HB 1302

relating to the creation of the Alzheimer's Prevention and Research
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 101A to read as follows:
CHAPTER 101A.  ALZHEIMER'S PREVENTION AND RESEARCH INSTITUTE OF
SUBCHAPTER A.  GENERAL PROVISIONS
Sec. 101A.001.  DEFINITIONS.  In this chapter:
(1)  "Institute" means the Alzheimer's Prevention and
(2)  "Oversight committee" means the Alzheimer's
Prevention and Research Institute of Texas Oversight Committee.
(3)  "Peer review committee" means the Alzheimer's
Prevention and Research Institute of Texas Peer Review Committee.
(4)  “Program integration committee” means the
Alzheimer's Prevention and Research Institute of Texas Program
(5)  "Research plan" means the Texas Alzheimer's
Prevention and Research Plan developed by the institute.
Sec. 101A.002.  PURPOSES.  The Alzheimer's Prevention and
Research Institute of Texas is established to:
(1)  create and expedite innovation in research on
Alzheimer's disease and related disorders to improve the health of
residents of this state, enhance the potential for a medical or
scientific breakthrough in research on Alzheimer's disease and
related disorders, and enhance the research superiority of this
state regarding Alzheimer's disease and related disorders;
(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 research on Alzheimer's disease and related disorders,
strategies for prevention of Alzheimer's disease and related
disorders, and the creation of exceptional jobs in this state; and
(3)  develop and implement a research plan to foster
synergistic collaboration between eligible institutions of higher
education and their partners and other grant recipients in research
on Alzheimer's disease and related disorders.
Sec. 101A.003.  SUNSET PROVISION.  The Alzheimer's
Prevention and Research 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, 2035.
Sec. 101A.004.  STATE AUDITOR.  Nothing in this chapter
limits the authority of the state auditor under Chapter 321,
SUBCHAPTER B.  POWERS AND DUTIES OF INSTITUTE
Sec. 101A.051.  POWERS AND DUTIES.  (a)  The institute:
(1)  may award grants to institutions of learning,
advanced medical research facilities, public or private persons,
and collaboratives in this state to further the purposes of this
chapter and Section 68, Article III, Texas Constitution, including:
(A)  implementation of the research plan;
(B)  research, including translational and
clinical research, into the causes of, means of prevention of, and
treatment and rehabilitation for Alzheimer's disease and related
(C)  research, including translational research,
to develop therapies, protocols, medical pharmaceuticals, or
procedures for the substantial mitigation of the symptoms of
Alzheimer's disease and related disorders;
(D)  facilities, equipment, supplies, salaries,
benefits, and other costs related to research on Alzheimer's
disease and related disorders; and
(E)  prevention programs and strategies to
mitigate the detrimental health impacts of Alzheimer's disease and
(2)  shall collaborate with relevant state agencies,
coordinating councils, and consortiums to enhance health care and
research for Alzheimer's disease and related disorders;
(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 to the
institute administrative support;
(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
(6)  shall monitor grant contracts authorized by this
chapter and ensure each grant recipient complies with the terms and
(7)  shall ensure 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 compliance
by the institute, institute employees, and institute committee
members with all laws and rules governing the peer review process
(9)  shall create a statewide research and clinical
data registry for research related to Alzheimer's disease and
(b)  The institute shall implement, monitor, and, as
necessary, revise the research plan.
(c)  The institute may collaborate as necessary with The
University of Texas Southwestern Medical Center in carrying out the
institute's duties under this chapter.
Sec. 101A.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 and the duties
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 to the oversight committee incidents of
(c)  The chief executive officer may hire any other officer
position the chief executive officer determines necessary for the
institute's efficient operation.
Sec. 101A.053.  ANNUAL PUBLIC REPORT; INTERNET POSTING.  Not
later than January 31 of each year, the institute shall prepare and
submit to the governor, lieutenant governor, speaker of the house
of representatives, and standing committee of each house of the
legislature with primary jurisdiction over institute matters and
post on the institute's Internet website a report on:
(1)  the institute's activities under this chapter;
(2)  a list of recipients of grants awarded during the
preceding state fiscal year and the grant amount awarded to each
(3)  any research accomplishments a grant recipient or
the recipient's partners achieved during the preceding state fiscal
(4)  an overview summary of the institute's most recent
(5)  an assessment of the relationship between the
institute's grants and research program strategy;
(6)  a statement of the institute's strategic research
(7)  an estimate of the financial cost to this state of
Alzheimer's disease and related disorders during the most recent
state fiscal year for which data is available, including the
amounts this state spent related to Alzheimer's disease and related
disorders under Medicaid, 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 conflict of interest requiring
recusal under this chapter or rules adopted under this chapter;
(B)  any unreported conflict of interest
confirmed by an investigation conducted under Section 101A.254,
including any institute actions regarding an unreported conflict of
interest and subsequent investigation; and
(C)  any waivers granted through the process
established under Section 101A.253; and
(10)  the institute's future direction.
Sec. 101A.054.  INDEPENDENT FINANCIAL AUDIT.  (a)  The
institute shall annually commission a certified public accounting
firm to perform an independent financial audit of its activities.
(b)  The oversight committee shall review the annual
Sec. 101A.055.  GRANT RECORDS; AUDIT OF ELECTRONIC GRANT
MANAGEMENT SYSTEM.  (a)  The institute shall maintain complete
(1)  each grant application submitted to the institute,
including each application funded by the institute or withdrawn
after submission and the score the peer review committee assigns to
each reviewed application in accordance with rules adopted under
(2)  each grant recipient's financial reports,
including the amount of matching money dedicated to the research
(3)  each grant recipient's progress reports;
(4)  the identity of each principal investor and owner
of each grant recipient as provided by institute rules to determine
(5)  the institute's review of the grant recipient's
financial reports and progress reports.
(b)  The institute shall keep each record described by
Subsection (a) until at least the 15th anniversary of the record's
(c)  The institute shall have prepared periodic audits of any
electronic grant management system used to maintain records of
grant applications and grant awards.  The institute shall timely
address each weakness identified in an audit of the system.
Sec. 101A.056.  GIFTS AND GRANTS.  (a)  The institute may
solicit and accept gifts and grants from any source for the purposes
(b)  The institute may not supplement the salary of any
institute employee or officer with a gift or grant the institute
Sec. 101A.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. 101A.058.  COMPLIANCE PROGRAM; INVESTIGATIONS.  (a)
The institute shall establish a compliance program operating under
the direction of the institute's chief compliance officer to
monitor compliance with this chapter and rules adopted under this
chapter and for use in reporting incidents of noncompliance to the
(b)  The chief compliance officer or the officer's 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 each grant application
recommendation included on the list the program integration
committee submits under Section 101A.302(a)(2) complies with the
oversight committee's rules regarding grant award procedures.  The
report must contain all relevant information on:
(1)  the peer review process for the grant application;
(2)  the score the peer review committee assigns to the
(3)  adherence to the conflict-of-interest
notification and recusal process; and
(4)  confirmation that a recommended grant applicant
did not make any gift or grant prohibited by Section 101A.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 a grant
recipient does not timely submit to the institute.
(e)  The chief compliance officer shall:
(1)  monitor compliance with this section and the
status of any required report a grant recipient does not timely
(2)  notify the institute's general counsel and the
oversight committee of a grant recipient who has not complied with
the grant contract reporting requirements to allow the institute to
suspend or terminate the contract as the institute determines
(f)  The chief compliance officer shall establish procedures
for investigating allegations against oversight committee members,
institute employees or contractors, grant applicants, or grant
recipients for fraud, waste, or abuse of state resources.  The
(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 who
submits a compliance report related to fraud, waste, or abuse or
participates in a compliance investigation.
SUBCHAPTER C.  OVERSIGHT COMMITTEE
Sec. 101A.101.  COMPOSITION OF OVERSIGHT COMMITTEE.  (a)
The oversight committee is the institute's governing body.
(b)  The oversight committee is composed of the following
(1)  three members appointed by the governor;
(2)  three members appointed by the lieutenant
(3)  three members appointed by the speaker of the
(c)  The oversight committee members must represent this
state's geographic and cultural diversity.
(d)  In making appointments to the oversight committee, the
governor, lieutenant governor, and speaker of the house of
(1)  must each appoint at least one person who is a
physician or a scientist with extensive experience working with
Alzheimer's disease or related disorders or in the field of public
(2)  should attempt to include persons affected by
Alzheimer's disease or related disorders or family members or
caregivers of patients with Alzheimer's disease or related
(e)  A person may not be an oversight committee member if the
(1)  is employed by or participates in the management
of an entity receiving money from the institute;
(2)  owns or controls, directly or indirectly, an
interest in an entity 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. 101A.102.  REMOVAL.  (a)  It is a ground for removal
from the oversight committee that a member:
(1)  is ineligible for membership under Section
(2)  cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
(3)  is absent from more than half of the regularly
scheduled oversight committee meetings 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 oversight committee action is not
affected by the fact that the action 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 of a committee member 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
Sec. 101A.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 authority 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 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
Sec. 101A.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
(c)  The oversight committee shall:
(1)  establish and approve duties and responsibilities
(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
Sec. 101A.105.  EXPENSES.  An oversight committee member is
not entitled to compensation but is entitled to reimbursement for
actual and necessary expenses incurred in attending committee
meetings or performing other official duties authorized by the
Sec. 101A.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
(1)  managing, acquiring, or selling securities or
other revenue-sharing obligations realized under the standards
established as required by Section 101A.305; and
(2)  an ongoing compliance investigation into issues
related to fraud, waste, or abuse of state resources.
Sec. 101A.107.  POWERS AND DUTIES.  (a)  The oversight
(1)  hire a chief executive officer;
(2)  annually set priorities for each grant program
established 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,
employee, or 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)  holding a personal investment or financial
interest that could reasonably create a substantial conflict
between the private interests and official duties of the member or
(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
(6)  directly or indirectly leasing to an entity that
receives a grant from the institute any property, capital
equipment, employee, or service;
(7)  submitting a grant application for funding by the
(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
Sec. 101A.108.  RULEMAKING AUTHORITY.  The oversight
committee may adopt rules to administer this chapter.
Sec. 101A.109.  FINANCIAL STATEMENT REQUIRED.  Each
oversight committee member shall file with the chief compliance
officer a verified financial statement complying with Sections
572.022, 572.023, 572.024, 572.025, 572.0251, and 572.0252,
Government Code, as required of a state officer by Section 572.021
SUBCHAPTER D.  OTHER INSTITUTE COMMITTEES
Sec. 101A.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 to the peer
(1)  experts in fields related to Alzheimer's disease
or related disorders, including research, health care, disease
treatment and prevention, and other study areas; and
(2)  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
(c)  The oversight committee shall adopt rules regarding the
qualifications required of a trained patient advocate for
membership on the peer review committee.  The rules must require the
trained patient advocate to successfully complete science-based
(d)  A peer review committee member may receive an
honorarium.  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
(f)  A peer review committee member may not serve on the
board of directors or other governing board of an entity receiving a
(g)  Peer review committee members serve for terms as
determined by the chief executive officer.
Sec. 101A.152.  PROGRAM INTEGRATION COMMITTEE.  (a)  The
institute shall establish a program integration committee to carry
out the duties assigned under this chapter.
(b)  The program integration committee is composed of:
(1)  the chief executive officer, who serves 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 or the executive
Sec. 101A.153.  HIGHER EDUCATION ADVISORY COMMITTEE.  (a)
The higher education advisory committee is composed of the
(1)  two members appointed by the chancellor of The
University of Texas System to represent:
(A)  The University of Texas Southwestern Medical
(B)  The University of Texas Medical Branch at
(C)  The University of Texas Health Science Center
(D)  The University of Texas Health Science Center
(E)  The University of Texas Health Center at
(2)  one member appointed by the chancellor of The
Texas A&M University System to represent:
(A)  The Texas A&M University System Health
(B)  the teaching hospital for The Texas A&M
Health Science Center College of Medicine;
(3)  one member appointed by the chancellor of the
Texas Tech University System to represent the Texas Tech University
(4)  one member appointed by the chancellor of the
University of Houston System to represent the system;
(5)  one member appointed by the chancellor of the
Texas State University System to represent the system;
(6)  one member appointed by the chancellor of the
University of North Texas System to represent the system;
(7)  one member appointed by the president of Baylor
(8)  one member appointed by the president of Rice
(b)  The higher education advisory committee shall advise
the oversight committee on issues, opportunities, the role of
higher education, and other subjects involving research on
Alzheimer's disease and related disorders.
Sec. 101A.154.  AD HOC ADVISORY COMMITTEE.  (a)  The
oversight committee, as necessary, may create additional ad hoc
advisory committees composed of experts to advise the oversight
committee on issues relating to prevention of or research on
Alzheimer's disease and related disorders or other issues related
to Alzheimer's disease or related disorders.
(b)  Ad hoc committee members serve for the terms the
oversight committee determines.
Sec. 101A.155.  EXPENSES.  Members of the higher education
advisory committee created under Section 101A.153 or an ad hoc
advisory committee created under Section 101A.154 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
SUBCHAPTER E.  ALZHEIMER'S PREVENTION AND RESEARCH FUND
Sec. 101A.201.  ALZHEIMER'S PREVENTION AND RESEARCH FUND.
(a)  In this subchapter, "fund" means the Alzheimer's Prevention
and 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
institute may use money in the fund as authorized by this chapter
without further legislative appropriation.
(1)  money transferred to the fund under Section 68,
Article III, Texas Constitution;
(2)  money the legislature appropriates, credits, or
(3)  gifts and grants, including grants from the
federal government, and other donations received for the fund;
(4)  patent, royalty, and license fees and other income
received under a contract executed as provided by Section 101A.304;
(5)  investment earnings and interest earned on amounts
(c)  The fund may only be used for the purposes authorized
under Section 68, Article III, Texas Constitution, including:
(1)  the award of grants for research on or prevention
of Alzheimer's disease and related disorders and research
facilities in this state to conduct that research;
(2)  the purchase of, subject to the institute's
approval, research facilities by or for a state agency or grant
(3)  the operation of the institute.
Sec. 101A.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
(c)  The trust company shall hold and invest the fund, and
any accounts established in the fund, for the institute taking into
consideration the authorized uses of money in the fund.  The fund
may be invested with the state treasury pool and may be pooled with
other state assets for investment purposes.
(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
(e)  The trust company has any power necessary to accomplish
the purposes of managing and investing the fund's assets.  In
managing the fund's assets, 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 fund's assets rather than a
(f)  The expenses of managing the fund shall be paid from the
(g)  The trust company annually shall provide to the
institute and the oversight committee a written report on the
(h)  The trust company shall adopt an appropriate written
investment policy 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
(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 the trust company is able to achieve the objective specified
(j)  The trust company shall disburse money from the fund as
the institute directs. 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. 101A.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
(b)  Except as otherwise provided by this section, grant
money awarded under this chapter may be used for authorized
(4)  conference fees and expenses;
(7)  contracted research and development;
(9)  construction or renovation of state or private
(c)  A grant recipient awarded money under this chapter for
research on Alzheimer's disease or related disorders may not spend
more than five percent of the money for indirect costs.  In this
subsection, "indirect costs" means business expenses not readily
identified with a particular grant, contract, project, function, or
activity that 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
during that year for facility purchase, construction, remodel, or
renovation purposes, and those expenditures must benefit research
on Alzheimer's disease or related disorders.
(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
during that year for prevention projects and strategies to mitigate
the incidence of Alzheimer's disease or related disorders.
SUBCHAPTER F.  CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL
Sec. 101A.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 oversight committee
members, program integration committee members, peer review
committee members, and institute employees.
(b)  An oversight committee member, program integration
committee member, peer review committee member, or institute
employee shall recuse the member or employee, as provided by
Section 101A.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 awarded a grant or
applying for a grant from the institute.
(c)  For purposes of Subsection (b), a person has a
professional interest in an entity awarded a grant or applying for a
grant 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
(2)  serves as an elected or appointed officer of the
(3)  is an employee of or is negotiating future
(5)  is a professional associate of a primary member of
(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;
(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)  For purposes of Subsection (b), a person has a financial
interest in an entity awarded a grant or applying for a grant from
(1)  directly or indirectly owns or controls an
ownership interest, including sharing in profits, proceeds, or
capital gains, in an entity awarded a grant or applying for a grant
(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
(e)  Nothing in this chapter limits the oversight
committee's authority to adopt additional conflict-of-interest
Sec. 101A.252.  DISCLOSURE OF CONFLICT OF INTEREST; RECUSAL.
(a)  If an oversight committee member or program integration
committee member has a conflict of interest described by Section
101A.251 regarding an application before the member for review or
(1)  shall 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)  shall disclose the conflict of interest in an open
meeting of the oversight committee;
(3)  shall recuse themselves from participating in the
review, discussion, deliberation, and vote on the application; and
(4)  may not access information regarding the matter to
(b)  If a peer review committee member has a conflict of
interest described by Section 101A.251 regarding an application
before the member's committee for review or other action, the
(1)  shall provide written notice to the chief
executive officer of the conflict of interest;
(2)  shall recuse themselves from participating in the
review, discussion, deliberation, and vote on the application; and
(3)  may not access information regarding the matter to
(c)  If an institute employee has a conflict of interest
described by Section 101A.251 regarding an application before the
employee for review or other action, the employee:
(1)  shall provide written notice to the chief
executive officer of the conflict of interest;
(2)  shall recuse themselves from participating in the
(3)  may not access information regarding the matter to
(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
(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 institute's 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,
(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
Sec. 101A.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 oversight committee's presiding officer a written
statement about the conflict of interest, the exceptional
circumstance requiring the waiver, and any proposed limitations to
(2)  require a proposed waiver to be publicly reported
at an oversight committee meeting;
(3)  require a majority vote of the oversight committee
members present and voting to grant a waiver;
(4)  require any waiver granted to be included in the
annual report required by Section 101A.053; and
(5)  require the institute to retain documentation of
Sec. 101A.254.  INVESTIGATION OF UNREPORTED CONFLICTS OF
INTEREST.  (a)  An oversight committee member, program integration
committee member, peer review committee member, or institute
employee who becomes aware of an unreported potential conflict of
interest described by Section 101A.251 shall immediately notify the
chief executive officer of the potential conflict of interest.  On
receipt of the notification, the chief executive officer shall
notify the institute's general counsel and the oversight
committee's presiding officer, 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 chief executive officer. The
(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 to the
oversight committee final funding recommendations for the affected
(c)  On receipt of notification of an alleged conflict of
interest under Subsection (a) or (b), the institute's general
(1)  investigate the matter; and
(2)  provide to the chief executive officer and the
oversight committee's presiding officer an opinion that includes:
(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 oversight committee's presiding officer,
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
oversight committee's presiding officer, 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. 101A.255.  FINAL DETERMINATION OF UNREPORTED CONFLICT
OF INTEREST.  (a)  The chief executive officer or, if applicable,
the oversight committee's presiding officer shall make a
determination regarding the existence of an unreported conflict of
interest described by Section 101A.251 or other impropriety or
self-dealing.  The determination must specify any actions to be
taken to address the conflict of interest, impropriety, or
(1)  reconsideration of the application; or
(2)  referral of the application to another peer 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
(c)  The chief executive officer or, if applicable, the
oversight committee's presiding officer, shall provide to the grant
applicant requesting the investigation written notice of the final
determination, including any further actions to be taken.
(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
SUBCHAPTER G.  PROCEDURE FOR AWARDING GRANTS
Sec. 101A.301.  PEER REVIEW PROCESS FOR GRANT AWARD.  The
institute shall establish a peer review process to evaluate and
recommend all grants the oversight committee awards under this
Sec. 101A.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
(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
(A)  includes documentation on the factors the
program integration committee considered in making the
(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
applications including proposals that:
(i)  may lead to immediate or long-term
medical and scientific breakthroughs in the areas of prevention or
treatment for Alzheimer's disease and related disorders;
(ii)  strengthen and enhance fundamental
scientific research on Alzheimer's disease and related disorders;
(iii)  ensure a comprehensive coordinated
approach to research on Alzheimer's disease and related disorders;
(v)  align with state priorities and needs,
including priorities and needs outlined in other state agency
strategic plans, or that address federal or other major research
sponsors' priorities in scientific or technological research in the
fields of Alzheimer's disease and related disorders;
(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
(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
(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
(b)  A peer review committee member 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
(c)  A program integration committee member may not discuss a
grant applicant recommendation with an oversight committee member
unless the program integration committee has submitted the list
required under Subsection (a)(2).
(d)  Two-thirds of the oversight committee members present
and voting must vote to approve each grant award recommendation of
the program integration committee.  If the oversight committee does
not approve a grant award recommendation of the program integration
committee, a statement explaining the reasons the 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, 2026.  This section does not apply to gifts, fees,
honoraria, or other items also excepted under Section 36.10, Penal
Sec. 101A.303.  MULTIYEAR PROJECTS.  (a)  The oversight
committee may approve the award of grant money for a multiyear
(b)  The oversight committee shall specify the total amount
of money approved to fund the multiyear project.  For purposes of
this chapter, the total amount is considered to have been awarded in
the state fiscal year the peer review committee approved the
project.  The institute shall disburse only the money to be spent
during that fiscal year.  The institute shall disburse the
remaining grant money as the money is needed in each subsequent
Sec. 101A.304.  CONTRACT TERMS.  (a)  Before disbursing
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 part of
the grant amount 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
(i)  repay to this state the grant money used
to pay for the capital improvement, with interest at the rate and
according to the other terms provided by the contract; and
(ii)  share with this state a proportionate
amount of any profit realized from the sale;
(2)  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 101A.305;
(5)  require, in accordance with Subsection (b), the
grant recipient to dedicate an amount of matching money equal to
one-half of the amount of the grant awarded and specify the amount
of matching money to be dedicated;
(6)  specify the period in which the grant award must be
(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 the recipient has available an unexpended
amount of money equal to one-half of the grant amount dedicated to
the research specified in the grant proposal.  The institute shall
adopt rules specifying a grant recipient's obligations under this
chapter.  At a minimum, the rules must:
(1)  allow an institution of higher education or a
private or independent institution of higher education, as those
terms are defined by Section 61.003, Education Code, 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 101A.203(c);
(A)  the recipient of more than one grant award
under this chapter may provide matching money certification at an
(B)  the recipient of a multiyear grant award may
yearly certify matching money; and
(C)  grant money may not be disbursed to the
recipient until the annual certification of the matching money has
(3)  specify that money for certification purposes may
(B)  the fair market value of drug development
support provided to the recipient by the National Institutes of
Health or other similar programs;
(E)  nongovernmental money, including money from
private sources, foundation grants, gifts, and donations;
(4)  specify that the following items may not be used
(B)  volunteer services provided to the
(D)  the recipient's preexisting real estate,
including buildings, facilities, and land;
(E)  deferred giving, including a charitable
remainder annuity trust, charitable remainder unitrust, or pooled
(F)  any other items the institute determines;
(5)  require the recipient's certification to be
included in the grant award contract;
(6)  specify that the recipient's failure to provide
certification serves as grounds for terminating the grant award
(7)  require the 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
(8)  require the institute to establish a procedure to
annually review the documentation supporting the source and use of
money reported in the required certification.
(c)  The institute shall establish a policy on advance
(d)  The oversight committee shall adopt rules to administer
Sec. 101A.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 grant money awarded under this
(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 of the individual researcher,
(c)  The oversight committee may authorize the institute to
execute 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 from grant money awarded under this
chapter.  The institute shall implement practices and procedures
for the management, accounting, and disposition of securities,
equities, royalties, income, and other benefits the institute
determines are in this state's best interest.
Sec. 101A.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 grant recipients purchase goods and
services from suppliers in this state to the extent reasonably
Sec. 101A.307.  HISTORICALLY UNDERUTILIZED BUSINESSES.  The
oversight committee shall establish standards to ensure grant
recipients