87R9386 SRA-D     By: Thompson of Harris H.B. No. 15       A BILL TO BE ENTITLED   AN ACT   relating to the creation of the Brain Institute of Texas; granting   authority to issue bonds.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subtitle E, Title 2, Health and Safety Code, is   amended by adding Chapter 106 to read as follows:   CHAPTER 106. BRAIN INSTITUTE OF TEXAS   SUBCHAPTER A. GENERAL PROVISIONS          Sec. 106.0001.  DEFINITIONS. In this chapter:                (1)  "Higher education advisory committee" means the   Brain Institute of Texas Higher Education Advisory Committee.                (2)  "Institute" means the Brain Institute of Texas.                (3)  "Oversight committee" means the Brain Institute of   Texas Oversight Committee.                (4)  "Research committee" means the Brain Institute of   Texas Research Committee.                (5)  "Research plan" means the Texas Brain Research   Plan developed by the institute.          Sec. 106.0002.  PURPOSES. The Brain Institute of Texas is   established to:                (1)  create and expedite innovation in brain research   to improve the health of residents of this state, enhance the   potential for a medical or scientific breakthrough in brain-related   sciences and biomedical research, and enhance the brain research   superiority of this state;                (2)  attract, create, or expand research capabilities   of eligible institutions of higher education by awarding grants to   the institutions to promote a substantial increase in brain   research, strategies for prevention of brain-related diseases, and   the creation of jobs in this state; and                (3)  develop and implement a research plan to foster   synergistic collaboration and investigation into brain research by   eligible institutions of higher education and their partners.          Sec. 106.0003.  SUNSET PROVISION. The Brain Institute of   Texas is subject to Chapter 325, Government Code (Texas Sunset   Act). Unless continued in existence as provided by that chapter,   the institute is abolished and this chapter expires September 1,   2031.   SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE          Sec. 106.0051.  POWERS AND DUTIES. (a) The institute:                (1)  may make grants to eligible institutions of higher   education to further the purposes of this chapter, including:                      (A)  implementing the research plan;                      (B)  researching:                            (i)  the causes of and prevention,   treatment, rehabilitation, and cures for brain-related diseases,   syndromes, disorders, dysfunction, injuries, developmental issues,   mental and behavioral health issues, and substance abuse disorders   and other addictions; and                            (ii)  any other area impacting the brain,   including an area that directly or indirectly impacts or is   impacted by the brain or brain health, such as the gut microbiome,   nutrition, and the spinal cord or nervous system, that the research   committee and the oversight committee approve;                      (C)  providing money for facilities, equipment,   supplies, salaries, benefits, and other costs related to brain   research;                      (D)  creating a statewide research and clinical   data registry for brain research; and                      (E)  establishing prevention programs and   strategies to mitigate the incidence of detrimental health impacts   on the brain;                (2)  may support eligible institutions of higher   education by awarding grants to those institutions and their   collaborative partners for discovering the causes of and developing   cures for all types of brain and neurological health issues;                (3)  shall collaborate with relevant state agencies,   coordinating councils, and consortiums to enhance brain-related   health care and research;                (4)  may establish appropriate standards and oversight   bodies to ensure money authorized under this chapter is properly   used for the purposes of this chapter;                (5)  may employ necessary staff to provide   administrative support to the institute;                (6)  shall monitor grant contracts and agreements   authorized under this chapter to ensure each grant recipient   complies with the terms and conditions of the contract or   agreement; and                (7)  shall establish procedures to document that the   institute, its employees, and any committee members appointed under   this chapter comply with all rules governing conflicts of interest   and the peer review process developed under Section 106.0252.          (b)  The institute shall implement and monitor the research   plan and revise the plan as necessary.          Sec. 106.0052.  CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE   OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall   hire a chief executive officer. The chief executive officer shall   perform the duties required under this chapter or designated by the   oversight committee. The chief executive officer must have a   demonstrated ability to lead and develop academic, commercial, and   governmental partnerships and coalitions.          (b)  The institute shall employ a chief compliance officer to   monitor compliance with this chapter and rules adopted under this   chapter and report incidents of noncompliance to the oversight   committee. The chief compliance officer shall:                (1)  ensure that all grant proposals comply with this   chapter and rules adopted under this chapter before the proposals   are submitted to the oversight committee for consideration and   approval; and                (2)  attend and observe research committee meetings to   ensure compliance with this chapter and rules adopted under this   chapter.          (c)  The chief executive officer may hire any other officer   position the chief executive officer determines necessary for   efficient operation of the institute.          Sec. 106.0053.  ANNUAL REPORT; INTERNET POSTING. Not later   than January 31 of each year, the institute shall prepare and submit   to the governor, the lieutenant governor, the speaker of the house   of representatives, and each standing committee of the legislature   having primary jurisdiction over institute matters and post on the   institute's Internet website a written report that outlines:                (1)  the institute's activities under this chapter;                (2)  a list of grant recipients during the preceding   state fiscal year, including the grant amount awarded to each   recipient;                (3)  any research accomplishments made during the   preceding state fiscal year by a grant recipient or the recipient's   partners;                (4)  an overview summary of the institute's financial   records and strategies; and                (5)  the institute's future direction.          Sec. 106.0054.  INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY   COMPTROLLER. (a) The institute shall annually commission an   independent financial audit of its activities from a certified   public accounting firm. The institute shall provide the audit to   the comptroller.          (b)  The comptroller shall:                (1)  review and evaluate the audit and annually issue a   public report of that review; and                (2)  make recommendations concerning the institute's   financial practices and performance.          Sec. 106.0055.  GRANT RECORDS. (a)  The institute shall   maintain complete records of:                (1)  the review of each grant application submitted to   the institute, including the score assigned to each grant   application reviewed, regardless of whether the grant application   is not funded by the institute or is withdrawn after submission to   the institute;                (2)  each grant recipient's financial reports;                (3)  each grant recipient's progress reports; and                (4)  the institute's review of the grant recipient's   financial and progress reports.          (b)  The institute shall keep the records described by   Subsection (a) for at least 15 years.          Sec. 106.0056.  GIFTS AND GRANTS. The institute may solicit   and accept gifts and grants from any source for the purposes of this   chapter.   SUBCHAPTER C. OVERSIGHT COMMITTEE          Sec. 106.0101.  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.          Sec. 106.0102.  TERMS; VACANCY. (a) Oversight committee   members serve at the pleasure of the appointing authority for   staggered six-year terms, with the terms of three members expiring   January 31 of each even-numbered year.          (b)  If a vacancy occurs on the oversight committee, the   appropriate appointing authority shall appoint a successor in the   same manner as the original appointment to serve for the remainder   of the unexpired term. The appropriate appointing authority shall   appoint the successor not later than the 30th day after the date the   vacancy occurs.          Sec. 106.0103.  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   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 institute employees.          Sec. 106.0104.  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. 106.0105.  CONFLICT OF INTEREST. 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 research   committee, and institute employees.          Sec. 106.0106.  RULEMAKING AUTHORITY. The oversight   committee may adopt rules to administer this chapter.          Sec. 106.0107.  POWERS AND DUTIES. The oversight committee   shall:                (1)  hire a chief executive officer;                (2)  annually set priorities as prescribed by the   legislature for each grant project that receives money under this   chapter; and                (3)  consider the priorities set under Subdivision (2)   in awarding grants under this chapter.          Sec. 106.0108.  CODE OF CONDUCT. The oversight committee   shall adopt a code of conduct applicable to each member of the   oversight committee, member of the research committee, and   institute employee.          Sec. 106.0109.  FINANCIAL STATEMENT REQUIRED. Each member   of the oversight committee shall file with the chief compliance   officer a verified financial statement complying with Sections   572.022 through 572.0252, Government Code, as required of a state   officer by Section 572.021, Government Code.   SUBCHAPTER D. OTHER INSTITUTE COMMITTEES          Sec. 106.0151.  RESEARCH COMMITTEE. (a) The oversight   committee shall establish the research committee. The chief   executive officer, with approval by a simple majority of the   members of the oversight committee, shall appoint as members of the   research committee experts in fields related to the brain,   including research, health care, disease treatment and prevention,   and other study areas.          (b)  The oversight committee shall adopt a written policy on   in-state or out-of-state residency requirements for research   committee members.          (c)  A research committee member may receive an honorarium.   Subchapter B, Chapter 2254, Government Code, does not apply to an   honorarium the member receives under this chapter.          Sec. 106.0152.  HIGHER EDUCATION ADVISORY COMMITTEE. (a)   The higher education advisory committee is composed of the   following members:                (1)  one member appointed by the president of Baylor   College of Medicine;                (2)  one member appointed by the president of Texas A&M   University Health Science Center;                (3)  one member appointed by the president of Texas   Tech University Health Sciences Center;                (4)  one member appointed by the president of Texas   Tech University Health Sciences Center at El Paso;                (5)  one member appointed by the president of The   University of Texas Southwestern Medical Center;                (6)  one member appointed by the president of The   University of Texas Medical Branch at Galveston;                (7)  one member appointed by the president of The   University of Texas Health Science Center at Houston;                (8)  one member appointed by the president of The   University of Texas Health Science Center at San Antonio;                (9)  one member appointed by the president of The   University of Texas Health Science Center at Tyler;                (10)  one member appointed by the dean of Dell Medical   School at The University of Texas at Austin;                (11)  one member appointed by the president of The   University of Texas M. D. Anderson Cancer Center;                (12)  one member appointed by the dean of The   University of Texas Rio Grande Valley School of Medicine;                (13)  one member appointed by the president of   University of North Texas Health Science Center at Fort Worth;                (14)  one member appointed by the dean of University of   Houston College of Medicine; and                (15)  one member appointed by the dean of Sam Houston   State University College of Osteopathic Medicine.          (b)  The higher education advisory committee shall advise   the oversight committee and the research committee on issues,   opportunities, the role of higher education, and other subjects   involving brain research.          Sec. 106.0153.  AD HOC ADVISORY COMMITTEE. The chief   executive officer with majority approval of the oversight   committee, as necessary, may create additional ad hoc advisory   committees of experts to advise the oversight committee and the   research committee on issues relating to brain research.   SUBCHAPTER E. FUNDING          Sec. 106.0201.  BRAIN INSTITUTE OF TEXAS RESEARCH FUND. (a)   The Brain Institute of Texas research fund is a dedicated account in   the general revenue fund.          (b)  The Brain Institute of Texas research fund consists of:                (1)  proceeds of general obligation bonds issued for   purposes of the fund;                (2)  appropriations of money to the fund by the   legislature;                (3)  gifts and grants, including grants from the   federal government, received for the fund; and                (4)  interest, dividends, and other income of the fund.          (c)  The fund may only be used for:                (1)  awarding grants authorized under this chapter,   including grants for brain research and for research facilities in   this state to conduct brain research;                (2)  the purchase, subject to approval by the oversight   committee, of research facilities by or for a grant recipient; and                (3)  the operation of the institute.          Sec. 106.0202.  ISSUANCE OF GENERAL OBLIGATION BONDS.  (a)     The institute may request the Texas Public Finance Authority to   issue and sell general obligation bonds of the state as authorized   by Section 68, Article III, Texas Constitution.          (b)  The Texas Public Finance Authority may not issue and   sell general obligation bonds authorized by this section before   January 1, 2022, and may not issue and sell more than $500 million   in general obligation bonds authorized by this section in a state   fiscal year.          (c)  The institute shall determine, and include in its   request for issuing bonds, the amount, exclusive of costs of   issuance, of the bonds to be issued and the preferred time for   issuing the bonds.          (d)  The Texas Public Finance Authority shall issue the bonds   in accordance with and subject to Chapter 1232, Government Code,   and Texas Public Finance Authority rules. The bonds may be issued in   installments.          (e)  Proceeds of the bonds issued under this section shall be   deposited to the credit of the Brain Institute of Texas research   fund and used only for the purposes authorized under Section   106.0201.          Sec. 106.0203.  AUTHORIZED USE OF GRANT MONEY. (a) A grant   recipient awarded money from the Brain Institute of Texas research   fund established under Section 106.0201 may use the money for   research consistent with the purposes of this chapter and in   accordance with a contract between the grant recipient and the   institute.          (b)  Money awarded under this chapter may be used for   authorized expenses, including honoraria, salaries and benefits,   travel, conference fees and expenses, consumable supplies, other   operating expenses, contracted research and development, capital   equipment, and construction or renovation of state or private   facilities.   SUBCHAPTER F. PROCEDURE FOR AWARDING GRANTS          Sec. 106.0251.  ELIGIBLE INSTITUTIONS OF HIGHER EDUCATION.   (a) The following institutions of higher education are eligible   for a grant award under this chapter:                (1)  Baylor College of Medicine;                (2)  Texas A&M University Health Science Center;                (3)  Texas Tech University Health Sciences Center;                (4)  Texas Tech University Health Sciences Center at El   Paso;                (5)  University of North Texas Health Science Center at   Fort Worth;                (6)  Dell Medical School at The University of Texas at   Austin;                (7)  The University of Texas Medical Branch at   Galveston;                (8)  The University of Texas Health Science Center at   Houston;                (9)  The University of Texas Health Science Center at   San Antonio;                (10)  The University of Texas Rio Grande Valley School   of Medicine;                (11)  The University of Texas Health Science Center at   Tyler;                (12)  The University of Texas Southwestern Medical   Center;                (13)  The University of Texas M. D. Anderson Cancer   Center;                (14)  University of Houston College of Medicine; and                (15)  Sam Houston State University College of   Osteopathic Medicine.          (b)  Any time before or during the application process or   after a grant is awarded under this chapter, the grant recipient may   use the money received from a grant awarded under this chapter for   purposes of this chapter and in a collaborative partnership with:                (1)  another eligible institution;                (2)  a general academic institution of higher   education;                (3)  a historically black college or university;                (4)  a nonprofit or for-profit organization;                (5)  a health care organization;                (6)  a branch of the United States armed forces;                (7)  a private company;                (8)  a federal, state, or local government; or                (9)  another relevant person or organization.          Sec. 106.0252.  PEER REVIEW PROCESS. The research committee   shall develop and oversee a peer review process for the selection of   brain research projects. The peer review process must evaluate   research projects based on the extent to which the project:                (1)  aligns with the research plan;                (2)  aligns with state priorities and needs, including   priorities and needs outlined in other state agency strategic   plans, or addresses federal or other major research sponsors'   priorities in scientific or technological fields in the area of   brain research;                (3)  enhances the research superiority at eligible   institutions of higher education by creating new research   superiority, attracting existing research superiority, or   enhancing existing research superiority;                (4)  benefits the residents of this state, including a   demonstrable economic or job creation benefit to this state; and                (5)  if applicable, is interdisciplinary or   interinstitutional, or has collaborators or partnerships.          Sec. 106.0253.  GRANT AWARD RULES AND PROCEDURES. The   oversight committee shall adopt rules and establish procedures for   awarding grants under this chapter. The rules must require the   research committee to score grant applications and make   recommendations to the oversight committee regarding the award of   grants, including the creation of a prioritized list that:                (1)  ranks the grant applications in the order the   research committee determines applications should be funded; and                (2)  includes information explaining the reasons each   grant application on the list meets the research committee's   standards for recommendation.          Sec. 106.0254.  GRANT EVALUATION. (a) The oversight   committee 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 and to ensure the scientific   merit of the research.          (b)  The chief executive officer, with approval of the   oversight committee, shall determine the grant review process under   this section.          (c)  The chief executive officer shall report at least   annually to the oversight committee on the progress and continued   merit of each research project awarded a grant by the institute.          (d)  The institute shall establish and implement reporting   requirements to ensure that each grant recipient complies with the   terms and conditions in the grant contract.          (e)  The institute shall implement a system to:                (1)  track the dates grant recipient reports are due   and are received by the institute; and                (2)  monitor the status of any required report not   timely submitted to the institute by a grant recipient.          (f)  The chief compliance officer shall monitor compliance   with this section and shall inquire into and monitor the status of   any required report not timely submitted to the institute by a grant   recipient. The chief compliance officer shall notify the general   counsel for the institute and the oversight committee of a grant   recipient that has not complied with the reporting requirements or   provisions of the grant contract to allow the institute to begin   suspension or termination of the grant contract. This subsection   does not limit other remedies available under the grant contract.          Sec. 106.0255.  MULTIYEAR PROJECTS. The oversight committee   may award grant money for a multiyear project.          Sec. 106.0256.  GRANT AWARD RECOMMENDATIONS. Two-thirds of   the members of the oversight committee present and voting must vote   to approve a grant application recommended by the research   committee to award a grant under this chapter. If the oversight   committee does not approve a recommendation of the research   committee, the oversight committee must ensure that the minutes of   the meeting include a statement explaining the reasons the   recommendation was not approved.          Sec. 106.0257.  MEDICAL AND RESEARCH ETHICS. Any research   project that is awarded a grant under this chapter must comply with   all applicable federal and state laws regarding the conduct of   research.          Sec. 106.0258.  PUBLIC INFORMATION. (a) The following   information is public information and may be disclosed under   Chapter 552, Government Code:                (1)  the applicant's name and address;                (2)  the amount requested in the applicant's grant   proposal;                (3)  the type of brain research to be addressed under   the proposal; and                (4)  any other information the institute designates   with the consent of the grant applicant.          (b)  To protect the actual or potential value of information   submitted to the institute by an applicant for or recipient of an   institute grant, the following information submitted by the   applicant or recipient is confidential and is not subject to   disclosure under Chapter 552, Government Code, or any other law:                (1)  all information, other than the information   required under Subsection (a) that is contained in a grant award   contract between the institute and a grant recipient, relating to a   product, device, or process, the application or use of the product,   device, or process, and all technological and scientific   information, including computer programs, developed wholly or   partly by a grant applicant or recipient, regardless of whether   patentable or capable of being registered under copyright or   trademark laws, that has a potential for being sold, traded, or   licensed for a fee; and                (2)  the plans, specifications, blueprints, and   designs, including related proprietary information, of a   scientific research and development facility.          (c)  The institute shall post on the institute's Internet   website records that pertain specifically to any gift, grant, or   other consideration provided to the institute, an institute   employee, or a member of an institute committee. The posted   information must include each donor's name and the amount and date   of the donor's donation.          Sec. 106.0259.  COMPLIANCE PROGRAM; CONFIDENTIAL   INFORMATION. (a) In this section, "compliance program" means a   process to assess and ensure compliance by the institute's   committee members and employees with applicable laws, rules, and   policies, including matters of:                (1)  ethics and standards of conduct;                (2)  financial reporting;                (3)  internal accounting controls; and                (4)  auditing.          (b)  The institute shall establish a compliance program that   operates under the direction of the institute's chief compliance   officer.          (c)  The following information is confidential and not   subject to disclosure under Chapter 552, Government Code:                (1)  information that directly or indirectly reveals   the identity of an individual who made a report to the institute's   compliance program office, sought guidance from the office, or   participated in an investigation conducted under the compliance   program;                (2)  information that directly or indirectly reveals   the identity of an individual who is alleged to have or may have   planned, initiated, or participated in activities that are the   subject of a report made to the office if, after completing an   investigation, the office determines the report to be   unsubstantiated or without merit; and                (3)  other information that is collected or produced in   a compliance program investigation if releasing the information   would interfere with an ongoing compliance investigation.          (d)  Subsection (c) does not apply to information related to   an individual who consents to disclosure of the information.          (e)  Information made confidential or excepted from public   disclosure by this section may be made available to the following on   request in compliance with applicable laws and procedures:                (1)  a law enforcement agency or prosecutor;                (2)  a governmental agency responsible for   investigating a matter that is the subject of a compliance report,   including the Texas Workforce Commission civil rights division or   the federal Equal Employment Opportunity Commission; or                (3)  a committee member or institute employee who is   responsible under institutional policy for a compliance program   investigation or for a review of a compliance program   investigation.          (f)  A disclosure under Subsection (e) is not a voluntary   disclosure for purposes of Section 552.007, Government Code.          Sec. 106.0260.  CLOSED MEETING.  The oversight committee may   conduct a closed meeting under Chapter 551, Government Code, to   discuss an ongoing compliance investigation into issues related to   fraud, waste, or abuse of state resources.          Sec. 106.0261.  APPROPRIATION CONTINGENCY. The institute is   required to implement a provision of this chapter only if the   legislature appropriates money specifically for that purpose. If   the legislature does not appropriate money specifically for that   purpose, the institute may, but is not required to, implement the   provision using other money available to the institute for that   purpose.          SECTION 2.  Section 51.955(c), Education Code, is amended to   read as follows:          (c)  Subsection (b)(1) does not apply to a research contract   between an institution of higher education and the Cancer   Prevention and Research Institute of Texas or Brain Institute of   Texas.          SECTION 3.  (a) Not later than December 1, 2022, the   appropriate appointing authority shall appoint the members to the   Brain Institute of Texas Oversight Committee as required by Section   106.0101, 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 106.0101, Health and Safety   Code, as added by this Act, in making the initial appointments under   that section, the governor, lieutenant governor, and speaker of the   house of representatives shall, as applicable, designate one member   of the Brain Institute of Texas appointed by that person to serve a   term expiring January 31, 2024, one member appointed by that person   to serve a term expiring January 31, 2026, and one member appointed   by that person to serve a term expiring January 31, 2028.          SECTION 4.  If the constitutional amendment proposed by the   87th Legislature, Regular Session, 2021, authorizing the issuance   of general obligation bonds and the dedication of bond proceeds to   the Brain Institute of Texas research fund established to fund   brain research is approved by the voters, the Brain Institute of   Texas established by Chapter 106, Health and Safety Code, as added   by this Act, is eligible to receive funding through the proceeds   deposited under the authority of Section 68, Article III, Texas   Constitution, for any activities conducted by the institute that   serve the purposes of that constitutional provision.          SECTION 5.  This Act takes effect January 1, 2022, but only   if the constitutional amendment proposed by the 87th Legislature,   Regular Session, 2021, authorizing the issuance of general   obligation bonds and the dedication of bond proceeds to the Brain   Institute of Texas research fund established to fund brain research   in this state is approved by the voters. If that amendment is not   approved by the voters, this Act has no effect.