Relating to the creation of the Dementia Prevention and Research Institute of Texas.
relating to the creation of the Dementia Prevention and Research
Institute of Texas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle E, Title 2, Health and Safety Code, is
amended by adding Chapter 101A to read as follows:
CHAPTER 101A. DEMENTIA PREVENTION AND RESEARCH INSTITUTE OF TEXAS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 101A.001. DEFINITIONS. In this chapter:
(1) “Institute” means the Dementia Prevention and
Research Institute of Texas.
(2) “Oversight committee” means the Dementia
Prevention and Research Institute of Texas Oversight Committee.
(3) “Peer review committee” means the Dementia
Prevention and Research Institute of Texas Peer Review Committee.
(4) “Program integration committee” means the
Dementia Prevention and Research Institute of Texas Program
Integration Committee.
Sec. 101A.002. PURPOSES. The Dementia Prevention and
Research Institute of Texas is established to:
(1) create and expedite innovation in research on
dementia and related disorders to improve the health of residents
of this state, enhance the potential for a medical or scientific
breakthrough in research on dementia and related disorders, and
enhance the research superiority of this state regarding dementia
and related disorders; and
(2) attract, create, or expand research capabilities
of eligible institutions of higher education and other public or
private entities by awarding grants to promote a substantial
increase in research on dementia and related disorders, strategies
for prevention of dementia and related disorders, and the creation
of exceptional jobs in this state.
Sec. 101A.003. SUNSET PROVISION. The Dementia Prevention
and Research Institute of Texas is subject to Chapter 325,
Government Code (Texas Sunset Act). Unless continued in existence
as provided by that chapter, the institute is abolished and this
chapter expires September 1, 2035.
Sec. 101A.004. STATE AUDITOR. Nothing in this chapter
limits the authority of the state auditor under Chapter 321,
Government Code, or other law.
SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
Sec. 101A.051. POWERS AND DUTIES. The institute:
(1) may award grants to institutions of learning,
advanced medical research facilities, public or private persons,
and collaboratives in this state to further the purposes of this
chapter and Section 68, Article III, Texas Constitution, including:
(A) research, including translational and
clinical research, into the causes of, means of prevention of, and
treatment and rehabilitation for dementia and related disorders;
(B) research, including translational research,
to develop therapies, protocols, medical pharmaceuticals, or
procedures for the substantial mitigation of the symptoms of
dementia and related disorders;
(C) facilities, equipment, and other costs
related to research on dementia and related disorders; and
(D) prevention programs and strategies to
mitigate the detrimental health impacts of dementia and related
disorders;
(2) may collaborate with relevant state agencies,
coordinating councils, and consortiums to enhance health care and
research for dementia and related disorders;
(3) shall establish the appropriate standards and
oversight bodies to ensure money authorized under this chapter is
properly used for the purposes of this chapter;
(4) may employ necessary staff to provide to the
institute administrative support;
(5) may contract with another state agency to share
the cost of administrative services, including grant accounting,
grant monitoring, technical and document management of the grant
application review process, legal services, and compliance
services;
(6) shall monitor grant contracts authorized by this
chapter and ensure each grant recipient complies with the terms and
conditions of the contract;
(7) shall ensure all grant proposals comply with this
chapter and rules adopted under this chapter before the proposals
are submitted to the oversight committee for approval; and
(8) shall establish procedures to document compliance
by the institute, institute employees, and institute committee
members with all laws and rules governing the peer review process
and conflicts of interest.
Sec. 101A.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE
OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall
hire a chief executive officer. The chief executive officer shall
perform the duties required by this chapter and the duties
designated by the oversight committee. The chief executive officer
must have a demonstrated ability to lead and develop academic,
commercial, and governmental partnerships and coalitions.
(b) The institute shall employ a chief compliance officer to
monitor compliance with this chapter and rules adopted under this
chapter and to report to the oversight committee incidents of
noncompliance.
(c) The chief executive officer may hire any other officer
position the chief executive officer determines necessary for the
institute’s efficient operation.
Sec. 101A.053. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not
later than January 31 of each year, the institute shall prepare and
submit to the governor, lieutenant governor, speaker of the house
of representatives, and standing committee of each house of the
legislature with primary jurisdiction over institute matters and
post on the institute’s Internet website a report on:
(1) the institute’s activities under this chapter;
(2) a list of recipients of grants awarded during the
preceding state fiscal year and the grant amount awarded to each
recipient;
(3) any research accomplishments a grant recipient or
the recipient’s partners achieved during the preceding state fiscal
year;
(4) an overview summary of the institute’s most recent
audited financial statement;
(5) an assessment of the relationship between the
institute’s grants and research program strategy;
(6) an estimate of the financial cost to this state of
dementia and related disorders during the most recent state fiscal
year for which data is available;
(7) a statement of the institute’s compliance program
activities, including any proposed legislation or other
recommendations identified through the activities;
(8) for the preceding state fiscal year:
(A) a list of any conflict of interest requiring
recusal under this chapter or rules adopted under this chapter;
(B) any unreported conflict of interest
confirmed by an investigation conducted under Section 101A.254,
including any institute actions regarding an unreported conflict of
interest and subsequent investigation; and
(C) any waivers granted through the process
established under Section 101A.253; and
(9) the institute’s future direction.
Sec. 101A.054. INDEPENDENT FINANCIAL AUDIT. (a) The
institute shall annually commission a certified public accounting
firm to perform an independent financial audit of its activities.
The institute shall provide the audit to the comptroller.
(b) The comptroller shall:
(1) review and evaluate the audit and annually issue a
public report of that review; and
(2) make recommendations concerning the institute’s
financial practices and performance.
(c) The oversight committee shall review the annual
financial audit, the comptroller’s public report and
recommendations, and the financial practices of the institute.
Sec. 101A.055. GRANT RECORDS; AUDIT OF ELECTRONIC GRANT
MANAGEMENT SYSTEM. (a) The institute shall maintain complete
records of:
(1) each grant application submitted to the institute,
including each application funded by the institute or withdrawn
after submission and the score the peer review committee assigns to
each reviewed application in accordance with rules adopted under
Section 101A.302;
(2) each grant recipient’s financial reports,
including the amount of matching money dedicated to the research
specified for the grant award;
(3) each grant recipient’s progress reports;
(4) the identity of each principal investor and owner
of each grant recipient as provided by institute rules to determine
any conflict of interest; and
(5) the institute’s review of the grant recipient’s
financial reports and progress reports.
(b) The institute shall keep each record described by
Subsection (a) until at least the 15th anniversary of the record’s
date of issuance.
(c) The institute shall have prepared periodic audits of any
electronic grant management system used to maintain records of
grant applications and grant awards. The institute shall timely
address each weakness identified in an audit of the system.
Sec. 101A.056. GIFTS AND GRANTS. (a) The institute may
solicit and accept gifts and grants from any source for the purposes
of this chapter.
(b) The institute may not supplement the salary of any
institute employee or officer with a gift or grant the institute
receives.
Sec. 101A.057. PROHIBITED OFFICE LOCATION. An institute
employee may not have an office located in a facility owned by an
entity receiving or applying to receive money from the institute.
Sec. 101A.058. COMPLIANCE PROGRAM; INVESTIGATIONS. (a)
The institute shall establish a compliance program operating under
the direction of the institute’s chief compliance officer to
monitor compliance with this chapter and rules adopted under this
chapter and for use in reporting incidents of noncompliance to the
oversight committee.
(b) The chief compliance officer or the officer’s designee
shall attend and observe meetings of the peer review committee and
the program integration committee to ensure compliance with this
chapter and rules adopted under this chapter.
(c) The chief compliance officer shall submit a written
report to the oversight committee confirming each grant application
recommendation included on the list the program integration
committee submits under Section 101A.302(a)(2) complies with the
oversight committee’s rules regarding grant award procedures. The
report must contain all relevant information on:
(1) the peer review process for the grant application;
(2) the score the peer review committee assigns to the
application;
(3) adherence to the conflict-of-interest
notification and recusal process; and
(4) confirmation that a recommended grant applicant
did not make any gift or grant prohibited by Section 101A.302(f).
(d) To ensure each grant recipient complies with reporting
requirements included in the grant contract and the rules adopted
under this chapter, the institute shall implement a system to:
(1) track the dates on which grant recipient reports
are due and are received by the institute; and
(2) monitor the status of any required report a grant
recipient does not timely submit to the institute.
(e) The chief compliance officer shall:
(1) monitor compliance with this section and the
status of any required report a grant recipient does not timely
submit to the institute; and
(2) notify the institute’s general counsel and the
oversight committee of a grant recipient who has not complied with
the grant contract reporting requirements to allow the institute to
suspend or terminate the contract as the institute determines
appropriate.
(f) The chief compliance officer shall establish procedures
for investigating allegations against oversight committee members,
institute employees or contractors, grant applicants, or grant
recipients for fraud, waste, or abuse of state resources. The
procedures must include:
(1) private access to the compliance program office,
such as a telephone hotline; and
(2) to the extent possible, preservation of the
confidentiality of communications and the anonymity of a person who
submits a compliance report related to fraud, waste, or abuse or
participates in a compliance investigation.
SUBCHAPTER C. OVERSIGHT COMMITTEE
Sec. 101A.101. COMPOSITION OF OVERSIGHT COMMITTEE. (a)
The oversight committee is the institute’s governing body.
(b) The oversight committee is composed of the following
nine members:
(1) three members appointed by the governor;
(2) three members appointed by the lieutenant
governor; and
(3) three members appointed by the speaker of the
house of representatives.
(c) The oversight committee members must represent this
state’s geographic and cultural diversity.
(d) In making appointments to the oversight committee, the
governor, lieutenant governor, and speaker of the house of
representatives:
(1) must each appoint at least one person who is a
physician or a scientist with extensive experience working with
dementia or related disorders or in the field of public health; and
(2) should attempt to include persons affected by
dementia or related disorders or family members or caregivers of
patients with dementia or related disorders.
(e) A person may not be an oversight committee member if the
person or the person’s spouse:
(1) is employed by or participates in the management
of an entity receiving money from the institute;
(2) owns or controls, directly or indirectly, an
interest in an entity receiving money from the institute; or
(3) uses or receives a substantial amount of tangible
goods, services, or money from the institute, other than
reimbursement authorized by this chapter for oversight committee
membership, attendance, or expenses.
Sec. 101A.102. REMOVAL. (a) It is a ground for removal
from the oversight committee that a member:
(1) is ineligible for membership under Section
101A.101(e);
(2) cannot, because of illness or disability,
discharge the member’s duties for a substantial part of the member’s
term; or
(3) is absent from more than half of the regularly
scheduled oversight committee meetings the member is eligible to
attend during a calendar year without an excuse approved by a
majority vote of the committee.
(b) The validity of an oversight committee action is not
affected by the fact that the action is taken when a ground for
removal of a committee member exists.
(c) If the chief executive officer has knowledge that a
potential ground for removal of a committee member exists, the
chief executive officer shall notify the presiding officer of the
oversight committee of the potential ground. The presiding officer
shall then notify the appointing authority and the attorney general
that a potential ground for removal exists. If the potential ground
for removal involves the presiding officer, the chief executive
officer shall notify the next highest ranking officer of the
oversight committee, who shall then notify the appointing authority
and the attorney general that a potential ground for removal
exists.
Sec. 101A.103. TERMS; VACANCY. (a) Oversight committee
members appointed by the governor, lieutenant governor, and speaker
of the house serve at the pleasure of the appointing authority for
staggered six-year terms, with the terms of three members expiring
on January 31 of each odd-numbered year.
(b) If a vacancy occurs on the oversight committee, the
appropriate appointing authority shall appoint a successor in the
same manner as the original appointment to serve for the remainder
of the unexpired term. The appropriate appointing authority shall
appoint the successor not later than the 30th day after the date the
vacancy occurs.
Sec. 101A.104. OFFICERS. (a) The oversight committee
shall elect a presiding officer and assistant presiding officer
from among its members every two years. The oversight committee may
elect additional officers from among its members.
(b) The presiding officer and assistant presiding officer
may not serve in the position to which the officer was elected for
consecutive terms.
(c) The oversight committee shall:
(1) establish and approve duties and responsibilities
for committee officers; and
(2) develop and implement policies that distinguish
the responsibilities of the oversight committee and the committee’s
officers from the responsibilities of the chief executive officer
and institute employees.
Sec. 101A.105. EXPENSES. An oversight committee member is
not entitled to compensation but is entitled to reimbursement for
actual and necessary expenses incurred in attending committee
meetings or performing other official duties authorized by the
presiding officer.
Sec. 101A.106. MEETINGS. (a) The oversight committee
shall hold at least one public meeting each quarter of the calendar
year, with appropriate notice and a formal public comment period.
(b) The oversight committee may conduct a closed meeting in
accordance with Subchapter E, Chapter 551, Government Code, to
discuss issues related to:
(1) managing, acquiring, or selling securities or
other revenue-sharing obligations realized under the standards
established as required by Section 101A.305; and
(2) an ongoing compliance investigation into issues
related to fraud, waste, or abuse of state resources.
Sec. 101A.107. POWERS AND DUTIES. (a) The oversight
committee shall:
(1) hire a chief executive officer;
(2) annually set priorities for each grant program
established under this chapter; and
(3) consider the priorities set under Subdivision (2)
in awarding grants under this chapter.
(b) The oversight committee shall adopt a code of conduct
applicable to each oversight committee member, program integration
committee member, peer review committee member, and institute
employee that includes provisions prohibiting the member,
employee, or member’s or employee’s spouse from:
(1) accepting or soliciting any gift, favor, or
service that could reasonably influence the member or employee in
the discharge of official duties or that the member, employee, or
spouse knows or should know is being offered with the intent to
influence the member’s or employee’s official conduct;
(2) accepting employment or engaging in any business
or professional activity that would reasonably require or induce
the member or employee to disclose confidential information
acquired in the member’s or employee’s official position;
(3) accepting other employment or compensation that
could reasonably impair the member’s or employee’s independent
judgment in the performance of official duties;
(4) holding a personal investment or financial
interest that could reasonably create a substantial conflict
between the private interests and official duties of the member or
employee;
(5) intentionally or knowingly soliciting, accepting,
or agreeing to accept any benefit for exercising the member’s
official powers or performing the member’s or employee’s official
duties in favor of another;
(6) directly or indirectly leasing to an entity that
receives a grant from the institute any property, capital
equipment, employee, or service;
(7) submitting a grant application for funding by the
institute;
(8) serving on the board of directors of an
organization established with a grant from the institute; or
(9) serving on the board of directors of a grant
recipient.
Sec. 101A.108. RULEMAKING AUTHORITY. The oversight
committee may adopt rules to administer this chapter.
Sec. 101A.109. FINANCIAL STATEMENT REQUIRED. Each
oversight committee member shall file with the chief compliance
officer a verified financial statement complying with Sections
572.022, 572.023, 572.024, 572.025, 572.0251, and 572.0252,
Government Code, as required of a state officer by Section 572.021
of that code.
SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
Sec. 101A.151. PEER REVIEW COMMITTEE. (a) The oversight
committee shall establish a peer review committee. The chief
executive officer, with approval by a simple majority of the
oversight committee members, shall appoint as members to the peer
review committee:
(1) experts in fields related to dementia or related
disorders, including research, health care, dementia treatment and
prevention, and other study areas; and
(2) trained patient advocates who meet the
qualifications adopted under Subsection (c).
(b) The oversight committee shall adopt a written policy on
in-state or out-of-state residency requirements for peer review
committee members.
(c) The oversight committee shall adopt rules regarding the
qualifications required of a trained patient advocate for
membership on the peer review committee. The rules must require the
trained patient advocate to successfully complete science-based
training.
(d) A peer review committee member may receive an
honorarium. Subchapter B, Chapter 2254, Government Code, does not
apply to an honorarium the member receives under this chapter.
(e) The chief executive officer, in consultation with the
oversight committee, shall adopt a policy regarding honoraria and
document any change in the amount of honoraria paid to a peer review
committee member, including information explaining the basis for
that change.
(f) A peer review committee member may not serve on the
board of directors or other governing board of an entity receiving a
grant from the institute.
(g) Peer review committee members serve for terms as
determined by the chief executive officer.
Sec. 101A.152. PROGRAM INTEGRATION COMMITTEE. (a) The
institute shall establish a program integration committee to carry
out the duties assigned under this chapter.
(b) The program integration committee is composed of:
(1) the chief executive officer, who serves as the
presiding officer of the program integration committee;
(2) three senior-level institute employees
responsible for program policy and oversight, appointed by the
chief executive officer with the approval of a majority of the
oversight committee members; and
(3) the executive commissioner or the executive
commissioner’s designee.
Sec. 101A.153. HIGHER EDUCATION ADVISORY COMMITTEE. (a)
The higher education advisory committee is composed of the
following members:
(1) one member appointed by the chancellor of The
University of Texas System;
(2) one member appointed by the chancellor of The
Texas A&M University System;
(3) one member appointed by the chancellor of the
Texas Tech University System;
(4) one member appointed by the chancellor of the
University of Houston System;
(5) one member appointed by the chancellor of the
Texas State University System;
(6) one member appointed by the chancellor of the
University of North Texas System;
(7) one member appointed by the president of Baylor
College of Medicine; and
(8) one member appointed by the president of Rice
University.
(b) The higher education advisory committee shall advise
the oversight committee on issues, opportunities, the role of
higher education, and other subjects involving research on dementia
and related disorders.
Sec. 101A.154. AD HOC ADVISORY COMMITTEE. (a) The
oversight committee, as necessary, may create additional ad hoc
advisory committees composed of experts to advise the oversight
committee on issues relating to prevention of or research on
dementia and related disorders or other issues related to dementia
or related disorders.
(b) Ad hoc committee members serve for the terms the
oversight committee determines.
Sec. 101A.155. EXPENSES. Members of the higher education
advisory committee created under Section 101A.153 or an ad hoc
advisory committee created under Section 101A.154 serve without
compensation but are entitled to reimbursement for actual and
necessary expenses incurred in attending committee meetings or
performing other official duties authorized by the presiding
officer.
SUBCHAPTER E. DEMENTIA PREVENTION AND RESEARCH FUND
Sec. 101A.201. DEMENTIA PREVENTION AND RESEARCH FUND. (a)
In this subchapter, “fund” means the Dementia Prevention and
Research Fund established under Section 68, Article III, Texas
Constitution. The fund is a special fund in the treasury outside
the general revenue fund to be administered by the institute. The
institute may use money in the fund as authorized by this chapter
without further legislative appropriation.
(b) The fund consists of:
(1) money transferred to the fund under Section 68,
Article III, Texas Constitution;
(2) money the legislature appropriates, credits, or
transfers to the fund;
(3) gifts and grants, including grants from the
federal government, and other donations received for the fund;
(4) patent, royalty, and license fees and other income
received under a contract executed as provided by Section 101A.304;
and
(5) investment earnings and interest earned on amounts
credited to the fund.
(c) The fund may only be used for the purposes authorized
under Section 68, Article III, Texas Constitution, including:
(1) the award of grants for research on or prevention
of dementia and related disorders and research facilities in this
state to conduct that research;
(2) the purchase of, subject to the institute’s
approval, research facilities by or for a state agency or grant
recipient; and
(3) the operation of the institute.
Sec. 101A.202. ROLE OF TEXAS TREASURY SAFEKEEPING TRUST
COMPANY. (a) In this section, “trust company” means the Texas
Treasury Safekeeping Trust Company.
(b) The trust company shall invest the fund in accordance
with this section.
(c) The trust company shall hold and invest the fund, and
any accounts established in the fund, for the institute taking into
consideration the authorized uses of money in the fund. The fund
may be invested with the state treasury pool and may be pooled with
other state assets for investment purposes.
(d) The overall objective for the investment of the fund is
to maintain sufficient liquidity to meet the needs of the fund while
striving to preserve the purchasing power of the fund over a full
economic cycle.
(e) The trust company has any power necessary to accomplish
the purposes of managing and investing the fund’s assets. In
managing the fund’s assets, through procedures and subject to
restrictions the trust company considers appropriate, the trust
company may acquire, exchange, sell, supervise, manage, or retain
any kind of investment that a prudent investor, exercising
reasonable care, skill, and caution, would acquire or retain in
light of the purposes, terms, distribution requirements, and other
circumstances of the fund then prevailing, taking into
consideration the investment of all the fund’s assets rather than a
single investment.
(f) The expenses of managing the fund shall be paid from the
fund.
(g) The trust company annually shall provide to the
institute and the oversight committee a written report on the
investments of the fund.
(h) The trust company shall adopt an appropriate written
investment policy for the fund. The trust company shall present the
investment policy to the investment advisory board established
under Section 404.028, Government Code. The investment advisory
board shall submit to the trust company recommendations regarding
the policy.
(i) The institute annually shall provide to the trust
company a forecast of the cash flows into and out of the fund. The
institute shall provide updates to the forecasts as appropriate to
ensure the trust company is able to achieve the objective specified
by Subsection (d).
(j) The trust company shall disburse money from the fund as
the institute directs. The institute shall direct disbursements
from the fund on a semiannual schedule specified by the institute
and not more frequently than twice in any state fiscal year.
Sec. 101A.203. AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
(a) A grant recipient awarded money from the fund may use the money
for research consistent with the purposes of this chapter and in
accordance with a contract between the grant recipient and the
institute.
(b) Except as otherwise provided by this section, grant
money awarded under this chapter may be used for authorized
expenses, including:
(1) honoraria;
(2) travel;
(3) conference fees and expenses;
(4) consumable supplies;
(5) operating expenses;
(6) contracted research and development;
(7) capital equipment; and
(8) construction or renovation of state or private
facilities.
(c) A grant recipient awarded money under this chapter for
research on dementia or related disorders may not spend more than
five percent of the money for indirect costs. In this subsection,
“indirect costs” means business expenses not readily identified
with a particular grant, contract, project, function, or activity
that are necessary for the general operation of the organization or
the performance of the organization’s activities.
(d) Not more than five percent of the total amount of grant
money awarded under this chapter in a state fiscal year may be used
during that year for facility purchase, construction, remodel, or
renovation purposes, and those expenditures must benefit research
on dementia or related disorders.
(e) Not more than 10 percent of the total amount of grant
money awarded under this chapter in a state fiscal year may be used
during that year for prevention projects and strategies to mitigate
the incidence of dementia or related disorders.
SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
Sec. 101A.251. CONFLICT OF INTEREST. (a) The oversight
committee shall adopt conflict-of-interest rules, based on
standards applicable to members of scientific review committees of
the National Institutes of Health, to govern oversight committee
members, program integration committee members, peer review
committee members, and institute employees.
(b) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee shall recuse the member or employee, as provided by
Section 101A.252(a), (b), or (c), as applicable, if the member or
employee, or a person who is related to the member or employee
within the second degree of affinity or consanguinity, has a
professional or financial interest in an entity awarded a grant or
applying for a grant from the institute.
(c) For purposes of Subsection (b), a person has a
professional interest in an entity awarded a grant or applying for a
grant from the institute if the person:
(1) is a member of the board of directors, another
governing board, or any committee of the entity, or of a foundation
or similar organization affiliated with the entity, during the same
grant cycle;
(2) serves as an elected or appointed officer of the
entity;
(3) is an employee of or is negotiating future
employment with the entity;
(4) represents the entity;
(5) is a professional associate of a primary member of
the entity’s project team;
(6) is, or within the preceding six years has been, a
student, postdoctoral associate, or part of a laboratory research
group for a primary member of the entity’s project team;
(7) is engaged or is actively planning to be engaged in
collaboration with a primary member of the entity’s project team;
or
(8) has long-standing scientific differences or
disagreements with a primary member of the entity’s project team,
and those differences or disagreements:
(A) are known to the professional community; and
(B) could be perceived as affecting objectivity.
(d) For purposes of Subsection (b), a person has a financial
interest in an entity awarded a grant or applying for a grant from
the institute if the person:
(1) directly or indirectly owns or controls an
ownership interest, including sharing in profits, proceeds, or
capital gains, in an entity awarded a grant or applying for a grant
from the institute; or
(2) could reasonably foresee that an action taken by
the oversight committee, the program integration committee, a peer
review committee, or the institute could result in a financial
benefit to the person.
(e) Nothing in this chapter limits the oversight
committee’s authority to adopt additional conflict-of-interest
standards.
Sec. 101A.252. DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
(a) If an oversight committee member or program integration
committee member has a conflict of interest described by Section
101A.251 regarding an application before the member for review or
other action, the member:
(1) shall provide written notice to the chief
executive officer and the presiding officer of the oversight
committee or the next ranking member of the committee if the
presiding officer has the conflict of interest;
(2) shall disclose the conflict of interest in an open
meeting of the oversight committee;
(3) shall recuse themselves from participating in the
review, discussion, deliberation, and vote on the application; and
(4) may not access information regarding the matter to
be decided.
(b) If a peer review committee member has a conflict of
interest described by Section 101A.251 regarding an application
before the member’s committee for review or other action, the
member:
(1) shall provide written notice to the chief
executive officer of the conflict of interest;
(2) shall recuse themselves from participating in the
review, discussion, deliberation, and vote on the application; and
(3) may not access information regarding the matter to
be decided.
(c) If an institute employee has a conflict of interest
described by Section 101A.251 regarding an application before the
employee for review or other action, the employee:
(1) shall provide written notice to the chief
executive officer of the conflict of interest;
(2) shall recuse themselves from participating in the
review of the application; and
(3) may not access information regarding the matter to
be decided.
(d) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee with a conflict of interest may seek a waiver as provided
by Section 101A.253.
(e) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee who reports a potential conflict of interest or another
impropriety or self-dealing of the member or employee and who fully
complies with the recommendations of the institute’s general
counsel and recusal requirements is considered in compliance with
the conflict-of-interest provisions of this chapter. The member or
employee is subject to other applicable laws, rules, requirements,
and prohibitions.
(f) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee who intentionally violates this section is subject to
removal from further participation in the institute’s grant review
process.
Sec. 101A.253. EXCEPTIONAL CIRCUMSTANCES REQUIRING
PARTICIPATION. The oversight committee shall adopt rules governing
the waiver of the conflict-of-interest requirements of this chapter
under exceptional circumstances for an oversight committee member,
program integration committee member, peer review committee
member, or institute employee. The rules must:
(1) authorize the chief executive officer or an
oversight committee member to propose granting a waiver by
submitting to the oversight committee’s presiding officer a written
statement about the conflict of interest, the exceptional
circumstance requiring the waiver, and any proposed limitations to
the waiver;
(2) require a proposed waiver to be publicly reported
at an oversight committee meeting;
(3) require a majority vote of the oversight committee
members present and voting to grant a waiver;
(4) require any waiver granted to be included in the
annual report required by Section 101A.053; and
(5) require the institute to retain documentation of
each waiver granted.
Sec. 101A.254. INVESTIGATION OF UNREPORTED CONFLICTS OF
INTEREST. (a) An oversight committee member, program integration
committee member, peer review committee member, or institute
employee who becomes aware of an unreported potential conflict of
interest described by Section 101A.251 shall immediately notify the
chief executive officer of the potential conflict of interest. On
receipt of the notification, the chief executive officer shall
notify the institute’s general counsel and the oversight
committee’s presiding officer, who shall determine the nature and
extent of any unreported conflict.
(b) A grant applicant seeking an investigation regarding
whether a prohibited conflict of interest was not reported shall
file a written request with the chief executive officer. The
applicant must:
(1) include in the request all facts regarding the
alleged conflict of interest; and
(2) submit the request not later than the 30th day
after the date the chief executive officer presents to the
oversight committee final funding recommendations for the affected
grant cycle.
(c) On receipt of notification of an alleged conflict of
interest under Subsection (a) or (b), the institute’s general
counsel shall:
(1) investigate the matter; and
(2) provide to the chief executive officer and the
oversight committee’s presiding officer an opinion that includes:
(A) a statement of facts;
(B) a determination of whether a conflict of
interest or another impropriety or self-dealing exists; and
(C) if the opinion provides that a conflict of
interest or another impropriety or self-dealing exists,
recommendations for an appropriate course of action.
(d) If the conflict of interest, impropriety, or
self-dealing involves the oversight committee’s presiding officer,
the institute’s general counsel shall provide the opinion to the
next ranking oversight committee member who is not involved with
the conflict of interest, impropriety, or self-dealing.
(e) After receiving the opinion and consulting with the
oversight committee’s presiding officer, the chief executive
officer shall take action regarding the recusal of the individual
from any discussion of or access to information related to the
conflict of interest or other recommended action related to the
impropriety or self-dealing. If the alleged conflict of interest,
impropriety, or self-dealing is held by, or is an act of, the chief
executive officer, the presiding officer of the oversight committee
shall take actions regarding the recusal or other action.
Sec. 101A.255. FINAL DETERMINATION OF UNREPORTED CONFLICT
OF INTEREST. (a) The chief executive officer or, if applicable,
the oversight committee’s presiding officer shall make a
determination regarding the existence of an unreported conflict of
interest described by Section 101A.251 or other impropriety or
self-dealing. The determination must specify any actions to be
taken to address the conflict of interest, impropriety, or
self-dealing, including:
(1) reconsideration of the application; or
(2) referral of the application to another peer review
committee for review.
(b) The determination made under Subsection (a) is
considered final unless three or more oversight committee members
request that the issue be added to the agenda of the oversight
committee.
(c) The chief executive officer or, if applicable, the
oversight committee’s presiding officer, shall provide to the grant
applicant requesting the investigation written notice of the final
determination, including any further actions to be taken.
(d) Unless specifically determined by the chief executive
officer or, if applicable, the presiding officer of the oversight
committee, or the oversight committee, the validity of an action
taken on a grant application is not affected by the fact that an
individual who failed to report a conflict of interest participated
in the action.
SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
Sec. 101A.301. PEER REVIEW PROCESS FOR GRANT AWARD. The
institute shall establish a peer review process to evaluate and
recommend all grants the oversight committee awards under this
chapter.
Sec. 101A.302. GRANT AWARD RULES AND PROCEDURES. (a) The
oversight committee shall adopt rules regarding the procedure for
awarding grants to an applicant under this chapter. The rules must
require:
(1) the peer review committee to score grant
applications and make recommendations to the program integration
committee and the oversight committee regarding the award of
grants, including providing a prioritized list that:
(A) ranks the grant applications in the order the
peer review committee determines applications should be funded; and
(B) includes information explaining each grant
applicant’s qualification under the peer review committee’s
standards for recommendation; and
(2) the program integration committee to submit to the
oversight committee a list of grant applications the program
integration committee by majority vote approved for recommendation
that:
(A) includes documentation on the factors the
program integration committee considered in making the
recommendations;
(B) is substantially based on the list submitted
by the peer review committee under Subdivision (1); and
(C) to the extent possible, gives priority to
applications with proposals that:
(i) may lead to immediate or long-term
medical and scientific breakthroughs in the areas of prevention or
treatment for dementia and related disorders;
(ii) strengthen and enhance fundamental
scientific research on dementia and related disorders;
(iii) ensure a comprehensive coordinated
approach to research on dementia and related disorders;
(iv) are interdisciplinary or
interinstitutional;
(v) align with state priorities and needs,
including priorities and needs outlined in other state agency
strategic plans, or that address federal or other major research
sponsors’ priorities in scientific or technological research in the
fields of dementia and related disorders;
(vi) are matched with money provided by a
private or nonprofit entity or institution of higher education;
(vii) are collaborative between any
combination of private and nonprofit entities, public or private
agencies or institutions in this state, and public or private
institutions outside this state;
(viii) benefit the residents of this state,
including a demonstrable economic development benefit to this
state;
(ix) enhance research superiority at
institutions of higher education in this state by creating new
research superiority, attracting existing research superiority
from institutions outside this state and other research entities,
or attracting from outside this state additional researchers and
resources; and
(x) expedite innovation and product
development, attract private sector entities to stimulate a
substantial increase in high-quality jobs, and increase higher
education applied science or technology research capabilities.
(b) A peer review committee member may not attempt to use
the committee member’s official position to influence a decision to
approve or award a grant or contract to the committee member’s
employer.
(c) A program integration committee member may not discuss a
grant applicant recommendation with an oversight committee member
unless the program integration committee has submitted the list
required under Subsection (a)(2).
(d) Two-thirds of the oversight committee members present
and voting must vote to approve each grant award recommendation of
the program integration committee. If the oversight committee does
not approve a grant award recommendation of the program integration
committee, a statement explaining the reasons the recommendation
was not followed must be included in the minutes of the meeting.
(e) The oversight committee may not award more than $300
million in grants under this chapter in a state fiscal year.
(f) The oversight committee may not award a grant to an
applicant who has made a gift or grant to the institute, an
oversight committee member, or an institute employee on or after
January 1, 2026. This section does not apply to gifts, fees,
honoraria, or other items also excepted under Section 36.10, Penal
Code.
Sec. 101A.303. MULTIYEAR PROJECTS. (a) The oversight
committee may approve the award of grant money for a multiyear
project.
(b) The oversight committee shall specify the total amount
of money approved to fund the multiyear project. For purposes of
this chapter, the total amount is considered to have been awarded in
the state fiscal year the peer review committee approved the
project. The institute shall disburse only the money to be spent
during that fiscal year. The institute shall disburse the
remaining grant money as the money is needed in each subsequent
state fiscal year.
Sec. 101A.304. CONTRACT TERMS. (a) Before disbursing
grant money awarded under this chapter, the institute shall execute
a written contract with the grant recipient. The contract shall:
(1) specify that except for awards to state agencies
or public institutions of higher education, if all or any part of
the grant amount is used to build a capital improvement:
(A) the state retains a lien or other interest in
the capital improvement in proportion to the percentage of the
grant amount used to pay for the capital improvement; and
(B) the grant recipient shall, if the capital
improvement is sold:
(i) repay to this state the grant money used
to pay for the capital improvement, with interest at the rate and
according to the other terms provided by the contract; and
(ii) share with this state a proportionate
amount of any profit realized from the sale;
(2) specify that if the grant recipient has not used
awarded grant money for the purposes for which the grant was
intended, the recipient shall repay that grant amount and any
related interest applicable under the contract to this state at the
agreed rate and on the agreed terms;
(3) specify that if the grant recipient fails to meet
the terms and conditions of the contract, the institute may
terminate the contract using the written process prescribed in the
contract and require the recipient to repay the awarded grant money
and any related interest applicable under the contract to this
state at the agreed rate and on the agreed terms;
(4) include terms relating to intellectual property
rights consistent with the standards developed by the oversight
committee under Section 101A.305;
(5) require, in accordance with Subsection (b), the
grant recipient to dedicate an amount of matching money equal to
one-half of the amount of the grant awarded and specify the amount
of matching money to be dedicated;
(6) specify the period in which the grant award must be
spent; and
(7) include the specific deliverables of the project
that is the subject of the grant proposal.
(b) Before the institute may disburse grant money, the grant
recipient must certify the recipient has available an unexpended
amount of money equal to one-half of the grant amount dedicated to
the research specified in the grant proposal. The institute shall
adopt rules specifying a grant recipient’s obligations under this
chapter. At a minimum, the rules must:
(1) allow an institution of higher education or a
private or independent institution of higher education, as those
terms are defined by Section 61.003, Education Code, a research
institute or center affiliated with the institution, or a
not-for-profit hospital system, to credit toward the recipient’s
matching money the dollar amount equivalent to the difference
between the indirect cost rate negotiated by the federal government
for research grants awarded to the recipient and the indirect cost
rate authorized by Section 101A.203(c);
(2) specify that:
(A) the recipient of more than one grant award
under this chapter may provide matching money certification at an
institutional level;
(B) the recipient of a multiyear grant award may
yearly certify matching money; and
(C) grant money may not be disbursed to the
recipient until the annual certification of the matching money has
been approved;
(3) specify that money for certification purposes may
include:
(A) federal money;
(B) the fair market value of drug development
support provided to the recipient by the National Institutes of
Health or other similar programs;
(C) this state’s money;
(D) other states’ money; and
(E) nongovernmental money, including money from
private sources, foundation grants, gifts, and donations;
(4) specify that the following items may not be used
for certification purposes:
(A) in-kind costs;
(B) volunteer services provided to the
recipient;
(C) noncash contributions;
(D) the recipient’s preexisting real estate,
including buildings, facilities, and land;
(E) deferred giving, including a charitable
remainder annuity trust, charitable remainder unitrust, or pooled
income fund; or
(F) any other items the institute determines;
(5) require the recipient’s certification to be
included in the grant award contract;
(6) specify that the recipient’s failure to provide
certification serves as grounds for terminating the grant award
contract;
(7) require the recipient to maintain adequate
documentation supporting the source and use of the money required
by this subsection and to provide documentation to the institute on
request; and
(8) require the institute to establish a procedure to
annually review the documentation supporting the source and use of
money reported in the required certification.
(c) The institute shall establish a policy on advance
payments to grant recipients.
(d) The oversight committee shall adopt rules to administer
this section.
Sec. 101A.305. PATENT ROYALTIES AND LICENSE REVENUES PAID
TO STATE. (a) The oversight committee shall establish standards
requiring all grant awards to be subject to an intellectual
property agreement that allows this state to collect royalties,
income, and other benefits, including interest or proceeds
resulting from securities and equity ownership, realized as a
result of projects undertaken with grant money awarded under this
chapter.
(b) In determining this state’s interest in any
intellectual property rights, the oversight committee shall
balance the opportunity of this state to benefit from the patents,
royalties, licenses, and other benefits that result from basic
research, therapy development, and clinical trials with the need to
ensure that essential medical research is not unreasonably hindered
by the intellectual property agreement and that the agreement does
not unreasonably remove the incentive of the individual researcher,
research team, or institution.
(c) The oversight committee may authorize the institute to
execute a contract with one or more qualified third parties for
assistance with the management, accounting, and disposition of this
state’s interest in securities, equities, royalties, income, and
other benefits realized from grant money awarded under this
chapter. The institute shall implement practices and procedures
for the management, accounting, and disposition of securities,
equities, royalties, income, and other benefits the institute
determines are in this state’s best interest.
Sec. 101A.306. PREFERENCE FOR TEXAS SUPPLIERS. In a good
faith effort to achieve a goal of more than 50 percent of purchases
from suppliers in this state, the oversight committee shall
establish standards to ensure grant recipients purchase goods and
services from suppliers in this state to the extent reasonably
possible.
Sec. 101A.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The
oversight committee shall establish standards to ensure grant
recipients purchase goods and services from historically
underutilized businesses as defined by Section 2161.001,
Government Code, and any other applicable state law.
Sec. 101A.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.
(a) The institute shall require as a condition of a grant awarded
under this chapter that the grant recipient submit to regular
inspection reviews of the grant project by institute employees to
ensure compliance with the terms of the grant contract and ongoing
progress, including the scientific merit of the research.
(b) The chief executive officer shall report at least
annually to the oversight committee on the progress and continued
merit of the projects awarded grants by the institute.
Sec. 101A.309. MEDICAL AND RESEARCH ETHICS. A project
awarded a grant under this chapter must comply with all applicable
federal and state laws regarding the conduct of the research or a
prevention project.
Sec. 101A.310. PUBLIC INFORMATION; CONFIDENTIAL
INFORMATION. (a) The following information is public information
and may be disclosed under Chapter 552, Government Code:
(1) a grant applicant’s name and address;
(2) the amount of money requested in an applicant’s
grant proposal;
(3) the type of research on dementia or related
disorders to be addressed under a grant proposal; and
(4) any other information the institute designates
with the consent of a grant applicant.
(b) To protect the actual or potential value of information
submitted to the institute by an applicant for or recipient of a
grant under this chapter, the following information submitted by
the applicant or recipient is confidential and is not subject to
disclosure under Chapter 552, Government Code, or any other law:
(1) all information, other than the information
described under Subsection (a), contained in a grant application,
peer review evaluation, award contract, or progress report relating
to a product, device, or process, the application or use of the
product, device, or process, and all technological and scientific
information, including computer programs, developed wholly or
partly by the applicant or recipient, regardless of whether
patentable or capable of being registered under copyright or
trademark laws, that has a potential for being sold, traded, or
licensed for a fee; and
(2) the plans, specifications, blueprints, and
designs, including related proprietary information, of a
scientific research and development facility.
(c) The following information is confidential and not
subject to disclosure under Chapter 552, Government Code:
(1) information that directly or indirectly reveals
the identity of an individual who reports fraud, waste, or abuse of
state resources to the institute’s compliance program office, seeks
guidance from the office, or participates in an investigation
conducted under the compliance program;
(2) information that directly or indirectly reveals
the identity of an individual who is alleged to have or may have
planned, initiated, or participated in activities specified in a
report submitted to the office if, after completing an
investigation, the office determines the report to be
unsubstantiated or without merit; and
(3) other information collected or produced in a
compliance program investigation if releasing the information
would interfere with an ongoing compliance investigation.
(d) Subsection (c) does not apply to information related to
an individual who consents to the information’s disclosure.
(e) Information made confidential or excepted from public
disclosure by this section may be made available, on request and in
compliance with applicable laws and procedures, to the following:
(1) a law enforcement agency or prosecutor;
(2) a governmental agency responsible for
investigating the matter specified in a compliance report,
including the Texas Workforce Commission civil rights division or
the Equal Employment Opportunity Commission; or
(3) a committee member or institute employee who is
responsible under institutional policy for a compliance program
investigation or for a review of a compliance program
investigation.
(f) A disclosure under Subsection (e) is not a voluntary
disclosure for purposes of Section 552.007, Government Code.
(g) The institute shall post on the institute’s Internet
website records that pertain specifically to any gift, grant, or
other consideration provided to the institute, an institute
employee, or an oversight committee member, in the employee’s or
member’s official capacity. The posted information must include
each donor’s name and the amount and date of the donor’s donation.
SECTION 2. Section 51.955(c), Education Code, is amended to
read as follows:
(c) Subsection (b)(1) does not apply to a research contract
between an institution of higher education and the Cancer
Prevention and Research Institute of Texas or Dementia Prevention
and Research Institute of Texas.
SECTION 3. Section 61.003(6), Education Code, is amended to
read as follows:
(6) “Other agency of higher education” means The
University of Texas System, System Administration; The University
of Texas at El Paso Museum; Texas Epidemic Public Health Institute
at The University of Texas Health Science Center at Houston; The
Texas A&M University System, Administrative and General Offices;
Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
Rodent and Predatory Animal Control Service (a part of the Texas A&M
AgriLife Extension Service); Texas A&M Engineering Experiment
Station (including the Texas A&M Transportation Institute); Texas
A&M Engineering Extension Service; Texas A&M Forest Service; Texas
Division of Emergency Management; Texas Tech University Museum;
Texas State University System, System Administration; Sam Houston
Memorial Museum; Panhandle-Plains Historical Museum; Cotton
Research Committee of Texas; Texas Water Resources Institute; Texas
A&M Veterinary Medical Diagnostic Laboratory; Dementia Prevention
and Research Institute of Texas; and any other unit, division,
institution, or agency which shall be so designated by statute or
which may be established to operate as a component part of any
public senior college or university, or which may be so classified
as provided in this chapter.
SECTION 4. Section 572.003(c), Government Code, is amended
to read as follows:
(c) The term means a member of:
(1) the Public Utility Commission of Texas;
(2) the Texas Commission on Environmental Quality;
(3) the Texas Alcoholic Beverage Commission;
(4) the Finance Commission of Texas;
(5) the Texas Facilities Commission;
(6) the Texas Board of Criminal Justice;
(7) the board of trustees of the Employees Retirement
System of Texas;
(8) the Texas Transportation Commission;
(9) the Texas Department of Insurance;
(10) the Parks and Wildlife Commission;
(11) the Public Safety Commission;
(12) the Texas Ethics Commission;
(13) the State Securities Board;
(14) the Texas Water Development Board;
(15) the governing board of a public senior college or
university as defined by Section 61.003, Education Code, or of The
University of Texas Southwestern Medical Center, The University of
Texas Medical Branch at Galveston, The University of Texas Health
Science Center at Houston, The University of Texas Health Science
Center at San Antonio, The University of Texas M. D. Anderson Cancer
Center, The University of Texas Health Science Center at Tyler,
University of North Texas Health Science Center at Fort Worth,
Texas Tech University Health Sciences Center, Texas State Technical
College–Harlingen, Texas State Technical College–Marshall, Texas
State Technical College–Sweetwater, or Texas State Technical
College–Waco;
(16) the Texas Higher Education Coordinating Board;
(17) the Texas Workforce Commission;
(18) the board of trustees of the Teacher Retirement
System of Texas;
(19) the Credit Union Commission;
(20) the School Land Board;
(21) the board of the Texas Department of Housing and
Community Affairs;
(22) the Texas Racing Commission;
(23) the State Board of Dental Examiners;
(24) the Texas Medical Board;
(25) the Board of Pardons and Paroles;
(26) the Texas State Board of Pharmacy;
(27) the Department of Information Resources
governing board;
(28) the board of the Texas Department of Motor
Vehicles;
(29) the Texas Real Estate Commission;
(30) the board of directors of the State Bar of Texas;
(31) the Bond Review Board;
(32) the Health and Human Services Commission;
(33) the Texas Funeral Service Commission;
(34) the board of directors of a river authority
created under the Texas Constitution or a statute of this state;
(35) the Texas Lottery Commission; [or]
(36) the Cancer Prevention and Research Institute of
Texas; or
(37) the Dementia Prevention and Research Institute of
Texas.
SECTION 5. (a) Not later than December 31, 2025, the
appropriate appointing authority shall appoint the members to the
Dementia Prevention and Research Institute of Texas Oversight
Committee as required by Section 101A.101, Health and Safety Code,
as added by this Act. The oversight committee may not act until a
majority of the appointed members have taken office.
(b) Notwithstanding Section 101A.101, Health and Safety
Code, as added by this Act, in making the initial appointments under
that section, the governor, lieutenant governor, and speaker of the
house of representatives shall, as applicable, designate one member
of the Dementia Prevention and Research Institute of Texas
Oversight Committee appointed by that person to serve a term
expiring January 31, 2027, one member appointed by that person to
serve a term expiring January 31, 2029, and one member appointed by
that person to serve a term expiring January 31, 2031.
SECTION 6. If the voters approve the constitutional
amendment proposed by the 89th Legislature, Regular Session, 2025,
providing for the establishment of the Dementia Prevention and
Research Institute of Texas, establishing the Dementia Prevention
and Research Fund to provide money for research on and prevention
and treatment of dementia and related disorders in this state, and
transferring to that fund $3 billion from state general revenue,
the Dementia Prevention and Research Institute of Texas established
by Chapter 101A, Health and Safety Code, as added by this Act, is
eligible for funding to be deposited under the authority of Section
68, Article III, Texas Constitution, for the institute to engage in
any activities serving the purposes of that constitutional
provision.
SECTION 7. This Act takes effect December 1, 2025, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, providing for the establishment of the
Dementia Prevention and Research Institute of Texas, establishing
the Dementia Prevention and Research Fund to provide money for
research on and prevention and treatment of dementia and related
disorders in this state, and transferring to that fund $3 billion
from state general revenue is approved by the voters. If that
amendment is not approved by the voters, this Act has no effect.
