78R1861 KSD-D
By: Ogden S.B. No. 666
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the matching excellence fund to
promote research and develop excellence at certain institutions of
higher education and to the abolition of the Texas excellence fund
and the university research fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 51, Education Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. MATCHING EXCELLENCE FUND
Sec. 51.451. PURPOSE. The matching excellence fund is
established to provide funding to promote increased research
capacity and to develop institutional excellence at general
academic teaching institutions.
Sec. 51.452. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "General academic teaching institution" has the
meaning assigned by Section 61.003.
Sec. 51.453. ADMINISTRATION. (a) The matching excellence
fund is a special fund in the state treasury outside the general
revenue fund.
(b) The coordinating board administers the matching
excellence fund and shall adopt rules for the administration of the
fund and this subchapter.
Sec. 51.454. SOURCE OF FUND. (a) The legislature may
appropriate or provide for the transfer of any available money to
the credit of the matching excellence fund.
(b) The coordinating board may solicit and accept gifts or
grants from any public or private source for the matching
excellence fund.
(c) All interest, dividends, and other income earned from
investment of the matching excellence fund shall be deposited to
the credit of the fund.
Sec. 51.455. DISTRIBUTION OF FUND. (a) As soon as
practicable in each state fiscal year, the coordinating board shall
distribute money from the matching excellence fund to each general
academic teaching institution in an amount equal to the total
amount of money received by the institution in the preceding state
fiscal year from private or federal sources to support educational
or research activities at the institution.
(b) If the money in the fund is insufficient to provide each
general academic teaching institution with the full amount provided
by Subsection (a), the coordinating board shall distribute the
money in the fund to the institutions in proportion to the amount to
which each institution is entitled under Subsection (a).
(c) If the coordinating board determines that a general
academic teaching institution lacks sufficient staff, experience,
or other resources to enable the institution to effectively seek
and obtain funds from private or federal sources to support
educational or research activities at the institution as
appropriate for the mission and programs of the institution, the
coordinating board may grant money from the matching excellence
fund in excess of the amount required to be distributed under
Subsection (a) to the institution in an amount the coordinating
board considers appropriate to assist the institution in developing
those resources. An institution must apply in order to receive a
grant under this subsection.
Sec. 51.456. USE OF MONEY FROM FUND. (a) Except as
provided by Subsection (b), a general academic teaching institution
may use money received by the institution from the matching
excellence fund only for the support and maintenance of educational
and general activities, including research and student services,
that promote increased research or develop institutional
excellence at the institution.
(b) A general academic teaching institution may use money
received by the institution from the matching excellence fund under
Section 61.455(c) only to develop resources for seeking and
obtaining funds from private or federal sources to support
educational or research activities at the institution.
Sec. 51.457. ANNUAL REPORT. (a) Each general academic
teaching institution that receives money under this subchapter in a
state fiscal year shall prepare a report at the end of that fiscal
year describing how the institution used the money. The
institution shall include in the report information regarding the
use of money spent in that fiscal year that the institution received
under this subchapter in a preceding fiscal year.
(b) The institution shall deliver a copy of the report to
the coordinating board not later than December 1 after the end of
the fiscal year covered by the report.
SECTION 2. Sections 62.025(a) and (c), Education Code, are
amended to read as follows:
(a) Not later than November 1 of each state fiscal year, the
comptroller shall deposit the first $50 million that comes to the
state at the beginning of each state fiscal year and that is not
dedicated by other law [as follows:
[(1) except as provided by Subsections (d) and (e), an
amount equal to the portion of the total return on all investment
assets of the higher education fund in the preceding state fiscal
year computed by multiplying that total return by the percentage of
the total return on all investment assets of the permanent fund for
tobacco education and enforcement that constitutes available
earnings as determined by the comptroller under Section 403.1068,
Government Code, in that year must be deposited to the credit of the
Texas excellence fund established under Subchapter C; and
[(2) the remaining amount must be deposited] to the
credit of the higher education fund.
(c) The deposit required by this section to the higher
education fund expires on September 1 after the date the
comptroller certifies that the value of the higher education fund
is $2 billion. [In each state fiscal year that begins on or after
that date, the comptroller shall deposit to the credit of the Texas
excellence fund established under Subchapter C from the first money
that comes to the state at the beginning of that fiscal year an
amount, not to exceed $50 million, equal to the portion of the total
return on all investment assets of the higher education fund in the
preceding state fiscal year computed by multiplying that total
return by the percentage of the total return on all investment
assets of the permanent fund for tobacco education and enforcement
that constitutes available earnings as determined by the
comptroller under Section 403.1068, Government Code.]
SECTION 3. The following laws are repealed:
(1) Sections 62.025(d) and (e), Education Code;
(2) Subchapter C, Chapter 62, Education Code; and
(3) Subchapter D, Chapter 62, Education Code.
SECTION 4. (a) The first distribution of money from the
matching excellence fund established by this Act shall be made in
the state fiscal year beginning September 1, 2003.
(b) The Texas Higher Education Coordinating Board shall
adopt initial rules for the matching excellence fund as required by
Section 51.453, Education Code, as added by this Act, as soon as
practicable after the effective date of this Act. The coordinating
board may adopt those initial rules in the manner provided by law
for emergency rules.
(c) On and after the effective date of this Act, any amount
remaining in or payable to the credit of the Texas excellence fund
or the university research fund shall be transferred to the credit
of the matching excellence fund established by this Act.
SECTION 5. This Act takes effect September 1, 2003.