88R19433 SRA-F
 
  By: Thompson of Harris, Craddick, Buckley, H.B. No. 15
      et al.
 
  Substitute the following for H.B. No. 15:
 
  By:  Kuempel C.S.H.B. No. 15
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Mental Health and Brain Research
  Institute of Texas.
         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. MENTAL HEALTH AND BRAIN RESEARCH INSTITUTE OF TEXAS
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 157.001.  DEFINITIONS. In this chapter:
               (1)  "Institute" means the Mental Health and Brain
  Research Institute of Texas.
               (2)  "Oversight committee" means the Mental Health and
  Brain Research Institute of Texas Oversight Committee.
               (3)  "Peer review committee" means the Mental Health
  and Brain Research Institute of Texas Peer Review Committee.
               (4)  “Program integration committee” means the Mental
  Health and Brain Research Institute of Texas Program Integration
  Committee.
               (5)  "Research plan" means the Texas Mental Health and
  Brain Health Research Plan developed by the institute.
         Sec. 157.002.  PURPOSES. The Mental Health and Brain
  Research Institute of Texas is established to:
               (1)  create and expedite innovation in mental health
  and brain research to improve the health of residents of this state,
  enhance the potential for a medical or scientific breakthrough in
  mental health and brain-related sciences and biomedical research,
  and enhance the mental health and brain research superiority of
  this state;
               (2)  attract, create, or expand research capabilities
  of eligible institutions of higher education and other public or
  private entities by awarding grants to promote a substantial
  increase in mental health and brain research, strategies for
  prevention of mental health and brain-related diseases, mental
  health and brain health initiatives, and the creation of
  high-quality jobs in this state; and
               (3)  develop and implement a research plan to foster
  synergistic collaboration and investigation into mental health and
  brain health research by eligible institutions of higher education
  and their partners.
         Sec. 157.003.  STATE AUDITOR. Nothing in this chapter
  limits the authority of the state auditor under Chapter 321,
  Government Code, or other law.
  SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
         Sec. 157.051.  POWERS AND DUTIES. (a) The institute:
               (1)  may make grants to provide money to institutions
  of learning, advanced medical research facilities, public and
  private persons, and collaborations in this state to further the
  purposes of this chapter, including:
                     (A)  implementation of the research plan;
                     (B)  research, such as translational and clinical
  research into:
                           (i)  the causes of and prevention,
  treatment, rehabilitation, protocols, and cures for mental health
  and human brain-related diseases, syndromes, disorders,
  dysfunction, injuries, developmental issues, neurological health
  issues, behavioral health issues, and substance use disorders and
  other addictions; and
                           (ii)  any other area impacting mental health
  or the brain, including an area that directly or indirectly impacts
  or is impacted by mental health or 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 mental
  health and brain research; and
                     (D)  prevention programs and strategies to
  mitigate the incidence of detrimental health impacts on mental
  health or the brain;
               (2)  shall collaborate with relevant state agencies,
  coordinating councils, and consortiums to enhance mental health and
  brain-related health care and research;
               (3)  shall establish the appropriate standards and
  oversight bodies to ensure money authorized under this chapter is
  properly used for the purposes of this chapter;
               (4)  shall employ necessary staff to provide
  administrative support to the institute;
               (5)  may contract with another state agency to share
  the cost of administrative services, including grant accounting,
  grant monitoring, technical and document management of the grant
  application review process, legal services, and compliance
  services;
               (6)  shall monitor grant contracts authorized by this
  chapter and ensure that each grant recipient complies with the
  terms and conditions of the grant contract;
               (7)  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;
               (8)  shall establish procedures to document that 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
               (9)  shall create a statewide research and clinical
  data registry for mental health and brain research.
         (b)  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 by 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 to report incidents of noncompliance to the oversight
  committee.
         (c)  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 PUBLIC 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 the standing committee of each house
  of the legislature with primary jurisdiction over institute matters
  and post on the institute's Internet website a report that
  outlines:
               (1)  the institute's activities under this chapter;
               (2)  a list of recipients that were awarded grants
  during the preceding state fiscal year, including the grant amount
  awarded to each recipient;
               (3)  any research accomplishments achieved during the
  preceding state fiscal year by a grant recipient or the recipient's
  partners;
               (4)  an overview summary of the institute's most recent
  audited financial statement;
               (5)  an assessment of the relationship between the
  institute's grants and the strategy of its research program;
               (6)  a statement of the institute's strategic research
  plans;
               (7)  an estimate of the financial cost to this state of
  mental health and brain disease during the most recent state fiscal
  year for which data is available, including the amounts this state
  spent related to mental health and brain disease through 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 that
  require recusal under this chapter or rules adopted under this
  chapter;
                     (B)  any unreported conflicts of interest
  confirmed by an investigation conducted under Section 157.254,
  including any actions taken by the institute regarding an
  unreported conflict of interest and subsequent investigation; and
                     (C)  any waivers granted through the process
  established under Section 157.253; and
               (10)  the institute's future direction.
         Sec. 157.054.  INDEPENDENT FINANCIAL AUDIT. (a) The
  institute shall annually commission an independent financial audit
  of its activities from a certified public accounting firm.
         (b)  The oversight committee shall review the annual
  financial audit and the financial practices of the institute.
         Sec. 157.055.  GRANT RECORDS. (a)  The institute shall
  maintain complete records of:
               (1)  regardless of whether the grant application is
  funded by the institute or is withdrawn after submission to the
  institute, 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 157.302;
               (2)  each grant recipient's financial reports,
  including the amount of matching money dedicated to the research
  specified for the grant award;
               (3)  each grant recipient's progress reports;
               (4)  for the purpose of determining any conflict of
  interest, the identity of each principal investor and owner of each
  grant recipient as provided by institute rules; and
               (5)  the institute's review of the grant recipient's
  financial reports and progress reports.
         (b)  The institute shall keep the records described by
  Subsection (a) until at least the 15th anniversary of the date the
  record was issued.
         (c)  The institute shall have prepared periodic audits of any
  electronic grant management system used to maintain records of
  grant applications and grant awards under this section. The
  institute shall timely address each weakness identified in an audit
  of the system.
         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.
         Sec. 157.058.  COMPLIANCE PROGRAM. (a) The institute shall
  establish a compliance program that operates under the direction of
  the institute's chief compliance officer to monitor compliance with
  this chapter and rules adopted under this chapter and to use to
  report incidents of noncompliance to the oversight committee.
         (b)  The chief compliance officer or designee shall attend
  and observe meetings of the peer review committee and the program
  integration committee to ensure compliance with this chapter and
  rules adopted under this chapter.
         (c)  The chief compliance officer shall submit a written
  report to the oversight committee confirming that each grant
  application recommendation included on the list submitted by the
  program integration committee under Section 157.302(a)(2) followed
  the oversight committee's rules regarding the procedure for
  awarding grants under this chapter. The report must contain all
  relevant information on:
               (1)  the peer review process for the grant application; 
               (2)  the application's peer review score assigned by
  the peer review committee; 
               (3)  adherence to the conflict-of-interest
  notification and recusal process; and
               (4)  the confirmation that a grant applicant
  recommended for approval did not make any gift or grant prohibited
  by Section 157.302(f).
         (d)  To ensure each grant recipient complies with reporting
  requirements included in the grant contract and the rules adopted
  under this chapter, the institute shall implement a system to: 
               (1)  track the dates on which grant recipient reports
  are due and are received by the institute; and
               (2)  monitor the status of any required report that a
  grant recipient does not timely submit to the institute.
         (e)  The chief compliance officer shall:
               (1)  monitor compliance with this section;
               (2)  inquire into and monitor the status of any
  required report that a grant recipient does not timely submit to the
  institute; and
               (3)  notify the general counsel of the institute and
  the oversight committee of a grant recipient that has not complied
  with the reporting requirements of the grant contract to allow the
  institute to suspend or terminate the grant contract as warranted.
         (f)  The chief compliance officer shall establish procedures
  for investigating allegations of fraud, waste, or abuse of state
  resources against oversight committee members, institute employees
  or contractors, grant applicants, or grant recipients. The
  procedures must include:
               (1)  private access to the compliance program office,
  such as a telephone hotline; and
               (2)  to the extent possible, preservation of the
  confidentiality of communications and the anonymity of a person
  submitting a compliance report related to fraud, waste, or abuse or
  participating in a compliance investigation.
  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)  The oversight committee members must represent the
  geographic and cultural diversity of this state.
         (d)  In making appointments to the oversight committee, the
  governor, lieutenant governor, and speaker of the house of
  representatives:
               (1)  must each appoint at least one person who is a
  physician or a scientist with extensive experience in the field of
  mental health or brain disease or public health; and
               (2)  should attempt to include, if possible:
                     (A)  persons affected by mental health or brain
  disease; or
                     (B)  family members or caregivers of persons
  affected by mental health or brain disease.
         (e)  A person may not be an oversight committee member if the
  person or the person's spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization receiving money from the
  institute;
               (2)  owns or controls, directly or indirectly, an
  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.
         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(e);
               (2)  cannot, because of illness or disability,
  discharge the member's duties for a substantial part of the member's
  term; or
               (3)  is absent from more than half of the regularly
  scheduled oversight committee meetings 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 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 appointed by the governor, lieutenant governor, and speaker
  of the house serve at the pleasure of the appointing official for
  staggered six-year terms, with the terms of three members expiring
  on January 31 of each odd-numbered year.
         (b)  If a vacancy occurs on the oversight committee, the
  appropriate appointing official shall appoint a successor in the
  same manner as the original appointment to serve for the remainder
  of the unexpired term. The appropriate appointing official 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. An oversight committee member 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.  MEETINGS. (a)  The oversight committee shall
  hold at least one public meeting each quarter of the calendar year,
  with appropriate notice and a formal public comment period.
         (b)  The oversight committee may conduct a closed meeting in
  accordance with Subchapter E, Chapter 551, Government Code, to
  discuss issues related to:
               (1)  managing, acquiring, or selling securities or
  other revenue-sharing obligations realized under the standards
  established as required by Section 157.305; and
               (2)  an ongoing compliance investigation into issues
  related to fraud, waste, or abuse of state resources.
         Sec. 157.107.  POWERS AND DUTIES. (a) The oversight
  committee shall:
               (1)  hire a chief executive officer;
               (2)  annually set priorities for each grant program
  that receives money under this chapter; and
               (3)  consider the priorities set under Subdivision (2)
  in awarding grants under this chapter.
         (b)  The oversight committee shall adopt a code of conduct
  applicable to each oversight committee member, program integration
  committee member, peer review committee member, and institute
  employee that includes provisions prohibiting the member, the
  employee, or the member's or employee's spouse from:
               (1)  accepting or soliciting any gift, favor, or
  service that could reasonably influence the member or employee in
  the discharge of official duties or that the member, employee, or
  spouse knows or should know is being offered with the intent to
  influence the member's or employee's official conduct;
               (2)  accepting employment or engaging in any business
  or professional activity that would reasonably require or induce
  the member or employee to disclose confidential information
  acquired in the member's or employee's official position;
               (3)  accepting other employment or compensation that
  could reasonably impair the member's or employee's independent
  judgment in the performance of official duties;
               (4)  making personal investments or holding 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 soliciting, accepting,
  or agreeing to accept any benefit for exercising the member's
  official powers or performing the member's or employee's official
  duties in favor of another;
               (6)  leasing, directly or indirectly, any property,
  capital equipment, employee, or service to any entity that receives
  a grant from the institute;
               (7)  submitting a grant application for funding by the
  institute;
               (8)  serving on the board of directors of an
  organization established with a grant from the institute; or
               (9)  serving on the board of directors of a grant
  recipient.
         Sec. 157.108.  RULEMAKING AUTHORITY. The oversight
  committee may adopt rules to administer this chapter.
         Sec. 157.109.  FINANCIAL STATEMENT REQUIRED. Each oversight
  committee member 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 a peer review committee. The chief
  executive officer, with approval by a simple majority of the
  oversight committee members, shall appoint as members of the peer
  review committee experts in fields related to mental health or the
  brain, including research, health care, disease treatment and
  prevention, and other study areas and trained patient advocates who
  meet the qualifications adopted under Subsection (c).
         (b)  The oversight committee shall adopt a written policy on
  in-state or out-of-state residency requirements for peer review
  committee members.
         (c)  The oversight committee shall adopt rules regarding the
  qualifications required of a trained patient advocate committee
  member for a peer review committee.  The rules must require the
  trained patient advocate to successfully complete science-based
  training.
         (d)  A peer review committee member may receive an honorarium
  and may be reimbursed for travel expenses incurred in conducting
  committee business. Subchapter B, Chapter 2254, Government Code,
  does not apply to an honorarium the member receives under this
  chapter.
         (e)  The chief executive officer, in consultation with the
  oversight committee, shall adopt a policy regarding honoraria and
  document any change in the amount of honoraria paid to a peer review
  committee member, including information explaining the basis for
  that change.
         (f)  A peer review committee member 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.
         (g)  Peer review committee members serve for terms as
  determined by the chief executive officer.
         Sec. 157.152.  PROGRAM INTEGRATION COMMITTEE. (a) The
  institute shall establish a program integration committee with the
  duties assigned under this chapter.
         (b)  The program integration committee is composed of:
               (1)  the institute's chief executive officer, who shall
  serve as the presiding officer of the program integration
  committee;
               (2)  three senior-level institute employees
  responsible for program policy and oversight, appointed by the
  chief executive officer with the approval of a majority of the
  oversight committee members; and
               (3)  the executive commissioner of the Health and Human
  Services Commission or the executive commissioner's designee.
         Sec. 157.153.  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
  Health;
               (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 at Tyler Health Science Center;
               (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 president of Rice
  University;
               (15)  one member appointed by the dean of University of
  Houston College of Medicine; and
               (16)  one member appointed by the dean of Sam Houston
  State University College of Osteopathic Medicine.
         (b)  The oversight committee by majority vote may increase
  the membership of the higher education advisory committee to
  include appointees representing institutions of higher education
  not listed in Subsection (a).
         (c)  The higher education advisory committee shall advise
  the oversight committee on issues, opportunities, the role of
  higher education, and other subjects involving mental health or
  brain research.
         Sec. 157.154.  AD HOC ADVISORY COMMITTEE. (a) The oversight
  committee, as necessary, may create additional ad hoc advisory
  committees of experts to advise the oversight committee on issues
  relating to mental health research, 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 serve for the terms determined
  by the oversight committee.
         Sec. 157.155.  EXPENSES.  Members of the higher education
  advisory committee or any ad hoc advisory committee appointed under
  this subchapter serve without compensation but are entitled to
  reimbursement for actual and necessary expenses incurred in
  attending committee meetings or performing other official duties
  authorized by the presiding officer, including travel expenses.
  SUBCHAPTER E. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH FUND
         Sec. 157.201.  MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH
  FUND. (a) In this subchapter, "fund" means the Mental Health and
  Brain Institute Research Fund established under Section 68, Article
  III, Texas Constitution. The fund is a special fund in the treasury
  outside the general revenue fund to be administered by the
  institute. The fund is to be used by the institute as authorized by
  this chapter without further legislative appropriation.
         (b)  The fund consists of:
               (1)  money transferred to the fund under Section 68,
  Article III, Texas Constitution;
               (2)  money appropriated, credited, or transferred to
  the fund by the legislature;
               (3)  patent, royalty, and license fees and other income
  received under a contract entered into as provided by Section
  157.304; and
               (4)  investment earnings and interest earned on amounts
  credited to the fund.
         (c)  The fund may only be used for:
               (1)  the award of grants authorized under this chapter,
  including grants for mental health and brain research, brain health
  studies and disease prevention, and research facilities in this
  state to conduct mental health or brain research;
               (2)  the purchase, subject to approval by the
  institute, of research facilities by or for a state agency or grant
  recipient; and
               (3)  the operation of the institute.
         Sec. 157.202.  ROLE OF TEXAS TREASURY SAFEKEEPING TRUST
  COMPANY. (a) In this section, "trust company" means the Texas
  Treasury Safekeeping Trust Company.
         (b)  The trust company shall invest the fund in accordance
  with this section.
         (c)  The trust company shall hold and invest the fund, and
  any accounts established in the fund, for the institute, taking
  into account the purposes for which money in the fund may be used.
  The fund may be invested with the state treasury pool and may be
  pooled with other state assets for purposes of investment.
         (d)  The overall objective for the investment of the fund is
  to maintain sufficient liquidity to meet the needs of the fund while
  striving to preserve the purchasing power of the fund over a full
  economic cycle.
         (e)  The trust company has any power necessary to accomplish
  the purposes of managing and investing the assets of the fund. In
  managing the assets of the fund, through procedures and subject to
  restrictions the trust company considers appropriate, the trust
  company may acquire, exchange, sell, supervise, manage, or retain
  any kind of investment that a prudent investor, exercising
  reasonable care, skill, and caution, would acquire or retain in
  light of the purposes, terms, distribution requirements, and other
  circumstances of the fund then prevailing, taking into
  consideration the investment of all the assets of the fund rather
  than a single investment.
         (f)  The expenses of managing the fund shall be paid from the
  fund.
         (g)  The trust company annually shall provide a written
  report to the institute and to the oversight committee with respect
  to the investments of the fund. 
         (h)  The trust company shall adopt a written investment
  policy that is appropriate for the fund. The trust company shall
  present the investment policy to the investment advisory board
  established under Section 404.028, Government Code. The investment
  advisory board shall submit to the trust company recommendations
  regarding the policy.
         (i)  The institute annually shall provide to the trust
  company a forecast of the cash flows into and out of the fund. The
  institute shall provide updates to the forecasts as appropriate to
  ensure that the trust company is able to achieve the objective
  specified by Subsection (d).
         (j)  The trust company shall disburse money from the fund as
  directed by the institute. The institute shall direct disbursements
  from the fund on a semiannual schedule specified by the institute
  and not more frequently than twice in any state fiscal year.
         Sec. 157.203.  AUTHORIZED USE OF GRANT MONEY; LIMITATIONS.
  (a) A grant recipient awarded money from the fund may use the money
  for research consistent with the purposes of this chapter and in
  accordance with a contract between the grant recipient and the
  institute.
         (b)  Except as otherwise provided by this section, grant
  money awarded under this chapter may be used for authorized
  expenses, including:
               (1)  honoraria;
               (2)  salaries and benefits;
               (3)  travel;
               (4)  conference fees and expenses;
               (5)  consumable supplies;
               (6)  operating expenses;
               (7)  contracted research and development;
               (8)  capital equipment;
               (9)  construction or renovation of state or private
  facilities; and
               (10)  reimbursement for participation costs incurred
  by brain cancer clinical trial participants, including
  transportation, lodging, and any costs reimbursed under the cancer
  clinical trial participation program established under Chapter 51,
  Health and Safety Code.
         (c)  A grant recipient receiving money under this chapter for
  mental health or brain disease research may not spend more than five
  percent of the money for indirect costs. For purposes of this
  subsection, "indirect costs" means the expenses of conducting
  business that are not readily identified with a particular grant,
  contract, project, function, or activity, but are necessary for the
  general operation of the organization or the performance of the
  organization's activities.
         (d)  Not more than five percent of the total amount of grant
  money awarded under this chapter in a state fiscal year may be used
  for facility purchase, construction, remodel, or renovation
  purposes, and those expenditures must benefit mental health or
  brain research.
         (e)  Not more than 10 percent of the total amount of grant
  money awarded under this chapter in a state fiscal year may be used
  for prevention projects and strategies to mitigate the incidence of
  detrimental health impacts on mental health or the brain during
  that year.
  SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
         Sec. 157.251.  CONFLICT OF INTEREST. (a)  The oversight
  committee shall adopt conflict-of-interest rules, based on
  standards applicable to members of scientific review committees of
  the National Institutes of Health, to govern members of the
  oversight committee, the program integration committee, the peer
  review committee, and institute employees.
         (b)  An oversight committee member, program integration
  committee member, peer review committee member, or institute
  employee shall recuse himself or herself, as provided by Section
  157.252(a), (b), or (c), as applicable, if the member or employee,
  or a person who is related to the member or employee within the
  second degree of affinity or consanguinity, has a professional or
  financial interest in an entity 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;
               (7)  is engaged or is actively planning to be engaged in
  collaboration with a primary member of the entity's project team;
  or
               (8)  has long-standing scientific differences or
  disagreements with a primary member of the entity's project team,
  and those differences or disagreements:
                     (A)  are known to the professional community; and
                     (B)  could be perceived as affecting objectivity.
         (d)  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 oversight committee, the program integration committee, a peer
  review committee, or the institute could result in a financial
  benefit to the person.
         (e)  Nothing in this chapter limits the authority of the
  oversight committee to adopt additional conflict-of-interest
  standards.
         Sec. 157.252.  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
  157.251 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 a peer review committee member has a conflict of
  interest described by Section 157.251 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.
         (c)  If an institute employee has a conflict of interest
  described by Section 157.251 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.
         (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 157.253.
         (e)  An oversight committee member, program integration
  committee member, peer review committee member, or institute
  employee who reports a potential conflict of interest or another
  impropriety or self-dealing of the member or employee and who fully
  complies with the recommendations of the 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. 157.253.  EXCEPTIONAL CIRCUMSTANCES REQUIRING
  PARTICIPATION.  The oversight committee shall adopt rules governing
  the waiver of the conflict-of-interest requirements of this chapter
  under exceptional circumstances for an oversight committee member,
  program integration committee member, peer review committee
  member, or institute employee.  The rules must:
               (1)  authorize the chief executive officer or an
  oversight committee member to propose granting a waiver by
  submitting to the 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. 157.254.  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 157.251 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. 157.255.  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 157.251 or other impropriety or
  self-dealing.  The determination must specify any actions to be
  taken to address the conflict of interest, impropriety, or
  self-dealing, including:
               (1)  reconsideration of the application; or
               (2)  referral of the application to another peer review
  committee for review.
         (b)  The determination made under Subsection (a) is
  considered final unless three or more oversight committee members
  request that the issue be added to the agenda of the oversight
  committee.
         (c)  The chief executive officer or, if applicable, the
  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 or, if applicable, the presiding officer of the oversight
  committee, or the oversight committee, the validity of an action
  taken on a grant application is not affected by the fact that an
  individual who failed to report a conflict of interest participated
  in the action.
  SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS
         Sec. 157.301.  AWARD REVIEW PROCESS. The institute shall
  use a peer review process to evaluate and recommend all grants the
  oversight committee awards under this chapter.
         Sec. 157.302.  GRANT AWARD RULES AND PROCEDURES. (a) The
  oversight committee shall adopt rules regarding the procedure for
  awarding grants to an applicant under this chapter. The rules must
  require:
               (1)  the peer review committee to score grant
  applications and make recommendations to the program integration
  committee and the oversight committee regarding the award of
  grants, including providing a prioritized list that:
                     (A)  ranks the grant applications in the order the
  peer review committee determines applications should be funded; and
                     (B)  includes information explaining each grant
  applicant's qualification under the peer review committee's
  standards for recommendation; and
               (2)  the program integration committee to submit to the
  oversight committee a list of grant applications the program
  integration committee by majority vote approved for recommendation
  that:
                     (A)  includes documentation on the factors the
  program integration committee considered in making the 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)  may lead to immediate or long-term
  medical and scientific breakthroughs in the areas of prevention,
  treatment, or cures for mental health or brain disease;
                           (ii)  strengthen and enhance fundamental
  science in mental health or brain research;
                           (iii)  ensure a comprehensive coordinated
  approach to mental health or brain research;
                           (iv)  are interdisciplinary or
  interinstitutional;
                           (v)  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 mental health or brain research;
                           (vi)  are matched with money provided by a
  private or nonprofit entity or institution of higher education;
                           (vii)  are collaborative between any
  combination of private and nonprofit entities, public or private
  agencies or institutions in this state, and public or private
  institutions outside this state;
                           (viii)  benefit the residents of this state,
  including a demonstrable economic development benefit to this
  state;
                           (ix)  enhance research superiority at
  institutions of higher education in this state by creating new
  research superiority, attracting existing research superiority
  from institutions outside this state and other research entities,
  or attracting from outside this state additional researchers and
  resources;
                           (x)  expedite innovation and product
  development, attract private sector entities to stimulate a
  substantial increase in high-quality jobs, and increase higher
  education applied science or technology research capabilities; and
                           (xi)  address the goals of the research
  plan.
         (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)  A program integration committee member may not discuss a
  grant applicant recommendation with an oversight committee member
  unless the program integration committee has fulfilled the
  requirements of Subsection (a)(2).
         (d)  Two-thirds of the oversight committee members present
  and voting must vote to approve each funding recommendation of the
  program integration committee. If the oversight committee does not
  approve a funding recommendation of the program integration
  committee, a statement explaining the reasons the funding
  recommendation was not followed must be included in the minutes of
  the meeting.
         (e)  The oversight committee may not award more than $300
  million in grants under this chapter in a state fiscal year.
         (f)  The oversight committee may not award a grant to an
  applicant who has made a gift or grant to the institute, an
  oversight committee member, or an institute employee on or after
  January 1, 2024. This section does not apply to gifts, fees,
  honoraria, or other items also excepted under Section 36.10, Penal
  Code.
         Sec. 157.303.  MULTIYEAR PROJECTS. (a) The oversight
  committee may approve the award of grant money for a multiyear
  project. 
         (b)  The oversight committee shall specify the total amount
  of money approved to fund the multiyear project. The total amount
  specified is considered for purposes of this chapter to have been
  awarded in the state fiscal year that the peer review committee
  approved the project. The institute shall distribute only the
  money that will be expended during that fiscal year. The institute
  shall distribute the remaining grant money as the money is needed in
  each subsequent state fiscal year.
         Sec. 157.304.  CONTRACT TERMS. (a) Before disbursing any
  grant money awarded under this chapter, the institute shall execute
  a written contract with the grant recipient. The contract shall:
               (1)  specify that except for awards to state agencies
  or public institutions of higher education, if all or any 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)  specify that if the grant recipient has not used
  awarded grant money for the purposes for which the grant was
  intended, the recipient shall repay that grant amount and any
  related interest applicable under the contract to this state at the
  agreed rate and on the agreed terms;
               (3)  specify that if the grant recipient fails to meet
  the terms and conditions of the contract, the institute may
  terminate the contract using the written process prescribed in the
  contract and require the recipient to repay the awarded grant money
  and any related interest applicable under the contract to this
  state at the agreed rate and on the agreed terms;
               (4)  include terms relating to intellectual property
  rights consistent with the standards developed by the oversight
  committee under Section 157.305;
               (5)  require that, in accordance with Subsection (b),
  the grant recipient dedicate an amount of matching money equal to
  one-half of the amount of the research grant awarded and specify the
  amount of matching money to be dedicated;
               (6)  specify the period in which the grant award must be
  spent; and
               (7)  include the specific deliverables of the project
  that is the subject of the grant proposal.
         (b)  Before the institute may disburse grant money, the grant
  recipient must certify that the recipient has an amount of money
  equal to one-half of the grant money that is available and not yet
  expended, and dedicate that money to the research that is the
  subject of the grant proposal. The institute shall adopt rules
  specifying a grant recipient's obligations under this subchapter.
  At a minimum, the rules must:
               (1)  allow a grant recipient that is an institution of
  higher education or a private or independent institution of higher
  education, as those terms are defined by Section 61.003, or a
  research institute or center affiliated with the institution, to
  credit toward the recipient's matching money the dollar amount
  equivalent to the difference between the indirect cost rate
  authorized by the federal government for research grants awarded to
  the recipient and the indirect cost rate authorized by Section
  157.203(c);
               (2)  specify that:
                     (A)  a grant recipient receiving more than one
  grant award may provide matching money certification at an
  institutional level;
                     (B)  the recipient of a multiyear grant award may
  yearly certify matching money; and
                     (C)  grant money may not be disbursed to the grant
  recipient until the annual certification of the matching money has
  been approved;
               (3)  specify that money for certification purposes may
  include:
                     (A)  federal funds;
                     (B)  the fair market value of drug development
  support provided to the recipient by the National Institutes of
  Health or other similar programs;
                     (C)  funds of this state;
                     (D)  funds of other states; and
                     (E)  nongovernmental funds, including private
  funds, foundation grants, gifts, and donations;
               (4)  specify that the following items may not be used
  for certification purposes:
                     (A)  in-kind costs;
                     (B)  volunteer services provided to a grant
  recipient;
                     (C)  noncash contributions;
                     (D)  preexisting real estate of the grant
  recipient, including buildings, facilities, and land;
                     (E)  deferred giving, including a charitable
  remainder annuity trust, charitable remainder unitrust, or pooled
  income fund; or
                     (F)  any other items determined by the institute;
               (5)  require that the grant recipient's certification
  be included in the grant award contract;
               (6)  specify that a grant recipient's failure to
  provide certification serves as grounds for terminating the grant
  award contract;
               (7)  require a grant recipient to maintain adequate
  documentation supporting the source and use of the money required
  by this subsection and to provide documentation to the institute on
  request; and
               (8)  require that the institute establish a procedure
  to conduct an annual review of the documentation supporting the
  source and use of money reported in the required certification.
         (c)  The institute shall establish a policy on advance
  payments to grant recipients.
         (d)  The oversight committee shall adopt rules to administer
  this section.
         Sec. 157.305.  PATENT ROYALTIES AND LICENSE REVENUES PAID TO
  STATE. (a) The oversight committee shall establish standards
  requiring all grant awards to be subject to an intellectual
  property agreement that allows this state to collect royalties,
  income, and other benefits, including interest or proceeds
  resulting from securities and equity ownership, realized as a
  result of projects undertaken with money awarded under this
  chapter.
         (b)  In determining this state's interest in any
  intellectual property rights, the oversight committee shall
  balance the opportunity of this state to benefit from the patents,
  royalties, licenses, and other benefits that result from basic
  research, therapy development, and clinical trials with the need to
  ensure that essential medical research is not unreasonably hindered
  by the intellectual property agreement and that the agreement does
  not unreasonably remove the incentive on the part of the individual
  researcher, research team, or institution.
         (c)  The oversight committee may authorize the institute to
  enter into a contract with one or more qualified third parties for
  assistance with the management, accounting, and disposition of this
  state's interest in securities, equities, royalties, income, and
  other benefits realized as a result of projects undertaken with
  money awarded under this chapter.  The institute shall implement
  practices and procedures with regard to managing, accounting, and
  disposition of securities, equities, royalties, income, and other
  benefits as it may determine to be in the best interest of the
  state.
         Sec. 157.306.  PREFERENCE FOR TEXAS SUPPLIERS. In a good
  faith effort to achieve a goal of more than 50 percent of purchases
  from suppliers in this state, the oversight committee shall
  establish standards to ensure that grant recipients purchase goods
  and services from suppliers in this state to the extent reasonably
  possible.
         Sec. 157.307.  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. 157.308.  GRANT COMPLIANCE AND PROGRESS EVALUATION.
  (a) The institute shall require as a condition of a grant awarded
  under this chapter that the grant recipient submit to regular
  inspection reviews of the grant project by institute staff to
  ensure compliance with the terms of the grant contract and ongoing
  progress, including the scientific merit of the research.
         (b)  The chief executive officer shall report at least
  annually to the oversight committee on the progress and continued
  merit of the projects awarded grants by the institute.
         Sec. 157.309.  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. 157.310.  PUBLIC INFORMATION; CONFIDENTIAL
  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 of money requested in the applicant's
  grant proposal;
               (3)  the type of mental health or 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 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 related to fraud,
  waste, or abuse of state resources 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 on request and in
  compliance with applicable laws and procedures to the following:
               (1)  a law enforcement agency or prosecutor;
               (2)  a governmental agency responsible for
  investigating the matter 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.
         (g)  The institute shall post on the institute's Internet
  website records that pertain specifically to any gift, grant, or
  other consideration provided to the institute, an institute
  employee, or 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 donor's donation.  This section is not applicable to gifts,
  fees, honoraria, or other items also excepted under Section 36.10,
  Penal Code.
         Sec. 157.311.  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 Mental Health and
  Brain Research Institute of Texas.
         SECTION 3.  Section 61.003(6), Education Code, is amended to
  read as follows:
               (6)  "Other agency of higher education" means The
  University of Texas System, System Administration; The University
  of Texas at El Paso Museum; Texas Epidemic Public Health Institute
  at The University of Texas Health Science Center at Houston; The
  Texas A&M University System, Administrative and General Offices;
  Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;
  Rodent and Predatory Animal Control Service (a part of the Texas A&M
  AgriLife Extension Service); Texas A&M Engineering Experiment
  Station (including the Texas A&M Transportation Institute); Texas
  A&M Engineering Extension Service; Texas A&M Forest Service; Texas
  Division of Emergency Management; Texas Tech University Museum;
  Texas State University System, System Administration; Sam Houston
  Memorial Museum; Panhandle-Plains Historical Museum; Cotton
  Research Committee of Texas; Texas Water Resources Institute; Texas
  A&M Veterinary Medical Diagnostic Laboratory; Mental Health and
  Brain Research Institute of Texas; and any other unit, division,
  institution, or agency which shall be so designated by statute or
  which may be established to operate as a component part of any
  public senior college or university, or which may be so classified
  as provided in this chapter.
         SECTION 4.  (a)  Not later than December 1, 2024, the
  appropriate appointing authority shall appoint the members to the
  Mental Health and Brain Research Institute of Texas Oversight
  Committee as required by Section 157.101, Education Code, as added
  by this Act. The oversight committee may not act until a majority
  of the appointed members have taken office.
         (b)  Notwithstanding Section 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 Mental Health and Brain Research Institute of Texas
  Oversight Committee appointed by that person to serve a term
  expiring January 31, 2025, one member appointed by that person to
  serve a term expiring January 31, 2027, and one member appointed by
  that person to serve a term expiring January 31, 2029.
         (c)  The governor shall designate one member to serve as
  interim presiding officer for the purpose of calling and presiding
  over meetings of the Mental Health and Brain Research Institute of
  Texas Oversight Committee until an election is held under Section
  157.104, Education Code, as added by this Act.
         SECTION 5.  If the constitutional amendment proposed by the
  88th Legislature, Regular Session, 2023, requiring the creation of
  the Mental Health and Brain Research Institute of Texas and the
  transfer of $3 billion from general state revenue to fund mental
  health and brain research in this state is approved by the voters,
  the Mental Health and Brain Research Institute of Texas established
  by Chapter 157, Education Code, as added by this Act, is eligible to
  receive funding 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, 2024, but only
  if the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, requiring the creation of the Mental Health
  and Brain Research Institute of Texas, establishing the Mental
  Health and Brain Institute Research Fund to provide funding for
  mental health and brain research in this state, and transferring
  general revenue to that fund is approved by the voters. If that
  amendment is not approved by the voters, this Act has no effect.