By Junell, Coleman, Thompson, H.B. No. 1839
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to research and excellence funding at certain institutions
1-3 of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 62, Education Code, is amended by adding
1-6 Subchapter C to read as follows:
1-7 SUBCHAPTER C. TEXAS EXCELLENCE FUND
1-8 Sec. 62.051. PURPOSE. The Texas excellence fund is
1-9 established to provide funding to promote increased research
1-10 capacity and to develop institutional excellence at eligible
1-11 general academic teaching institutions in order to ensure that
1-12 Texas and its workforce remain at the forefront of scientific and
1-13 technological innovation.
1-14 Sec. 62.052. DEFINITIONS. In this subchapter:
1-15 (1) "Eligible comprehensive research university" means
1-16 an eligible general academic teaching institution that in each of
1-17 the two most recent state fiscal years, as verified by the
1-18 coordinating board:
1-19 (A) offered a full range of baccalaureate
1-20 programs and a wide variety of graduate programs;
1-21 (B) awarded 45 or more doctor of philosophy
1-22 degrees in the fields of science, agricultural science,
1-23 engineering, and clinical and experimental psychology; and
1-24 (C) expended at least $15 million in restricted
1-25 research funds and related indirect costs as reported in the
2-1 institution's annual financial report for the applicable year.
2-2 (2) "Eligible general academic teaching institution"
2-3 means a general academic teaching institution, as defined by
2-4 Section 61.003, that is eligible to participate in the funding
2-5 provided by Section 17, Article VII, Texas Constitution.
2-6 Sec. 62.053. ADMINISTRATION. (a) The Texas excellence fund
2-7 is a fund outside the state treasury in the custody of the
2-8 comptroller.
2-9 (b) The comptroller shall administer and invest the Texas
2-10 excellence fund.
2-11 Sec. 62.054. FUNDING. (a) The legislature may appropriate
2-12 or provide for the transfer of any available money to the credit of
2-13 the Texas excellence fund.
2-14 (b) The comptroller shall deposit all interest, dividends,
2-15 and other income earned from investment of the Texas excellence
2-16 fund to the credit of the fund.
2-17 (c) The comptroller may accept gifts or grants from any
2-18 public or private source for the Texas excellence fund.
2-19 (d) An institution may use money appropriated from the Texas
2-20 excellence fund only for the support and maintenance of educational
2-21 and general activities, including research and student services,
2-22 that promote increased research capacity and develop institutional
2-23 excellence at the institution.
2-24 Sec. 62.055. APPROPRIATION AND ALLOCATION OF FUND TO
2-25 ELIGIBLE INSTITUTIONS. (a) In each state fiscal year, the
2-26 legislature may appropriate all or part of the money in the Texas
2-27 excellence fund to eligible comprehensive research universities and
3-1 other eligible general academic teaching institutions as follows:
3-2 (1) 80 percent of the amount appropriated from the
3-3 fund must be appropriated to the eligible comprehensive research
3-4 universities and be allocated among those institutions in
3-5 accordance with an equitable allocation formula based on the amount
3-6 of restricted research funds expended by each institution as
3-7 reported in each institution's annual financial report; and
3-8 (2) the remaining amount appropriated from the fund
3-9 must be appropriated to the eligible general academic teaching
3-10 institutions, other than the eligible comprehensive research
3-11 universities, and be allocated among those institutions in
3-12 accordance with an equitable allocation formula based on the amount
3-13 of restricted research funds expended by each institution as
3-14 reported in each institution's annual financial report.
3-15 (b) Subsection (a) does not apply to the allocation of
3-16 money appropriated from the Texas excellence fund for the state
3-17 fiscal biennium ending August 31, 2003. For each fiscal year in the
3-18 state fiscal biennium ending August 31, 2003, the money
3-19 appropriated from the fund is allocated among the eligible general
3-20 academic teaching institutions, including eligible comprehensive
3-21 research universities, as provided by the General Appropriations
3-22 Act. This subsection expires January 1, 2004.
3-23 SECTION 2. Section 62.025, Education Code, is amended by
3-24 amending Subsections (a) and (c) and adding Subsection (d) to read
3-25 as follows:
3-26 (a) Not later than November 1 of each state fiscal year, the
3-27 comptroller shall deposit the first $50 million that comes to the
4-1 state at the beginning of each state fiscal year and that is not
4-2 dedicated by other law as follows:
4-3 (1) except as provided by Subsection (d), an amount
4-4 equal to the portion of the total return on all investment assets
4-5 of the higher education fund in the preceding state fiscal year
4-6 equal to the percentage of the total return on all investment
4-7 assets of the permanent fund for tobacco education and enforcement
4-8 that constitutes available earnings as determined by the
4-9 comptroller under Section 403.1068, Government Code, in that year
4-10 must be deposited to the credit of the Texas excellence fund
4-11 established under Subchapter C; and
4-12 (2) the remaining amount must be deposited to the
4-13 credit of the higher education fund.
4-14 (c) The deposit required by this section to the higher
4-15 education fund expires on September 1 after the date the
4-16 comptroller certifies that the value of the higher education fund
4-17 is $2 billion. In each state fiscal year that begins on or after
4-18 that date, the comptroller shall deposit to the credit of the Texas
4-19 excellence fund established under Subchapter C from the first money
4-20 that comes to the state at the beginning of that fiscal year an
4-21 amount equal to the income earned from investment of the higher
4-22 education fund in the preceding state fiscal year as certified by
4-23 the comptroller, not to exceed $50 million.
4-24 (d) In any state fiscal year for which the legislature has
4-25 made an appropriation specifically for the purposes of the Texas
4-26 excellence fund in an amount equal to or greater than the amount
4-27 provided by Subsection (a)(1) or (c), as applicable to that state
5-1 fiscal year, the deposit to the Texas excellence fund under
5-2 Subsection (a)(1) or Subsection (c) may not be made.
5-3 SECTION 3. Sections 62.026(b) and (d), Education Code, are
5-4 amended to read as follows:
5-5 (b) The fund consists of the amount [$50 million] deposited
5-6 in the fund each state fiscal year under Section 62.025 [of this
5-7 code] and interest, dividends, and other income earned from the
5-8 investment of the fund.
5-9 (d) The comptroller shall administer and invest the fund.
5-10 In investing the fund, the comptroller has the same investment
5-11 authority as that provided under Sections 11a and 11b, Article VII,
5-12 Texas Constitution, or other law to the board of regents of The
5-13 University of Texas System with respect to the investment of the
5-14 permanent university fund. The investment authority granted to the
5-15 comptroller under this subsection is in addition to that provided
5-16 by Section 404.024, Government Code, or other law. The
5-17 comptroller, in consultation with the presiding officers of the
5-18 governing boards of the institutions eligible to benefit from the
5-19 investment of the fund under Section 17, Article VII, Texas
5-20 Constitution, shall invest the fund in a manner that maximizes the
5-21 total return of the fund.
5-22 SECTION 4. Chapter 62, Education Code, is amended by adding
5-23 Subchapter D to read as follows:
5-24 SUBCHAPTER D. UNIVERSITY RESEARCH FUND FOR CERTAIN
5-25 PERMANENT UNIVERSITY FUND INSTITUTIONS
5-26 Sec. 62.071. PURPOSE. The university research fund is
5-27 established to provide funding to promote increased research
6-1 capacity and to develop institutional excellence at eligible
6-2 general academic teaching institutions.
6-3 Sec. 62.072. DEFINITIONS. In this subchapter:
6-4 (1) "Eligible general academic teaching institution"
6-5 means a general academic teaching institution, as defined by
6-6 Section 61.003, that:
6-7 (A) is a component institution of The University
6-8 of Texas System or The Texas A&M University System, other than The
6-9 University of Texas at Austin, Texas A&M University, or Prairie
6-10 View A&M University; and
6-11 (B) is eligible to participate in the funding
6-12 provided by Section 18, Article VII, Texas Constitution.
6-13 (2) "Eligible doctoral and research university" means
6-14 an eligible general academic teaching institution that:
6-15 (A) in each of the two preceding state fiscal
6-16 years, as verified by the coordinating board:
6-17 (i) offered a full range of baccalaureate
6-18 programs and a wide variety of graduate programs; and
6-19 (ii) awarded 50 or more doctor of
6-20 philosophy degrees; and
6-21 (B) in the three preceding state fiscal years,
6-22 as verified by the coordinating board, expended an average of at
6-23 least $5 million per year in restricted research funds and related
6-24 indirect costs as reported in the institution's annual financial
6-25 reports for the applicable years.
6-26 (3) "Eligible emerging doctoral and research
6-27 university" means an eligible general academic teaching institution
7-1 other than an eligible doctoral and research university that:
7-2 (A) in each of the two preceding state fiscal
7-3 years, as verified by the coordinating board:
7-4 (i) offered a full range of baccalaureate
7-5 programs and a wide variety of graduate programs; and
7-6 (ii) awarded one or more doctor of
7-7 philosophy degrees; and
7-8 (B) in the three preceding state fiscal years,
7-9 as verified by the coordinating board, expended an average of at
7-10 least $5 million per year in restricted research funds and related
7-11 indirect costs as reported in the institution's annual financial
7-12 reports for the applicable years.
7-13 Sec. 62.073. ADMINISTRATION. (a) The university research
7-14 fund is a fund outside the state treasury in the custody of the
7-15 comptroller.
7-16 (b) The comptroller shall administer and invest the
7-17 university research fund.
7-18 Sec. 62.074. FUNDING. (a) In each state fiscal year, the
7-19 legislature shall appropriate or provide for the transfer to the
7-20 credit of the university research fund of an amount equal to the
7-21 amount deposited to the credit of the Texas excellence fund under
7-22 Section 62.025 or 62.054 in that fiscal year. The comptroller may
7-23 not deposit money to the credit of the Texas excellence fund under
7-24 Section 62.025 or 62.054 and the legislature may not appropriate
7-25 money specifically for the purposes of the Texas excellence fund
7-26 under Section 62.025(d) unless an equal amount is deposited at the
7-27 same time to the credit of the university research fund.
8-1 (b) The comptroller shall deposit all interest, dividends,
8-2 and other income earned from investment of the university research
8-3 fund to the credit of the fund.
8-4 (c) The comptroller may accept gifts or grants from any
8-5 public or private source for the university research fund.
8-6 (d) In each state fiscal year, the comptroller shall
8-7 distribute all assets in the university research fund as soon as
8-8 practicable to eligible institutions in accordance with this
8-9 subchapter.
8-10 (e) All assets received by an institution under this
8-11 subchapter may be used only for the support and maintenance of
8-12 educational and general activities, including research and student
8-13 services, that promote increased research capacity and develop
8-14 institutional excellence at that institution.
8-15 Sec. 62.075. ALLOCATION TO ELIGIBLE INSTITUTIONS. In each
8-16 state fiscal year, the comptroller shall distribute the total
8-17 amount of all assets in the university research fund as follows:
8-18 (1) $1 million shall be distributed to the eligible
8-19 general academic teaching institutions, other than the eligible
8-20 doctoral and research universities and eligible emerging doctoral
8-21 and research universities, and allocated among those institutions
8-22 in equal amounts; and
8-23 (2) the total amount to be distributed less the amount
8-24 required to be distributed under Subdivision (1) shall be
8-25 distributed to the eligible doctoral and research universities and
8-26 eligible emerging doctoral and research universities as follows:
8-27 (A) 50 percent shall be apportioned among those
9-1 institutions based on the average amount of restricted research
9-2 funds expended per year by each institution in the three preceding
9-3 state fiscal years as reported in each institution's applicable
9-4 annual financial reports; and
9-5 (B) the remaining 50 percent shall be
9-6 apportioned among those institutions as follows:
9-7 (i) 75 percent based on the number of
9-8 doctor of philosophy degrees awarded by each institution in the
9-9 preceding state fiscal year; and
9-10 (ii) the remaining 25 percent based on the
9-11 number of master's degrees awarded by each institution in the
9-12 preceding state fiscal year.
9-13 Sec. 62.0751. ALLOCATION TO ELIGIBLE INSTITUTIONS FOR
9-14 2002-2003 FISCAL BIENNIUM. (a) Section 62.075 does not apply to
9-15 the distribution of the total amount of all assets in the
9-16 university research fund in the state fiscal biennium ending August
9-17 31, 2003. In each state fiscal year of that biennium, the
9-18 comptroller shall distribute the total amount of all assets in the
9-19 university research fund as soon as practicable as follows:
9-20 (1) $1 million shall be distributed to the eligible
9-21 general academic teaching institutions, other than the eligible
9-22 doctoral and research universities and eligible emerging doctoral
9-23 and research universities, and apportioned among those institutions
9-24 in equal amounts;
9-25 (2) $500,000 shall be distributed to the eligible
9-26 doctoral and research universities and apportioned among those
9-27 institutions in equal amounts;
10-1 (3) $500,000 shall be distributed to the eligible
10-2 emerging doctoral and research universities and apportioned among
10-3 those institutions in equal amounts; and
10-4 (4) the total amount to be distributed less the
10-5 amounts required to be distributed under Subdivisions (1), (2), and
10-6 (3) shall be distributed to the eligible doctoral and research
10-7 universities and eligible emerging doctoral and research
10-8 universities as follows:
10-9 (A) 50 percent shall be apportioned among those
10-10 institutions based on the amount of restricted research funds
10-11 expended by each institution in the preceding state fiscal year as
10-12 reported in each institution's financial report for the applicable
10-13 year; and
10-14 (B) the remaining 50 percent shall be
10-15 apportioned among those institutions as follows:
10-16 (i) 75 percent based on the number of
10-17 doctor of philosophy degrees awarded by each institution in the
10-18 preceding state fiscal year; and
10-19 (ii) the remaining 25 percent based on
10-20 the number of master's degrees awarded by each institution in the
10-21 preceding state fiscal year.
10-22 (b) This section expires January 1, 2004.
10-23 Sec. 62.076. VERIFICATION OF ALLOCATION FACTORS. (a) For
10-24 purposes of this subchapter, the coordinating board shall establish
10-25 standards and accounting methods for determining the amount of
10-26 restricted research funds expended by an eligible general academic
10-27 teaching institution in a state fiscal year.
11-1 (b) The coordinating board, as soon as practicable in each
11-2 state fiscal year, shall provide the comptroller with verified
11-3 information relating to the amounts of restricted research funds
11-4 expended and degrees awarded by eligible general academic teaching
11-5 institutions as necessary to determine the allocations under this
11-6 subchapter for that fiscal year.
11-7 (c) The coordinating board may audit the appropriate records
11-8 of an eligible general academic teaching institution to verify
11-9 information for purposes of this subchapter.
11-10 SECTION 5. This Act takes effect September 1, 2001.