By: Duncan, Shapiro S.J.R. No. 35
SENATE JOINT RESOLUTION
proposing a constitutional amendment 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.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article VII, Texas Constitution, is amended by
adding Section 20 to read as follows:
Sec. 20. (a) There is established the national research
university fund for the purpose of providing a dedicated,
independent, and equitable source of funding to enable emerging
research universities in this state to achieve national prominence
as major research universities.
(b) The fund consists of money transferred or deposited to
the credit of the fund and any interest or other return on the
investment assets of the fund. The legislature may dedicate state
revenue to the credit of the fund.
(c) The legislature shall provide for administration of the
fund, which shall be invested in the manner and according to the
standards provided for investment of the permanent university fund.
The expenses of managing the investments of the fund shall be paid
from the fund.
(d) In each state fiscal biennium, the legislature may
appropriate as provided by Subsection (f) of this section all or a
portion of the total return on all investment assets of the fund to
carry out the purposes for which the fund is established.
(e) The legislature biennially shall allocate the amounts
appropriated under this section, or shall provide for a biennial
allocation of those amounts, to eligible state universities to
carry out the purposes of the fund. The money shall be allocated
based on an equitable formula established by the legislature or an
agency designated by the legislature. The legislature shall review
and as appropriate adjust, or provide for a review and adjustment,
of the allocation formula at the end of each state fiscal biennium.
(f) The portion of the total return on investment assets of
the fund that is available for appropriation in a state fiscal
biennium under this section is the portion necessary to provide as
nearly as practicable a stable and predictable stream of annual
distributions to eligible state universities and to maintain over
time the purchasing power of fund investment assets. If the
purchasing power of fund investment assets for any rolling 10-year
period is not preserved, the legislature may not appropriate money
from the fund until the purchasing power of the fund investment
assets is restored. The amount appropriated from the fund in any
fiscal year may not exceed an amount equal to seven percent of the
average net fair market value of the investment assets of the fund.
(g) The legislature shall establish criteria by which a
state university may become eligible to receive a portion of the
distributions from the fund. A state university that becomes
eligible to receive a portion of the distributions from the fund in
a state fiscal biennium remains eligible to receive additional
distributions from the fund in any subsequent state fiscal
biennium. The University of Texas at Austin, Texas A&M University,
and Prairie View A&M University are not eligible to receive money
from the fund.
(h) An eligible state university may use distributions from
the fund only for the support and maintenance of educational and
general activities that promote increased research capacity at the
university.
SECTION 2. Subsection (i), Section 17, Article VII, Texas
Constitution, is repealed.
SECTION 3. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to 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.
(b) The amendment to add Section 20 to Article VII of this
constitution and to repeal Section 17(i), Article VII, of this
constitution takes effect January 1, 2010.
(c) On January 1, 2010, any amount in or payable to the
credit of the higher education fund established by Section 17(i),
Article VII, Texas Constitution, shall be transferred to the credit
of the national research university fund.
(d) This temporary provision expires January 1, 2011.
SECTION 4. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 3, 2009.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment 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."