Monitoring the Session

HB 185

Thompson Brain Research Bill’s Fund Needs No Further Appropriation

Died in committee

Verdict: Smells

SmellsInitial review
Rep. Senfronia ThompsonDHouse 141
Why it's charged
New fee, fund, board or appointees

THE TEXT

“The institute may use money in the fund as authorized by this chapter without further legislative appropriation.”

Bill text, introduced version (I)

The bill builds a new agency with its own dedicated fund that the institute can spend without returning to the Legislature each budget cycle. The caption honestly says it creates an institute, so the new body is advertised.

New fee, fund, board or appointees

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the creation of the Mental Health and Brain Research Institute of Texas.

Caption from analyzed text · version I.

Summary

Up to $300M a year in grants, if voters approve the companion amendment.

The bill creates a new state agency, the Mental Health and Brain Research Institute of Texas, with a nine-member appointed oversight committee, a paid staff led by a chief executive officer, and several other committees. The institute can give up to $300 million a year in grants to universities, research facilities, and public or private persons for mental health and brain research, paid from a new special fund it can spend without further legislative appropriation. Grant recipients must put up matching money, follow conflict-of-interest and reporting rules, and share patent royalties with the state, and the whole Act takes effect December 1, 2025, only if voters approve a companion constitutional amendment.

Labels

Labels: ZOMBIE BILL. Died 2 times: 88R HB 15 (Did not pass) and this bill (Died in committee). Checked against 88R only.DO-OVER. Reworked text of a bill filed before that died: 88R HB 15 (Did not pass). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.DOORSTOP: 9,896 WORDS. The bill as filed runs 9,896 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).NEVER GOT A HEARING. Filed Nov 12, 2024 and referred to the House Higher Education committee. No public hearing. The bill died.

Receipt

The receipt

89R-HB185 · 2024-11-12

SOLD BY

+ 1 coauthor

ITEM

relating to the creation of the Mental Health and Brain Research Institute of Texas.

WHAT IT DOES

Up to $300M a year in grants, if voters approve the companion amendment.

The bill creates a new state agency, the Mental Health and Brain Research Institute of Texas, with a nine-member appointed oversight committee, a paid staff led by a chief executive officer, and several other committees. The institute can give up to $300 million a year in grants to universities, research facilities, and public or private persons for mental health and brain research, paid from a new special fund it can spend without further legislative appropriation. Grant recipients must put up matching money, follow conflict-of-interest and reporting rules, and share patent royalties with the state, and the whole Act takes effect December 1, 2025, only if voters approve a companion constitutional amendment.

CHARGES

[x] NEW FEE, FUND, BOARD OR APPOINTEESanalysis confidence 85%

THE TEXT

“The institute may use money in the fund as authorized by this chapter without further legislative appropriation.”

Bill text, introduced version (I)

The bill builds a new agency with its own dedicated fund that the institute can spend without returning to the Legislature each budget cycle. The caption honestly says it creates an institute, so the new body is advertised.

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Filed
  2. Read first time
  3. Referred to Higher Education
FILED UNDER

GOVERNMENT GROWTH UNDER A CONSERVATIVE BANNER

THE TEXT

“The oversight committee shall hire a chief executive officer.”

Bill text, introduced version (I)

The bill creates a new state agency with a chief executive officer, a chief compliance officer, staff, and multiple appointed committees.

TAXPAYER-FUNDED NGOS

THE TEXT

“may award grants to institutions of learning, advanced medical research facilities, public or private persons, and collaborations in this state”…

Bill text, introduced version (I)

State money from the new fund can be granted to private persons and private entities as well as public institutions.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 18, 2024 to Oct 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texas Trial Lawyers Association PAC$40,000.00

Texas Trial Lawyers Association PAC

$40,000.00

Cash
$40,000.00
Paid by others
$0.00
Total
$40,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 16, 2024 to Sep 29, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100991261, 101012357, 101035257, 101068783.

Texas REALTORS Political Action Committee$22,500.00

Texas REALTORS Political Action Committee

$22,500.00

Cash
$22,500.00
Paid by others
$0.00
Total
$22,500.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 31, 2024 to Oct 7, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100991261, 101012357, 101035257, 101068783.

Texas Sands PAC$14,000.00

Texas Sands PAC

$14,000.00

Cash
$14,000.00
Paid by others
$0.00
Total
$14,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Jun 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101011899, 101012357, 101035257.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texas Trial Lawyers Association PAC

$40,000.00

Cash
$40,000.00
Paid by others
$0.00
Total
$40,000.00

Also funds 137 other sitting lawmakers.

Derived recipient stock · Jul 24, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 16, 2024 to Sep 29, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100991261, 101012357, 101035257, 101068783.

×

Texas REALTORS Political Action Committee

$22,500.00

Cash
$22,500.00
Paid by others
$0.00
Total
$22,500.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Oct 31, 2024 to Oct 7, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100991261, 101012357, 101035257, 101068783.

×

Texas Sands PAC

$14,000.00

Cash
$14,000.00
Paid by others
$0.00
Total
$14,000.00

Also funds 121 other sitting lawmakers.

Derived recipient stock · Jul 3, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Dec 4, 2024 to Jun 22, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101011899, 101012357, 101035257.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 15

by Rep. Senfronia Thompson, same lead author · Did not pass · reworked

Introduced text

Last action, Apr 11, 2023: Received from the House

Relating to the creation of the Mental Health and Brain Research Institute of Texas.

Caption, 88R bill history

Sources

Texas House · Filed Nov 12, 2024

02/27/2025 H Referred to Higher Education: Feb 27 2025 11:13AM

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors

House committee · Higher Education · Final status: Died in committee

Enabling legislation for HJR 24.

Subjects

Education--Higher--Health Institutions

Education--Higher--Institutions & Programs

Electronic Information Systems

Governor

Mental Health & Substance Abuse

State Agencies, Boards & Commissions--Newly Proposed

State Finances--Management & Control

AUDITS & AUDITORS

HISTORICALLY UNDERUTILIZED BUSINESSES

LIEUTENANT GOVERNOR

RESEARCH & DEVELOPMENT

SPEAKER OF THE HOUSE

BAYLOR COLLEGE OF MEDICINE

DELL MEDICAL SCHOOL AT THE UNIVERSITY OF TEXAS AT AUSTIN

RICE UNIVERSITY (U699W)

SAM HOUSTON STATE UNIVERSITY COLLEGE OF OSTEOPATHIC MEDICINE

TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER

TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER AT EL PASO

UNIVERSITY OF HOUSTON COLLEGE OF MEDICINE

UNIVERSITY OF NORTH TEXAS HEALTH SCIENCE CENTER AT FT. WORTH

UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT HOUSTON

UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT SAN ANTONIO

UNIVERSITY OF TEXAS HEALTH SCIENCE CENTER AT TYLER

UNIVERSITY OF TEXAS MD ANDERSON CANCER CENTER

UNIVERSITY OF TEXAS MEDICAL BRANCH AT GALVESTON

UNIVERSITY OF TEXAS RIO GRANDE VALLEY SCHOOL OF MEDICINE

UNIVERSITY OF TEXAS SOUTHWESTERN MEDICAL CENTER

AUDITOR, STATE

HEALTH & HUMAN SERVICES COMMISSION

MENTAL HEALTH & BRAIN RESEARCH INSTITUTE OF TEXAS (VK87V)

TREASURY SAFEKEEPING TRUST COMPANY, TEXAS

Text

The text as introduced · 9,896 words

89R241 MPF-F

By: Thompson
H.B. No. 185

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Mental Health and Brain Research

Institute of Texas.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle H, Title 3, Education Code, is amended

by adding Chapter 157 to read as follows:

CHAPTER 157. MENTAL HEALTH AND BRAIN RESEARCH INSTITUTE OF TEXAS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 157.001. DEFINITIONS. In this chapter:

(1) "Institute" means the Mental Health and Brain

Research Institute of Texas.

(2) "Oversight committee" means the Mental Health and

Brain Research Institute of Texas Oversight Committee.

(3) "Peer review committee" means the Mental Health

and Brain Research Institute of Texas Peer Review Committee.

(4) “Program integration committee” means the Mental

Health and Brain Research Institute of Texas Program Integration

Committee.

(5) "Research plan" means the Texas Mental Health and

Brain Health Research Plan developed by the institute.

Sec. 157.002. PURPOSES. The Mental Health and Brain

Research Institute of Texas is established to:

(1) create and expedite innovation in mental health

and brain research to improve the health of residents of this state,

enhance the potential for a medical or scientific breakthrough in

mental health and brain-related sciences and biomedical research,

and enhance the mental health and brain research superiority of

this state;

(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 mental health and brain research, strategies for

prevention of mental health issues and brain-related diseases,

mental health and brain health initiatives, 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 mental

health and brain health research.

Sec. 157.003. STATE AUDITOR. Nothing in this chapter

limits the authority of the state auditor under Chapter 321,

Government Code, or other law.

SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE

Sec. 157.051. POWERS AND DUTIES. (a) The institute:

(1) may award grants to institutions of learning,

advanced medical research facilities, public or private persons,

and collaborations 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:

(i) the causes of, the means of prevention

of, the treatment and rehabilitation of, and the cures for mental

health issues and human brain-related diseases, syndromes,

disorders, dysfunctions, injuries, developmental issues,

neurological health issues, behavioral health issues, and

substance use disorders and other addictions; and

(ii) any other issues affecting mental

health and the human brain, including issues that directly or

indirectly affect or are affected by mental health or the brain or

brain health, such as the gut microbiome, nutrition, and the spinal

cord or nervous system, that the peer review committee and the

oversight committee approve;

(C) research, including translational research,

to develop therapies, protocols, medical pharmaceuticals, or

procedures for the cure or substantial mitigation of all types of

human brain diseases and disorders;

(D) support for institutions of learning,

advanced medical research facilities, public or private persons,

and collaborations in this state in conducting the research subject

to the grant award, including in developing programs to address

access to advanced treatment of mental health issues and brain

diseases or disorders;

(E) facilities, equipment, supplies, salaries,

benefits, and other costs related to mental health and brain

research; and

(F) prevention programs and strategies to

mitigate the incidence of detrimental health impacts on mental

health or the brain;

(2) shall collaborate with relevant state agencies,

coordinating councils, and consortiums to enhance mental health and

brain-related health care and research;

(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

administrative support to the institute;

(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

services;

(6) shall monitor grant contracts authorized by this

chapter and ensure each grant recipient complies with the terms and

conditions of the contract;

(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, its employees, and its committee members

appointed under this chapter with all laws and rules governing the

peer review process and conflicts of interest; and

(9) shall create a statewide research and clinical

data registry for mental health and brain research.

(b) The institute shall implement and monitor the research

plan and revise the plan as necessary.

Sec. 157.052. 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 incidents of noncompliance to the oversight

committee.

(c) The chief executive officer may hire any other officer

position the chief executive officer determines necessary for

efficient operation of the institute.

Sec. 157.053. ANNUAL PUBLIC REPORT; INTERNET POSTING. Not

later than January 31 of each year, the institute shall prepare and

submit to the governor, the lieutenant governor, the speaker of the

house of representatives, and the 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

recipient;

(3) any research accomplishments a grant recipient or

the recipient's partners achieved during the preceding state fiscal

year;

(4) an overview summary of the institute's most recent

audited financial statement;

(5) an assessment of the relationship between the

institute's grants and the strategy of its research program;

(6) a statement of the institute's strategic research

plans;

(7) an estimate of the financial cost to this state of

mental health issues and brain disease during the most recent state

fiscal year for which data is available, including the amounts this

state spent related to mental health issues and brain disease

through the Medicaid program, 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 conflicts of interest requiring

recusal under this chapter or rules adopted under this chapter;

(B) any unreported conflicts of interest

confirmed by an investigation conducted under Section 157.254,

including any institute actions regarding an unreported conflict of

interest and subsequent investigation; and

(C) any waivers granted through the process

established under Section 157.253; and

(10) the institute's future direction.

Sec. 157.054. 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

financial audit and the financial practices of the institute.

Sec. 157.055. GRANT RECORDS; AUDIT OF ELECTRONIC GRANT

MANAGEMENT SYSTEM. (a) The institute shall maintain complete

records of:

(1) the review of each grant application submitted to

the institute, including the score the peer review committee

assigns to each reviewed grant application in accordance with rules

adopted under Section 157.302;

(2) each grant recipient's financial reports,

including the amount of matching money dedicated to the research

specified for the grant award;

(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

any conflict of interest; and

(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

date of issuance.

(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. 157.056. GIFTS AND GRANTS. The institute may solicit

and accept gifts and grants from any source for the purposes of this

chapter.

Sec. 157.057. 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. 157.058. 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 reporting incidents of noncompliance to the oversight

committee.

(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 that each grant

application recommendation included on the list submitted by the

program integration committee under Section 157.302(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

application;

(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 157.302(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

submit to the institute; and

(2) notify the general counsel of the institute 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 warranted.

(f) The chief compliance officer shall establish procedures

for investigating allegations of fraud, waste, or abuse of state

resources against oversight committee members, institute employees

or contractors, grant applicants, or grant recipients. The

procedures must include:

(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

submitting a compliance report related to fraud, waste, or abuse or

participating in a compliance investigation.

SUBCHAPTER C. OVERSIGHT COMMITTEE

Sec. 157.101. 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.

(c) The oversight committee members must represent the

geographic and cultural diversity of this state.

(d) In making appointments to the oversight committee, the

governor, lieutenant governor, and speaker of the house of

representatives:

(1) must each appoint at least one person who is a

physician or a scientist with extensive experience working with

mental health issues or brain disease or in the field of public

health; and

(2) should attempt to include persons affected by

mental health issues or brain disease or family members or

caregivers of mental health or brain disease patients.

(e) A person may not be an oversight committee member if the

person or the person's spouse:

(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. 157.102. REMOVAL. (a) It is a ground for removal from

the oversight committee that a member:

(1) is ineligible for membership under Section

157.101(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 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 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 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 exists.

Sec. 157.103. TERMS; VACANCY. (a) Oversight committee

members appointed by the governor, lieutenant governor, and speaker

of the house serve at the pleasure of the appointing official 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 official shall appoint a successor in the

same manner as the original appointment to serve for the remainder

of the unexpired term. The appropriate appointing official shall

appoint the successor not later than the 30th day after the date the

vacancy occurs.

Sec. 157.104. 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

consecutive terms.

(c) The oversight committee shall:

(1) establish and approve duties and responsibilities

for officers of the committee; and

(2) develop and implement policies that distinguish

the responsibilities of the oversight committee and the committee's

officers from the responsibilities of the chief executive officer

and institute employees.

Sec. 157.105. EXPENSES. An oversight committee member 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. 157.106. 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

discuss issues related to:

(1) managing, acquiring, or selling securities or

other revenue-sharing obligations realized under the standards

established as required by Section 157.305; and

(2) an ongoing compliance investigation into issues

related to fraud, waste, or abuse of state resources.

Sec. 157.107. POWERS AND DUTIES. (a) The oversight

committee shall:

(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, the

employee, or the 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) making personal investments or holding a financial

interest that could reasonably create a substantial conflict

between the member's or employee's private interest and the member's

or employee's official duties;

(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

duties in favor of another;

(6) leasing, directly or indirectly, any property,

capital equipment, employee, or service to any entity that receives

a grant from the institute;

(7) submitting a grant application for funding by the

institute;

(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

recipient.

Sec. 157.108. RULEMAKING AUTHORITY. The oversight

committee may adopt rules to administer this chapter.

Sec. 157.109. FINANCIAL STATEMENT REQUIRED. Each oversight

committee member shall file with the chief compliance officer a

verified financial statement complying with Sections 572.022

through 572.0252, Government Code, as required of a state officer

by Section 572.021, Government Code.

SUBCHAPTER D. OTHER INSTITUTE COMMITTEES

Sec. 157.151. 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 of the peer

review committee experts in fields related to mental health or the

brain, including research, health care, disease treatment and

prevention, and other study areas and 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

committee members.

(c) The oversight committee shall adopt rules regarding the

qualifications required of a trained patient advocate committee

member for a peer review committee. The rules must require the

trained patient advocate to successfully complete science-based

training.

(d) A peer review committee member may receive an honorarium

and may be reimbursed for travel expenses incurred in conducting

committee business. 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

that change.

(f) A peer review committee member appointed under this

chapter may not serve on the board of directors or other governing

board of an entity receiving a grant from the institute.

(g) Peer review committee members serve for terms as

determined by the chief executive officer.

Sec. 157.152. PROGRAM INTEGRATION COMMITTEE. (a) The

institute shall establish a program integration committee with the

duties assigned under this chapter.

(b) The program integration committee is composed of:

(1) the institute's chief executive officer, who shall

serve 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 of the Health and Human

Services Commission or the executive commissioner's designee.

Sec. 157.153. HIGHER EDUCATION ADVISORY COMMITTEE. (a)

The higher education advisory committee is composed of the

following members:

(1) one member appointed by the president of Baylor

College of Medicine;

(2) one member appointed by the president of Texas A&M

Health;

(3) one member appointed by the president of Texas

Tech University Health Sciences Center;

(4) one member appointed by the president of Texas

Tech University Health Sciences Center at El Paso;

(5) one member appointed by the president of The

University of Texas Southwestern Medical Center;

(6) one member appointed by the president of The

University of Texas Medical Branch at Galveston;

(7) one member appointed by the president of The

University of Texas Health Science Center at Houston;

(8) one member appointed by the president of The

University of Texas Health Science Center at San Antonio;

(9) one member appointed by the president of The

University of Texas at Tyler Health Science Center;

(10) one member appointed by the dean of Dell Medical

School at The University of Texas at Austin;

(11) one member appointed by the president of The

University of Texas M. D. Anderson Cancer Center;

(12) one member appointed by the dean of The

University of Texas Rio Grande Valley School of Medicine;

(13) one member appointed by the president of

University of North Texas Health Science Center at Fort Worth;

(14) one member appointed by the president of Rice

University;

(15) one member appointed by the dean of University of

Houston College of Medicine; and

(16) one member appointed by the dean of Sam Houston

State University College of Osteopathic Medicine.

(b) The oversight committee by majority vote may increase

the membership of the higher education advisory committee to

include appointees representing institutions of higher education

not listed in Subsection (a).

(c) The higher education advisory committee shall advise

the oversight committee on issues, opportunities, the role of

higher education, and other subjects involving mental health or

brain research.

Sec. 157.154. AD HOC ADVISORY COMMITTEE. (a) The oversight

committee, as necessary, may create additional ad hoc advisory

committees of experts to advise the oversight committee on issues

relating to mental health research, brain research, brain health,

brain-related diseases, spinal cord injuries, traumatic brain

injuries, mental and behavioral health issues, including substance

abuse disorders and other addictions, or other brain- or

neurological-related issues.

(b) Ad hoc committee members serve for the terms determined

by the oversight committee.

Sec. 157.155. EXPENSES. Members of the higher education

advisory committee or any ad hoc advisory committee appointed under

this subchapter 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 officer, including travel expenses.

SUBCHAPTER E. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH FUND

Sec. 157.201. MENTAL HEALTH AND BRAIN INSTITUTE RESEARCH

FUND. (a) In this subchapter, "fund" means the Mental Health and

Brain Institute 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.

(b) The fund consists of:

(1) money transferred to the fund under Section 68,

Article III, Texas Constitution;

(2) money the legislature appropriates, credits, or

transfers to the fund;

(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 entered into as provided by Section

157.304; and

(5) investment earnings and interest earned on amounts

credited to the fund.

(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 mental health and brain

research, research facilities, and research opportunities:

(A) for the prevention, treatment, and

rehabilitation of mental and behavioral health diseases and other

issues and substance use disorders and other addictions, and the

mitigation of the incidence of detrimental health impacts on mental

health or the brain; and

(B) to develop therapies, protocols, medical

pharmaceuticals, or procedures for the cure or substantial

mitigation of brain diseases or disorders;

(2) the purchase, construction, or renovation,

subject to approval by the institute, of research facilities by or

for a state agency or grant recipient; and

(3) the operation of the institute.

Sec. 157.202. 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

with this section.

(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 purposes of investment.

(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

economic cycle.

(e) The trust company has any power necessary to accomplish

the purposes of managing and investing the assets of the fund. In

managing the assets of the fund, 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 assets of the fund rather

than a single investment.

(f) The expenses of managing the fund shall be paid from the

fund.

(g) The trust company annually shall provide to the

institute and the oversight committee a written report on the

investments of the fund.

(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

the policy.

(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

by Subsection (d).

(j) The trust company shall disburse money from the fund as

directed by the institute. 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. 157.203. 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

institute.

(b) Except as otherwise provided by this section, grant

money awarded under this chapter may be used for authorized

expenses, including:

(1) honoraria;

(2) salaries and benefits;

(3) travel;

(4) conference fees and expenses;

(5) consumable supplies;

(6) operating expenses;

(7) contracted research and development;

(8) capital equipment;

(9) construction or renovation of state or private

facilities; and

(10) reimbursement for participation costs incurred

by brain cancer clinical trial participants, including

transportation, lodging, and any costs reimbursed under the cancer

clinical trial participation program established under Chapter 51,

Health and Safety Code.

(c) A grant recipient awarded money under this chapter for

mental health or brain disease research may not spend more than five

percent of the money for indirect costs. For purposes of this

subsection, "indirect costs" means the expenses of conducting

business that are not readily identified with a particular grant,

contract, project, function, or activity, but 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

for facility purchase, construction, remodel, or renovation

purposes, and those expenditures must benefit mental health or

brain research.

(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 detrimental impacts on mental health or the brain.

SUBCHAPTER F. CONFLICTS OF INTEREST: DISCLOSURE; RECUSAL

Sec. 157.251. 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 members of the

oversight committee, the program integration committee, the peer

review committee, and institute employees.

(b) An oversight committee member, program integration

committee member, peer review committee member, or institute

employee shall recuse themselves, as provided by Section

157.252(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) 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

grant cycle;

(2) serves as an elected or appointed officer of the

entity;

(3) is an employee of or is negotiating future

employment with the entity;

(4) represents the entity;

(5) is a professional associate of a primary member of

the entity's project team;

(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;

or

(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) A person has a financial interest in an entity awarded a

grant or applying for a grant from the institute if the person:

(1) owns or controls, directly or indirectly, an

ownership interest, including sharing in profits, proceeds, or

capital gains, in an entity awarded a grant or applying for a grant

from the institute; or

(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

benefit to the person.

(e) Nothing in this chapter limits the authority of the

oversight committee to adopt additional conflict-of-interest

standards.

Sec. 157.252. 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

157.251 regarding an application before the member for review or

other action, the member shall:

(1) 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) disclose the conflict of interest in an open

meeting of the oversight committee; and

(3) recuse themselves from participating in the

review, discussion, deliberation, and vote on the application and

from accessing information regarding the matter to be decided.

(b) If a peer review committee member has a conflict of

interest described by Section 157.251 regarding an application

before the member's committee for review or other action, the

member shall:

(1) provide written notice to the chief executive

officer of the conflict of interest; and

(2) recuse themselves from participating in the

review, discussion, deliberation, and vote on the application and

from accessing information regarding the matter to be decided.

(c) If an institute employee has a conflict of interest

described by Section 157.251 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

review of the application; and

(3) may not access information regarding the matter to

be decided.

(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

by Section 157.253.

(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 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,

and prohibitions.

(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

process.

Sec. 157.253. 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 presiding officer of the oversight committee a

written statement about the conflict of interest, the exceptional

circumstance requiring the waiver, and any proposed limitations to

the waiver;

(2) require a proposed waiver to be publicly reported

at a meeting of the oversight committee;

(3) require a majority vote of the oversight committee

members present and voting to grant a waiver;

(4) require any waiver granted to be reported annually

to the lieutenant governor, the speaker of the house of

representatives, the governor, and the standing committee of each

house of the legislature with primary jurisdiction over institute

matters; and

(5) require the institute to retain documentation of

each waiver granted.

Sec. 157.254. INVESTIGATION OF UNREPORTED CONFLICTS OF

INTEREST. (a) An oversight committee member, a program

integration committee member, a peer review committee member, or an

institute employee who becomes aware of a potential conflict of

interest described by Section 157.251 that has not been reported

shall immediately notify the chief executive officer of the

potential conflict of interest. On notification, the chief

executive officer shall notify the presiding officer of the

oversight committee and the general counsel, 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 institute's chief executive

officer. The applicant must:

(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 final funding

recommendations for the affected grant cycle to the oversight

committee.

(c) On notification of an alleged conflict of interest under

Subsection (a) or (b), the institute's general counsel shall:

(1) investigate the matter; and

(2) provide to the chief executive officer and

presiding officer of the oversight committee an opinion that

includes:

(A) a statement of facts;

(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 presiding officer of the oversight

committee, 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

presiding officer of the oversight committee, 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. 157.255. FINAL DETERMINATION OF UNREPORTED CONFLICT OF

INTEREST. (a) The chief executive officer or, if applicable, the

presiding officer of the oversight committee shall make a

determination regarding the existence of an unreported conflict of

interest described by Section 157.251 or other impropriety or

self-dealing. The determination must specify any actions to be

taken to address the conflict of interest, impropriety, or

self-dealing, including:

(1) reconsideration of the application; or

(2) referral of the application to another peer review

committee for 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

committee.

(c) The chief executive officer or, if applicable, the

presiding officer of the oversight committee, shall provide written

notice of the final determination, including any further actions to

be taken, to the grant applicant requesting the investigation.

(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

in the action.

SUBCHAPTER G. PROCEDURE FOR AWARDING GRANTS

Sec. 157.301. 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

chapter.

Sec. 157.302. 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

require:

(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

that:

(A) includes documentation on the factors the

program integration committee considered in making the

recommendations;

(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

proposals that:

(i) may lead to immediate or long-term

medical and scientific breakthroughs in the areas of prevention,

treatment, or cures for mental health issues or brain disease;

(ii) strengthen and enhance fundamental

science in mental health or brain research;

(iii) ensure a comprehensive coordinated

approach to mental health or brain research;

(iv) are interdisciplinary or

interinstitutional;

(v) align with state priorities and needs,

including priorities and needs outlined in other state agency

strategic plans, or address federal or other major research

sponsors' priorities in scientific or technological fields in the

area of mental health or brain research;

(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

state;

(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

resources;

(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

plan.

(b) A member of a peer review 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.

(c) A program integration committee member may not discuss a

grant applicant recommendation with an oversight committee member

unless the program integration committee has fulfilled the

requirements of 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

Code.

Sec. 157.303. MULTIYEAR PROJECTS. (a) The oversight

committee may approve the award of grant money for a multiyear

project.

(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 distribute only the money to be

expended during that fiscal year. The institute shall distribute

the remaining grant money as the money is needed in each subsequent

state fiscal year.

Sec. 157.304. CONTRACT TERMS. (a) Before disbursing a

grant 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 portion 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

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) 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 157.305;

(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

spent; and

(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 money and has

dedicated that available money to the research subject to the grant

proposal. The institute shall adopt rules specifying a grant

recipient's obligations under this subchapter. At a minimum, the

rules must:

(1) allow a recipient institution of higher education

or private or independent institution of higher education, as those

terms are defined by Section 61.003, or 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 157.203(c);

(2) specify that:

(A) a grant recipient of more than one grant

award under this chapter may provide matching money certification

at an institutional level;

(B) the recipient of a multiyear grant award may

yearly certify matching money; and

(C) grant money may not be disbursed to the grant

recipient until the annual certification of the matching money has

been approved;

(3) specify that money for certification purposes may

include:

(A) federal funds;

(B) the fair market value of drug development

support provided to the recipient by the National Institutes of

Health or other similar programs;

(C) funds of this state;

(D) funds of other states; and

(E) nongovernmental funds, including private

funds, foundation grants, gifts, and donations;

(4) specify that the following items may not be used

for certification purposes:

(A) in-kind costs;

(B) volunteer services provided to a grant

recipient;

(C) noncash contributions;

(D) preexisting real estate of the grant

recipient, including buildings, facilities, and land;

(E) deferred giving, including a charitable

remainder annuity trust, charitable remainder unitrust, or pooled

income fund; or

(F) any other items determined by the institute;

(5) require the grant recipient's certification to be

included in the grant award contract;

(6) specify that a grant recipient's failure to

provide certification serves as grounds for terminating the grant

award contract;

(7) require a grant 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

request; and

(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

payments to grant recipients.

(d) The oversight committee shall adopt rules to administer

this section.

Sec. 157.305. 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 money awarded under this

chapter.

(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,

research team, or institution.

(c) The oversight committee may authorize the institute to

enter into 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 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 the best interest of this state.

Sec. 157.306. 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

possible.

Sec. 157.307. HISTORICALLY UNDERUTILIZED BUSINESSES. The

oversight committee shall establish standards to ensure grant

recipients purchase goods and services from historically

underutilized businesses as defined by Section 2161.001,

Government Code, and any other applicable state law.

Sec. 157.308. GRANT COMPLIANCE AND PROGRESS EVALUATION.

(a) The institute shall require as a condition of a grant awarded

under this chapter that the grant recipient submit to regular

inspection reviews of the grant project by institute staff to

ensure compliance with the terms of the grant contract and ongoing

progress, including the scientific merit of the research.

(b) The chief executive officer shall report at least

annually to the oversight committee on the progress and continued

merit of the projects awarded grants by the institute.

Sec. 157.309. MEDICAL AND RESEARCH ETHICS. Any project

that is awarded a grant under this chapter must comply with all

applicable federal and state laws regarding the conduct of the

research or prevention project.

Sec. 157.310. PUBLIC INFORMATION; CONFIDENTIAL

INFORMATION. (a) The following information is public information

and may be disclosed under Chapter 552, Government Code:

(1) the applicant's name and address;

(2) the amount of money requested in the applicant's

grant proposal;

(3) the type of mental health or brain research to be

addressed under the proposal; and

(4) any other information the institute designates

with the consent of the grant applicant.

(b) To protect the actual or potential value of information

submitted to the institute by an applicant for or recipient of an

institute grant, the following information submitted by the

applicant or recipient is confidential and is not subject to

disclosure under Chapter 552, Government Code, or any other law:

(1) all information, other than the information

required under Subsection (a), contained in a grant award

application, peer review evaluation, award contract, or progress

report relating to a product, device, or process, the application

or use of the product, device, or process, and all technological and

scientific information, including computer programs, developed

wholly or partly by a grant applicant or recipient, regardless of

whether patentable or capable of being registered under copyright

or trademark laws, that has a potential for being sold, traded, or

licensed for a fee; and

(2) the plans, specifications, blueprints, and

designs, including related proprietary information, of a

scientific research and development facility.

(c) The following information is confidential and not

subject to disclosure under Chapter 552, Government Code:

(1) information that directly or indirectly reveals

the identity of an individual who reports fraud, waste, or abuse of

state resources to the institute's compliance program office, seeks

guidance from the office, or participates in an investigation

conducted under the compliance program;

(2) information that directly or indirectly reveals

the identity of an individual who is alleged to have or may have

planned, initiated, or participated in activities that are the

subject of a report submitted to the office if, after completing an

investigation, the office determines the report to be

unsubstantiated or without merit; and

(3) other information collected or produced in a

compliance program investigation if releasing the information

would interfere with an ongoing compliance investigation.

(d) Subsection (c) does not apply to information related to

an individual who consents to disclosure of the information.

(e) Information made confidential or excepted from public

disclosure by this section may be made available on request and in

compliance with applicable laws and procedures to the following:

(1) a law enforcement agency or prosecutor;

(2) a governmental agency responsible for

investigating the matter that is the subject of a compliance

report, including the Texas Workforce Commission civil rights

division or the federal Equal Employment Opportunity Commission; or

(3) a committee member or institute employee who is

responsible under institutional policy for a compliance program

investigation or for a review of a compliance program

investigation.

(f) A disclosure under Subsection (e) is not a voluntary

disclosure for purposes of Section 552.007, Government Code.

(g) The institute shall post on the institute's Internet

website records that pertain specifically to any gift, grant, or

other consideration provided to the institute, an institute

employee, or a member of the oversight committee, in the employee's

or oversight committee member's official capacity. The posted

information must include each donor's name and the amount and date

of the donor's donation. This section is not applicable to gifts,

fees, honoraria, or other items also excepted under Section 36.10,

Penal Code.

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 Mental Health and

Brain Research Institute of Texas .

SECTION 3. Section 61.003(6), Education Code, is amended to

read as follows:

(6) "Other agency of higher education" means The

University of Texas System, System Administration; The University

of Texas at El Paso Museum; Texas Epidemic Public Health Institute

at The University of Texas Health Science Center at Houston; The

Texas A&M University System, Administrative and General Offices;

Texas A&M AgriLife Research; Texas A&M AgriLife Extension Service;

Rodent and Predatory Animal Control Service (a part of the Texas A&M

AgriLife Extension Service); Texas A&M Engineering Experiment

Station (including the Texas A&M Transportation Institute); Texas

A&M Engineering Extension Service; Texas A&M Forest Service; Texas

Division of Emergency Management; Texas Tech University Museum;

Texas State University System, System Administration; Sam Houston

Memorial Museum; Panhandle-Plains Historical Museum; Cotton

Research Committee of Texas; Texas Water Resources Institute; Texas

A&M Veterinary Medical Diagnostic Laboratory; Mental Health and

Brain Research Institute of Texas; and any other unit, division,

institution, or agency which shall be so designated by statute or

which may be established to operate as a component part of any

public senior college or university, or which may be so classified

as provided in this chapter.

SECTION 4. Section 572.003(c), Government Code, is amended

to read as follows:

(c) The term means a member of:

(1) the Public Utility Commission of Texas;

(2) the Texas Commission on Environmental Quality;

(3) the Texas Alcoholic Beverage Commission;

(4) the Finance Commission of Texas;

(5) the Texas Facilities Commission;

(6) the Texas Board of Criminal Justice;

(7) the board of trustees of the Employees Retirement

System of Texas;

(8) the Texas Transportation Commission;

(9) the Texas Department of Insurance;

(10) the Parks and Wildlife Commission;

(11) the Public Safety Commission;

(12) the Texas Ethics Commission;

(13) the State Securities Board;

(14) the Texas Water Development Board;

(15) the governing board of a public senior college or

university as defined by Section 61.003, Education Code, or of The

University of Texas Southwestern Medical Center, The University of

Texas Medical Branch at Galveston, The University of Texas Health

Science Center at Houston, The University of Texas Health Science

Center at San Antonio, The University of Texas M. D. Anderson Cancer

Center, The University of Texas Health Science Center at Tyler,

University of North Texas Health Science Center at Fort Worth,

Texas Tech University Health Sciences Center, Texas State Technical

College--Harlingen, Texas State Technical College--Marshall, Texas

State Technical College--Sweetwater, or Texas State Technical

College--Waco;

(16) the Texas Higher Education Coordinating Board;

(17) the Texas Workforce Commission;

(18) the board of trustees of the Teacher Retirement

System of Texas;

(19) the Credit Union Commission;

(20) the School Land Board;

(21) the board of the Texas Department of Housing and

Community Affairs;

(22) the Texas Racing Commission;

(23) the State Board of Dental Examiners;

(24) the Texas Medical Board;

(25) the Board of Pardons and Paroles;

(26) the Texas State Board of Pharmacy;

(27) the Department of Information Resources

governing board;

(28) the board of the Texas Department of Motor

Vehicles;

(29) the Texas Real Estate Commission;

(30) the board of directors of the State Bar of Texas;

(31) the Bond Review Board;

(32) the Health and Human Services Commission;

(33) the Texas Funeral Service Commission;

(34) the board of directors of a river authority

created under the Texas Constitution or a statute of this state;

(35) the Texas Lottery Commission; [ or ]

(36) the Cancer Prevention and Research Institute of

Texas ; or

(37) the Mental Health and Brain Research Institute of

Texas .

SECTION 5. (a) Not later than December 31, 2025, the

appropriate appointing authority shall appoint the members to the

Mental Health and Brain Research Institute of Texas Oversight

Committee as required by Section 157.101, Education Code, as added

by this Act. The oversight committee may not act until a majority

of the appointed members have taken office.

(b) Notwithstanding Section 157.101, Education Code, as

added by this Act, in making the initial appointments under that

section, the governor, lieutenant governor, and speaker of the

house of representatives shall, as applicable, designate one member

of the Mental Health and Brain Research Institute of Texas

Oversight Committee appointed by that person to serve a term

expiring January 31, 2027, one member appointed by that person to

serve a term expiring January 31, 2029, and one member appointed by

that person to serve a term expiring January 31, 2031.

(c) The governor shall designate one member to serve as

interim presiding officer for the purpose of calling and presiding

over meetings of the Mental Health and Brain Research Institute of

Texas Oversight Committee until an election is held under Section

157.104, Education Code, as added by this Act.

SECTION 6. If the voters approve the constitutional

amendment proposed by the 89th Legislature, Regular Session, 2025,

requiring the creation of the Mental Health and Brain Research

Institute of Texas, establishing the Mental Health and Brain

Institute Research Fund to provide funding for mental health and

brain research in this state, and transferring state general

revenue to that fund, the Mental Health and Brain Research

Institute of Texas established by Chapter 157, Education Code, as

added by this Act, is eligible to receive funding deposited under

the authority of Section 68, Article III, Texas Constitution, for

any activities conducted by the institute that serve the purposes

of that constitutional provision.

SECTION 7. This Act takes effect December 1, 2025, but only

if the voters approve the constitutional amendment proposed by the

89th Legislature, Regular Session, 2025, requiring the creation of

the Mental Health and Brain Research Institute of Texas,

establishing the Mental Health and Brain Institute Research Fund to

provide funding for mental health and brain research in this state,

and transferring state general revenue to that fund. If that

amendment is not approved by the voters, this Act has no effect.