By:  Harris                                           S.B. No. 1567
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the creation of the Emerging University excellence fund
 1-3     to promote research and excellence at certain institutions of
 1-4     higher education.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Chapter 51, Education Code, is amended by adding
 1-7     Subchapter V to read as follows:
 1-8             SUBCHAPTER V.  EMERGING UNIVERSITY EXCELLENCE FUND
 1-9           Sec. 51.851.  PURPOSE.  The Emerging University excellence
1-10     fund is established to provide funding to promote increased
1-11     research capacity and to develop institutional excellence at
1-12     eligible general academic teaching institutions in order to ensure
1-13     that Texas and its workforce remain at the forefront of scientific
1-14     and technological innovation. 
1-15           Sec. 51.852.  DEFINITIONS.  In this subchapter:
1-16                 (1)  "Eligible comprehensive research university" means
1-17     an eligible general academic teaching institution that:
1-18     (A)  participates in the Permanent University Fund;
1-19     (B)  offers a full range of baccalaureate programs and a wide range
1-20     of masters and doctoral programs; and,
1-21     (C)  has an active research program as reflected in annual
1-22     expenditure of restricted research funds and related indirect costs
1-23     as reported to the Texas Higher Education Coordinating Board.
 2-1     (d)  The University of Texas at Austin and Texas A&M University at
 2-2     College Station are not eligible comprehensive research
 2-3     universities for the purposes of this subchapter.
 2-4           Sec. 51.853.  ADMINISTRATION.  (a)  The Emerging University
 2-5     excellence fund is a fund outside the state treasury in the custody
 2-6     of the comptroller.
 2-7           (b)  The comptroller shall administer and invest the fund.
 2-8           Sec.51.854.  FUNDING.  (a)  The legislature may appropriate
 2-9     or provide for the transfer of any available money to the credit of
2-10     the Emerging University excellence fund.
2-11           (b)  The comptroller shall deposit all interest, dividends,
2-12     and other income earned from investment of the Emerging University
2-13     excellence fund to the credit of the fund.
2-14           (c)  The comptroller may accept gifts or grants from any
2-15     public or private source for the fund.
2-16           (d)  An institution may use money appropriated from the fund
2-17     only for the support and maintenance of educational and general
2-18     activities, including research and student services, that promote
2-19     increased research capacity and develop institutional excellence at
2-20     the institution.
2-21           (d)  Subsection (a) does not apply to the funding of the
2-22     Emerging University excellence fund for the state fiscal biennium
2-23     ending August 31, 2003.  For each fiscal year in the state fiscal
2-24     biennium ending August 31, 2003, a minimum of fifteen million
2-25     dollars shall be reallocated from the Capital Equity and Excellence
2-26     Funds contained in the General Appropriations Act.  This subsection
 3-1     expires January 1, 2004.
 3-2           Sec. 51.855.  APPROPRIATION AND ALLOCATION OF FUND TO
 3-3     ELIGIBLE INSTITUTIONS.  (a)  In each state fiscal year, the
 3-4     legislature shall appropriate all or part of the money in the
 3-5     Emerging University excellence fund to eligible comprehensive
 3-6     research universities and other eligible general academic teaching
 3-7     institutions as follows:
 3-8                 (1)  Each Eligible Comprehensive Research University
 3-9     shall be allocated funds in direct proportion to their relative
3-10     share of doctoral degrees awarded in the two most recent fiscal
3-11     years and in direct proportion to their expenditure of restricted
3-12     research funds and related indirect costs in the two most recent
3-13     years as reported in the institution's annual financial reports.
3-14                 (2)  Five percent of any excellence funds allocated
3-15     shall be reserved for The University of Texas Permian Basin and The
3-16     University of Texas Tyler and shall be allocated in terms of their
3-17     relative research activity as measured by two fiscal years of
3-18     expended restricted research funds and indirect costs as reflected
3-19     in the institution's annual reports.
3-20     SECTION 2.  This Act takes effect September 1, 2001.