Relating to the establishment of a consortium to conduct United States Food and Drug Administration's drug development clinical trials with ibogaine to secure the administration's approval of the medication's use for treatment of opioid use disorder, co-occurring substance use disorder, and any other neurological or mental health conditions for which ibogaine demonstrates efficacy and to the administration of that treatment.
ModeratePlan for compliance
High Cost
Effective:2025-09-01
Enforcing Agencies
Health and Human Services Commission • Comptroller of Public Accounts
01
Compliance Analysis
Key implementation requirements and action items for compliance with this legislation
Implementation Timeline
Effective Date: September 1, 2025.
Compliance Deadline: October 31, 2025 (Statutory deadline for HHSC to begin accepting consortium proposals; consortium formation and matching funds must be secured by this date).
Agency Rulemaking: HHSC must establish the application framework and selection criteria between September 1 and October 31, 2025. Expect rapid guidance issuance during this 60-day window.
Immediate Action Plan
Formalize the Consortium: Execute the tripartite agreement between the University, Hospital, and Developer before September 1, 2025.
Secure Liquidity: Segregate matching funds immediately; do not commingle these with general operating accounts, as HHSC will require proof of funds.
Audit IP Portfolio: Review current patent holdings to ensure the 20% state stake does not violate existing investor covenants.
Engage HHSC Legal: Submit comments immediately upon the effective date to advocate for a "Net Profit" definition of revenue rather than "Gross Revenue."
Operational Changes Required
Contracts
Consortium MOU: You must execute a binding Memorandum of Understanding between a Texas university (Lead Institution), a hospital with cardiac intensive care capabilities, and a drug developer. This document must designate the Lead Institution and define liability sharing.
IP Assignment Amendments: Existing IP agreements must be amended to acknowledge the State of Texas as a 20% stakeholder in all revenue generated from patents, treatment models, and data resulting from these trials.
State Interagency Contract: The Lead Institution must prepare to sign a performance-based contract with HHSC that ties funding disbursements to specific clinical milestones.
Hiring/Training
Cardiac Care Staffing: Participating hospitals must verify staffing levels for cardiac intensive care units, as the statute explicitly mandates this capability for trial sites due to Ibogaine’s risk profile.
Data Integrity Officer: The consortium must designate personnel responsible for the statutory "Data Integrity Plan" to manage patient data and trial results in compliance with both HHSC and FDA standards.
Reporting & Record-Keeping
Segregated Accounting: Finance departments must establish separate ledgers for "Matching Funds." You must prove the 1:1 match with non-state sources before HHSC releases any grant money.
Quarterly Financials: The Lead Institution is required to submit quarterly reports to HHSC detailing expenditures and verifying the continued status of matching funds.
Revenue Tracking: Systems must be implemented to track "revenue attributable to intellectual property" distinct from general operating revenue to calculate the 20% state remittance.
Fees & Costs
1:1 Matching Requirement: The consortium must provide dollar-for-dollar funding from non-state sources.
20% Revenue Remittance: The law requires the consortium to return 20% of all revenue from commercialization and IP to the State General Revenue Fund. This is a permanent royalty, not a one-time fee.
Strategic Ambiguities & Considerations
Definition of "Revenue": The statute demands 20% of "revenue" but does not specify *Gross* vs. *Net*. If HHSC interprets this as Gross Revenue in the rulemaking process, it will significantly impact the commercial viability for the drug developer.
In-Kind vs. Cash Match: The law requires a match "in an amount" equal to the grant. It is unclear if the agency will accept in-kind contributions (equipment, staff hours) or strictly require liquid cash.
IP Scope: The text includes "treatment models" and "protocols" as IP. It is undefined how the state intends to monetize clinical protocols versus patentable chemical compounds.
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Clinically, ibogaine has shown promise in rapidly interrupting opioid and other substance dependencies. A single administration, in controlled settings, has been associated with the abrupt cessation of withdrawal symptoms and long-term reduction in cravings. Patients frequently report transformative psychological experiences that catalyze sustained behavioral change. Preliminary reports also suggest benefits in cognitive function, mood regulation, and sleep among individuals with TBI and PTSD�conditions prevalent among U.S. veterans.
Prominent advocates, including Navy SEAL Marcus Luttrell and former SEAL Bryan Hubbard, have described ibogaine's life-saving effects and are part of a growing veteran movement seeking alternatives to conventional treatments. With 1.8 million veterans living in Texas, ensuring access to innovative therapies like ibogaine is both a public health priority and a moral imperative.
Despite its potential, ibogaine remains a Schedule I substance and is not FDA-approved. However, it qualifies for Breakthrough Therapy designation, a pathway to accelerate the development of treatments for serious conditions. Safety concerns, particularly related to cardiac health, demand rigorous clinical protocols and administration in advanced care settings.
A successful ibogaine development initiative could unlock a new paradigm in the treatment of addiction and neuropsychiatric disorders, while securing Texas' role in shaping the future of transformative mental health therapies.
S.B. 2308 would establish a public-private grant program under the Health and Human Services Commission (HHSC) to support FDA Investigational New Drug (IND) trials for ibogaine. The program will fund Texas-based clinical research through gifts, grants, or donations and require dollar-for-dollar matching by recipients.
Eligible applicants must demonstrate the ability to:
�Conduct and finance FDA-compliant clinical trials;
�Assemble expert teams in pharmacology, psychiatry, cardiology, and data integrity;
�Provide detailed protocols for safety, aftercare, and data management;
�Maintain a commercial presence in Texas with intellectual property protections;
�Plan for broad access, including insurance reimbursement and care for uninsured populations; and
�Train medical providers in ibogaine therapy.
A multidisciplinary selection committee will review applications and recommend grantees to HHSC. An Institutional Review Board (IRB) based in Texas will ensure FDA standards are met.
Once IND approval is secured, HHSC and awardees will launch clinical trials at Texas facilities equipped for cardiac-intensive monitoring. All treatment will be physician-supervised in licensed healthcare settings. Applicants must pursue Breakthrough Therapy designation upon demonstration of clinical efficacy.
By advancing ibogaine research, Texas has the opportunity to lead in neuroscience innovation, address urgent veteran health needs, and shape the future of mental health treatment nationwide.
As proposed, S.B. 2308 amends current law relating to the establishment of a grant program to fund the United States Food and Drug Administration's drug development trials with ibogaine for the purpose of securing the administration's approval as a medication for treatment of opioid use disorder, co-occurring substance use disorder, and any other neurological or mental health conditions for which ibogaine demonstrates efficacy and the administration of that treatment.
RULEMAKING AUTHORITY
Rulemaking authority is expressly granted to the executive commissioner of the Health and Human Services Commission in SECTION 1 (Section 491.002, Health and Safety Code) of this bill.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subtitle C, Title 6, Health and Safety Code, by adding Chapter 491, as follows:
CHAPTER 491. IBOGAINE TREATMENT
SUBCHAPTER A. GRANT PROGRAM FOR DRUG DEVELOPMENT OF IBOGAINE TREATMENT
Sec. 491.001. DEFINITIONS. Defines "commission" and "executive commissioner."
Sec. 491.002. RULES. Requires the executive commissioner of the Health and Human Services Commission (executive commissioner) to adopt rules necessary to administer this chapter.
Sec. 491.003. ESTABLISHMENT OF GRANT PROGRAM. Requires the Health and Human Services Commission (HHSC) to establish and administer a grant program to fund a public-private partnership program that will pay for the costs of the United States Food and Drug Administration's drug development trials with ibogaine to secure the administration's approval as a medication for treatment of opioid use disorder, co-occurring substance use disorder, and any other neurological or mental health conditions for which ibogaine demonstrates efficacy.
Sec. 491.004. APPLICATION. (a) Requires HHSC to prepare and issue a notice of funding opportunity to solicit applications for the grant program established under this subchapter.
(b) Authorizes an applicant to apply to HHSC in the form and manner prescribed by HHSC for a grant under this subchapter. Requires an applicant, to be eligible for a grant, to:
(1) be a for-profit, nonprofit, or public benefit corporate entity that has the requisite organizational and financial capacity to:
(A) conduct the United States Food and Drug Administration's drug development trials with ibogaine to secure the administration's approval as a medication for treatment of opioid use disorder, co-occurring substance use disorder, and any other neurological or mental health conditions for which ibogaine demonstrates efficacy;
(B) as a result of the data obtained from the drug development trial described by Paragraph (A), seek United States Food and Drug Administration approval of ibogaine; and
(C) conduct future drug development trials of ibogaine as a medication for treatment of opioid use disorder, co-occurring substance use disorder, and any other neurological or mental health conditions for which ibogaine demonstrates efficacy; and
(2) provide certain information.
(c) Requires HHSC to make available the application required under this section and announce a period of not less than 90 days during which applicants may submit an application under this subchapter.
Sec. 491.005. SELECTION COMMITTEE. (a) Requires HHSC to create a selection committee and select the number of members. Requires the committee to be composed of subject matter experts, philanthropic partners, and legislative designees.
(b) Requires the selection committee to review applications, communicate supplemental inquiries to applicants, and recommend to HHSC the best applicants to conduct the drug development trials.
(c) Requires HHSC to consider the recommendations of the selection committee in selecting the applicant to conduct the ibogaine drug development trial.
Sec. 491.006. INVESTIGATIONAL NEW DRUG APPLICATION. Requires the applicant, on notification from HHSC that the applicant was selected to conduct the ibogaine drug development trial, as soon as practicable, to submit an investigational new drug (IND) application with the United States Food and Drug Administration in accordance with 21 C.F.R. Part 312 and seek a breakthrough therapy designation for ibogaine from the United States Food and Drug Administration under 21 U.S.C. Section 356.
Sec. 491.007. ESTABLISHMENT OF DRUG DEVELOPMENT TRIAL SITES. Requires HHSC, on approval of the applicant's investigational new drug application by the United States Food and Drug Administration, in consultation with the applicant, to establish drug development trial sites that are required to be equipped and staffed to provide cardiac intensive care services to patients.
Sec. 491.008. CONDUCTING DRUG DEVELOPMENT TRIAL. (a) Requires the applicant, as soon as practicable after drug development trial sites are established under Section 491.007, to begin a drug development trial to administer treatment with ibogaine.
(b) Requires HHSC, in consultation with the selection committee under Section 491.005, to select an institutional review board with a presence in this state to oversee and verify the drug development trial research activity for scientific validation and authentication under the requirements of the United States Food and Drug Administration.
(c) Requires the applicant to request the designation under 21 U.S.C. Section 356 during the drug development trial if the ibogaine treatment is demonstrating efficacy.
Sec. 491.009. FUNDING. (a) Authorizes HHSC to use money received as a gift, grant, or donation to pay for a grant under this subchapter. Authorizes HHSC to solicit and accept gifts, grants, and donations of any kind and from any source for purposes of this section.
(b) Requires an applicant selected to perform a drug development trial under this subchapter to contribute toward the cost of developing the ibogaine treatment an amount of money that is at least equal to the amount of money that the applicant received in the form of a grant from HHSC.
SUBCHAPTER B. IBOGAINE TREATMENT ADMINISTRATION
Sec. 491.051. APPLICABILITY. Provides that this subchapter applies only if ibogaine is approved by the United States Food and Drug Administration to treat a medical condition.
Sec. 491.052. MEDICAL SUPERVISION. Requires a physician licensed under Subtitle B (Physicians), Title 3 (Health Professions), Occupations Code, who has prescribed ibogaine for a patient to supervise the administration of ibogaine at a hospital or other licensed health care facility to ensure the patient's safety while the patient is under the influence of ibogaine.
Sec. 491.053. ADMINISTRATION UNDER FEDERAL LAW PERMITTED. Provides that this subchapter does not preclude a physician from otherwise administering ibogaine according to federal law.
SECTION 2. Requires a state agency, if necessary for implementation of a provision of this Act, to request a waiver or authorization from a federal agency, and authorizes a delay of implementation until such a waiver or authorization is granted.
SECTION 3. Effective date: upon passage or September 1, 2025.
Honorable Lois W. Kolkhorst, Chair, Senate Committee on Health & Human Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB2308 by Parker (Relating to the establishment of a grant program to fund the United States Food and Drug Administration's drug development trials with ibogaine for the purpose of securing the administration's approval as a medication for treatment of opioid use disorder, co-occurring substance use disorder, and any other neurological or mental health conditions for which ibogaine demonstrates efficacy and the administration of that treatment.), As Introduced
The fiscal implications of the bill cannot be determined due to the unknown cost related to the grant funding needs required to conduct the drug development trials.
The bill would require the Health and Human Services Commission (HHSC) to establish and administer a grant program to fund a public-private partnership program that will pay for the costs of the United States Food and Drug Administration's (USDA) drug development trials with ibogaine to secure USDA's approval as a medication for treatment of opioid use disorder, co-occurring substance use disorder, and any other neurological or mental health conditions for which ibogaine demonstrates efficacy. HHSC shall create a selection committee to review and recommend grant applicants. HHSC, in consultation with the selected applicant, shall establish drug development trial sites that must be equipped and staffed to provide cardiac intensive care services to patients. HHSC shall select an Institutional Review Board to oversee and verify the drug development trial research activity. HHSC may use money appropriated for this purpose and gifts, grants, and donations to establish and administer the program. The selected applicant shall contribute toward the cost of developing the ibogaine treatment at an amount of funding that is at least equal to the amount of the grant provided by HHSC.
The cost estimate does not include HHSC's component of the grant funding required to conduct the drug development trials. HHSC would require appropriations to implement the grant program, which are expected to be significant, but the cost for grant funding is unknown at this time as HHSC does not have experience with establishing drug trials and there is no existing program comparable at HHSC to develop a cost estimate for this purpose. Other potential costs are noted below for illustrative purposes.
Based on information provided by HHSC, this analysis assumes HHSC would require additional funding related to technical and scientific support of the drug development trials, including: start-up fees, Institutional Review Board fees, radiological and scanning expenses, and indirect costs. This analysis assumes HHSC would require $965,309 in General Revenue in fiscal year 2026 and $965,309 in General Revenue in fiscal year 2027 for related technical and scientific support services.
This analysis assumes HHSC would require an additional 3.0 full-time-equivalents (FTEs) to implement other provisions of the bill, including: 1.0 Contract Specialist V for procurement- and contract-related activities, 1.0 Budget Analyst IV for budget management oversight and assistance, and 1.0 Psychiatrist IV to serve as a psychiatric clinical director and direct and supervise clinical aspects of the drug development trials. Personnel-related costs, including salaries and travel for select FTEs, are estimated to total $749,760 in General Revenue in fiscal year 2026 and $721,512 in General Revenue in fiscal year 2027.
The bill establishes a matching grant program at HHSC. This analysis assumes HHSC would require an estimated $10,000 in General Revenue per fiscal year to track the grant in the Grant Management System.
Local Government Impact
No significant fiscal implication to units of local government is anticipated.
Source Agencies: b > td >
503 Texas Medical Board, 529 Health and Human Services Commission
LBB Staff: b > td >
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Related Legislation
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SB 2308 establishes a state-funded consortium to pursue FDA approval for Ibogaine, requiring a strict 1:1 private funding match and mandating a permanent 20% state revenue share on resulting intellectual property. Texas hospitals, universities, and drug developers seeking participation must form binding tripartite agreements and secure liquidity immediately to meet the October 2025 application window. Implementation Timeline Effective Date: September 1, 2025.
Q
Who authored SB2308?
SB2308 was authored by Texas Senator Tan Parker during the Regular Session.
Q
When was SB2308 signed into law?
SB2308 was signed into law by Governor Greg Abbott on June 11, 2025.
Q
Which agencies enforce SB2308?
SB2308 is enforced by Health and Human Services Commission and Comptroller of Public Accounts.
Q
How urgent is compliance with SB2308?
The compliance urgency for SB2308 is rated as "moderate". Businesses and organizations should review the requirements and timeline to ensure timely compliance.
Q
What is the cost impact of SB2308?
The cost impact of SB2308 is estimated as "high". This may vary based on industry and implementation requirements.
Q
What topics does SB2308 address?
SB2308 addresses topics including alcoholism & drug abuse, health care providers, mental health & substance abuse, state finances and state finances--management & control.
Legislative data provided by LegiScanLast updated: November 25, 2025
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