78R8344 JSA-F
By: Ratliff S.B. No. 1630
A BILL TO BE ENTITLED
AN ACT
relating to overhead expenses of conducting research at
institutions of higher education and the indirect cost
reimbursement related to that research.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 145.001(c), Education Code, is amended
to read as follows:
(c) In the General Appropriations Act, the legislature may
adopt a method of funding provision that provides for the
application of certain locally generated funds to the general
revenue funds to be appropriated to a general academic teaching
institution or a medical or dental unit in such a way as to reduce
the general revenue to be appropriated to it. If such a provision
is adopted, it is specifically provided that:
(1) not [that no] more than 40 [50] percent of funds
received by a general academic teaching institution or a medical or
dental unit for paying overhead costs may be so applied;
(2) for the state fiscal year beginning September 1,
2005, and for each subsequent state fiscal year, the amount of funds
that may be applied under this subsection to reduce general revenue
appropriations to a general academic teaching institution or a
medical or dental unit may not include any funds received after
August 31, 2005, for paying overhead costs in connection with a
research grant awarded or renewed after that date or a research
contract entered into or renewed after that date;
(3) not [that no] less than 40 [50] percent of the
funds that are retained but not applied to reduce general revenue
appropriations shall be expended under guidelines approved by the
institution's governing board for projects encouraging further
research at the unit, agency, or department level at which the
research was conducted, including:
(A) conducting early pregnant feasibility
studies;
(B) preparing competitive proposals for
sponsored programs;
(C) providing carryover funding for research
teams to provide continuity between externally funded projects;
(D) supporting new researchers pending external
funding;
(E) engaging in research programs of critical
interest to the general welfare of the citizens of this state;
(F) purchasing capital equipment directly
related to expanding the research capability of the institution;
and
(G) research or project administrative costs;
and
(4) [(3) that] the retained funds not applied to
reduce general revenue appropriations remaining after the
application of Subdivision (3) [(2)] of this subsection will be
used by a general academic teaching institution or a medical or
dental unit to support research as approved by a general academic
teaching institution or a medical or dental unit.
SECTION 2. (a) This Act takes effect September 1, 2003, and
applies to each state fiscal year that begins on or after that date.
(b) The change in law made by this Act does not affect the
application of Section 145.001, Education Code, to a state fiscal
year before the state fiscal year that begins September 1, 2003.