Bill Text: TX SB264 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to the establishment of the Texas Research Consortium to Cure Infectious Diseases (TRANSCEND); authorizing the issuance of bonds.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-03 - Referred to Health & Human Services [SB264 Detail]
Download: Texas-2021-SB264-Introduced.html
87R1318 JG-D | ||
By: Menéndez | S.B. No. 264 |
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relating to the establishment of the Texas Research Consortium to | ||
Cure Infectious Diseases (TRANSCEND); authorizing the issuance of | ||
bonds. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle D, Title 2, Health and Safety Code, is | ||
amended by adding Chapter 90 to read as follows: | ||
CHAPTER 90. TEXAS RESEARCH CONSORTIUM TO CURE INFECTIOUS DISEASES | ||
(TRANSCEND) | ||
SUBCHAPTER A. GENERAL PROVISIONS | ||
Sec. 90.001. DEFINITIONS. In this chapter: | ||
(1) "Consortium" means the Texas Research Consortium | ||
to Cure Infectious Diseases (TRANSCEND). | ||
(2) "Disease" means a disorder of structure or | ||
function in a human that produces specific signs or symptoms or | ||
affects a specific location in the human body and that has the | ||
potential of being prevented by a vaccine or otherwise treated or | ||
cured. | ||
(3) "Oversight committee" means the Texas Research | ||
Consortium to Cure Infectious Diseases (TRANSCEND) Oversight | ||
Committee. | ||
(4) "Scientific committee" means the Texas Research | ||
Consortium to Cure Infectious Diseases (TRANSCEND) Scientific | ||
Committee. | ||
Sec. 90.002. PURPOSE. The Texas Research Consortium to | ||
Cure Infectious Diseases (TRANSCEND) is established to: | ||
(1) accelerate advancements in infectious disease | ||
diagnosis, treatment, prevention, and cures; | ||
(2) facilitate innovative research and development to | ||
prepare for and address public health crises caused by infectious | ||
diseases; | ||
(3) recruit, retain, and invest in leading infectious | ||
disease experts to research and develop diagnostics, therapies, and | ||
vaccines for infectious diseases; | ||
(4) establish a centralized research location through | ||
which the consortium will operate and facilitate collaborative | ||
research on infectious diseases and related disorders and the | ||
development of treatments and cures for infectious diseases; and | ||
(5) communicate the consortium's mission to the | ||
public. | ||
Sec. 90.003. SUNSET PROVISION. The Texas Research | ||
Consortium to Cure Infectious Diseases (TRANSCEND) is subject to | ||
Chapter 325, Government Code (Texas Sunset Act), but is not | ||
abolished under that chapter. The consortium shall be reviewed | ||
during the period in which state agencies scheduled to be abolished | ||
in 2035, and every 12 years after that year, are reviewed. | ||
SUBCHAPTER B. POWERS AND DUTIES OF CONSORTIUM | ||
Sec. 90.051. POWERS AND DUTIES. The consortium: | ||
(1) may award grants to persons for the purpose of: | ||
(A) conducting collaborative research on | ||
infectious diseases and associated conditions and innovative | ||
methods to prepare for infectious disease outbreaks; | ||
(B) developing treatments and cures, including | ||
vaccines, for diseases and associated conditions; | ||
(C) developing education initiatives and | ||
conducting outreach to engage and inform the public on infectious | ||
diseases and associated conditions; and | ||
(D) developing initiatives to prepare for and | ||
rapidly respond to infectious disease outbreaks and public health | ||
crises; | ||
(2) shall establish a centralized research location | ||
through which the consortium will operate and facilitate | ||
collaborative research on infectious diseases and related | ||
disorders and the development of treatments and cures for | ||
infectious diseases; | ||
(3) shall establish appropriate standards and | ||
oversight bodies to ensure money authorized under this chapter is | ||
properly used for infectious disease research and preparation and | ||
development of infectious disease treatments and cures; | ||
(4) shall develop collaborative research | ||
opportunities in accordance with Subchapter F; | ||
(5) may employ necessary staff to provide | ||
administrative support; | ||
(6) shall continuously monitor contracts or | ||
agreements entered into under this chapter to ensure that each | ||
grant recipient or person conducting research under Subchapter F | ||
complies with the terms and conditions of the contract or | ||
agreement; | ||
(7) shall ensure that all grant applications comply | ||
with this chapter and rules adopted under this chapter before the | ||
applications are submitted to the scientific committee for | ||
consideration and approval; and | ||
(8) shall establish procedures to document that the | ||
consortium, the consortium's employees, and other consortium | ||
members appointed or hired under this chapter comply with any laws | ||
and rules governing conflicts of interest. | ||
Sec. 90.052. CHIEF EXECUTIVE OFFICER; CHIEF COMPLIANCE | ||
OFFICER; ADDITIONAL OFFICERS. (a) The oversight committee shall | ||
hire a chief executive officer. The chief executive officer shall | ||
perform the duties required under this chapter or designated by the | ||
oversight committee. The chief executive officer must have a | ||
demonstrated ability to lead and develop academic, commercial, and | ||
public or private partnerships and coalitions. | ||
(b) The consortium shall employ a chief compliance officer | ||
to monitor compliance with this chapter and rules adopted under | ||
this chapter and report incidents of noncompliance to the oversight | ||
committee. The chief compliance officer shall: | ||
(1) ensure that all grant applications comply with | ||
this chapter and rules adopted under this chapter before the | ||
applications are submitted to the scientific committee for | ||
consideration and approval; | ||
(2) attend and observe meetings of the scientific | ||
committee to ensure compliance with this chapter and rules adopted | ||
under this chapter; and | ||
(3) perform other duties assigned under this chapter | ||
or by the oversight committee. | ||
(c) The chief executive officer may propose and the | ||
oversight committee may approve the hiring of additional officers. | ||
An officer hired under this subsection shall report directly to the | ||
chief executive officer. | ||
Sec. 90.053. CONSORTIUM PRINCIPAL OFFICE. (a) The | ||
consortium shall establish its principal office at a facility in | ||
this state that: | ||
(1) is a world-recognized leader in infectious disease | ||
research and vaccine development; | ||
(2) is central to all parts of this state, including | ||
areas with high-risk populations most vulnerable to infectious | ||
diseases; | ||
(3) has exclusive jurisdiction over a laboratory | ||
facility with a federal biosafety level of BSL-4, as designated by | ||
the Centers for Disease Control and Prevention; and | ||
(4) has access to a sufficient number of suitable | ||
specimens for vaccine testing efficacy and safety. | ||
(b) The consortium's principal office is the consortium's | ||
central research location through which the consortium operates and | ||
facilitates collaborative research under this chapter. | ||
(c) The consortium shall adopt appropriate procedures and | ||
safeguards to ensure: | ||
(1) the consortium and the facility described by | ||
Subsection (a) are governed and operated independently of each | ||
other; and | ||
(2) the facility described by Subsection (a) receives | ||
no unfair advantage in grants awarded under this chapter. | ||
Sec. 90.054. ANNUAL REPORT; INTERNET POSTING. Not later | ||
than January 31 of each year, the consortium shall prepare and | ||
submit to the governor, the lieutenant governor, and each member of | ||
the legislature and post on the consortium's Internet website a | ||
written report that includes: | ||
(1) the number of grants awarded during the preceding | ||
state fiscal year; | ||
(2) a list of grant recipients for the preceding state | ||
fiscal year, including the dollar amount of the grant awarded to | ||
each recipient; | ||
(3) the consortium's administrative expenses for the | ||
preceding state fiscal year; | ||
(4) an assessment on the availability of money for | ||
conducting research authorized under this chapter from sources | ||
other than the consortium; | ||
(5) a summary of findings during the preceding state | ||
fiscal year from research projects funded by the consortium, | ||
including any promising new research areas; | ||
(6) an assessment of the relationship between the | ||
research projects funded by the consortium during the preceding | ||
state fiscal year and the overall strategy of the consortium's | ||
research goals; | ||
(7) a statement of the consortium's strategic research | ||
and financial plans for the next state fiscal year; | ||
(8) an estimate of the amount of money the state spent | ||
during the preceding state fiscal year to treat individuals with | ||
infectious diseases, including the amount spent to treat | ||
individuals with diseases through the child health plan program, | ||
Medicaid, the Teacher Retirement System of Texas, and the Employees | ||
Retirement System of Texas; and | ||
(9) a statement of the consortium's compliance program | ||
activities during the preceding state fiscal year, including any | ||
proposed legislative or other recommendations identified through | ||
those activities. | ||
Sec. 90.055. INDEPENDENT FINANCIAL AUDIT FOR REVIEW BY | ||
COMPTROLLER. (a) The consortium shall annually commission an | ||
independent financial audit of the consortium's activities from a | ||
certified public accounting firm. | ||
(b) The consortium shall provide the audit to the | ||
comptroller and, as soon as practicable after receiving the audit, | ||
the comptroller shall: | ||
(1) review and evaluate the audit and issue a public | ||
report of that review and evaluation; and | ||
(2) make recommendations to the consortium regarding | ||
the financial practices of the consortium. | ||
(c) The oversight committee shall review the audit and the | ||
comptroller's report and recommendations. As applicable, the | ||
oversight committee shall seek to modify the consortium's financial | ||
practices based on the audit, report, and recommendations. | ||
Sec. 90.056. GRANT RECORDS. (a) The consortium shall | ||
maintain complete records of: | ||
(1) the review of each grant application submitted to | ||
the consortium, including the score assigned to each grant | ||
application reviewed, regardless of whether the grant application | ||
is approved by the scientific committee or withdrawn after | ||
submission to the scientific committee; | ||
(2) each grant recipient's financial reports, | ||
including dedicated matching money provided by the recipient for | ||
the specified research project; | ||
(3) progress reports for each research project awarded | ||
money under this chapter; | ||
(4) the consortium's policies and procedures for | ||
determining any conflicts of interest and identifying each | ||
principal investor and owner of each grant recipient as provided by | ||
consortium rules; and | ||
(5) the consortium's review of the grant recipient's | ||
financial and progress reports. | ||
(b) The consortium shall have periodic audits conducted of | ||
any electronic grant management system used to maintain records | ||
under this section of grant applications and grants awarded. The | ||
consortium shall address in a timely manner each issue identified | ||
in an audit of the system. | ||
Sec. 90.057. GIFTS AND GRANTS. The consortium may solicit | ||
and accept gifts and grants from any source to carry out the | ||
purposes of this chapter. | ||
SUBCHAPTER C. OVERSIGHT COMMITTEE | ||
Sec. 90.101. COMPOSITION OF OVERSIGHT COMMITTEE; | ||
ELIGIBILITY OF MEMBERS. (a) The oversight committee is the | ||
governing body of the consortium. | ||
(b) The oversight committee is composed of: | ||
(1) the following nine voting members: | ||
(A) three members appointed by the governor; | ||
(B) three members appointed by the lieutenant | ||
governor; and | ||
(C) three members appointed by the governor from | ||
a list provided to the governor by the speaker of the house of | ||
representatives; and | ||
(2) an ex officio nonvoting member, the chief | ||
executive officer of the facility described by Section 90.053(a). | ||
(c) The voting members of the oversight committee must | ||
represent the geographic and cultural diversity of this state. | ||
(d) In making appointments or recommendations for | ||
appointments to the oversight committee, the governor, lieutenant | ||
governor, and speaker of the house of representatives must each | ||
appoint or recommend, as applicable, at least one person who is a | ||
physician or a scientist with extensive experience in epidemiology, | ||
vaccines, or public health. | ||
(e) A person may not be a voting member of the oversight | ||
committee if the person or the person's spouse: | ||
(1) is employed by or participates in the management | ||
of a business entity or other organization receiving money from the | ||
consortium; | ||
(2) owns or controls, directly or indirectly, an | ||
interest in a business entity or other organization receiving money | ||
from the consortium; or | ||
(3) uses or receives a substantial amount of tangible | ||
goods, services, or money from the consortium, other than | ||
reimbursement authorized by this chapter for oversight committee | ||
membership, attendance, or expenses. | ||
Sec. 90.102. TERMS; VACANCY; REMOVAL. (a) Oversight | ||
committee members serve at the pleasure of the appointing authority | ||
for staggered four-year terms, with the terms of four or five voting | ||
members expiring January 31 of each even-numbered year. | ||
(b) Not later than the 30th day after the date an oversight | ||
committee member's term expires, the appropriate appointing | ||
authority shall appoint a replacement in the same manner as the | ||
original appointment. | ||
(c) If a vacancy occurs on the oversight committee, the | ||
appropriate appointing authority shall appoint a successor in the | ||
same manner as the original appointment to serve for the remainder | ||
of the unexpired term. The appropriate appointing authority shall | ||
appoint the successor not later than the 30th day after the date the | ||
vacancy occurs. | ||
(d) It is a ground for removal from the oversight committee | ||
that a member: | ||
(1) is ineligible for membership under Section 90.101; | ||
(2) cannot, because of illness or disability, | ||
discharge the member's duties for a substantial part of the member's | ||
term; or | ||
(3) is absent from more than half of the regularly | ||
scheduled oversight committee meetings that the member is eligible | ||
to attend during a calendar year without an excuse approved by a | ||
majority vote of the oversight committee. | ||
Sec. 90.103. OFFICERS. (a) The oversight committee shall | ||
elect a presiding officer and assistant presiding officer from | ||
among its voting members every two years. The oversight committee | ||
may elect additional officers from among its voting members. | ||
(b) The presiding officer and assistant presiding officer | ||
may not serve in the position to which the officer was elected for | ||
two consecutive terms. | ||
(c) The oversight committee shall: | ||
(1) establish and approve duties and responsibilities | ||
for officers of the committee; and | ||
(2) develop and implement policies that distinguish | ||
the responsibilities of the oversight committee and the committee's | ||
officers from the responsibilities of the chief executive officer | ||
and the employees of the consortium. | ||
Sec. 90.104. EXPENSES. A member of the oversight committee | ||
is not entitled to compensation but is entitled to reimbursement | ||
for actual and necessary expenses incurred in attending meetings of | ||
the committee or performing other official duties authorized by the | ||
presiding officer. | ||
Sec. 90.105. CONFLICT OF INTEREST; DISCLOSURE AND RECUSAL. | ||
(a) The oversight committee shall adopt conflict-of-interest | ||
rules, based on standards adopted by the National Institutes of | ||
Health, to govern members of the oversight committee, members of | ||
the scientific committee, and consortium employees. | ||
(b) Nothing in this chapter limits the authority of the | ||
oversight committee to adopt additional conflict-of-interest rules | ||
and standards. | ||
(c) If an oversight committee member or scientific | ||
committee member has a conflict of interest based on standards | ||
adopted under this section regarding a grant application that comes | ||
before the member for review or other action, the member shall: | ||
(1) provide to the chief executive officer and the | ||
presiding officer of the oversight committee, or if the presiding | ||
officer has the conflict, the next ranking member of the oversight | ||
committee, written notice of the conflict of interest; | ||
(2) disclose the conflict of interest in an open | ||
meeting of the oversight committee; and | ||
(3) recuse himself or herself from participating in | ||
the review, discussion, deliberation, and vote on the grant | ||
application and from accessing information regarding the matter to | ||
be decided. | ||
Sec. 90.106. RULEMAKING AUTHORITY. The oversight committee | ||
may adopt rules necessary to administer this chapter. | ||
Sec. 90.107. CODE OF CONDUCT. The oversight committee | ||
shall adopt a code of conduct applicable to each member of the | ||
oversight committee, member of the scientific committee, and | ||
consortium employee. | ||
Sec. 90.108. FINANCIAL STATEMENT REQUIRED. Each member of | ||
the oversight committee shall file with the chief compliance | ||
officer a verified financial statement complying with Sections | ||
572.022 through 572.0252, Government Code, as required of a state | ||
officer by Section 572.021, Government Code. | ||
SUBCHAPTER D. FUNDING | ||
Sec. 90.151. INFECTIOUS DISEASE RESEARCH FUND. (a) The | ||
infectious disease research fund is a dedicated account in the | ||
general revenue fund. | ||
(b) The fund consists of: | ||
(1) the proceeds from the issuance of bonds authorized | ||
by Section 69, Article III, Texas Constitution, and any additional | ||
appropriations of money to the fund by the legislature; | ||
(2) gifts and grants, including grants from the | ||
federal government, received for the fund; and | ||
(3) interest, dividends, and other income earned on | ||
the investment of money in the fund. | ||
(c) Money in the fund may only be used for: | ||
(1) awarding grants authorized under this chapter; | ||
(2) purchasing, subject to approval by the oversight | ||
committee, research and laboratory facilities by or on behalf of a | ||
grant recipient; | ||
(3) operating the consortium; and | ||
(4) debt service on bonds issued as authorized by | ||
Section 69, Article III, Texas Constitution. | ||
Sec. 90.152. ISSUANCE OF GENERAL OBLIGATION BONDS. (a) The | ||
consortium may request the Texas Public Finance Authority to issue | ||
and sell general obligation bonds of the state as authorized by | ||
Section 69, Article III, Texas Constitution. | ||
(b) The Texas Public Finance Authority may not issue and | ||
sell more than $300 million in general obligation bonds authorized | ||
by this section in a state fiscal year. | ||
(b-1) The Texas Public Finance Authority may not issue and | ||
sell more than $300 million in general obligation bonds authorized | ||
by this section before January 1, 2023. This subsection expires | ||
September 1, 2023. | ||
(c) The consortium shall determine, and include in its | ||
request for issuing bonds, the amount, exclusive of costs of | ||
issuance, of the bonds to be issued and the preferred time for | ||
issuing the bonds. | ||
(d) The Texas Public Finance Authority shall issue the bonds | ||
in accordance with and subject to Chapter 1232, Government Code, | ||
and Texas Public Finance Authority rules. The bonds may be issued | ||
in installments. | ||
(e) Proceeds of the bonds issued under this section shall be | ||
deposited in separate funds or accounts in the state treasury, as | ||
prescribed by the proceedings authorizing the bonds. | ||
(f) The proceeds of the bonds may be used only to: | ||
(1) make grants authorized by Section 69, Article III, | ||
Texas Constitution; | ||
(2) purchase research facilities approved by the | ||
consortium; | ||
(3) pay costs of operating the consortium; or | ||
(4) pay costs of issuing the bonds and related bond | ||
administration costs of the Texas Public Finance Authority. | ||
Sec. 90.153. AUTHORIZED USE OF FUNDS. (a) A grant | ||
recipient awarded money from the infectious disease research fund | ||
established under Section 90.151 may use the money for research | ||
consistent with the purposes of this chapter and in accordance with | ||
a contract between the grant recipient and the consortium. | ||
(b) Money awarded under this chapter may be used for | ||
authorized expenses, including honoraria, salaries and benefits, | ||
travel, conference fees and expenses, consumable supplies, other | ||
operating expenses, contracted research and development, capital | ||
equipment, and construction or renovation of state or private | ||
facilities. | ||
SUBCHAPTER E. SCIENTIFIC COMMITTEE AND GRANT AWARD PROCEDURES | ||
Sec. 90.201. SCIENTIFIC COMMITTEE. (a) The consortium | ||
shall establish a scientific committee. The committee is composed | ||
of seven or nine members appointed by the oversight committee. The | ||
members must: | ||
(1) reside in this state; and | ||
(2) have expertise in the field of infectious diseases | ||
or another field considered appropriate by the oversight committee. | ||
(b) The scientific committee shall elect a presiding | ||
officer and assistant presiding officer from among its members | ||
every two years. The scientific committee may elect additional | ||
officers from among its members. | ||
(c) Scientific committee members serve at the pleasure of | ||
the oversight committee. | ||
(d) The scientific committee may establish one or more | ||
advisory committees to assist the scientific committee in | ||
performing its duties under this chapter. A member of an advisory | ||
committee established under this subsection: | ||
(1) may reside in or outside of this state; | ||
(2) must have appropriate expertise to carry out the | ||
purposes for which the advisory committee was established; and | ||
(3) serves at the pleasure of the scientific | ||
committee. | ||
Sec. 90.202. GRANT APPLICATION REVIEW AND SELECTION. (a) | ||
The scientific committee shall receive, score, and select grant | ||
applications to fund based on the procedures and criteria described | ||
by this section. The oversight committee shall contract with and | ||
award grants to each grant applicant selected by the scientific | ||
committee. | ||
(b) The scientific committee shall establish procedures and | ||
criteria for reviewing grant applications and awarding grants under | ||
this chapter. The procedures must require the scientific committee | ||
to score and select grant applications to fund by developing a | ||
prioritized list that: | ||
(1) ranks the grant applications in the order the | ||
scientific committee determines the research projects proposed by | ||
the applications should be funded; and | ||
(2) includes information explaining the reasons each | ||
grant application on the list meets the scientific committee's | ||
standards for funding. | ||
(c) The scientific committee must consider the grant | ||
applicant's capability in: | ||
(1) conducting research on infectious diseases and | ||
associated conditions; | ||
(2) developing treatments and cures, including | ||
vaccines, for infectious diseases and associated conditions that | ||
are marketable to the public; | ||
(3) conducting outreach to engage and inform the | ||
public on the applicant's research results and best practices for | ||
treatment of infectious diseases and associated conditions; | ||
(4) developing innovative methods to prepare for | ||
infectious disease outbreaks; and | ||
(5) developing educational initiatives on the | ||
prevention of and treatment for infectious diseases and associated | ||
conditions. | ||
(d) The chief compliance officer shall compare each grant | ||
applicant to a list of donors from any nonprofit organization | ||
established to provide support to the consortium before the | ||
application is submitted to the scientific committee for review and | ||
selection and again before any contract is executed or grant is | ||
awarded to the applicant. | ||
(e) The consortium may not award a grant to an applicant who | ||
has made a gift or grant to the consortium or a nonprofit | ||
organization established to provide support to the consortium. | ||
Sec. 90.203. MAXIMUM AMOUNT OF ANNUAL AWARDS. The | ||
consortium may not award more than $300 million in grants under this | ||
chapter in a state fiscal year. | ||
Sec. 90.204. PERIOD FOR AWARDS. The consortium may not | ||
award a grant under this chapter after August 31, 2034. | ||
Sec. 90.205. CONTRACT TERMS. (a) The oversight committee | ||
shall negotiate on behalf of the state regarding a grant awarded | ||
under this chapter. | ||
(b) Before awarding money to a grant recipient selected by | ||
the scientific committee, the oversight committee shall enter into | ||
a written contract with the grant recipient. The contract may | ||
specify that: | ||
(1) if all or any portion of the amount of the grant is | ||
used to build a capital improvement: | ||
(A) the state retains a lien or other interest in | ||
the capital improvement in proportion to the percentage of the | ||
grant amount used to pay for the capital improvement; and | ||
(B) the grant recipient shall, if the capital | ||
improvement is sold: | ||
(i) repay to this state the grant money used | ||
to pay for the capital improvement, with interest at the rate and | ||
according to the other terms provided by the contract; and | ||
(ii) share with this state a proportionate | ||
amount of any profit realized from the sale; | ||
(2) if the grant recipient has not used grant money | ||
awarded under this chapter for the purposes for which the grant was | ||
intended, the recipient shall repay that amount and any related | ||
interest applicable under the contract to this state at the agreed | ||
rate and on the agreed terms; and | ||
(3) if the grant recipient fails to meet the terms and | ||
conditions of the contract, the consortium may terminate the | ||
contract using the written process prescribed in the contract and | ||
require the recipient to repay the grant money awarded under this | ||
chapter and any related interest applicable under the contract to | ||
this state at the agreed rate and on the agreed terms. | ||
(c) The contract must: | ||
(1) require, in accordance with Subsection (d), the | ||
grant recipient to dedicate an amount of matching funds equal to | ||
one-half of the amount of the research grant awarded; and | ||
(2) specify: | ||
(A) the amount of matching funds to be dedicated | ||
under Subdivision (1); | ||
(B) the period in which the grant award must be | ||
spent; | ||
(C) the name of the research project to which | ||
matching funds are to be dedicated; and | ||
(D) the specific deliverables of the project that | ||
is the subject of the grant proposal. | ||
(d) Before the oversight committee may award for infectious | ||
disease research any grant of any proceeds of the bonds issued under | ||
this chapter, the recipient of the grant must certify that the | ||
recipient has an amount of funds equal to one-half of the grant and | ||
dedicate those funds to the research that is the subject of the | ||
grant request. The consortium shall adopt rules specifying the | ||
manner in which a grant recipient fulfills obligations under this | ||
subsection. | ||
Sec. 90.206. GRANT EVALUATION. (a) The oversight | ||
committee shall require as a condition of a grant award that the | ||
grant recipient submit to regular inspection reviews by consortium | ||
staff of the research project for which the award was made, | ||
including progress oversight reviews, to ensure compliance with the | ||
terms of the award and to ensure the scientific merit of the | ||
research. | ||
(b) The chief executive officer shall determine the review | ||
process under this section. The chief executive officer may | ||
suspend or terminate in accordance with Subsection (f) grants made | ||
that fail to meet contractual obligations. | ||
(c) The chief executive officer shall report at least | ||
annually to the oversight committee on the progress and continued | ||
merit of each research project funded by a grant under this chapter. | ||
(d) The consortium shall establish and implement reporting | ||
requirements to ensure that each grant recipient complies with the | ||
terms and conditions of the grant contract, including verification | ||
of the amounts of matching funds dedicated to the research project | ||
that is the subject of the grant award to the grant recipient. | ||
(e) The consortium shall implement a system to: | ||
(1) track the dates on which reports under Subsection | ||
(d) are due and received by the consortium; and | ||
(2) monitor the status of any required report that is | ||
not timely submitted to the consortium. | ||
(f) The chief compliance officer shall monitor compliance | ||
with this section and at least annually inquire into and monitor the | ||
status of any required report that is not timely submitted to the | ||
consortium by a grant recipient. The chief compliance officer | ||
shall notify the general counsel for the consortium and the | ||
oversight committee of a grant recipient that has not maintained | ||
compliance with the reporting requirements or matching funds | ||
provisions of the grant contract to allow the consortium to begin | ||
suspension or termination of the grant contract under Subsection | ||
(b). This subsection does not limit other remedies available under | ||
the grant contract. | ||
Sec. 90.207. COMPLIANCE PROGRAM. (a) In this section, | ||
"compliance program" means a process to assess and ensure | ||
compliance by the oversight committee members, scientific | ||
committee members, and consortium employees with applicable laws, | ||
rules, and policies, including matters of: | ||
(1) ethics and standards of conduct; | ||
(2) financial reporting; | ||
(3) internal accounting controls; and | ||
(4) auditing. | ||
(b) The consortium shall establish a compliance program | ||
that operates under the direction of the chief compliance officer. | ||
The consortium may establish procedures, such as a telephone | ||
hotline, to allow private access to the compliance program office | ||
and to preserve the confidentiality of communications and the | ||
anonymity of a person making a compliance report or participating | ||
in a compliance investigation. | ||
Sec. 90.208. MEDICAL ETHICS. The oversight committee shall | ||
ensure that a grant recipient of money under this chapter conduct | ||
any associated research project: | ||
(1) with full consideration for the ethical and | ||
medical implications of the research project; and | ||
(2) in a manner that complies with federal and state | ||
laws applicable to the research project. | ||
Sec. 90.209. PATENT ROYALTIES AND LICENSE REVENUES PAID TO | ||
STATE. (a) The oversight committee shall establish standards to | ||
require each research project awarded money under this chapter to | ||
be subject to an intellectual property agreement that allows the | ||
state to collect royalties, income, and other benefits, including | ||
interest or proceeds resulting from securities and equity | ||
ownership, realized as a result of the research project. | ||
(b) In determining the state's interest in any intellectual | ||
property rights, the oversight committee shall balance the | ||
opportunity of this state to benefit from the patents, royalties, | ||
licenses, and other benefits resulting from basic research, vaccine | ||
development, and clinical trials with the need to ensure that | ||
essential infectious disease research is not unreasonably hindered | ||
by the intellectual property agreement and that the agreement does | ||
not unreasonably remove the incentive on the part of each grant | ||
recipient and associated individuals. | ||
SUBCHAPTER F. COLLABORATIVE RESEARCH OPPORTUNITIES | ||
Sec. 90.251. OPTION TO EXPAND ON RESEARCH FINDINGS. (a) | ||
The consortium shall develop opportunities for a person, regardless | ||
of whether the person is a grant applicant or recipient, to access | ||
and expand on the research findings of: | ||
(1) a finished research project funded by the | ||
consortium under this chapter; or | ||
(2) any research or other work conducted by a person | ||
under this subchapter. | ||
(b) The consortium may establish and maintain an electronic | ||
system through which a person may access information on research | ||
findings described by Subsection (a). | ||
Sec. 90.252. COLLABORATION REQUIREMENTS. (a) The | ||
consortium shall ensure that any research or other work that | ||
expands on research findings described by Section 90.251(a): | ||
(1) proportionally recognizes the contributions made | ||
by each person who participated in the underlying research and in | ||
the new research or other work; and | ||
(2) is subject to the same intellectual property | ||
agreement requirements for a research project under Section 90.209. | ||
(b) A person seeking to expand on research findings | ||
described by Section 90.251(a) must: | ||
(1) submit an application to and receive approval from | ||
the scientific committee; | ||
(2) allow the consortium to conduct the same | ||
evaluation procedures for a grant recipient under Section 90.206; | ||
and | ||
(3) allow the consortium to retain the comprehensive | ||
research findings of any research or other work conducted by the | ||
person to enable other persons to further expand on those research | ||
findings under this subchapter. | ||
SECTION 2. (a) Not later than January 31, 2022, the | ||
appropriate appointing authority shall appoint the members to the | ||
Texas Research Consortium to Cure Infectious Diseases (TRANSCEND) | ||
Oversight Committee as required by Section 90.101, Health and | ||
Safety Code, as added by this Act. The oversight committee may not | ||
take action until a majority of the appointed members have taken | ||
office. | ||
(b) Notwithstanding Section 90.101, Health and Safety Code, | ||
as added by this Act, in making the initial appointments to the | ||
Texas Research Consortium to Cure Infectious Diseases (TRANSCEND) | ||
Oversight Committee under that section: | ||
(1) the governor shall designate: | ||
(A) three members to serve terms expiring January | ||
31, 2024, including one member from the list provided by the speaker | ||
of the house of representatives; and | ||
(B) three members to serve terms expiring January | ||
31, 2026, including two members from the list provided by the | ||
speaker of the house of representatives; and | ||
(2) the lieutenant governor shall designate: | ||
(A) one member to serve a term expiring January | ||
31, 2024; and | ||
(B) two members to serve terms expiring January | ||
31, 2026. | ||
SECTION 3. Notwithstanding Section 90.054, Health and | ||
Safety Code, as added by this Act, the Texas Research Consortium to | ||
Cure Infectious Diseases (TRANSCEND) is not required to submit a | ||
report under that section until January 31, 2023. | ||
SECTION 4. This Act takes effect January 1, 2022, but only | ||
if the constitutional amendment proposed by the 87th Legislature, | ||
Regular Session, 2021, providing for the establishment of the Texas | ||
Research Consortium to Cure Infectious Diseases (TRANSCEND) and | ||
authorizing the issuance of up to $3 billion in general obligation | ||
bonds to fund collaborative research on and development of | ||
infectious disease treatments and cures for humans is approved by | ||
the voters. If that amendment is not approved by the voters, this | ||
Act has no effect. |