The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

1. (1) Advanced Research Program/Advanced Technology Program (ARP/ATP)--research programs administered by the Board under Texas Education Code, Chapters 142 and 143.
2. (2) Advisory committee--The Board's Restricted Research Advisory Committee.
3. (3) Board or Coordinating Board--the Texas Higher Education Coordinating Board.
4. (4) Clinical Trial Agreement--an externally sponsored agreement for the administration of a specifically mandated patient protocol (sometimes in multiple clinical sites involving other institutions), in which some costs typically are paid from patient charges or other sources.
5. (5) Commissioner--Commissioner of Higher Education.
6. (6) Comptroller--the Texas Comptroller of Public Accounts.
7. (7) Demonstration Projects--projects in which the primary purpose is to apply previous Research and Development findings in new settings and to demonstrate their utility.
8. (8) Departmental Research--research, development, and scholarly activities that are not organized research and, consequently, are not separately budgeted by an institution.
9. (9) Development--the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes.
10. (10) Eligible institution or institution--a general academic teaching institution, as defined by Texas Education Code, §61.003, other than The University of Texas at Austin, Texas A&M University, and Prairie View A&M University.
11. (11) Higher Education Assistance Fund (HEAF)--a fund established in Article 7, §17, of the Texas Constitution to fund capital improvements and capital equipment for institutions not included in the Permanent University Fund.
12. (12) Indirect Costs--costs incurred for certain overhead related to administering a particular sponsored project, an instructional activity, or any other institutional activity. Indirect costs are synonymous with "facilities and administrative (F&A) costs."
13. (13) Industrial Collaboration Agreements--agreements with universities, colleges, centers, or institutes under which funds are provided for collaborative R&D activities. The activity must be sponsored by private philanthropic organizations and foundations, for-profit businesses, or individuals.
14. (14) Instruction--the teaching and training activities of an institution. This term includes all teaching and training activities, whether they are offered for credit toward a degree or certificate or on a non-credit basis, and whether they are offered through regular academic departments or separate divisions, such as a summer school division or an extension division.
15. (15) Multiple Function Awards--awards that have multiple goals, such as research, instruction, and public service.
16. (16) Organized research--research and development activities of an institution that are separately budgeted by an institution.
17. (17) Other Sponsored Activities--programs and projects financed by Federal and non-Federal agencies and organizations that involve the performance of work other than instruction and organized research. Examples of such programs and projects are health service projects and community service programs. Other Sponsored Activities may include travel grants, unless for research activities; support for conferences or seminars; support for university public events; provision of non-instructional and economic services beneficial to individuals and groups external to the university such as testing or diagnostic services, surveys, urban planning and mapping, etc.; publications by the university press; support for student participation in community service projects; support for projects pertaining to library collections, acquisitions, bibliographies or cataloging, unless primarily for documented research purposes, or programs to enhance institutional resources, including computer enhancements, unless primarily for documented research purposes.
18. (18) Permanent University Fund (PUF)--A fund established in Article 7, §11, of the Texas Constitution to fund capital improvements and capital equipment at certain institutions of higher education.
19. (19) Pass-Throughs to Subrecipients--external award funds passed from one entity ("pass-through" entity) to another entity (subrecipient). The subrecipient administers the program, expending the award funds on behalf of or in connection with the pass-through entity.
20. (20) Research--a systematic study directed toward fuller scientific knowledge or understanding of the subject studied and the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities.
21. (21) Research and Development (R&D)--all research activities, both basic and applied, and all development activities that are supported at universities, colleges, and other non-profit institutions. R&D also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function. Curriculum development projects may be considered as R&D when the primary purpose of the project is to develop and test an instructional or educational model through appropriate research methodologies, such as data collection, evaluation, dissemination, and publication.
22. (22) Research Development Fund--a fund established outside the state treasury to promote increased research capacity at eligible general academic teaching institutions under Texas Education Code, §§62.091 - 62.098.
23. (23) Restricted funds (restricted awards)--funds for which some external agency or organization has placed limitations on the uses for which the funds may be spent.

24. (24) Sponsored Instruction and Training--specific instructional or training activity established by grant, contract, or cooperative agreement with federal, state, or local governmental agencies; private philanthropic organizations and foundations; for-profit businesses; or individuals. Sponsored Instruction includes:

    1. (A) any project for which the primary purpose is to instruct any student at any location; recipients of this instruction may be university students or staff, teachers or students in elementary or secondary schools, or the general public, except for those activities defined in Paragraph (25) of this section;
    2. (B) curriculum development projects at any level either to improve significantly or to add to an institution's general instructional offerings, and do not include R&D
    3. (C) projects that involve university students in community service activities for which they are receiving academic credit;
    4. (D) activities funded by awards to departments or schools for the support of students, except for those activities defined in paragraph (25), part E of this Section as Sponsored R&D
    5. (E) dissertation work funded by grants, including grants for travel in relation to a dissertation, unless associated with a R&D activity as defined in paragraph (21) of this Section;
    6. (F) outreach programs that bring local students on campus for classes; or
    7. (G) general support for the writing of textbooks or reference books, video, or software to be used as instructional materials.

25. (25) Sponsored Research and Development (Sponsored R&D)--activity funded (sponsored) by grants, gifts, and/or contracts, including sponsored research contracts, that are designated by the sponsor as primarily for R&D purposes. The activity must be sponsored by federal, state, or local governmental agencies; private philanthropic organizations and foundations; for-profit businesses; or individuals. Sponsored R&D includes:

    1. (A) awards to university faculty to support R&D activities;
    2. (B) external faculty "career awards" to support the R&D efforts of the faculty;
    3. (C) external funding to maintain facilities or equipment and/or operation of a center or facility that will be used for R&D
    4. (D) external support for the writing of books, when the purpose of the writing is to publish R&D results;
    5. (E) activities involving the training of individuals in R&D techniques (commonly called R&D training) where such activities utilize the same facilities as other R&D activities and where such activities are not included in the Instruction function;
    6. (F) the research portion of expenditures in the federal work-study program, in accordance with instructions for preparing the annual financial report that is submitted by an institution to the Comptroller after each fiscal year ends; or
    7. (G) clinical trial agreements in which data collection and analysis are the primary components of the institution's role in the trial, excluding costs that are covered by patient charges or similar sources.
26. (26) University Research and Development (University R&D)--activity that is supported by unrestricted university funds that the university has designated for use in R&D, such as unrestricted gifts, distributions from unrestricted endowments, interest income, technology licensing income, fees received from external entities for non-research services, proceeds from cost recovery enterprises, state appropriations not identified specifically by the legislature for R&D purposes, non-capitalized allocations from the PUF or HEAF for R&D purposes other than construction and remodeling, state appropriations made directly to the university for R&D through formula or special item funding including ARP/ATP, or cost-sharing expenditures by the university.

Source Note:The provisions of this §13.122 adopted to be effective May 15, 2005, 30 TexReg 2664.