87R19298 SRA-D
 
  By: Thompson of Harris, Bonnen, Goldman, H.B. No. 15
      Coleman, Meyer, et al.
 
  Substitute the following for H.B. No. 15:
 
  By:  Pacheco C.S.H.B. No. 15
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Brain Institute of Texas; granting
  authority to issue bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle H, Title 3, Education Code, is amended
  by adding Chapter 157 to read as follows:
  CHAPTER 157. BRAIN INSTITUTE OF TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 157.001.  DEFINITIONS. In this chapter:
               (1)  "Higher education advisory committee" means the
  Brain Institute of Texas Higher Education Advisory Committee.
               (2)  "Institute" means the Brain Institute of Texas.
               (3)  "Oversight committee" means the Brain Institute of
  Texas Oversight Committee.
               (4)  "Peer review committee" means the Brain Institute
  of Texas Peer Review Committee.
               (5)  “Program integration committee” means the Brain
  Institute of Texas Program Integration Committee.
               (6)  "Research plan" means the Texas Brain Health and
  Research Plan developed by the institute.
         Sec. 157.002.  PURPOSES. The Brain Institute of Texas is
  established to:
               (1)  create and expedite innovation in brain research
  to improve the health of residents of this state, enhance the
  potential for a medical or scientific breakthrough in brain-related
  sciences and biomedical research, and enhance the brain research
  superiority of this state;
               (2)  attract, create, or expand research capabilities
  of eligible institutions of higher education by awarding grants to
  the institutions to promote a substantial increase in brain
  research, strategies for prevention of brain-related diseases,
  brain health initiatives, and the creation of jobs in this state;
  and
               (3)  develop and implement a research plan to foster
  synergistic collaboration and investigation into brain health and
  research by eligible institutions of higher education and their
  partners.
         Sec. 157.003.  SUNSET PROVISION. The Brain 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,
  2032.
  SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
         Sec. 157.051.  POWERS AND DUTIES. (a) The institute:
               (1)  may make grants to further the purposes of this
  chapter, including:
                     (A)  implementing the research plan;
                     (B)  researching:
                           (i)  the causes of and prevention,
  treatment, rehabilitation, and cures for brain-related diseases,
  syndromes, disorders, dysfunction, injuries, developmental issues,
  neurological health issues, mental and behavioral health issues,
  and substance abuse disorders and other addictions; and
                           (ii)  any other area impacting the brain,
  including an area that directly or indirectly impacts or is
  impacted by the brain or brain health, such as the gut microbiome,
  nutrition, and the spinal cord or nervous system, that the peer
  review committee and the oversight committee approve;
                     (C)  providing money for facilities, equipment,
  supplies, salaries, benefits, and other costs related to brain
  research; and
                     (D)  establishing prevention programs and
  strategies to mitigate the incidence of detrimental health impacts
  on the brain;
               (2)  shall collaborate with relevant state agencies,
  coordinating councils, and consortiums to enhance brain-related
  health care and research;
               (3)  may establish 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
  administrative support to the institute;
               (5)  shall monitor grant contracts and agreements
  authorized under this chapter to ensure each grant recipient
  complies with the terms and conditions of the contract or
  agreement;
               (6)  shall ensure that all grant proposals comply with
  this chapter and rules adopted under this chapter before the
  proposals are submitted to the oversight committee for approval;
               (7)  shall establish procedures to document that the
  institute, its employees, and any committee members appointed under
  this chapter comply with all rules governing conflicts of interest
  and the peer review process developed under Section 157.252; and
               (8)  shall create a statewide research and clinical
  data registry for brain research.
         (b)  The institute shall establish a program integration
  committee composed of:
               (1)  the institute's chief executive officer;
               (2)  three senior-level institute employees
  responsible for program policy and oversight appointed by the chief
  executive officer, with the approval of a simple majority of the
  members of the oversight committee; and
               (3)  the executive commissioner of the Health and Human
  Services Commission or the executive commissioner’s designee.
         (c)  The institute's chief executive officer shall serve as
  the presiding officer of the program integration committee.
         (d)  The program integration committee has the duties
  assigned under this chapter.
         (e)  The institute shall implement and monitor the research
  plan and revise the plan as necessary.
         Sec. 157.052.  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 under this chapter or 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 report incidents of noncompliance to the oversight
  committee. The chief compliance officer shall:
               (1)  ensure that all grant proposals comply with this
  chapter and rules adopted under this chapter before the proposals
  are submitted to the oversight committee for consideration and
  approval; and
               (2)  attend and observe peer review committee meetings
  to ensure compliance with this chapter and rules adopted under this
  chapter.
         (c)  The chief compliance officer may appoint as the
  officer's designee another institute employee to attend and observe
  one or more peer review committee meetings to ensure compliance
  with this chapter and rules adopted under this chapter if the chief
  compliance officer is unable to attend the meeting.
         (d)  The chief executive officer may hire any other officer
  position the chief executive officer determines necessary for
  efficient operation of the institute.
         Sec. 157.053.  ANNUAL REPORT; INTERNET POSTING. Not later
  than January 31 of each year, the institute shall prepare and submit
  to the governor, the lieutenant governor, the speaker of the house
  of representatives, and each standing committee of the legislature
  having primary jurisdiction over institute matters and post on the
  institute's Internet website a written report that outlines:
               (1)  the institute's activities under this chapter;
               (2)  a list of grant recipients during the preceding
  state fiscal year, including the grant amount awarded to each
  recipient;
               (3)  any research accomplishments made during the
  preceding state fiscal year by a grant recipient or the recipient's
  partners;
               (4)  an overview summary of the institute's financial
  records and strategies;
               (5)  an assessment of the relationship between the
  institute's grants and the strategy of its research program;
               (6)  a statement of the institute's strategic research
  plans;
               (7)  an estimate of the amount of money brain disease
  has cost this state during the most recent state fiscal year for
  which data is available, including the amounts spent by this state
  relating to brain disease by the Medicaid program, the Teacher
  Retirement System of Texas, and the Employees Retirement System of
  Texas;
               (8)  a statement of the institute's compliance program
  activities, including any proposed legislation or other
  recommendations identified through the activities;
               (9)  for the preceding state fiscal year:
                     (A)  a list of any conflicts of interest under
  this chapter or rules adopted under this chapter;
                     (B)  any conflicts of interest that require
  recusal under Section 157.107;
                     (C)  any unreported conflicts of interest
  confirmed by an investigation conducted under Section 157.109,
  including any actions taken by the institute regarding an
  unreported conflict of interest and subsequent investigation; and
                     (D)  any waivers granted through the process
  established under Section 157.108; and
               (10)  the institute's future direction.
         Sec. 157.054.  INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY
  COMPTROLLER. (a) The institute shall annually commission an
  independent financial audit of its activities from a certified
  public accounting firm. The institute shall provide the audit to
  the comptroller.
         (b)  The comptroller shall review and evaluate the audit and
  annually issue a public report of that review.
         (c)  The oversight committee shall review the annual
  financial audit, the comptroller's report and evaluation of that
  audit, and the financial practices of the institute.
         Sec. 157.055.  GRANT RECORDS. (a)  The institute shall
  maintain complete records of:
               (1)  the review of each grant application submitted to
  the institute, including the score assigned to each grant
  application reviewed by the peer review committee in accordance
  with rules adopted under Section 157.253, regardless of whether the
  grant application is not funded by the institute or is withdrawn
  after submission to the institute;
               (2)  each grant recipient's financial reports;
               (3)  each grant recipient's progress reports; and
               (4)  the institute's review of the grant recipient's
  financial and progress reports.
         (b)  The institute shall keep the records described by
  Subsection (a) for at least 15 years.
         Sec. 157.056.  GIFTS AND GRANTS. The institute may solicit
  and accept gifts and grants from any source for the purposes of this
  chapter.
         Sec. 157.057.  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.
  SUBCHAPTER C. OVERSIGHT COMMITTEE
         Sec. 157.101.  COMPOSITION OF OVERSIGHT COMMITTEE. (a) The
  oversight committee is the governing body of the institute.
         (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)  A person may not be a member of the oversight committee
  if the person or the person's spouse:
               (1)  is employed by or participates in the management
  of an entity or collaborative partner receiving money from the
  institute;
               (2)  owns or controls, directly or indirectly, an
  interest in an entity or collaborative partner 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. 157.102.  REMOVAL. (a) It is a ground for removal from
  the oversight committee that a member:
               (1)  is ineligible for membership under Section
  157.101(c);
               (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 that 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 action of the oversight committee is
  not affected by the fact that it is taken when a ground for removal
  of a committee member exists.
         (c)  If the institute's chief executive officer has
  knowledge that a potential ground for removal 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. 157.103.  TERMS; VACANCY. (a) Oversight committee
  members serve at the pleasure of the appointing authority for
  staggered six-year terms, with the terms of three members expiring
  January 31 of each even-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. 157.104.  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 officers of the committee; 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. 157.105.  EXPENSES. A member of the oversight
  committee is not entitled to compensation but is entitled to
  reimbursement for actual and necessary expenses incurred in
  attending meetings of the committee or performing other official
  duties authorized by the presiding officer.
         Sec. 157.106.  CONFLICT OF INTEREST. (a)  The oversight
  committee shall adopt conflict-of-interest rules, based on
  standards adopted by the National Institutes of Health, to govern
  members of the oversight committee, the program integration
  committee, the peer review committee, and institute employees.
         (b)  An institute employee, oversight committee member,
  program integration committee member, or peer review committee
  member shall recuse himself or herself, as provided by Section
  157.107(a), (b), or (c), as applicable, if the employee or member,
  or a person who is related to the employee or member within the
  second degree of affinity or consanguinity, has a professional or
  financial interest in an entity receiving or applying to receive
  money from the institute.
         (c)  A person has a professional interest in an entity
  receiving or applying to receive money 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; or
               (7)  is engaged or is actively planning to be engaged in
  collaboration with a primary member of the entity's project team.
         (d)  A person has a financial interest in an entity receiving
  or applying to receive money from the institute if the person:
               (1)  owns or controls, directly or indirectly, an
  ownership interest, including sharing in profits, proceeds, or
  capital gains, in an entity receiving or applying to receive money
  from the institute; or
               (2)  could reasonably foresee that an action taken by
  the institute, the peer review committee, the program integration
  committee, or the oversight committee could result in a financial
  benefit to the person.
         (e)  Nothing in this chapter limits the authority of the
  oversight committee to adopt additional conflict-of-interest
  standards.
         Sec. 157.107.  DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
  (a)  If an oversight committee member or program integration
  committee member has a conflict of interest as described by Section
  157.106 regarding an application that comes before the member for
  review or other action, the member shall:
               (1)  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)  disclose the conflict of interest in an open
  meeting of the oversight committee; and
               (3)  recuse himself or herself from participating in
  the review, discussion, deliberation, and vote on the application
  and from accessing information regarding the matter to be decided.
         (b)  If an institute employee has a conflict of interest
  described by Section 157.106 regarding an application that comes
  before the employee for review or other action, the employee shall:
               (1)  provide written notice to the chief executive
  officer of the conflict of interest; and
               (2)  recuse himself or herself from participating in
  the review of the application and be prevented from accessing
  information regarding the matter to be decided.
         (c)  If a peer review committee member has a conflict of
  interest described by Section 157.106 regarding an application that
  comes before the member's committee for review or other action, the
  member shall:
               (1)  provide written notice to the chief executive
  officer of the conflict of interest; and
               (2)  recuse himself or herself from participating in
  the review, discussion, deliberation, and vote on the application
  and from accessing 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 157.108.
         (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 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. 157.108.  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 the granting of a waiver by
  submitting to the presiding officer of the oversight committee 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 a meeting of the oversight committee;
               (3)  require a majority vote of the oversight committee
  members present and voting to grant a waiver;
               (4)  require any waiver granted to be reported annually
  to the lieutenant governor, the speaker of the house of
  representatives, the governor, and the standing committee of each
  house of the legislature with primary jurisdiction over institute
  matters; and
               (5)  require the institute to retain documentation of
  each waiver granted.
         Sec. 157.109.  INVESTIGATION OF UNREPORTED CONFLICTS OF
  INTEREST. (a)  An oversight committee member, a program
  integration committee member, a peer review committee member, or an
  institute employee who becomes aware of a potential conflict of
  interest described by Section 157.106 that has not been reported
  shall immediately notify the chief executive officer of the
  potential conflict of interest.  On notification, the chief
  executive officer shall notify the presiding officer of the
  oversight committee and the general counsel, 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 institute's 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 final funding
  recommendations for the affected grant cycle to the oversight
  committee.
         (c)  On 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
  presiding officer of the oversight committee 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 presiding officer of the oversight
  committee, 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
  presiding officer of the oversight committee, 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. 157.110.  FINAL DETERMINATION OF UNREPORTED CONFLICT OF
  INTEREST. (a)  The chief executive officer or, if applicable, the
  presiding officer of the oversight committee shall make a
  determination regarding the existence of an unreported conflict of
  interest described by Section 157.109 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
  presiding officer of the oversight committee, shall provide written
  notice of the final determination, including any further actions to
  be taken, to the grant applicant requesting the investigation.
         (d)  Unless specifically determined by the chief executive
  officer, 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.
         Sec. 157.111.  RULEMAKING AUTHORITY. The oversight
  committee may adopt rules to administer this chapter.
         Sec. 157.112.  POWERS AND DUTIES. The oversight committee
  shall:
               (1)  hire a chief executive officer;
               (2)  annually set priorities as prescribed by the
  legislature for each grant project that receives money under this
  chapter; and
               (3)  consider the priorities set under Subdivision (2)
  in awarding grants under this chapter.
         Sec. 157.113.  CODE OF CONDUCT. The oversight committee
  shall adopt a code of conduct applicable to each member of the
  oversight committee, the program integration committee, and the
  peer review committee and each institute employee.
         Sec. 157.114.  FINANCIAL STATEMENT REQUIRED. Each member of
  the oversight committee shall file with the chief compliance
  officer a verified financial statement complying with Sections
  572.022 through 572.0252, Government Code, as required of a state
  officer by Section 572.021, Government Code.
  SUBCHAPTER D. OTHER INSTITUTE COMMITTEES
         Sec. 157.151.  PEER REVIEW COMMITTEE. (a) The oversight
  committee shall establish the peer review committee. The chief
  executive officer, with approval by a simple majority of the
  members of the oversight committee, shall appoint as members of the
  peer review committee experts in fields related to the brain,
  including research, health care, disease treatment and prevention,
  and other study areas.
         (b)  The oversight committee shall adopt a written policy on
  in-state or out-of-state residency requirements for peer review
  committee members.
         (c)  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.
         (d)  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 member of
  the peer review committee, including information explaining the
  basis for that change.
         (e)  A member of the peer review committee appointed under
  this chapter may not serve on the board of directors or other
  governing board of an entity or the entity’s collaborator receiving
  a grant from the institute.
         (f)  Members of the peer review committee serve for terms as
  determined by the chief executive officer.
         Sec. 157.152.  HIGHER EDUCATION ADVISORY COMMITTEE. (a)
  The higher education advisory committee is composed of the
  following members:
               (1)  one member appointed by the president of Baylor
  College of Medicine;
               (2)  one member appointed by the president of Texas A&M
  University Health Science Center;
               (3)  one member appointed by the president of Texas
  Tech University Health Sciences Center;
               (4)  one member appointed by the president of Texas
  Tech University Health Sciences Center at El Paso;
               (5)  one member appointed by the president of The
  University of Texas Southwestern Medical Center;
               (6)  one member appointed by the president of The
  University of Texas Medical Branch at Galveston;
               (7)  one member appointed by the president of The
  University of Texas Health Science Center at Houston;
               (8)  one member appointed by the president of The
  University of Texas Health Science Center at San Antonio;
               (9)  one member appointed by the president of The
  University of Texas Health Science Center at Tyler;
               (10)  one member appointed by the dean of Dell Medical
  School at The University of Texas at Austin;
               (11)  one member appointed by the president of The
  University of Texas M. D. Anderson Cancer Center;
               (12)  one member appointed by the dean of The
  University of Texas Rio Grande Valley School of Medicine;
               (13)  one member appointed by the president of
  University of North Texas Health Science Center at Fort Worth;
               (14)  one member appointed by the dean of University of
  Houston College of Medicine; and
               (15)  one member appointed by the dean of Sam Houston
  State University College of Osteopathic Medicine.
         (b)  The higher education advisory committee shall advise
  the oversight committee, the program integration committee, and the
  peer review committee on issues, opportunities, the role of higher
  education, and other subjects involving brain research.
         Sec. 157.153.  AD HOC ADVISORY COMMITTEE. (a) The oversight
  committee, as necessary, may create additional ad hoc advisory
  committees of experts to advise the oversight committee and the
  peer review committee on issues relating to brain research, brain
  health, brain-related diseases, spinal cord injuries, traumatic
  brain injuries, mental and behavioral health issues, including
  substance abuse disorders and other addictions, or other brain- or
  neurological-related issues.
         (b)  Ad hoc committee members shall serve for the terms
  determined by the oversight committee.
  SUBCHAPTER E. FUNDING
         Sec. 157.201.  BRAIN INSTITUTE OF TEXAS RESEARCH FUND. (a)
  The Brain Institute of Texas research fund is a dedicated account in
  the general revenue fund.
         (b)  The Brain Institute of Texas research fund consists of:
               (1)  appropriations of money to the fund by the
  legislature, except that the appropriated money does not include
  the proceeds from the issuance of bonds authorized by Section 68,
  Article III, Texas Constitution;
               (2)  gifts and grants, including grants from the
  federal government, and other donations received for the fund; and
               (3)  interest earned on the investment of money in the
  fund.
         (c)  The fund may only be used for:
               (1)  the award of grants authorized under this chapter,
  including grants for brain research and for research facilities in
  this state to conduct brain research;
               (2)  the purchase, subject to approval by the oversight
  committee, of research facilities by or for a grant recipient;
               (3)  the operation of the institute;
               (4)  debt service on bonds issued as authorized by
  Section 68, Article III, Texas Constitution; and
               (5)  the payment of the costs of issuing the bonds and
  related bond administration costs of the Texas Public Finance
  Authority.
         Sec. 157.202.  ISSUANCE OF GENERAL OBLIGATION BONDS.  (a)  
  The institute may request the Texas Public Finance Authority to
  issue and sell general obligation bonds of the state as authorized
  by Section 68, Article III, Texas Constitution.
         (b)  The Texas Public Finance Authority may not issue and
  sell general obligation bonds authorized by this section before
  January 1, 2022, and may not issue and sell more than $300 million
  in general obligation bonds authorized by this section in a state
  fiscal year.
         (c)  The institute shall determine, and include in its
  request for issuing bonds, the amount, exclusive of costs of
  issuance, of the bonds to be issued and the preferred time for
  issuing the bonds.
         (d)  The Texas Public Finance Authority shall issue the bonds
  in accordance with and subject to Chapter 1232, Government Code,
  and Texas Public Finance Authority rules. The bonds may be issued in
  installments.
         (e)  Proceeds of the bonds issued under this section shall be
  deposited to the credit of the Brain Institute of Texas research
  fund and used only for the purposes authorized under Section
  157.201.
         Sec. 157.203.  AUTHORIZED USE OF GRANT MONEY. (a) A grant
  recipient awarded money from the Brain Institute of Texas research
  fund established under Section 157.201 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)  Money awarded under this chapter may be used for
  authorized expenses, including honoraria, salaries and benefits,
  travel, conference fees and expenses, consumable supplies, other
  operating expenses, contracted research and development, capital
  equipment, and construction or renovation of state or private
  facilities.
         (c)  Not more than five percent of the money awarded under
  this subchapter in a state fiscal year may be used for facility
  purchase, construction, remodel, or renovation purposes during
  that year. Expenditures of money awarded under this subchapter for
  facility purchase, construction, remodel, or renovation projects
  must benefit brain research.
         (d)  Not more than 10 percent of the money appropriated by
  the legislature for grants in a state fiscal year may be used for
  prevention projects and strategies to mitigate the incidence of
  detrimental health impacts on the brain during that year.
         Sec. 157.204.  PREFERENCE FOR TEXAS BUSINESSES. If the
  Texas Public Finance Authority contracts with a private entity to
  issue bonds under this subchapter, the Texas Public Finance
  Authority shall consider:
               (1)  contracting with an entity that has its principal
  place of business in this state; and
               (2)  using a historically underutilized business as
  defined by Section 2161.001, Government Code.
  SUBCHAPTER F. PROCEDURE FOR AWARDING GRANTS
         Sec. 157.251.  ELIGIBLE GRANT RECIPIENTS. (a) A public or
  private institution of higher education in this state, including
  any institution of higher education under Section 61.003, is
  eligible for a grant award under this chapter.
         (b)  A grant recipient may use the money received from a
  grant awarded under this chapter for purposes of this chapter and in
  a collaborative partnership with:
               (1)  another eligible institution in this state,
  including a historically black college or university;
               (2)  a nonprofit or for-profit organization in this
  state;
               (3)  a health care organization in this state;
               (4)  a branch of the United States armed forces for a
  project based in this state;
               (5)  a private company in this state;
               (6)  a federal, state, or local government for a
  project based in this state; or
               (7)  another relevant person or organization in this
  state.
         Sec. 157.252.  AWARD REVIEW PROCESS. The institute shall
  use a peer review process to evaluate and recommend all grants
  awarded by the oversight committee under this chapter.
         Sec. 157.253.  GRANT AWARD RULES AND PROCEDURES. (a) The
  oversight committee shall adopt rules establishing procedures for
  awarding grants under Subchapter E. 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 the creation of 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 the reasons
  each grant application on the list meets 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 grant
  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
  proposals that:
                           (i)  align with the research plan;
                           (ii)  align with state priorities and needs,
  including priorities and needs outlined in other state agency
  strategic plans, or address federal or other major research
  sponsors' priorities in scientific or technological fields in the
  area of brain research;
                           (iii)  enhance the research superiority at
  eligible institutions of higher education by creating new research
  superiority, attracting existing research superiority, or
  enhancing existing research superiority;
                           (iv)  benefit the residents of this state,
  including a demonstrable economic or job creation benefit to this
  state; and
                           (v)  if applicable, are interdisciplinary or
  interinstitutional, or have collaborators or partnerships.
         (b)  A member of a peer review committee 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)  The chief executive officer shall submit a written
  affidavit for each grant application recommendation included on the
  list submitted to the oversight committee under Subsection (a)(2).
  The affidavit must contain all relevant information on:
               (1)  the peer review process for the grant application;
  and
               (2)  the application's peer review score assigned by
  the peer review committee.
         (d)  A member of the program integration committee may not
  discuss a grant applicant recommendation with a member of the
  oversight committee unless the chief executive officer and the
  program integration committee have fulfilled the requirements of
  Subsections (a)(2) and (c), as applicable.
         (e)  Two-thirds of the members of the oversight committee
  present and voting must vote to approve each funding recommendation
  made by the program integration committee. If the oversight
  committee does not approve a funding recommendation made by the
  program integration committee, a statement explaining the reasons
  the funding recommendation was not followed must be included in the
  minutes of the meeting.
         (f)  The oversight committee may not award more than $300
  million in grants under this chapter in a state fiscal year.
         (g)  The institute may not award a grant to an applicant who
  has made a gift or grant with a value that exceeds $50 to the
  institute, an oversight committee member, or an institute employee
  on or after January 1, 2022. The oversight committee may waive this
  exclusion under rules adopted under Section 157.108.
         Sec. 157.254.  MULTIYEAR PROJECTS. (a) The oversight
  committee may award grant money for a multiyear project. 
         (b)  If the oversight committee awards grant money to fund
  the multiyear project, the committee must specify the total amount
  of that money awarded in the state fiscal year that the project is
  approved. The institute shall distribute only the amount of grant
  money that the grant recipient will spend during that fiscal year.
  The institute shall distribute the remaining grant money as the
  grant recipient needs in each subsequent state fiscal year.
         Sec. 157.255.  CONTRACT TERMS. (a) Before awarding a grant
  under this chapter, the institute shall enter into a written
  contract with the grant recipient. The contract may specify that:
               (1)  except for awards to state agencies or public
  institutions of higher education, if all or any portion of the
  amount of the grant 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 the 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 the state a proportionate
  amount of any profit realized from the sale;
               (2)  if the grant recipient does not use grant money
  awarded under Subchapter E for the purposes approved by the
  oversight committee, the recipient shall repay to this state that
  amount and any related interest applicable under the grant contract
  at the agreed rate and on the agreed terms; and
               (3)  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 to this state the grant money awarded
  under Subchapter E and any related interest applicable under the
  contract at the agreed rate and on the agreed terms.
         (b)  The oversight committee shall adopt rules to administer
  this section.
         Sec. 157.256.  PATENT ROYALTIES AND LICENSE REVENUES. (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 money awarded under Subchapter E. The oversight committee may
  exempt state agencies and public institutions of higher education
  from the standards.
         (b)  In determining this state's interest in any
  intellectual property rights and revenue sharing, 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
  on the part of the individual researcher, research team, or
  institution.
         (c)  The oversight committee may transfer its management and
  disposition authority over this state's interest in securities,
  equities, royalties, income, and other benefits realized as a
  result of projects undertaken with money awarded under Subchapter E
  to the Texas Treasury Safekeeping Trust Company. If the oversight
  committee transfers management and disposition authority to the
  trust company, the company has all powers necessary to accomplish
  the purposes of this section.
         (d)  In managing the assets described by Subsection (c),
  subject to restrictions that the Texas Treasury Safekeeping 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, exchange, sell, or retain in light of the
  purposes, terms, distribution requirements, and other
  circumstances then prevailing pertinent to each investment,
  including the requirements prescribed by Subsection (b) and the
  purposes described by Section 157.002. The trust company may
  charge a fee to recover the reasonable and necessary costs incurred
  in managing assets under this section.
         Sec. 157.257.  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 that grant recipients purchase goods
  and services from suppliers in this state to the extent reasonably
  possible.
         Sec. 157.258.  HISTORICALLY UNDERUTILIZED BUSINESSES. The
  oversight committee shall establish standards to ensure that 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. 157.259.  GRANT COMPLIANCE AND PROGRESS EVALUATION.
  (a) The oversight committee shall require as a condition of a grant
  awarded under this chapter that the grant recipient submit to
  regular reviews of the grant project by institute staff to ensure
  compliance with the terms of the grant and to ensure ongoing
  progress, including the scientific merit of the research.
         (b)  The institute shall establish and implement a grant
  compliance and progress review process under this section that
  includes reporting requirements to ensure each grant recipient
  complies with the terms and conditions of a grant contract.  The
  chief executive officer may terminate grants that do not meet
  contractual obligations.
         (c)  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.
         (d)  The institute shall implement a system to:
               (1)  track the dates grant recipient reports are due
  and are received by the institute; and
               (2)  monitor the status of any required report not
  timely submitted to the institute by a grant recipient.
         (e)  The chief compliance officer shall monitor compliance
  with this section and shall inquire into and monitor the status of
  any required report not timely submitted to the institute by a grant
  recipient. The chief compliance officer shall notify the general
  counsel for the institute and the oversight committee of a grant
  recipient that has not complied with the reporting requirements or
  provisions of the grant contract to allow the institute to begin
  suspension or termination of the grant contract. This subsection
  does not limit other remedies available under the grant contract.
         Sec. 157.260.  MEDICAL AND RESEARCH ETHICS. Any project
  that is awarded a grant under this chapter must comply with all
  applicable federal and state laws regarding the conduct of the
  research or prevention project.
         Sec. 157.261.  PUBLIC INFORMATION. (a) The following
  information is public information and may be disclosed under
  Chapter 552, Government Code:
               (1)  the applicant's name and address;
               (2)  the amount requested in the applicant's grant
  proposal;
               (3)  the type of brain research to be addressed under
  the proposal; and
               (4)  any other information the institute designates
  with the consent of the grant applicant.
         (b)  To protect the actual or potential value of information
  submitted to the institute by an applicant for or recipient of an
  institute grant, 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
  required under Subsection (a) that is contained in a grant award
  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 a grant 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 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 a member of the oversight committee, in the employee's
  or oversight committee member's official capacity. The posted
  information must include each donor's name and the amount and date
  of the donation.
         Sec. 157.262.  COMPLIANCE PROGRAM; CONFIDENTIAL
  INFORMATION. (a) In this section, "compliance program" means a
  process to assess and ensure compliance by the institute's
  committee members and employees with applicable laws, rules, and
  policies, including matters of:
               (1)  ethics and standards of conduct;
               (2)  financial reporting;
               (3)  internal accounting controls; and
               (4)  auditing.
         (b)  The institute shall establish a compliance program that
  operates under the direction of the institute's chief compliance
  officer.  The institute may establish procedures, including a
  telephone hotline, to all private access to the compliance program
  office and to preserve the confidentiality of communications and
  the anonymity of a person making a compliance report or
  participating in a compliance investigation.
         (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 made a report to the institute's
  compliance program office, sought guidance from the office, or
  participated 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 that are the
  subject of a report made to the office if, after completing an
  investigation, the office determines the report to be
  unsubstantiated or without merit; and
               (3)  other information that is 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 disclosure of the information.
         (e)  Information made confidential or excepted from public
  disclosure by this section may be made available to the following on
  request in compliance with applicable laws and procedures:
               (1)  a law enforcement agency or prosecutor;
               (2)  a governmental agency responsible for
  investigating a matter that is the subject of a compliance report,
  including the Texas Workforce Commission civil rights division or
  the federal 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.
         Sec. 157.263.  CLOSED MEETING.  The oversight committee may
  conduct a closed meeting under Chapter 551, Government Code, to
  discuss an ongoing compliance investigation into issues related to
  fraud, waste, or abuse of state resources.
         Sec. 157.264.  APPROPRIATION CONTINGENCY. The institute is
  required to implement a provision of this chapter only if the
  legislature appropriates money specifically for that purpose. If
  the legislature does not appropriate money specifically for that
  purpose, the institute may, but is not required to, implement the
  provision using other money available to the institute for that
  purpose.
         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 Brain 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; 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; Brain 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.  (a)  Not later than December 1, 2022, the
  appropriate appointing authority shall appoint the members to the
  Brain Institute of Texas Oversight Committee as required by Section
  157.101, Education Code, as added by this Act. The oversight
  committee may not take action until a majority of the appointed
  members have taken office.
         (b)  Notwithstanding Section 157.101, Education 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 Brain Institute of Texas appointed by that person to serve a
  term expiring January 31, 2024, one member appointed by that person
  to serve a term expiring January 31, 2026, and one member appointed
  by that person to serve a term expiring January 31, 2028.
         SECTION 5.  If the constitutional amendment proposed by the
  87th Legislature, Regular Session, 2021, authorizing the issuance
  of general obligation bonds and the dedication of bond proceeds to
  the Brain Institute of Texas established to fund brain research is
  approved by the voters, the Brain Institute of Texas established by
  Chapter 157, Education Code, as added by this Act, is eligible to
  receive funding through the proceeds deposited under the authority
  of Section 68, Article III, Texas Constitution, for any activities
  conducted by the institute that serve the purposes of that
  constitutional provision.
         SECTION 6.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, authorizing the issuance of general
  obligation bonds and the dedication of bond proceeds to the Brain
  Institute of Texas established to fund brain research in this state
  is approved by the voters. If that amendment is not approved by the
  voters, this Act has no effect.