87R1318 JG-D
 
  By: Menéndez S.B. No. 264
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of the Texas Research Consortium to
  Cure Infectious Diseases (TRANSCEND); authorizing the issuance of
  bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subtitle D, Title 2, Health and Safety Code, is
  amended by adding Chapter 90 to read as follows:
  CHAPTER 90. TEXAS RESEARCH CONSORTIUM TO CURE INFECTIOUS DISEASES
  (TRANSCEND)
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 90.001.  DEFINITIONS. In this chapter:
               (1)  "Consortium" means the Texas Research Consortium
  to Cure Infectious Diseases (TRANSCEND).
               (2)  "Disease" means a disorder of structure or
  function in a human that produces specific signs or symptoms or
  affects a specific location in the human body and that has the
  potential of being prevented by a vaccine or otherwise treated or
  cured.
               (3)  "Oversight committee" means the Texas Research
  Consortium to Cure Infectious Diseases (TRANSCEND) Oversight
  Committee.
               (4)  "Scientific committee" means the Texas Research
  Consortium to Cure Infectious Diseases (TRANSCEND) Scientific
  Committee.
         Sec. 90.002.  PURPOSE. The Texas Research Consortium to
  Cure Infectious Diseases (TRANSCEND) is established to:
               (1)  accelerate advancements in infectious disease
  diagnosis, treatment, prevention, and cures;
               (2)  facilitate innovative research and development to
  prepare for and address public health crises caused by infectious
  diseases;
               (3)  recruit, retain, and invest in leading infectious
  disease experts to research and develop diagnostics, therapies, and
  vaccines for infectious diseases;
               (4)  establish a centralized research location through
  which the consortium will operate and facilitate collaborative
  research on infectious diseases and related disorders and the
  development of treatments and cures for infectious diseases; and
               (5)  communicate the consortium's mission to the
  public.
         Sec. 90.003.  SUNSET PROVISION. The Texas Research
  Consortium to Cure Infectious Diseases (TRANSCEND) is subject to
  Chapter 325, Government Code (Texas Sunset Act), but is not
  abolished under that chapter.  The consortium shall be reviewed
  during the period in which state agencies scheduled to be abolished
  in 2035, and every 12 years after that year, are reviewed.
  SUBCHAPTER B. POWERS AND DUTIES OF CONSORTIUM
         Sec. 90.051.  POWERS AND DUTIES. The consortium:
               (1)  may award grants to persons for the purpose of:
                     (A)  conducting collaborative research on
  infectious diseases and associated conditions and innovative
  methods to prepare for infectious disease outbreaks;
                     (B)  developing treatments and cures, including
  vaccines, for diseases and associated conditions;
                     (C)  developing education initiatives and
  conducting outreach to engage and inform the public on infectious
  diseases and associated conditions; and
                     (D)  developing initiatives to prepare for and
  rapidly respond to infectious disease outbreaks and public health
  crises;
               (2)  shall establish a centralized research location
  through which the consortium will operate and facilitate
  collaborative research on infectious diseases and related
  disorders and the development of treatments and cures for
  infectious diseases;
               (3)  shall establish appropriate standards and
  oversight bodies to ensure money authorized under this chapter is
  properly used for infectious disease research and preparation and
  development of infectious disease treatments and cures;
               (4)  shall develop collaborative research
  opportunities in accordance with Subchapter F;
               (5)  may employ necessary staff to provide
  administrative support;
               (6)  shall continuously monitor contracts or
  agreements entered into under this chapter to ensure that each
  grant recipient or person conducting research under Subchapter F
  complies with the terms and conditions of the contract or
  agreement;
               (7)  shall ensure that all grant applications comply
  with this chapter and rules adopted under this chapter before the
  applications are submitted to the scientific committee for
  consideration and approval; and
               (8)  shall establish procedures to document that the
  consortium, the consortium's employees, and other consortium
  members appointed or hired under this chapter comply with any laws
  and rules governing conflicts of interest.
         Sec. 90.052.  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
  public or private partnerships and coalitions.
         (b)  The consortium 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 applications comply with
  this chapter and rules adopted under this chapter before the
  applications are submitted to the scientific committee for
  consideration and approval;
               (2)  attend and observe meetings of the scientific
  committee to ensure compliance with this chapter and rules adopted
  under this chapter; and
               (3)  perform other duties assigned under this chapter
  or by the oversight committee.
         (c)  The chief executive officer may propose and the
  oversight committee may approve the hiring of additional officers.
  An officer hired under this subsection shall report directly to the
  chief executive officer.
         Sec. 90.053.  CONSORTIUM PRINCIPAL OFFICE. (a)  The
  consortium shall establish its principal office at a facility in
  this state that:
               (1)  is a world-recognized leader in infectious disease
  research and vaccine development;
               (2)  is central to all parts of this state, including
  areas with high-risk populations most vulnerable to infectious
  diseases;
               (3)  has exclusive jurisdiction over a laboratory
  facility with a federal biosafety level of BSL-4, as designated by
  the Centers for Disease Control and Prevention; and
               (4)  has access to a sufficient number of suitable
  specimens for vaccine testing efficacy and safety.
         (b)  The consortium's principal office is the consortium's
  central research location through which the consortium operates and
  facilitates collaborative research under this chapter.
         (c)  The consortium shall adopt appropriate procedures and
  safeguards to ensure:
               (1)  the consortium and the facility described by
  Subsection (a) are governed and operated independently of each
  other; and
               (2)  the facility described by Subsection (a) receives
  no unfair advantage in grants awarded under this chapter.
         Sec. 90.054.  ANNUAL REPORT; INTERNET POSTING.  Not later
  than January 31 of each year, the consortium shall prepare and
  submit to the governor, the lieutenant governor, and each member of
  the legislature and post on the consortium's Internet website a
  written report that includes:
               (1)  the number of grants awarded during the preceding
  state fiscal year;
               (2)  a list of grant recipients for the preceding state
  fiscal year, including the dollar amount of the grant awarded to
  each recipient;
               (3)  the consortium's administrative expenses for the
  preceding state fiscal year;
               (4)  an assessment on the availability of money for
  conducting research authorized under this chapter from sources
  other than the consortium;
               (5)  a summary of findings during the preceding state
  fiscal year from research projects funded by the consortium,
  including any promising new research areas;
               (6)  an assessment of the relationship between the
  research projects funded by the consortium during the preceding
  state fiscal year and the overall strategy of the consortium's
  research goals;
               (7)  a statement of the consortium's strategic research
  and financial plans for the next state fiscal year;
               (8)  an estimate of the amount of money the state spent
  during the preceding state fiscal year to treat individuals with
  infectious diseases, including the amount spent to treat
  individuals with diseases through the child health plan program,
  Medicaid, the Teacher Retirement System of Texas, and the Employees
  Retirement System of Texas; and
               (9)  a statement of the consortium's compliance program
  activities during the preceding state fiscal year, including any
  proposed legislative or other recommendations identified through
  those activities.
         Sec. 90.055.  INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY
  COMPTROLLER. (a) The consortium shall annually commission an
  independent financial audit of the consortium's activities from a
  certified public accounting firm.
         (b)  The consortium shall provide the audit to the
  comptroller and, as soon as practicable after receiving the audit,
  the comptroller shall:
               (1)  review and evaluate the audit and issue a public
  report of that review and evaluation; and
               (2)  make recommendations to the consortium regarding
  the financial practices of the consortium.
         (c)  The oversight committee shall review the audit and the
  comptroller's report and recommendations. As applicable, the
  oversight committee shall seek to modify the consortium's financial
  practices based on the audit, report, and recommendations.
         Sec. 90.056.  GRANT RECORDS. (a) The consortium shall
  maintain complete records of:
               (1)  the review of each grant application submitted to
  the consortium, including the score assigned to each grant
  application reviewed, regardless of whether the grant application
  is approved by the scientific committee or withdrawn after
  submission to the scientific committee;
               (2)  each grant recipient's financial reports,
  including dedicated matching money provided by the recipient for
  the specified research project;
               (3)  progress reports for each research project awarded
  money under this chapter;
               (4)  the consortium's policies and procedures for
  determining any conflicts of interest and identifying each
  principal investor and owner of each grant recipient as provided by
  consortium rules; and
               (5)  the consortium's review of the grant recipient's
  financial and progress reports.
         (b)  The consortium shall have periodic audits conducted of
  any electronic grant management system used to maintain records
  under this section of grant applications and grants awarded. The
  consortium shall address in a timely manner each issue identified
  in an audit of the system.
         Sec. 90.057.  GIFTS AND GRANTS. The consortium may solicit
  and accept gifts and grants from any source to carry out the
  purposes of this chapter.
  SUBCHAPTER C. OVERSIGHT COMMITTEE
         Sec. 90.101.  COMPOSITION OF OVERSIGHT COMMITTEE;
  ELIGIBILITY OF MEMBERS. (a) The oversight committee is the
  governing body of the consortium.
         (b)  The oversight committee is composed of:
               (1)  the following nine voting members:
                     (A)  three members appointed by the governor;
                     (B)  three members appointed by the lieutenant
  governor; and
                     (C)  three members appointed by the governor from
  a list provided to the governor by the speaker of the house of
  representatives; and
               (2)  an ex officio nonvoting member, the chief
  executive officer of the facility described by Section 90.053(a).
         (c)  The voting members of the oversight committee must
  represent the geographic and cultural diversity of this state.
         (d)  In making appointments or recommendations for
  appointments to the oversight committee, the governor, lieutenant
  governor, and speaker of the house of representatives must each
  appoint or recommend, as applicable, at least one person who is a
  physician or a scientist with extensive experience in epidemiology,
  vaccines, or public health.
         (e)  A person may not be a voting member of the oversight
  committee if 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
  consortium;
               (2)  owns or controls, directly or indirectly, an
  interest in a business entity or other organization receiving money
  from the consortium; or
               (3)  uses or receives a substantial amount of tangible
  goods, services, or money from the consortium, other than
  reimbursement authorized by this chapter for oversight committee
  membership, attendance, or expenses.
         Sec. 90.102.  TERMS; VACANCY; REMOVAL. (a) Oversight
  committee members serve at the pleasure of the appointing authority
  for staggered four-year terms, with the terms of four or five voting
  members expiring January 31 of each even-numbered year.
         (b)  Not later than the 30th day after the date an oversight
  committee member's term expires, the appropriate appointing
  authority shall appoint a replacement in the same manner as the
  original appointment.
         (c)  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.
         (d)  It is a ground for removal from the oversight committee
  that a member:
               (1)  is ineligible for membership under Section 90.101;
               (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 oversight committee.
         Sec. 90.103.  OFFICERS. (a) The oversight committee shall
  elect a presiding officer and assistant presiding officer from
  among its voting members every two years. The oversight committee
  may elect additional officers from among its voting members.
         (b)  The presiding officer and assistant presiding officer
  may not serve in the position to which the officer was elected for
  two 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 the employees of the consortium.
         Sec. 90.104.  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. 90.105.  CONFLICT OF INTEREST; DISCLOSURE AND RECUSAL.
  (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, members of
  the scientific committee, and consortium employees.
         (b)  Nothing in this chapter limits the authority of the
  oversight committee to adopt additional conflict-of-interest rules
  and standards.
         (c)  If an oversight committee member or scientific
  committee member has a conflict of interest based on standards
  adopted under this section regarding a grant application that comes
  before the member for review or other action, the member shall:
               (1)  provide to the chief executive officer and the
  presiding officer of the oversight committee, or if the presiding
  officer has the conflict, the next ranking member of the oversight
  committee, written notice of 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 grant
  application and from accessing information regarding the matter to
  be decided.
         Sec. 90.106.  RULEMAKING AUTHORITY. The oversight committee
  may adopt rules necessary to administer this chapter.
         Sec. 90.107.  CODE OF CONDUCT. The oversight committee
  shall adopt a code of conduct applicable to each member of the
  oversight committee, member of the scientific committee, and
  consortium employee.
         Sec. 90.108.  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. FUNDING
         Sec. 90.151.  INFECTIOUS DISEASE RESEARCH FUND. (a) The
  infectious disease research fund is a dedicated account in the
  general revenue fund.
         (b)  The fund consists of:
               (1)  the proceeds from the issuance of bonds authorized
  by Section 69, Article III, Texas Constitution, and any additional
  appropriations of money to the fund by the legislature;
               (2)  gifts and grants, including grants from the
  federal government, received for the fund; and
               (3)  interest, dividends, and other income earned on
  the investment of money in the fund.
         (c)  Money in the fund may only be used for:
               (1)  awarding grants authorized under this chapter;
               (2)  purchasing, subject to approval by the oversight
  committee, research and laboratory facilities by or on behalf of a
  grant recipient;
               (3)  operating the consortium; and
               (4)  debt service on bonds issued as authorized by
  Section 69, Article III, Texas Constitution.
         Sec. 90.152.  ISSUANCE OF GENERAL OBLIGATION BONDS. (a) The
  consortium may request the Texas Public Finance Authority to issue
  and sell general obligation bonds of the state as authorized by
  Section 69, Article III, Texas Constitution.
         (b)  The Texas Public Finance Authority may not issue and
  sell more than $300 million in general obligation bonds authorized
  by this section in a state fiscal year.
         (b-1)  The Texas Public Finance Authority may not issue and
  sell more than $300 million in general obligation bonds authorized
  by this section before January 1, 2023. This subsection expires
  September 1, 2023.
         (c)  The consortium 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 in separate funds or accounts in the state treasury, as
  prescribed by the proceedings authorizing the bonds.
         (f)  The proceeds of the bonds may be used only to:
               (1)  make grants authorized by Section 69, Article III,
  Texas Constitution;
               (2)  purchase research facilities approved by the
  consortium;
               (3)  pay costs of operating the consortium; or
               (4)  pay costs of issuing the bonds and related bond
  administration costs of the Texas Public Finance Authority.
         Sec. 90.153.  AUTHORIZED USE OF FUNDS. (a) A grant
  recipient awarded money from the infectious disease research fund
  established under Section 90.151 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 consortium.
         (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.
  SUBCHAPTER E. SCIENTIFIC COMMITTEE AND GRANT AWARD PROCEDURES
         Sec. 90.201.  SCIENTIFIC COMMITTEE. (a) The consortium
  shall establish a scientific committee. The committee is composed
  of seven or nine members appointed by the oversight committee.  The
  members must:
               (1)  reside in this state; and
               (2)  have expertise in the field of infectious diseases
  or another field considered appropriate by the oversight committee.
         (b)  The scientific committee shall elect a presiding
  officer and assistant presiding officer from among its members
  every two years. The scientific committee may elect additional
  officers from among its members.
         (c)  Scientific committee members serve at the pleasure of
  the oversight committee.
         (d)  The scientific committee may establish one or more
  advisory committees to assist the scientific committee in
  performing its duties under this chapter. A member of an advisory
  committee established under this subsection:
               (1)  may reside in or outside of this state;
               (2)  must have appropriate expertise to carry out the
  purposes for which the advisory committee was established; and
               (3)  serves at the pleasure of the scientific
  committee.
         Sec. 90.202.  GRANT APPLICATION REVIEW AND SELECTION.  (a)  
  The scientific committee shall receive, score, and select grant
  applications to fund based on the procedures and criteria described
  by this section. The oversight committee shall contract with and
  award grants to each grant applicant selected by the scientific
  committee.
         (b)  The scientific committee shall establish procedures and
  criteria for reviewing grant applications and awarding grants under
  this chapter. The procedures must require the scientific committee
  to score and select grant applications to fund by developing a
  prioritized list that:
               (1)  ranks the grant applications in the order the
  scientific committee determines the research projects proposed by
  the applications should be funded; and
               (2)  includes information explaining the reasons each
  grant application on the list meets the scientific committee's
  standards for funding.
         (c)  The scientific committee must consider the grant
  applicant's capability in:
               (1)  conducting research on infectious diseases and
  associated conditions;
               (2)  developing treatments and cures, including
  vaccines, for infectious diseases and associated conditions that
  are marketable to the public;
               (3)  conducting outreach to engage and inform the
  public on the applicant's research results and best practices for
  treatment of infectious diseases and associated conditions;
               (4)  developing innovative methods to prepare for
  infectious disease outbreaks; and
               (5)  developing educational initiatives on the
  prevention of and treatment for infectious diseases and associated
  conditions.
         (d)  The chief compliance officer shall compare each grant
  applicant to a list of donors from any nonprofit organization
  established to provide support to the consortium before the
  application is submitted to the scientific committee for review and
  selection and again before any contract is executed or grant is
  awarded to the applicant.
         (e)  The consortium may not award a grant to an applicant who
  has made a gift or grant to the consortium or a nonprofit
  organization established to provide support to the consortium.
         Sec. 90.203.  MAXIMUM AMOUNT OF ANNUAL AWARDS. The
  consortium may not award more than $300 million in grants under this
  chapter in a state fiscal year.
         Sec. 90.204.  PERIOD FOR AWARDS. The consortium may not
  award a grant under this chapter after August 31, 2034.
         Sec. 90.205.  CONTRACT TERMS. (a) The oversight committee
  shall negotiate on behalf of the state regarding a grant awarded
  under this chapter.
         (b)  Before awarding money to a grant recipient selected by
  the scientific committee, the oversight committee shall enter into
  a written contract with the grant recipient. The contract may
  specify that:
               (1)  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 this state the grant money used
  to pay for the capital improvement, with interest at the rate and
  according to the other terms provided by the contract; and
                           (ii)  share with this state a proportionate
  amount of any profit realized from the sale;
               (2)  if the grant recipient has not used grant money
  awarded under this chapter for the purposes for which the grant was
  intended, the recipient shall repay that amount and any related
  interest applicable under the contract to this state 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 consortium may terminate the
  contract using the written process prescribed in the contract and
  require the recipient to repay the grant money awarded under this
  chapter and any related interest applicable under the contract to
  this state at the agreed rate and on the agreed terms.
         (c)  The contract must:
               (1)  require, in accordance with Subsection (d), the
  grant recipient to dedicate an amount of matching funds equal to
  one-half of the amount of the research grant awarded; and
               (2)  specify:
                     (A)  the amount of matching funds to be dedicated
  under Subdivision (1);
                     (B)  the period in which the grant award must be
  spent;
                     (C)  the name of the research project to which
  matching funds are to be dedicated; and
                     (D)  the specific deliverables of the project that
  is the subject of the grant proposal.
         (d)  Before the oversight committee may award for infectious
  disease research any grant of any proceeds of the bonds issued under
  this chapter, the recipient of the grant must certify that the
  recipient has an amount of funds equal to one-half of the grant and
  dedicate those funds to the research that is the subject of the
  grant request. The consortium shall adopt rules specifying the
  manner in which a grant recipient fulfills obligations under this
  subsection.
         Sec. 90.206.  GRANT EVALUATION. (a) The oversight
  committee shall require as a condition of a grant award that the
  grant recipient submit to regular inspection reviews by consortium
  staff of the research project for which the award was made,
  including progress oversight reviews, to ensure compliance with the
  terms of the award and to ensure the scientific merit of the
  research.
         (b)  The chief executive officer shall determine the review
  process under this section. The chief executive officer may
  suspend or terminate in accordance with Subsection (f) grants made
  that fail to meet contractual obligations.
         (c)  The chief executive officer shall report at least
  annually to the oversight committee on the progress and continued
  merit of each research project funded by a grant under this chapter.
         (d)  The consortium shall establish and implement reporting
  requirements to ensure that each grant recipient complies with the
  terms and conditions of the grant contract, including verification
  of the amounts of matching funds dedicated to the research project
  that is the subject of the grant award to the grant recipient.
         (e)  The consortium shall implement a system to:
               (1)  track the dates on which reports under Subsection
  (d) are due and received by the consortium; and
               (2)  monitor the status of any required report that is
  not timely submitted to the consortium.
         (f)  The chief compliance officer shall monitor compliance
  with this section and at least annually inquire into and monitor the
  status of any required report that is not timely submitted to the
  consortium by a grant recipient. The chief compliance officer
  shall notify the general counsel for the consortium and the
  oversight committee of a grant recipient that has not maintained
  compliance with the reporting requirements or matching funds
  provisions of the grant contract to allow the consortium to begin
  suspension or termination of the grant contract under Subsection
  (b). This subsection does not limit other remedies available under
  the grant contract.
         Sec. 90.207.  COMPLIANCE PROGRAM. (a) In this section,
  "compliance program" means a process to assess and ensure
  compliance by the oversight committee members, scientific
  committee members, and consortium 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 consortium shall establish a compliance program
  that operates under the direction of the chief compliance officer.
  The consortium 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.
         Sec. 90.208.  MEDICAL ETHICS. The oversight committee shall
  ensure that a grant recipient of money under this chapter conduct
  any associated research project:
               (1)  with full consideration for the ethical and
  medical implications of the research project; and
               (2)  in a manner that complies with federal and state
  laws applicable to the research project.
         Sec. 90.209.  PATENT ROYALTIES AND LICENSE REVENUES PAID TO
  STATE. (a) The oversight committee shall establish standards to
  require each research project awarded money under this chapter to
  be subject to an intellectual property agreement that allows the
  state to collect royalties, income, and other benefits, including
  interest or proceeds resulting from securities and equity
  ownership, realized as a result of the research project.
         (b)  In determining the state's interest in any intellectual
  property rights, the oversight committee shall balance the
  opportunity of this state to benefit from the patents, royalties,
  licenses, and other benefits resulting from basic research, vaccine
  development, and clinical trials with the need to ensure that
  essential infectious disease research is not unreasonably hindered
  by the intellectual property agreement and that the agreement does
  not unreasonably remove the incentive on the part of each grant
  recipient and associated individuals.
  SUBCHAPTER F. COLLABORATIVE RESEARCH OPPORTUNITIES
         Sec. 90.251.  OPTION TO EXPAND ON RESEARCH FINDINGS. (a)
  The consortium shall develop opportunities for a person, regardless
  of whether the person is a grant applicant or recipient, to access
  and expand on the research findings of:
               (1)  a finished research project funded by the
  consortium under this chapter; or
               (2)  any research or other work conducted by a person
  under this subchapter. 
         (b)  The consortium may establish and maintain an electronic
  system through which a person may access information on research
  findings described by Subsection (a).
         Sec. 90.252.  COLLABORATION REQUIREMENTS. (a) The
  consortium shall ensure that any research or other work that
  expands on research findings described by Section 90.251(a):
               (1)  proportionally recognizes the contributions made
  by each person who participated in the underlying research and in
  the new research or other work; and
               (2)  is subject to the same intellectual property
  agreement requirements for a research project under Section 90.209.
         (b)  A person seeking to expand on research findings
  described by Section 90.251(a) must:
               (1)  submit an application to and receive approval from
  the scientific committee;
               (2)  allow the consortium to conduct the same
  evaluation procedures for a grant recipient under Section 90.206;
  and
               (3)  allow the consortium to retain the comprehensive
  research findings of any research or other work conducted by the
  person to enable other persons to further expand on those research
  findings under this subchapter.
         SECTION 2.  (a) Not later than January 31, 2022, the
  appropriate appointing authority shall appoint the members to the
  Texas Research Consortium to Cure Infectious Diseases (TRANSCEND)
  Oversight Committee as required by Section 90.101, Health and
  Safety 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 90.101, Health and Safety Code,
  as added by this Act, in making the initial appointments to the
  Texas Research Consortium to Cure Infectious Diseases (TRANSCEND)
  Oversight Committee under that section:
               (1)  the governor shall designate:
                     (A)  three members to serve terms expiring January
  31, 2024, including one member from the list provided by the speaker
  of the house of representatives; and
                     (B)  three members to serve terms expiring January
  31, 2026, including two members from the list provided by the
  speaker of the house of representatives; and
               (2)  the lieutenant governor shall designate:
                     (A)  one member to serve a term expiring January
  31, 2024; and
                     (B)  two members to serve terms expiring January
  31, 2026.
         SECTION 3.  Notwithstanding Section 90.054, Health and
  Safety Code, as added by this Act, the Texas Research Consortium to
  Cure Infectious Diseases (TRANSCEND) is not required to submit a
  report under that section until January 31, 2023.
         SECTION 4.  This Act takes effect January 1, 2022, but only
  if the constitutional amendment proposed by the 87th Legislature,
  Regular Session, 2021, providing for the establishment of the Texas
  Research Consortium to Cure Infectious Diseases (TRANSCEND) and
  authorizing the issuance of up to $3 billion in general obligation
  bonds to fund collaborative research on and development of
  infectious disease treatments and cures for humans is approved by
  the voters. If that amendment is not approved by the voters, this
  Act has no effect.