84R11911 KEL-F
 
  By: Zerwas H.B. No. 1000
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to state support for general academic teaching
  institutions in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subchapter C, Chapter 62,
  Education Code, is amended to read as follows:
  SUBCHAPTER C. TEXAS RESEARCH UNIVERSITY [COMPETITIVE KNOWLEDGE]
  FUND
         SECTION 2.  Sections 62.051(1) and (2), Education Code, are
  amended to read as follows:
               (1)  "Eligible institution" means an institution of
  higher education that[:
                     [(A)]  is designated as a 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 research university
  [competitive knowledge] fund.
         SECTION 3.  Section 62.052, Education Code, is amended to
  read as follows:
         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.
         SECTION 4.  Section 62.053, Education Code, is amended to
  read as follows:
         Sec. 62.053.  FUND. (a) The Texas research university
  [competitive knowledge] fund consists of money appropriated by the
  legislature for the purposes of this subchapter to eligible
  institutions.
         (b)  For purposes of this subchapter [section], 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.
         SECTION 5.  The heading to Subchapter E, Chapter 62,
  Education Code, is amended to read as follows:
  SUBCHAPTER E. TEXAS COMPREHENSIVE RESEARCH [DEVELOPMENT] FUND
         SECTION 6.  Section 62.091, Education Code, is amended to
  read as follows:
         Sec. 62.091.  PURPOSE. The Texas comprehensive research
  [development] fund is established to provide funding to promote
  increased research capacity at eligible general academic teaching
  institutions.
         SECTION 7.  Section 62.092, Education Code, is amended by
  amending Subdivision (2) and adding Subdivision (3) to read as
  follows:
               (2)  "Eligible institution" means a general academic
  teaching institution[,] as defined by Section 61.003, other than
  The University of Texas at Austin or Texas A&M University or an
  institution of higher education described by Section 62.132(2).
               (3)  "Fund" means the Texas comprehensive research
  fund.
         SECTION 8.  Section 62.093, Education Code, is amended to
  read as follows:
         Sec. 62.093.  ADMINISTRATION. (a) The Texas comprehensive
  research [development] fund is a fund outside the state treasury in
  the custody of the comptroller.
         (b)  The comptroller shall administer and invest the
  [research development] fund.
         SECTION 9.  Section 62.094, Education Code, is amended to
  read as follows:
         Sec. 62.094.  FUNDING. (a) The [research development] fund
  consists of the amounts appropriated or transferred to the credit
  of the fund under this section or other law.
         (b)  The comptroller shall deposit all interest, dividends,
  and other income earned from investment of the [research
  development] fund to the credit of the fund.
         (c)  The comptroller may accept gifts or grants from any
  public or private source for the [research development] fund.
         SECTION 10.  Section 62.095(a), Education Code, is amended
  to read as follows:
         (a)  In each state fiscal year, the comptroller shall
  distribute the total amount of all assets in the [research
  development] fund to eligible institutions. The amount shall be
  apportioned among the eligible institutions based on the average
  amount of restricted research funds expended by each institution
  per year for the three preceding state fiscal years.
         SECTION 11.  Section 62.096(a), Education Code, is amended
  to read as follows:
         (a)  For purposes of this subchapter and Subchapter F-1, the
  coordinating board shall prescribe standards and accounting
  methods for determining the amount of restricted research funds
  expended [by an eligible institution] in a state fiscal year:
               (1)  under this subchapter by an eligible institution;
  or
               (2)  under Subchapter F-1 by an eligible institution,
  as that term is defined by Section 62.132(2).
         SECTION 12.  Section 62.097, Education Code, is amended to
  read as follows:
         Sec. 62.097.  USE OF ALLOCATED AMOUNTS. (a) An eligible
  institution may use money received from the [research development]
  fund only for the support and maintenance of educational and
  general activities, including research and student services, that
  promote increased research capacity at the institution.
         (b)  Money received by an institution from the [research
  development] fund in a fiscal year that is not used by the
  institution in that fiscal year may be held and used by the
  institution in subsequent fiscal years.
         SECTION 13.  Chapter 62, Education Code, is amended by
  adding Subchapter F-1 to read as follows:
  SUBCHAPTER F-1. CORE RESEARCH SUPPORT FUND
         Sec. 62.131.  PURPOSE. The core research support fund is
  established to provide funding to promote increased research
  capacity at emerging research universities.
         Sec. 62.132.  DEFINITIONS. In this subchapter:
               (1)  "Coordinating board" means the Texas Higher
  Education Coordinating Board.
               (2)  "Eligible institution" means an institution of
  higher education that is designated as an emerging research
  university under the coordinating board's accountability system.
               (3)  "Fund" means the core research support fund.
         Sec. 62.133.  ADMINISTRATION. (a) The core research
  support fund is a fund outside the state treasury in the custody of
  the comptroller.
         (b)  The comptroller shall administer and invest the fund.
         Sec. 62.134.  FUNDING. (a) The fund consists of the amounts
  appropriated or transferred to the credit of the fund under this
  section or other law.
         (b)  The comptroller shall deposit all interest, dividends,
  and other income earned from investment of the fund to the credit of
  the fund.
         (c)  The comptroller may accept gifts or grants from any
  public or private source for the fund.
         Sec. 62.135.  APPORTIONMENT OF FUND TO ELIGIBLE
  INSTITUTIONS. (a) In each state fiscal year, the comptroller shall
  distribute the total amount of all assets in the fund to eligible
  institutions. The amount shall be apportioned among the eligible
  institutions based on the average amount of restricted research
  funds expended by each institution per year for the three preceding
  state fiscal years.
         (b)  For purposes of Subsection (a), the amount of restricted
  research funds expended by an institution in a 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 under Section 62.096.
         (c)  Beginning with the first distributions from the fund
  under this subchapter, an eligible institution that previously
  incurred an appropriation reduction under Section 62.0535 is
  entitled to an amount from the fund in addition to the amount
  apportioned under Subsection (a) until the institution receives a
  total additional amount under this subsection equal to the amount
  of the previous appropriation reduction.  Amounts distributed under
  this subsection must be specifically appropriated for this purpose.
         Sec. 62.136.  VERIFICATION OF ALLOCATION FACTORS. (a)  The
  coordinating board may audit the appropriate records of an eligible
  institution to verify information for purposes of this subchapter.
         (b)  For final determination of eligibility, an eligible
  institution may appeal to the advisory committee described by
  Section 62.096 the coordinating board's decision regarding the
  institution's verified information relating to the amounts of
  restricted research expended.
         Sec. 62.137.  USE OF ALLOCATED AMOUNTS. (a) An eligible
  institution may use money received from the fund only for the
  support and maintenance of educational and general activities,
  including research and student services, that promote increased
  research capacity at the institution.
         (b)  Money received by an institution from the fund in a
  fiscal year that is not used by the institution in that fiscal year
  may be held and used by the institution in subsequent fiscal years.
         Sec. 62.138.  ANNUAL REPORT. (a) Each eligible institution
  that receives money under this subchapter in a state fiscal year
  shall prepare a report at the end of that fiscal year describing the
  manner in which the institution used the money. The institution
  shall include in the report information regarding the use of money
  spent in that fiscal year that was received under this subchapter in
  a preceding fiscal year.
         (b)  The institution shall deliver a copy of the report to
  the coordinating board and the Legislative Budget Board not later
  than December 1 after the end of the fiscal year. The Legislative
  Budget Board may establish requirements for the form and content of
  the report.
         (c)  The institution shall include in the report information
  on the use or other disposition of money the institution previously
  received from the Texas excellence fund or the university research
  fund, if the institution spent money from either of those funds in
  the fiscal year of the report.
         SECTION 14.  Sections 62.0925 and 62.096(b), Education Code,
  are repealed.
         SECTION 15.  This Act takes effect September 1, 2015.