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SECTION 1. Subchapter C,
Chapter 62, Education Code, is amended to read as follows:
SUBCHAPTER C. TEXAS
COMPETITIVE KNOWLEDGE [RESEARCH UNIVERSITY DEVELOPMENT] FUND
Sec. 62.051. DEFINITIONS. In
this subchapter:
(1) "Eligible
institution" means an institution of higher education that:
(A) is designated as a
research university or emerging research
university under the coordinating board's accountability system; and
(B) for any three
consecutive state fiscal years beginning on or after September 1, 2010,
made total annual research expenditures in an average annual amount of not
less than $50 million.
(2) "Institution of
higher education" has the meaning assigned by Section 61.003.
Sec. 62.052. PURPOSE. The
purpose of this subchapter is to provide funding to research universities
and emerging research universities to support faculty to ensure
excellence in instruction and research [for the recruitment and
retention of highly qualified faculty and the enhancement of research
productivity at those universities].
Sec. 62.053. FUNDING. (a) For each state fiscal year, the
coordinating board shall distribute any funds appropriated by the
legislature for the purposes of this subchapter, and any other funds made
available for the purposes of this subchapter, to eligible institutions
based on the average amount of total research funds expended by each
institution annually during the three most recent state fiscal years, at
the rate of [according to the following rates:
[(1)]
at least $700,000 [$1 million] for every $10 million of the
average annual amount of those research funds expended by the institution[,
if that average amount for the institution is $50 million or more;
and
[(2) at least $500,000 for
every $10 million of the average annual amount of those research funds
expended by the institution, if that average amount for the institution is
less than $50 million].
(b) For purposes of
Subsection (a), the amount of total research funds expended by an eligible
institution in a state fiscal year is the amount of those funds as reported
to the coordinating board by the institution for that fiscal year, subject
to any adjustment by the coordinating board in accordance with the
standards and accounting methods the coordinating board prescribes for
purposes of this section. If the funds
available for distribution for a state fiscal year under Subsection (a) are
not sufficient to provide the amount specified by Subsection (a) for each
eligible institution or exceed the amount sufficient for that purpose, the
available amount shall be distributed in proportion to the total amount to
which each institution is otherwise entitled under Subsection (a).
Sec. 62.054. RULES. The coordinating board shall adopt rules for the
administration of this subchapter[, including any rules the coordinating
board considers necessary regarding the submission to the coordinating
board by eligible institutions of any student data required for the
coordinating board to carry out its duties under this subchapter].
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SECTION 1. Subchapter C,
Chapter 62, Education Code, is amended to read as follows:
SUBCHAPTER C. TEXAS
COMPETITIVE KNOWLEDGE [RESEARCH UNIVERSITY DEVELOPMENT] FUND
Sec. 62.051. DEFINITIONS. In
this subchapter:
(1) "Eligible
institution" means an institution of higher education that:
(A) is designated as a
research university [or emerging research
university] under the coordinating board's accountability system
and,
for any three consecutive
state fiscal years beginning on or after September 1, 2010, made total
annual research expenditures in an average annual amount of not less than $450 million; or
(B) is designated as an emerging research university under the
coordinating board's accountability system and, for any three consecutive
state fiscal years beginning on or after September 1, 2010, made total
annual research expenditures in an average annual amount of not less than
$50 million.
(2)
"Fund" means the Texas competitive knowledge fund.
(3) "Institution
of higher education" has the meaning assigned by Section 61.003.
Sec. 62.052. PURPOSE. The
purpose of this subchapter is to provide funding to eligible research universities and
emerging research universities to support faculty to ensure excellence
in instruction and research [for the recruitment and retention of
highly qualified faculty and the enhancement of research productivity at
those universities].
Sec. 62.053. FUND [FUNDING].
(a) The Texas competitive knowledge fund consists of money [For
each state fiscal year, the coordinating board shall distribute any funds]
appropriated by the legislature for the purposes of this subchapter[,
and any other funds made available for the purposes of this subchapter,]
to eligible institutions [based on the average amount of total research
funds expended by each institution annually during the three most recent
state fiscal years, according to the following rates:
[(1)
at least $1 million for every $10 million of the average annual amount of
those research funds expended by the institution, if that average amount
for the institution is $50 million or more; and
[(2) at least $500,000 for
every $10 million of the average annual amount of those research funds
expended by the institution, if that average amount for the institution is
less than $50 million].
(b) For purposes of this
section [Subsection (a)], the amount of total research funds
expended by an eligible institution in a state fiscal year is the amount of
those funds as reported to the coordinating board by the institution for
that fiscal year, subject to any adjustment by the coordinating board in
accordance with the standards and accounting methods the coordinating board
prescribes for purposes of this section. [If
the funds available for distribution for a state fiscal year under
Subsection (a) are not sufficient to provide the amount specified by
Subsection (a) for each eligible institution or exceed the amount
sufficient for that purpose, the available amount shall be distributed in
proportion to the total amount to which each institution is otherwise
entitled under Subsection (a).]
Sec. 62.0535. INITIAL CONTRIBUTION. For the first state fiscal
biennium in which an eligible institution receives an appropriation under
this subchapter, the institution's other general revenue appropriations
shall be reduced by an amount not to exceed the lesser of $5 million for
the biennium or the amount of the institution's appropriation under this
subchapter for the biennium. The bill making the appropriation must
expressly identify the purpose for which the appropriations were reduced in
accordance with this section.
Sec.
62.054. APPROPRIATION AMOUNTS [RULES]. (a) Of the total
amount appropriated for purposes of this subchapter in a state fiscal year,
an eligible institution is entitled to receive an appropriation in the
amount determined in accordance with this section.
(b) Not less than 50 percent of the total amount appropriated for
purposes of this subchapter shall be appropriated to eligible institutions
described by Section 62.051(1)(A). Each institution is entitled to receive
a share of that amount in proportion to the average amount of total
research funds expended by each institution annually during the three
fiscal years preceding the state fiscal biennium for which the money is
appropriated.
(c) The remainder of the total amount appropriated for purposes of
this subchapter shall be appropriated to eligible institutions described by
Section 62.051(1)(B). Each institution is entitled to receive a share of
that amount in proportion to the average amount of total research funds
expended by each institution annually during the three fiscal years
preceding the state fiscal biennium for which the money is appropriated. [The coordinating board shall adopt rules for
the administration of this subchapter, including any rules
the coordinating board considers necessary regarding the submission to the
coordinating board by eligible institutions of any student data required
for the coordinating board to carry out its duties under this subchapter.]
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SECTION 2. (a) The Texas
Higher Education Coordinating Board, in consultation with institutions of
higher education that are eligible institutions under Subchapter C, Chapter
62, Education Code, as amended by this Act, shall study and make
recommendations regarding the appropriate definitions and categories of
research expenditures to be included and applied in determining an
institution's eligibility for and the amount of distributions from the
Texas competitive knowledge fund established by that subchapter.
(b) Not later than December
1, 2014, the coordinating board shall report its study and deliver its
recommendations to the:
(1) governor;
(2) lieutenant governor;
(3) speaker of the house of
representatives;
(4) chair of the Senate
Committee on Finance;
(5) chair of the Senate
Committee on Higher Education;
(6) chair of the House
Committee on Appropriations; and
(7) chair of the House
Committee on Higher Education.
(c) At the request of an
institution of higher education that consults with the coordinating board
under this section, the coordinating board shall include with its
recommendations the written response of the institution to those
recommendations.
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SECTION 2. Same as introduced
version.
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