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          A BILL TO BE ENTITLED
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          AN ACT
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        relating to state support for general academic teaching  | 
      
      
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        institutions in this state. | 
      
      
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               BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
      
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               SECTION 1.  The heading to Subchapter C, Chapter 62,  | 
      
      
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        Education Code, is amended to read as follows: | 
      
      
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        SUBCHAPTER C.  TEXAS RESEARCH UNIVERSITY [COMPETITIVE KNOWLEDGE]  | 
      
      
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        FUND | 
      
      
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               SECTION 2.  Sections 62.051(1) and (2), Education Code, are  | 
      
      
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        amended to read as follows: | 
      
      
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                     (1)  "Eligible institution" means an institution of  | 
      
      
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        higher education that[:
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                           [(A)]  is designated as a research university  | 
      
      
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        under the coordinating board's accountability system and, for any  | 
      
      
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        three consecutive state fiscal years beginning on or after  | 
      
      
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        September 1, 2010, made total annual research expenditures in an  | 
      
      
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        average annual amount of not less than $450 million[; or
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                           [(B)
           
           
          is designated as an emerging research 
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          university under the coordinating board's accountability system 
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          and, for any three consecutive state fiscal years beginning on or 
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          after September 1, 2010, made total annual research expenditures in 
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          an average annual amount of not less than $50 million]. | 
      
      
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                     (2)  "Fund" means the Texas research university  | 
      
      
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        [competitive knowledge] fund. | 
      
      
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               SECTION 3.  Section 62.052, Education Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 62.052.  PURPOSE. The purpose of this subchapter is to  | 
      
      
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        provide funding to eligible research universities [and emerging 
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          research universities] to support faculty to ensure excellence in  | 
      
      
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        instruction and research. | 
      
      
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               SECTION 4.  Section 62.053, Education Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 62.053.  FUND.  (a) The Texas research university  | 
      
      
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        [competitive knowledge] fund consists of money appropriated by the  | 
      
      
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        legislature to eligible institutions for the purposes of this  | 
      
      
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        subchapter [to eligible institutions]. | 
      
      
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               (b)  For purposes of this subchapter [section], the amount of  | 
      
      
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        total research funds expended by an eligible institution in a state  | 
      
      
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        fiscal year is the amount of those funds as reported to the  | 
      
      
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        coordinating board by the institution for that fiscal year, subject  | 
      
      
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        to any adjustment by the coordinating board in accordance with the  | 
      
      
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        standards and accounting methods the coordinating board prescribes  | 
      
      
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        for purposes of this section. | 
      
      
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               SECTION 5.  The heading to Subchapter E, Chapter 62,  | 
      
      
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        Education Code, is amended to read as follows: | 
      
      
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        SUBCHAPTER E.  TEXAS COMPREHENSIVE RESEARCH [DEVELOPMENT] FUND | 
      
      
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               SECTION 6.  Section 62.091, Education Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 62.091.  PURPOSE.  The Texas comprehensive research  | 
      
      
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        [development] fund is established to provide funding to promote  | 
      
      
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        increased research capacity at eligible general academic teaching  | 
      
      
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        institutions. | 
      
      
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               SECTION 7.  Section 62.092, Education Code, is amended by  | 
      
      
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        amending Subdivision (2) and adding Subdivision (3) to read as  | 
      
      
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        follows: | 
      
      
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                     (2)  "Eligible institution" means a general academic  | 
      
      
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        teaching institution[,] as defined by Section 61.003, other than: | 
      
      
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                           (A)  The University of Texas at Austin or Texas  | 
      
      
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        A&M University; or | 
      
      
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                           (B)  an institution of higher education described  | 
      
      
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        by Section 62.132(2). | 
      
      
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                     (3)  "Fund" means the Texas comprehensive research  | 
      
      
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        fund. | 
      
      
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               SECTION 8.  Section 62.093, Education Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 62.093.  FUNDING [ADMINISTRATION].  [(a)]  The Texas  | 
      
      
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        comprehensive research [development] fund consists of money  | 
      
      
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        appropriated by the legislature to eligible institutions for the  | 
      
      
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        purposes of this subchapter [is a fund outside the state treasury in 
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          the custody of the comptroller]. | 
      
      
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               [(b)
           
           
          The comptroller shall administer and invest the 
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          research development fund.] | 
      
      
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               SECTION 9.  The heading to Section 62.095, Education Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               Sec. 62.095.  APPROPRIATION [APPORTIONMENT] OF FUND TO  | 
      
      
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        ELIGIBLE INSTITUTIONS. | 
      
      
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               SECTION 10.  Section 62.095(a), Education Code, is amended  | 
      
      
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        to read as follows: | 
      
      
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               (a)  In each state fiscal year, amounts [the comptroller 
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          shall distribute the total amount of all assets in the research 
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          development fund to eligible institutions.  The amount] shall be  | 
      
      
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        appropriated to [apportioned among the] eligible institutions  | 
      
      
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        based on the average amount of restricted research funds expended  | 
      
      
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        by each institution per year for the three preceding state fiscal  | 
      
      
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        years. | 
      
      
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               SECTION 11.  The heading to Section 62.096, Education Code,  | 
      
      
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        is amended to read as follows: | 
      
      
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               Sec. 62.096.  VERIFICATION [OF ALLOCATION FACTORS]. | 
      
      
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               SECTION 12.  Sections 62.096(a) and (b), Education Code, are  | 
      
      
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        amended to read as follows: | 
      
      
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               (a)  For purposes of this subchapter and Subchapter F-1, the  | 
      
      
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        coordinating board shall prescribe standards and accounting  | 
      
      
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        methods for determining the amount of restricted research funds  | 
      
      
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        expended [by an eligible institution] in a state fiscal year: | 
      
      
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                     (1)  under this subchapter by an eligible institution;   | 
      
      
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        or | 
      
      
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                     (2)  under Subchapter F-1 by an eligible institution,  | 
      
      
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        as that term is defined by Section 62.132(2). | 
      
      
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               (b)  For purposes of this subchapter and Subchapter F-1, the  | 
      
      
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        [The] coordinating board shall convene a committee composed  | 
      
      
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        [comprised] of persons designated by the presidents of eligible  | 
      
      
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        institutions to approve the allocations standards and accounting  | 
      
      
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        methods established by the coordinating board and to consider  | 
      
      
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        appeals authorized by Subsection (e) or Section 62.135(b) [by 
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          October 1, 2003]. | 
      
      
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               SECTION 13.  Section 62.097, Education Code, is amended to  | 
      
      
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        read as follows: | 
      
      
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               Sec. 62.097.  USE OF APPROPRIATED [ALLOCATED] AMOUNTS.  (a)   | 
      
      
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        An eligible institution may use money received from the [research 
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          development] fund only for the support and maintenance of  | 
      
      
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        educational and general activities, including research and student  | 
      
      
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        services, that promote increased research capacity at the  | 
      
      
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        institution. | 
      
      
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               (b)  Money received by an institution from the [research 
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          development] fund in a fiscal year that is not used by the  | 
      
      
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        institution in that fiscal year may be held and used by the  | 
      
      
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        institution in subsequent fiscal years. | 
      
      
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               SECTION 14.  Chapter 62, Education Code, is amended by  | 
      
      
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        adding Subchapter F-1 to read as follows: | 
      
      
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        SUBCHAPTER F-1.  CORE RESEARCH SUPPORT FUND | 
      
      
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               Sec. 62.131.  PURPOSE.  The core research support fund is  | 
      
      
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        established to provide funding to promote increased research  | 
      
      
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        capacity at emerging research universities. | 
      
      
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               Sec. 62.132.  DEFINITIONS.  In this subchapter: | 
      
      
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                     (1)  "Coordinating board" means the Texas Higher  | 
      
      
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        Education Coordinating Board. | 
      
      
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                     (2)  "Eligible institution" means an institution of  | 
      
      
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        higher education that is designated as an emerging research  | 
      
      
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        university under the coordinating board's accountability system. | 
      
      
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                     (3)  "Fund" means the core research support fund. | 
      
      
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               Sec. 62.133.  FUNDING.  The core research support fund  | 
      
      
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        consists of money appropriated by the legislature to eligible  | 
      
      
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        institutions for the purposes of this subchapter. | 
      
      
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               Sec. 62.134.  APPROPRIATION OF FUND TO ELIGIBLE  | 
      
      
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        INSTITUTIONS.  In each state fiscal year, amounts shall be  | 
      
      
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        appropriated to eligible institutions as follows: | 
      
      
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                     (1)  50 percent based on the average amount of  | 
      
      
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        restricted research funds expended by each institution per year for  | 
      
      
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        the three preceding state fiscal years, determined in the manner  | 
      
      
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        described by Section 62.095(b); and | 
      
      
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                     (2)  50 percent based on the amount of total research  | 
      
      
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        funds expended by each eligible institution in a state fiscal year,  | 
      
      
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        determined in the manner described by Section 62.053(b). | 
      
      
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               Sec. 62.135.  VERIFICATION.  (a)  The coordinating board may  | 
      
      
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        audit the appropriate records of an eligible institution to verify  | 
      
      
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        information for purposes of this subchapter. | 
      
      
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               (b)  For final determination of eligibility, an eligible  | 
      
      
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        institution may appeal to the advisory committee described by  | 
      
      
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        Section 62.096 the coordinating board's decision regarding the  | 
      
      
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        institution's verified information relating to the amounts of  | 
      
      
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        restricted research expended. | 
      
      
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               Sec. 62.136.  USE OF APPROPRIATED AMOUNTS.  (a)  An eligible  | 
      
      
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        institution may use money received from the fund only for the  | 
      
      
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        support and maintenance of educational and general activities,  | 
      
      
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        including research and student services, that promote increased  | 
      
      
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        research capacity at the institution. | 
      
      
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               (b)  Money received by an institution from the fund in a  | 
      
      
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        fiscal year that is not used by the institution in that fiscal year  | 
      
      
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        may be held and used by the institution in subsequent fiscal years. | 
      
      
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               Sec. 62.137.  ANNUAL REPORT.  (a)  Each eligible institution  | 
      
      
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        that receives money under this subchapter in a state fiscal year  | 
      
      
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        shall prepare a report at the end of that fiscal year describing the  | 
      
      
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        manner in which the institution used the money.  The institution  | 
      
      
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        shall include in the report information regarding the use of money  | 
      
      
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        spent in that fiscal year that was received under this subchapter in  | 
      
      
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        a preceding fiscal year. | 
      
      
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               (b)  The institution shall deliver a copy of the report to  | 
      
      
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        the coordinating board and the Legislative Budget Board not later  | 
      
      
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        than December 1 after the end of the fiscal year.  The Legislative  | 
      
      
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        Budget Board may establish requirements for the form and content of  | 
      
      
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        the report. | 
      
      
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               (c)  The institution shall include in the report information  | 
      
      
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        on the use or other disposition of money the institution previously  | 
      
      
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        received from the Texas excellence fund or the university research  | 
      
      
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        fund, if the institution spent money from either of those funds in  | 
      
      
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        the fiscal year of the report. | 
      
      
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               SECTION 15.  Sections 62.0925 and 62.094, Education Code,  | 
      
      
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        are repealed. | 
      
      
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               SECTION 16.  This Act takes effect September 1, 2015. |