HBA-MPM C.S.H.B. 2803 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2803 By: George Higher Education 5/7/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Biotechnology is the use of biological processes and organisms to make products or modify plants, animals, or micro-organisms. This technology has produced genetically-improved cotton plants, human insulin produced using recombinant DNA technologies, and a synthetic peptide that has been shown to double the rate of healing in dermal wounds and bone fractures. C.S.H.B. 2803 encourages and provides support for basic research in biotechnology, biogenetics, and directly related disciplines at various institutions to facilitate research in this field. It also specifically requires the Texas Higher Education Coordinating Board (board) to administer this initiative and sets forth an advisory committee to assist the board in administering the initiative. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle H, Title 3, Education Code, by adding Chapter 151, as follows: CHAPTER 151. BIOTECHNOLOGY AND BIOGENETICS RESEARCH INITIATIVE. Sec. 151.001. DEFINITIONS. Defines, for the purpose of this chapter, the following terms: "biotechnology and biogenetics research and development," "board," "eligible program," "faculty member," "initiative," and "medical and dental unit." Sec. 151.002. PURPOSE. Sets forth the purpose of the biotechnology and biogenetics research initiative. Sec. 151.003. ADVISORY COMMITTEE. Establishes a nine-member advisory committee (committee) to assist the Texas Higher Education Coordinating Board (board) in administering this chapter. Provides that three of the nine committee members are appointed by the governor, three by the lieutenant governor, and three by the speaker of the house of representatives. Provides that each member serves at the pleasure of the appointing authority. Provides that a majority of committee members must consist of experts in biotechnology and biogenetics research and development. Sec. 151.004. ADMINISTRATION OF INITIATIVE; PRIORITIES, GUIDELINES, AND PROCEDURES. (a) Requires the board to administer the initiative. Provides that the initiative is a process by which eligible programs are prioritized and recommended for funding. (b) Requires the board, with the assistance of the committee, to develop research and development priorities, guidelines, and procedures to be used by the board in recommending eligible programs for funding. (c) Provides that the priorities, guidelines, and procedures developed by the board must provide for eligible programs to be evaluated based on competitive, peer review analysis; the amount of biotechnology and biogenetics research and development previously conducted by a particular medical and dental unit for which the medical and dental unit received governmental or private grants, contracts, gifts, or endowments; and the availability of funds for an eligible program from government or private sources. SECTION 2. Amends Section 382.002, Local Government Code, to include biotechnology and biogenetics among those projects to be researched by the county research and development authorities to promote scientific research and development and commercialization of research in affiliation with public and private institutions of research, higher education, or health science centers. SECTION 3.Emergency clause. Effective date: upon passage. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2803 differs from the original by conforming to Legislative Council format. The substitute differs from the original in SECTION 1, which amends Subtitle H, Title 3, Education Code, by adding Chapter 151 (Biotechnology and Biogenetics Research Initiative), as follows: Sec. 151.001. The substitute defines "biotechnology and biogenetics research and development," rather than "biotechnology and biogenetics research;" and "board," rather than "coordinating board." The substitute modifies the definitions of "eligible programs" and "faculty member," deletes the definition of "eligible institution," and adds the definition of "medical and dental unit." Sec. 151.002. The substitute modifies the purpose set forth in the original. Sec. 151.003. The substitute sets forth this new section (Advisory Committee), which establishes an advisory committee to assist the Texas Higher Education Coordinating Board (board) in administering this chapter. Please see the Section-by-Section Analysis of this document. Sec. 151.004. Redesignated from Section 151.003 of the original. New title: "Administration of Initiative; Priorities, Guidelines, and Procedures." The substitute deletes all references to the coordinating board in this section of the original (please note that the advisory committee is established in new Section 151.003 of the substitute). The substitute clarifies language in the original bill with respect to the prioritization and recommendation of certain programs for funding; the requirement that the board develop research and development priorities, guidelines, and procedures in recommending the programs for funding; and the criteria by which eligible programs are to be evaluated. Sections 151.004 and 151.005, Education Code, of the original are removed from the substitute. These deleted sections are as follows: Sec. 151.004. FUNDING. Provides that the initiative is funded by appropriations and by gifts, grants, and donations. Requires the comptroller of public accounts (comptroller) to issue warrants to each eligible institution in the amount certified by the board from the available funds. Authorizes the funds to be expended to support the eligible program for which an award is made, and prohibits the funds from being expended for the general support of ongoing research at an eligible institution or for the construction or remodeling of a facility. Sec. 151.005. PROJECT REVIEW. Requires the board to utilize an advisory committee (committee) in administering the fund, the majority of which must be experts in biotechology and biogenetics research. Requires the committee to consist of nine members, with three to be selected by the governor, three by the lieutenant governor, and three by the speaker of the house of representatives. Requires the committee to evaluate the initiative's effectiveness and report its findings to the board and legislature no later than September 1 of each year. Requires the committee to include in its report any recommendations concerning funding allocations and proposals for future funding. The substitute differs from the original in SECTION 3 by replacing the original's short emergency clause with the long emergency clause.