By Ellis, et al. S.B. No. 737
77R5184 KSD-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Texas excellence fund to promote
1-3 research and excellence at certain institutions of higher
1-4 education.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 62, Education Code, is amended by adding
1-7 Subchapter C to read as follows:
1-8 SUBCHAPTER C. TEXAS EXCELLENCE FUND
1-9 Sec. 62.051. PURPOSE. The Texas excellence fund is
1-10 established to provide funding to promote increased research
1-11 capacity and to develop institutional excellence at eligible
1-12 general academic teaching institutions in order to ensure that
1-13 Texas and its workforce remain at the forefront of scientific and
1-14 technological innovation.
1-15 Sec. 62.052. DEFINITIONS. In this subchapter:
1-16 (1) "Eligible comprehensive research university" means
1-17 an eligible general academic teaching institution that in each of
1-18 the two most recent state fiscal years, as verified by the
1-19 coordinating board:
1-20 (A) offered a full range of baccalaureate
1-21 programs and a wide variety of graduate programs;
1-22 (B) awarded 45 or more doctor of philosophy
1-23 degrees in the fields of science, agricultural science,
1-24 engineering, and clinical and experimental psychology; and
2-1 (C) expended at least $15 million in restricted
2-2 research funds and related indirect costs as reported in the
2-3 institution's annual financial report for the applicable year.
2-4 (2) "Eligible general academic teaching institution"
2-5 means a general academic teaching institution, as defined by
2-6 Section 61.003, that is eligible to participate in the funding
2-7 provided by Section 17, Article VII, Texas Constitution.
2-8 Sec. 62.053. ADMINISTRATION. (a) The Texas excellence fund
2-9 is a fund outside the state treasury in the custody of the
2-10 comptroller.
2-11 (b) The comptroller shall administer and invest the 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 fund.
2-20 (d) An institution may use money appropriated from the fund
2-21 only for the support and maintenance of educational and general
2-22 activities, including research and student services, that promote
2-23 increased research capacity and develop institutional excellence at
2-24 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 fund to
3-1 eligible comprehensive research universities and other eligible
3-2 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 fund for the state fiscal biennium
3-18 ending August 31, 2003. For each fiscal year in the state fiscal
3-19 biennium ending August 31, 2003, the money appropriated from the
3-20 fund is allocated among the eligible general academic teaching
3-21 institutions, including eligible comprehensive research
3-22 universities, as provided by the General Appropriations Act. This
3-23 subsection expires January 1, 2004.
3-24 SECTION 2. Sections 62.025(a) and (c), Education Code, are
3-25 amended read 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) an amount equal to the income earned from
4-4 investment of the higher education fund in the preceding state
4-5 fiscal year as certified by the comptroller must be deposited to
4-6 the credit of the Texas excellence fund established under
4-7 Subchapter C; and
4-8 (2) the remaining amount must be deposited to the
4-9 credit of the higher education fund.
4-10 (c) The deposit required by this section to the higher
4-11 education fund expires on September 1 after the date the
4-12 comptroller certifies that the value of the higher education fund
4-13 is $2 billion. In each state fiscal year that begins on or after
4-14 that date, the comptroller shall deposit to the credit of the Texas
4-15 excellence fund established under Subchapter C from the first money
4-16 that comes to the state at the beginning of that fiscal year an
4-17 amount equal to the income earned from investment of the higher
4-18 education fund in the preceding state fiscal year as certified by
4-19 the comptroller, not to exceed $50 million.
4-20 SECTION 3. Sections 62.026(b) and (d), Education Code, are
4-21 amended to read as follows:
4-22 (b) The fund consists of the amount [$50 million] deposited
4-23 in the fund each state fiscal year under Section 62.025 [of this
4-24 code] and interest, dividends, and other income earned from the
4-25 investment of the fund.
4-26 (d) The comptroller shall administer and invest the fund.
4-27 In investing the fund, the comptroller has the same investment
5-1 authority as that provided under Sections 11a and 11b, Article VII,
5-2 Texas Constitution, or other law to the board of regents of The
5-3 University of Texas System with respect to the investment of the
5-4 permanent university fund. The investment authority granted to the
5-5 comptroller under this subsection is in addition to that provided
5-6 by Section 404.024, Government Code, or other law. The
5-7 comptroller, in consultation with the presiding officers of the
5-8 governing boards of the institutions eligible to benefit from the
5-9 income from the investment of the fund under Section 17, Article
5-10 VII, Texas Constitution, shall invest the fund in a manner that
5-11 maximizes the amount of income earned and gains realized from the
5-12 investment of the fund.
5-13 SECTION 4. This Act takes effect September 1, 2001.