The bill establishes the STEM Excellence Graduate Fellowship program, which is designed to provide merit-based fellowships for high-achieving research doctoral students in science, technology, engineering, and mathematics (STEM) fields. The program will be administered by the Texas Higher Education Coordinating Board, which will award fellowships to eligible students to conduct research at general academic teaching institutions. The board is also authorized to contract with these institutions to assist in the administration of the program, including application reviews and fund distribution. Additionally, the board may create advisory committees to recommend rules for the program's administration.

To qualify for the fellowship, students must be U.S. citizens, obtain necessary federal security clearances, and meet specific academic criteria set by their institutions. They must also be enrolled in a research doctoral program in a STEM field and comply with any additional requirements established by the board. The bill outlines the criteria for both initial and continuing eligibility, including maintaining a minimum GPA and the federal security clearance. Furthermore, the board is permitted to solicit and utilize grants, gifts, and donations to support the program, and it is not required to follow negotiated rulemaking procedures for the adoption of rules related to the program.

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