88R4095 KJE-D
By: Perry S.J.R. No. 49
A JOINT RESOLUTION
proposing a constitutional amendment creating a university
research fund to support emerging research universities in The
University of Texas System or The Texas A&M University System and
disqualifying all component institutions of those university
systems from receiving money from the national research university
fund.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 18, Article VII, Texas Constitution, is
amended by adding Subsection (f-1) to read as follows:
(f-1) Notwithstanding Subsection (f) of this section, the
boards of regents of The University of Texas System and The Texas
A&M University System may deposit to the credit of the university
research fund established under Section 21 of this article all or
part of the portion of the applicable system's share of the annual
distribution from the permanent university fund to the available
university fund remaining after the payment of principal and
interest on bonds and notes described by Subsection (f) of this
section.
SECTION 2. Section 20(g), Article VII, Texas Constitution,
is amended to read as follows:
(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. A component institution of The University of Texas System
or The [at Austin and] Texas A&M University System is [are] not
eligible to receive money from the fund.
SECTION 3. Article VII, Texas Constitution, is amended by
adding Section 21 to read as follows:
Sec. 21. (a) There is established the university research
fund for the purpose of providing a dedicated, independent, and
equitable source of funding to enable emerging research
universities in The University of Texas System or The Texas A&M
University System 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 component institutions of
The University of Texas System or The Texas A&M University System 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 determined by the
legislature, or an agency designated by the legislature, as
necessary to provide as nearly as practicable a stable and
predictable stream of annual distributions to eligible component
institutions of The University of Texas System or The Texas A&M
University System 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
distributions may not be increased 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, as determined by law. Until the fund has been
invested for a period of time sufficient to determine the
purchasing power over a 10-year period, the legislature may provide
by law for means of preserving the purchasing power of the fund.
(g) The legislature shall establish criteria by which a
component institution of The University of Texas System or The
Texas A&M University System may become eligible to receive a
portion of the distributions from the fund. An institution 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. Only a component institution of The University of
Texas System or The Texas A&M University System may be eligible to
receive money from the fund.
(h) An eligible component institution of The University of
Texas System or The Texas A&M University System may use
distributions from the fund only for the support and maintenance of
educational and general activities that promote increased research
capacity at the institution.
SECTION 4. The following temporary provision is added to
the Texas Constitution:
TEMPORARY PROVISION. (a) This temporary provision applies
to the constitutional amendment proposed by the 88th Legislature,
Regular Session, 2023, creating a university research fund to
support emerging research universities in The University of Texas
System or The Texas A&M University System and disqualifying all
component institutions of those university systems from receiving
money from the national research university fund.
(b) The amendment to Section 20(g), Article VII, of this
constitution takes effect September 1, 2025.
(c) This temporary provision expires September 1, 2026.
SECTION 5. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 7, 2023.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment creating a university
research fund to support emerging research universities in The
University of Texas System or The Texas A&M University System and
disqualifying all component institutions of those university
systems from receiving money from the national research university
fund."