By: Keffer H.B. No. 951
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the Cancer Prevention and Research Institute of Texas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 102.001, Health and Safety Code, is
  amended by amending Subdivision (3) to read as follows:
               (3)  "Research and prevention programs committee"
  means the Cancer Prevention and Research Institute of Texas
  Scientific Research and Prevention Programs committees appointed
  by the chief executive officer [director].
         SECTION 2.  Section 102.051, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsection (c) to
  read as follows:
         (a)  The institute may:
               (1)  make grants to provide funds to public or private
  persons to implement the Texas Cancer Plan, and may make grants to
  institutions of learning and to advanced medical research
  facilities and collaborations in this state for:
                     (A)  research into the causes of and cures for all
  types of cancer in humans;
                     (B)  facilities for use in research into the
  causes of and cures for cancer;
                     (C)  research, including translational research,
  to develop therapies, protocols, medical pharmaceuticals, or
  procedures for the cure or substantial mitigation of all types of
  cancer in humans; and
                     (D)  cancer prevention and control programs in
  this state to mitigate the incidence of all types of cancer in
  humans;
               (2)  support institutions of learning and advanced
  medical research facilities and collaborations in this state in all
  stages in the process of finding the causes of all types of cancer
  in humans and developing cures, from laboratory research to
  clinical trials and including programs to address the problem of
  access to advanced cancer treatment;
               (3)  establish the appropriate standards and oversight
  bodies to ensure the proper use of funds authorized under this
  chapter for cancer research and facilities development;
               (4)  [employ an executive director as determined by the
  oversight committee;
               [(5)]  employ necessary staff to provide
  administrative support; and
               (5) [(6)]  monitor contracts and agreements authorized
  by this chapter.
         (c)  The institute shall employ a compliance officer, who,
  under the direction of the chief executive officer, shall ensure
  that:
               (1)  all grant proposals comply with this chapter and
  rules adopted under this chapter before being submitted to the
  oversight committee for approval;
               (2)  the institute, its employees, and its committee
  members appointed under this chapter comply with all laws and rules
  governing the peer review process and conflicts of interest; and
               (3)  each grant recipient complies with the terms of
  the grant contract.
         SECTION 3.  Subchapter B, Chapter 102, Health and Safety
  Code, is amended by adding Section 102.0511 to read as follows:
         Sec. 102.0511.  CHIEF EXECUTIVE OFFICER; OTHER OFFICERS. (a)
  The oversight committee shall hire a chief executive officer. Under
  the direction of the oversight committee, the chief executive
  officer shall perform the duties required by this chapter or
  designated by the oversight committee.
         (b)  The chief executive officer must have:
               (1)  broad scientific and clinical experience;
               (2)  a balanced research and development portfolio; and
               (3)  a demonstrated ability to lead and develop
  academic, commercial, and governmental partnerships and
  coalitions.
         (c)  The chief executive officer shall hire:
               (1)  one chief scientific officer, who reports directly
  to the chief executive officer;
               (2)  one chief operating officer, who reports directly
  to the chief executive officer; and
               (3)  one development officer, who reports directly to
  the chief executive officer and assists in attracting
  public-private partnerships to further cancer research.
         SECTION 4.  Section 102.052(a), Health and Safety Code, is
  amended to read as follows:
         (a)  The institute shall issue an annual public report
  outlining the institute's activities, grants awarded, grants in
  progress, research accomplishments, and future program
  directions.  The report must include:
               (1)  the number and dollar amounts of research and
  facilities grants;
               (2)  identification of the grant recipients for the
  reported year;
               (3)  the institute's administrative expenses;
               (4)  an assessment of the availability of funding for
  cancer research from sources other than the institute;
               (5)  a summary of findings of research funded by the
  institute, including promising new research areas;
               (6)  an assessment of the relationship between the
  institute's grants and the overall strategy of its research
  program;
               (7)  a statement of the institute's strategic research
  and financial plans; [and]
               (8)  an estimate of how much cancer has cost the state
  during the year, including the amounts spent by the state relating
  to cancer by the child health program, the Medicaid program, the
  Teacher Retirement System of Texas, and the Employees Retirement
  System of Texas; and
               (9)  a statement of the institute's compliance program
  activities, including any proposed legislation or other
  recommendations identified through the activities.
         SECTION 5.  Section 102.056, Health and Safety Code, is
  amended to read as follows:
         Sec. 102.056.  SALARY. The institute may supplement the
  salary of the chief executive officer [director] and other senior
  institute staff members.  Funding for a salary supplement may come
  from gifts, grants, donations, or appropriations.
         SECTION 6.  Subchapter B, Chapter 102, Health and Safety
  Code, is amended by adding Sections 102.057 through 102.063 to read
  as follows:
         Sec. 102.057.  PROHIBITED OFFICE LOCATION. An institute
  employee may not have an office in a facility owned by an entity
  receiving or applying to receive money from the institute.
         Sec. 102.058.  CONFLICT OF INTEREST REQUIRING RECUSAL. (a)
  An oversight committee member or institute employee shall disclose
  in writing to the chief executive officer if the member, the
  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 receiving or
  applying to receive money from the institute.
         (b)  The member or employee described by Subsection (a) shall
  recuse himself or herself from the institute's consideration of
  grant applications from the entity receiving or applying to receive
  money from the institute as provided by Section 102.062(a) or (b),
  as applicable.
         (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, the other
  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 or of a foundation or similar organization affiliated with
  the entity;
               (3)  is an employee of or is negotiating future
  employment with the entity or with a foundation or similar
  organization affiliated with the entity;
               (4)  represents the entity or a foundation or similar
  organization affiliated with the entity;
               (5)  is a professional associate of a primary member of
  the entity's research or prevention program 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 research or prevention
  program team;
               (7)  is engaged or is actively planning to be engaged in
  collaboration with a primary member of the entity's research or
  prevention program team; or
               (8)  has long-standing scientific differences or
  disagreements with a primary member of the entity's research or
  prevention program team, and those differences:
                     (A)  are known to the professional community; and
                     (B)  could be perceived as affecting objectivity.
         (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 in a foundation or similar organization
  affiliated with the entity; or
               (2)  could reasonably foresee that an action taken by a
  scientific research and prevention program committee, the
  institute, or the oversight committee could result in financial
  benefit to the person.
         Sec. 102.059.  STANDARDS OF CONDUCT. (a) An oversight
  committee member or institute employee may not:
               (1)  accept or solicit any gift, favor, or service that
  could reasonably influence the member or employee in the discharge
  of official duties or that the member or employee knows or should
  know is being offered with the intent to influence the member's or
  employee's official conduct;
               (2)  accept employment or engage 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)  accept other employment or compensation that could
  reasonably impair the member's or employee's independent judgment
  in the performance of official duties;
               (4)  make personal investments or have a financial
  interest that could reasonably create a substantial conflict
  between the member's or employee's private interest and the member's
  or employee's official duties;
               (5)  intentionally or knowingly solicit, accept, or
  agree 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; or
               (6)  lease, directly or indirectly, any property,
  capital equipment, employee, or service to any program, business
  entity, organization, or institution that receives a grant from the
  institute.
         (b)  An oversight committee member or the member's spouse may
  not:
               (1)  submit a grant application for funding by the
  institute;
               (2)  be employed by or participate in the management of
  a business entity or other organization receiving money from the
  institute;
               (3)  own or control, directly or indirectly, a
  financial interest in a business entity or other organization
  receiving money from the institute; or
               (4)  use or receive a substantial amount of tangible
  goods, services, or money from the institute other than
  reimbursement authorized for attendance or expenses.
         (c)  An oversight committee member, an institute employee,
  or an individual related to the employee within the second degree of
  affinity or consanguinity may not serve on the board of directors or
  other governing board of a nonprofit organization established to
  provide support to the institute.
         (d)  An institute employee may not serve on the board of
  directors of a nonprofit organization established with a grant from
  the institute.
         (e)  An employee of a nonprofit organization established
  with a grant from the institute may not serve on the
  commercialization review council.
         (f)  The institute may not participate in a business decision
  of a nonprofit organization established with a grant from the
  institute.
         (g)  Notwithstanding Section 102.156, a member of a research
  and prevention programs committee appointed under this chapter may
  not serve on the board of directors or other governing board of an
  entity receiving a grant from the institute or of a foundation or
  similar organization affiliated with the entity.
         Sec. 102.060.  INVESTIGATION OF CONFLICTS OF INTEREST. (a)
  An oversight committee member, a committee member, or an institute
  employee shall immediately notify the chief executive officer of a
  conflict of interest, including a professional or financial
  interest described by Section 102.058 or 102.156. 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 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 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, 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.
         Sec. 102.061.  FINAL DETERMINATION OF CONFLICT OF INTEREST.
  (a) The chief executive officer or, if applicable, the presiding
  officer of the oversight committee shall make a final determination
  regarding the existence of a conflict of interest, impropriety, or
  self-dealing. The final 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 scientific
  research and prevention programs committee for review.
         (b)  The final determination 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 shall provide written
  notice of the final determination, including any further actions to
  be taken, to the grant applicant requesting an investigation.
         (d)  Unless specifically determined by the chief executive
  officer 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. 102.062.  DISCLOSURE OF CONFLICT OF INTEREST. (a) If an
  oversight committee member has a conflict of interest, including a
  professional or financial interest described by Section 102.058,
  regarding an application that comes before the member for review or
  other action, the member shall:
               (1)  notify the chief executive officer, as provided by
  Section 102.058, 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,
  including a professional or financial interest described by Section
  102.058, regarding an application that comes before the employee
  for review or other action, the employee shall:
               (1)  notify 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)  An oversight 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 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.
         (d)  An oversight 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. 102.063.  ADDITIONAL DUTIES OF COMPLIANCE OFFICER. (a)
  The compliance officer shall adopt and implement a policy on
  in-state or out-of-state residency requirements for members of the
  commercialization review council.
         (b)  The compliance officer shall retain documentation
  relating to:
               (1)  each grant recipient's financial reports;
               (2)  each grant recipient's progress reports; and
               (3)  institute reviews of the financial reports and
  progress reports.
         (c)  The compliance officer shall adopt and implement a
  system to track the date on which a grant recipient's report:
               (1)  is due; and
               (2)  is received by the institute.
         (d)  The compliance officer shall inquire into and monitor
  the status of any required report that is not timely submitted to
  the institute by a grant recipient.
         (e)  The compliance officer shall develop and implement a
  policy on advance payments to grant recipients.
         SECTION 7.  Section 102.101(e), Health and Safety Code, is
  amended to read as follows:
         (e)  A person may not be a member of the oversight committee
  if, at the time the person is appointed, the person or the person's
  spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization receiving money from the
  institute;
               (2)  owns or controls, directly or indirectly, an [more
  than a five percent] interest in a business entity or other
  organization 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.
         SECTION 8.  Section 102.102(c), Health and Safety Code, is
  amended to read as follows:
         (c)  If the chief executive officer [director] has knowledge
  that a potential ground for removal exists, the chief executive
  officer [director] 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 [director] 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.
         SECTION 9.  Section 102.103(a), Health and Safety Code, is
  amended to read as follows:
         (a)  Oversight committee members appointed by the governor,
  lieutenant governor, and speaker of the house serve at the pleasure
  of the appointing officer for staggered six-year terms, with the
  terms of three members expiring on January 31 of each odd-numbered
  year.
         SECTION 10.  Section 102.104, Health and Safety Code, is
  amended to read as follows:
         Sec. 102.104.  OFFICERS. (a) The oversight committee shall
  select a presiding officer from among its members.
         (b)  The presiding officer may not serve more than two years.
         SECTION 11.  Section 102.107, Health and Safety Code, is
  amended to read as follows:
         Sec. 102.107.  POWERS AND DUTIES. The oversight committee
  shall:
               (1)  hire a chief [an] executive officer;
               (2)  annually set priorities, as prescribed by the
  Legislature, for each grant program and each category of funded
  research that receives money under this chapter; and
               (3)  consider the priorities set under Subdivision (2)
  in awarding grants under this chapter [director].
         SECTION 12.  Section 102.151, Health and Safety Code, is
  amended by amending Subsections (a-1) and (b) and adding
  Subsections (c), (e), and (f) to read as follows:
         (a-1)  The chief executive officer [director], with approval
  by simple majority of the members of the oversight committee, shall
  appoint as members of scientific research and prevention programs
  committees experts in the field of cancer research and prevention.
         (b)  Individuals appointed to [the] research and prevention
  programs committees [committee] may be residents of this state or 
  another state.
         (c)  The oversight committee shall establish as scientific
  research and prevention programs committees the following standing
  review committees:
               (1)  a basic research committee;
               (2)  a translation research committee;
               (3)  an infrastructure committee; and
               (4)  a multidisciplinary committee.
         (e)  The oversight committee, as the oversight committee
  considers necessary, may add committee members to a scientific
  research and prevention programs committee or standing review
  committee.
         (f)  The chief executive officer, in consultation with the
  oversight committee, shall implement a system to document any
  change in the amount of honorarium paid to a member of a scientific
  research and prevention programs committee, including information
  explaining the basis for changing the amount.
         SECTION 13.  Section 102.152, Health and Safety Code, is
  amended to read as follows:
         Sec. 102.152.  TERMS OF RESEARCH AND PREVENTION PROGRAMS
  COMMITTEE MEMBERS. Members of a research and prevention programs
  committee serve for terms as determined by the chief executive
  officer [director].
         SECTION 14.  Section 102.156, Health and Safety Code, is
  amended by amending Subsections (a) and (c) and adding Subsection
  (d) to read as follows:
         (a)  A member of a research and prevention programs
  committee, the university advisory committee, or any ad hoc
  committee appointed under this subchapter shall disclose in writing
  to the chief executive officer [director] if the member has a
  professional [an interest in a matter that comes before the
  member's committee] or [has a substantial] financial interest in an
  entity that has a direct interest in a [the] matter that comes
  before the member's committee.
         (c)  A person has a [substantial] financial interest in an
  entity if the person:
               (1)  is an employee, member, director, or officer of
  the entity; or
               (2)  owns or controls, directly or indirectly, an [more
  than a five percent] interest in the entity.
         (d)  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, the other
  governing board, or any committee of 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 research or prevention program applicant's 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 research or prevention
  program applicant's team;
               (7)  is engaged or is actively planning to be engaged in
  collaboration with a primary member of the entity's research or
  prevention program applicant's team; or
               (8)  has long-standing scientific differences or
  disagreements with a primary member of the entity's research or
  prevention program applicant's team, and those differences:
                     (A)  are known to the professional community; and
                     (B)  could be perceived as affecting objectivity.
         SECTION 15.  Section 102.251, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsections (c), (d),
  and (e) to read as follows:
         (a)  The oversight committee shall issue rules regarding the
  procedure for awarding grants to an applicant under this chapter.  
  The rules must require grant applications to include specific
  periodic deliverables that if not met prohibit continued grant
  funding.  The rules must include the following procedures:
               (1)  a research and prevention programs committee shall
  semiquantitatively rate [review] grant applications according to
  predetermined categories and make recommendations to the Program
  Integration Committee, established under Subchapter G, [executive
  director] regarding the award of cancer research grants, including
  a prioritized list that:
                     (A)  ranks the grant applications in the order the
  committee determines applications should be funded; and
                     (B)  includes information explaining how each
  grant application on the list meets the research and prevention
  programs committee's standards for recommendation;
               (2)  the Program Integration Committee [executive
  director] shall submit to the oversight committee a list of grant
  applications, including documentation on the factors the Program
  Integration Committee considered in making the grant
  recommendations, that is substantially based on the list submitted
  by the committee under Subdivision (1) and, to the extent possible,
  gives priority to proposals that:
                     (A)  could lead to immediate or long-term medical
  and scientific breakthroughs in the area of cancer prevention or
  cures for cancer;
                     (B)  strengthen and enhance fundamental science
  in cancer research;
                     (C)  ensure a comprehensive coordinated approach
  to cancer research;
                     (D)  are interdisciplinary or interinstitutional;
                     (E)  address federal or other major research
  sponsors' priorities in emerging scientific or technology fields in
  the area of cancer prevention or cures for cancer;
                     (F)  are matched with funds available by a private
  or nonprofit entity and institution or institutions of higher
  education;
                     (G)  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;
                     (H)  have a demonstrable economic development
  benefit to this state;
                     (I)  enhance research superiority at institutions
  of higher education in this state by creating new research
  superiority, attracting existing research superiority from
  institutions not located in this state and other research entities,
  or enhancing existing research superiority by attracting from
  outside this state additional researchers and resources; and
                     (J)  expedite innovation and commercialization,
  attract, create, or expand private sector entities that will drive
  a substantial increase in high-quality jobs, and increase higher
  education applied science or technology research capabilities; and
               (3)  the institute's chief scientific officer and
  development officer shall compare the list of grant applicants
  submitted to the oversight committee under Subdivision (2) to a
  list of donors from any nonprofit organization established to
  provide support to the institute compiled from information made
  available under Section 102.262(c).
         (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;
               (2)  the application's peer review score;
               (3)  the pre-grant due diligence reviews of the
  application; and
               (4)  if applicable, the intellectual property reviews
  of the application.
         (d)  The chief executive officer may not discuss a grant
  applicant recommendation with a member of the oversight committee
  unless the chief executive officer has fulfilled the requirements
  of Subsections (a)(2) and (c).
         (e)  The institute may not award a grant to an applicant who
  has made a gift or grant to a nonprofit organization established to
  provide support to the institute.
         SECTION 16.  Section 102.252, Health and Safety Code, is
  amended to read as follows:
         Sec. 102.252.  FUNDING [OVERRIDING] RECOMMENDATIONS. (a)  
  The oversight committee must follow the funding recommendations of
  the chief executive officer [director] in the order the chief 
  executive officer [director] submits the applications to the
  oversight committee unless two-thirds of the members of the
  oversight committee vote to disregard a recommendation.
         (b)  The oversight committee shall approve or disapprove
  each grant application submitted to the committee by the chief
  executive officer.
         SECTION 17.  Section 102.255(d), Health and Safety Code, is
  amended to read as follows:
         (d)  Before the oversight committee may make for cancer
  research any grant of any proceeds of the bonds issued under
  Subchapter E, the recipient of the grant must have an amount of
  funds equal to one-half of the grant and dedicate those funds to the
  specific grant proposal dedicated to the research that is the
  subject of the grant request.
         SECTION 18.  Sections 102.260(b) and (c), Health and Safety
  Code, are amended to read as follows:
         (b)  The chief executive officer [director] shall determine
  the grant review process under this section.  The chief executive
  officer [director] may terminate grants that do not meet
  contractual obligations.
         (c)  The chief executive officer [director] shall report at
  least annually to the oversight committee on the progress and
  continued merit of each research program funded by the institute.
         SECTION 19.  Section 102.262, Health and Safety Code, is
  amended by adding Subsection (c) to read as follows:
         (c)  The records of the institute and of a nonprofit
  organization established to provide support to the institute shall,
  to the extent the records pertain specifically to any gift, grant,
  or other consideration provided by the organization to the
  institute, an employee of the institute, or a member of a committee
  of the institute, be made available to the public.  A record that is
  available under this subsection is public information subject to
  Chapter 552, Government Code.
         SECTION 20.  Subchapter F, Chapter 102, Health and Safety
  Code, is amended by adding Section 102.263 to read as follows:
         Sec. 102.263.  COMPLIANCE PROGRAM.  (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 compliance officer.  
  The institute may establish procedures, such as a telephone
  hotline, to allow 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 are confidential:
               (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; and
               (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.
         (d)  Subsection (c) does not apply to information related to
  an individual who consents to disclosure of the information.
         (e)  Information is excepted from disclosure under Chapter
  552, Government Code, if it is collected or produced in a compliance
  program investigation and releasing the information would
  interfere with an ongoing compliance investigation.
         (f)  Information made confidential or excepted from public
  disclosure by this section may be made available to the following on
  request in compliance with applicable law and procedure:
               (1)  a law enforcement agency or prosecutor;
               (2)  a governmental agency responsible for
  investigating the 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.
         (g)  A disclosure under Subsection (f) is not a voluntary
  disclosure for purposes of Section 552.007, Government Code.
         SECTION 21.  Chapter 102, Health and Safety Code, is amended
  by adding Subchapter G to read as follows:
  SUBCHAPTER G. PROGRAM INTEGRATION COMMITTEE
         Sec. 102.301.  COMPOSITION. (a) The program integration
  committee is composed of the following seven members:
               (1)  the chief executive officer;
               (2)  the chief scientific officer;
               (3)  the development officer;
               (4)  the commissioner of state health services;
               (5)  one member appointed by the governor;
               (6)  one member appointed by the lieutenant governor;
  and
               (7)  one member appointed by the speaker of the house of
  representatives.
         (b)  The members appointed under Subsections(a)(5)-(7) must
  have expertise in academic science or business.
         Sec. 102.302.  DUTIES. The program integration committee
  shall:
               (1)  review and assess the ratings assigned by a
  research and prevention programs committee in its initial review of
  grant applications;
               (2)  prioritize the applications that the committee
  determines will have the greatest impact on the health and economy
  of this state;
               (3)  prepare grant application recommendations for the
  oversight committee;
               (4)  make recommendations to the oversight committee
  concerning the development and maintenance of any institute
  investment grants and other investments, including any investment
  requirements prescribed by the legislature or under state law; and
               (5)  ensure that the institute does not duplicate other
  cancer-related research, including research conducted by the
  United States Department of Health and Human Services National
  Institutes of Health.
         SECTION 22.  (a)  As soon as practicable after the effective
  date of this Act, the Cancer Prevention and Research Institute of
  Texas Oversight Committee shall adopt the rules necessary to
  implement the changes in law made by this Act.
         (b)  The changes in law made by this Act apply only to a grant
  application submitted to the Cancer Prevention and Research
  Institute of Texas on or after the effective date of this Act.  A
  grant application submitted before the effective date of this Act
  is governed by the law in effect on the date the application was
  submitted, and that law is continued in effect for that purpose.
         (c)  Not later than January 1, 2014, employees, oversight
  committee members, and members of other committees of the Cancer
  Prevention and Research Institute of Texas must comply with the
  changes in law made by this Act regarding the qualifications of the
  employees and members.
         (d)  Not later than December 1, 2013, the Cancer Prevention
  and Research Institute of Texas Oversight Committee shall employ a
  chief executive officer and a compliance officer as required by
  Sections 102.051(c) and 102.0511, Health and Safety Code, as added
  by this Act.
         (e)  As soon as practicable after the effective date of this
  Act, the Cancer Prevention and Research Institute of Texas
  Oversight Committee shall establish a compliance program as
  required by Section 102.263, Health and Safety Code, as added by
  this Act.
         SECTION 23.  This Act takes effect immediately if it
  receives a vote of two-thirds of all the members elected to each
  house, as provided by Section 39, Article III, Texas Constitution.  
  If this Act does not receive the vote necessary for immediate
  effect, this Act takes effect September 1, 2013.