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  H.B. No. 14
 
 
 
 
AN ACT
  relating to reorganizing certain state institutions that provide
  financing for cancer research, including creating the Cancer
  Prevention and Research Institute of Texas, and information about
  certain cancer treatments; granting authority to issue bonds.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Chapter 86, Health and Safety
  Code, is amended to read as follows:
         CHAPTER 86. BREAST CANCER AND LUNG CANCER
         SECTION 2.  Chapter 86, Health and Safety Code, is amended by
  adding Subchapter C to read as follows:
  SUBCHAPTER C. INFORMATION ON ALTERNATIVE TREATMENTS FOR LUNG CANCER
         Sec. 86.101.  PURPOSE. It is the intent of the legislature
  that lung cancer patients have access to a standardized written
  summary, as provided under this subchapter, of medically
  efficacious and viable alternative treatments for lung cancer,
  which may include surgical, radiological, or chemotherapeutic
  treatment or combinations of those treatments.
         Sec. 86.102.  STANDARDIZED WRITTEN SUMMARY. (a) The
  department shall publish a standardized written summary, in
  language a patient can understand, of the advantages,
  disadvantages, risks, and descriptions of all medically
  efficacious and viable alternatives for the treatment of lung
  cancer.
         (b)  The department shall update the summary annually, if
  necessary, to reflect changes in the treatment of lung cancer.
         (c)  The advisory council shall develop the summary.
         Sec. 86.103.  ADVISORY COUNCIL. (a) The lung cancer
  advisory council is appointed by the executive commissioner of the
  Health and Human Services Commission.
         (b)  The lung cancer advisory council consists of the
  following three members:
               (1)  one member who is a physician active in the
  treatment of lung cancer;
               (2)  one member who is an advocate for lung cancer
  patients; and
               (3)  one member of the public who is a survivor of lung
  cancer.
         Sec. 86.104.  DISTRIBUTION OF SUMMARY. (a) Not later than
  the 90th day after the date the department receives the
  standardized written summary from the advisory council, the
  department shall print and make available to all physicians in the
  state sufficient copies of the summary.
         (b)  A physician may distribute the summary to a patient when
  the physician determines in the physician's professional judgment
  that it is in the best interest of the patient to receive a copy of
  the summary.
         Sec. 86.105.  FUNDING. (a) The department may not expend
  general revenue funds for the publication or distribution of the
  standardized written summary.
         (b)  The department may provide technical assistance to the
  advisory council to aid in the development of the summary.
         (c)  The department may accept grants, donations of money or
  materials, and other forms of assistance from private and public
  sources to be used solely for the development and distribution of
  the summary.
         SECTION 3.  Section 86.003(b), Health and Safety Code, is
  amended to read as follows:
         (b)  The advisory council shall include at least one of each
  of the following:
               (1)  a representative of a statewide nonprofit
  organization that is an advocate for breast cancer patients;
               (2)  a representative of a statewide professional
  organization representing the full spectrum of physicians;
               (3)  a physician associated with an institution of
  higher education who specializes in the treatment of breast cancer;
  and
               (4)  a representative of the Cancer Prevention and
  Research Institute of Texas [Cancer Council].
         SECTION 4.  Chapter 102, Health and Safety Code, is amended
  to read as follows:
  CHAPTER 102.  [TEXAS] CANCER PREVENTION AND RESEARCH INSTITUTE OF
  TEXAS [COUNCIL]
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 102.001.  DEFINITIONS [DEFINITION]. 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[, "council"
  means the Texas Cancer Council].
         Sec. 102.002.  PURPOSES [TEXAS CANCER COUNCIL]. The [Texas]
  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 [Council shall develop] and [work to]
  implement the Texas Cancer Plan.
         Sec. 102.003.  SUNSET PROVISION. The Cancer Prevention and
  Research Institute of Texas [Cancer Council] is subject to Chapter
  325, Government Code (Texas Sunset Act). Unless continued in
  existence as provided by that chapter, the institute [council] is
  abolished and this chapter expires September 1, 2021 [2009].
  SUBCHAPTER B. POWERS AND DUTIES OF INSTITUTE
         Sec. 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.
         Sec. 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.
         Sec. 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.
         Sec. 102.054.  GIFTS AND GRANTS. The institute may solicit
  and accept gifts and grants from any source for the purposes of this
  chapter.
         Sec. 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.
  SUBCHAPTER C. OVERSIGHT COMMITTEE
         Sec. 102.101 [102.004]. COMPOSITION OF OVERSIGHT COMMITTEE
  [COUNCIL]. (a)  The Cancer Prevention and Research Institute of
  Texas Oversight Committee is the governing body of the institute.
         (b)  The oversight committee [council] is composed of the
  following 11 members:
               (1)  three members appointed by the governor [the
  chairman of the Texas Board of Health, or a representative
  appointed by the chairman, who serves as an ex officio nonvoting
  member];
               (2)  three members appointed by the lieutenant [one
  physician active in the treatment of cancer, appointed by the]
  governor;
               (3)  three members appointed by the speaker of the
  house of representatives [one physician active in the treatment of
  cancer, appointed by the lieutenant governor];
               (4)  the comptroller or the comptroller's designee [one
  physician active in the treatment of cancer, appointed by the
  speaker of the house of representatives]; and
               (5)  the attorney general or the attorney general's
  designee [one representative of a voluntary health organization
  interested in cancer, appointed by the governor;
               [(6)     one representative of a voluntary health
  organization interested in cancer, appointed by the lieutenant
  governor;
               [(7)     one representative of a voluntary health
  organization interested in cancer, appointed by the speaker of the
  house of representatives;
               [(8)     one representative of a licensed health care
  facility that treats a significant number of cancer patients,
  appointed by the governor;
               [(9)     one representative of a licensed health care
  facility that treats a significant number of cancer patients,
  appointed by the lieutenant governor;
               [(10)     one representative of a licensed health care
  facility that treats a significant number of cancer patients,
  appointed by the speaker of the house of representatives;
               [(11)     one member of the public, appointed by the
  governor;
               [(12)     one member of the public, appointed by the
  lieutenant governor;
               [(13)     one member of the public, appointed by the
  speaker of the house of representatives;
               [(14)     one licensed health care professional active in
  the treatment or control of cancer, other than a physician,
  appointed by the governor;
               [(15)     one licensed health care professional active in
  the treatment or control of cancer, other than a physician,
  appointed by the lieutenant governor; and
               [(16)     one licensed health care professional active in
  the treatment or control of cancer, other than a physician,
  appointed by the speaker of the house of representatives].
         (c)  The members of the oversight committee must represent
  the geographic and cultural diversity of the state.
         (d) [(b)]  In making appointments to the oversight committee 
  [council], 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)  [Sec.   102.0041.     QUALIFICATIONS OF COUNCIL MEMBERS AND
  EMPLOYEES. (a)   In this section, "Texas trade association" means a
  cooperative and voluntarily joined association of business or
  professional competitors in this state designed to assist its
  members and its industry or profession in dealing with mutual
  business or professional problems and in promoting their common
  interest. The term does not include a voluntary health
  organization.
         [(b)]  A person may not be a [public] member of the oversight
  committee [council] 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 [council];
               (2)  owns or controls, directly or indirectly, more
  than a five [10] percent interest in a business entity or other
  organization receiving money from the institute [council]; or
               (3)  uses or receives a substantial amount of tangible
  goods, services, or money from the institute [council], other than
  [compensation or] reimbursement authorized by this chapter [law]
  for oversight committee [council] membership, attendance, or
  expenses.
         [(c)     A person may not be a member of the council and may not
  be a council employee employed in a "bona fide executive,
  administrative, or professional capacity," as that phrase is used
  for purposes of establishing an exemption to the overtime
  provisions of the federal Fair Labor Standards Act of 1938 (29
  U.S.C. Section 201 et seq.) and its subsequent amendments if:
               [(1)     the person is an officer, employee, or paid
  consultant of a Texas trade association in the field of cancer
  control; or
               [(2)     the person's spouse is an officer, manager, or
  paid consultant of a Texas trade association in the field of cancer
  control.
         [(d)     A person may not be a member of the council or act as
  the general counsel to the council or the council's staff if the
  person is required to register as a lobbyist under Chapter 305,
  Government Code, because of the person's activities for
  compensation on behalf of a profession related to the operation of
  the council.
         [(e)     Appointments to the council shall be made without
  regard to the race, color, disability, sex, religion, age, or
  national origin of the appointees.]
         Sec. 102.102.  REMOVAL.  (a) [(f)] It is a ground for
  removal from the oversight committee [council] that a member:
               (1)  [does not have at the time of taking office the
  qualifications required by Section 102.004;
               [(2)     does not maintain during service on the council
  the qualifications required by Section 102.004;
               [(3)]  is ineligible for membership under Section
  102.101(e) [Subsections (b)-(d)];
               (2) [(4)]  cannot, because of illness or disability,
  discharge the member's duties for a substantial part of the member's
  term; or
               (3) [(5)]  is absent from more than half of the
  regularly scheduled oversight committee [council] meetings that
  the member is eligible to attend during a calendar year without an
  excuse approved by a majority vote of the committee [council].
         (b) [(g)]  The validity of an action of the oversight
  committee [council] is not affected by the fact that it is taken
  when a ground for removal of a committee [council] member exists.
         (c) [(h)]  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 [council]
  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
  [council], who shall then notify the appointing authority and the
  attorney general that a potential ground for removal exists.
         Sec. 102.103 [102.005].  TERMS; VACANCY. (a)  Oversight
  committee [Except for the ex officio member of the council,
  council] members appointed by the governor, lieutenant governor,
  and speaker of the house serve four-year [for staggered six-year]
  terms[, with the terms of five members expiring February 1 of each
  even-numbered year].
         (b)  Not later than the 30th day after the date an oversight
  committee member's term expires, the appropriate appointing
  authority shall appoint a replacement.
         (c)  If a vacancy occurs on the oversight committee, the
  appropriate appointing authority shall appoint a successor, in the
  same manner as the original appointment, [a person] to serve for the
  remainder of the unexpired term. The appropriate appointing
  authority shall appoint the successor not later than the 30th day
  after the date the vacancy occurs.
         Sec. 102.104 [102.006].  OFFICERS. The oversight committee
  [governor] shall select a [designate a member of the council, other
  than the ex officio member, as the] presiding officer from among its
  members [of the council to serve in that capacity at the pleasure of
  the governor].
         Sec. 102.105 [102.007].  EXPENSES [COMPENSATION]. [(a)]  A
  member of the oversight committee [council] 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 [council] duties authorized by the
  presiding officer.
         [(b)     A member of the legislature shall be reimbursed from
  the appropriate fund of the legislature. A representative of a
  state agency shall be reimbursed from the funds of the agency the
  person represents. Other members shall be reimbursed from council
  funds.]
         Sec. 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.
         Sec. 102.107.  POWERS AND DUTIES.  The oversight committee
  shall hire an executive director.
  SUBCHAPTER D. RESEARCH AND PREVENTION PROGRAMS COMMITTEE
         Sec. 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.
         Sec. 102.152.  TERMS OF RESEARCH AND PREVENTION PROGRAMS
  COMMITTEE MEMBERS.  Members of the research and prevention programs
  committee serve four-year terms.
         Sec. 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.
  SUBCHAPTER E. CANCER PREVENTION AND RESEARCH FUND
         Sec. 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.
         Sec. 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.
         Sec. 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.
         Sec. 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.
  SUBCHAPTER F.  PROCEDURE FOR MAKING AWARDS
         Sec. 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.
         Sec. 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.
         Sec. 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.
         Sec. 102.254.  PERIOD FOR AWARDS. The oversight committee
  may not award money under Subchapter E before January 1, 2008, or
  after August 31, 2020.
         Sec. 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.
         Sec. 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.
         Sec. 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.
         Sec. 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.
         Sec. 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.
         Sec. 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.
         Sec. 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.
         [Sec.   102.008.     MEETINGS. (a)   The council shall meet at the
  call of the presiding officer.
         [(b)     The council shall develop and implement policies that
  provide the public with a reasonable opportunity to appear before
  the council and to speak on any issue under the jurisdiction of the
  council.
         [Sec.   102.009.     POWERS AND DUTIES OF COUNCIL. (a)   The
  council shall:
               [(1)  work to implement the Texas Cancer Plan;
               [(2)     continually monitor and revise the Texas Cancer
  Plan as necessary;
               [(3)     promote the development and coordination of
  effective and efficient statewide public and private policies,
  programs, and services related to cancer; and
               [(4)     encourage cooperative, comprehensive, and
  complementary planning among the public, private, and volunteer
  sectors involved in cancer research, prevention, detection, and
  treatment.
         [(b)  The council may:
               [(1)  employ an executive director;
               [(2)     appoint advisory committees necessary to
  implement the Texas Cancer Plan and employ necessary staff to
  provide administrative support;
               [(3)     monitor contracts and agreements for cancer
  programs authorized by this chapter;
               [(4)  conduct necessary studies and surveys;
               [(5)     accept, transfer, and spend funds made available
  by the federal or state government or by any other public or private
  source, subject to limitations and conditions prescribed by
  legislative appropriation; and
               [(6)     use the existing staff of an appointed official
  or agency to assist the council in performing its duties under this
  chapter.
         [(c)     The Texas Cancer Council and/or its contracted
  projects shall maintain for physicians a listing of available
  continuing medical education courses in pain treatment offered by
  accredited Texas medical and osteopathic schools, hospitals,
  health care facilities, or professional societies or associations
  for physicians.
         [Sec.   102.010.     GRANT PROGRAM. (a)   If funds are available,
  the council may establish a grant program to provide funds to public
  or private persons to implement the Texas Cancer Plan.
         [(b)     The council shall adopt rules governing the submission
  and approval of grant requests and the cancellation of grants.
         [(c)     To receive a grant, a person whose grant request is
  approved must execute an interagency agreement or a contract with
  the council. The contract must require the person receiving the
  grant to perform the services as stated in the approved grant
  request. The contract must contain appropriate provisions for
  program and fiscal monitoring.
         [Sec.   102.011.     STANDARDS OF CONDUCT. The executive
  director or the executive director's designee shall provide to
  members of the council and to council employees, as often as
  necessary, information regarding the requirements for office or
  employment under this chapter, including information regarding a
  person's responsibilities under applicable laws relating to
  standards of conduct for state officers or employees.
         [Sec.   102.012.     CANCER RESOURCE FUND. (a)   The cancer
  resource fund is an account of the general revenue fund.
         [(b)     The legislature may appropriate money deposited to the
  credit of the cancer resource fund only to the council for cancer
  prevention, cancer research, and medical care for cancer victims.
         [(c)     The council shall develop a policy governing the award
  of funds for clinical research that follows scientific peer review
  and approval by the National Cancer Institute of the National
  Institutes of Health or that follows other review procedures that
  are designed to distribute those funds on the basis of scientific
  merit.
         [(d)     Interest earned from the investment of the cancer
  resource fund shall be deposited to the credit of the fund.
         [Sec.   102.013.     TRAINING. (a)   A person who is appointed to
  and qualifies for office as a member of the council may not vote,
  deliberate, or be counted as a member in attendance at a meeting of
  the council until the person completes a training program that
  complies with this section.
         [(b)     The training program must provide the person with
  information regarding:
               [(1)  the legislation that created the council;
               [(2)  the programs operated by the council;
               [(3)  the role and functions of the council;
               [(4)     the rules of the council, with an emphasis on the
  rules that relate to disciplinary and investigatory authority;
               [(5)  the current budget for the council;
               [(6)     the results of the most recent formal audit of the
  council;
               [(7)  the requirements of:
                     [(A)     the open meetings law, Chapter 551,
  Government Code;
                     [(B)     the public information law, Chapter 552,
  Government Code;
                     [(C)     the administrative procedure law, Chapter
  2001, Government Code; and
                     [(D)     other laws relating to public officials,
  including conflict of interest laws; and
               [(8)     any applicable ethics policies adopted by the
  council or the Texas Ethics Commission.
         [(c)     A person appointed to the council is entitled to
  reimbursement, as provided by the General Appropriations Act, for
  the travel expenses incurred in attending the training program
  regardless of whether the attendance at the program occurs before
  or after the person qualifies for office.
         [Sec.   102.014.     SEPARATION OF RESPONSIBILITIES. The council
  shall develop and implement policies that clearly separate the
  policymaking responsibilities of the council and the management
  responsibilities of the executive director and the staff of the
  council.
         [Sec.   102.015.     COMPLAINTS. (a)   The council shall maintain
  a file on each written complaint filed with the council. The file
  must include:
               [(1)  the name of the person who filed the complaint;
               [(2)     the date the complaint is received by the
  council;
               [(3)  the subject matter of the complaint;
               [(4)     the name of each person contacted in relation to
  the complaint;
               [(5)     a summary of the results of the review or
  investigation of the complaint; and
               [(6)     an explanation of the reason the file was closed,
  if the council closed the file without taking action other than to
  investigate the complaint.
         [(b)     The council shall provide to the person filing the
  complaint and to each person who is a subject of the complaint a
  copy of the council's policies and procedures relating to complaint
  investigation and resolution.
         [(c)     The council, at least quarterly until final
  disposition of the complaint, shall notify the person filing the
  complaint and each person who is a subject of the complaint of the
  status of the investigation unless the notice would jeopardize an
  undercover investigation.
         [Sec.   102.016.     EQUAL EMPLOYMENT OPPORTUNITY. (a)   The
  executive director or the executive director's designee shall
  prepare and maintain a written policy statement that implements a
  program of equal employment opportunity to ensure that all
  personnel decisions are made without regard to race, color,
  disability, sex, religion, age, or national origin.
         [(b)  The policy statement must include:
               [(1)     personnel policies, including policies relating
  to recruitment, evaluation, selection, training, and promotion of
  personnel, that show the intent of the council to avoid the unlawful
  employment practices described by Chapter 21, Labor Code; and
               [(2)     an analysis of the extent to which the
  composition of the council's personnel is in accordance with state
  and federal law and a description of reasonable methods to achieve
  compliance with state and federal law.
         [(c)  The policy statement must:
               [(1)  be updated annually;
               [(2)     be reviewed by the state Commission on Human
  Rights for compliance with Subsection (b)(1); and
               [(3)  be filed with the governor's office.
         [Sec.   102.017.     TEXANS CONQUER CANCER ACCOUNT. (a)   The
  Texans Conquer Cancer account is a separate account in the general
  revenue fund. The account is composed of:
               [(1)     money deposited to the credit of the account
  under Section 502.2735, Transportation Code; and
               [(2)  gifts, grants, and donations.
         [(b)     The council administers the account. The council may
  spend money credited to the account only to:
               [(1)     make grants to nonprofit organizations that
  provide support services for cancer patients and their families;
  and
               [(2)  defray the cost of administering the account.
         [(c)  The council:
               [(1)     may accept gifts, donations, and grants from any
  source for the benefit of the account; and
               [(2)     by rule shall establish guidelines for spending
  money credited to the account.
         [Sec.   102.018.     TEXANS CONQUER CANCER ADVISORY COMMITTEE.
  (a)   The council shall appoint a seven-member Texans Conquer Cancer
  advisory committee.
         [(b)  The committee shall:
               [(1)     assist the council in establishing guidelines for
  the expenditure of money credited to the Texans Conquer Cancer
  account; and
               [(2)     review and make recommendations to the council on
  applications submitted to the council for grants funded with money
  credited to the Texans Conquer Cancer account.
         [(c)     Members of the committee serve without compensation
  and are not entitled to reimbursement for expenses. Each member
  serves a term of four years, with the terms of three or four members
  expiring on January 31 of each odd-numbered year.
         [(d)     Section 2110.008, Government Code, does not apply to
  the committee.]
         SECTION 5.  Section 504.017, Labor Code, is amended to read
  as follows:
         Sec. 504.017.  FEDERAL AND STATE FUNDED TRANSPORTATION
  ENTITIES.  An entity is eligible to participate under Section
  504.016 or Chapter 791 or 2259, Government Code, if the entity
  provides transportation subsidized in whole or in part by and
  provided to clients of:
               (1)  the [Texas] Department of Assistive and
  Rehabilitative Services [on Aging];
               (2)  the Department of State Health Services [Texas
  Commission on Alcohol and Drug Abuse];
               (3)  the Cancer Prevention and Research Institute of
  Texas [the Texas Commission for the Blind];
               (4)  [the Texas Cancer Council;
               [(5)     the Texas Commission for the Deaf and Hard of
  Hearing;
               [(6)]  the Texas Department of Housing and Community
  Affairs;
               (5) [(7)]  the Health and [Texas Department of] Human
  Services Commission;
               (6) [(8)]  the [Texas] Department of Aging and
  Disability Services [Mental Health and Mental Retardation];
               [(9)  the Texas Rehabilitation Commission;] or
               (7) [(10)]  the Texas Youth Commission.
         SECTION 6.  Section 504.620, Transportation Code, is amended
  to read as follows:
         Sec. 504.620.  TEXANS CONQUER CANCER LICENSE PLATES. (a)  
  The department shall issue specialty license plates that include
  the words "Texans Conquer Cancer." The department shall design the
  license plates in consultation with the Cancer Prevention and
  Research Institute of Texas [Cancer Council].
         (b)  After deduction of the department's administrative
  costs, the remainder of the fee for issuance of the license plates
  shall be deposited to the credit of the cancer prevention and
  research fund [Texans Conquer Cancer account] established by
  Section 102.201 [102.017], Health and Safety Code.
         SECTION 7.  Section 86.011(c), Health and Safety Code, is
  repealed.
         SECTION 8.  (a) Not later than December 1, 2007, the
  appropriate appointing authority shall appoint the members to the
  Cancer Prevention and Research Institute of Texas Oversight
  Committee as required by Section 102.101, Health and Safety Code,
  as added by this Act. The oversight committee may not take action
  until a majority of the appointed members have taken office.
         (b)  Not later than December 1, 2007, the governor and the
  other appointing authorities specified by Section 102.151, Health
  and Safety Code, as added by this Act, shall appoint the members to
  the Cancer Prevention and Research Institute of Texas Scientific
  Research and Prevention Programs Committee as required by that
  section. The research and prevention programs committee may not
  take action until a majority of the appointed members have taken
  office.
         SECTION 9.  (a)  On the date on which a majority of the
  initial appointed members of the Cancer Prevention and Research
  Institute of Texas Oversight Committee have taken office, the Texas
  Cancer Council is dissolved and all powers, duties, obligations,
  rights, contracts, leases, records, property, and unspent and
  unobligated appropriations and other funds of the Texas Cancer
  Council are transferred to the Cancer Prevention and Research
  Institute of Texas.
         (b)  The reorganization of the Texas Cancer Council into the
  Cancer Prevention and Research Institute of Texas does not affect
  the validity of a right, privilege, or obligation accrued, a
  contract or acquisition made, any liability incurred, a permit or
  license issued, any penalty, forfeiture, or punishment assessed, a
  rule adopted, a proceeding, investigation, or remedy begun, a
  decision made, or other action taken by or in connection with the
  Texas Cancer Council.
         (c)  All rules, policies, procedures, and decisions of the
  Texas Cancer Council are continued in effect as rules, policies,
  procedures, and decisions of the Cancer Prevention and Research
  Institute of Texas until superseded by a rule or other appropriate
  action of the Cancer Prevention and Research Institute of Texas.
         (d)  Any action or proceeding before the Texas Cancer Council
  is transferred without change in status to the Cancer Prevention
  and Research Institute of Texas, and the Cancer Prevention and
  Research Institute of Texas assumes, without a change in status,
  the position of the Texas Cancer Council in any action or proceeding
  to which the Texas Cancer Council is a party.
         (e)  An employee of the Texas Cancer Council employed on the
  effective date of this Act automatically becomes an employee of the
  Cancer Prevention and Research Institute of Texas to exercise the
  powers and perform the duties transferred under this section. The
  executive director of the Texas Cancer Council serving on the
  effective date of this Act does not automatically become the
  executive director of the Cancer Prevention and Research Institute
  of Texas. To become the executive director of the Cancer Prevention
  and Research Institute of Texas, a person must apply for the
  position and the person's employment in that capacity must be
  approved by the oversight committee.
         (f)  A fund, foundation, or account administered by the Texas
  Cancer Council is not considered to be abolished and re-created by
  this Act but is considered to be transferred to the Cancer
  Prevention and Research Institute of Texas.
         (g)  Until the date the Texas Cancer Council is reorganized
  into the Cancer Prevention and Research Institute of Texas as
  provided by Subsection (a) of this section, the Texas Cancer
  Council shall continue to exercise the powers and perform the
  duties assigned to the Texas Cancer Council under the law as it
  existed immediately before the effective date of this Act or as
  modified by another Act of the 80th Legislature, Regular Session,
  2007, that becomes law, and the former law is continued in effect
  for that purpose.
         SECTION 10.  On or after the effective date of this Act, any
  amount remaining in or payable to the credit of the cancer resource
  fund under Section 102.012, Health and Safety Code, and the Texans
  Conquer Cancer account under Section 102.017, Health and Safety
  Code, as those sections existed before repeal by this Act, shall be
  transferred to the credit of the cancer prevention and research
  fund established under Section 102.201, Health and Safety Code, as
  added by this Act.
         SECTION 11.  This Act takes effect on the date on which the
  constitutional amendment proposed by the 80th Legislature, Regular
  Session, 2007, establishing the Cancer Prevention and Research
  Institute of Texas is approved by the voters. If that amendment is
  not approved by the voters, this Act has no effect.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 14 was passed by the House on May 11,
  2007, by the following vote:  Yeas 68, Nays 24, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 14 was passed by the Senate on May 22,
  2007, by the following vote:  Yeas 25, Nays 6.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor