Texas 2009 - 81st Regular

Texas Senate Bill SB1560 Compare Versions

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1	1	By: Duncan, et al. S.B. No. 1560
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to university funding, including university funding for
7	7	excellence, the national research university 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. Section 61.059, Education Code, is amended by
12	12	adding Subsection (o) to read as follows:
13	13	(o) In addition to the other funding recommendations
14	14	required by this section, biennially the board shall determine the
15	15	amount that the board considers appropriate for purposes of
16	16	providing funding under Section 61.0596 in the following state
17	17	fiscal biennium to carry out the purposes of that section and shall
18	18	make recommendations to the governor and the Legislative Budget
19	19	Board for funding those programs in that biennium. To the extent
20	20	the board considers appropriate, the board may include in the
21	21	formulas established under this section the funding to be provided
22	22	under Section 61.0596.
23	23	SECTION 2. Subchapter C, Chapter 61, Education Code, is
24	24	amended by adding Section 61.0596 to read as follows:
25	25	Sec. 61.0596. UNIVERSITY FUNDING FOR EXCELLENCE IN SPECIFIC
26	26	PROGRAMS AND FIELDS; INCENTIVE GRANTS. (a) The board shall
27	27	administer this section to encourage and assist general academic
28	28	teaching institutions, other than public state colleges, that are
29	29	not research universities or emerging research universities
30	30	according to the institutional groupings under the board's higher
31	31	education accountability system to develop and maintain specific
32	32	programs or fields of study of the highest national rank or
33	33	recognition for that type of program or field.
34	34	(b) To assist the institution in achieving the highest
35	35	national rank or recognition for the applicable degree program and
36	36	from money available for the purpose, the board shall award
37	37	incentive grants to general academic teaching institutions
38	38	described by Subsection (a) that the board considers to have
39	39	demonstrated the greatest commitment to success in developing or
40	40	improving, consistent with the mission of the institution, the
41	41	quality of an existing degree program designated by the
42	42	institution. An institution must use a grant under this subsection
43	43	for faculty recruitment or other faculty support with respect to
44	44	the designated degree program for which the grant is awarded,
45	45	including establishment of endowed faculty positions or
46	46	enhancement of faculty compensation as considered appropriate by
47	47	the institution.
48	48	(c) An institution may designate only one degree program at
49	49	a time for consideration for new funding under Subsection (b). The
50	50	institution may change its designation with the consent of the
51	51	board. If the board determines that an institution has met all the
52	52	applicable benchmarks for the institution's designated program,
53	53	the institution may designate another degree program for
54	54	consideration for new funding under Subsection (b).
55	55	(d) The board shall establish a series of benchmarks
56	56	applicable to each degree program designated by an institution
57	57	under this section. The institution becomes eligible for funding
58	58	under Subsection (b) for each benchmark the board determines that
59	59	the institution has met. The board shall establish the amount of
60	60	funding for each benchmark met in a manner that provides an
61	61	effective incentive to assist the institution to continue its
62	62	efforts to meet the remaining benchmarks for its designated
63	63	program.
64	64	(e) Unless the board determines that a different number of
65	65	benchmarks is appropriate, the board shall establish three
66	66	benchmarks for each designated degree program. The board shall
67	67	identify one or more persons who have relevant expertise and do not
68	68	reside in this state to assist the board in establishing the
69	69	benchmarks and associated funding levels for each type of degree
70	70	program designated by an institution under this section.
71	71	(f) An institution that designates a degree program to
72	72	receive funding under Subsection (b) shall reimburse the board for
73	73	the costs incurred by the board in administering this section with
74	74	respect to the institution's designated program.
75	75	(g) In addition to supporting the programs designated by
76	76	institutions for consideration to receive incentive grants under
77	77	Subsection (b), from money available for the purpose, the board
78	78	shall provide additional money as the board determines appropriate
79	79	to assist the institutions described by Subsection (a) in
80	80	maintaining the excellence of programs or fields of study that have
81	81	achieved the highest national ranking or recognition for that type
82	82	of program or field.
83	83	(h) The legislature may not appropriate money for grants or
84	84	other financial assistance to general academic teaching
85	85	institutions under this section before the board certifies that one
86	86	or more institutions have met at least one of the benchmarks
87	87	established by the board for the institutions' designated degree
88	88	programs under Subsection (d).
89	89	SECTION 3. Subchapter C, Chapter 61, Education Code, is
90	90	amended by adding Section 61.0904 to read as follows:
91	91	Sec. 61.0904. INSTITUTIONAL GROUPINGS. (a) In its
92	92	accountability system, the board shall establish institutional
93	93	groupings for classification of institutions of higher education,
94	94	including groupings for research universities, emerging research
95	95	universities, doctoral universities, comprehensive universities,
96	96	and masters universities.
97	97	(b) In each state fiscal biennium, the board shall conduct a
98	98	review of the institutional groupings, including a review of the
99	99	criteria for and definitions assigned to those groupings.
100	100	SECTION 4. The heading to Chapter 62, Education Code, is
101	101	amended to read as follows:
102	102	CHAPTER 62. CONSTITUTIONAL AND STATUTORY [DIVISION OF
103	103	CONSTITUTIONALLY APPROPRIATED] FUNDS TO SUPPORT [AMONG CERTAIN]
104	104	INSTITUTIONS OF HIGHER EDUCATION[; RESEARCH DEVELOPMENT FUND]
105	105	SECTION 5. Chapter 62, Education Code, is amended by adding
106	106	Subchapter D to read as follows:
107	107	SUBCHAPTER D. NATIONAL RESEARCH UNIVERSITY FUND
108	108	Sec. 62.071. PURPOSE. The purpose of this subchapter is to
109	109	allocate appropriations from the national research university fund
110	110	to provide a dedicated, independent, and equitable source of
111	111	funding to enable emerging research universities in this state to
112	112	achieve national prominence as major research universities.
113	113	Sec. 62.072. DEFINITIONS. In this subchapter:
114	114	(1) "Coordinating board" means the Texas Higher
115	115	Education Coordinating Board.
116	116	(2) "Eligible institution" means a general academic
117	117	teaching institution that is eligible to receive distributions of
118	118	money under this subchapter.
119	119	(3) "Fund" means the national research university
120	120	fund.
121	121	(4) "General academic teaching institution" has the
122	122	meaning assigned by Section 61.003.
123	123	Sec. 62.073. ADMINISTRATION AND INVESTMENT OF FUND.
124	124	(a) The national research university fund is a fund outside the
125	125	state treasury in the custody of the comptroller.
126	126	(b) The comptroller shall administer and invest the fund in
127	127	accordance with Section 20, Article VII, Texas Constitution.
128	128	Sec. 62.074. FUNDING. (a) The fund consists of any
129	129	amounts appropriated or transferred to the credit of the fund under
130	130	the Texas Constitution or otherwise appropriated or transferred to
131	131	the credit of the fund under this section or another law.
132	132	(b) The comptroller shall deposit to the credit of the fund
133	133	all interest, dividends, and other income earned from investment of
134	134	the fund.
135	135	(c) The comptroller may accept gifts or grants from any
136	136	public or private source for the fund.
137	137	Sec. 62.075. ELIGIBILITY TO RECEIVE DISTRIBUTIONS FROM
138	138	FUND. (a) A general academic teaching institution is eligible to
139	139	receive a distribution of money under this subchapter for each year
140	140	of a state fiscal biennium if:
141	141	(1) the institution is designated as an emerging
142	142	research university under the coordinating board's accountability
143	143	system;
144	144	(2) in each of the two state fiscal years preceding the
145	145	state fiscal biennium, the institution reported at least $45
146	146	million in restricted research expenditures; and
147	147	(3) the institution satisfies at least four of the
148	148	following criteria:
149	149	(A) the aggregate value of the institution's
150	150	endowment funds is at least $400 million;
151	151	(B) the institution awarded at least 200 doctor
152	152	of philosophy degrees during each of the two academic years
153	153	preceding the state fiscal biennium;
154	154	(C) the entering freshman class of the
155	155	institution for each of those two academic years demonstrated high
156	156	academic achievement, as determined according to standards
157	157	prescribed by the coordinating board, giving consideration to the
158	158	future educational needs of the state as articulated in the
159	159	"Closing the Gaps" report of the coordinating board;
160	160	(D) the institution is designated as a member of
161	161	the Association of Research Libraries or has a Phi Beta Kappa
162	162	chapter or an equivalent recognition of research capabilities and
163	163	scholarly attainment as determined according to standards
164	164	prescribed by the coordinating board;
165	165	(E) the faculty of the institution for each of
166	166	those two academic years was of high quality, as determined
167	167	according to coordinating board standards based on the professional
168	168	achievement and recognition of the institution's faculty,
169	169	including but not limited to the election of faculty members to
170	170	national academies; or
171	171	(F) the institution has demonstrated a
172	172	commitment to high quality graduate education, as determined
173	173	according to standards prescribed by the coordinating board,
174	174	including but not limited to the number of graduate-level programs
175	175	at the institution, the institution's admission standards for
176	176	graduate programs, and the level of institutional support for
177	177	graduate students.
178	178	(b) A general academic teaching institution that becomes
179	179	eligible under Subsection (a) to receive a distribution of money
180	180	under this subchapter remains eligible to receive a distribution of
181	181	money under this subchapter in each subsequent state fiscal year.
182	182	Sec. 62.076. INELIGIBILITY OF CERTAIN INSTITUTIONS
183	183	RECEIVING PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE. The
184	184	University of Texas at Austin and Texas A&M University are
185	185	ineligible to receive money under this subchapter.
186	186	Sec. 62.077. ALLOCATION OF APPROPRIATED FUNDS TO ELIGIBLE
187	187	INSTITUTIONS. In each state fiscal year, the comptroller shall
188	188	distribute to eligible institutions the total amount appropriated
189	189	from the fund for that fiscal year. The amount shall be allocated
190	190	to the eligible institutions based on an equitable formula adopted
191	191	by the legislature to carry out the purposes of the fund as
192	192	established by Section 20, Article VII, Texas Constitution. The
193	193	coordinating board may make recommendations regarding the
194	194	equitable formula and may provide assistance regarding the formula
195	195	as directed by the legislature.
196	196	Sec. 62.078. USE OF ALLOCATED AMOUNTS. (a) An eligible
197	197	institution may use money received under this subchapter only for
198	198	the support and maintenance of educational and general activities
199	199	that promote increased research capacity at the institution.
200	200	(b) For purposes of Subsection (a), permitted activities
201	201	include the use of the money to:
202	202	(1) provide faculty support and pay faculty salaries;
203	203	(2) purchase equipment or library materials;
204	204	(3) pay graduate stipends; and
205	205	(4) support research performed at the institution,
206	206	including undergraduate research.
207	207	(c) Money received in a fiscal year by an institution under
208	208	this subchapter that is not used in that fiscal year by the
209	209	institution may be held and used by the institution in subsequent
210	210	fiscal years for the purposes prescribed by this section.
211	211	Sec. 62.079. VERIFICATION OF QUALIFYING CRITERIA. (a) The
212	212	coordinating board shall prescribe standards and accounting
213	213	methods for verifying the value of the qualifying criteria to
214	214	establish the eligibility of an institution to receive a
215	215	distribution of money under this subchapter in a state fiscal
216	216	biennium.
217	217	(b) The coordinating board, as soon as practicable in each
218	218	even-numbered year but not later than December 31, shall provide
219	219	the legislature with verified information relating to the value of
220	220	the criteria to establish which institutions are eligible to
221	221	receive a distribution of money under this subchapter.
222	222	(c) The coordinating board shall validate the appropriate
223	223	measures of an eligible institution to verify the reported values
224	224	of the criteria for purposes of this subchapter.
225	225	(d) Upon completion, the methods for verifying the value of
226	226	the qualifying criteria prescribed in accordance with Subsection
227	227	(a) shall be sent to the state auditor for review and comment.
228	228	(e) Any information submitted by the institutions to the
229	229	coordinating board and the verification of the information by the
230	230	coordinating board for the purposes of this subchapter are subject
231	231	to audit by the state auditor in accordance with Chapter 321,
232	232	Government Code.
233	233	SECTION 6. Section 62.094, Education Code, is amended to
234	234	read as follows:
235	235	Sec. 62.094. FUNDING. (a) The research development fund
236	236	consists of the [amount deposited to the credit of the fund under
237	237	Section 62.025 in each state fiscal year, the amount appropriated
238	238	or transferred to the credit of the fund by the legislature under
239	239	Subsection (b), and any other] amounts appropriated or transferred
240	240	to the credit of the fund under this section or other law.
241	241	(b) [In each state fiscal year, the legislature may
242	242	appropriate or provide for the transfer to the credit of the
243	243	research development fund of an amount not less than the amount
244	244	deposited to the credit of the fund under Section 62.025 in that
245	245	fiscal year.
246	246	[(c)] The comptroller shall deposit all interest,
247	247	dividends, and other income earned from investment of the research
248	248	development fund to the credit of the fund.
249	249	(c) [(d)] The comptroller may accept gifts or grants from
250	250	any public or private source for the research development fund.
251	251	SECTION 7. Sections 62.025 and 62.026, Education Code, are
252	252	repealed.
253	253	SECTION 8. (a) Except as provided by Subsection (b) of
254	254	this section, this Act takes effect January 1, 2010, but only if the
255	255	constitutional amendment proposed by the 81st Legislature, Regular
256	256	Session, 2009, establishing the national research university fund
257	257	to enable emerging research universities in this state to achieve
258	258	national prominence as major research universities and
259	259	transferring the balance of the higher education fund to the
260	260	national research university fund is approved by the voters. If
261	261	that constitutional amendment is not approved by the voters, except
262	262	as provided by Subsection (b) of this section, this Act does not
263	263	take effect.
264	264	(b) This section takes effect September 1, 2009. The
265	265	sections of this Act adding Subsection (o), Section 61.059, and
266	266	Section 61.0596, Education Code, take effect September 1, 2009, but
267	267	only if a specific appropriation for the implementation of those
268	268	provisions of the Education Code is provided in a general
269	269	appropriations act of the 81st Legislature.