84R27499 JSC-D

By: Schwertner, et al. S.B. No. 197

(Keffer)

Substitute the following for S.B. No. 197: No.

A BILL TO BE ENTITLED

AN ACT

relating to the financial self-sufficiency of the Cancer Prevention and Research Institute of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 102, Health and Safety Code, is amended by adding Section 102.005 to read as follows:

Sec. 102.005. FINANCIAL SELF-SUFFICIENCY PLAN. (a) The institute shall develop a plan that specifies how the institute will become financially self-sufficient and continue to operate without primarily state funds other than patent royalties and license revenues realized as a result of projects undertaken with money awarded under Subchapter E.

(b) The plan described by Subsection (a) must:

(1) specify the steps the institute will take to accomplish the transition to financial self-sufficiency after issuance of the $3 billion in general obligation bonds authorized by Article III, Section 67 of the Texas Constitution;

(2) specify potential sources of funding other than state money to be used to operate the institute after issuance of the $3 billion in general obligation bonds authorized by Article III, Section 67 of the Texas Constitution;

(3) provide a projection of patent royalties and license revenues to be realized annually as a result of projects undertaken with money awarded under Subchapter E for a period extending through at least 2030;

(4) describe how the institute will structure state-funded grants, to ensure that all recipients of grants that use state money may complete any work for which the grant was made after the last of the $3 billion in general obligation bonds authorized by Article III, Section 67 of the Texas Constitution is used to reimburse grant awardees for allowable expenditures pursuant to institute award contract terms;

(5) provide an assessment of how much funding would be required to, at a minimum, manage and protect the state's $3 billion investment in cancer research and prevention beyond the issuance of the $3 billion in general obligation bonds authorized by Article III, Section 67 of the Texas Constitution;

(6) provide an estimate of the effect on cancer incidence and mortality rates in Texas if the institute is not extended beyond the issuance of the $3 billion in general obligation bonds authorized by Article III, Section 67 of the Texas Constitution; and

(7) provide an estimate of the economic impact in Texas if the institute is not extended beyond the issuance of the $3 billion in general obligation bonds authorized by Article III, Section 67 of the Texas Constitution.

(c) The institute shall submit the initial plan to the legislature not later than December 1, 2016. The institute shall submit an updated plan before December 1 of each subsequent year.

(d) This section expires September 1, 2021.

SECTION 2. 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, 2015.