By: Branch H.B. No. 4453
A BILL TO BE ENTITLED
AN ACT
relating to the national research university fund and the
allocation of amounts appropriated from the fund, the abolition of
the higher education fund, and the institutional groupings
established by the Texas Higher Education Coordinating Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.0904 to read as follows:
Sec. 61.0904. INSTITUTIONAL GROUPINGS. (a) In its
accountability system, the board shall establish institutional
groupings for classification of institutions of higher education,
including a grouping for research universities, emerging research
universities, doctoral universities, comprehensive universities,
and masters universities.
(b) In each state fiscal biennium, the board shall conduct a
review of the institutional groupings, including a review of the
criteria for and definitions assigned to those groupings.
SECTION 2. The heading to Chapter 62, Education Code, is
amended to read as follows:
CHAPTER 62. CONSTITUTIONAL AND STATUTORY [DIVISION OF
CONSTITUTIONALLY APPROPRIATED] FUNDS TO SUPPORT [AMONG CERTAIN]
INSTITUTIONS OF HIGHER EDUCATION[; RESEARCH DEVELOPMENT FUND]
SECTION 3. Chapter 62, Education Code, is amended by adding
Subchapter D to read as follows:
SUBCHAPTER D. NATIONAL RESEARCH UNIVERSITY FUND
Sec. 62.071. PURPOSE. The purpose of this subchapter is to
allocate appropriations from the national research university fund
to provide a dedicated, independent, and equitable source of
funding to enable emerging research universities in this state to
achieve national prominence as major research universities.
Sec. 62.072. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "Eligible institution" means a general academic
teaching institution that is eligible to receive distributions of
money under this subchapter.
(3) "Fund" means the national research university
fund.
(4) "General academic teaching institution" has the
meaning assigned by Section 61.003.
Sec. 62.073. ADMINISTRATION AND INVESTMENT OF FUND.
(a) The national research university fund is a fund outside the
state treasury in the custody of the comptroller.
(b) The comptroller shall administer and invest the fund in
accordance with Section 20, Article VII, Texas Constitution.
Sec. 62.074. FUNDING. (a) The fund consists of any
amounts appropriated or transferred to the credit of the fund under
the Texas Constitution or otherwise appropriated or transferred to
the credit of the fund under this section or another law.
(b) The comptroller shall deposit to the credit of the fund
all interest, dividends, and other income earned from investment of
the fund.
(c) The comptroller may accept gifts or grants from any
public or private source for the fund.
Sec. 62.075. ELIGIBILITY TO RECEIVE DISTRIBUTIONS FROM
FUND. (a) A general academic teaching institution is eligible to
receive a distribution of money under this subchapter for each year
of a state fiscal biennium if:
(1) the institution is designated as an emerging
research university under the coordinating board's accountability
system;
(2) in each of the two state fiscal years preceding the
state fiscal biennium, the institution reported at least $45
million in restricted research expenditures;
(3) the aggregate value of the institution's endowment
funds is at least $500 million; and
(4) the institution satisfies at least two of the
following criteria:
(A) at least 200 doctor of philosophy degrees
were awarded by the institution during each of the two academic
years preceding the state fiscal biennium;
(B) the entering freshman class for each of those
two academic years demonstrated high academic achievement, as
determined according to standards prescribed by the coordinating
board;
(C) designated as an American Research Library or
has a Phi Beta Kappa chapter; and
(D) the faculty of the institution for each of
those two academic years was of high quality, as determined
according to coordinating board standards based on the professional
achievement and recognition of the institution's faculty,
including the election of faculty members to national academies.
(b) A general academic teaching institution that becomes
eligible under Subsection (a) to receive a distribution of money
under this subchapter remains eligible to receive a distribution of
money under this subchapter in each subsequent state fiscal year.
Sec. 62.076. INELIGIBILITY OF INSTITUTIONS RECEIVING
PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE. The University
of Texas at Austin, Texas A&M University, and Prairie View A&M
University are ineligible to receive money under this subchapter.
Sec. 62.077. ALLOCATION OF APPROPRIATED FUNDS TO ELIGIBLE
INSTITUTIONS. In each state fiscal year, the comptroller shall
distribute to eligible institutions the total amount appropriated
from the fund for that fiscal year. The amount allocated to the
eligible institutions shall be based on an equitable formula
adopted by the legislature to carry out the purposes of the fund as
established by Section 20, Article VII, Texas Constitution. The
coordinating board may make recommendations regarding the formula
and provide such assistance as directed by the legislature.
Sec. 62.078. USE OF ALLOCATED AMOUNTS. (a) An eligible
institution may use money received under this subchapter only for
the support and maintenance of educational and general activities
that promote increased research capacity at the institution.
(b) For purposes of Subsection (a), permitted activities
include the use of the money to:
(1) provide faculty support and pay faculty salaries;
(2) purchase equipment or library materials;
(3) pay graduate stipends; and
(4) support research performed at the institution,
including undergraduate research.
(c) Money received in a fiscal year by an institution under
this subchapter that is not used in that fiscal year by the
institution may be held and used by the institution in subsequent
fiscal years for the purposes prescribed by this section.
Sec. 62.079. VERIFICATION OF FACTORS. (a) For purposes of
this subchapter, the coordinating board shall prescribe standards
and accounting methods for determining the value of the factors to
establish the eligibility of an institution in a state fiscal year.
(b) The coordinating board, as soon as practicable in each
even-numbered year no later than December 31, shall provide the
legislature with verified information relating to the value of the
factors to establish eligible institutions for the national
research university fund under this subchapter.
(c) The coordinating board in consultation with the State
Auditor's Office shall validate the appropriate measures of an
eligible institution to verify the reported values of the factors
for purposes of this subchapter.
SECTION 4. Section 62.094, Education Code, is amended to
read as follows:
Sec. 62.094. FUNDING. (a) The research development fund
consists of the [amount deposited to the credit of the fund under
Section 62.025 in each state fiscal year, the amount appropriated
or transferred to the credit of the fund by the legislature under
Subsection (b), and any other] amounts appropriated or transferred
to the credit of the fund under this section or other law.
(b) [In each state fiscal year, the legislature may
appropriate or provide for the transfer to the credit of the
research development fund of an amount not less than the amount
deposited to the credit of the fund under Section 62.025 in that
fiscal year.
[(c)] The comptroller shall deposit all interest,
dividends, and other income earned from investment of the research
development fund to the credit of the fund.
(c) [(d)] The comptroller may accept gifts or grants from
any public or private source for the research development fund.
SECTION 5. Sections 62.025 and 62.026, Education Code, are
repealed.
SECTION 6. This Act takes effect January 1, 2010, but only
if the constitutional amendment proposed by the 81st Legislature,
Regular Session, 2009, establishing the national research
university fund to enable emerging research universities in this
state to achieve national prominence as major research universities
and transferring the balance of the higher education fund to the
national research university fund is approved by the voters. If
that constitutional amendment is not approved by the voters, this
Act does not take effect.