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Signed Into Law
Signed May 15, 2025Effective 2025-09-01
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.

Government Affairs & Regulatory Compliance Analysis

SJR3: Government Affairs Overview

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.

Sen. Joan Huffman·Senate Bill·Regular Session

Moderate
High Cost
Effective:2025-09-01
Enforcing Agencies

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

Business Impact

Who SJR3 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: moderate

Notable regulatory updates (effective 2025-09-01). Consider how these changes may affect your operations.

🏥

Healthcare

Affected business types:

  • Hospitals
  • Healthcare systems
  • Medical practices
  • Health insurance providers
View all healthcare legislation
🎓

Education

Affected business types:

  • School districts
  • Charter schools
  • Private schools
  • Education service providers
View all education legislation

Key Operational Considerations

  • 1Revenue 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.
  • 2Vendor Flow-Downs: Contracts with Clinical Research Organizations (CROs) must be amended to include state-mandated compliance clauses (audit rights, anti-discrimination, etc.).
  • 3Fund Segregation: Finance departments require training on strict fund segregation. State grant funds cannot be commingled with general operating funds.

Estimated Cost Impact

highSignificant operational investment may be required.

Enforcing Agencies

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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
01

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 Compliance Guidance on This Legislation?

JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.

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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.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 20, 2025
Passed Senate
Mar 5, 2025
Passed House
Signed
May 15, 2025
Effective
Sep 1, 2025
TopicsEducationEducation--higherEducation--higher--health InstitutionsEducation--higher--institutions & ProgramsHealthHealth--other Diseases & Medical ConditionsMental Health & Substance AbuseResolutionsResolutions--constitutional AmendmentsState FinancesState Finances--management & ControlResearch & DevelopmentDementia Prevention & Research Institute of TexasComptroller of Public AccountsLegislatureAlzheimer's DiseaseParkinson's Disease
03

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

Related by Topic

View more Education legislation
Quick Reference

Frequently Asked Questions

Common questions about SJR3

Q

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.

Q

Who authored SJR3?

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

Q

When was SJR3 signed into law?

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

Q

Which agencies enforce SJR3?

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

Q

How significant are the changes in SJR3?

The regulatory priority for SJR3 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

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.

Q

What topics does SJR3 address?

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

Q

What are the key dates for SJR3?

Key dates for SJR3: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Q

Which Texas businesses are affected by SJR3?

SJR3 primarily affects healthcare providers and medical facilities. These businesses should review the legislation with their legal and compliance teams to understand potential impacts.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026