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HEALTH & SAFETY CODE CHAPTER 102. CANCER PREVENTION AND RESEARCH INSTITUTE OF TEXAS HEALTH & SAFETY CODE CHAPTER 102. CANCER PREVENTION AND RESEARCH INSTITUTE OF TEXAS SUBCHAPTER A. GENERAL PROVISIONS § 102.001. DEFINITIONS. In this chapter: (1) "Institute" means the Cancer Prevention and Research Institute of Texas. (2) "Oversight committee" means the Cancer Prevention and Research Institute of Texas Oversight Committee. (3) "Research and prevention programs committee" means the Cancer Prevention and Research Institute of Texas Scientific Research and Prevention Programs Committee. Acts 1989, 71st Leg., ch. 678, § 1, eff. Sept. 1, 1989. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.002. PURPOSES. The Cancer Prevention and Research Institute of Texas is established to: (1) create and expedite innovation in the area of cancer research and in enhancing the potential for a medical or scientific breakthrough in the prevention of cancer and cures for cancer; (2) attract, create, or expand research capabilities of public or private institutions of higher education and other public or private entities that will promote a substantial increase in cancer research and in the creation of high-quality new jobs in this state; and (3) develop and implement the Texas Cancer Plan. Acts 1989, 71st Leg., ch. 678, § 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 15, § 5.06, eff. Sept. 1, 1991; Acts 1999, 76th Leg., ch. 36, § 1, eff. Sept. 1, 1999. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.003. SUNSET PROVISION. The Cancer 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, 2021. Acts 1989, 71st Leg., ch. 678, § 1, eff. Sept. 1, 1989. Amended by Acts 1991, 72nd Leg., 1st C.S., ch. 17, § 4.24, eff. Nov. 12, 1991; Acts 1999, 76th Leg., ch. 36, § 1, eff. Sept. 1, 1999. Amended by: Acts 2005, 79th Leg., Ch. 1227, § 2.02, eff. September 1, 2005. Acts 2007, 80th Leg., R.S., Ch. 266, § 4.SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE § 102.051. POWERS AND DUTIES. (a) The institute may: (1) make grants to provide funds to public or private persons to implement the Texas Cancer Plan, and may make grants to institutions of learning and to advanced medical research facilities and collaborations in this state for: (A) research into the causes of and cures for all types of cancer in humans; (B) facilities for use in research into the causes of and cures for cancer; (C) research, including translational research, to develop therapies, protocols, medical pharmaceuticals, or procedures for the cure or substantial mitigation of all types of cancer in humans; and (D) cancer prevention and control programs in this state to mitigate the incidence of all types of cancer in humans; (2) support institutions of learning and advanced medical research facilities and collaborations in this state in all stages in the process of finding the causes of all types of cancer in humans and developing cures, from laboratory research to clinical trials and including programs to address the problem of access to advanced cancer treatment; (3) establish the appropriate standards and oversight bodies to ensure the proper use of funds authorized under this chapter for cancer research and facilities development; (4) employ an executive director as determined by the oversight committee; (5) employ necessary staff to provide administrative support; and (6) monitor contracts and agreements authorized by this chapter. (b) The institute shall work to implement the Texas Cancer Plan and continually monitor and revise the Texas Cancer Plan as necessary. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.052. ANNUAL PUBLIC REPORT. (a) The institute shall issue an annual public report outlining the institute's activities, grants awarded, grants in progress, research accomplishments, and future program directions. The report must include: (1) the number and dollar amounts of research and facilities grants; (2) identification of the grant recipients for the reported year; (3) the institute's administrative expenses; (4) an assessment of the availability of funding for cancer research from sources other than the institute; (5) a summary of findings of research funded by the institute, including promising new research areas; (6) an assessment of the relationship between the institute's grants and the overall strategy of its research program; (7) a statement of the institute's strategic research and financial plans; and (8) an estimate of how much cancer has cost the state during the year, including the amounts spent by the state relating to cancer by the child health program, the Medicaid program, the Teacher Retirement System of Texas, and the Employees Retirement System of Texas. (b) The institute shall submit the annual public report to the governor and the legislature. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.053. 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. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.054. GIFTS AND GRANTS. The institute may solicit and accept gifts and grants from any source for the purposes of this chapter. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.055. QUARTERLY MEETINGS. The oversight committee shall hold a public meeting at least once in each quarter of the calendar year, with appropriate notice and with a formal public comment period. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4.SUBCHAPTER C. OVERSIGHT COMMITTEE § 102.101. COMPOSITION OF OVERSIGHT COMMITTEE. (a) The Cancer Prevention and Research Institute of Texas Oversight Committee is the governing body of the institute. (b) The oversight committee is composed of the following 11 members: (1) three members appointed by the governor; (2) three members appointed by the lieutenant governor; (3) three members appointed by the speaker of the house of representatives; (4) the comptroller or the comptroller's designee; and (5) the attorney general or the attorney general's designee. (c) The members of the oversight committee must represent the geographic and cultural diversity of the state. (d) In making appointments to the oversight committee, the governor, lieutenant governor, and speaker of the house of representatives should attempt to include cancer survivors and family members of cancer patients if possible. (e) A person may not be a 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 institute; (2) owns or controls, directly or indirectly, more than a five percent interest in a business entity or other organization receiving money from the institute; or (3) uses or receives a substantial amount of tangible goods, services, or money from the institute, other than reimbursement authorized by this chapter for oversight committee membership, attendance, or expenses. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.102. REMOVAL. (a) It is a ground for removal from the oversight committee that a member: (1) is ineligible for membership under Section 102.101(e); (2) cannot, because of illness or disability, discharge the member's duties for a substantial part of the member's term; or (3) is absent from more than half of the regularly scheduled oversight committee meetings that the member is eligible to attend during a calendar year without an excuse approved by a majority vote of the committee. (b) The validity of an action of the oversight committee is not affected by the fact that it is taken when a ground for removal of a committee member exists. (c) If the executive director has knowledge that a potential ground for removal exists, the executive director 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 executive director shall notify the next highest ranking officer of the oversight committee, who shall then notify the appointing authority and the attorney general that a potential ground for removal exists. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.103. TERMS; VACANCY. (a) Oversight committee members appointed by the governor, lieutenant governor, and speaker of the house serve four-year terms. (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. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.104. OFFICERS. The oversight committee shall select a presiding officer from among its members. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.105. 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. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.106. CONFLICT OF INTEREST. The oversight committee shall adopt conflict-of-interest rules, based on standards applicable to members of scientific review committees of the National Institutes of Health, to govern members of the oversight committee. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.107. POWERS AND DUTIES. The oversight committee shall hire an executive director. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4.SUBCHAPTER D. RESEARCH AND PREVENTION PROGRAMS COMMITTEE § 102.151. SCIENTIFIC RESEARCH AND PREVENTION PROGRAMS COMMITTEE. (a) The Cancer Prevention and Research Institute of Texas Scientific Research and Prevention Programs Committee is composed of the following 18 members: (1) one voting member appointed by the governor who is a physician or licensed health care professional active in the treatment of cancer; (2) one voting member appointed by the lieutenant governor who is a physician or licensed health care professional active in the treatment of cancer; (3) one voting member appointed by the speaker of the house of representatives who is a physician or licensed health care professional active in the treatment of cancer; (4) one voting member appointed by the governor who is a representative of a licensed health care facility that treats a significant number of cancer patients; (5) one voting member appointed by the lieutenant governor who is a representative of a licensed health care facility that treats a significant number of cancer patients; (6) one voting member appointed by the speaker of the house of representatives who is a representative of a licensed health care facility that treats a significant number of cancer patients; (7) one voting member appointed by the governor who is a representative of a voluntary health organization interested in cancer; (8) one voting member appointed by the lieutenant governor who is a representative of a voluntary health organization interested in cancer; (9) one voting member appointed by the speaker of the house of representatives who is a representative of a voluntary health organization interested in cancer; (10) two nonvoting members appointed by the governor representing private or independent institutions of higher education in this state that have demonstrated success and leadership in cancer research; (11) two nonvoting ex officio members appointed by the chancellor of The University of Texas System to represent: (A) The University of Texas Southwestern Medical Center at Dallas; (B) The University of Texas Medical Branch at Galveston; (C) The University of Texas Health Science Center at Houston; (D) The University of Texas Health Science Center at San Antonio; (E) The University of Texas Health Center at Tyler; or (F) The University of Texas M. D. Anderson Cancer Center; (12) one nonvoting ex officio member appointed by the chancellor of The Texas A&M University System to represent: (A) The Texas A&M University System Health Science Center; or (B) the teaching hospital for The Texas A&M Health Science Center College of Medicine; (13) one nonvoting ex officio member appointed by the chancellor of the Texas Tech University System to represent the Texas Tech University Health Sciences Center; (14) one nonvoting ex officio member appointed by the chancellor of the University of Houston System to represent the system; (15) one nonvoting ex officio member appointed by the chancellor of the Texas State University System to represent the system; and (16) one nonvoting ex officio member appointed by the chancellor of the University of North Texas System to represent the system. (b) Individuals appointed to the research and prevention programs committee may be residents of another state. (c) The members of the research and prevention programs committee must represent the geographic and cultural diversity of the state. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.152. TERMS OF RESEARCH AND PREVENTION PROGRAMS COMMITTEE MEMBERS. Members of the research and prevention programs committee serve four-year terms. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.153. EXPENSES. Members of the research and prevention programs committee serve without compensation but are entitled to reimbursement for actual and necessary expenses in attending meetings of the committee or performing other official duties authorized by the presiding officer. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4.SUBCHAPTER E. CANCER PREVENTION AND RESEARCH FUND § 102.201. CANCER PREVENTION AND RESEARCH FUND. (a) The cancer prevention and research fund is a dedicated account in the general revenue fund. (b) The cancer prevention and research fund consists of: (1) patent, royalty, and license fees and other income received under a contract entered into as provided by Section 102.255; (2) appropriations of money to the fund by the legislature; (3) gifts, grants, including grants from the federal government, and other donations received for the fund; and (4) interest earned on the investment of money in the fund. (c) The fund may be used only to pay for: (1) grants for cancer research and for cancer research facilities in this state to realize therapies, protocols, and medical procedures for the cure or substantial mitigation of all types of cancer in humans; (2) the purchase, subject to approval by the institute, of laboratory facilities by or on behalf of a state agency or grant recipient; (3) grants to public or private persons to implement the Texas Cancer Plan; (4) the operation of the institute; and (5) grants for cancer prevention and control programs in this state to mitigate the incidence of all types of cancer in humans. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.202. 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 67, 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, 2008, and may not issue and sell more than $300 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 shall be set out in the proceedings authorizing the bonds. (f) The proceeds of the bonds may be used only to: (1) make grants authorized by Section 67, Article III, Texas Constitution; (2) purchase laboratory facilities approved by the institute; (3) pay costs of operating the institute; or (4) pay the costs of issuing the bonds and related bond administration costs of the Texas Public Finance Authority. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.203. AUTHORIZED USE OF FUNDS. (a) A person awarded money from the cancer prevention and research fund or from bond proceeds under this subchapter may use the money for research consistent with the purpose of this chapter and in accordance with a contract between the person and the institute. (b) Except as otherwise provided by this section, money awarded under this subchapter 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. (c) A person receiving money under this subchapter may not spend more than five percent of the money for indirect costs. (d) Not more than five percent of the money awarded under this subchapter may be used for facility construction purposes during any year. (e) Not more than 10 percent of the money awarded under this subchapter may be used for cancer prevention and control programs during any year. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.204. PREFERENCE FOR TEXAS BUSINESSES. If the Texas Public Finance Authority contracts with a private entity to issue the bonds under this subchapter, the Texas Public Finance Authority shall consider contracting with an entity that has its principal place of business in this state and shall include using a historically underutilized business as defined by Section 2161.001, Government Code. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4.SUBCHAPTER F. PROCEDURE FOR MAKING AWARDS § 102.251. DUTIES OF SCIENTIFIC RESEARCH AND PREVENTION PROGRAMS COMMITTEE. (a) The research and prevention programs committee shall review grant applications and make recommendations to the oversight committee regarding the award of research, therapy development, and clinical trial grants. (b) The ex officio members of the research and prevention programs committee may participate in the review and discussion of grant applications but may not vote on recommendations to the oversight committee. In making recommendations to the oversight committee, the research and prevention programs committee shall give priority to proposals that: (1) could lead to immediate or long-term medical and scientific breakthroughs in the area of cancer prevention or cures for cancer; (2) strengthen and enhance fundamental science in cancer research; (3) ensure a comprehensive coordinated approach to cancer research; (4) are interdisciplinary or interinstitutional; (5) address federal or other major research sponsors' priorities in emerging scientific or technology fields in the area of cancer prevention or cures for cancer; (6) are matched with funds available by a private or nonprofit entity and institution or institutions of higher education; (7) 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; (8) have a demonstrable economic development benefit to this state; (9) enhance research superiority at institutions of higher education in this state by creating new research superiority, attracting existing research superiority from institutions not located in this state and other research entities, or enhancing existing research superiority by attracting from outside this state additional researchers and resources; and (10) expedite innovation and commercialization, attract, create, or expand private sector entities that will drive a substantial increase in high-quality jobs, and increase higher education applied science or technology research capabilities. (c) A member of the research and prevention programs committee may not attempt to use the committee member's official position to influence a decision to approve or award a grant or contract to the committee member's employer. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.252. OVERRIDING RESEARCH AND PREVENTION PROGRAMS COMMITTEE RECOMMENDATIONS. The oversight committee must follow the funding recommendations of the research and prevention programs committee unless two-thirds of the members of the oversight committee vote to disregard a recommendation. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.253. MAXIMUM AMOUNT OF ANNUAL AWARDS. The oversight committee may not award more than $300 million in grants under Subchapter E in a fiscal year. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.254. PERIOD FOR AWARDS. The oversight committee may not award money under Subchapter E before January 1, 2008, or after August 31, 2020. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.255. CONTRACT TERMS. (a) The oversight committee shall negotiate on behalf of the state regarding awarding, by grant, money under this chapter. (b) Before awarding a grant under Subchapter E, the 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 the state the grant money used to pay for the capital improvement, with interest at the rate and according to the other terms provided by the contract; and (ii) share with the state a proportionate amount of any profit realized from the sale; and (2) if, as of a date specified in the contract, the grant recipient has not used grant money awarded under Subchapter E for the purposes for which the grant was intended, the recipient shall repay that amount and any related interest applicable under the contract to the state at the agreed rate and on the agreed terms. (c) The contract must include terms relating to intellectual property rights consistent with the standards developed by the oversight committee under Section 102.256. (d) Before the oversight committee may make any grant of any proceeds of the bonds issued under Subchapter E, the recipient of the grant must have an amount of funds equal to one-half of the grant dedicated to the research that is the subject of the grant request. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.256. PATENT ROYALTIES AND LICENSE REVENUES PAID TO STATE. (a) The oversight committee shall establish standards that require all grant awards to be subject to an intellectual property agreement that allows the state to collect royalties, income, and other benefits realized as a result of projects undertaken with money awarded under Subchapter E. (b) In determining the state's interest in any intellectual property rights, the oversight committee shall balance the opportunity of the state to benefit from the patents, royalties, licenses, and other benefits that result from basic research, therapy development, and clinical trials with the need to ensure that essential medical research is not unreasonably hindered by the intellectual property agreement and that the agreement does not unreasonably remove the incentive on the part of the individual researcher, research team, or institution. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.257. MULTIYEAR PROJECTS. The oversight committee may grant funds for a multiyear project. All the money needed to fund a multiyear project must be awarded in the state fiscal year that the project is approved by the research and prevention programs committee. The institute shall distribute only the money that will be expended during that fiscal year. The remaining money shall be maintained in an escrow account to be distributed by the institute in subsequent years of the project. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.258. PREFERENCE FOR TEXAS SUPPLIERS. The oversight committee shall establish standards to ensure that grant recipients purchase goods and services from suppliers in this state to the extent reasonably possible, in a good faith effort to achieve a goal of more than 50 percent of such purchases from suppliers in this state. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.259. HISTORICALLY UNDERUTILIZED BUSINESSES. The oversight committee shall establish standards to ensure that grant recipients purchase goods and services from historically underutilized businesses as defined by Chapter 2161, Government Code, and any other applicable state law. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.260. PEER REVIEW. The research and prevention programs committee shall require a peer review progress oversight review of each grant recipient to ensure compliance with the terms of the award and to ensure the scientific merit of the research. The research and prevention programs committee shall report to the oversight committee any recommendations for subsequent actions. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4. § 102.261. MEDICAL ETHICS. Any research project that receives money under Subchapter E must: (1) be conducted with full consideration for the ethical and medical implications of the research; and (2) comply with all federal and state laws regarding the conduct of research. Amended by: Acts 2007, 80th Leg., R.S., Ch. 266, § 4.
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