BILL ANALYSIS Senate Research Center S.B. 2796 By: Hughes Health & Human Services 4/14/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT The Cancer Prevention and Research Institute of Texas (CPRIT) has been instrumental in funding innovative cancer research and prevention across the state. S.B. 2796 aims to align CPRIT's investment strategy more closely with its fiduciary responsibility to the state, while supporting its impressive portfolio of life-saving research. S.B. 2796 provides statutory clarity for the agency's fiduciary responsibilities by establishing a non-binding target of at least one percent annual return on total assets, ensuring taxpayer funds are used responsibly. This conservative target helps CPRIT make wise, long-term decisions on which projects to fund, while providing fiscal guidance. The legislation also defines key terms such as "return on investment" and "total assets" to align CPRIT's reporting with best practices, and potentially guide other agencies like DPRIT. Importantly, it preserves CPRIT's autonomy, allowing flexible and timely investment decisions without burdensome restrictions. As proposed, S.B. 2796 amends current law relating to the Cancer Prevention Research Institute's fiscal responsibilities to the state of Texas. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 102.002, Health and Safety Code, to provide that the Cancer Prevention and Research Institute of Texas (CPRIT) is established to perform certain actions, including providing a reasonable return on investment for the state, with fiduciary responsibilities to the State of Texas, with a non-binding target of at least 1 percent returns per year, subject to the decision of the CPRIT Oversight Committee (oversight committee), and to make a nonsubstantive change. SECTION 2. Amends Section 102.0511(c), Health and Safety Code, to require the chief executive officer of the oversight committee to hire certain officers, including one chief investment officer, and to make nonsubstantive changes. SECTION 3. Amends Section 102.251(a-2-C), Health and Safety Code, as follows: (C) Requires that the rules regarding the procedures for issuing a grant under Chapter 102 (Cancer Prevention and Research Institute of Texas) include certain provisions, including requiring the CPRIT Program Integration Committee (program integration committee) to submit to the oversight committee a list of grant applications the program committee by majority vote approved for recommendation that meets certain requirements, including to the extent possible, giving priority to certain proposals, including a proposal that, to the best of the program integration committee's knowledge, with consultation by the chief investment officer and chief financial officer, is expected to be financially viable and to enter the market within 15 years of initial investment and provide a complete return on initial investment for the state within 20 years, as long as a grant is considered by the program integration committee to be of extraordinary scientific or medical value. Makes nonsubstantive changes. SECTION 4. Amends Section 102.255 (c-3), Health and Safety Code, as follows: (3) Requires that the written contract the oversight committee enters with the grant recipient fulfill certain requirements, including specifying certain information, including an agreement by the grant recipient to provide bi-annual reports on the anticipated timeline for a return on investment for the state's portion of the grant money, when taking into consideration the progress made by grant recipient and market conditions. Makes nonsubstantive changes. SECTION 5. Effective date: upon passage or September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2796
By: Hughes
Health & Human Services
4/14/2025
As Filed
Senate Research Center
S.B. 2796
By: Hughes
Health & Human Services
4/14/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
The Cancer Prevention and Research Institute of Texas (CPRIT) has been instrumental in funding innovative cancer research and prevention across the state. S.B. 2796 aims to align CPRIT's investment strategy more closely with its fiduciary responsibility to the state, while supporting its impressive portfolio of life-saving research.
S.B. 2796 provides statutory clarity for the agency's fiduciary responsibilities by establishing a non-binding target of at least one percent annual return on total assets, ensuring taxpayer funds are used responsibly. This conservative target helps CPRIT make wise, long-term decisions on which projects to fund, while providing fiscal guidance.
The legislation also defines key terms such as "return on investment" and "total assets" to align CPRIT's reporting with best practices, and potentially guide other agencies like DPRIT. Importantly, it preserves CPRIT's autonomy, allowing flexible and timely investment decisions without burdensome restrictions.
As proposed, S.B. 2796 amends current law relating to the Cancer Prevention Research Institute's fiscal responsibilities to the state of Texas.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 102.002, Health and Safety Code, to provide that the Cancer Prevention and Research Institute of Texas (CPRIT) is established to perform certain actions, including providing a reasonable return on investment for the state, with fiduciary responsibilities to the State of Texas, with a non-binding target of at least 1 percent returns per year, subject to the decision of the CPRIT Oversight Committee (oversight committee), and to make a nonsubstantive change.
SECTION 2. Amends Section 102.0511(c), Health and Safety Code, to require the chief executive officer of the oversight committee to hire certain officers, including one chief investment officer, and to make nonsubstantive changes.
SECTION 3. Amends Section 102.251(a-2-C), Health and Safety Code, as follows:
(C) Requires that the rules regarding the procedures for issuing a grant under Chapter 102 (Cancer Prevention and Research Institute of Texas) include certain provisions, including requiring the CPRIT Program Integration Committee (program integration committee) to submit to the oversight committee a list of grant applications the program committee by majority vote approved for recommendation that meets certain requirements, including to the extent possible, giving priority to certain proposals, including a proposal that, to the best of the program integration committee's knowledge, with consultation by the chief investment officer and chief financial officer, is expected to be financially viable and to enter the market within 15 years of initial investment and provide a complete return on initial investment for the state within 20 years, as long as a grant is considered by the program integration committee to be of extraordinary scientific or medical value. Makes nonsubstantive changes.
SECTION 4. Amends Section 102.255 (c-3), Health and Safety Code, as follows:
(3) Requires that the written contract the oversight committee enters with the grant recipient fulfill certain requirements, including specifying certain information, including an agreement by the grant recipient to provide bi-annual reports on the anticipated timeline for a return on investment for the state's portion of the grant money, when taking into consideration the progress made by grant recipient and market conditions. Makes nonsubstantive changes.
SECTION 5. Effective date: upon passage or September 1, 2025.