By: Zerwas, Faircloth (Senate Sponsor - Seliger)	H.B. No. 1000
	(In the Senate - Received from the House May 13, 2015;
	May 14, 2015, read first time and referred to Committee on Finance;
	May 21, 2015, reported favorably by the following vote:  Yeas 12,
	Nays 1; May 21, 2015, sent to printer.)
Click here to see the committee vote

	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 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.
	* * * * *