SJR3

Regular Session

Proposing a constitutional amendment providing for the establishment of the Dementia Prevention and Research Institute of Texas, establishing the Dementia Prevention and Research Fund to provide money for research on and prevention and treatment of dementia, Alzheimer's disease, Parkinson's disease, and related disorders in this state, and transferring to that fund $3 billion from state general revenue.

ModeratePlan for compliance

High Cost

Effective:2025-09-01

Enforcing Agencies

Comptroller of Public Accounts • Dementia Prevention and Research Institute of Texas (New Agency)

SJR3

Moderate

Proposing a constitutional amendment providing for the establishment of the Dementia Prevention and Research Institute of Texas, establishing the Deme...

Moderate Compliance Urgency

Requires near-term attention

Cost Impact

High

Effective

2025-09-01

Enforcing Agencies

Comptroller of Public AccountsDementia Prevention and Research...

Primary Author: Sen. Joan Huffman

89th Texas Legislature

jdkey.com

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: November 4, 2025 (Contingent on voter approval of the Constitutional Amendment).
Compliance Deadline: January 1, 2026 (Funding transfer occurs). Applicants must have matching capital secured before applying, likely by Q3 2026.
Agency Rulemaking: The new Institute (DPRIT) will be formed post-election. Expect aggressive rulemaking in Q1-Q2 2026 to define "Program Policies," "Grant Application Guides," and audit standards before the first Request for Applications (RFA) is released.

Immediate Action Plan

Secure Matching Capital: Direct CFOs to model cash flow for the 50% match requirement; identify liquid assets or binding pledges immediately.
Form Collaboratives: Initiate MOUs with universities or research hospitals now; do not wait for the RFA to define IP and liability splits.
Audit Internal IP: Review current IP portfolios to ensure clear chain-of-title before subjecting assets to state revenue-sharing scrutiny.
Monitor SB 5: Track the enabling legislation (SB 5), which will define the administrative framework and specific clawback provisions absent from the Constitutional Amendment.

Operational Changes Required

Contracts

Revenue Sharing Agreements (RSA): Commercial entities must be prepared to sign RSAs. If you commercialize a product developed with DPRIT funds, the state requires a royalty percentage.
Collaborative MOUs: Joint Ventures or "collaboratives" with universities must have signed Memorandums of Understanding (MOUs) defining IP ownership and liability sharing *before* the grant application is submitted.
Vendor Flow-Downs: Contracts with Clinical Research Organizations (CROs) must be amended to include state-mandated compliance clauses (audit rights, anti-discrimination, etc.).

Hiring/Training

Fund Segregation: Finance departments require training on strict fund segregation. State grant funds cannot be commingled with general operating funds.
Grant Management: Staff must be trained on "translational research" compliance. The state prioritizes clinical application over theoretical science; internal R&D workflows must align with this metric.

Reporting & Record-Keeping

Proof of Matching Funds: Applicants must certify available, unexpended liquid assets equal to one-half (50%) of the grant amount prior to the award.
Audit Trails: Implement rigorous audit trails immediately. You must track every dollar of state funds separately from matching funds to survive inevitable state audits.
Facility Standards: If funds are used for construction, documentation must prove adherence to specific facility standards promulgated by the Institute.

Fees & Costs

Capital Liquidity: While there are no new regulatory fees, the cost impact is high due to the liquidity requirement. A request for a $2 million grant requires $1 million in verified, unspent capital on hand.

Strategic Ambiguities & Considerations

Definition of "Related Disorders": The text specifies Alzheimer's and Parkinson's. Agency rulemaking will determine if this extends to ALS, Huntington’s, or CTE. A broader definition expands the competitive pool.
Royalty Structures: The amendment does not specify the percentage the state expects in return for commercial success. This will be defined in agency rules and will critically impact your ROI models.
Clawback Triggers: The specific milestones or compliance failures that trigger a "clawback" (forced return of funds) are currently undefined and will be established during the 2026 rulemaking phase.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

Passed House

Passed House

TopicsEducation Education--higher Education--higher--health Institutions Education--higher--institutions & Programs Health Health--other Diseases & Medical Conditions Mental Health & Substance Abuse Resolutions Resolutions--constitutional Amendments State Finances State Finances--management & Control Research & Development Dementia Prevention & Research Institute of Texas Comptroller of Public Accounts Legislature Alzheimer's Disease Parkinson's Disease

Official Analysis

View HRO Analysis View All Bill Documents

Senate Authors

Sen. Joan HuffmanRepublican · Primary Author

Coauthors (10)

House Sponsors

Rep. Tom CraddickRepublican · Primary Sponsor

Joint Sponsors

Cosponsors (119)

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

Explore more bills from this author and on related topics

More from Sen. Joan Huffman

View all bills by Sen. Joan Huffman

Frequently Asked Questions

Common questions about SJR3

What does Texas SJR3 do?

The Texas Legislature is advancing a Constitutional Amendment to create the Dementia Prevention and Research Institute of Texas (DPRIT), endowed with $3 billion in state funds. Modeled after CPRIT, this creates a massive funding ecosystem for biotechnology, pharmaceutical, and medical device companies, effective January 1, 2026, pending voter approval. Entities seeking these grants must prepare for strict 50% capital matching requirements and state-mandated revenue sharing on commercialized products.

Who authored SJR3?

SJR3 was authored by Texas Senator Joan Huffman during the Regular Session.

When was SJR3 signed into law?

SJR3 was signed into law by Governor Greg Abbott on May 15, 2025.

Which agencies enforce SJR3?

SJR3 is enforced by Comptroller of Public Accounts and Dementia Prevention and Research Institute of Texas (New Agency).

How urgent is compliance with SJR3?

The compliance urgency for SJR3 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SJR3?

The cost impact of SJR3 is estimated as "high". This may vary based on industry and implementation requirements.

What topics does SJR3 address?

SJR3 addresses topics including education, education--higher, education--higher--health institutions, education--higher--institutions & programs and health.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.