81R9091 KSD-D By: Shapleigh S.B. No. 1564 A BILL TO BE ENTITLED AN ACT relating to Tier One Challenge funding to support the development and enhancement of national research universities in this state. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 61, Education Code, is amended by adding Subchapter FF to read as follows: SUBCHAPTER FF. TIER ONE CHALLENGE FUNDING Sec. 61.9771. DEFINITIONS. In this subchapter: (1) "Emerging research university" means an institution of higher education designated as an emerging research university under the board's accountability system. (2) "Research university" means an institution of higher education designated as a research university under the board's accountability system. Sec. 61.9772. PURPOSE. The purpose of this subchapter is to provide funding for the enhancement of research universities and for the development of emerging research universities. Sec. 61.9773. ELIGIBILITY FOR FUNDING. (a) Except as provided by Subsection (b), to be eligible to participate in the funding under this subchapter, a research university or emerging research university must: (1) submit to the board, in the form and manner prescribed by the board, a detailed, long-term strategic plan documenting the strategy by which the institution intends to achieve recognition as a research university, or enhance the university's reputation as a research university, as applicable; (2) receive board approval of the university's plan under Subdivision (1); and (3) meet any other criteria the board considers appropriate, including consideration of: (A) the amount of and any increase in externally generated research funds received by the university, including federal money, private gifts and donations, private endowment earnings, and funds from any local or regional source; and (B) the number of doctoral programs offered by the university and any increase in that number. (b) The University of Texas at Austin, Texas A&M University, and Prairie View A&M University are not eligible to receive funding under this subchapter. Sec. 61.9774. ALLOCATION OF FUNDING. (a) For each state fiscal year, the board shall allocate any funds appropriated for the purposes of this subchapter, and any other funds made available for the purposes of this subchapter, to research universities and emerging research universities that are eligible to participate in the funding based on an equitable formula developed by the board to further the purposes of this subchapter. (b) The board shall review the equitable formula at the end of each state fiscal biennium and may adjust the formula as the board considers appropriate. Sec. 61.9775. USE OF ALLOCATED AMOUNTS. An institution of higher education may use money received under this subchapter only for the purposes approved by the board to implement the strategic plan submitted to the board under Section 61.9773. Sec. 61.9776. ACCEPTANCE OF GIFTS OR GRANTS. The board may accept gifts or grants from any public or private source for the purposes of this subchapter. Sec. 61.9777. ANNUAL PROGRESS REPORT. (a) The board shall require each institution of higher education receiving funds under this subchapter in a state fiscal year to report to the board not later than the October 1 immediately following that state fiscal year the institution's progress toward implementing the institution's strategic plan submitted under Section 61.9773. (b) Not later than the following January 1, the board shall prepare and submit to the presiding officer of each house of the legislature a written report based on the information received by the board under Subsection (a). Sec. 61.9778. RULES. The board shall adopt rules for the administration of this subchapter. SECTION 2. The Texas Higher Education Coordinating Board shall adopt rules relating to the administration of Subchapter FF, Chapter 61, Education Code, as added by this Act, as soon as practicable after the effective date of this Act. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.