86R5051 JG-D
 
  By: Davis of Harris H.B. No. 1302
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the Texas Mental Health Research
  Institute; authorizing the issuance of bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Title 12, Health and Safety Code, is amended by
  adding Chapter 1002 to read as follows:
  CHAPTER 1002. TEXAS MENTAL HEALTH RESEARCH INSTITUTE
  SUBCHAPTER A. GENERAL PROVISIONS
         Sec. 1002.0001.  DEFINITIONS. In this chapter:
               (1)  "Institute" means the Texas Mental Health Research
  Institute.
               (2)  "Oversight committee" means the Texas Mental
  Health Research Institute Oversight Committee.
               (3)  "Research review committee" means the Texas Mental
  Health Research Institute Research Review Committee.
         Sec. 1002.0002.  PURPOSE. The Texas Mental Health Research
  Institute is established to:
               (1)  develop and implement a Texas mental health
  research plan to promote synergistic collaboration in mental health
  and substance use disorder research across university systems in
  this state and advance the research component of the statewide
  behavioral health strategic plan or any appropriate successor
  statewide strategic plan relating to behavioral health;
               (2)  create and expedite innovation in mental health
  and substance use disorder research to improve the health of the
  residents of this state; and
               (3)  attract, create, or expand research capabilities
  of university systems in this state in a manner that will promote a
  substantial increase in mental health and substance use disorder
  research.
  SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
         Sec. 1002.0051.  POWERS AND DUTIES. (a) The institute:
               (1)  may make grants to health-related institutions of
  higher education to further the purpose of this chapter;
               (2)  may establish the appropriate standards and
  oversight bodies to ensure the proper use of funds authorized under
  this chapter;
               (3)  may employ necessary staff to provide
  administrative support to the institute;
               (4)  shall continuously monitor grant contracts and
  agreements authorized under this chapter and ensure that each grant
  recipient complies with the terms and conditions of the contract;
               (5)  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;
  and
               (6)  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 1002.0252.
         (b)  The institute shall employ a chief compliance officer to
  monitor and report to the oversight committee regarding compliance
  with this chapter and rules adopted under this chapter.
         (c)  In addition to other duties under this chapter, 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 approval; and
               (2)  attend and observe research review committee
  meetings to ensure compliance with this chapter and rules adopted
  under this chapter.
         Sec. 1002.0052.  CHIEF EXECUTIVE OFFICER. (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.
         (b)  The chief executive officer must have a demonstrated
  ability to lead and develop academic, commercial, and governmental
  partnerships and coalitions.
         Sec. 1002.0053.  ANNUAL REPORT. 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 mental health or substance use
  issues 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 applicant the institute is considering
  awarding a grant;
               (4)  any research accomplishments made during the
  preceding state fiscal year by a grant recipient; and
               (5)  the institute's future direction.
         Sec. 1002.0054.  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. The comptroller shall review and evaluate the
  audit and annually issue a public report of that review. The
  comptroller shall make recommendations concerning the institute's
  financial practices and performance.
         (b)  The oversight committee shall review the annual
  financial audit, the comptroller's report and evaluation of that
  audit, and the financial practices of the institute.
         Sec. 1002.0055.  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,
  including the amount of matching funds dedicated to the research
  specified for the grant award;
               (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 have periodic audits made of any
  electronic grant management system used to maintain records of
  grant applications and grant awards under this section. The
  institute shall address in a timely manner each weakness identified
  in an audit of the system.
         Sec. 1002.0056.  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. 1002.0101.  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. 1002.0102.  TERMS; VACANCY. (a) Oversight committee
  members appointed by the governor, lieutenant governor, and speaker
  of the house of representatives serve at the pleasure of the
  appointing office for staggered six-year terms, with the terms of
  three members expiring January 31 of each even-numbered year.
         (b)  Not later than the 30th day after the date an oversight
  committee member's term expires, the appropriate appointing
  authority shall appoint a replacement.
         (c)  If a vacancy occurs on the oversight committee, the
  appropriate appointing authority shall appoint a successor in the
  same manner as the original appointment to serve for the remainder
  of the unexpired term. The appropriate appointing authority shall
  appoint the successor not later than the 30th day after the date the
  vacancy occurs.
         Sec. 1002.0103.  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 the employees of the institute.
         Sec. 1002.0104.  EXPENSES. A member of the oversight
  committee is not entitled to compensation but is entitled to
  reimbursement as provided by the General Appropriations Act for
  actual and necessary expenses incurred in attending meetings of the
  committee or performing other official duties authorized by the
  presiding officer.
         Sec. 1002.0105.  CONFLICT OF INTEREST. (a) The oversight
  committee shall adopt conflict-of-interest rules, based on
  standards adopted by the National Institutes of Health, to govern
  members of the oversight committee, members of the research review
  committee, and institute employees.
         (b)  Nothing in this chapter limits the authority of the
  oversight committee to adopt additional conflict-of-interest rules
  and standards.
         Sec. 1002.0106.  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 program that receives money under this
  chapter; and
               (3)  consider the priorities set under Subdivision (2)
  in awarding grants under this chapter.
         Sec. 1002.0107.  RULEMAKING AUTHORITY. The oversight
  committee may adopt rules to administer this chapter.
         Sec. 1002.0108.  CODE OF CONDUCT. The oversight committee
  shall adopt a code of conduct applicable to each member of the
  oversight committee, member of the research review committee, and
  institute employee.
         Sec. 1002.0109.  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. RESEARCH REVIEW COMMITTEE
         Sec. 1002.0151.  ESTABLISHMENT AND COMPOSITION OF RESEARCH
  REVIEW COMMITTEE. The oversight committee shall establish the
  research review 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 review
  committee experts in the field of mental health and substance use
  disorder research.
  SUBCHAPTER E. FUNDING
         Sec. 1002.0201.  TEXAS MENTAL HEALTH RESEARCH FUND. (a) The
  Texas mental health research fund is a dedicated account in the
  general revenue fund.
         (b)  The Texas mental health research fund consists of:
               (1)  appropriations of money to the fund by the
  legislature, except that the appropriated money may not include the
  proceeds from the issuance of bonds authorized by Section 68,
  Article III, Texas Constitution;
               (2)  gifts and grants, including grants from the
  federal government, received for the fund; and
               (3)  interest earned on the investment of money in the
  fund.
         (c)  The fund may be used only to pay for:
               (1)  grants for mental health or substance use disorder
  research and for research facilities in this state to conduct
  mental health or substance use disorder research;
               (2)  the purchase, subject to approval by the
  institute, of research facilities by or on behalf of a state agency
  or grant recipient;
               (3)  the operation of the institute; and
               (4)  debt service on bonds issued as authorized by
  Section 68, Article III, Texas Constitution.
         Sec. 1002.0202.  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, 2020, and may not issue and sell more than $100 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 in separate funds or accounts, in the state treasury, as
  prescribed by the proceedings authorizing the bonds.
         (f)  The proceeds of the bonds may be used only to:
               (1)  make grants authorized by Section 68, Article III,
  Texas Constitution;
               (2)  purchase facilities approved by the institute;
               (3)  pay costs of operating the institute; or
               (4)  pay costs of issuing the bonds and related bond
  administration costs of the Texas Public Finance Authority.
         Sec. 1002.0203.  AUTHORIZED USE OF FUNDS. (a) A grant
  recipient awarded money from the Texas mental health research fund
  established under Section 1002.0201 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)  Except as otherwise provided by this section, 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 MAKING AWARDS
         Sec. 1002.0251.  INSTITUTIONS ELIGIBLE TO RECEIVE AWARDS.
  The following health-related institutions of higher education are
  eligible to receive awards under this chapter:
               (1)  Baylor College of Medicine;
               (2)  The Texas A&M University System 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; and
               (12)  The University of Texas Southwestern Medical
  Center.
         Sec. 1002.0252.  PEER REVIEW PROCESS. The research review
  committee shall develop and oversee a peer review process for the
  selection of mental health and substance use disorder research
  projects. The peer review process must evaluate research projects
  based on:
               (1)  to what extent the research project aligns with
  the research component of the statewide behavioral health strategic
  plan;
               (2)  to what extent the research project aligns with
  state priorities and needs, including priorities and needs outlined
  in the statewide behavioral health strategic plan;
               (3)  the anticipated impact and reach of the research
  project on residents of this state; and
               (4)  the number of health-related institutions of
  higher education participating in the research project.
         Sec. 1002.0253.  RULES FOR GRANT AWARD PROCEDURE. (a) The
  oversight committee shall issue rules regarding the procedure for
  awarding grants to an applicant under this chapter. The rules must
  require the research review committee to score grant applications
  and make recommendations to the oversight committee regarding the
  award of research grants, including the creation of a prioritized
  list that:
               (1)  ranks the grant applications in the order the
  research review committee determines applications should be
  funded; and
               (2)  includes information explaining how each grant
  application on the list meets the research review committee's
  standards for recommendation.
         (b)  In scoring and making recommendations to the oversight
  committee under Subsection (a), the research review committee
  shall, to the extent possible:
               (1)  give first priority to grant applications that
  focus on one or more of the following focus areas:
                     (A)  depression;
                     (B)  first episode of psychosis;
                     (C)  substance use disorder;
                     (D)  bipolar disorder and schizophrenia; or
                     (E)  community systems research; and
               (2)  give second priority to grant applicants that:
                     (A)  ensure a collaborative approach to mental
  health and substance use disorder research;
                     (B)  ensure interdisciplinary or
  interinstitutional collaboration; or
                     (C)  enhance research superiority at
  health-related institutions of higher education in this state by:
                           (i)  creating new research superiority;
                           (ii)  attracting existing research
  superiority at health-related institutions of higher education
  outside this state and other research entities; and
                           (iii)  enhancing existing research
  superiority in this state by attracting researchers and resources
  from outside this state.
         Sec. 1002.0254.  FUNDING RECOMMENDATIONS. Two-thirds of the
  members of the oversight committee present and voting must vote to
  approve each funding recommendation of the research review
  committee. If the oversight committee does not approve a funding
  recommendation of the research review committee, a statement
  explaining the reasons a funding recommendation was not followed
  must be included in the minutes of the meeting.
         Sec. 1002.0255.  MAXIMUM AMOUNT OF ANNUAL AWARDS. The
  oversight committee may not award more than $100 million in grants
  under this chapter in a state fiscal year.
         Sec. 1002.0256.  PERIOD FOR AWARDS. The oversight committee
  may not award money under this chapter after August 31, 2032.
         Sec. 1002.0257.  GRANT EVALUATION. (a) The oversight
  committee shall require as a condition of a grant that the grant
  recipient submit to regular inspection reviews of the grant project
  by institute staff, including progress oversight reviews, to ensure
  compliance with the terms of the award and to ensure the scientific
  merit of the research.
         (b)  The chief executive officer shall determine the grant
  review process under this section. The chief executive officer may
  suspend or terminate in accordance with Subsection (f) grants that
  do not meet contractual obligations.
         (c)  The chief executive officer shall report at least
  annually to the oversight committee on the progress and continued
  merit of each research program funded 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, including verification
  of the amounts of matching funds dedicated to the research that is
  the subject of the grant award to the grant recipient.
         (e)  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 is
  not timely submitted to the institute by a grant recipient.
         (f)  The chief compliance officer shall monitor compliance
  with this section and at least annually shall inquire into and
  monitor the status of any required report that is 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 maintained compliance with the reporting requirements or
  matching funds provisions of the grant contract to allow the
  institute to begin suspension or termination of the grant contract
  under Subsection (b). This subsection does not limit other
  remedies available under the grant contract.
         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 Texas Mental Health
  Research Institute.
         SECTION 3.  (a) Not later than January 31, 2020, the
  appropriate appointing authority shall appoint the members to the
  Texas Mental Health Research Institute Oversight Committee as
  required by Section 1002.0101, 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 1002.0101, 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 designate one member of the Texas
  Mental Health Research Institute Oversight Committee appointed by
  that person to serve a term expiring January 31, 2022, one member
  appointed by that person to serve a term expiring January 31, 2024,
  and one member appointed by that person to serve a term expiring
  January 31, 2026.
         SECTION 4.  This Act takes effect on January 1, 2020, but
  only if the constitutional amendment proposed by the 86th
  Legislature, Regular Session, 2019, providing for the
  establishment of the Texas Mental Health Research Institute is
  approved by the voters. If that amendment is not approved by the
  voters, this Act has no effect.