Texas 2009 - 81st Regular

Texas House Bill HB4453 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Branch H.B. No. 4453
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the national research university fund and the
7	7	allocation of amounts appropriated from the fund, the abolition of
8	8	the higher education fund, and the institutional groupings
9	9	established by the Texas Higher Education Coordinating Board.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subchapter C, Chapter 61, Education Code, is
12	12	amended by adding Section 61.0904 to read as follows:
13	13	Sec. 61.0904. INSTITUTIONAL GROUPINGS. (a) In its
14	14	accountability system, the board shall establish institutional
15	15	groupings for classification of institutions of higher education,
16	16	including a grouping for research universities, emerging research
17	17	universities, doctoral universities, comprehensive universities,
18	18	and masters universities.
19	19	(b) In each state fiscal biennium, the board shall conduct a
20	20	review of the institutional groupings, including a review of the
21	21	criteria for and definitions assigned to those groupings.
22	22	SECTION 2. The heading to Chapter 62, Education Code, is
23	23	amended to read as follows:
24	24	CHAPTER 62. CONSTITUTIONAL AND STATUTORY [DIVISION OF
25	25	CONSTITUTIONALLY APPROPRIATED] FUNDS TO SUPPORT [AMONG CERTAIN]
26	26	INSTITUTIONS OF HIGHER EDUCATION[; RESEARCH DEVELOPMENT FUND]
27	27	SECTION 3. Chapter 62, Education Code, is amended by adding
28	28	Subchapter D to read as follows:
29	29	SUBCHAPTER D. NATIONAL RESEARCH UNIVERSITY FUND
30	30	Sec. 62.071. PURPOSE. The purpose of this subchapter is to
31	31	allocate appropriations from the national research university fund
32	32	to provide a dedicated, independent, and equitable source of
33	33	funding to enable emerging research universities in this state to
34	34	achieve national prominence as major research universities.
35	35	Sec. 62.072. DEFINITIONS. In this subchapter:
36	36	(1) "Coordinating board" means the Texas Higher
37	37	Education Coordinating Board.
38	38	(2) "Eligible institution" means a general academic
39	39	teaching institution that is eligible to receive distributions of
40	40	money under this subchapter.
41	41	(3) "Fund" means the national research university
42	42	fund.
43	43	(4) "General academic teaching institution" has the
44	44	meaning assigned by Section 61.003.
45	45	Sec. 62.073. ADMINISTRATION AND INVESTMENT OF FUND.
46	46	(a) The national research university fund is a fund outside the
47	47	state treasury in the custody of the comptroller.
48	48	(b) The comptroller shall administer and invest the fund in
49	49	accordance with Section 20, Article VII, Texas Constitution.
50	50	Sec. 62.074. FUNDING. (a) The fund consists of any
51	51	amounts appropriated or transferred to the credit of the fund under
52	52	the Texas Constitution or otherwise appropriated or transferred to
53	53	the credit of the fund under this section or another law.
54	54	(b) The comptroller shall deposit to the credit of the fund
55	55	all interest, dividends, and other income earned from investment of
56	56	the fund.
57	57	(c) The comptroller may accept gifts or grants from any
58	58	public or private source for the fund.
59	59	Sec. 62.075. ELIGIBILITY TO RECEIVE DISTRIBUTIONS FROM
60	60	FUND. (a) A general academic teaching institution is eligible to
61	61	receive a distribution of money under this subchapter for each year
62	62	of a state fiscal biennium if:
63	63	(1) the institution is designated as an emerging
64	64	research university under the coordinating board's accountability
65	65	system;
66	66	(2) in each of the two state fiscal years preceding the
67	67	state fiscal biennium, the institution reported at least $45
68	68	million in restricted research expenditures;
69	69	(3) the aggregate value of the institution's endowment
70	70	funds is at least $500 million; and
71	71	(4) the institution satisfies at least two of the
72	72	following criteria:
73	73	(A) at least 200 doctor of philosophy degrees
74	74	were awarded by the institution during each of the two academic
75	75	years preceding the state fiscal biennium;
76	76	(B) the entering freshman class for each of those
77	77	two academic years demonstrated high academic achievement, as
78	78	determined according to standards prescribed by the coordinating
79	79	board;
80	80	(C) designated as an American Research Library or
81	81	has a Phi Beta Kappa chapter; and
82	82	(D) the faculty of the institution for each of
83	83	those two academic years was of high quality, as determined
84	84	according to coordinating board standards based on the professional
85	85	achievement and recognition of the institution's faculty,
86	86	including the election of faculty members to national academies.
87	87	(b) A general academic teaching institution that becomes
88	88	eligible under Subsection (a) to receive a distribution of money
89	89	under this subchapter remains eligible to receive a distribution of
90	90	money under this subchapter in each subsequent state fiscal year.
91	91	Sec. 62.076. INELIGIBILITY OF INSTITUTIONS RECEIVING
92	92	PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE. The University
93	93	of Texas at Austin, Texas A&M University, and Prairie View A&M
94	94	University are ineligible to receive money under this subchapter.
95	95	Sec. 62.077. ALLOCATION OF APPROPRIATED FUNDS TO ELIGIBLE
96	96	INSTITUTIONS. In each state fiscal year, the comptroller shall
97	97	distribute to eligible institutions the total amount appropriated
98	98	from the fund for that fiscal year. The amount allocated to the
99	99	eligible institutions shall be based on an equitable formula
100	100	adopted by the legislature to carry out the purposes of the fund as
101	101	established by Section 20, Article VII, Texas Constitution. The
102	102	coordinating board may make recommendations regarding the formula
103	103	and provide such assistance as directed by the legislature.
104	104	Sec. 62.078. USE OF ALLOCATED AMOUNTS. (a) An eligible
105	105	institution may use money received under this subchapter only for
106	106	the support and maintenance of educational and general activities
107	107	that promote increased research capacity at the institution.
108	108	(b) For purposes of Subsection (a), permitted activities
109	109	include the use of the money to:
110	110	(1) provide faculty support and pay faculty salaries;
111	111	(2) purchase equipment or library materials;
112	112	(3) pay graduate stipends; and
113	113	(4) support research performed at the institution,
114	114	including undergraduate research.
115	115	(c) Money received in a fiscal year by an institution under
116	116	this subchapter that is not used in that fiscal year by the
117	117	institution may be held and used by the institution in subsequent
118	118	fiscal years for the purposes prescribed by this section.
119	119	Sec. 62.079. VERIFICATION OF FACTORS. (a) For purposes of
120	120	this subchapter, the coordinating board shall prescribe standards
121	121	and accounting methods for determining the value of the factors to
122	122	establish the eligibility of an institution in a state fiscal year.
123	123	(b) The coordinating board, as soon as practicable in each
124	124	even-numbered year no later than December 31, shall provide the
125	125	legislature with verified information relating to the value of the
126	126	factors to establish eligible institutions for the national
127	127	research university fund under this subchapter.
128	128	(c) The coordinating board in consultation with the State
129	129	Auditor's Office shall validate the appropriate measures of an
130	130	eligible institution to verify the reported values of the factors
131	131	for purposes of this subchapter.
132	132	SECTION 4. Section 62.094, Education Code, is amended to
133	133	read as follows:
134	134	Sec. 62.094. FUNDING. (a) The research development fund
135	135	consists of the [amount deposited to the credit of the fund under
136	136	Section 62.025 in each state fiscal year, the amount appropriated
137	137	or transferred to the credit of the fund by the legislature under
138	138	Subsection (b), and any other] amounts appropriated or transferred
139	139	to the credit of the fund under this section or other law.
140	140	(b) [In each state fiscal year, the legislature may
141	141	appropriate or provide for the transfer to the credit of the
142	142	research development fund of an amount not less than the amount
143	143	deposited to the credit of the fund under Section 62.025 in that
144	144	fiscal year.
145	145	[(c)] The comptroller shall deposit all interest,
146	146	dividends, and other income earned from investment of the research
147	147	development fund to the credit of the fund.
148	148	(c) [(d)] The comptroller may accept gifts or grants from
149	149	any public or private source for the research development fund.
150	150	SECTION 5. Sections 62.025 and 62.026, Education Code, are
151	151	repealed.
152	152	SECTION 6. This Act takes effect January 1, 2010, but only
153	153	if the constitutional amendment proposed by the 81st Legislature,
154	154	Regular Session, 2009, establishing the national research
155	155	university fund to enable emerging research universities in this
156	156	state to achieve national prominence as major research universities
157	157	and transferring the balance of the higher education fund to the
158	158	national research university fund is approved by the voters. If
159	159	that constitutional amendment is not approved by the voters, this
160	160	Act does not take effect.