Texas 2025 - 89th Regular

Texas Senate Bill SB998 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Zaffirini S.B. No. 998
2	2
3	3
4	4
5	5
6	6	A BILL TO BE ENTITLED
7	7	AN ACT
8	8	relating to the creation of the Alzheimer's Prevention and Research
9	9	Institute of Texas.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
12	12	amended by adding Chapter 101A to read as follows:
13	13	CHAPTER 101A. ALZHEIMER'S PREVENTION AND RESEARCH INSTITUTE OF
14	14	TEXAS
15	15	SUBCHAPTER A. GENERAL PROVISIONS
16	16	Sec. 101A.001. DEFINITIONS. In this chapter:
17	17	(1) "Institute" means the Alzheimer's Prevention and
18	18	Research Institute of Texas.
19	19	(2) "Oversight committee" means the Alzheimer's
20	20	Prevention and Research Institute of Texas Oversight Committee.
21	21	(3) "Peer review committee" means the Alzheimer's
22	22	Prevention and Research Institute of Texas Peer Review Committee.
23	23	(4) "Program integration committee" means the
24	24	Alzheimer's Prevention and Research Institute of Texas Program
25	25	Integration Committee.
26	26	(5) "Research plan" means the Texas Alzheimer's
27	27	Prevention and Research Plan developed by the institute.
28	28	Sec. 101A.002. PURPOSES. The Alzheimer's Prevention and
29	29	Research Institute of Texas is established to:
30	30	(1) create and expedite innovation in research on
31	31	Alzheimer's disease and related disorders to improve the health of
32	32	residents of this state, enhance the potential for a medical or
33	33	scientific breakthrough in research on Alzheimer's disease and
34	34	related disorders, and enhance the research superiority of this
35	35	state regarding Alzheimer's disease and related disorders;
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 research on Alzheimer's disease and related disorders,
40	40	strategies for prevention of Alzheimer's disease and related
41	41	disorders, and the creation of exceptional jobs in this state; and
42	42	(3) develop and implement a research plan to foster
43	43	synergistic collaboration between eligible institutions of higher
44	44	education and their partners and other grant recipients in research
45	45	on Alzheimer's disease and related disorders.
46	46	Sec. 101A.003. SUNSET PROVISION. The Alzheimer's
47	47	Prevention and Research Institute of Texas is subject to Chapter
48	48	325, Government Code (Texas Sunset Act). Unless continued in
49	49	existence as provided by that chapter, the institute is abolished
50	50	and this chapter expires September 1, 2035.
51	51	Sec. 101A.004. STATE AUDITOR. Nothing in this chapter
52	52	limits the authority of the state auditor under Chapter 321,
53	53	Government Code, or other law.
54	54	SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
55	55	Sec. 101A.051. POWERS AND DUTIES. (a) The institute:
56	56	(1) may award grants to institutions of learning,
57	57	advanced medical research facilities, public or private persons,
58	58	and collaboratives in this state to further the purposes of this
59	59	chapter and Section 68, Article III, Texas Constitution, including:
60	60	(A) implementation of the research plan;
61	61	(B) research, including translational and
62	62	clinical research, into the causes of, means of prevention of, and
63	63	treatment and rehabilitation for Alzheimer's disease and related
64	64	disorders;
65	65	(C) research, including translational research,
66	66	to develop therapies, protocols, medical pharmaceuticals, or
67	67	procedures for the substantial mitigation of the symptoms of
68	68	Alzheimer's disease and related disorders;
69	69	(D) facilities, equipment, supplies, salaries,
70	70	benefits, and other costs related to research on Alzheimer's
71	71	disease and related disorders; and
72	72	(E) prevention programs and strategies to
73	73	mitigate the detrimental health impacts of Alzheimer's disease and
74	74	related disorders;
75	75	(2) shall collaborate with relevant state agencies,
76	76	coordinating councils, and consortiums to enhance health care and
77	77	research for Alzheimer's disease and related disorders;
78	78	(3) shall establish the appropriate standards and
79	79	oversight bodies to ensure money authorized under this chapter is
80	80	properly used for the purposes of this chapter;
81	81	(4) shall employ necessary staff to provide to the
82	82	institute administrative support;
83	83	(5) may contract with another state agency to share
84	84	the cost of administrative services, including grant accounting,
85	85	grant monitoring, technical and document management of the grant
86	86	application review process, legal services, and compliance
87	87	services;
88	88	(6) shall monitor grant contracts authorized by this
89	89	chapter and ensure each grant recipient complies with the terms and
90	90	conditions of the contract;
91	91	(7) shall ensure all grant proposals comply with this
92	92	chapter and rules adopted under this chapter before the proposals
93	93	are submitted to the oversight committee for approval;
94	94	(8) shall establish procedures to document compliance
95	95	by the institute, institute employees, and institute committee
96	96	members with all laws and rules governing the peer review process
97	97	and conflicts of interest; and
98	98	(9) shall create a statewide research and clinical
99	99	data registry for research related to Alzheimer's disease and
100	100	related disorders.
101	101	(b) The institute shall implement, monitor, and, as
102	102	necessary, revise the research plan.
103	103	(c) The institute may collaborate as necessary with public
104	104	or private persons, including Texas Medical Center member
105	105	institutions, institutions of higher education, advanced medical
106	106	research facilities, and collaboratives in this state in carrying
107	107	out the institute's duties under this chapter.
108	108	Sec. 101A.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
109	109	OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
110	110	hire a chief executive officer. The chief executive officer shall
111	111	perform the duties required by this chapter and the duties
112	112	designated by the oversight committee. The chief executive officer
113	113	must have a demonstrated ability to lead and develop academic,
114	114	commercial, and governmental partnerships and coalitions.
115	115	(b) The institute shall employ a chief compliance officer to
116	116	monitor compliance with this chapter and rules adopted under this
117	117	chapter and to report to the oversight committee incidents of
118	118	noncompliance.
119	119	(c) The chief executive officer may hire any other officer
120	120	position the chief executive officer determines necessary for the
121	121	institute's efficient operation.
122	122	Sec. 101A.053. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
123	123	later than January 31 of each year, the institute shall prepare and
124	124	submit to the governor, lieutenant governor, speaker of the house
125	125	of representatives, and standing committee of each house of the
126	126	legislature with primary jurisdiction over institute matters and
127	127	post on the institute's Internet website a report on:
128	128	(1) the institute's activities under this chapter;
129	129	(2) a list of recipients of grants awarded during the
130	130	preceding state fiscal year and the grant amount awarded to each
131	131	recipient;
132	132	(3) any research accomplishments a grant recipient or
133	133	the recipient's partners achieved during the preceding state fiscal
134	134	year;
135	135	(4) an overview summary of the institute's most recent
136	136	audited financial statement;
137	137	(5) an assessment of the relationship between the
138	138	institute's grants and research program strategy;
139	139	(6) a statement of the institute's strategic research
140	140	plans;
141	141	(7) an estimate of the financial cost to this state of
142	142	Alzheimer's disease and related disorders during the most recent
143	143	state fiscal year for which data is available, including the
144	144	amounts this state spent related to Alzheimer's disease and related
145	145	disorders under Medicaid, the Teacher Retirement System of Texas,
146	146	and the Employees Retirement System of Texas;
147	147	(8) a statement of the institute's compliance program
148	148	activities, including any proposed legislation or other
149	149	recommendations identified through the activities;
150	150	(9) for the preceding state fiscal year:
151	151	(A) a list of any conflict of interest requiring
152	152	recusal under this chapter or rules adopted under this chapter;
153	153	(B) any unreported conflict of interest
154	154	confirmed by an investigation conducted under Section 101A.254,
155	155	including any institute actions regarding an unreported conflict of
156	156	interest and subsequent investigation; and
157	157	(C) any waivers granted through the process
158	158	established under Section 101A.253; and
159	159	(10) the institute's future direction.
160	160	Sec. 101A.054. INDEPENDENT FINANCIAL AUDIT. (a) The
161	161	institute shall annually commission a certified public accounting
162	162	firm to perform an independent financial audit of its activities.
163	163	(b) The oversight committee shall review the annual
164	164	financial audit.
165	165	Sec. 101A.055. GRANT RECORDS; AUDIT OF ELECTRONIC GRANT
166	166	MANAGEMENT SYSTEM. (a) The institute shall maintain complete
167	167	records of:
168	168	(1) each grant application submitted to the institute,
169	169	including each application funded by the institute or withdrawn
170	170	after submission and the score assigned to each application
171	171	reviewed by the peer review committee in accordance with rules
172	172	adopted under Section 101A.302;
173	173	(2) each grant recipient's financial reports,
174	174	including the amount of matching money dedicated to the research
175	175	specified for the grant award;
176	176	(3) each grant recipient's progress reports;
177	177	(4) the identity of each principal investor and owner
178	178	of each grant recipient as provided by institute rules to determine
179	179	any conflict of interest; and
180	180	(5) the institute's review of the grant recipient's
181	181	financial reports and progress reports.
182	182	(b) The institute shall keep each record described by
183	183	Subsection (a) until at least the 15th anniversary of the record's
184	184	date of issuance.
185	185	(c) The institute shall have prepared periodic audits of any
186	186	electronic grant management system used to maintain records of
187	187	grant applications and grant awards. The institute shall timely
188	188	address each weakness identified in an audit of the system.
189	189	Sec. 101A.056. GIFTS AND GRANTS. (a) The institute may
190	190	solicit and accept gifts and grants from any source for the purposes
191	191	of this chapter.
192	192	(b) The institute may not supplement the salary of any
193	193	institute employee or officer with a gift or grant the institute
194	194	receives.
195	195	Sec. 101A.057. OFFICE LOCATION. The institute's offices
196	196	shall be located at a National Institute on Aging-Designated
197	197	Alzheimer's Disease Research Center in Texas.
198	198	Sec. 101A.058. COMPLIANCE PROGRAM; INVESTIGATIONS. (a)
199	199	The institute shall establish a compliance program operating under
200	200	the direction of the institute's chief compliance officer to
201	201	monitor compliance with this chapter and rules adopted under this
202	202	chapter and for use in reporting incidents of noncompliance to the
203	203	oversight committee.
204	204	(b) The chief compliance officer or the officer's designee
205	205	shall attend and observe meetings of the peer review committee and
206	206	the program integration committee to ensure compliance with this
207	207	chapter and rules adopted under this chapter.
208	208	(c) The chief compliance officer shall submit a written
209	209	report to the oversight committee confirming each grant application
210	210	recommendation included on the list the program integration
211	211	committee submits under Section 101A.302(a)(2) complies with the
212	212	oversight committee's rules regarding grant award procedures. The
213	213	report must contain all relevant information on:
214	214	(1) the peer review process for the grant application;
215	215	(2) the score the peer review committee assigns to the
216	216	application;
217	217	(3) adherence to the conflict-of-interest
218	218	notification and recusal process; and
219	219	(4) confirmation that a recommended grant applicant
220	220	did not make any gift or grant prohibited by Section 101A.302(f).
221	221	(d) To ensure each grant recipient complies with reporting
222	222	requirements included in the grant contract and the rules adopted
223	223	under this chapter, the institute shall implement a system to:
224	224	(1) track the dates on which grant recipient reports
225	225	are due and are received by the institute; and
226	226	(2) monitor the status of any required report a grant
227	227	recipient does not timely submit to the institute.
228	228	(e) The chief compliance officer shall:
229	229	(1) monitor compliance with this section and the
230	230	status of any required report a grant recipient does not timely
231	231	submit to the institute; and
232	232	(2) notify the institute's general counsel and the
233	233	oversight committee of a grant recipient who has not complied with
234	234	the grant contract reporting requirements to allow the institute to
235	235	suspend or terminate the contract as the institute determines
236	236	appropriate.
237	237	(f) The chief compliance officer shall establish procedures
238	238	for investigating allegations against oversight committee members,
239	239	institute employees or contractors, grant applicants, or grant
240	240	recipients for fraud, waste, or abuse of state resources. The
241	241	procedures must include:
242	242	(1) private access to the compliance program office,
243	243	such as a telephone hotline; and
244	244	(2) to the extent possible, preservation of the
245	245	confidentiality of communications and the anonymity of a person who
246	246	submits a compliance report related to fraud, waste, or abuse or
247	247	participates in a compliance investigation.
248	248	SUBCHAPTER C. OVERSIGHT COMMITTEE
249	249	Sec. 101A.101. COMPOSITION OF OVERSIGHT COMMITTEE. (a)
250	250	The oversight committee is the institute's governing body.
251	251	(b) The oversight committee is composed of the following
252	252	nine members:
253	253	(1) three members appointed by the governor;
254	254	(2) three members appointed by the lieutenant
255	255	governor; and
256	256	(3) three members appointed by the speaker of the
257	257	house of representatives.
258	258	(c) The oversight committee members must represent this
259	259	state's geographic and cultural diversity.
260	260	(d) In making appointments to the oversight committee, the
261	261	governor, lieutenant governor, and speaker of the house of
262	262	representatives:
263	263	(1) must each appoint at least one person who is a
264	264	physician or a scientist with extensive experience working with
265	265	Alzheimer's disease or related disorders or in the field of public
266	266	health; and
267	267	(2) should attempt to include persons affected by
268	268	Alzheimer's disease or related disorders or family members or
269	269	caregivers of patients with Alzheimer's disease or related
270	270	disorders.
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. 101A.102. REMOVAL. (a) It is a ground for removal
282	282	from the oversight committee that a member:
283	283	(1) is ineligible for membership under Section
284	284	101A.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 oversight committee action is not
293	293	affected by the fact that it is taken when a ground for removal of a
294	294	committee member exists.
295	295	(c) If the chief executive officer has knowledge that a
296	296	potential ground for removal of a committee member exists, the
297	297	chief executive officer shall notify the presiding officer of the
298	298	oversight committee of the potential ground. The presiding officer
299	299	shall then notify the appointing authority and the attorney general
300	300	that a potential ground for removal exists. If the potential ground
301	301	for removal involves the presiding officer, the chief executive
302	302	officer shall notify the next highest ranking officer of the
303	303	oversight committee, who shall then notify the appointing authority
304	304	and the attorney general that a potential ground for removal
305	305	exists.
306	306	Sec. 101A.103. TERMS; VACANCY. (a) Oversight committee
307	307	members appointed by the governor, lieutenant governor, and speaker
308	308	of the house serve at the pleasure of the appointing authority for
309	309	staggered six-year terms, with the terms of three members expiring
310	310	on January 31 of each odd-numbered year.
311	311	(b) If a vacancy occurs on the oversight committee, the
312	312	appropriate appointing authority shall appoint a successor in the
313	313	same manner as the original appointment to serve for the remainder
314	314	of the unexpired term. The appropriate appointing authority shall
315	315	appoint the successor not later than the 30th day after the date the
316	316	vacancy occurs.
317	317	Sec. 101A.104. OFFICERS. (a) The oversight committee
318	318	shall elect a presiding officer and assistant presiding officer
319	319	from among its members every two years. The oversight committee may
320	320	elect additional officers from among its members.
321	321	(b) The presiding officer and assistant presiding officer
322	322	may not serve in the position to which the officer was elected for
323	323	consecutive terms.
324	324	(c) The oversight committee shall:
325	325	(1) establish and approve duties and responsibilities
326	326	for committee officers; and
327	327	(2) develop and implement policies that distinguish
328	328	the responsibilities of the oversight committee and the committee's
329	329	officers from the responsibilities of the chief executive officer
330	330	and institute employees.
331	331	Sec. 101A.105. EXPENSES. An oversight committee member is
332	332	not entitled to compensation but is entitled to reimbursement for
333	333	actual and necessary expenses incurred in attending committee
334	334	meetings or performing other official duties authorized by the
335	335	presiding officer.
336	336	Sec. 101A.106. MEETINGS. (a) The oversight committee
337	337	shall hold at least one public meeting each quarter of the calendar
338	338	year, with appropriate notice and a formal public comment period.
339	339	(b) The oversight committee may conduct a closed meeting in
340	340	accordance with Subchapter E, Chapter 551, Government Code, to
341	341	discuss issues related to:
342	342	(1) managing, acquiring, or selling securities or
343	343	other revenue-sharing obligations realized under the standards
344	344	established as required by Section 101A.305; and
345	345	(2) an ongoing compliance investigation into issues
346	346	related to fraud, waste, or abuse of state resources.
347	347	Sec. 101A.107. POWERS AND DUTIES. (a) The oversight
348	348	committee shall:
349	349	(1) hire a chief executive officer;
350	350	(2) annually set priorities for each grant program
351	351	established under this chapter; and
352	352	(3) consider the priorities set under Subdivision (2)
353	353	in awarding grants under this chapter.
354	354	(b) The oversight committee shall adopt a code of conduct
355	355	applicable to each oversight committee member, program integration
356	356	committee member, peer review committee member, and institute
357	357	employee that includes provisions prohibiting the member,
358	358	employee, or member's or employee's spouse from:
359	359	(1) accepting or soliciting any gift, favor, or
360	360	service that could reasonably influence the member or employee in
361	361	the discharge of official duties or that the member, employee, or
362	362	spouse knows or should know is being offered with the intent to
363	363	influence the member's or employee's official conduct;
364	364	(2) accepting employment or engaging in any business
365	365	or professional activity that would reasonably require or induce
366	366	the member or employee to disclose confidential information
367	367	acquired in the member's or employee's official position;
368	368	(3) accepting other employment or compensation that
369	369	could reasonably impair the member's or employee's independent
370	370	judgment in the performance of official duties;
371	371	(4) holding a personal investment or financial
372	372	interest that could reasonably create a substantial conflict
373	373	between the private interests and official duties of the member or
374	374	employee;
375	375	(5) intentionally or knowingly soliciting, accepting,
376	376	or agreeing to accept any benefit for exercising the member's
377	377	official powers or performing the member's or employee's official
378	378	duties in favor of another;
379	379	(6) directly or indirectly leasing to an entity that
380	380	receives a grant from the institute any property, capital
381	381	equipment, employee, or service;
382	382	(7) submitting a grant application for funding by the
383	383	institute;
384	384	(8) serving on the board of directors of an
385	385	organization established with a grant from the institute; or
386	386	(9) serving on the board of directors of a grant
387	387	recipient.
388	388	Sec. 101A.108. RULEMAKING AUTHORITY. The oversight
389	389	committee may adopt rules to administer this chapter.
390	390	Sec. 101A.109. FINANCIAL STATEMENT REQUIRED. Each
391	391	oversight committee member shall file with the chief compliance
392	392	officer a verified financial statement complying with Sections
393	393	572.022, 572.023, 572.024, 572.025, 572.0251, and 572.0252,
394	394	Government Code, as required of a state officer by Section 572.021
395	395	of that code.
396	396	SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
397	397	Sec. 101A.151. PEER REVIEW COMMITTEE. (a) The oversight
398	398	committee shall establish a peer review committee. The chief
399	399	executive officer, with approval by a simple majority of the
400	400	oversight committee members, shall appoint as members to the peer
401	401	review committee:
402	402	(1) experts in fields related to Alzheimer's disease
403	403	or related disorders, including research, health care, disease
404	404	treatment and prevention, and other study areas; and
405	405	(2) trained patient advocates who meet the
406	406	qualifications adopted under Subsection (c).
407	407	(b) The oversight committee shall adopt a written policy on
408	408	in-state or out-of-state residency requirements for peer review
409	409	committee members.
410	410	(c) The oversight committee shall adopt rules regarding the
411	411	qualifications required of a trained patient advocate for
412	412	membership on the peer review committee. The rules must require the
413	413	trained patient advocate to successfully complete science-based
414	414	training.
415	415	(d) A peer review committee member may receive an
416	416	honorarium. Subchapter B, Chapter 2254, Government Code, does not
417	417	apply to an honorarium the member receives under this chapter.
418	418	(e) The chief executive officer, in consultation with the
419	419	oversight committee, shall adopt a policy regarding honoraria and
420	420	document any change in the amount of honoraria paid to a peer review
421	421	committee member, including information explaining the basis for
422	422	that change.
423	423	(f) A peer review committee member may not serve on the
424	424	board of directors or other governing board of an entity receiving a
425	425	grant from the institute.
426	426	(g) Peer review committee members serve for terms as
427	427	determined by the chief executive officer.
428	428	Sec. 101A.152. PROGRAM INTEGRATION COMMITTEE. (a) The
429	429	institute shall establish a program integration committee to carry
430	430	out the duties assigned under this chapter.
431	431	(b) The program integration committee is composed of:
432	432	(1) the chief executive officer, who serves as the
433	433	presiding officer of the program integration committee;
434	434	(2) three senior-level institute employees
435	435	responsible for program policy and oversight, appointed by the
436	436	chief executive officer with the approval of a majority of the
437	437	oversight committee members; and
438	438	(3) the executive commissioner or the executive
439	439	commissioner's designee.
440	440	Sec. 101A.153. HIGHER EDUCATION ADVISORY COMMITTEE. (a)
441	441	The higher education advisory committee is composed of the
442	442	following members:
443	443	(1) two members appointed by the chancellor of The
444	444	University of Texas System to represent:
445	445	(A) The University of Texas Southwestern Medical
446	446	Center;
447	447	(B) The University of Texas Medical Branch at
448	448	Galveston;
449	449	(C) The University of Texas Health Science Center
450	450	at Houston;
451	451	(D) The University of Texas Health Science Center
452	452	at San Antonio; or
453	453	(E) The University of Texas Health Center at
454	454	Tyler;
455	455	(2) one member appointed by the chancellor of The
456	456	Texas A&M University System to represent:
457	457	(A) The Texas A&M University System Health
458	458	Science Center; or
459	459	(B) the teaching hospital for The Texas A&M
460	460	Health Science Center College of Medicine;
461	461	(3) one member appointed by the chancellor of the
462	462	Texas Tech University System to represent the Texas Tech University
463	463	Health Sciences Center;
464	464	(4) one member appointed by the chancellor of the
465	465	University of Houston System to represent the system;
466	466	(5) one member appointed by the chancellor of the
467	467	Texas State University System to represent the system;
468	468	(6) one member appointed by the chancellor of the
469	469	University of North Texas System to represent the system;
470	470	(7) one member appointed by the president of Baylor
471	471	College of Medicine; and
472	472	(8) one member appointed by the president of Rice
473	473	University.
474	474	(b) The higher education advisory committee shall advise
475	475	the oversight committee on issues, opportunities, the role of
476	476	higher education, and other subjects involving research on
477	477	Alzheimer's disease and related disorders.
478	478	Sec. 101A.154. AD HOC ADVISORY COMMITTEE. (a) The
479	479	oversight committee, as necessary, may create additional ad hoc
480	480	advisory committees composed of experts to advise the oversight
481	481	committee on issues relating to prevention of or research on
482	482	Alzheimer's disease and related disorders or other issues related
483	483	to Alzheimer's disease or related disorders.
484	484	(b) Ad hoc committee members serve for the terms the
485	485	oversight committee determines.
486	486	Sec. 101A.155. EXPENSES. Members of the higher education
487	487	advisory committee or an ad hoc advisory committee created under
488	488	Section 101A.154 serve without compensation but are entitled to
489	489	reimbursement for actual and necessary expenses incurred in
490	490	attending committee meetings or performing other official duties
491	491	authorized by the presiding officer.
492	492	SUBCHAPTER E. ALZHEIMER'S PREVENTION AND RESEARCH FUND
493	493	Sec. 101A.201. ALZHEIMER'S PREVENTION AND RESEARCH FUND.
494	494	(a) In this subchapter, "fund" means the Alzheimer's Prevention
495	495	and Research Fund established under Section 68, Article III, Texas
496	496	Constitution. The fund is a special fund in the treasury outside
497	497	the general revenue fund to be administered by the institute. The
498	498	institute may use money in the fund as authorized by this chapter
499	499	without further legislative appropriation.
500	500	(b) The fund consists of:
501	501	(1) money transferred to the fund under Section 68,
502	502	Article III, Texas Constitution;
503	503	(2) money the legislature appropriates, credits, or
504	504	transfers to the fund;
505	505	(3) gifts and grants, including grants from the
506	506	federal government, and other donations received for the fund;
507	507	(4) patent, royalty, and license fees and other income
508	508	received under a contract executed as provided by Section 101A.304;
509	509	and
510	510	(5) investment earnings and interest earned on amounts
511	511	credited to the fund.
512	512	(c) The fund may only be used for the purposes authorized
513	513	under Section 68, Article III, Texas Constitution, including:
514	514	(1) the award of grants for research on or prevention
515	515	of Alzheimer's disease and related disorders and research
516	516	facilities in this state to conduct that research;
517	517	(2) the purchase of, subject to the institute's
518	518	approval, research facilities by or for a state agency or grant
519	519	recipient; and
520	520	(3) the operation of the institute.
521	521	Sec. 101A.202. ROLE OF TEXAS TREASURY SAFEKEEPING TRUST
522	522	COMPANY. (a) In this section, "trust company" means the Texas
523	523	Treasury Safekeeping Trust Company.
524	524	(b) The trust company shall invest the fund in accordance
525	525	with this section.
526	526	(c) The trust company shall hold and invest the fund, and
527	527	any accounts established in the fund, for the institute taking into
528	528	consideration the authorized uses of money in the fund. The fund
529	529	may be invested with the state treasury pool and may be pooled with
530	530	other state assets for investment purposes.
531	531	(d) The overall objective for the investment of the fund is
532	532	to maintain sufficient liquidity to meet the needs of the fund while
533	533	striving to preserve the purchasing power of the fund over a full
534	534	economic cycle.
535	535	(e) The trust company has any power necessary to accomplish
536	536	the purposes of managing and investing the fund's assets. In
537	537	managing the fund's assets, through procedures and subject to
538	538	restrictions the trust company considers appropriate, the trust
539	539	company may acquire, exchange, sell, supervise, manage, or retain
540	540	any kind of investment that a prudent investor, exercising
541	541	reasonable care, skill, and caution, would acquire or retain in
542	542	light of the purposes, terms, distribution requirements, and other
543	543	circumstances of the fund then prevailing, taking into
544	544	consideration the investment of all the fund's assets rather than a
545	545	single investment.
546	546	(f) The expenses of managing the fund shall be paid from the
547	547	fund.
548	548	(g) The trust company annually shall provide to the
549	549	institute and the oversight committee a written report on the
550	550	investments of the fund.
551	551	(h) The trust company shall adopt an appropriate written
552	552	investment policy for the fund. The trust company shall present the
553	553	investment policy to the investment advisory board established
554	554	under Section 404.028, Government Code. The investment advisory
555	555	board shall submit to the trust company recommendations regarding
556	556	the policy.
557	557	(i) The institute annually shall provide to the trust
558	558	company a forecast of the cash flows into and out of the fund. The
559	559	institute shall provide updates to the forecasts as appropriate to
560	560	ensure the trust company is able to achieve the objective specified
561	561	by Subsection (d).
562	562	(j) The trust company shall disburse money from the fund as
563	563	the institute directs. The institute shall direct disbursements
564	564	from the fund on a semiannual schedule specified by the institute
565	565	and not more frequently than twice in any state fiscal year.
566	566	Sec. 101A.203. AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
567	567	(a) A grant recipient awarded money from the fund may use the money
568	568	for research consistent with the purposes of this chapter and in
569	569	accordance with a contract between the grant recipient and the
570	570	institute.
571	571	(b) Except as otherwise provided by this section, grant
572	572	money awarded under this chapter may be used for authorized
573	573	expenses, including:
574	574	(1) honoraria;
575	575	(2) salaries and benefits;
576	576	(3) travel;
577	577	(4) conference fees and expenses;
578	578	(5) consumable supplies;
579	579	(6) operating expenses;
580	580	(7) contracted research and development;
581	581	(8) capital equipment; and
582	582	(9) construction or renovation of state or private
583	583	facilities.
584	584	(c) A grant recipient awarded money under this chapter for
585	585	research on Alzheimer's disease or related disorders may not spend
586	586	more than five percent of the money for indirect costs. In this
587	587	subsection, "indirect costs" means business expenses not readily
588	588	identified with a particular grant, contract, project, function, or
589	589	activity that are necessary for the general operation of the
590	590	organization or the performance of the organization's activities.
591	591	(d) Not more than five percent of the total amount of grant
592	592	money awarded under this chapter in a state fiscal year may be used
593	593	during that year for facility purchase, construction, remodel, or
594	594	renovation purposes, and those expenditures must benefit research
595	595	on Alzheimer's disease or related disorders.
596	596	(e) Not more than 10 percent of the total amount of grant
597	597	money awarded under this chapter in a state fiscal year may be used
598	598	during that year for prevention projects and strategies to mitigate
599	599	the incidence of Alzheimer's disease or related disorders.
600	600	SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
601	601	Sec. 101A.251. CONFLICT OF INTEREST. (a) The oversight
602	602	committee shall adopt conflict-of-interest rules, based on
603	603	standards applicable to members of scientific review committees of
604	604	the National Institutes of Health, to govern oversight committee
605	605	members, program integration committee members, peer review
606	606	committee members, and institute employees.
607	607	(b) An oversight committee member, program integration
608	608	committee member, peer review committee member, or institute
609	609	employee shall recuse the member or employee, as provided by
610	610	Section 101A.252(a), (b), or (c), as applicable, if the member or
611	611	employee, or a person who is related to the member or employee
612	612	within the second degree of affinity or consanguinity, has a
613	613	professional or financial interest in an entity awarded a grant or
614	614	applying for a grant from the institute.
615	615	(c) For purposes of Subsection (b), a person has a
616	616	professional interest in an entity awarded a grant or applying for a
617	617	grant from the institute if the person:
618	618	(1) is a member of the board of directors, another
619	619	governing board, or any committee of the entity, or of a foundation
620	620	or similar organization affiliated with the entity, during the same
621	621	grant cycle;
622	622	(2) serves as an elected or appointed officer of the
623	623	entity;
624	624	(3) is an employee of or is negotiating future
625	625	employment with the entity;
626	626	(4) represents the entity;
627	627	(5) is a professional associate of a primary member of
628	628	the entity's project team;
629	629	(6) is, or within the preceding six years has been, a
630	630	student, postdoctoral associate, or part of a laboratory research
631	631	group for a primary member of the entity's project team;
632	632	(7) is engaged or is actively planning to be engaged in
633	633	collaboration with a primary member of the entity's project team;
634	634	or
635	635	(8) has long-standing scientific differences or
636	636	disagreements with a primary member of the entity's project team,
637	637	and those differences or disagreements:
638	638	(A) are known to the professional community; and
639	639	(B) could be perceived as affecting objectivity.
640	640	(d) For purposes of Subsection (b), a person has a financial
641	641	interest in an entity awarded a grant or applying for a grant from
642	642	the institute if the person:
643	643	(1) directly or indirectly owns or controls an
644	644	ownership interest, including sharing in profits, proceeds, or
645	645	capital gains, in an entity awarded a grant or applying for a grant
646	646	from the institute; or
647	647	(2) could reasonably foresee that an action taken by
648	648	the oversight committee, the program integration committee, a peer
649	649	review committee, or the institute could result in a financial
650	650	benefit to the person.
651	651	(e) Nothing in this chapter limits the oversight
652	652	committee's authority to adopt additional conflict-of-interest
653	653	standards.
654	654	Sec. 101A.252. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
655	655	(a) If an oversight committee member or program integration
656	656	committee member has a conflict of interest described by Section
657	657	101A.251 regarding an application before the member for review or
658	658	other action, the member shall:
659	659	(1) provide written notice to the chief executive
660	660	officer and the presiding officer of the oversight committee or the
661	661	next ranking member of the committee if the presiding officer has
662	662	the conflict of interest;
663	663	(2) disclose the conflict of interest in an open
664	664	meeting of the oversight committee; and
665	665	(3) recuse the member from participating in the
666	666	review, discussion, deliberation, and vote on the application and
667	667	from accessing information regarding the matter to be decided.
668	668	(b) If a peer review committee member has a conflict of
669	669	interest described by Section 101A.251 regarding an application
670	670	before the member's committee for review or other action, the
671	671	member shall:
672	672	(1) provide written notice to the chief executive
673	673	officer of the conflict of interest; and
674	674	(2) recuse the member from participating in the
675	675	review, discussion, deliberation, and vote on the application and
676	676	from accessing information regarding the matter to be decided.
677	677	(c) If an institute employee has a conflict of interest
678	678	described by Section 101A.251 regarding an application before the
679	679	employee for review or other action, the employee:
680	680	(1) shall provide written notice to the chief
681	681	executive officer of the conflict of interest;
682	682	(2) shall recuse the employee from participating in
683	683	the review of the application; and
684	684	(3) may not access information regarding the matter to
685	685	be decided.
686	686	(d) An oversight committee member, program integration
687	687	committee member, peer review committee member, or institute
688	688	employee with a conflict of interest may seek a waiver as provided
689	689	by Section 101A.253.
690	690	(e) An oversight committee member, program integration
691	691	committee member, peer review committee member, or institute
692	692	employee who reports a potential conflict of interest or another
693	693	impropriety or self-dealing of the member or employee and who fully
694	694	complies with the recommendations of the institute's general
695	695	counsel and recusal requirements is considered in compliance with
696	696	the conflict-of-interest provisions of this chapter. The member or
697	697	employee is subject to other applicable laws, rules, requirements,
698	698	and prohibitions.
699	699	(f) An oversight committee member, program integration
700	700	committee member, peer review committee member, or institute
701	701	employee who intentionally violates this section is subject to
702	702	removal from further participation in the institute's grant review
703	703	process.
704	704	Sec. 101A.253. EXCEPTIONAL CIRCUMSTANCES REQUIRING
705	705	PARTICIPATION. The oversight committee shall adopt rules governing
706	706	the waiver of the conflict-of-interest requirements of this chapter
707	707	under exceptional circumstances for an oversight committee member,
708	708	program integration committee member, peer review committee
709	709	member, or institute employee. The rules must:
710	710	(1) authorize the chief executive officer or an
711	711	oversight committee member to propose granting a waiver by
712	712	submitting to the oversight committee's presiding officer a written
713	713	statement about the conflict of interest, the exceptional
714	714	circumstance requiring the waiver, and any proposed limitations to
715	715	the waiver;
716	716	(2) require a proposed waiver to be publicly reported
717	717	at an oversight committee meeting;
718	718	(3) require a majority vote of the oversight committee
719	719	members present and voting to grant a waiver;
720	720	(4) require any waiver granted to be included in the
721	721	annual report required by Section 101A.053; and
722	722	(5) require the institute to retain documentation of
723	723	each waiver granted.
724	724	Sec. 101A.254. INVESTIGATION OF UNREPORTED CONFLICTS OF
725	725	INTEREST. (a) An oversight committee member, program integration
726	726	committee member, peer review committee member, or institute
727	727	employee who becomes aware of an unreported potential conflict of
728	728	interest described by Section 101A.251 shall immediately notify the
729	729	chief executive officer of the potential conflict of interest. On
730	730	receipt of the notification, the chief executive officer shall
731	731	notify the institute's general counsel and the oversight
732	732	committee's presiding officer, who shall determine the nature and
733	733	extent of any unreported conflict.
734	734	(b) A grant applicant seeking an investigation regarding
735	735	whether a prohibited conflict of interest was not reported shall
736	736	file a written request with the chief executive officer. The
737	737	applicant must:
738	738	(1) include in the request all facts regarding the
739	739	alleged conflict of interest; and
740	740	(2) submit the request not later than the 30th day
741	741	after the date the chief executive officer presents to the
742	742	oversight committee final funding recommendations for the affected
743	743	grant cycle.
744	744	(c) On receipt of notification of an alleged conflict of
745	745	interest under Subsection (a) or (b), the institute's general
746	746	counsel shall:
747	747	(1) investigate the matter; and
748	748	(2) provide to the chief executive officer and the
749	749	oversight committee's presiding officer an opinion that includes:
750	750	(A) a statement of facts;
751	751	(B) a determination of whether a conflict of
752	752	interest or another impropriety or self-dealing exists; and
753	753	(C) if the opinion provides that a conflict of
754	754	interest or another impropriety or self-dealing exists,
755	755	recommendations for an appropriate course of action.
756	756	(d) If the conflict of interest, impropriety, or
757	757	self-dealing involves the oversight committee's presiding officer,
758	758	the institute's general counsel shall provide the opinion to the
759	759	next ranking oversight committee member who is not involved with
760	760	the conflict of interest, impropriety, or self-dealing.
761	761	(e) After receiving the opinion and consulting with the
762	762	oversight committee's presiding officer, the chief executive
763	763	officer shall take action regarding the recusal of the individual
764	764	from any discussion of or access to information related to the
765	765	conflict of interest or other recommended action related to the
766	766	impropriety or self-dealing. If the alleged conflict of interest,
767	767	impropriety, or self-dealing is held by, or is an act of, the chief
768	768	executive officer, the presiding officer of the oversight committee
769	769	shall take actions regarding the recusal or other action.
770	770	Sec. 101A.255. FINAL DETERMINATION OF UNREPORTED CONFLICT
771	771	OF INTEREST. (a) The chief executive officer or, if applicable,
772	772	the oversight committee's presiding officer shall make a
773	773	determination regarding the existence of an unreported conflict of
774	774	interest described by Section 101A.251 or other impropriety or
775	775	self-dealing. The determination must specify any actions to be
776	776	taken to address the conflict of interest, impropriety, or
777	777	self-dealing, including:
778	778	(1) reconsideration of the application; or
779	779	(2) referral of the application to another peer review
780	780	committee for review.
781	781	(b) The determination made under Subsection (a) is
782	782	considered final unless three or more oversight committee members
783	783	request that the issue be added to the agenda of the oversight
784	784	committee.
785	785	(c) The chief executive officer or, if applicable, the
786	786	oversight committee's presiding officer, shall provide to the grant
787	787	applicant requesting the investigation written notice of the final
788	788	determination, including any further actions to be taken.
789	789	(d) Unless specifically determined by the chief executive
790	790	officer or, if applicable, the presiding officer of the oversight
791	791	committee, or the oversight committee, the validity of an action
792	792	taken on a grant application is not affected by the fact that an
793	793	individual who failed to report a conflict of interest participated
794	794	in the action.
795	795	SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
796	796	Sec. 101A.301. PEER REVIEW PROCESS FOR GRANT AWARD. The
797	797	institute shall establish a peer review process to evaluate and
798	798	recommend all grants the oversight committee awards under this
799	799	chapter.
800	800	Sec. 101A.302. GRANT AWARD RULES AND PROCEDURES. (a) The
801	801	oversight committee shall adopt rules regarding the procedure for
802	802	awarding grants to an applicant under this chapter. The rules must
803	803	require:
804	804	(1) the peer review committee to score grant
805	805	applications and make recommendations to the program integration
806	806	committee and the oversight committee regarding the award of
807	807	grants, including providing a prioritized list that:
808	808	(A) ranks the grant applications in the order the
809	809	peer review committee determines applications should be funded; and
810	810	(B) includes information explaining each grant
811	811	applicant's qualification under the peer review committee's
812	812	standards for recommendation; and
813	813	(2) the program integration committee to submit to the
814	814	oversight committee a list of grant applications the program
815	815	integration committee by majority vote approved for recommendation
816	816	that:
817	817	(A) includes documentation on the factors the
818	818	program integration committee considered in making the
819	819	recommendations;
820	820	(B) is substantially based on the list submitted
821	821	by the peer review committee under Subdivision (1); and
822	822	(C) to the extent possible, gives priority to
823	823	applications including proposals that:
824	824	(i) may lead to immediate or long-term
825	825	medical and scientific breakthroughs in the areas of prevention or
826	826	treatment for Alzheimer's disease and related disorders;
827	827	(ii) strengthen and enhance fundamental
828	828	scientific research on Alzheimer's disease and related disorders;
829	829	(iii) ensure a comprehensive coordinated
830	830	approach to research on Alzheimer's disease and related disorders;
831	831	(iv) are interdisciplinary or
832	832	interinstitutional;
833	833	(v) align with state priorities and needs,
834	834	including priorities and needs outlined in other state agency
835	835	strategic plans, or that address federal or other major research
836	836	sponsors' priorities in scientific or technological research in the
837	837	fields of Alzheimer's disease and related disorders;
838	838	(vi) are matched with money provided by a
839	839	private or nonprofit entity or institution of higher education;
840	840	(vii) are collaborative between any
841	841	combination of private and nonprofit entities, public or private
842	842	agencies or institutions in this state, and public or private
843	843	institutions outside this state;
844	844	(viii) benefit the residents of this state,
845	845	including a demonstrable economic development benefit to this
846	846	state;
847	847	(ix) enhance research superiority at
848	848	institutions of higher education in this state by creating new
849	849	research superiority, attracting existing research superiority
850	850	from institutions outside this state and other research entities,
851	851	or attracting from outside this state additional researchers and
852	852	resources;
853	853	(x) expedite innovation and product
854	854	development, attract private sector entities to stimulate a
855	855	substantial increase in high-quality jobs, and increase higher
856	856	education applied science or technology research capabilities; and
857	857	(xi) address the goals of the research
858	858	plan.
859	859	(b) A peer review committee member may not attempt to use
860	860	the committee member's official position to influence a decision to
861	861	approve or award a grant or contract to the committee member's
862	862	employer.
863	863	(c) A program integration committee member may not discuss a
864	864	grant applicant recommendation with an oversight committee member
865	865	unless the program integration committee has submitted the list
866	866	required under Subsection (a)(2).
867	867	(d) Two-thirds of the oversight committee members present
868	868	and voting must vote to approve each grant award recommendation of
869	869	the program integration committee. If the oversight committee does
870	870	not approve a grant award recommendation of the program integration
871	871	committee, a statement explaining the reasons the recommendation
872	872	was not followed must be included in the minutes of the meeting.
873	873	(e) The oversight committee may not award more than $300
874	874	million in grants under this chapter in a state fiscal year.
875	875	(f) The oversight committee may not award a grant to an
876	876	applicant who has made a gift or grant to the institute, an
877	877	oversight committee member, or an institute employee on or after
878	878	January 1, 2026. This section does not apply to gifts, fees,
879	879	honoraria, or other items also excepted under Section 36.10, Penal
880	880	Code.
881	881	Sec. 101A.303. MULTIYEAR PROJECTS. (a) The oversight
882	882	committee may approve the award of grant money for a multiyear
883	883	project.
884	884	(b) The oversight committee shall specify the total amount
885	885	of money approved to fund the multiyear project. For purposes of
886	886	this chapter, the total amount is considered to have been awarded in
887	887	the state fiscal year the peer review committee approved the
888	888	project. The institute shall disburse only the money to be spent
889	889	during that fiscal year. The institute shall disburse the
890	890	remaining grant money as the money is needed in each subsequent
891	891	state fiscal year.
892	892	Sec. 101A.304. CONTRACT TERMS. (a) Before disbursing
893	893	grant money awarded under this chapter, the institute shall execute
894	894	a written contract with the grant recipient. The contract shall:
895	895	(1) specify that except for awards to state agencies
896	896	or public institutions of higher education, if all or any part of
897	897	the grant amount is used to build a capital improvement:
898	898	(A) the state retains a lien or other interest in
899	899	the capital improvement in proportion to the percentage of the
900	900	grant amount used to pay for the capital improvement; and
901	901	(B) the grant recipient shall, if the capital
902	902	improvement is sold:
903	903	(i) repay to this state the grant money used
904	904	to pay for the capital improvement, with interest at the rate and
905	905	according to the other terms provided by the contract; and
906	906	(ii) share with this state a proportionate
907	907	amount of any profit realized from the sale;
908	908	(2) specify that if the grant recipient has not used
909	909	awarded grant money for the purposes for which the grant was
910	910	intended, the recipient shall repay that grant amount and any
911	911	related interest applicable under the contract to this state at the
912	912	agreed rate and on the agreed terms;
913	913	(3) specify that if the grant recipient fails to meet
914	914	the terms and conditions of the contract, the institute may
915	915	terminate the contract using the written process prescribed in the
916	916	contract and require the recipient to repay the awarded grant money
917	917	and any related interest applicable under the contract to this
918	918	state at the agreed rate and on the agreed terms;
919	919	(4) include terms relating to intellectual property
920	920	rights consistent with the standards developed by the oversight
921	921	committee under Section 101A.305;
922	922	(5) require, in accordance with Subsection (b), the
923	923	grant recipient to dedicate an amount of matching money equal to
924	924	one-half of the amount of the grant awarded and specify the amount
925	925	of matching money to be dedicated;
926	926	(6) specify the period in which the grant award must be
927	927	spent; and
928	928	(7) include the specific deliverables of the project
929	929	that is the subject of the grant proposal.
930	930	(b) Before the institute may disburse grant money, the grant
931	931	recipient must certify the recipient has available an unexpended
932	932	amount of money equal to one-half of the grant amount dedicated to
933	933	the research specified in the grant proposal. The institute shall
934	934	adopt rules specifying a grant recipient's obligations under this
935	935	chapter. At a minimum, the rules must:
936	936	(1) allow an institution of higher education or a
937	937	private or independent institution of higher education, as those
938	938	terms are defined by Section 61.003, Education Code, or a research
939	939	institute or center affiliated with the institution, to credit
940	940	toward the recipient's matching money the dollar amount equivalent
941	941	to the difference between the indirect cost rate authorized by the
942	942	federal government for research grants awarded to the recipient and
943	943	the indirect cost rate authorized by Section 101A.203(c);
944	944	(2) specify that:
945	945	(A) the recipient of more than one grant award
946	946	under this chapter may provide matching money certification at an
947	947	institutional level;
948	948	(B) the recipient of a multiyear grant award may
949	949	yearly certify matching money; and
950	950	(C) grant money may not be disbursed to the
951	951	recipient until the annual certification of the matching money has
952	952	been approved;
953	953	(3) specify that money for certification purposes may
954	954	include:
955	955	(A) federal money;
956	956	(B) the fair market value of drug development
957	957	support provided to the recipient by the National Institutes of
958	958	Health or other similar programs;
959	959	(C) this state's money;
960	960	(D) other states' money; and
961	961	(E) nongovernmental money, including money from
962	962	private sources, foundation grants, gifts, and donations;
963	963	(4) specify that the following items may not be used
964	964	for certification purposes:
965	965	(A) in-kind costs;
966	966	(B) volunteer services provided to the
967	967	recipient;
968	968	(C) noncash contributions;
969	969	(D) the recipient's preexisting real estate,
970	970	including buildings, facilities, and land;
971	971	(E) deferred giving, including a charitable
972	972	remainder annuity trust, charitable remainder unitrust, or pooled
973	973	income fund; or
974	974	(F) any other items the institute determines;
975	975	(5) require the recipient's certification to be
976	976	included in the grant award contract;
977	977	(6) specify that the recipient's failure to provide
978	978	certification serves as grounds for terminating the grant award
979	979	contract;
980	980	(7) require the recipient to maintain adequate
981	981	documentation supporting the source and use of the money required
982	982	by this subsection and to provide documentation to the institute on
983	983	request; and
984	984	(8) require the institute to establish a procedure to
985	985	annually review the documentation supporting the source and use of
986	986	money reported in the required certification.
987	987	(c) The institute shall establish a policy on advance
988	988	payments to grant recipients.
989	989	(d) The oversight committee shall adopt rules to administer
990	990	this section.
991	991	Sec. 101A.305. PATENT ROYALTIES AND LICENSE REVENUES PAID
992	992	TO STATE. (a) The oversight committee shall establish standards
993	993	requiring all grant awards to be subject to an intellectual
994	994	property agreement that allows this state to collect royalties,
995	995	income, and other benefits, including interest or proceeds
996	996	resulting from securities and equity ownership, realized as a
997	997	result of projects undertaken with grant money awarded under this
998	998	chapter.
999	999	(b) In determining this state's interest in any
1000	1000	intellectual property rights, the oversight committee shall
1001	1001	balance the opportunity of this state to benefit from the patents,
1002	1002	royalties, licenses, and other benefits that result from basic
1003	1003	research, therapy development, and clinical trials with the need to
1004	1004	ensure that essential medical research is not unreasonably hindered
1005	1005	by the intellectual property agreement and that the agreement does
1006	1006	not unreasonably remove the incentive of the individual researcher,
1007	1007	research team, or institution.
1008	1008	(c) The oversight committee may authorize the institute to
1009	1009	execute a contract with one or more qualified third parties for
1010	1010	assistance with the management, accounting, and disposition of this
1011	1011	state's interest in securities, equities, royalties, income, and
1012	1012	other benefits realized from grant money awarded under this
1013	1013	chapter. The institute shall implement practices and procedures
1014	1014	for the management, accounting, and disposition of securities,
1015	1015	equities, royalties, income, and other benefits the institute
1016	1016	determines are in this state's best interest.
1017	1017	Sec. 101A.306. PREFERENCE FOR TEXAS SUPPLIERS. In a good
1018	1018	faith effort to achieve a goal of more than 50 percent of purchases
1019	1019	from suppliers in this state, the oversight committee shall
1020	1020	establish standards to ensure grant recipients purchase goods and
1021	1021	services from suppliers in this state to the extent reasonably
1022	1022	possible.
1023	1023	Sec. 101A.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The
1024	1024	oversight committee shall establish standards to ensure grant
1025	1025	recipients purchase goods and services from historically
1026	1026	underutilized businesses as defined by Section 2161.001,
1027	1027	Government Code, and any other applicable state law.
1028	1028	Sec. 101A.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.
1029	1029	(a) The institute shall require as a condition of a grant awarded
1030	1030	under this chapter that the grant recipient submit to regular
1031	1031	inspection reviews of the grant project by institute employees to
1032	1032	ensure compliance with the terms of the grant contract and ongoing
1033	1033	progress, including the scientific merit of the research.
1034	1034	(b) The chief executive officer shall report at least
1035	1035	annually to the oversight committee on the progress and continued
1036	1036	merit of the projects awarded grants by the institute.
1037	1037	Sec. 101A.309. MEDICAL AND RESEARCH ETHICS. A project
1038	1038	awarded a grant under this chapter must comply with all applicable
1039	1039	federal and state laws regarding the conduct of the research or a
1040	1040	prevention project.
1041	1041	Sec. 101A.310. PUBLIC INFORMATION; CONFIDENTIAL
1042	1042	INFORMATION. (a) The following information is public information
1043	1043	and may be disclosed under Chapter 552, Government Code:
1044	1044	(1) a grant applicant's name and address;
1045	1045	(2) the amount of money requested in an applicant's
1046	1046	grant proposal;
1047	1047	(3) the type of research on Alzheimer's disease or
1048	1048	related disorders to be addressed under a grant proposal; and
1049	1049	(4) any other information the institute designates
1050	1050	with the consent of a grant applicant.
1051	1051	(b) To protect the actual or potential value of information
1052	1052	submitted to the institute by an applicant for or recipient of a
1053	1053	grant under this chapter, the following information submitted by
1054	1054	the applicant or recipient is confidential and is not subject to
1055	1055	disclosure under Chapter 552, Government Code, or any other law:
1056	1056	(1) all information, other than the information
1057	1057	described under Subsection (a), contained in a grant application,
1058	1058	peer review evaluation, award contract, or progress report relating
1059	1059	to a product, device, or process, the application or use of the
1060	1060	product, device, or process, and all technological and scientific
1061	1061	information, including computer programs, developed wholly or
1062	1062	partly by the applicant or recipient, regardless of whether
1063	1063	patentable or capable of being registered under copyright or
1064	1064	trademark laws, that has a potential for being sold, traded, or
1065	1065	licensed for a fee; and
1066	1066	(2) the plans, specifications, blueprints, and
1067	1067	designs, including related proprietary information, of a
1068	1068	scientific research and development facility.
1069	1069	(c) The following information is confidential and not
1070	1070	subject to disclosure under Chapter 552, Government Code:
1071	1071	(1) information that directly or indirectly reveals
1072	1072	the identity of an individual who reports fraud, waste, or abuse of
1073	1073	state resources to the institute's compliance program office, seeks
1074	1074	guidance from the office, or participates in an investigation
1075	1075	conducted under the compliance program;
1076	1076	(2) information that directly or indirectly reveals
1077	1077	the identity of an individual who is alleged to have or may have
1078	1078	planned, initiated, or participated in activities specified in a
1079	1079	report submitted to the office if, after completing an
1080	1080	investigation, the office determines the report to be
1081	1081	unsubstantiated or without merit; and
1082	1082	(3) other information collected or produced in a
1083	1083	compliance program investigation if releasing the information
1084	1084	would interfere with an ongoing compliance investigation.
1085	1085	(d) Subsection (c) does not apply to information related to
1086	1086	an individual who consents to the information's disclosure.
1087	1087	(e) Information made confidential or excepted from public
1088	1088	disclosure by this section may be made available, on request and in
1089	1089	compliance with applicable laws and procedures, to the following:
1090	1090	(1) a law enforcement agency or prosecutor;
1091	1091	(2) a governmental agency responsible for
1092	1092	investigating the matter specified in a compliance report,
1093	1093	including the Texas Workforce Commission civil rights division or
1094	1094	the Equal Employment Opportunity Commission; or
1095	1095	(3) a committee member or institute employee who is
1096	1096	responsible under institutional policy for a compliance program
1097	1097	investigation or for a review of a compliance program
1098	1098	investigation.
1099	1099	(f) A disclosure under Subsection (e) is not a voluntary
1100	1100	disclosure for purposes of Section 552.007, Government Code.
1101	1101	(g) The institute shall post on the institute's Internet
1102	1102	website records that pertain specifically to any gift, grant, or
1103	1103	other consideration provided to the institute, an institute
1104	1104	employee, or an oversight committee member, in the employee's or
1105	1105	member's official capacity. The posted information must include
1106	1106	each donor's name and the amount and date of the donor's donation.
1107	1107	This section is not applicable to gifts, fees, honoraria, or other
1108	1108	items also excepted under Section 36.10, Penal Code.
1109	1109	SECTION 2. Section 51.955(c), Education Code, is amended to
1110	1110	read as follows:
1111	1111	(c) Subsection (b)(1) does not apply to a research contract
1112	1112	between an institution of higher education and the Cancer
1113	1113	Prevention and Research Institute of Texas or Alzheimer's
1114	1114	Prevention and Research Institute of Texas.
1115	1115	SECTION 3. Section 61.003(6), Education Code, is amended to
1116	1116	read as follows:
1117	1117	(6) "Other agency of higher education" means The
1118	1118	University of Texas System, System Administration; The University
1119	1119	of Texas at El Paso Museum; Texas Epidemic Public Health Institute
1120	1120	at The University of Texas Health Science Center at Houston; The
1121	1121	Texas A&M University System, Administrative and General Offices;
1122	1122	Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
1123	1123	Rodent and Predatory Animal Control Service (a part of the Texas A&M
1124	1124	AgriLife Extension Service); Texas A&M Engineering Experiment
1125	1125	Station (including the Texas A&M Transportation Institute); Texas
1126	1126	A&M Engineering Extension Service; Texas A&M Forest Service; Texas
1127	1127	Division of Emergency Management; Texas Tech University Museum;
1128	1128	Texas State University System, System Administration; Sam Houston
1129	1129	Memorial Museum; Panhandle-Plains Historical Museum; Cotton
1130	1130	Research Committee of Texas; Texas Water Resources Institute; Texas
1131	1131	A&M Veterinary Medical Diagnostic Laboratory; Alzheimer's
1132	1132	Prevention and Research Institute of Texas; and any other unit,
1133	1133	division, institution, or agency which shall be so designated by
1134	1134	statute or which may be established to operate as a component part
1135	1135	of any public senior college or university, or which may be so
1136	1136	classified as provided in this chapter.
1137	1137	SECTION 4. Section 572.003(c), Government Code, is amended
1138	1138	to read as follows:
1139	1139	(c) The term means a member of:
1140	1140	(1) the Public Utility Commission of Texas;
1141	1141	(2) the Texas Commission on Environmental Quality;
1142	1142	(3) the Texas Alcoholic Beverage Commission;
1143	1143	(4) the Finance Commission of Texas;
1144	1144	(5) the Texas Facilities Commission;
1145	1145	(6) the Texas Board of Criminal Justice;
1146	1146	(7) the board of trustees of the Employees Retirement
1147	1147	System of Texas;
1148	1148	(8) the Texas Transportation Commission;
1149	1149	(9) the Texas Department of Insurance;
1150	1150	(10) the Parks and Wildlife Commission;
1151	1151	(11) the Public Safety Commission;
1152	1152	(12) the Texas Ethics Commission;
1153	1153	(13) the State Securities Board;
1154	1154	(14) the Texas Water Development Board;
1155	1155	(15) the governing board of a public senior college or
1156	1156	university as defined by Section 61.003, Education Code, or of The
1157	1157	University of Texas Southwestern Medical Center, The University of
1158	1158	Texas Medical Branch at Galveston, The University of Texas Health
1159	1159	Science Center at Houston, The University of Texas Health Science
1160	1160	Center at San Antonio, The University of Texas M. D. Anderson Cancer
1161	1161	Center, The University of Texas Health Science Center at Tyler,
1162	1162	University of North Texas Health Science Center at Fort Worth,
1163	1163	Texas Tech University Health Sciences Center, Texas State Technical
1164	1164	College--Harlingen, Texas State Technical College--Marshall, Texas
1165	1165	State Technical College--Sweetwater, or Texas State Technical
1166	1166	College--Waco;
1167	1167	(16) the Texas Higher Education Coordinating Board;
1168	1168	(17) the Texas Workforce Commission;
1169	1169	(18) the board of trustees of the Teacher Retirement
1170	1170	System of Texas;
1171	1171	(19) the Credit Union Commission;
1172	1172	(20) the School Land Board;
1173	1173	(21) the board of the Texas Department of Housing and
1174	1174	Community Affairs;
1175	1175	(22) the Texas Racing Commission;
1176	1176	(23) the State Board of Dental Examiners;
1177	1177	(24) the Texas Medical Board;
1178	1178	(25) the Board of Pardons and Paroles;
1179	1179	(26) the Texas State Board of Pharmacy;
1180	1180	(27) the Department of Information Resources
1181	1181	governing board;
1182	1182	(28) the board of the Texas Department of Motor
1183	1183	Vehicles;
1184	1184	(29) the Texas Real Estate Commission;
1185	1185	(30) the board of directors of the State Bar of Texas;
1186	1186	(31) the Bond Review Board;
1187	1187	(32) the Health and Human Services Commission;
1188	1188	(33) the Texas Funeral Service Commission;
1189	1189	(34) the board of directors of a river authority
1190	1190	created under the Texas Constitution or a statute of this state;
1191	1191	(35) the Texas Lottery Commission; [or]
1192	1192	(36) the Cancer Prevention and Research Institute of
1193	1193	Texas; or
1194	1194	(37) the Alzheimer's Prevention and Research Institute
1195	1195	of Texas.
1196	1196	SECTION 5. (a) Not later than December 31, 2025, the
1197	1197	appropriate appointing authority shall appoint the members to the
1198	1198	Alzheimer's Prevention and Research Institute of Texas Oversight
1199	1199	Committee as required by Section 101A.101, Health and Safety Code,
1200	1200	as added by this Act. The oversight committee may not act until a
1201	1201	majority of the appointed members have taken office.
1202	1202	(b) Notwithstanding Section 101A.101, Health and Safety
1203	1203	Code, as added by this Act, in making the initial appointments under
1204	1204	that section, the governor, lieutenant governor, and speaker of the
1205	1205	house of representatives shall, as applicable, designate one member
1206	1206	of the Alzheimer's Prevention and Research Institute of Texas
1207	1207	appointed by that person to serve a term expiring January 31, 2027,
1208	1208	one member appointed by that person to serve a term expiring January
1209	1209	31, 2029, and one member appointed by that person to serve a term
1210	1210	expiring January 31, 2031.
1211	1211	SECTION 6. If the voters approve the constitutional
1212	1212	amendment proposed by the 89th Legislature, Regular Session, 2025,
1213	1213	providing for the establishment of the Alzheimer's Prevention and
1214	1214	Research Institute of Texas, establishing the Alzheimer's
1215	1215	Prevention and Research Fund to provide money for research on and
1216	1216	prevention and treatment of Alzheimer's disease and related
1217	1217	disorders, and transferring $3 billion from state general revenue
1218	1218	to that fund, the Alzheimer's Prevention and Research Institute of
1219	1219	Texas established by Chapter 101A, Health and Safety Code, as added
1220	1220	by this Act, is eligible for funding to be deposited under the
1221	1221	authority of Section 68, Article III, Texas Constitution, for the
1222	1222	institute to engage in any activities serving the purposes of that
1223	1223	constitutional provision.
1224	1224	SECTION 7. This Act takes effect December 1, 2025, but only
1225	1225	if the constitutional amendment proposed by the 89th Legislature,
1226	1226	Regular Session, 2025, providing for the establishment of the
1227	1227	Alzheimer's Prevention and Research Institute of Texas,
1228	1228	establishing the Alzheimer's Prevention and Research Fund to
1229	1229	provide money for research on and prevention and treatment of
1230	1230	Alzheimer's disease and related disorders in this state, and
1231	1231	transferring state general revenue to that fund is approved by the
1232	1232	voters. If that amendment is not approved by the voters, this Act
1233	1233	has no effect.