Texas 2025 - 89th Regular

Texas House Bill HB5 Compare Versions

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1	1		By: Craddick H.B. No. 5
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the creation of the Dementia Prevention and Research
7	9		Institute of Texas.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
10	12		amended by adding Chapter 101A to read as follows:
11	13		CHAPTER 101A. DEMENTIA PREVENTION AND RESEARCH INSTITUTE OF TEXAS
12	14		SUBCHAPTER A. GENERAL PROVISIONS
13	15		Sec. 101A.001. DEFINITIONS. In this chapter:
14	16		(1) "Institute" means the Dementia Prevention and
15	17		Research Institute of Texas.
16	18		(2) "Oversight committee" means the Dementia
17	19		Prevention and Research Institute of Texas Oversight Committee.
18	20		(3) "Peer review committee" means the Dementia
19	21		Prevention and Research Institute of Texas Peer Review Committee.
20	22		(4) "Program integration committee" means the
21	23		Dementia Prevention and Research Institute of Texas Program
22	24		Integration Committee.
23	25		Sec. 101A.002. PURPOSES. The Dementia Prevention and
24	26		Research Institute of Texas is established to:
25	27		(1) create and expedite innovation in research on
26	28		dementia and related disorders to improve the health of residents
27	29		of this state, enhance the potential for a medical or scientific
28	30		breakthrough in research on dementia and related disorders, and
29	31		enhance the research superiority of this state regarding dementia
30	32		and related disorders; and
31	33		(2) attract, create, or expand research capabilities
32	34		of eligible institutions of higher education and other public or
33	35		private entities by awarding grants to promote a substantial
34	36		increase in research on dementia and related disorders, strategies
35	37		for prevention of dementia and related disorders, and the creation
36	38		of exceptional jobs in this state.
37	39		Sec. 101A.003. SUNSET PROVISION. The Dementia Prevention
38	40		and Research Institute of Texas is subject to Chapter 325,
39	41		Government Code (Texas Sunset Act). Unless continued in existence
40	42		as provided by that chapter, the institute is abolished and this
41	43		chapter expires September 1, 2035.
42	44		Sec. 101A.004. STATE AUDITOR. Nothing in this chapter
43	45		limits the authority of the state auditor under Chapter 321,
44	46		Government Code, or other law.
45	47		SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
46	48		Sec. 101A.051. POWERS AND DUTIES. The institute:
47	49		(1) may award grants to institutions of learning,
48	50		advanced medical research facilities, public or private persons,
49	51		and collaboratives in this state to further the purposes of this
50	52		chapter and Section 68, Article III, Texas Constitution, including:
51	53		(A) research, including translational and
52	54		clinical research, into the causes of, means of prevention of, and
53	55		treatment and rehabilitation for dementia and related disorders;
54	56		(B) research, including translational research,
55	57		to develop therapies, protocols, medical pharmaceuticals, or
56	58		procedures for the substantial mitigation of the symptoms of
57	59		dementia and related disorders;
58	60		(C) facilities, equipment, and other costs
59	61		related to research on dementia and related disorders; and
60	62		(D) prevention programs and strategies to
61	63		mitigate the detrimental health impacts of dementia and related
62	64		disorders;
63	65		(2) may collaborate with relevant state agencies,
64	66		coordinating councils, and consortiums to enhance health care and
65	67		research for dementia and related disorders;
66	68		(3) shall establish the appropriate standards and
67	69		oversight bodies to ensure money authorized under this chapter is
68	70		properly used for the purposes of this chapter;
69	71		(4) may employ necessary staff to provide to the
70	72		institute administrative support;
71	73		(5) may contract with another state agency to share
72	74		the cost of administrative services, including grant accounting,
73	75		grant monitoring, technical and document management of the grant
74	76		application review process, legal services, and compliance
75	77		services;
76	78		(6) shall monitor grant contracts authorized by this
77	79		chapter and ensure each grant recipient complies with the terms and
78	80		conditions of the contract;
79	81		(7) shall ensure all grant proposals comply with this
80	82		chapter and rules adopted under this chapter before the proposals
81	83		are submitted to the oversight committee for approval; and
82	84		(8) shall establish procedures to document compliance
83	85		by the institute, institute employees, and institute committee
84	86		members with all laws and rules governing the peer review process
85	87		and conflicts of interest.
86	88		Sec. 101A.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
87	89		OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
88	90		hire a chief executive officer. The chief executive officer shall
89	91		perform the duties required by this chapter and the duties
90	92		designated by the oversight committee. The chief executive officer
91	93		must have a demonstrated ability to lead and develop academic,
92	94		commercial, and governmental partnerships and coalitions.
93	95		(b) The institute shall employ a chief compliance officer to
94	96		monitor compliance with this chapter and rules adopted under this
95	97		chapter and to report to the oversight committee incidents of
96	98		noncompliance.
97	99		(c) The chief executive officer may hire any other officer
98	100		position the chief executive officer determines necessary for the
99	101		institute's efficient operation.
100	102		Sec. 101A.053. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
101	103		later than January 31 of each year, the institute shall prepare and
102	104		submit to the governor, lieutenant governor, speaker of the house
103	105		of representatives, and standing committee of each house of the
104	106		legislature with primary jurisdiction over institute matters and
105	107		post on the institute's Internet website a report on:
106	108		(1) the institute's activities under this chapter;
107	109		(2) a list of recipients of grants awarded during the
108	110		preceding state fiscal year and the grant amount awarded to each
109	111		recipient;
110	112		(3) any research accomplishments a grant recipient or
111	113		the recipient's partners achieved during the preceding state fiscal
112	114		year;
113	115		(4) an overview summary of the institute's most recent
114	116		audited financial statement;
115	117		(5) an assessment of the relationship between the
116	118		institute's grants and research program strategy;
117	119		(6) an estimate of the financial cost to this state of
118	120		dementia and related disorders during the most recent state fiscal
119	121		year for which data is available;
120	122		(7) a statement of the institute's compliance program
121	123		activities, including any proposed legislation or other
122	124		recommendations identified through the activities;
123	125		(8) for the preceding state fiscal year:
124	126		(A) a list of any conflict of interest requiring
125	127		recusal under this chapter or rules adopted under this chapter;
126	128		(B) any unreported conflict of interest
127	129		confirmed by an investigation conducted under Section 101A.254,
128	130		including any institute actions regarding an unreported conflict of
129	131		interest and subsequent investigation; and
130	132		(C) any waivers granted through the process
131	133		established under Section 101A.253; and
132	134		(9) the institute's future direction.
133	135		Sec. 101A.054. INDEPENDENT FINANCIAL AUDIT. (a) The
134	136		institute shall annually commission a certified public accounting
135	137		firm to perform an independent financial audit of its activities.
136	138		The institute shall provide the audit to the comptroller.
137	139		(b) The comptroller shall:
138	140		(1) review and evaluate the audit and annually issue a
139	141		public report of that review; and
140	142		(2) make recommendations concerning the institute's
141	143		financial practices and performance.
142	144		(c) The oversight committee shall review the annual
143	145		financial audit, the comptroller's public report and
144	146		recommendations, and the financial practices of the institute.
145	147		Sec. 101A.055. GRANT RECORDS; AUDIT OF ELECTRONIC GRANT
146	148		MANAGEMENT SYSTEM. (a) The institute shall maintain complete
147	149		records of:
148	150		(1) each grant application submitted to the institute,
149	151		including each application funded by the institute or withdrawn
150	152		after submission and the score the peer review committee assigns to
151	153		each reviewed application in accordance with rules adopted under
152	154		Section 101A.302;
153	155		(2) each grant recipient's financial reports,
154	156		including the amount of matching money dedicated to the research
155	157		specified for the grant award;
156	158		(3) each grant recipient's progress reports;
157	159		(4) the identity of each principal investor and owner
158	160		of each grant recipient as provided by institute rules to determine
159	161		any conflict of interest; and
160	162		(5) the institute's review of the grant recipient's
161	163		financial reports and progress reports.
162	164		(b) The institute shall keep each record described by
163	165		Subsection (a) until at least the 15th anniversary of the record's
164	166		date of issuance.
165	167		(c) The institute shall have prepared periodic audits of any
166	168		electronic grant management system used to maintain records of
167	169		grant applications and grant awards. The institute shall timely
168	170		address each weakness identified in an audit of the system.
169	171		Sec. 101A.056. GIFTS AND GRANTS. (a) The institute may
170	172		solicit and accept gifts and grants from any source for the purposes
171	173		of this chapter.
172	174		(b) The institute may not supplement the salary of any
173	175		institute employee or officer with a gift or grant the institute
174	176		receives.
175	177		Sec. 101A.057. PROHIBITED OFFICE LOCATION. An institute
176	178		employee may not have an office located in a facility owned by an
177	179		entity receiving or applying to receive money from the institute.
178	180		Sec. 101A.058. COMPLIANCE PROGRAM; INVESTIGATIONS. (a)
179	181		The institute shall establish a compliance program operating under
180	182		the direction of the institute's chief compliance officer to
181	183		monitor compliance with this chapter and rules adopted under this
182	184		chapter and for use in reporting incidents of noncompliance to the
183	185		oversight committee.
184	186		(b) The chief compliance officer or the officer's designee
185	187		shall attend and observe meetings of the peer review committee and
186	188		the program integration committee to ensure compliance with this
187	189		chapter and rules adopted under this chapter.
188	190		(c) The chief compliance officer shall submit a written
189	191		report to the oversight committee confirming each grant application
190	192		recommendation included on the list the program integration
191	193		committee submits under Section 101A.302(a)(2) complies with the
192	194		oversight committee's rules regarding grant award procedures. The
193	195		report must contain all relevant information on:
194	196		(1) the peer review process for the grant application;
195	197		(2) the score the peer review committee assigns to the
196	198		application;
197	199		(3) adherence to the conflict-of-interest
198	200		notification and recusal process; and
199	201		(4) confirmation that a recommended grant applicant
200	202		did not make any gift or grant prohibited by Section 101A.302(f).
201	203		(d) To ensure each grant recipient complies with reporting
202	204		requirements included in the grant contract and the rules adopted
203	205		under this chapter, the institute shall implement a system to:
204	206		(1) track the dates on which grant recipient reports
205	207		are due and are received by the institute; and
206	208		(2) monitor the status of any required report a grant
207	209		recipient does not timely submit to the institute.
208	210		(e) The chief compliance officer shall:
209	211		(1) monitor compliance with this section and the
210	212		status of any required report a grant recipient does not timely
211	213		submit to the institute; and
212	214		(2) notify the institute's general counsel and the
213	215		oversight committee of a grant recipient who has not complied with
214	216		the grant contract reporting requirements to allow the institute to
215	217		suspend or terminate the contract as the institute determines
216	218		appropriate.
217	219		(f) The chief compliance officer shall establish procedures
218	220		for investigating allegations against oversight committee members,
219	221		institute employees or contractors, grant applicants, or grant
220	222		recipients for fraud, waste, or abuse of state resources. The
221	223		procedures must include:
222	224		(1) private access to the compliance program office,
223	225		such as a telephone hotline; and
224	226		(2) to the extent possible, preservation of the
225	227		confidentiality of communications and the anonymity of a person who
226	228		submits a compliance report related to fraud, waste, or abuse or
227	229		participates in a compliance investigation.
228	230		SUBCHAPTER C. OVERSIGHT COMMITTEE
229	231		Sec. 101A.101. COMPOSITION OF OVERSIGHT COMMITTEE. (a)
230	232		The oversight committee is the institute's governing body.
231	233		(b) The oversight committee is composed of the following
232	234		nine members:
233	235		(1) three members appointed by the governor;
234	236		(2) three members appointed by the lieutenant
235	237		governor; and
236	238		(3) three members appointed by the speaker of the
237	239		house of representatives.
238	240		(c) The oversight committee members must represent this
239	241		state's geographic and cultural diversity.
240	242		(d) In making appointments to the oversight committee, the
241	243		governor, lieutenant governor, and speaker of the house of
242	244		representatives:
243	245		(1) must each appoint at least one person who is a
244	246		physician or a scientist with extensive experience working with
245	247		dementia or related disorders or in the field of public health; and
246	248		(2) should attempt to include persons affected by
247	249		dementia or related disorders or family members or caregivers of
248	250		patients with dementia or related disorders.
249	251		(e) A person may not be an oversight committee member if the
250	252		person or the person's spouse:
251	253		(1) is employed by or participates in the management
252	254		of an entity receiving money from the institute;
253	255		(2) owns or controls, directly or indirectly, an
254	256		interest in an entity receiving money from the institute; or
255	257		(3) uses or receives a substantial amount of tangible
256	258		goods, services, or money from the institute, other than
257	259		reimbursement authorized by this chapter for oversight committee
258	260		membership, attendance, or expenses.
259	261		Sec. 101A.102. REMOVAL. (a) It is a ground for removal
260	262		from the oversight committee that a member:
261	263		(1) is ineligible for membership under Section
262	264		101A.101(e);
263	265		(2) cannot, because of illness or disability,
264	266		discharge the member's duties for a substantial part of the member's
265	267		term; or
266	268		(3) is absent from more than half of the regularly
267	269		scheduled oversight committee meetings the member is eligible to
268	270		attend during a calendar year without an excuse approved by a
269	271		majority vote of the committee.
270	272		(b) The validity of an oversight committee action is not
271	273		affected by the fact that the action is taken when a ground for
272	274		removal of a committee member exists.
273	275		(c) If the chief executive officer has knowledge that a
274	276		potential ground for removal of a committee member exists, the
275	277		chief executive officer shall notify the presiding officer of the
276	278		oversight committee of the potential ground. The presiding officer
277	279		shall then notify the appointing authority and the attorney general
278	280		that a potential ground for removal exists. If the potential ground
279	281		for removal involves the presiding officer, the chief executive
280	282		officer shall notify the next highest ranking officer of the
281	283		oversight committee, who shall then notify the appointing authority
282	284		and the attorney general that a potential ground for removal
283	285		exists.
284	286		Sec. 101A.103. TERMS; VACANCY. (a) Oversight committee
285	287		members appointed by the governor, lieutenant governor, and speaker
286	288		of the house serve at the pleasure of the appointing authority for
287	289		staggered six-year terms, with the terms of three members expiring
288	290		on January 31 of each odd-numbered year.
289	291		(b) If a vacancy occurs on the oversight committee, the
290	292		appropriate appointing authority shall appoint a successor in the
291	293		same manner as the original appointment to serve for the remainder
292	294		of the unexpired term. The appropriate appointing authority shall
293	295		appoint the successor not later than the 30th day after the date the
294	296		vacancy occurs.
295	297		Sec. 101A.104. OFFICERS. (a) The oversight committee
296	298		shall elect a presiding officer and assistant presiding officer
297	299		from among its members every two years. The oversight committee may
298	300		elect additional officers from among its members.
299	301		(b) The presiding officer and assistant presiding officer
300	302		may not serve in the position to which the officer was elected for
301	303		consecutive terms.
302	304		(c) The oversight committee shall:
303	305		(1) establish and approve duties and responsibilities
304	306		for committee officers; and
305	307		(2) develop and implement policies that distinguish
306	308		the responsibilities of the oversight committee and the committee's
307	309		officers from the responsibilities of the chief executive officer
308	310		and institute employees.
309	311		Sec. 101A.105. EXPENSES. An oversight committee member is
310	312		not entitled to compensation but is entitled to reimbursement for
311	313		actual and necessary expenses incurred in attending committee
312	314		meetings or performing other official duties authorized by the
313	315		presiding officer.
314	316		Sec. 101A.106. MEETINGS. (a) The oversight committee
315	317		shall hold at least one public meeting each quarter of the calendar
316	318		year, with appropriate notice and a formal public comment period.
317	319		(b) The oversight committee may conduct a closed meeting in
318	320		accordance with Subchapter E, Chapter 551, Government Code, to
319	321		discuss issues related to:
320	322		(1) managing, acquiring, or selling securities or
321	323		other revenue-sharing obligations realized under the standards
322	324		established as required by Section 101A.305; and
323	325		(2) an ongoing compliance investigation into issues
324	326		related to fraud, waste, or abuse of state resources.
325	327		Sec. 101A.107. POWERS AND DUTIES. (a) The oversight
326	328		committee shall:
327	329		(1) hire a chief executive officer;
328	330		(2) annually set priorities for each grant program
329	331		established under this chapter; and
330	332		(3) consider the priorities set under Subdivision (2)
331	333		in awarding grants under this chapter.
332	334		(b) The oversight committee shall adopt a code of conduct
333	335		applicable to each oversight committee member, program integration
334	336		committee member, peer review committee member, and institute
335	337		employee that includes provisions prohibiting the member,
336	338		employee, or member's or employee's spouse from:
337	339		(1) accepting or soliciting any gift, favor, or
338	340		service that could reasonably influence the member or employee in
339	341		the discharge of official duties or that the member, employee, or
340	342		spouse knows or should know is being offered with the intent to
341	343		influence the member's or employee's official conduct;
342	344		(2) accepting employment or engaging in any business
343	345		or professional activity that would reasonably require or induce
344	346		the member or employee to disclose confidential information
345	347		acquired in the member's or employee's official position;
346	348		(3) accepting other employment or compensation that
347	349		could reasonably impair the member's or employee's independent
348	350		judgment in the performance of official duties;
349	351		(4) holding a personal investment or financial
350	352		interest that could reasonably create a substantial conflict
351	353		between the private interests and official duties of the member or
352	354		employee;
353	355		(5) intentionally or knowingly soliciting, accepting,
354	356		or agreeing to accept any benefit for exercising the member's
355	357		official powers or performing the member's or employee's official
356	358		duties in favor of another;
357	359		(6) directly or indirectly leasing to an entity that
358	360		receives a grant from the institute any property, capital
359	361		equipment, employee, or service;
360	362		(7) submitting a grant application for funding by the
361	363		institute;
362	364		(8) serving on the board of directors of an
363	365		organization established with a grant from the institute; or
364	366		(9) serving on the board of directors of a grant
365	367		recipient.
366	368		Sec. 101A.108. RULEMAKING AUTHORITY. The oversight
367	369		committee may adopt rules to administer this chapter.
368	370		Sec. 101A.109. FINANCIAL STATEMENT REQUIRED. Each
369	371		oversight committee member shall file with the chief compliance
370	372		officer a verified financial statement complying with Sections
371	373		572.022, 572.023, 572.024, 572.025, 572.0251, and 572.0252,
372	374		Government Code, as required of a state officer by Section 572.021
373	375		of that code.
374	376		SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
375	377		Sec. 101A.151. PEER REVIEW COMMITTEE. (a) The oversight
376	378		committee shall establish a peer review committee. The chief
377	379		executive officer, with approval by a simple majority of the
378	380		oversight committee members, shall appoint as members to the peer
379	381		review committee:
380	382		(1) experts in fields related to dementia or related
381	383		disorders, including research, health care, dementia treatment and
382	384		prevention, and other study areas; and
383	385		(2) trained patient advocates who meet the
384	386		qualifications adopted under Subsection (c).
385	387		(b) The oversight committee shall adopt a written policy on
386	388		in-state or out-of-state residency requirements for peer review
387	389		committee members.
388	390		(c) The oversight committee shall adopt rules regarding the
389	391		qualifications required of a trained patient advocate for
390	392		membership on the peer review committee. The rules must require the
391	393		trained patient advocate to successfully complete science-based
392	394		training.
393	395		(d) A peer review committee member may receive an
394	396		honorarium. Subchapter B, Chapter 2254, Government Code, does not
395	397		apply to an honorarium the member receives under this chapter.
396	398		(e) The chief executive officer, in consultation with the
397	399		oversight committee, shall adopt a policy regarding honoraria and
398	400		document any change in the amount of honoraria paid to a peer review
399	401		committee member, including information explaining the basis for
400	402		that change.
401	403		(f) A peer review committee member may not serve on the
402	404		board of directors or other governing board of an entity receiving a
403	405		grant from the institute.
404	406		(g) Peer review committee members serve for terms as
405	407		determined by the chief executive officer.
406	408		Sec. 101A.152. PROGRAM INTEGRATION COMMITTEE. (a) The
407	409		institute shall establish a program integration committee to carry
408	410		out the duties assigned under this chapter.
409	411		(b) The program integration committee is composed of:
410	412		(1) the chief executive officer, who serves as the
411	413		presiding officer of the program integration committee;
412	414		(2) three senior-level institute employees
413	415		responsible for program policy and oversight, appointed by the
414	416		chief executive officer with the approval of a majority of the
415	417		oversight committee members; and
416	418		(3) the executive commissioner or the executive
417	419		commissioner's designee.
418	420		Sec. 101A.153. HIGHER EDUCATION ADVISORY COMMITTEE. (a)
419	421		The higher education advisory committee is composed of the
420	422		following members:
421	423		(1) one member appointed by the chancellor of The
422	424		University of Texas System;
423	425		(2) one member appointed by the chancellor of The
424	426		Texas A&M University System;
425	427		(3) one member appointed by the chancellor of the
426	428		Texas Tech University System;
427	429		(4) one member appointed by the chancellor of the
428	430		University of Houston System;
429	431		(5) one member appointed by the chancellor of the
430	432		Texas State University System;
431	433		(6) one member appointed by the chancellor of the
432	434		University of North Texas System;
433	435		(7) one member appointed by the president of Baylor
434	436		College of Medicine; and
435	437		(8) one member appointed by the president of Rice
436	438		University.
437	439		(b) The higher education advisory committee shall advise
438	440		the oversight committee on issues, opportunities, the role of
439	441		higher education, and other subjects involving research on dementia
440	442		and related disorders.
441	443		Sec. 101A.154. AD HOC ADVISORY COMMITTEE. (a) The
442	444		oversight committee, as necessary, may create additional ad hoc
443	445		advisory committees composed of experts to advise the oversight
444	446		committee on issues relating to prevention of or research on
445	447		dementia and related disorders or other issues related to dementia
446	448		or related disorders.
447	449		(b) Ad hoc committee members serve for the terms the
448	450		oversight committee determines.
449	451		Sec. 101A.155. EXPENSES. Members of the higher education
450	452		advisory committee created under Section 101A.153 or an ad hoc
451	453		advisory committee created under Section 101A.154 serve without
452	454		compensation but are entitled to reimbursement for actual and
453	455		necessary expenses incurred in attending committee meetings or
454	456		performing other official duties authorized by the presiding
455	457		officer.
456	458		SUBCHAPTER E. DEMENTIA PREVENTION AND RESEARCH FUND
457	459		Sec. 101A.201. DEMENTIA PREVENTION AND RESEARCH FUND. (a)
458	460		In this subchapter, "fund" means the Dementia Prevention and
459	461		Research Fund established under Section 68, Article III, Texas
460	462		Constitution. The fund is a special fund in the treasury outside
461	463		the general revenue fund to be administered by the institute. The
462	464		institute may use money in the fund as authorized by this chapter
463	465		without further legislative appropriation.
464	466		(b) The fund consists of:
465	467		(1) money transferred to the fund under Section 68,
466	468		Article III, Texas Constitution;
467	469		(2) money the legislature appropriates, credits, or
468	470		transfers to the fund;
469	471		(3) gifts and grants, including grants from the
470	472		federal government, and other donations received for the fund;
471	473		(4) patent, royalty, and license fees and other income
472	474		received under a contract executed as provided by Section 101A.304;
473	475		and
474	476		(5) investment earnings and interest earned on amounts
475	477		credited to the fund.
476	478		(c) The fund may only be used for the purposes authorized
477	479		under Section 68, Article III, Texas Constitution, including:
478	480		(1) the award of grants for research on or prevention
479	481		of dementia and related disorders and research facilities in this
480	482		state to conduct that research;
481	483		(2) the purchase of, subject to the institute's
482	484		approval, research facilities by or for a state agency or grant
483	485		recipient; and
484	486		(3) the operation of the institute.
485	487		Sec. 101A.202. ROLE OF TEXAS TREASURY SAFEKEEPING TRUST
486	488		COMPANY. (a) In this section, "trust company" means the Texas
487	489		Treasury Safekeeping Trust Company.
488	490		(b) The trust company shall invest the fund in accordance
489	491		with this section.
490	492		(c) The trust company shall hold and invest the fund, and
491	493		any accounts established in the fund, for the institute taking into
492	494		consideration the authorized uses of money in the fund. The fund
493	495		may be invested with the state treasury pool and may be pooled with
494	496		other state assets for investment purposes.
495	497		(d) The overall objective for the investment of the fund is
496	498		to maintain sufficient liquidity to meet the needs of the fund while
497	499		striving to preserve the purchasing power of the fund over a full
498	500		economic cycle.
499	501		(e) The trust company has any power necessary to accomplish
500	502		the purposes of managing and investing the fund's assets. In
501	503		managing the fund's assets, through procedures and subject to
502	504		restrictions the trust company considers appropriate, the trust
503	505		company may acquire, exchange, sell, supervise, manage, or retain
504	506		any kind of investment that a prudent investor, exercising
505	507		reasonable care, skill, and caution, would acquire or retain in
506	508		light of the purposes, terms, distribution requirements, and other
507	509		circumstances of the fund then prevailing, taking into
508	510		consideration the investment of all the fund's assets rather than a
509	511		single investment.
510	512		(f) The expenses of managing the fund shall be paid from the
511	513		fund.
512	514		(g) The trust company annually shall provide to the
513	515		institute and the oversight committee a written report on the
514	516		investments of the fund.
515	517		(h) The trust company shall adopt an appropriate written
516	518		investment policy for the fund. The trust company shall present the
517	519		investment policy to the investment advisory board established
518	520		under Section 404.028, Government Code. The investment advisory
519	521		board shall submit to the trust company recommendations regarding
520	522		the policy.
521	523		(i) The institute annually shall provide to the trust
522	524		company a forecast of the cash flows into and out of the fund. The
523	525		institute shall provide updates to the forecasts as appropriate to
524	526		ensure the trust company is able to achieve the objective specified
525	527		by Subsection (d).
526	528		(j) The trust company shall disburse money from the fund as
527	529		the institute directs. The institute shall direct disbursements
528	530		from the fund on a semiannual schedule specified by the institute
529	531		and not more frequently than twice in any state fiscal year.
530	532		Sec. 101A.203. AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
531	533		(a) A grant recipient awarded money from the fund may use the money
532	534		for research consistent with the purposes of this chapter and in
533	535		accordance with a contract between the grant recipient and the
534	536		institute.
535	537		(b) Except as otherwise provided by this section, grant
536	538		money awarded under this chapter may be used for authorized
537	539		expenses, including:
538	540		(1) honoraria;
539	541		(2) travel;
540	542		(3) conference fees and expenses;
541	543		(4) consumable supplies;
542	544		(5) operating expenses;
543	545		(6) contracted research and development;
544	546		(7) capital equipment; and
545	547		(8) construction or renovation of state or private
546	548		facilities.
547	549		(c) A grant recipient awarded money under this chapter for
548	550		research on dementia or related disorders may not spend more than
549	551		five percent of the money for indirect costs. In this subsection,
550	552		"indirect costs" means business expenses not readily identified
551	553		with a particular grant, contract, project, function, or activity
552	554		that are necessary for the general operation of the organization or
553	555		the performance of the organization's activities.
554	556		(d) Not more than five percent of the total amount of grant
555	557		money awarded under this chapter in a state fiscal year may be used
556	558		during that year for facility purchase, construction, remodel, or
557	559		renovation purposes, and those expenditures must benefit research
558	560		on dementia or related disorders.
559	561		(e) Not more than 10 percent of the total amount of grant
560	562		money awarded under this chapter in a state fiscal year may be used
561	563		during that year for prevention projects and strategies to mitigate
562	564		the incidence of dementia or related disorders.
563	565		SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
564	566		Sec. 101A.251. CONFLICT OF INTEREST. (a) The oversight
565	567		committee shall adopt conflict-of-interest rules, based on
566	568		standards applicable to members of scientific review committees of
567	569		the National Institutes of Health, to govern oversight committee
568	570		members, program integration committee members, peer review
569	571		committee members, and institute employees.
570	572		(b) An oversight committee member, program integration
571	573		committee member, peer review committee member, or institute
572	574		employee shall recuse the member or employee, as provided by
573	575		Section 101A.252(a), (b), or (c), as applicable, if the member or
574	576		employee, or a person who is related to the member or employee
575	577		within the second degree of affinity or consanguinity, has a
576	578		professional or financial interest in an entity awarded a grant or
577	579		applying for a grant from the institute.
578	580		(c) For purposes of Subsection (b), a person has a
579	581		professional interest in an entity awarded a grant or applying for a
580	582		grant from the institute if the person:
581	583		(1) is a member of the board of directors, another
582	584		governing board, or any committee of the entity, or of a foundation
583	585		or similar organization affiliated with the entity, during the same
584	586		grant cycle;
585	587		(2) serves as an elected or appointed officer of the
586	588		entity;
587	589		(3) is an employee of or is negotiating future
588	590		employment with the entity;
589	591		(4) represents the entity;
590	592		(5) is a professional associate of a primary member of
591	593		the entity's project team;
592	594		(6) is, or within the preceding six years has been, a
593	595		student, postdoctoral associate, or part of a laboratory research
594	596		group for a primary member of the entity's project team;
595	597		(7) is engaged or is actively planning to be engaged in
596	598		collaboration with a primary member of the entity's project team;
597	599		or
598	600		(8) has long-standing scientific differences or
599	601		disagreements with a primary member of the entity's project team,
600	602		and those differences or disagreements:
601	603		(A) are known to the professional community; and
602	604		(B) could be perceived as affecting objectivity.
603	605		(d) For purposes of Subsection (b), a person has a financial
604	606		interest in an entity awarded a grant or applying for a grant from
605	607		the institute if the person:
606	608		(1) directly or indirectly owns or controls an
607	609		ownership interest, including sharing in profits, proceeds, or
608	610		capital gains, in an entity awarded a grant or applying for a grant
609	611		from the institute; or
610	612		(2) could reasonably foresee that an action taken by
611	613		the oversight committee, the program integration committee, a peer
612	614		review committee, or the institute could result in a financial
613	615		benefit to the person.
614	616		(e) Nothing in this chapter limits the oversight
615	617		committee's authority to adopt additional conflict-of-interest
616	618		standards.
617	619		Sec. 101A.252. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
618	620		(a) If an oversight committee member or program integration
619	621		committee member has a conflict of interest described by Section
620	622		101A.251 regarding an application before the member for review or
621	623		other action, the member:
622	624		(1) shall provide written notice to the chief
623	625		executive officer and the presiding officer of the oversight
624	626		committee or the next ranking member of the committee if the
625	627		presiding officer has the conflict of interest;
626	628		(2) shall disclose the conflict of interest in an open
627	629		meeting of the oversight committee;
628	630		(3) shall recuse themselves from participating in the
629	631		review, discussion, deliberation, and vote on the application; and
630	632		(4) may not access information regarding the matter to
631	633		be decided.
632	634		(b) If a peer review committee member has a conflict of
633	635		interest described by Section 101A.251 regarding an application
634	636		before the member's committee for review or other action, the
635	637		member:
636	638		(1) shall provide written notice to the chief
637	639		executive officer of the conflict of interest;
638	640		(2) shall recuse themselves from participating in the
639	641		review, discussion, deliberation, and vote on the application; and
640	642		(3) may not access information regarding the matter to
641	643		be decided.
642	644		(c) If an institute employee has a conflict of interest
643	645		described by Section 101A.251 regarding an application before the
644	646		employee for review or other action, the employee:
645	647		(1) shall provide written notice to the chief
646	648		executive officer of the conflict of interest;
647	649		(2) shall recuse themselves from participating in the
648	650		review of the application; and
649	651		(3) may not access information regarding the matter to
650	652		be decided.
651	653		(d) An oversight committee member, program integration
652	654		committee member, peer review committee member, or institute
653	655		employee with a conflict of interest may seek a waiver as provided
654	656		by Section 101A.253.
655	657		(e) An oversight committee member, program integration
656	658		committee member, peer review committee member, or institute
657	659		employee who reports a potential conflict of interest or another
658	660		impropriety or self-dealing of the member or employee and who fully
659	661		complies with the recommendations of the institute's general
660	662		counsel and recusal requirements is considered in compliance with
661	663		the conflict-of-interest provisions of this chapter. The member or
662	664		employee is subject to other applicable laws, rules, requirements,
663	665		and prohibitions.
664	666		(f) An oversight committee member, program integration
665	667		committee member, peer review committee member, or institute
666	668		employee who intentionally violates this section is subject to
667	669		removal from further participation in the institute's grant review
668	670		process.
669	671		Sec. 101A.253. EXCEPTIONAL CIRCUMSTANCES REQUIRING
670	672		PARTICIPATION. The oversight committee shall adopt rules governing
671	673		the waiver of the conflict-of-interest requirements of this chapter
672	674		under exceptional circumstances for an oversight committee member,
673	675		program integration committee member, peer review committee
674	676		member, or institute employee. The rules must:
675	677		(1) authorize the chief executive officer or an
676	678		oversight committee member to propose granting a waiver by
677	679		submitting to the oversight committee's presiding officer a written
678	680		statement about the conflict of interest, the exceptional
679	681		circumstance requiring the waiver, and any proposed limitations to
680	682		the waiver;
681	683		(2) require a proposed waiver to be publicly reported
682	684		at an oversight committee meeting;
683	685		(3) require a majority vote of the oversight committee
684	686		members present and voting to grant a waiver;
685	687		(4) require any waiver granted to be included in the
686	688		annual report required by Section 101A.053; and
687	689		(5) require the institute to retain documentation of
688	690		each waiver granted.
689	691		Sec. 101A.254. INVESTIGATION OF UNREPORTED CONFLICTS OF
690	692		INTEREST. (a) An oversight committee member, program integration
691	693		committee member, peer review committee member, or institute
692	694		employee who becomes aware of an unreported potential conflict of
693	695		interest described by Section 101A.251 shall immediately notify the
694	696		chief executive officer of the potential conflict of interest. On
695	697		receipt of the notification, the chief executive officer shall
696	698		notify the institute's general counsel and the oversight
697	699		committee's presiding officer, who shall determine the nature and
698	700		extent of any unreported conflict.
699	701		(b) A grant applicant seeking an investigation regarding
700	702		whether a prohibited conflict of interest was not reported shall
701	703		file a written request with the chief executive officer. The
702	704		applicant must:
703	705		(1) include in the request all facts regarding the
704	706		alleged conflict of interest; and
705	707		(2) submit the request not later than the 30th day
706	708		after the date the chief executive officer presents to the
707	709		oversight committee final funding recommendations for the affected
708	710		grant cycle.
709	711		(c) On receipt of notification of an alleged conflict of
710	712		interest under Subsection (a) or (b), the institute's general
711	713		counsel shall:
712	714		(1) investigate the matter; and
713	715		(2) provide to the chief executive officer and the
714	716		oversight committee's presiding officer an opinion that includes:
715	717		(A) a statement of facts;
716	718		(B) a determination of whether a conflict of
717	719		interest or another impropriety or self-dealing exists; and
718	720		(C) if the opinion provides that a conflict of
719	721		interest or another impropriety or self-dealing exists,
720	722		recommendations for an appropriate course of action.
721	723		(d) If the conflict of interest, impropriety, or
722	724		self-dealing involves the oversight committee's presiding officer,
723	725		the institute's general counsel shall provide the opinion to the
724	726		next ranking oversight committee member who is not involved with
725	727		the conflict of interest, impropriety, or self-dealing.
726	728		(e) After receiving the opinion and consulting with the
727	729		oversight committee's presiding officer, the chief executive
728	730		officer shall take action regarding the recusal of the individual
729	731		from any discussion of or access to information related to the
730	732		conflict of interest or other recommended action related to the
731	733		impropriety or self-dealing. If the alleged conflict of interest,
732	734		impropriety, or self-dealing is held by, or is an act of, the chief
733	735		executive officer, the presiding officer of the oversight committee
734	736		shall take actions regarding the recusal or other action.
735	737		Sec. 101A.255. FINAL DETERMINATION OF UNREPORTED CONFLICT
736	738		OF INTEREST. (a) The chief executive officer or, if applicable,
737	739		the oversight committee's presiding officer shall make a
738	740		determination regarding the existence of an unreported conflict of
739	741		interest described by Section 101A.251 or other impropriety or
740	742		self-dealing. The determination must specify any actions to be
741	743		taken to address the conflict of interest, impropriety, or
742	744		self-dealing, including:
743	745		(1) reconsideration of the application; or
744	746		(2) referral of the application to another peer review
745	747		committee for review.
746	748		(b) The determination made under Subsection (a) is
747	749		considered final unless three or more oversight committee members
748	750		request that the issue be added to the agenda of the oversight
749	751		committee.
750	752		(c) The chief executive officer or, if applicable, the
751	753		oversight committee's presiding officer, shall provide to the grant
752	754		applicant requesting the investigation written notice of the final
753	755		determination, including any further actions to be taken.
754	756		(d) Unless specifically determined by the chief executive
755	757		officer or, if applicable, the presiding officer of the oversight
756	758		committee, or the oversight committee, the validity of an action
757	759		taken on a grant application is not affected by the fact that an
758	760		individual who failed to report a conflict of interest participated
759	761		in the action.
760	762		SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
761	763		Sec. 101A.301. PEER REVIEW PROCESS FOR GRANT AWARD. The
762	764		institute shall establish a peer review process to evaluate and
763	765		recommend all grants the oversight committee awards under this
764	766		chapter.
765	767		Sec. 101A.302. GRANT AWARD RULES AND PROCEDURES. (a) The
766	768		oversight committee shall adopt rules regarding the procedure for
767	769		awarding grants to an applicant under this chapter. The rules must
768	770		require:
769	771		(1) the peer review committee to score grant
770	772		applications and make recommendations to the program integration
771	773		committee and the oversight committee regarding the award of
772	774		grants, including providing a prioritized list that:
773	775		(A) ranks the grant applications in the order the
774	776		peer review committee determines applications should be funded; and
775	777		(B) includes information explaining each grant
776	778		applicant's qualification under the peer review committee's
777	779		standards for recommendation; and
778	780		(2) the program integration committee to submit to the
779	781		oversight committee a list of grant applications the program
780	782		integration committee by majority vote approved for recommendation
781	783		that:
782	784		(A) includes documentation on the factors the
783	785		program integration committee considered in making the
784	786		recommendations;
785	787		(B) is substantially based on the list submitted
786	788		by the peer review committee under Subdivision (1); and
787	789		(C) to the extent possible, gives priority to
788	790		applications with proposals that:
789	791		(i) may lead to immediate or long-term
790	792		medical and scientific breakthroughs in the areas of prevention or
791	793		treatment for dementia and related disorders;
792	794		(ii) strengthen and enhance fundamental
793	795		scientific research on dementia and related disorders;
794	796		(iii) ensure a comprehensive coordinated
795	797		approach to research on dementia and related disorders;
796	798		(iv) are interdisciplinary or
797	799		interinstitutional;
798	800		(v) align with state priorities and needs,
799	801		including priorities and needs outlined in other state agency
800	802		strategic plans, or that address federal or other major research
801	803		sponsors' priorities in scientific or technological research in the
802	804		fields of dementia and related disorders;
803	805		(vi) are matched with money provided by a
804	806		private or nonprofit entity or institution of higher education;
805	807		(vii) are collaborative between any
806	808		combination of private and nonprofit entities, public or private
807	809		agencies or institutions in this state, and public or private
808	810		institutions outside this state;
809	811		(viii) benefit the residents of this state,
810	812		including a demonstrable economic development benefit to this
811	813		state;
812	814		(ix) enhance research superiority at
813	815		institutions of higher education in this state by creating new
814	816		research superiority, attracting existing research superiority
815	817		from institutions outside this state and other research entities,
816	818		or attracting from outside this state additional researchers and
817	819		resources; and
818	820		(x) expedite innovation and product
819	821		development, attract private sector entities to stimulate a
820	822		substantial increase in high-quality jobs, and increase higher
821	823		education applied science or technology research capabilities.
822	824		(b) A peer review committee member may not attempt to use
823	825		the committee member's official position to influence a decision to
824	826		approve or award a grant or contract to the committee member's
825	827		employer.
826	828		(c) A program integration committee member may not discuss a
827	829		grant applicant recommendation with an oversight committee member
828	830		unless the program integration committee has submitted the list
829	831		required under Subsection (a)(2).
830	832		(d) Two-thirds of the oversight committee members present
831	833		and voting must vote to approve each grant award recommendation of
832	834		the program integration committee. If the oversight committee does
833	835		not approve a grant award recommendation of the program integration
834	836		committee, a statement explaining the reasons the recommendation
835	837		was not followed must be included in the minutes of the meeting.
836	838		(e) The oversight committee may not award more than $300
837	839		million in grants under this chapter in a state fiscal year.
838	840		(f) The oversight committee may not award a grant to an
839	841		applicant who has made a gift or grant to the institute, an
840	842		oversight committee member, or an institute employee on or after
841	843		January 1, 2026. This section does not apply to gifts, fees,
842	844		honoraria, or other items also excepted under Section 36.10, Penal
843	845		Code.
844	846		Sec. 101A.303. MULTIYEAR PROJECTS. (a) The oversight
845	847		committee may approve the award of grant money for a multiyear
846	848		project.
847	849		(b) The oversight committee shall specify the total amount
848	850		of money approved to fund the multiyear project. For purposes of
849	851		this chapter, the total amount is considered to have been awarded in
850	852		the state fiscal year the peer review committee approved the
851	853		project. The institute shall disburse only the money to be spent
852	854		during that fiscal year. The institute shall disburse the
853	855		remaining grant money as the money is needed in each subsequent
854	856		state fiscal year.
855	857		Sec. 101A.304. CONTRACT TERMS. (a) Before disbursing
856	858		grant money awarded under this chapter, the institute shall execute
857	859		a written contract with the grant recipient. The contract shall:
858	860		(1) specify that except for awards to state agencies
859	861		or public institutions of higher education, if all or any part of
860	862		the grant amount is used to build a capital improvement:
861	863		(A) the state retains a lien or other interest in
862	864		the capital improvement in proportion to the percentage of the
863	865		grant amount used to pay for the capital improvement; and
864	866		(B) the grant recipient shall, if the capital
865	867		improvement is sold:
866	868		(i) repay to this state the grant money used
867	869		to pay for the capital improvement, with interest at the rate and
868	870		according to the other terms provided by the contract; and
869	871		(ii) share with this state a proportionate
870	872		amount of any profit realized from the sale;
871	873		(2) specify that if the grant recipient has not used
872	874		awarded grant money for the purposes for which the grant was
873	875		intended, the recipient shall repay that grant amount and any
874	876		related interest applicable under the contract to this state at the
875	877		agreed rate and on the agreed terms;
876	878		(3) specify that if the grant recipient fails to meet
877	879		the terms and conditions of the contract, the institute may
878	880		terminate the contract using the written process prescribed in the
879	881		contract and require the recipient to repay the awarded grant money
880	882		and any related interest applicable under the contract to this
881	883		state at the agreed rate and on the agreed terms;
882	884		(4) include terms relating to intellectual property
883	885		rights consistent with the standards developed by the oversight
884	886		committee under Section 101A.305;
885	887		(5) require, in accordance with Subsection (b), the
886	888		grant recipient to dedicate an amount of matching money equal to
887	889		one-half of the amount of the grant awarded and specify the amount
888	890		of matching money to be dedicated;
889	891		(6) specify the period in which the grant award must be
890	892		spent; and
891	893		(7) include the specific deliverables of the project
892	894		that is the subject of the grant proposal.
893	895		(b) Before the institute may disburse grant money, the grant
894	896		recipient must certify the recipient has available an unexpended
895	897		amount of money equal to one-half of the grant amount dedicated to
896	898		the research specified in the grant proposal. The institute shall
897	899		adopt rules specifying a grant recipient's obligations under this
898	900		chapter. At a minimum, the rules must:
899	901		(1) allow an institution of higher education or a
900	902		private or independent institution of higher education, as those
901	903		terms are defined by Section 61.003, Education Code, a research
902	904		institute or center affiliated with the institution, or a
903	905		not-for-profit hospital system, to credit toward the recipient's
904	906		matching money the dollar amount equivalent to the difference
905	907		between the indirect cost rate negotiated by the federal government
906	908		for research grants awarded to the recipient and the indirect cost
907	909		rate authorized by Section 101A.203(c);
908	910		(2) specify that:
909	911		(A) the recipient of more than one grant award
910	912		under this chapter may provide matching money certification at an
911	913		institutional level;
912	914		(B) the recipient of a multiyear grant award may
913	915		yearly certify matching money; and
914	916		(C) grant money may not be disbursed to the
915	917		recipient until the annual certification of the matching money has
916	918		been approved;
917	919		(3) specify that money for certification purposes may
918	920		include:
919	921		(A) federal money;
920	922		(B) the fair market value of drug development
921	923		support provided to the recipient by the National Institutes of
922	924		Health or other similar programs;
923	925		(C) this state's money;
924	926		(D) other states' money; and
925	927		(E) nongovernmental money, including money from
926	928		private sources, foundation grants, gifts, and donations;
927	929		(4) specify that the following items may not be used
928	930		for certification purposes:
929	931		(A) in-kind costs;
930	932		(B) volunteer services provided to the
931	933		recipient;
932	934		(C) noncash contributions;
933	935		(D) the recipient's preexisting real estate,
934	936		including buildings, facilities, and land;
935	937		(E) deferred giving, including a charitable
936	938		remainder annuity trust, charitable remainder unitrust, or pooled
937	939		income fund; or
938	940		(F) any other items the institute determines;
939	941		(5) require the recipient's certification to be
940	942		included in the grant award contract;
941	943		(6) specify that the recipient's failure to provide
942	944		certification serves as grounds for terminating the grant award
943	945		contract;
944	946		(7) require the recipient to maintain adequate
945	947		documentation supporting the source and use of the money required
946	948		by this subsection and to provide documentation to the institute on
947	949		request; and
948	950		(8) require the institute to establish a procedure to
949	951		annually review the documentation supporting the source and use of
950	952		money reported in the required certification.
951	953		(c) The institute shall establish a policy on advance
952	954		payments to grant recipients.
953	955		(d) The oversight committee shall adopt rules to administer
954	956		this section.
955	957		Sec. 101A.305. PATENT ROYALTIES AND LICENSE REVENUES PAID
956	958		TO STATE. (a) The oversight committee shall establish standards
957	959		requiring all grant awards to be subject to an intellectual
958	960		property agreement that allows this state to collect royalties,
959	961		income, and other benefits, including interest or proceeds
960	962		resulting from securities and equity ownership, realized as a
961	963		result of projects undertaken with grant money awarded under this
962	964		chapter.
963	965		(b) In determining this state's interest in any
964	966		intellectual property rights, the oversight committee shall
965	967		balance the opportunity of this state to benefit from the patents,
966	968		royalties, licenses, and other benefits that result from basic
967	969		research, therapy development, and clinical trials with the need to
968	970		ensure that essential medical research is not unreasonably hindered
969	971		by the intellectual property agreement and that the agreement does
970	972		not unreasonably remove the incentive of the individual researcher,
971	973		research team, or institution.
972	974		(c) The oversight committee may authorize the institute to
973	975		execute a contract with one or more qualified third parties for
974	976		assistance with the management, accounting, and disposition of this
975	977		state's interest in securities, equities, royalties, income, and
976	978		other benefits realized from grant money awarded under this
977	979		chapter. The institute shall implement practices and procedures
978	980		for the management, accounting, and disposition of securities,
979	981		equities, royalties, income, and other benefits the institute
980	982		determines are in this state's best interest.
981	983		Sec. 101A.306. PREFERENCE FOR TEXAS SUPPLIERS. In a good
982	984		faith effort to achieve a goal of more than 50 percent of purchases
983	985		from suppliers in this state, the oversight committee shall
984	986		establish standards to ensure grant recipients purchase goods and
985	987		services from suppliers in this state to the extent reasonably
986	988		possible.
987	989		Sec. 101A.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The
988	990		oversight committee shall establish standards to ensure grant
989	991		recipients purchase goods and services from historically
990	992		underutilized businesses as defined by Section 2161.001,
991	993		Government Code, and any other applicable state law.
992	994		Sec. 101A.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.
993	995		(a) The institute shall require as a condition of a grant awarded
994	996		under this chapter that the grant recipient submit to regular
995	997		inspection reviews of the grant project by institute employees to
996	998		ensure compliance with the terms of the grant contract and ongoing
997	999		progress, including the scientific merit of the research.
998	1000		(b) The chief executive officer shall report at least
999	1001		annually to the oversight committee on the progress and continued
1000	1002		merit of the projects awarded grants by the institute.
1001	1003		Sec. 101A.309. MEDICAL AND RESEARCH ETHICS. A project
1002	1004		awarded a grant under this chapter must comply with all applicable
1003	1005		federal and state laws regarding the conduct of the research or a
1004	1006		prevention project.
1005	1007		Sec. 101A.310. PUBLIC INFORMATION; CONFIDENTIAL
1006	1008		INFORMATION. (a) The following information is public information
1007	1009		and may be disclosed under Chapter 552, Government Code:
1008	1010		(1) a grant applicant's name and address;
1009	1011		(2) the amount of money requested in an applicant's
1010	1012		grant proposal;
1011	1013		(3) the type of research on dementia or related
1012	1014		disorders to be addressed under a grant proposal; and
1013	1015		(4) any other information the institute designates
1014	1016		with the consent of a grant applicant.
1015	1017		(b) To protect the actual or potential value of information
1016	1018		submitted to the institute by an applicant for or recipient of a
1017	1019		grant under this chapter, the following information submitted by
1018	1020		the applicant or recipient is confidential and is not subject to
1019	1021		disclosure under Chapter 552, Government Code, or any other law:
1020	1022		(1) all information, other than the information
1021	1023		described under Subsection (a), contained in a grant application,
1022	1024		peer review evaluation, award contract, or progress report relating
1023	1025		to a product, device, or process, the application or use of the
1024	1026		product, device, or process, and all technological and scientific
1025	1027		information, including computer programs, developed wholly or
1026	1028		partly by the applicant or recipient, regardless of whether
1027	1029		patentable or capable of being registered under copyright or
1028	1030		trademark laws, that has a potential for being sold, traded, or
1029	1031		licensed for a fee; and
1030	1032		(2) the plans, specifications, blueprints, and
1031	1033		designs, including related proprietary information, of a
1032	1034		scientific research and development facility.
1033	1035		(c) The following information is confidential and not
1034	1036		subject to disclosure under Chapter 552, Government Code:
1035	1037		(1) information that directly or indirectly reveals
1036	1038		the identity of an individual who reports fraud, waste, or abuse of
1037	1039		state resources to the institute's compliance program office, seeks
1038	1040		guidance from the office, or participates in an investigation
1039	1041		conducted under the compliance program;
1040	1042		(2) information that directly or indirectly reveals
1041	1043		the identity of an individual who is alleged to have or may have
1042	1044		planned, initiated, or participated in activities specified in a
1043	1045		report submitted to the office if, after completing an
1044	1046		investigation, the office determines the report to be
1045	1047		unsubstantiated or without merit; and
1046	1048		(3) other information collected or produced in a
1047	1049		compliance program investigation if releasing the information
1048	1050		would interfere with an ongoing compliance investigation.
1049	1051		(d) Subsection (c) does not apply to information related to
1050	1052		an individual who consents to the information's disclosure.
1051	1053		(e) Information made confidential or excepted from public
1052	1054		disclosure by this section may be made available, on request and in
1053	1055		compliance with applicable laws and procedures, to the following:
1054	1056		(1) a law enforcement agency or prosecutor;
1055	1057		(2) a governmental agency responsible for
1056	1058		investigating the matter specified in a compliance report,
1057	1059		including the Texas Workforce Commission civil rights division or
1058	1060		the Equal Employment Opportunity Commission; or
1059	1061		(3) a committee member or institute employee who is
1060	1062		responsible under institutional policy for a compliance program
1061	1063		investigation or for a review of a compliance program
1062	1064		investigation.
1063	1065		(f) A disclosure under Subsection (e) is not a voluntary
1064	1066		disclosure for purposes of Section 552.007, Government Code.
1065	1067		(g) The institute shall post on the institute's Internet
1066	1068		website records that pertain specifically to any gift, grant, or
1067	1069		other consideration provided to the institute, an institute
1068	1070		employee, or an oversight committee member, in the employee's or
1069	1071		member's official capacity. The posted information must include
1070	1072		each donor's name and the amount and date of the donor's donation.
1071	1073		SECTION 2. Section 51.955(c), Education Code, is amended to
1072	1074		read as follows:
1073	1075		(c) Subsection (b)(1) does not apply to a research contract
1074	1076		between an institution of higher education and the Cancer
1075	1077		Prevention and Research Institute of Texas or Dementia Prevention
1076	1078		and Research Institute of Texas.
1077	1079		SECTION 3. Section 61.003(6), Education Code, is amended to
1078	1080		read as follows:
1079	1081		(6) "Other agency of higher education" means The
1080	1082		University of Texas System, System Administration; The University
1081	1083		of Texas at El Paso Museum; Texas Epidemic Public Health Institute
1082	1084		at The University of Texas Health Science Center at Houston; The
1083	1085		Texas A&M University System, Administrative and General Offices;
1084	1086		Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
1085	1087		Rodent and Predatory Animal Control Service (a part of the Texas A&M
1086	1088		AgriLife Extension Service); Texas A&M Engineering Experiment
1087	1089		Station (including the Texas A&M Transportation Institute); Texas
1088	1090		A&M Engineering Extension Service; Texas A&M Forest Service; Texas
1089	1091		Division of Emergency Management; Texas Tech University Museum;
1090	1092		Texas State University System, System Administration; Sam Houston
1091	1093		Memorial Museum; Panhandle-Plains Historical Museum; Cotton
1092	1094		Research Committee of Texas; Texas Water Resources Institute; Texas
1093	1095		A&M Veterinary Medical Diagnostic Laboratory; Dementia Prevention
1094	1096		and Research Institute of Texas; and any other unit, division,
1095	1097		institution, or agency which shall be so designated by statute or
1096	1098		which may be established to operate as a component part of any
1097	1099		public senior college or university, or which may be so classified
1098	1100		as provided in this chapter.
1099	1101		SECTION 4. Section 572.003(c), Government Code, is amended
1100	1102		to read as follows:
1101	1103		(c) The term means a member of:
1102	1104		(1) the Public Utility Commission of Texas;
1103	1105		(2) the Texas Commission on Environmental Quality;
1104	1106		(3) the Texas Alcoholic Beverage Commission;
1105	1107		(4) the Finance Commission of Texas;
1106	1108		(5) the Texas Facilities Commission;
1107	1109		(6) the Texas Board of Criminal Justice;
1108	1110		(7) the board of trustees of the Employees Retirement
1109	1111		System of Texas;
1110	1112		(8) the Texas Transportation Commission;
1111	1113		(9) the Texas Department of Insurance;
1112	1114		(10) the Parks and Wildlife Commission;
1113	1115		(11) the Public Safety Commission;
1114	1116		(12) the Texas Ethics Commission;
1115	1117		(13) the State Securities Board;
1116	1118		(14) the Texas Water Development Board;
1117	1119		(15) the governing board of a public senior college or
1118	1120		university as defined by Section 61.003, Education Code, or of The
1119	1121		University of Texas Southwestern Medical Center, The University of
1120	1122		Texas Medical Branch at Galveston, The University of Texas Health
1121	1123		Science Center at Houston, The University of Texas Health Science
1122	1124		Center at San Antonio, The University of Texas M. D. Anderson Cancer
1123	1125		Center, The University of Texas Health Science Center at Tyler,
1124	1126		University of North Texas Health Science Center at Fort Worth,
1125	1127		Texas Tech University Health Sciences Center, Texas State Technical
1126	1128		College--Harlingen, Texas State Technical College--Marshall, Texas
1127	1129		State Technical College--Sweetwater, or Texas State Technical
1128	1130		College--Waco;
1129	1131		(16) the Texas Higher Education Coordinating Board;
1130	1132		(17) the Texas Workforce Commission;
1131	1133		(18) the board of trustees of the Teacher Retirement
1132	1134		System of Texas;
1133	1135		(19) the Credit Union Commission;
1134	1136		(20) the School Land Board;
1135	1137		(21) the board of the Texas Department of Housing and
1136	1138		Community Affairs;
1137	1139		(22) the Texas Racing Commission;
1138	1140		(23) the State Board of Dental Examiners;
1139	1141		(24) the Texas Medical Board;
1140	1142		(25) the Board of Pardons and Paroles;
1141	1143		(26) the Texas State Board of Pharmacy;
1142	1144		(27) the Department of Information Resources
1143	1145		governing board;
1144	1146		(28) the board of the Texas Department of Motor
1145	1147		Vehicles;
1146	1148		(29) the Texas Real Estate Commission;
1147	1149		(30) the board of directors of the State Bar of Texas;
1148	1150		(31) the Bond Review Board;
1149	1151		(32) the Health and Human Services Commission;
1150	1152		(33) the Texas Funeral Service Commission;
1151	1153		(34) the board of directors of a river authority
1152	1154		created under the Texas Constitution or a statute of this state;
1153	1155		(35) the Texas Lottery Commission; [or]
1154	1156		(36) the Cancer Prevention and Research Institute of
1155	1157		Texas; or
1156	1158		(37) the Dementia Prevention and Research Institute of
1157	1159		Texas.
1158	1160		SECTION 5. (a) Not later than December 31, 2025, the
1159	1161		appropriate appointing authority shall appoint the members to the
1160	1162		Dementia Prevention and Research Institute of Texas Oversight
1161	1163		Committee as required by Section 101A.101, Health and Safety Code,
1162	1164		as added by this Act. The oversight committee may not act until a
1163	1165		majority of the appointed members have taken office.
1164	1166		(b) Notwithstanding Section 101A.101, Health and Safety
1165	1167		Code, as added by this Act, in making the initial appointments under
1166	1168		that section, the governor, lieutenant governor, and speaker of the
1167	1169		house of representatives shall, as applicable, designate one member
1168	1170		of the Dementia Prevention and Research Institute of Texas
1169	1171		Oversight Committee appointed by that person to serve a term
1170	1172		expiring January 31, 2027, one member appointed by that person to
1171	1173		serve a term expiring January 31, 2029, and one member appointed by
1172	1174		that person to serve a term expiring January 31, 2031.
1173	1175		SECTION 6. If the voters approve the constitutional
1174	1176		amendment proposed by the 89th Legislature, Regular Session, 2025,
1175	1177		providing for the establishment of the Dementia Prevention and
1176	1178		Research Institute of Texas, establishing the Dementia Prevention
1177	1179		and Research Fund to provide money for research on and prevention
1178	1180		and treatment of dementia and related disorders in this state, and
1179	1181		transferring to that fund $3 billion from state general revenue,
1180	1182		the Dementia Prevention and Research Institute of Texas established
1181	1183		by Chapter 101A, Health and Safety Code, as added by this Act, is
1182	1184		eligible for funding to be deposited under the authority of Section
1183	1185		68, Article III, Texas Constitution, for the institute to engage in
1184	1186		any activities serving the purposes of that constitutional
1185	1187		provision.
1186	1188		SECTION 7. This Act takes effect December 1, 2025, but only
1187	1189		if the constitutional amendment proposed by the 89th Legislature,
1188	1190		Regular Session, 2025, providing for the establishment of the
1189	1191		Dementia Prevention and Research Institute of Texas, establishing
1190	1192		the Dementia Prevention and Research Fund to provide money for
1191	1193		research on and prevention and treatment of dementia and related
1192	1194		disorders in this state, and transferring to that fund $3 billion
1193	1195		from state general revenue is approved by the voters. If that
1194	1196		amendment is not approved by the voters, this Act has no effect.