79(R) HB 3247 - House Committee Report version


                                                                                
79R12782 JSA-D


By:  Ritter                                                       H.B. No. 3247

Substitute the following for H.B. No. 3247:                                   

By:  Cook of Navarro                                          C.S.H.B. No. 3247



A BILL TO BE ENTITLED

AN ACT

relating to a program to promote research with economic development 
potential at certain institutions of higher education through 
financial assistance from the Texas Enterprise Fund.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 481.078, Government Code, is amended by 
amending Subsection (c) and adding Subsection (c-1) to read as 
follows:
	(c)  Except as provided by Subsection (d), the fund may be 
used only for economic development, infrastructure development, 
community development, job training programs, [and] business 
incentives, and grants to fund research projects under Subchapter 
FF, Chapter 61, Education Code.
	(c-1)  The governor shall use not less than 10 percent of the 
amount awarded from the fund in each state fiscal biennium for 
grants to fund research projects under Subchapter FF, Chapter 61, 
Education Code.
	SECTION 2.  Chapter 61, Education Code, is amended by adding 
Subchapter FF to read as follows:

SUBCHAPTER FF.  GRANTS TO FOSTER AND SUPPORT

ALTERNATIVE RESEARCH CENTERS
	Sec. 61.9751.  PURPOSES OF PROGRAM.  The purposes of the 
program administered under this subchapter are to support research 
in science and technology that has significant potential to promote 
economic development in this state, and to foster new centers of 
research excellence and diversify the research capacity of this 
state, by awarding grants to support research conducted in 
collaboration with the private sector at public or private 
institutions of higher education that are not currently major 
recipients of federal research funding.
	Sec. 61.9752.  ELIGIBLE INSTITUTION DEFINED.  In this 
subchapter, "eligible institution" means a public or private or 
independent institution of higher education, or a separately 
administered school, campus, or institute of an institution of 
higher education, that performs research in science and technology 
and that has received an average of less than $10 million in federal 
research grant funding, as determined by the board, in each of the 
most recent five fiscal years for which the information is 
available to the board.
	Sec. 61.9753.  ADMINISTRATION OF PROGRAM; GRANT CRITERIA. 
(a) The board shall develop and implement a program under which the 
board makes recommendations to the governor regarding science and 
technology research projects conducted at eligible institutions 
that the board determines should be awarded grants from the Texas 
Enterprise Fund established by Section 481.078, Government Code, to 
promote the purposes of the program.  The board, in consultation 
with the governor, shall prescribe procedures for soliciting and 
administering applications for grant recommendations under the 
program and shall prescribe criteria that an eligible institution 
or research project must meet to be recommended for or receive a 
grant under the program.
	(b)  The board may appoint one or more advisory committees to 
advise the coordinating board regarding the board's administration 
of this subchapter.
	(c)  The board must base its recommendations to the governor 
under the program on competitive peer review by qualified experts 
to ensure that funds provided under the program achieve maximum 
effect and that projects receiving grants under the program have 
significant scientific or technological potential and are likely to 
promote the purposes of the program.
	(d)  The board shall consider the availability of matching 
funds in recommending projects for funding to the extent that 
matching funds will promote the purposes of the program, but may not 
condition a recommendation on the availability of matching funds.
	(e)  The board shall consider the extent to which a project 
is or will be conducted with the participation, collaboration, or 
financial support of private industry or other entities that are 
likely to contribute to the success of the project and the practical 
application of the research funded by the grant.
	Sec. 61.9754.  GRANTS; USE OF GRANT FUNDS.  (a)  The governor 
may award a grant from the Texas Enterprise Fund established by 
Section 481.078, Government Code, to a project for which the board 
recommends funding under the program.  A grant must cover a period 
of not less than two years and the amount of a grant may not exceed 
$250,000.
	(b)  The board shall provide for monitoring of each project 
funded under the program to ensure grant funds are used effectively 
for their intended purposes and to determine the effectiveness of 
the grant and of the program.  Receipt of funds after the first year 
of funding must be conditioned on an annual assessment by qualified 
experts to ensure that the project is making sufficient progress to 
merit continued funding.
	(c)  The intellectual property policies of the eligible 
institution conducting or sponsoring the research funded under the 
program apply to the research project and to any scientific and 
technological developments, including inventions, discoveries, 
trade secrets, and computer software, resulting from the research 
project.
	SECTION 3.  This Act takes effect September 1, 2005.