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
Dementia Prevention and Research Institute of Texas (New Agency) • Comptroller of Public Accounts
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.
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S.J.R. 3, the accompanying proposed constitutional amendment for S.B. 5, proposes a constitutional amendment providing for the establishment of the Dementia Prevention and Research Institute of Texas, as well as the Dementia Prevention and Research Fund. S.J.R. 3 transfers $3 billion from the state's general revenue to the Fund to support research, prevention, and treatment of dementia and related disorders.
S.J.R. 3 proposes 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 and related disorders in this state, and transferring to that fund $3 billion from state general revenue.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Article III, Texas Constitution, by adding Section 68, as follows:
Sec. 68.� (a) Requires the legislature to establish the Dementia Prevention and Research Institute of Texas (institute) to:
(1)� award grants to institutions of learning, advanced medical research facilities, public or private persons, and collaboratives in this state to provide money for research into the causes of, means of prevention of, and treatment and rehabilitation for dementia and related disorders; research, including translational research, to develop therapies, protocols, medical pharmaceuticals, or procedures for the substantial mitigation of the symptoms of dementia and related disorders; facilities, equipment, and other costs related to research on dementia and related disorders; and prevention programs and strategies to mitigate the detrimental health impacts of dementia and related disorders;
(2) support institutions of learning and advanced medical research facilities and collaboratives in this state in all stages of discovering the causes of dementia and related disorders, developing therapies, protocols, medical pharmaceuticals, or procedures for the substantial mitigation of the symptoms of dementia and related disorders from laboratory research to clinical trials, and developing programs to address access to advanced treatment for dementia and related disorders; and
(3)� establish the appropriate standards and oversight bodies to ensure the proper use of funding authorized under this section, including facilities development.
(b) �Authorizes the members of the governing body and any other decision-making body of the institute to serve six-year terms.
(c)� Provides that the Dementia Prevention and Research Fund (fund) is established as a special fund in the state treasury outside the general revenue fund to be administered by the institute.
(c-1)� Requires the Comptroller of Public Accounts of the State of Texas, on January 1, 2026, to transfer $3 billion from this state's general revenue fund to the fund. Provides that the transfer made under this subsection is not an appropriation of state tax revenues for the purposes of Section 22 (Restriction on Rate of Growth of Appropriations), Article VIII (Taxation and Revenue), of this constitution. Provides that this subsection expires January 1, 2029.
(d)� Provides that the fund consists of certain monies.
(e)� Provides that the institute, as established by general law, notwithstanding any other provision of this constitution, is authorized to use money in the fund only for the purpose of funding:
(1)� grants for research on dementia and related disorders, research facilities, and research opportunities in this state for the prevention, treatment, and rehabilitation of dementia and related disorders and the mitigation of the incidence of and detrimental health impacts from dementia and related disorders, and to develop therapies, protocols, medical pharmaceuticals, or procedures for the substantial mitigation of the symptoms of dementia and related disorders;
(2)� the purchase, construction, or renovation, subject to the institute's approval, of facilities by or on behalf of a state agency or grant recipient; and
(3)� the institute's operation.
(f)� Prohibits the institute from awarding more than $300 million in grants authorized under this section in a state fiscal year.
(g)� Requires a grant recipient, before the institute is authorized to award a grant authorized under this section, to have available an unexpended amount of money equal to one-half of the grant amount dedicated to the research specified in the grant proposal.
(h)� Requires that the reasonable expenses of managing the assets of the fund be paid from the fund.
SECTION 2. Requires that the proposed constitutional amendment to be submitted to the voters at an election to be held November 4, 2025. Sets forth the required language of the ballot.
Honorable Joan Huffman, Chair, Senate Committee on Finance
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SJR3 by Huffman (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 and related disorders in this state, and transferring to that fund $3 billion from state general revenue.), As Introduced
Estimated Two-year Net Impact to General Revenue Related Funds for SJR3, As Introduced: a negative impact of ($3,000,191,689) through the biennium ending August 31, 2027.
The cost to the state for publication of the resolution is $191,689, which is included in the table below.
General Revenue-Related Funds, Five- Year Impact:
Fiscal Year
Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026
($3,000,191,689)
2027
$0
2028
$0
2029
$0
2030
$0
All Funds, Five-Year Impact:
Fiscal Year
Probable Savings/(Cost) from General Revenue Fund 1
Probable Revenue Gain/(Loss) from New Other Fund - Dementia Prevention and Research Fund
2026
($3,000,191,689)
$3,000,000,000
2027
$0
$0
2028
$0
$0
2029
$0
$0
2030
$0
$0
Fiscal Analysis
The resolution would propose an amendment to Article III of the Texas Constitution to add new Section 68.
The proposed amendment would establish the Dementia Prevention and Research Fund as a fund in the state treasury administered by the Dementia Prevention and Research Institute of Texas. The fund would consist of money constitutionally transferred according to this amendment; money Legislatively appropriated; gifts, grants, and donations; patent, royalty, and license fees; and investment earnings. Money in the fund could only be used for certain purposes related to dementia prevention and research.
The proposed amendment would direct the Comptroller, on January 1, 2026, to transfer $3.0 billion from the General Revenue Fund to the Dementia Prevention and Research Fund. The amendment stipulates that this transfer would not be an appropriation of state tax revenues for the purposes of the calculation of the constitutional tax spending limit in Article VIII.
Note:This joint resolution would create a fund or account in the Treasury. The enabling legislation (SB 5), as introduced, would provide that money in the fund or account may be spent “without further legislative appropriation”. Article VIII, Section VI of the Texas Constitution provides that money drawn from the state treasury requires an appropriation. A constitutional amendment providing authority to spend without further appropriation would be required absent that appropriation.
Methodology
This resolution, contingent on passage and voter approval, would authorize a $3 billion transfer from the General Revenue Fund to the Dementia Prevention and Research Fund in fiscal year 2026.
The fiscal impacts shown are for the mandated January 1, 2026 transfer only. The fiscal impacts association with any uses of the fund are shown in the fiscal note for the enabling legislation (SB 5).
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts
LBB Staff:
JMc, KK, SD, BRI
Related Legislation
Explore more bills from this author and on related topics
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 Dementia Prevention and Research Institute of Texas (New Agency) and Comptroller of Public Accounts.
Q
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.
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.
Legislative data provided by LegiScanLast updated: November 25, 2025
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