Enrolled Bill Summary

The Education Code allows a public college or university or medical or dental school to retain and deposit or invest funds received from a governmental or private entity to pay overhead expenses of research. Previously, the code also allowed the legislature to deduct up to 50 percent of that research overhead funding from an institution's general revenue appropriation. House Bill 1887 amends the code to prohibit accounting for those funds in an appropriations act in such a way as to reduce the general revenue funds to be appropriated for that institution. The bill also applies to certain requirements for the expenditure of those retained funds that previously applied only to a portion of the funds that was not used to reduce an institution's general revenue appropriations. The provisions of the bill were contingent on the enactment of legislation providing for tuition deregulation, which passed.