Texas senators have approved a proposed constitutional amendment and companion measure establishing the Dementia Prevention and Research Institute of Texas, to the tune of $3 billion.
On Wednesday, senators voted 30-1 on Senate Joint Resolution 3 and Senate Bill 5.
The two items, filed by State Sen. Joan Huffman (R-Houston), would create the institute and assign its management to research the causes and potential prevention or treatment of dementia and related disorders.
Earlier this year, Lt. Gov. Dan Patrick listed the institute’s creation as among his top 25 priorities this session.
“Dementia is a disease of particular concern because it robs a person of their thoughts and memories—the very essence of that person,” said Huffman. “A new study shows that the risk of developing dementia after age 55 among Americans is 42 percent. That translates into an estimated half-million new cases this year, rising to a million new cases a year by 2060.”
“We have world-class medical centers and researchers, and our business-friendly tax and regulatory environment puts Texas at a unique advantage to become the epicenter of biomedical research,” she continued.
Huffman added that the Dementia Prevention and Research Institute of Texas is specifically modeled after the Cancer Prevention and Research Institute of Texas, which was established in 2007 through House Joint Resolution 90 and House Bill 14.
The institute is planned to be connected to a Dementia Prevention and Research Fund. The fund would receive $3 billion in general revenue to expedite research into the disease by awarding research grants and collaborating with state agencies.
SB 5 would also establish a committee to oversee the grants distributed by the fund. The committee would consist of three members appointed by the governor, three members appointed by the lieutenant governor, and three members appointed by the speaker of the Texas House.
The committee would be responsible for hiring a chief executive officer, annually setting priorities for each grant program, and considering existing priorities in awarding grants already laid out in SB 5.
Another peer review committee, consisting of subject-area specialists, would be established to evaluate and recommend grants to the oversight committee.
Further panels to coordinate between the oversight committee and higher education institutions are also established in SB 5. One of them, the Higher Education Advisory Committee, would notably include representatives from eight of the state’s top university medical programs.
Under SB 5, grant recipients would be required to provide matching funds equal to at least half of the awarded amount. That provision is also permanently codified in SJR 3.
Still, as a proposed constitutional amendment, SJR 3 allows Texas residents to be the final arbiter on that codification and whether the proposed $3 billion in general revenue allotted to the dementia fund is dispersed.
State Sen. Kelly Hancock (R-North Richland Hills), whose father suffered from dementia in his later years, spoke out against the creation of the institute over fiscal concerns.
“Sure enough, he passed last year of dementia,” said Hancock. “My mom ended up [with] dementia for three years. It is horrible. There is no doubt. Horrible. And I wouldn’t wish it on anyone.”
“My vote is not a vote of no support, it’s just a vote of recognizing that maybe we need to recognize other things as government. And it concerns me as we add some of these on,” he added.
Hancock was the sole senator to vote against both SJR 3 and SB 5.
After the items passed, Patrick praised Huffman for leading the charge in the Senate and thanked State Rep. Tom Craddick (R-Midland) for filing its companion legislation, House Joint Resolution 3 and House Bill 5.
“With a steadfast commitment, Texas has the potential to become a world leader in combating Dementia through the search for effective treatments and, ultimately, a cure,” stated Patrick. “Once SB 5 and SJR 3 pass the Texas House and are signed by Gov. Abbott, voters must approve the creation of DPRIT at the ballot box as a constitutional amendment in November.”
Texas Policy Research, which opposes SJR 3 and SB 5, analyzed the two items and noted that the Dementia Prevention and Research Institute of Texas is expected to award $300 million in grants annually over the next five years. Administrative costs, including staffing, are projected to cost approximately $22.4 million annually.
TPR’s analysis argued that, while establishing the Dementia Prevention and Research Institute of Texas is well-intentioned, SB 5 “creates multiple new layers of bureaucracy.”
“The establishment of a state-run grant program with ongoing administrative costs of over $22 million per year (including 54 new government employees) adds inefficiency and unnecessary duplication of efforts already being handled by existing research institutions and private enterprises,” read the article.
Another TPR article highlighted that the Cancer Prevention and Research Institute of Texas, the foundation of the new dementia-oriented institute, has suffered from “corruption, mismanagement, and cronyism” since its inception.
“By 2012, CPRIT was engulfed in scandal, with state auditors discovering that millions of dollars were awarded to companies without proper peer review,” read the article.
One high-profile case revealed that an $11 million grant was given to a company that had not even undergone scientific review—a blatant abuse of taxpayer trust. Multiple executives resigned, and the state was forced to freeze funding while investigating the program’s failures.
Andrew McVeigh, president and CEO of Texans for Fiscal Responsibility, told Texas Scorecard that his organization opposes SJR 3 and SB 5. He echoed sentiments similar to Hancock’s about the institute’s projected fiscal impact.
“While the desire for a state dementia research institute is well-intentioned, such a program is not a proper function of the government and is better left to the private sector,” said McVeigh.
“The institute and fund will also be another drain on taxpayers to the tune of billions of new dollars, something that taxpayers being crushed by property taxes cannot afford,” he continued.
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