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          AN ACT
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        relating to the research, collection, and use of adult stem cells. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  Subtitle H, Title 3, Education Code, is amended  | 
      
      
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        by adding Chapter 156 to read as follows: | 
      
      
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        CHAPTER 156.  ADULT STEM CELL RESEARCH PROGRAM | 
      
      
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               Sec. 156.001.  DEFINITIONS.  In this chapter: | 
      
      
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                     (1)  "Adult stem cell" means an undifferentiated cell  | 
      
      
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        that is: | 
      
      
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                           (A)  found in differentiated tissue; and | 
      
      
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                           (B)  able to renew itself and differentiate to  | 
      
      
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        yield all or nearly all of the specialized cell types of the tissue  | 
      
      
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        from which the cell originated. | 
      
      
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                     (2)  "Consortium" means the Texas Adult Stem Cell  | 
      
      
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        Research Consortium. | 
      
      
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                     (3)  "Institution of higher education" means an  | 
      
      
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        institution of higher education as defined by Section 61.003 or a  | 
      
      
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        private college or university that receives state funds. | 
      
      
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                     (4)  "Program" means the adult stem cell research  | 
      
      
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        program established under this chapter. | 
      
      
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                     (5)  "Research coordinating board" means the Texas  | 
      
      
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        Adult Stem Cell Research Coordinating Board. | 
      
      
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               Sec. 156.002.  COMPOSITION OF RESEARCH COORDINATING BOARD.   | 
      
      
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        (a)  The Texas Adult Stem Cell Research Coordinating Board is  | 
      
      
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        composed of seven members appointed as follows: | 
      
      
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                     (1)  three members who are interested persons,  | 
      
      
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        including at least one person who represents an institution of  | 
      
      
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        higher education and one person who is a representative of an  | 
      
      
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        advocacy organization representing patients, appointed by the  | 
      
      
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        governor, with the advice and consent of the senate; | 
      
      
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                     (2)  two members who are interested persons appointed  | 
      
      
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        by the lieutenant governor; and | 
      
      
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                     (3)  two members who are interested persons appointed  | 
      
      
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        by the speaker of the house of representatives. | 
      
      
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               (b)  The governor shall designate as the presiding officer of  | 
      
      
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        the research coordinating board a board member appointed under  | 
      
      
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        Subsection (a)(1) who represents an institution of higher  | 
      
      
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        education.  The presiding officer serves in that capacity at the  | 
      
      
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        will of the governor. | 
      
      
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               (c)  The members of the research coordinating board serve  | 
      
      
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        staggered six-year terms.  If a vacancy occurs on the board, the  | 
      
      
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        appropriate appointing authority shall appoint, in the same manner  | 
      
      
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        as the original appointment, another person to serve for the  | 
      
      
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        remainder of the unexpired term. | 
      
      
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               Sec. 156.003.  CONFLICT OF INTEREST.  (a)  In this section,  | 
      
      
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        "Texas trade association" means a cooperative and voluntarily  | 
      
      
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        joined association of business or professional competitors in this  | 
      
      
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        state designed to assist its members and its industry or profession  | 
      
      
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        in dealing with mutual business or professional problems and in  | 
      
      
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        promoting their common interest. | 
      
      
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               (b)  A person may not be a member of the research  | 
      
      
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        coordinating board if: | 
      
      
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                     (1)  the person is an officer, employee, or paid  | 
      
      
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        consultant of a Texas trade association in the field of medicine; | 
      
      
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                     (2)  the person's spouse is an officer, manager, or paid  | 
      
      
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        consultant of a Texas trade association in the field of medicine; or | 
      
      
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                     (3)  the person is a member of the Texas Higher  | 
      
      
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        Education Coordinating Board. | 
      
      
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               (c)  A person may not be a member of the research  | 
      
      
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        coordinating board if the person is required to register as a  | 
      
      
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        lobbyist under Chapter 305, Government Code, because of the  | 
      
      
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        person's activities for compensation on behalf of a profession  | 
      
      
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        related to the operation of the board. | 
      
      
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               Sec. 156.004.  COMPOSITION OF CONSORTIUM.  (a)  The research  | 
      
      
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        coordinating board shall establish the Texas Adult Stem Cell  | 
      
      
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        Research Consortium. | 
      
      
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               (b)  The consortium is composed of participating  | 
      
      
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        institutions of higher education and businesses that: | 
      
      
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                     (1)  accept public money for adult stem cell research;  | 
      
      
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        or | 
      
      
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                     (2)  otherwise agree to participate in the consortium. | 
      
      
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               Sec. 156.005.  ADMINISTRATION OF PROGRAM; GUIDELINES AND  | 
      
      
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        PROCEDURES.  (a)  The research coordinating board shall administer  | 
      
      
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        the program to: | 
      
      
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                     (1)  make grants and loans to consortium members for: | 
      
      
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                           (A)  adult stem cell research projects, including  | 
      
      
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        projects to develop therapies, protocols, or medical procedures  | 
      
      
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        involving adult stem cells; | 
      
      
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                           (B)  the development of facilities to be used  | 
      
      
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        solely for adult stem cell research projects; and | 
      
      
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                           (C)  the commercialization of products or  | 
      
      
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        technology involving adult stem cell research and treatments; | 
      
      
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                     (2)  support consortium members in all stages of the  | 
      
      
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        process of developing treatments and cures based on adult stem cell  | 
      
      
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        research, beginning with initial laboratory research through  | 
      
      
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        successful clinical trials; | 
      
      
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                     (3)  establish appropriate regulatory standards and  | 
      
      
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        oversight bodies for: | 
      
      
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                           (A)  adult stem cell research conducted by  | 
      
      
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        consortium members; and | 
      
      
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                           (B)  the development of facilities for consortium  | 
      
      
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        members conducting adult stem cell research; and | 
      
      
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                     (4)  assist consortium members in applying for grants  | 
      
      
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        or loans under the program. | 
      
      
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               (b)  The research coordinating board shall develop research  | 
      
      
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        priorities, guidelines, and procedures for providing grants and  | 
      
      
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        loans for specific research projects conducted by consortium  | 
      
      
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        members.  The priorities, guidelines, and procedures must require  | 
      
      
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        the grants and loans to be made on a competitive, peer review basis. | 
      
      
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               Sec. 156.006.  FUNDING.  The program shall be funded by  | 
      
      
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        gifts, grants, and donations described by Section 156.007.  The  | 
      
      
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        program may not be funded by legislative appropriations. | 
      
      
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               Sec. 156.007.  GIFTS, GRANTS, AND DONATIONS.  The consortium  | 
      
      
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        shall solicit, and the research coordinating board may accept on  | 
      
      
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        behalf of the consortium, a gift, grant, or donation made from any  | 
      
      
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        public or private source for the purpose of promoting adult stem  | 
      
      
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        cell research or commercialization. | 
      
      
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               Sec. 156.008.  BIENNIAL REPORT.  Not later than September 1  | 
      
      
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        of each even-numbered year, the research coordinating board shall  | 
      
      
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        submit a report of the board's activities and recommendations to  | 
      
      
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        the Texas Higher Education Coordinating Board and to the governor,  | 
      
      
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        the lieutenant governor, the speaker of the house of  | 
      
      
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        representatives, and the presiding officer of each legislative  | 
      
      
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        standing committee or subcommittee with jurisdiction over higher  | 
      
      
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        education. | 
      
      
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               SECTION 2.  Section 162.001, Health and Safety Code, is  | 
      
      
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        amended by adding Subdivision (4) to read as follows: | 
      
      
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                     (4)  "Adult stem cell" means an undifferentiated cell  | 
      
      
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        that is: | 
      
      
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                           (A)  found in differentiated tissue; and | 
      
      
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                           (B)  able to renew itself and differentiate to  | 
      
      
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        yield all or nearly all of the specialized cell types of the tissue  | 
      
      
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        from which the cell originated. | 
      
      
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               SECTION 3.  Chapter 162, Health and Safety Code, is amended  | 
      
      
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        by adding Section 162.020 to read as follows: | 
      
      
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               Sec. 162.020.  ADULT STEM CELL COLLECTION.  Blood obtained  | 
      
      
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        by a blood bank may be used for the collection of adult stem cells if  | 
      
      
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        the donor consents in writing to that use. | 
      
      
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               SECTION 4.  The heading to Chapter 1003, Health and Safety  | 
      
      
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        Code, is amended to read as follows: | 
      
      
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        CHAPTER 1003.  [AUTOLOGOUS STEM CELL BANK FOR RECIPIENTS OF 
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          BLOOD
           
          AND
           
          TISSUE COMPONENTS WHO ARE THE LIVE HUMAN DONORS 
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          OF
           
          THE] ADULT STEM CELLS | 
      
      
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               SECTION 5.  Chapter 1003, Health and Safety Code, is amended  | 
      
      
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        by adding Sections 1003.002 and 1003.003 to read as follows: | 
      
      
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               Sec. 1003.002.  GENERAL REQUIREMENTS FOR ADULT STEM CELL USE  | 
      
      
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        IN HEALTH CARE.  A person using adult stem cells in the provision of  | 
      
      
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        health care: | 
      
      
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                     (1)  must use adult stem cells that are properly  | 
      
      
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        manufactured and stored; and | 
      
      
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                     (2)  may only use adult stem cells in a clinical trial  | 
      
      
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        approved by the United States Food and Drug Administration. | 
      
      
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               Sec. 1003.003.  ADDITIONAL REQUIREMENTS FOR ADULT STEM CELL  | 
      
      
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        USE IN HOSPITALS.  A hospital may use adult stem cells in a  | 
      
      
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        procedure if: | 
      
      
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                     (1)  a physician providing services at the hospital  | 
      
      
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        determines that the use of adult stem cells in the procedure is  | 
      
      
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        appropriate; | 
      
      
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                     (2)  the patient consents in writing to the use; | 
      
      
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                     (3)  the requirements for stem cell use under Section  | 
      
      
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        1003.002 are met; | 
      
      
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                     (4)  the manufacturing processes for the adult stem  | 
      
      
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        cells satisfy current good manufacturing practices adopted by the  | 
      
      
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        United States Food and Drug Administration; and | 
      
      
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                     (5)  appropriate state and federal guidelines on the  | 
      
      
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        use of adult stem cells are followed. | 
      
      
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               SECTION 6.  (a)  As soon as practicable after the effective  | 
      
      
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        date of this Act, the governor, lieutenant governor, and speaker of  | 
      
      
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        the house of representatives shall appoint members to the Texas  | 
      
      
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        Adult Stem Cell Research Coordinating Board, as required by Section  | 
      
      
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        156.002, Education Code, as added by this Act, as follows: | 
      
      
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                     (1)  the governor shall appoint one member to a term  | 
      
      
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        expiring February 1, 2017, one member to a term expiring February 1,  | 
      
      
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        2019, and one member to a term expiring February 1, 2021; | 
      
      
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                     (2)  the lieutenant governor shall appoint one member  | 
      
      
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        to a term expiring February 1, 2019, and one member to a term  | 
      
      
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        expiring February 1, 2021; and | 
      
      
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                     (3)  the speaker of the house of representatives shall  | 
      
      
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        appoint one member to a term expiring February 1, 2019, and one  | 
      
      
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        member to a term expiring February 1, 2021. | 
      
      
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               (b)  Not later than September 1, 2016, the Texas Adult Stem  | 
      
      
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        Cell Research Coordinating Board shall submit the first report of  | 
      
      
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        the board's activities and recommendations as required by Chapter  | 
      
      
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        156, Education Code, as added by this Act. | 
      
      
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               SECTION 7.  This Act takes effect September 1, 2015. | 
      
      
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        ______________________________ | 
        ______________________________ | 
      
      
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           President of the Senate | 
        Speaker of the House      | 
      
      
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               I certify that H.B. No. 177 was passed by the House on May 13,  | 
      
      
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        2015, by the following vote:  Yeas 147, Nays 0, 1 present, not  | 
      
      
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        voting; and that the House concurred in Senate amendments to H.B.  | 
      
      
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        No. 177 on May 27, 2015, by the following vote:  Yeas 139, Nays 2, 2  | 
      
      
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        present, not voting. | 
      
      
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        ______________________________ | 
      
      
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        Chief Clerk of the House    | 
      
      
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               I certify that H.B. No. 177 was passed by the Senate, with  | 
      
      
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        amendments, on May 24, 2015, by the following vote:  Yeas 30, Nays  | 
      
      
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        0. | 
      
      
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         | 
      
      
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        ______________________________ | 
      
      
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        Secretary of the Senate    | 
      
      
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        APPROVED: __________________ | 
      
      
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                        Date        | 
      
      
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                 __________________ | 
      
      
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                      Governor        |