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  H.B. No. 1000
 
 
 
 
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 to eligible institutions for the purposes of this
  subchapter [to eligible institutions].
         (a-1)  In each state fiscal year, amounts shall be
  appropriated to eligible institutions based on the average amount
  of total research funds expended by each institution per year for
  the three preceding state fiscal years.
         (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:
                     (A)  The University of Texas at Austin or Texas
  A&M University; or
                     (B)  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.  FUNDING [ADMINISTRATION]. [(a)] The Texas
  comprehensive research [development] fund consists of money
  appropriated by the legislature to eligible institutions for the
  purposes of this subchapter [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.  The heading to Section 62.095, Education Code,
  is amended to read as follows:
         Sec. 62.095.  APPROPRIATION [APPORTIONMENT] OF FUND TO
  ELIGIBLE INSTITUTIONS.
         SECTION 10.  Section 62.095(a), Education Code, is amended
  to read as follows:
         (a)  In each state fiscal year, amounts [the comptroller
  shall distribute the total amount of all assets in the research
  development fund to eligible institutions. The amount] shall be
  appropriated to [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.  The heading to Section 62.096, Education Code,
  is amended to read as follows:
         Sec. 62.096.  VERIFICATION [OF ALLOCATION FACTORS].
         SECTION 12.  Sections 62.096(a) and (b), Education Code, are
  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).
         (b)  For purposes of this subchapter and Subchapter F-1, the 
  [The] coordinating board shall convene a committee composed 
  [comprised] of persons designated by the presidents of eligible
  institutions to approve the allocations standards and accounting
  methods established by the coordinating board and to consider
  appeals authorized by Subsection (e) or Section 62.135(b) [by
  October 1, 2003].
         SECTION 13.  Section 62.097, Education Code, is amended to
  read as follows:
         Sec. 62.097.  USE OF APPROPRIATED [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 14.  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.  FUNDING. The core research support fund
  consists of money appropriated by the legislature to eligible
  institutions for the purposes of this subchapter.
         Sec. 62.134.  APPROPRIATION OF FUND TO ELIGIBLE
  INSTITUTIONS. In each state fiscal year, amounts shall be
  appropriated to eligible institutions as follows:
               (1)  50 percent based on the average amount of
  restricted research funds expended by each institution per year for
  the three preceding state fiscal years, determined in the manner
  described by Section 62.095(b); and
               (2)  50 percent based on the average amount of total
  research funds expended by each institution per year for the three
  preceding state fiscal years, determined in the manner described by
  Section 62.053(b).
         Sec. 62.135.  VERIFICATION. (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. 62.136.  USE OF APPROPRIATED 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. 62.137.  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 15.  Sections 62.0925 and 62.094, Education Code,
  are repealed.
         SECTION 16.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1000 was passed by the House on May
  12, 2015, by the following vote:  Yeas 125, Nays 15, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1000 was passed by the Senate on May
  27, 2015, by the following vote:  Yeas 27, Nays 4.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor