83R18770 KEL-F
 
  By: Branch, Patrick H.B. No. 2753
 
  Substitute the following for H.B. No. 2753:
 
  By:  Branch C.S.H.B. No. 2753
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to excellence funding for health-related institutions of
  higher education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 62, Education Code, is amended by adding
  Subchapter H to read as follows:
  SUBCHAPTER H. EXCELLENCE FUND FOR
  HEALTH-RELATED INSTITUTIONS
         Sec. 62.161.  PURPOSE. The purpose of this subchapter is to
  sustain and expand levels of excellence in all aspects of the
  missions of health-related institutions to educate and train the
  health care workforce, to provide excellent clinical care, and to
  develop new ways to treat diseases and address the health issues
  facing Texas and the nation.
         Sec. 62.162.  DEFINITIONS. In this subchapter:
               (1)  "Eligible institution" means a health-related
  institution that is eligible to receive distributions of money
  under this subchapter.
               (2)  "Health-related institution" means:
                     (A)  The Texas A&M University System Health
  Science Center;
                     (B)  The University of Texas Medical Branch at
  Galveston;
                     (C)  The University of Texas Southwestern Medical
  Center;
                     (D)  The University of Texas Health Science Center
  at San Antonio;
                     (E)  The University of Texas Health Science Center
  at Houston;
                     (F)  the University of North Texas Health Science
  Center at Fort Worth; and
                     (G)  Texas Tech University Health Sciences
  Center.
         Sec. 62.163.  EXCELLENCE FUND. (a) The excellence fund for
  health-related institutions is an account in the general revenue
  fund and consists of money appropriated or transferred to the
  credit of the fund under this section or other law.
         (b)  The comptroller may accept gifts or grants for the fund
  from any public or private source.
         Sec. 62.164.  ELIGIBLE INSTITUTIONS; CONTRIBUTION. (a) To
  be eligible for annual distributions from the fund, a
  health-related institution must:
               (1)  have a medical school; and
               (2)  make a one-time, initial transfer to the fund from
  the institution's non-formula appropriations in an amount of not
  less than $2.5 million, as determined by the institution, and as
  specified in the General Appropriations Act.
         (b)  In making appropriations of the money in the fund, the
  legislature shall ensure that each eligible institution, before the
  end of the state fiscal biennium following the biennium in which the
  institution made the initial transfer to the fund as required by
  Subsection (a)(2), receives total distributions from the fund in an
  amount that is equal to or exceeds the amount of its initial
  transfer.
         Sec. 62.165.  DISTRIBUTIONS TO INSTITUTIONS. (a) In each
  state fiscal year, an eligible institution is entitled to receive a
  share of the money in the fund in proportion to the institution's
  percentage of the total points awarded under Subsection (b) for
  that fiscal year.  If in a state fiscal biennium the total amount of
  the institution's shares of the money in the fund is less than any
  amount the institution is entitled to receive in that biennium
  under Section 62.164(b), the institution's share for each fiscal
  year shall be increased by the amount necessary to comply with
  Section 62.164(b), and the shares of the other institutions shall
  be reduced accordingly.
         (b)  For each state fiscal year, a total of 25 points is
  awarded to eligible institutions for each of the following metrics,
  with each institution receiving points, or fractional points
  rounded to the nearest hundredth, in proportion to the
  institution's share of the aggregate amount, for all eligible
  institutions, of the applicable amounts described in each of the
  following categories:
               (1)  Sponsored Research--the dollar amount of federal
  and private research expenditures as reflected in the coordinating
  board's annual research expenditures report;
               (2)  Faculty Quality--the number of awards to faculty,
  such as Nobel Prizes and memberships in national academies, by
  entities recognized for that purpose in the coordinating board's
  accountability system;
               (3)  Doctoral Degrees--the number of doctoral degrees
  awarded, as reflected in the coordinating board's accountability
  system;
               (4)  Philanthropy--the dollar amount of cash gifts
  received as reported in the Council for Aid to Education's
  voluntary support of education survey or in the institutions'
  Internal Revenue Service Form 990, whichever is considered
  appropriate for the institution by the coordinating board;
               (5)  Commercialization--the number of licensing
  agreements executed, as reported in the coordinating board's
  technology development and transfer report; and
               (6)  Patents--the number of patents awarded, as
  reported in the coordinating board's technology development and
  transfer report.
         (c)  For each state fiscal biennium, each metric prescribed
  by Subsection (b) is determined using the average of the applicable
  numbers or amounts for the three preceding years for which the
  information is available, as determined on the January 1 preceding
  the biennium, and the determined average governs distributions from
  the fund for each year of that biennium.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.