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