83R21623 KEL-D
By: Branch, Otto, Pitts H.B. No. 2765
Substitute the following for H.B. No. 2765:
By: Branch C.S.H.B. No. 2765
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Texas competitive knowledge fund to
support excellence at qualifying institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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.]
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.
SECTION 3. This Act takes effect September 1, 2013.