By McCall                                              H.B. No. 897
         77R4756 KEL-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to certain programs to develop the technology workforce in
 1-3     Texas by supporting and promoting higher education in electrical
 1-4     engineering and computer science.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Subchapter J, Chapter 51, Education Code, is
 1-7     amended to read as follows:
 1-8               SUBCHAPTER J.  TECHNOLOGY WORKFORCE DEVELOPMENT
 1-9                        [ENGINEERING EXCELLENCE FUND]
1-10           Sec. 51.501.  PURPOSE. The purpose of this subchapter is to
1-11     establish programs to:
1-12                 (1)  increase the number of electrical engineering and
1-13     computer science graduates from Texas public institutions of higher
1-14     education; and
1-15                 (2)  increase collaborative efforts between
1-16     universities, electrical engineering and computer science
1-17     departments, and private technology companies in Texas.
1-18           Sec. 51.502.  DEFINITIONS. In this subchapter:
1-19                 (1)  "Account" means the technology workforce
1-20     development account.
1-21                 (2)  "Consortium" means the Texas Engineering and
1-22     Technical Consortium.
1-23                 (3)  "Coordinating board" means the Texas Higher
1-24     Education Coordinating  Board.
 2-1                 (4)  "Eligible computer science institution" means a
 2-2     general academic teaching institution that offers a baccalaureate
 2-3     degree program in computer science that is accredited by the
 2-4     Accreditation Board for Engineering and Technology.
 2-5                 (5)  "Eligible engineering institution" means a general
 2-6     academic teaching institution that offers a baccalaureate degree
 2-7     program in electrical engineering that is accredited by the
 2-8     Accreditation Board for Engineering and Technology.
 2-9                 (6)  "General academic teaching institution" has the
2-10     meaning assigned  by Section 61.003.
2-11           Sec. 51.503.  TEXAS ENGINEERING AND TECHNICAL CONSORTIUM. (a)
2-12     Eligible engineering institutions, eligible computer science
2-13     institutions, and private technology companies as described by
2-14     Subsection (b) may establish and administer the Texas Engineering
2-15     and Technical Consortium as a resource-sharing program operated
2-16     within an eligible institution to:
2-17                 (1)  provide a forum for eligible institutions and
2-18     private technology companies to consolidate research grant
2-19     applications and research projects;
2-20                 (2)  strengthen instruction in electrical engineering
2-21     and computer science;
2-22                 (3)  institute recruitment, development, and retention
2-23     programs for students in electrical engineering and computer
2-24     science programs;
2-25                 (4)  share instructional and research resources; and
2-26                 (5)  coordinate activities related to electrical
2-27     engineering and computer science instruction, research, and public
 3-1     service.
 3-2           (b)  The consortium must include at least one eligible
 3-3     engineering institution or eligible computer science institution.
 3-4     Each participant in the consortium must be:
 3-5                 (1)  an eligible engineering institution;
 3-6                 (2)  an eligible computer science institution; or
 3-7                 (3)  a private technology company that contributes at
 3-8     least $100,000 each year to the consortium.
 3-9           (c)  At the end of each two-year period or any other period
3-10     determined by the consortium, the consortium may transfer its
3-11     administrative functions to another eligible institution
3-12     participating in the consortium.
3-13           Sec. 51.504.  CONSORTIUM ADVISORY COMMITTEE. (a)  The
3-14     consortium shall appoint an advisory committee to advise and make
3-15     recommendations to the consortium regarding the operations and
3-16     activities of the consortium.
3-17           (b)  The advisory committee must include a representative of
3-18     each consortium participant.
3-19           (c)  The advisory committee is subject to Chapter 2110,
3-20     Government Code.
3-21           Sec. 51.505.  GIFTS, GRANTS, AND DONATIONS; TECHNOLOGY
3-22     WORKFORCE DEVELOPMENT ACCOUNT. (a)  The consortium may solicit and
3-23     accept gifts, grants, and donations of any kind and from any
3-24     source, including foundations, corporations, and institutions of
3-25     higher education, for the purpose of implementing this subchapter.
3-26           (b)  The consortium shall transfer money received under
3-27     Subsection (a), other than money retained to administer the
 4-1     consortium, to the comptroller for deposit to the credit of the
 4-2     technology workforce development account.
 4-3           (c)  The technology workforce development account is an
 4-4     account in the general revenue fund.  Money in the account may be
 4-5     appropriated only for the purpose of awarding grants under this
 4-6     subchapter.
 4-7           (d)  The account consists of gifts, grants, and donations
 4-8     deposited to the credit of the account under this section.
 4-9           (e)  The coordinating board shall administer the account and
4-10     shall adopt any rules necessary to administer the account.
4-11           Sec. 51.506.  APPROPRIATIONS; STATE MATCHING PROGRAM. (a)
4-12     The legislature may appropriate money from the undedicated portion
4-13     of the general revenue fund, in addition to money from the
4-14     technology workforce development account, for the purpose of
4-15     awarding grants under this subchapter.
4-16           (b)  For a state fiscal biennium, the amount appropriated
4-17     from the undedicated portion of the general revenue fund under
4-18     Subsection (a) may not be less than the sum of:
4-19                 (1)  the amount of money deposited to the credit of the
4-20     account during that biennium under Section 51.505; and
4-21                 (2)  the market value of any in-kind contributions
4-22     accepted by the consortium during that biennium under Section
4-23     51.505, as determined by the comptroller based on information
4-24     provided to the comptroller by the consortium and verified by the
4-25     coordinating board.
4-26           (c)  Subsection (b) does not prohibit the legislature from
4-27     appropriating an amount under Subsection (a) that exceeds the
 5-1     minimum matching amount computed under Subsection (b).
 5-2           Sec. 51.507.  GRANT PROGRAM. (a)  The coordinating board
 5-3     shall use money appropriated under Section 51.506 to award grants
 5-4     on a competitive, peer-review basis to eligible engineering
 5-5     institutions and eligible computer science institutions to:
 5-6                 (1)  increase the number of graduates with
 5-7     baccalaureate degrees in electrical engineering and computer
 5-8     science;
 5-9                 (2)  increase the size of electrical engineering and
5-10     computer science programs;
5-11                 (3)  recruit students to enter electrical engineering
5-12     and computer science programs, including:
5-13                       (A)  students from groups or backgrounds that are
5-14     traditionally underrepresented in the fields of electrical
5-15     engineering and computer science, including female students; and
5-16                       (B)  students from public or private junior
5-17     colleges or technical institutes;
5-18                 (4)  provide scholarships for students in electrical
5-19     engineering and computer science programs;
5-20                 (5)  provide retention and mentoring programs for
5-21     students in electrical engineering and computer science programs;
5-22                 (6)  provide supplemental compensation for faculty and
5-23     support personnel in electrical engineering and computer science
5-24     departments;
5-25                 (7)  provide research and laboratory equipment to
5-26     electrical engineering and computer science departments;
5-27                 (8)  provide for distance learning programs in
 6-1     electrical engineering and computer science; and
 6-2                 (9)  fund other related activities.
 6-3           (b)  In awarding grants under this section, the coordinating
 6-4     board shall consider with respect to the electrical engineering or
 6-5     computer science program of each eligible institution:
 6-6                 (1)  faculty;
 6-7                 (2)  instructional and research resources;
 6-8                 (3)  current enrollment;
 6-9                 (4)  quality of curriculum;
6-10                 (5)  placement record of graduates;
6-11                 (6)  past performance in increasing graduates; and
6-12                 (7)  any other appropriate factor.
6-13           Sec. 51.508.  COORDINATING BOARD ADVISORY COMMITTEE. (a)  To
6-14     advise the coordinating board regarding grants awarded under this
6-15     subchapter, the coordinating board shall appoint an advisory
6-16     committee consisting of the following 11 members with significant
6-17     expertise in electrical engineering, computer science, or higher
6-18     education:
6-19                 (1)  six members who are representatives of private
6-20     technology companies participating in the consortium; and
6-21                 (2)  five members who are representatives of higher
6-22     education.
6-23           (b)  The advisory committee is subject to Chapter 2110,
6-24     Government Code.
6-25           Sec. 51.509.  ANNUAL REPORTS. (a)  An eligible engineering or
6-26     computer science institution that is awarded a grant under this
6-27     subchapter shall report to the coordinating board regarding the use
 7-1     of that grant not later than September 1 of each year.
 7-2           (b)  Not later than October 31 of each year, the coordinating
 7-3     board shall provide to the governor, the legislature, and the
 7-4     consortium participants a report consolidated from reports
 7-5     submitted to the coordinating board by eligible institutions under
 7-6     this section.
 7-7           Sec. 51.510.  COMMITTEE TO EVALUATE GRANT PROGRAM; BIENNIAL
 7-8     REPORTS. (a)  To evaluate the effectiveness of the grant program
 7-9     under this subchapter, the coordinating board shall appoint an
7-10     advisory committee consisting of:
7-11                 (1)  higher education representatives; and
7-12                 (2)  experts in the fields of electrical engineering
7-13     and computer science.
7-14           (b)  The grant program evaluation committee is subject to
7-15     Chapter 2110, Government Code.
7-16           (c)  The grant program evaluation committee shall report the
7-17     results of its evaluation to the coordinating board not later than
7-18     September 1 of each even-numbered year.
7-19           (d)  The coordinating board shall report the results of the
7-20     evaluation to the governor, the legislature, and the consortium
7-21     participants not later than October 31 of each even-numbered year.
7-22     [51.501.  PURPOSE. The purpose of this subchapter is to establish
7-23     an engineering excellence fund to encourage donations from the
7-24     private sector to Texas colleges of engineering to be used for the
7-25     acquisition of capital equipment.]
7-26           [Sec. 51.502.  DEFINITIONS. In this subchapter:]
7-27                 [(1)  "Eligible institution" means the college,
 8-1     department, or other unit of engineering at any of the following
 8-2     institutions of higher education:]
 8-3                       [(A)  The University of Texas at Austin;]
 8-4                       [(B)  The University of Texas at Arlington;]
 8-5                       [(C)  The University of Texas at El Paso;]
 8-6                       [(D)  The University of Texas at San Antonio;]
 8-7                       [(E)  The University of Texas of the Permian
 8-8     Basin;]
 8-9                       [(F)  Texas A&M University;]
8-10                       [(G)  Prairie View A&M University;]
8-11                       [(H)  Texas Tech University;]
8-12                       [(I)  Lamar University;]
8-13                       [(J)  University of Houston; and]
8-14                       [(K)  Texas A&M University--Kingsville.]
8-15                 [(2)  "Eligible gift" means a gift of at least $1,000
8-16     in cash received on or after September 1, 1983, that the donor has
8-17     specifically designated as a donation for the purchase of
8-18     engineering and related equipment that satisfies the critical needs
8-19     of an eligible institution.]
8-20                 [(3)  "Fund" means the engineering excellence fund.]
8-21                 [(4)  "Commissioner" means the commissioner of higher
8-22     education.]
8-23           [Sec. 51.503.  ENGINEERING EXCELLENCE FUND. (a)  A special
8-24     fund to be known as the engineering excellence fund is created in
8-25     the State Treasury.]
8-26           [(b)  Funds appropriated by the legislature to the
8-27     engineering excellence fund shall be used to match eligible gifts
 9-1     to eligible institutions at a ratio of $2 of appropriated money to
 9-2     $1 of eligible gift money.  Total cumulative appropriations to the
 9-3     fund may not exceed $67 million.]
 9-4           [(c)  The fund shall be administered by the commissioner and
 9-5     shall consist of an appropriations account and a gifts account.
 9-6     Legislative appropriations to the fund shall be deposited to the
 9-7     credit of the appropriations account.  Eligible gifts to eligible
 9-8     institutions shall be deposited to the credit of the gifts account
 9-9     each year until the total deposits to the credit of the gifts
9-10     account, disregarding any disbursements, equal 50 percent of the
9-11     amount available for expenditure from the appropriations account in
9-12     that year.  Thereafter, any eligible gift received by an eligible
9-13     institution during that year shall be retained by the eligible
9-14     institution for its separate use.]
9-15           [(d)  The Coordinating Board, Texas College and University
9-16     System, shall adopt rules for the administration of the engineering
9-17     excellence matching money program.]
9-18           [Sec. 51.504.  DETERMINATION OF CRITICAL NEEDS. (a)  For each
9-19     fiscal year, each eligible institution shall annually prepare and
9-20     submit to the coordinating board a list of proposed critical needs
9-21     for engineering and related equipment.  The coordinating board
9-22     shall adopt any guidelines necessary relating to submission of the
9-23     lists.]
9-24           [(b)  From the lists submitted under Subsection (a)  of this
9-25     section, the coordinating board shall compile a list of the
9-26     critical needs of the eligible institutions.]
9-27           [Sec. 51.505.  DISTRIBUTION AND DISBURSEMENT OF FUND. (a)
 10-1    Except as provided by Subsection (b) of this section, an eligible
 10-2    institution that deposits an eligible gift to the credit of the
 10-3    gifts account of the fund is entitled to receive:]
 10-4                [(1)  not less than one-half of the amount of the
 10-5    eligible gift;]
 10-6                [(2)  not less than one-half of the amount of matching
 10-7    money associated with the gift; and]
 10-8                [(3)  the institution's proportionate share of the
 10-9    remaining portion of the eligible gift and the matching money
10-10    associated with the gift.]
10-11          [(b)  If the commissioner determines that giving the amount
10-12    required by Subsection (a)  of this section to the institution
10-13    would cause the institution to receive from the engineering
10-14    excellence fund an amount that exceeds the total cost of the
10-15    equipment on the institution's list of critical needs for that
10-16    year, the commissioner may provide that less than one-half of the
10-17    gift and less than one-half of the matching money be given to the
10-18    institution.]
10-19          [(c)  If an eligible gift is received for deposit in the fund
10-20    and is not given by or through an eligible institution, the total
10-21    amount of the gift and the matching money associated with the gift
10-22    shall be proportionately distributed to the eligible institutions.]
10-23          [(d)  Each year, the commissioner shall periodically
10-24    distribute the money in the gifts account, combined with state
10-25    matching money from the appropriations account, to each eligible
10-26    institution in accordance with this section and rules of the
10-27    coordinating board.]
 11-1          [(e)  Disbursements from the fund shall be made by the
 11-2    comptroller of public accounts on the basis of vouchers approved by
 11-3    the commissioner.]
 11-4          [Sec. 51.506.  EXCLUDED GIFTS. Gifts specifically designated
 11-5    by the donor for the exclusive use of the receiving eligible
 11-6    institution shall be for the separate use of that institution and
 11-7    are not eligible for purposes of state matching money.]
 11-8          [Sec. 51.508.  EXCESS APPROPRIATION. If the amount
 11-9    appropriated to the fund exceeds the amount needed to match
11-10    eligible gifts received by eligible institutions during any
11-11    biennium, the excess shall be returned to the General Revenue Fund.]
11-12          [Sec. 51.509.  USE OF FUND. An eligible institution may use
11-13    the money it receives from the fund only for the purchase of
11-14    engineering and related capital equipment that is included in the
11-15    list of critical needs submitted by the institution for the fiscal
11-16    year in which the money is received.]
11-17          SECTION 2. This Act takes effect September 1, 2001.