77R12078 KSD-D
By Junell, Coleman, Thompson, H.B. No. 1839
Jones of Lubbock, Crownover, et al.
Substitute the following for H.B. No. 1839:
By Junell C.S.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
2-1 research funds and related indirect costs as reported in the
2-2 institution's annual financial report for the applicable year.
2-3 (2) "Eligible general academic teaching institution"
2-4 means a general academic teaching institution, as defined by
2-5 Section 61.003, that is eligible to participate in the funding
2-6 provided by Section 17, Article VII, Texas Constitution.
2-7 Sec. 62.053. ADMINISTRATION. (a) The Texas excellence fund
2-8 is a fund outside the state treasury in the custody of the
2-9 comptroller.
2-10 (b) The comptroller shall administer and invest the Texas
2-11 excellence fund.
2-12 Sec. 62.054. FUNDING. (a) The legislature may appropriate
2-13 or provide for the transfer of any available money to the credit of
2-14 the Texas excellence fund.
2-15 (b) The comptroller shall deposit all interest, dividends,
2-16 and other income earned from investment of the Texas excellence
2-17 fund to the credit of the fund.
2-18 (c) The comptroller may accept gifts or grants from any
2-19 public or private source for the Texas excellence fund.
2-20 (d) An institution may use money appropriated from the Texas
2-21 excellence fund only for the support and maintenance of educational
2-22 and general activities, including research and student services,
2-23 that promote increased research capacity and develop institutional
2-24 excellence at the institution.
2-25 Sec. 62.055. APPROPRIATION AND ALLOCATION OF FUND TO
2-26 ELIGIBLE INSTITUTIONS. (a) In each state fiscal year, the
2-27 legislature may appropriate all or part of the money in the Texas
3-1 excellence fund to eligible comprehensive research universities and
3-2 other eligible general academic teaching institutions as follows:
3-3 (1) 80 percent of the amount appropriated from the
3-4 fund must be appropriated to the eligible comprehensive research
3-5 universities and be allocated among those institutions in
3-6 accordance with an equitable allocation formula based on the amount
3-7 of restricted research funds expended by each institution as
3-8 reported in each institution's annual financial report; and
3-9 (2) the remaining amount appropriated from the fund
3-10 must be appropriated to the eligible general academic teaching
3-11 institutions, other than the eligible comprehensive research
3-12 universities, and be allocated among those institutions in
3-13 accordance with an equitable allocation formula based on the amount
3-14 of restricted research funds expended by each institution as
3-15 reported in each institution's annual financial report.
3-16 (b) Subsection (a) does not apply to the allocation of
3-17 money appropriated from the Texas excellence fund for the state
3-18 fiscal biennium ending August 31, 2003. For each fiscal year in the
3-19 state fiscal biennium ending August 31, 2003, the money
3-20 appropriated from the fund is allocated among the eligible general
3-21 academic teaching institutions, including eligible comprehensive
3-22 research universities, as provided by the General Appropriations
3-23 Act. This subsection expires January 1, 2004.
3-24 SECTION 2. Section 62.025, Education Code, is amended by
3-25 amending Subsections (a) and (c) and adding Subsection (d) to read
3-26 as follows:
3-27 (a) Not later than November 1 of each state fiscal year, the
4-1 comptroller shall deposit the first $50 million that comes to the
4-2 state at the beginning of each state fiscal year and that is not
4-3 dedicated by other law as follows:
4-4 (1) except as provided by Subsection (d), an amount
4-5 equal to the income earned from investment of the higher education
4-6 fund in the preceding state fiscal year as certified by the
4-7 comptroller must be deposited to the credit of the Texas excellence
4-8 fund established under Subchapter C; and
4-9 (2) the remaining amount must be deposited to the
4-10 credit of the higher education fund.
4-11 (c) The deposit required by this section to the higher
4-12 education fund expires on September 1 after the date the
4-13 comptroller certifies that the value of the higher education fund
4-14 is $2 billion. In each state fiscal year that begins on or after
4-15 that date, the comptroller shall deposit to the credit of the Texas
4-16 excellence fund established under Subchapter C from the first money
4-17 that comes to the state at the beginning of that fiscal year an
4-18 amount equal to the income earned from investment of the higher
4-19 education fund in the preceding state fiscal year as certified by
4-20 the comptroller, not to exceed $50 million.
4-21 (d) In any state fiscal year for which the legislature has
4-22 made an appropriation specifically for the purposes of the Texas
4-23 excellence fund in an amount equal to or greater than the income
4-24 earned from investment of the higher education fund in the
4-25 preceding state fiscal year as certified by the comptroller, the
4-26 deposit to the Texas excellence fund under Subsection (a)(1) or
4-27 Subsection (c) may not be made.
5-1 SECTION 3. Sections 62.026(b) and (d), Education Code, are
5-2 amended to read as follows:
5-3 (b) The fund consists of the amount [$50 million] deposited
5-4 in the fund each state fiscal year under Section 62.025 [of this
5-5 code] and interest, dividends, and other income earned from the
5-6 investment of the fund.
5-7 (d) The comptroller shall administer and invest the fund.
5-8 In investing the fund, the comptroller has the same investment
5-9 authority as that provided under Sections 11a and 11b, Article VII,
5-10 Texas Constitution, or other law to the board of regents of The
5-11 University of Texas System with respect to the investment of the
5-12 permanent university fund. The investment authority granted to the
5-13 comptroller under this subsection is in addition to that provided
5-14 by Section 404.024, Government Code, or other law. The
5-15 comptroller, in consultation with the presiding officers of the
5-16 governing boards of the institutions eligible to benefit from the
5-17 income from the investment of the fund under Section 17, Article
5-18 VII, Texas Constitution, shall invest the fund in a manner that
5-19 maximizes the amount of income earned and gains realized from the
5-20 investment of the fund.
5-21 SECTION 4. Chapter 62, Education Code, is amended by adding
5-22 Subchapter D to read as follows:
5-23 SUBCHAPTER D. EXCELLENCE FUNDING FOR CERTAIN
5-24 PERMANENT UNIVERSITY FUND INSTITUTIONS
5-25 Sec. 62.071. DEFINITIONS. In this subchapter:
5-26 (1) "Eligible institution" means a general academic
5-27 teaching institution that is a component institution of The
6-1 University of Texas System or The Texas A&M University System,
6-2 other than The University of Texas at Austin, Texas A&M University,
6-3 or Prairie View A&M University, eligible to participate in the
6-4 funding provided by Section 18, Article VII, Texas Constitution.
6-5 (2) "General academic teaching institution" has the
6-6 meaning assigned by Section 61.003.
6-7 Sec. 62.072. FUNDING. (a) In each state fiscal biennium, an
6-8 amount equal to the amount deposited to the credit of the Texas
6-9 excellence fund under Section 62.025 in that biennium shall be
6-10 distributed to eligible institutions in accordance with this
6-11 section.
6-12 (b) The amount distributed under this section shall be
6-13 allocated among eligible institutions in accordance with a formula
6-14 determined by the legislature.
6-15 (c) Money received by an institution under this section may
6-16 be used only for the support and maintenance of educational and
6-17 general activities, including research and student services, that
6-18 promote increased research capacity and develop institutional
6-19 excellence at that institution.
6-20 SECTION 5. This Act takes effect September 1, 2001.