reports.
187	187	(b) The institute shall keep each record described by
188	188	Subsection (a) until at least the 15th anniversary of the record's
189	189	date of issuance.
190	190	(c) The institute shall have prepared periodic audits of any
191	191	electronic grant management system used to maintain records of
192	192	grant applications and grant awards. The institute shall timely
193	193	address each weakness identified in an audit of the system.
194	194	Sec. 157.056. GIFTS AND GRANTS. The institute may solicit
195	195	and accept gifts and grants from any source for the purposes of this
196	196	chapter.
197	197	Sec. 157.057. PROHIBITED OFFICE LOCATION. An institute
198	198	employee may not have an office located in a facility owned by an
199	199	entity receiving or applying to receive money from the institute.
200	200	Sec. 157.058. COMPLIANCE PROGRAM; INVESTIGATIONS. (a) The
201	201	institute shall establish a compliance program operating under the
202	202	direction of the institute's chief compliance officer to monitor
203	203	compliance with this chapter and rules adopted under this chapter
204	204	and for reporting incidents of noncompliance to the oversight
205	205	committee.
206	206	(b) The chief compliance officer or the officer's designee
207	207	shall attend and observe meetings of the peer review committee and
208	208	the program integration committee to ensure compliance with this
209	209	chapter and rules adopted under this chapter.
210	210	(c) The chief compliance officer shall submit a written
211	211	report to the oversight committee confirming that each grant
212	212	application recommendation included on the list submitted by the
213	213	program integration committee under Section 157.302(a)(2) complies
214	214	with the oversight committee's rules regarding grant award
215	215	procedures. The report must contain all relevant information on:
216	216	(1) the peer review process for the grant application;
217	217	(2) the score the peer review committee assigns to the
218	218	application;
219	219	(3) adherence to the conflict-of-interest
220	220	notification and recusal process; and
221	221	(4) confirmation that a recommended grant applicant
222	222	did not make any gift or grant prohibited by Section 157.302(f).
223	223	(d) To ensure each grant recipient complies with reporting
224	224	requirements included in the grant contract and the rules adopted
225	225	under this chapter, the institute shall implement a system to:
226	226	(1) track the dates on which grant recipient reports
227	227	are due and are received by the institute; and
228	228	(2) monitor the status of any required report a grant
229	229	recipient does not timely submit to the institute.
230	230	(e) The chief compliance officer shall:
231	231	(1) monitor compliance with this section and the
232	232	status of any required report a grant recipient does not timely
233	233	submit to the institute; and
234	234	(2) notify the general counsel of the institute and
235	235	the oversight committee of a grant recipient who has not complied
236	236	with the grant contract reporting requirements to allow the
237	237	institute to suspend or terminate the contract as warranted.
238	238	(f) The chief compliance officer shall establish procedures
239	239	for investigating allegations of fraud, waste, or abuse of state
240	240	resources against oversight committee members, institute employees
241	241	or contractors, grant applicants, or grant recipients. The
242	242	procedures must include:
243	243	(1) private access to the compliance program office,
244	244	such as a telephone hotline; and
245	245	(2) to the extent possible, preservation of the
246	246	confidentiality of communications and the anonymity of a person
247	247	submitting a compliance report related to fraud, waste, or abuse or
248	248	participating in a compliance investigation.
249	249	SUBCHAPTER C. OVERSIGHT COMMITTEE
250	250	Sec. 157.101. COMPOSITION OF OVERSIGHT COMMITTEE. (a) The
251	251	oversight committee is the governing body of the institute.
252	252	(b) The oversight committee is composed of the following
253	253	nine members:
254	254	(1) three members appointed by the governor;
255	255	(2) three members appointed by the lieutenant
256	256	governor; and
257	257	(3) three members appointed by the speaker of the
258	258	house of representatives.
259	259	(c) The oversight committee members must represent the
260	260	geographic and cultural diversity of this state.
261	261	(d) In making appointments to the oversight committee, the
262	262	governor, lieutenant governor, and speaker of the house of
263	263	representatives:
264	264	(1) must each appoint at least one person who is a
265	265	physician or a scientist with extensive experience working with
266	266	mental health issues or brain disease or in the field of public
267	267	health; and
268	268	(2) should attempt to include persons affected by
269	269	mental health issues or brain disease or family members or
270	270	caregivers of mental health or brain disease patients.
271	271	(e) A person may not be an oversight committee member if the
272	272	person or the person's spouse:
273	273	(1) is employed by or participates in the management
274	274	of an entity receiving money from the institute;
275	275	(2) owns or controls, directly or indirectly, an
276	276	interest in an entity receiving money from the institute; or
277	277	(3) uses or receives a substantial amount of tangible
278	278	goods, services, or money from the institute, other than
279	279	reimbursement authorized by this chapter for oversight committee
280	280	membership, attendance, or expenses.
281	281	Sec. 157.102. REMOVAL. (a) It is a ground for removal from
282	282	the oversight committee that a member:
283	283	(1) is ineligible for membership under Section
284	284	157.101(e);
285	285	(2) cannot, because of illness or disability,
286	286	discharge the member's duties for a substantial part of the member's
287	287	term; or
288	288	(3) is absent from more than half of the regularly
289	289	scheduled oversight committee meetings the member is eligible to
290	290	attend during a calendar year without an excuse approved by a
291	291	majority vote of the committee.
292	292	(b) The validity of an action of the oversight committee is
293	293	not affected by the fact the action is taken when a ground for
294	294	removal of a committee member exists.
295	295	(c) If the chief executive officer has knowledge that a
296	296	potential ground for removal exists, the chief executive officer
297	297	shall notify the presiding officer of the oversight committee of
298	298	the potential ground. The presiding officer shall then notify the
299	299	appointing authority and the attorney general that a potential
300	300	ground for removal exists. If the potential ground for removal
301	301	involves the presiding officer, the chief executive officer shall
302	302	notify the next highest ranking officer of the oversight committee,
303	303	who shall then notify the appointing authority and the attorney
304	304	general that a potential ground for removal exists.
305	305	Sec. 157.103. 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 official 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 official 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 official shall
314	314	appoint the successor not later than the 30th day after the date the
315	315	vacancy occurs.
316	316	Sec. 157.104. OFFICERS. (a) The oversight committee shall
317	317	elect a presiding officer and assistant presiding officer from
318	318	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 officers of the committee; 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. 157.105. 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 meetings of the
333	333	committee or performing other official duties authorized by the
334	334	presiding officer.
335	335	Sec. 157.106. MEETINGS. (a) The oversight committee shall
336	336	hold at least one public meeting each quarter of the calendar year,
337	337	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 157.305; and
344	344	(2) an ongoing compliance investigation into issues
345	345	related to fraud, waste, or abuse of state resources.
346	346	Sec. 157.107. 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, the
357	357	employee, or the 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) making personal investments or holding a financial
371	371	interest that could reasonably create a substantial conflict
372	372	between the member's or employee's private interest and the member's
373	373	or employee's official duties;
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) leasing, directly or indirectly, any property,
379	379	capital equipment, employee, or service to any entity that receives
380	380	a grant from the institute;
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. 157.108. RULEMAKING AUTHORITY. The oversight
388	388	committee may adopt rules to administer this chapter.
389	389	Sec. 157.109. FINANCIAL STATEMENT REQUIRED. Each oversight
390	390	committee member shall file with the chief compliance officer a
391	391	verified financial statement complying with Sections 572.022
392	392	through 572.0252, Government Code, as required of a state officer
393	393	by Section 572.021, Government Code.
394	394	SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
395	395	Sec. 157.151. PEER REVIEW COMMITTEE. (a) The oversight
396	396	committee shall establish a peer review committee. The chief
397	397	executive officer, with approval by a simple majority of the
398	398	oversight committee members, shall appoint as members of the peer
399	399	review committee experts in fields related to mental health or the
400	400	brain, including research, health care, disease treatment and
401	401	prevention, and other study areas and trained patient advocates who
402	402	meet the qualifications adopted under Subsection (c).
403	403	(b) The oversight committee shall adopt a written policy on
404	404	in-state or out-of-state residency requirements for peer review
405	405	committee members.
406	406	(c) The oversight committee shall adopt rules regarding the
407	407	qualifications required of a trained patient advocate committee
408	408	member for a peer review committee. The rules must require the
409	409	trained patient advocate to successfully complete science-based
410	410	training.
411	411	(d) A peer review committee member may receive an honorarium
412	412	and may be reimbursed for travel expenses incurred in conducting
413	413	committee business. Subchapter B, Chapter 2254, Government Code,
414	414	does not apply to an honorarium the member receives under this
415	415	chapter.
416	416	(e) The chief executive officer, in consultation with the
417	417	oversight committee, shall adopt a policy regarding honoraria and
418	418	document any change in the amount of honoraria paid to a peer review
419	419	committee member, including information explaining the basis for
420	420	that change.
421	421	(f) A peer review committee member appointed under this
422	422	chapter may not serve on the board of directors or other governing
423	423	board of an entity receiving a grant from the institute.
424	424	(g) Peer review committee members serve for terms as
425	425	determined by the chief executive officer.
426	426	Sec. 157.152. PROGRAM INTEGRATION COMMITTEE. (a) The
427	427	institute shall establish a program integration committee with the
428	428	duties assigned under this chapter.
429	429	(b) The program integration committee is composed of:
430	430	(1) the institute's chief executive officer, who shall
431	431	serve as the presiding officer of the program integration
432	432	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 of the Health and Human
438	438	Services Commission or the executive commissioner's designee.
439	439	Sec. 157.153. HIGHER EDUCATION ADVISORY COMMITTEE. (a)
440	440	The higher education advisory committee is composed of the
441	441	following members:
442	442	(1) one member appointed by the president of Baylor
443	443	College of Medicine;
444	444	(2) one member appointed by the president of Texas A&M
445	445	Health;
446	446	(3) one member appointed by the president of Texas
447	447	Tech University Health Sciences Center;
448	448	(4) one member appointed by the president of Texas
449	449	Tech University Health Sciences Center at El Paso;
450	450	(5) one member appointed by the president of The
451	451	University of Texas Southwestern Medical Center;
452	452	(6) one member appointed by the president of The
453	453	University of Texas Medical Branch at Galveston;
454	454	(7) one member appointed by the president of The
455	455	University of Texas Health Science Center at Houston;
456	456	(8) one member appointed by the president of The
457	457	University of Texas Health Science Center at San Antonio;
458	458	(9) one member appointed by the president of The
459	459	University of Texas at Tyler Health Science Center;
460	460	(10) one member appointed by the dean of Dell Medical
461	461	School at The University of Texas at Austin;
462	462	(11) one member appointed by the president of The
463	463	University of Texas M. D. Anderson Cancer Center;
464	464	(12) one member appointed by the dean of The
465	465	University of Texas Rio Grande Valley School of Medicine;
466	466	(13) one member appointed by the president of
467	467	University of North Texas Health Science Center at Fort Worth;
468	468	(14) one member appointed by the president of Rice
469	469	University;
470	470	(15) one member appointed by the dean of University of
471	471	Houston College of Medicine; and
472	472	(16) one member appointed by the dean of Sam Houston
473	473	State University College of Osteopathic Medicine.
474	474	(b) The oversight committee by majority vote may increase
475	475	the membership of the higher education advisory committee to
476	476	include appointees representing institutions of higher education
477	477	not listed in Subsection (a).
478	478	(c) The higher education advisory committee shall advise
479	479	the oversight committee on issues, opportunities, the role of
480	480	higher education, and other subjects involving mental health or
481	481	brain research.
482	482	Sec. 157.154. AD HOC ADVISORY COMMITTEE. (a) The oversight
483	483	committee, as necessary, may create additional ad hoc advisory
484	484	committees of experts to advise the oversight committee on issues
485	485	relating to mental health research, brain research, brain health,
486	486	brain-related diseases, spinal cord injuries, traumatic brain
487	487	injuries, mental and behavioral health issues, including substance
488	488	abuse disorders and other addictions, or other brain- or
489	489	neurological-related issues.
490	490	(b) Ad hoc committee members serve for the terms determined
491	491	by the oversight committee.
492	492	Sec. 157.155. EXPENSES. Members of the higher education
493	493	advisory committee or any ad hoc advisory committee appointed under
494	494	this subchapter serve without compensation but are entitled to
495	495	reimbursement for actual and necessary expenses incurred in
496	496	attending committee meetings or performing other official duties
497	497	authorized by the presiding officer, including travel expenses.
498	498	SUBCHAPTER E. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH FUND
499	499	Sec. 157.201. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH
500	500	FUND. (a) In this subchapter, "fund" means the Mental Health and
501	501	Brain Institute Research Fund established under Section 68, Article
502	502	III, Texas Constitution. The fund is a special fund in the treasury
503	503	outside the general revenue fund to be administered by the
504	504	institute. The institute may use money in the fund as authorized by
505	505	this chapter without further legislative appropriation.
506	506	(b) The fund consists of:
507	507	(1) money transferred to the fund under Section 68,
508	508	Article III, Texas Constitution;
509	509	(2) money the legislature appropriates, credits, or
510	510	transfers to the fund;
511	511	(3) gifts and grants, including grants from the
512	512	federal government, and other donations received for the fund;
513	513	(4) patent, royalty, and license fees and other income
514	514	received under a contract entered into as provided by Section
515	515	157.304; and
516	516	(5) investment earnings and interest earned on amounts
517	517	credited to the fund.
518	518	(c) The fund may only be used for the purposes authorized
519	519	under Section 68, Article III, Texas Constitution, including:
520	520	(1) the award of grants for mental health and brain
521	521	research, research facilities, and research opportunities:
522	522	(A) for the prevention, treatment, and
523	523	rehabilitation of mental and behavioral health diseases and other
524	524	issues and substance use disorders and other addictions, and the
525	525	mitigation of the incidence of detrimental health impacts on mental
526	526	health or the brain; and
527	527	(B) to develop therapies, protocols, medical
528	528	pharmaceuticals, or procedures for the cure or substantial
529	529	mitigation of brain diseases or disorders;
530	530	(2) the purchase, construction, or renovation,
531	531	subject to approval by the institute, of research facilities by or
532	532	for a state agency or grant recipient; and
533	533	(3) the operation of the institute.
534	534	Sec. 157.202. ROLE OF TEXAS TREASURY SAFEKEEPING TRUST
535	535	COMPANY. (a) In this section, "trust company" means the Texas
536	536	Treasury Safekeeping Trust Company.
537	537	(b) The trust company shall invest the fund in accordance
538	538	with this section.
539	539	(c) The trust company shall hold and invest the fund, and
540	540	any accounts established in the fund, for the institute, taking
541	541	into consideration the authorized uses of money in the fund. The
542	542	fund may be invested with the state treasury pool and may be pooled
543	543	with other state assets for purposes of investment.
544	544	(d) The overall objective for the investment of the fund is
545	545	to maintain sufficient liquidity to meet the needs of the fund while
546	546	striving to preserve the purchasing power of the fund over a full
547	547	economic cycle.
548	548	(e) The trust company has any power necessary to accomplish
549	549	the purposes of managing and investing the assets of the fund. In
550	550	managing the assets of the fund, through procedures and subject to
551	551	restrictions the trust company considers appropriate, the trust
552	552	company may acquire, exchange, sell, supervise, manage, or retain
553	553	any kind of investment that a prudent investor, exercising
554	554	reasonable care, skill, and caution, would acquire or retain in
555	555	light of the purposes, terms, distribution requirements, and other
556	556	circumstances of the fund then prevailing, taking into
557	557	consideration the investment of all the assets of the fund rather
558	558	than a single investment.
559	559	(f) The expenses of managing the fund shall be paid from the
560	560	fund.
561	561	(g) The trust company annually shall provide to the
562	562	institute and the oversight committee a written report on the
563	563	investments of the fund.
564	564	(h) The trust company shall adopt an appropriate written
565	565	investment policy for the fund. The trust company shall present the
566	566	investment policy to the investment advisory board established
567	567	under Section 404.028, Government Code. The investment advisory
568	568	board shall submit to the trust company recommendations regarding
569	569	the policy.
570	570	(i) The institute annually shall provide to the trust
571	571	company a forecast of the cash flows into and out of the fund. The
572	572	institute shall provide updates to the forecasts as appropriate to
573	573	ensure the trust company is able to achieve the objective specified
574	574	by Subsection (d).
575	575	(j) The trust company shall disburse money from the fund as
576	576	directed by the institute. The institute shall direct disbursements
577	577	from the fund on a semiannual schedule specified by the institute
578	578	and not more frequently than twice in any state fiscal year.
579	579	Sec. 157.203. AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
580	580	(a) A grant recipient awarded money from the fund may use the money
581	581	for research consistent with the purposes of this chapter and in
582	582	accordance with a contract between the grant recipient and the
583	583	institute.
584	584	(b) Except as otherwise provided by this section, grant
585	585	money awarded under this chapter may be used for authorized
586	586	expenses, including:
587	587	(1) honoraria;
588	588	(2) salaries and benefits;
589	589	(3) travel;
590	590	(4) conference fees and expenses;
591	591	(5) consumable supplies;
592	592	(6) operating expenses;
593	593	(7) contracted research and development;
594	594	(8) capital equipment;
595	595	(9) construction or renovation of state or private
596	596	facilities; and
597	597	(10) reimbursement for participation costs incurred
598	598	by brain cancer clinical trial participants, including
599	599	transportation, lodging, and any costs reimbursed under the cancer
600	600	clinical trial participation program established under Chapter 51,
601	601	Health and Safety Code.
602	602	(c) A grant recipient awarded money under this chapter for
603	603	mental health or brain disease research may not spend more than five
604	604	percent of the money for indirect costs. For purposes of this
605	605	subsection, "indirect costs" means the expenses of conducting
606	606	business that are not readily identified with a particular grant,
607	607	contract, project, function, or activity, but are necessary for the
608	608	general operation of the organization or the performance of the
609	609	organization's activities.
610	610	(d) Not more than five percent of the total amount of grant
611	611	money awarded under this chapter in a state fiscal year may be used
612	612	for facility purchase, construction, remodel, or renovation
613	613	purposes, and those expenditures must benefit mental health or
614	614	brain research.
615	615	(e) Not more than 10 percent of the total amount of grant
616	616	money awarded under this chapter in a state fiscal year may be used
617	617	during that year for prevention projects and strategies to mitigate
618	618	the incidence of detrimental impacts on mental health or the brain.
619	619	SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
620	620	Sec. 157.251. CONFLICT OF INTEREST. (a) The oversight
621	621	committee shall adopt conflict-of-interest rules, based on
622	622	standards applicable to members of scientific review committees of
623	623	the National Institutes of Health, to govern members of the
624	624	oversight committee, the program integration committee, the peer
625	625	review committee, and institute employees.
626	626	(b) An oversight committee member, program integration
627	627	committee member, peer review committee member, or institute
628	628	employee shall recuse themselves, as provided by Section
629	629	157.252(a), (b), or (c), as applicable, if the member or employee,
630	630	or a person who is related to the member or employee within the
631	631	second degree of affinity or consanguinity, has a professional or
632	632	financial interest in an entity awarded a grant or applying for a
633	633	grant from the institute.
634	634	(c) A person has a professional interest in an entity
635	635	awarded a grant or applying for a grant from the institute if the
636	636	person:
637	637	(1) is a member of the board of directors, another
638	638	governing board, or any committee of the entity, or of a foundation
639	639	or similar organization affiliated with the entity, during the same
640	640	grant cycle;
641	641	(2) serves as an elected or appointed officer of the
642	642	entity;
643	643	(3) is an employee of or is negotiating future
644	644	employment with the entity;
645	645	(4) represents the entity;
646	646	(5) is a professional associate of a primary member of
647	647	the entity's project team;
648	648	(6) is, or within the preceding six years has been, a
649	649	student, postdoctoral associate, or part of a laboratory research
650	650	group for a primary member of the entity's project team;
651	651	(7) is engaged or is actively planning to be engaged in
652	652	collaboration with a primary member of the entity's project team;
653	653	or
654	654	(8) has long-standing scientific differences or
655	655	disagreements with a primary member of the entity's project team,
656	656	and those differences or disagreements:
657	657	(A) are known to the professional community; and
658	658	(B) could be perceived as affecting objectivity.
659	659	(d) A person has a financial interest in an entity awarded a
660	660	grant or applying for a grant from the institute if the person:
661	661	(1) owns or controls, directly or indirectly, an
662	662	ownership interest, including sharing in profits, proceeds, or
663	663	capital gains, in an entity awarded a grant or applying for a grant
664	664	from the institute; or
665	665	(2) could reasonably foresee that an action taken by
666	666	the oversight committee, the program integration committee, a peer
667	667	review committee, or the institute could result in a financial
668	668	benefit to the person.
669	669	(e) Nothing in this chapter limits the authority of the
670	670	oversight committee to adopt additional conflict-of-interest
671	671	standards.
672	672	Sec. 157.252. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
673	673	(a) If an oversight committee member or program integration
674	674	committee member has a conflict of interest described by Section
675	675	157.251 regarding an application before the member for review or
676	676	other action, the member shall:
677	677	(1) provide written notice to the chief executive
678	678	officer and the presiding officer of the oversight committee or the
679	679	next ranking member of the committee if the presiding officer has
680	680	the conflict of interest;
681	681	(2) disclose the conflict of interest in an open
682	682	meeting of the oversight committee; and
683	683	(3) recuse themselves from participating in the
684	684	review, discussion, deliberation, and vote on the application and
685	685	from accessing information regarding the matter to be decided.
686	686	(b) If a peer review committee member has a conflict of
687	687	interest described by Section 157.251 regarding an application
688	688	before the member's committee for review or other action, the
689	689	member shall:
690	690	(1) provide written notice to the chief executive
691	691	officer of the conflict of interest; and
692	692	(2) recuse themselves from participating in the
693	693	review, discussion, deliberation, and vote on the application and
694	694	from accessing information regarding the matter to be decided.
695	695	(c) If an institute employee has a conflict of interest
696	696	described by Section 157.251 regarding an application before the
697	697	employee for review or other action, the employee:
698	698	(1) shall provide written notice to the chief
699	699	executive officer of the conflict of interest;
700	700	(2) shall recuse themselves from participating in the
701	701	review of the application; and
702	702	(3) may not access information regarding the matter to
703	703	be decided.
704	704	(d) An oversight committee member, program integration
705	705	committee member, peer review committee member, or institute
706	706	employee with a conflict of interest may seek a waiver as provided
707	707	by Section 157.253.
708	708	(e) An oversight committee member, program integration
709	709	committee member, peer review committee member, or institute
710	710	employee who reports a potential conflict of interest or another
711	711	impropriety or self-dealing of the member or employee and who fully
712	712	complies with the recommendations of the general counsel and
713	713	recusal requirements is considered in compliance with the
714	714	conflict-of-interest provisions of this chapter. The member or
715	715	employee is subject to other applicable laws, rules, requirements,
716	716	and prohibitions.
717	717	(f) An oversight committee member, program integration
718	718	committee member, peer review committee member, or institute
719	719	employee who intentionally violates this section is subject to
720	720	removal from further participation in the institute's grant review
721	721	process.
722	722	Sec. 157.253. EXCEPTIONAL CIRCUMSTANCES REQUIRING
723	723	PARTICIPATION. The oversight committee shall adopt rules governing
724	724	the waiver of the conflict-of-interest requirements of this chapter
725	725	under exceptional circumstances for an oversight committee member,
726	726	program integration committee member, peer review committee
727	727	member, or institute employee. The rules must:
728	728	(1) authorize the chief executive officer or an
729	729	oversight committee member to propose granting a waiver by
730	730	submitting to the presiding officer of the oversight committee a
731	731	written statement about the conflict of interest, the exceptional
732	732	circumstance requiring the waiver, and any proposed limitations to
733	733	the waiver;
734	734	(2) require a proposed waiver to be publicly reported
735	735	at a meeting of the oversight committee;
736	736	(3) require a majority vote of the oversight committee
737	737	members present and voting to grant a waiver;
738	738	(4) require any waiver granted to be reported annually
739	739	to the lieutenant governor, the speaker of the house of
740	740	representatives, the governor, and the standing committee of each
741	741	house of the legislature with primary jurisdiction over institute
742	742	matters; and
743	743	(5) require the institute to retain documentation of
744	744	each waiver granted.
745	745	Sec. 157.254. INVESTIGATION OF UNREPORTED CONFLICTS OF
746	746	INTEREST. (a) An oversight committee member, a program
747	747	integration committee member, a peer review committee member, or an
748	748	institute employee who becomes aware of a potential conflict of
749	749	interest described by Section 157.251 that has not been reported
750	750	shall immediately notify the chief executive officer of the
751	751	potential conflict of interest. On notification, the chief
752	752	executive officer shall notify the presiding officer of the
753	753	oversight committee and the general counsel, who shall determine
754	754	the nature and extent of any unreported conflict.
755	755	(b) A grant applicant seeking an investigation regarding
756	756	whether a prohibited conflict of interest was not reported shall
757	757	file a written request with the institute's chief executive
758	758	officer. The applicant must:
759	759	(1) include in the request all facts regarding the
760	760	alleged conflict of interest; and
761	761	(2) submit the request not later than the 30th day
762	762	after the date the chief executive officer presents final funding
763	763	recommendations for the affected grant cycle to the oversight
764	764	committee.
765	765	(c) On notification of an alleged conflict of interest under
766	766	Subsection (a) or (b), the institute's general counsel shall:
767	767	(1) investigate the matter; and
768	768	(2) provide to the chief executive officer and
769	769	presiding officer of the oversight committee an opinion that
770	770	includes:
771	771	(A) a statement of facts;
772	772	(B) a determination of whether a conflict of
773	773	interest or another impropriety or self-dealing exists; and
774	774	(C) if the opinion provides that a conflict of
775	775	interest or another impropriety or self-dealing exists,
776	776	recommendations for an appropriate course of action.
777	777	(d) If the conflict of interest, impropriety, or
778	778	self-dealing involves the presiding officer of the oversight
779	779	committee, the institute's general counsel shall provide the
780	780	opinion to the next ranking oversight committee member who is not
781	781	involved with the conflict of interest, impropriety, or
782	782	self-dealing.
783	783	(e) After receiving the opinion and consulting with the
784	784	presiding officer of the oversight committee, the chief executive
785	785	officer shall take action regarding the recusal of the individual
786	786	from any discussion of or access to information related to the
787	787	conflict of interest or other recommended action related to the
788	788	impropriety or self-dealing. If the alleged conflict of interest,
789	789	impropriety, or self-dealing is held by, or is an act of, the chief
790	790	executive officer, the presiding officer of the oversight committee
791	791	shall take actions regarding the recusal or other action.
792	792	Sec. 157.255. FINAL DETERMINATION OF UNREPORTED CONFLICT OF
793	793	INTEREST. (a) The chief executive officer or, if applicable, the
794	794	presiding officer of the oversight committee shall make a
795	795	determination regarding the existence of an unreported conflict of
796	796	interest described by Section 157.251 or other impropriety or
797	797	self-dealing. The determination must specify any actions to be
798	798	taken to address the conflict of interest, impropriety, or
799	799	self-dealing, including:
800	800	(1) reconsideration of the application; or
801	801	(2) referral of the application to another peer review
802	802	committee for review.
803	803	(b) The determination made under Subsection (a) is
804	804	considered final unless three or more oversight committee members
805	805	request that the issue be added to the agenda of the oversight
806	806	committee.
807	807	(c) The chief executive officer or, if applicable, the
808	808	presiding officer of the oversight committee, shall provide written
809	809	notice of the final determination, including any further actions to
810	810	be taken, to the grant applicant requesting the investigation.
811	811	(d) Unless specifically determined by the chief executive
812	812	officer or, if applicable, the presiding officer of the oversight
813	813	committee, or the oversight committee, the validity of an action
814	814	taken on a grant application is not affected by the fact that an
815	815	individual who failed to report a conflict of interest participated
816	816	in the action.
817	817	SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
818	818	Sec. 157.301. PEER REVIEW PROCESS FOR GRANT AWARD. The
819	819	institute shall establish a peer review process to evaluate and
820	820	recommend all grants the oversight committee awards under this
821	821	chapter.
822	822	Sec. 157.302. GRANT AWARD RULES AND PROCEDURES. (a) The
823	823	oversight committee shall adopt rules regarding the procedure for
824	824	awarding grants to an applicant under this chapter. The rules must
825	825	require:
826	826	(1) the peer review committee to score grant
827	827	applications and make recommendations to the program integration
828	828	committee and the oversight committee regarding the award of
829	829	grants, including providing a prioritized list that:
830	830	(A) ranks the grant applications in the order the
831	831	peer review committee determines applications should be funded; and
832	832	(B) includes information explaining each grant
833	833	applicant's qualification under the peer review committee's
834	834	standards for recommendation; and
835	835	(2) the program integration committee to submit to the
836	836	oversight committee a list of grant applications the program
837	837	integration committee by majority vote approved for recommendation
838	838	that:
839	839	(A) includes documentation on the factors the
840	840	program integration committee considered in making the
841	841	recommendations;
842	842	(B) is substantially based on the list submitted
843	843	by the peer review committee under Subdivision (1); and
844	844	(C) to the extent possible, gives priority to
845	845	proposals that:
846	846	(i) may lead to immediate or long-term
847	847	medical and scientific breakthroughs in the areas of prevention,
848	848	treatment, or cures for mental health issues or brain disease;
849	849	(ii) strengthen and enhance fundamental
850	850	science in mental health or brain research;
851	851	(iii) ensure a comprehensive coordinated
852	852	approach to mental health or brain research;
853	853	(iv) are interdisciplinary or
854	854	interinstitutional;
855	855	(v) align with state priorities and needs,
856	856	including priorities and needs outlined in other state agency
857	857	strategic plans, or address federal or other major research
858	858	sponsors' priorities in scientific or technological fields in the
859	859	area of mental health or brain research;
860	860	(vi) are matched with money provided by a
861	861	private or nonprofit entity or institution of higher education;
862	862	(vii) are collaborative between any
863	863	combination of private and nonprofit entities, public or private
864	864	agencies or institutions in this state, and public or private
865	865	institutions outside this state;
866	866	(viii) benefit the residents of this state,
867	867	including a demonstrable economic development benefit to this
868	868	state;
869	869	(ix) enhance research superiority at
870	870	institutions of higher education in this state by creating new
871	871	research superiority, attracting existing research superiority
872	872	from institutions outside this state and other research entities,
873	873	or attracting from outside this state additional researchers and
874	874	resources;
875	875	(x) expedite innovation and product
876	876	development, attract private sector entities to stimulate a
877	877	substantial increase in high-quality jobs, and increase higher
878	878	education applied science or technology research capabilities; and
879	879	(xi) address the goals of the research
880	880	plan.
881	881	(b) A member of a peer review committee may not attempt to
882	882	use the committee member's official position to influence a
883	883	decision to approve or award a grant or contract to the committee
884	884	member's employer.
885	885	(c) A program integration committee member may not discuss a
886	886	grant applicant recommendation with an oversight committee member
887	887	unless the program integration committee has fulfilled the
888	888	requirements of Subsection (a)(2).
889	889	(d) Two-thirds of the oversight committee members present
890	890	and voting must vote to approve each grant award recommendation of
891	891	the program integration committee. If the oversight committee does
892	892	not approve a grant award recommendation of the program integration
893	893	committee, a statement explaining the reasons the recommendation
894	894	was not followed must be included in the minutes of the meeting.
895	895	(e) The oversight committee may not award more than $300
896	896	million in grants under this chapter in a state fiscal year.
897	897	(f) The oversight committee may not award a grant to an
898	898	applicant who has made a gift or grant to the institute, an
899	899	oversight committee member, or an institute employee on or after
900	900	January 1, 2026. This section does not apply to gifts, fees,
901	901	honoraria, or other items also excepted under Section 36.10, Penal
902	902	Code.
903	903	Sec. 157.303. MULTIYEAR PROJECTS. (a) The oversight
904	904	committee may approve the award of grant money for a multiyear
905	905	project.
906	906	(b) The oversight committee shall specify the total amount
907	907	of money approved to fund the multiyear project. For purposes of
908	908	this chapter, the total amount is considered to have been awarded in
909	909	the state fiscal year the peer review committee approved the
910	910	project. The institute shall distribute only the money to be
911	911	expended during that fiscal year. The institute shall distribute
912	912	the remaining grant money as the money is needed in each subsequent
913	913	state fiscal year.
914	914	Sec. 157.304. CONTRACT TERMS. (a) Before disbursing a
915	915	grant awarded under this chapter, the institute shall execute a
916	916	written contract with the grant recipient. The contract shall:
917	917	(1) specify that except for awards to state agencies
918	918	or public institutions of higher education, if all or any portion of
919	919	the grant amount is used to build a capital improvement:
920	920	(A) the state retains a lien or other interest in
921	921	the capital improvement in proportion to the percentage of the
922	922	grant amount used to pay for the capital improvement; and
923	923	(B) the grant recipient shall, if the capital
924	924	improvement is sold:
925	925	(i) repay to this state the grant money used
926	926	to pay for the capital improvement, with interest at the rate and
927	927	according to the other terms provided by the contract; and
928	928	(ii) share with this state a proportionate
929	929	amount of any profit realized from the sale;
930	930	(2) specify that if the grant recipient has not used
931	931	awarded grant money for the purposes for which the grant was
932	932	intended, the recipient shall repay that grant amount and any
933	933	related interest applicable under the contract to this state at the
934	934	agreed rate and on the agreed terms;
935	935	(3) specify that if the grant recipient fails to meet
936	936	the terms and conditions of the contract, the institute may
937	937	terminate the contract using the written process prescribed in the
938	938	contract and require the recipient to repay the awarded grant money
939	939	and any related interest applicable under the contract to this
940	940	state at the agreed rate and on the agreed terms;
941	941	(4) include terms relating to intellectual property
942	942	rights consistent with the standards developed by the oversight
943	943	committee under Section 157.305;
944	944	(5) require, in accordance with Subsection (b), the
945	945	grant recipient to dedicate an amount of matching money equal to
946	946	one-half of the amount of the grant awarded and specify the amount
947	947	of matching money to be dedicated;
948	948	(6) specify the period in which the grant award must be
949	949	spent; and
950	950	(7) include the specific deliverables of the project
951	951	that is the subject of the grant proposal.
952	952	(b) Before the institute may disburse grant money, the grant
953	953	recipient must certify the recipient has available an unexpended
954	954	amount of money equal to one-half of the grant money and has
955	955	dedicated that available money to the research subject to the grant
956	956	proposal. The institute shall adopt rules specifying a grant
957	957	recipient's obligations under this subchapter. At a minimum, the
958	958	rules must:
959	959	(1) allow a recipient institution of higher education
960	960	or private or independent institution of higher education, as those
961	961	terms are defined by Section 61.003, or research institute or
962	962	center affiliated with the institution, to credit toward the
963	963	recipient's matching money the dollar amount equivalent to the
964	964	difference between the indirect cost rate authorized by the federal
965	965	government for research grants awarded to the recipient and the
966	966	indirect cost rate authorized by Section 157.203(c);
967	967	(2) specify that:
968	968	(A) a grant recipient of more than one grant
969	969	award under this chapter may provide matching money certification
970	970	at an institutional level;
971	971	(B) the recipient of a multiyear grant award may
972	972	yearly certify matching money; and
973	973	(C) grant money may not be disbursed to the grant
974	974	recipient until the annual certification of the matching money has
975	975	been approved;
976	976	(3) specify that money for certification purposes may
977	977	include:
978	978	(A) federal funds;
979	979	(B) the fair market value of drug development
980	980	support provided to the recipient by the National Institutes of
981	981	Health or other similar programs;
982	982	(C) funds of this state;
983	983	(D) funds of other states; and
984	984	(E) nongovernmental funds, including private
985	985	funds, foundation grants, gifts, and donations;
986	986	(4) specify that the following items may not be used
987	987	for certification purposes:
988	988	(A) in-kind costs;
989	989	(B) volunteer services provided to a grant
990	990	recipient;
991	991	(C) noncash contributions;
992	992	(D) preexisting real estate of the grant
993	993	recipient, including buildings, facilities, and land;
994	994	(E) deferred giving, including a charitable
995	995	remainder annuity trust, charitable remainder unitrust, or pooled
996	996	income fund; or
997	997	(F) any other items determined by the institute;
998	998	(5) require the grant recipient's certification to be
999	999	included in the grant award contract;
1000	1000	(6) specify that a grant recipient's failure to
1001	1001	provide certification serves as grounds for terminating the grant
1002	1002	award contract;
1003	1003	(7) require a grant recipient to maintain adequate
1004	1004	documentation supporting the source and use of the money required
1005	1005	by this subsection and to provide documentation to the institute on
1006	1006	request; and
1007	1007	(8) require the institute to establish a procedure to
1008	1008	annually review the documentation supporting the source and use of
1009	1009	money reported in the required certification.
1010	1010	(c) The institute shall establish a policy on advance
1011	1011	payments to grant recipients.
1012	1012	(d) The oversight committee shall adopt rules to administer
1013	1013	this section.
1014	1014	Sec. 157.305. PATENT ROYALTIES AND LICENSE REVENUES PAID TO
1015	1015	STATE. (a) The oversight committee shall establish standards
1016	1016	requiring all grant awards to be subject to an intellectual
1017	1017	property agreement that allows this state to collect royalties,
1018	1018	income, and other benefits, including interest or proceeds
1019	1019	resulting from securities and equity ownership, realized as a
1020	1020	result of projects undertaken with money awarded under this
1021	1021	chapter.
1022	1022	(b) In determining this state's interest in any
1023	1023	intellectual property rights, the oversight committee shall
1024	1024	balance the opportunity of this state to benefit from the patents,
1025	1025	royalties, licenses, and other benefits that result from basic
1026	1026	research, therapy development, and clinical trials with the need to
1027	1027	ensure that essential medical research is not unreasonably hindered
1028	1028	by the intellectual property agreement and that the agreement does
1029	1029	not unreasonably remove the incentive of the individual researcher,
1030	1030	research team, or institution.
1031	1031	(c) The oversight committee may authorize the institute to
1032	1032	enter into a contract with one or more qualified third parties for
1033	1033	assistance with the management, accounting, and disposition of this
1034	1034	state's interest in securities, equities, royalties, income, and
1035	1035	other benefits realized from money awarded under this chapter. The
1036	1036	institute shall implement practices and procedures for the
1037	1037	management, accounting, and disposition of securities, equities,
1038	1038	royalties, income, and other benefits the institute determines are
1039	1039	in the best interest of this state.
1040	1040	Sec. 157.306. PREFERENCE FOR TEXAS SUPPLIERS. In a good
1041	1041	faith effort to achieve a goal of more than 50 percent of purchases
1042	1042	from suppliers in this state, the oversight committee shall
1043	1043	establish standards to ensure grant recipients purchase goods and
1044	1044	services from suppliers in this state to the extent reasonably
1045	1045	possible.
1046	1046	Sec. 157.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The
1047	1047	oversight committee shall establish standards to ensure grant
1048	1048	recipients purchase goods and services from historically
1049	1049	underutilized businesses as defined by Section 2161.001,
1050	1050	Government Code, and any other applicable state law.
1051	1051	Sec. 157.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.
1052	1052	(a) The institute shall require as a condition of a grant awarded
1053	1053	under this chapter that the grant recipient submit to regular
1054	1054	inspection reviews of the grant project by institute staff to
1055	1055	ensure compliance with the terms of the grant contract and ongoing
1056	1056	progress, including the scientific merit of the research.
1057	1057	(b) The chief executive officer shall report at least
1058	1058	annually to the oversight committee on the progress and continued
1059	1059	merit of the projects awarded grants by the institute.
1060	1060	Sec. 157.309. MEDICAL AND RESEARCH ETHICS. Any project
1061	1061	that is awarded a grant under this chapter must comply with all
1062	1062	applicable federal and state laws regarding the conduct of the
1063	1063	research or prevention project.
1064	1064	Sec. 157.310. PUBLIC INFORMATION; CONFIDENTIAL
1065	1065	INFORMATION. (a) The following information is public information
1066	1066	and may be disclosed under Chapter 552, Government Code:
1067	1067	(1) the applicant's name and address;
1068	1068	(2) the amount of money requested in the applicant's
1069	1069	grant proposal;
1070	1070	(3) the type of mental health or brain research to be
1071	1071	addressed under the proposal; and
1072	1072	(4) any other information the institute designates
1073	1073	with the consent of the grant applicant.
1074	1074	(b) To protect the actual or potential value of information
1075	1075	submitted to the institute by an applicant for or recipient of an
1076	1076	institute grant, the following information submitted by the
1077	1077	applicant or recipient is confidential and is not subject to
1078	1078	disclosure under Chapter 552, Government Code, or any other law:
1079	1079	(1) all information, other than the information
1080	1080	required under Subsection (a), contained in a grant award
1081	1081	application, peer review evaluation, award contract, or progress
1082	1082	report relating to a product, device, or process, the application
1083	1083	or use of the product, device, or process, and all technological and
1084	1084	scientific information, including computer programs, developed
1085	1085	wholly or partly by a grant applicant or recipient, regardless of
1086	1086	whether patentable or capable of being registered under copyright
1087	1087	or trademark laws, that has a potential for being sold, traded, or
1088	1088	licensed for a fee; and
1089	1089	(2) the plans, specifications, blueprints, and
1090	1090	designs, including related proprietary information, of a
1091	1091	scientific research and development facility.
1092	1092	(c) The following information is confidential and not
1093	1093	subject to disclosure under Chapter 552, Government Code:
1094	1094	(1) information that directly or indirectly reveals
1095	1095	the identity of an individual who reports fraud, waste, or abuse of
1096	1096	state resources to the institute's compliance program office, seeks
1097	1097	guidance from the office, or participates in an investigation
1098	1098	conducted under the compliance program;
1099	1099	(2) information that directly or indirectly reveals
1100	1100	the identity of an individual who is alleged to have or may have
1101	1101	planned, initiated, or participated in activities that are the
1102	1102	subject of a report submitted to the office if, after completing an
1103	1103	investigation, the office determines the report to be
1104	1104	unsubstantiated or without merit; and
1105	1105	(3) other information collected or produced in a
1106	1106	compliance program investigation if releasing the information
1107	1107	would interfere with an ongoing compliance investigation.
1108	1108	(d) Subsection (c) does not apply to information related to
1109	1109	an individual who consents to disclosure of the information.
1110	1110	(e) Information made confidential or excepted from public
1111	1111	disclosure by this section may be made available on request and in
1112	1112	compliance with applicable laws and procedures to the following:
1113	1113	(1) a law enforcement agency or prosecutor;
1114	1114	(2) a governmental agency responsible for
1115	1115	investigating the matter that is the subject of a compliance
1116	1116	report, including the Texas Workforce Commission civil rights
1117	1117	division or the federal Equal Employment Opportunity Commission; or
1118	1118	(3) a committee member or institute employee who is
1119	1119	responsible under institutional policy for a compliance program
1120	1120	investigation or for a review of a compliance program
1121	1121	investigation.
1122	1122	(f) A disclosure under Subsection (e) is not a voluntary
1123	1123	disclosure for purposes of Section 552.007, Government Code.
1124	1124	(g) The institute shall post on the institute's Internet
1125	1125	website records that pertain specifically to any gift, grant, or
1126	1126	other consideration provided to the institute, an institute
1127	1127	employee, or a member of the oversight committee, in the employee's
1128	1128	or oversight committee member's official capacity. The posted
1129	1129	information must include each donor's name and the amount and date
1130	1130	of the donor's donation. This section is not applicable to gifts,
1131	1131	fees, honoraria, or other items also excepted under Section 36.10,
1132	1132	Penal Code.
1133	1133	SECTION 2. Section 51.955(c), Education Code, is amended to
1134	1134	read as follows:
1135	1135	(c) Subsection (b)(1) does not apply to a research contract
1136	1136	between an institution of higher education and the Cancer
1137	1137	Prevention and Research Institute of Texas or Mental Health and
1138	1138	Brain Research Institute of Texas.
1139	1139	SECTION 3. Section 61.003(6), Education Code, is amended to
1140	1140	read as follows:
1141	1141	(6) "Other agency of higher education" means The
1142	1142	University of Texas System, System Administration; The University
1143	1143	of Texas at El Paso Museum; Texas Epidemic Public Health Institute
1144	1144	at The University of Texas Health Science Center at Houston; The
1145	1145	Texas A&M University System, Administrative and General Offices;
1146	1146	Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
1147	1147	Rodent and Predatory Animal Control Service (a part of the Texas A&M
1148	1148	AgriLife Extension Service); Texas A&M Engineering Experiment
1149	1149	Station (including the Texas A&M Transportation Institute); Texas
1150	1150	A&M Engineering Extension Service; Texas A&M Forest Service; Texas
1151	1151	Division of Emergency Management; Texas Tech University Museum;
1152	1152	Texas State University System, System Administration; Sam Houston
1153	1153	Memorial Museum; Panhandle-Plains Historical Museum; Cotton
1154	1154	Research Committee of Texas; Texas Water Resources Institute; Texas
1155	1155	A&M Veterinary Medical Diagnostic Laboratory; Mental Health and
1156	1156	Brain Research Institute of Texas; and any other unit, division,
1157	1157	institution, or agency which shall be so designated by statute or
1158	1158	which may be established to operate as a component part of any
1159	1159	public senior college or university, or which may be so classified
1160	1160	as provided in this chapter.
1161	1161	SECTION 4. Section 572.003(c), Government Code, is amended
1162	1162	to read as follows:
1163	1163	(c) The term means a member of:
1164	1164	(1) the Public Utility Commission of Texas;
1165	1165	(2) the Texas Commission on Environmental Quality;
1166	1166	(3) the Texas Alcoholic Beverage Commission;
1167	1167	(4) the Finance Commission of Texas;
1168	1168	(5) the Texas Facilities Commission;
1169	1169	(6) the Texas Board of Criminal Justice;
1170	1170	(7) the board of trustees of the Employees Retirement
1171	1171	System of Texas;
1172	1172	(8) the Texas Transportation Commission;
1173	1173	(9) the Texas Department of Insurance;
1174	1174	(10) the Parks and Wildlife Commission;
1175	1175	(11) the Public Safety Commission;
1176	1176	(12) the Texas Ethics Commission;
1177	1177	(13) the State Securities Board;
1178	1178	(14) the Texas Water Development Board;
1179	1179	(15) the governing board of a public senior college or
1180	1180	university as defined by Section 61.003, Education Code, or of The
1181	1181	University of Texas Southwestern Medical Center, The University of
1182	1182	Texas Medical Branch at Galveston, The University of Texas Health
1183	1183	Science Center at Houston, The University of Texas Health Science
1184	1184	Center at San Antonio, The University of Texas M. D. Anderson Cancer
1185	1185	Center, The University of Texas Health Science Center at Tyler,
1186	1186	University of North Texas Health Science Center at Fort Worth,
1187	1187	Texas Tech University Health Sciences Center, Texas State Technical
1188	1188	College--Harlingen, Texas State Technical College--Marshall, Texas
1189	1189	State Technical College--Sweetwater, or Texas State Technical
1190	1190	College--Waco;
1191	1191	(16) the Texas Higher Education Coordinating Board;
1192	1192	(17) the Texas Workforce Commission;
1193	1193	(18) the board of trustees of the Teacher Retirement
1194	1194	System of Texas;
1195	1195	(19) the Credit Union Commission;
1196	1196	(20) the School Land Board;
1197	1197	(21) the board of the Texas Department of Housing and
1198	1198	Community Affairs;
1199	1199	(22) the Texas Racing Commission;
1200	1200	(23) the State Board of Dental Examiners;
1201	1201	(24) the Texas Medical Board;
1202	1202	(25) the Board of Pardons and Paroles;
1203	1203	(26) the Texas State Board of Pharmacy;
1204	1204	(27) the Department of Information Resources
1205	1205	governing board;
1206	1206	(28) the board of the Texas Department of Motor
1207	1207	Vehicles;
1208	1208	(29) the Texas Real Estate Commission;
1209	1209	(30) the board of directors of the State Bar of Texas;
1210	1210	(31) the Bond Review Board;
1211	1211	(32) the Health and Human Services Commission;
1212	1212	(33) the Texas Funeral Service Commission;
1213	1213	(34) the board of directors of a river authority
1214	1214	created under the Texas Constitution or a statute of this state;
1215	1215	(35) the Texas Lottery Commission; [or]
1216	1216	(36) the Cancer Prevention and Research Institute of
1217	1217	Texas; or
1218	1218	(37) the Mental Health and Brain Research Institute of
1219	1219	Texas.
1220	1220	SECTION 5. (a) Not later than December 31, 2025, the
1221	1221	appropriate appointing authority shall appoint the members to the
1222	1222	Mental Health and Brain Research Institute of Texas Oversight
1223	1223	Committee as required by Section 157.101, Education Code, as added
1224	1224	by this Act. The oversight committee may not act until a majority
1225	1225	of the appointed members have taken office.
1226	1226	(b) Notwithstanding Section 157.101, Education Code, as
1227	1227	added by this Act, in making the initial appointments under that
1228	1228	section, the governor, lieutenant governor, and speaker of the
1229	1229	house of representatives shall, as applicable, designate one member
1230	1230	of the Mental Health and Brain Research Institute of Texas
1231	1231	Oversight Committee appointed by that person to serve a term
1232	1232	expiring January 31, 2027, one member appointed by that person to
1233	1233	serve a term expiring January 31, 2029, and one member appointed by
1234	1234	that person to serve a term expiring January 31, 2031.
1235	1235	(c) The governor shall designate one member to serve as
1236	1236	interim presiding officer for the purpose of calling and presiding
1237	1237	over meetings of the Mental Health and Brain Research Institute of
1238	1238	Texas Oversight Committee until an election is held under Section
1239	1239	157.104, Education Code, as added by this Act.
1240	1240	SECTION 6. If the voters approve the constitutional
1241	1241	amendment proposed by the 89th Legislature, Regular Session, 2025,
1242	1242	requiring the creation of the Mental Health and Brain Research
1243	1243	Institute of Texas, establishing the Mental Health and Brain
1244	1244	Institute Research Fund to provide funding for mental health and
1245	1245	brain research in this state, and transferring state general
1246	1246	revenue to that fund, the Mental Health and Brain Research
1247	1247	Institute of Texas established by Chapter 157, Education Code, as
1248	1248	added by this Act, is eligible to receive funding deposited under
1249	1249	the authority of Section 68, Article III, Texas Constitution, for
1250	1250	any activities conducted by the institute that serve the purposes
1251	1251	of that constitutional provision.
1252	1252	SECTION 7. This Act takes effect December 1, 2025, but only
1253	1253	if the voters approve the constitutional amendment proposed by the
1254	1254	89th Legislature, Regular Session, 2025, requiring the creation of
1255	1255	the Mental Health and Brain Research Institute of Texas,
1256	1256	establishing the Mental Health and Brain Institute Research Fund to
1257	1257	provide funding for mental health and brain research in this state,
1258	1258	and transferring state general revenue to that fund. If that
1259	1259	amendment is not approved by the voters, this Act has no effect.