Amend CSHB 51 as follows:
(1) Strike page 1, lines 6 through 8, and substitute the following:
SECTION 1. The heading to Chapter 62, Education Code, is
amended to read as follows:
CHAPTER 62. CONSTITUTIONAL AND STATUTORY [DIVISION OF
CONSTITUTIONALLY APPROPRIATED] FUNDS TO SUPPORT [AMONG CERTAIN]
INSTITUTIONS OF HIGHER EDUCATION[; RESEARCH DEVELOPMENT FUND]
SECTION 2. Chapter 62, Education Code, is amended by adding
Subchapters C and D to read as follows:
SUBCHAPTER C. RESEARCH UNIVERSITY DEVELOPMENT FUND
(2) On page 1, line 9, strike "61.9771" and substitute
"62.051".
(3) On page 1, line 13, strike "board" and substitute
"coordinating board".
(4) On page 1, between lines 20 and 21, insert the
following:
(3) "Institution of higher education" has the meaning
assigned by Section 61.003.
(5) On page 1, line 21, strike "61.9772" and substitute
"62.052".
(6) On page 2, line 1, strike "61.9773" and substitute
"62.053".
(7) On page 2, line 2, strike "board" and substitute
"comptroller".
(8) On page 2, lines 10, 12, and 13, strike "board" and
substitute "coordinating board".
(9) On page 2, between lines 13 and 14, insert the
following:
(c) The legislature may not appropriate money for purposes
of this subchapter in a state fiscal year unless the legislature
appropriates an equal amount of money for that fiscal year for the
Texas Research Incentive Program under Subchapter D.
(10) On page 2, line 14, strike "61.9774" and substitute
"62.054".
(11) On page 2, line 18, strike "61.9775" and substitute
"62.055".
(12) On page 2, lines 18 and 20, strike "board" and
substitute "coordinating board".
(13) On page 2, line 21, strike "Subchapter GG" and
substitute "Subchapter D".
(14) On page 2, line 22, strike "61.9791" and substitute
"62.071".
(15) On page 2, line 26, strike "board" and substitute
"coordinating board".
(16) On page 3, between lines 6 and 7, insert the following:
(3) "Institution of higher education" has the meaning
assigned by Section 61.003.
(17) On page 3, line 7, strike "(3)" and substitute "(4)".
(18) On page 3, line 9, strike "61.9792" and substitute
"62.072".
(19) On page 3, line 9, strike "The board" and substitute
"(a) The coordinating board".
(20) On page 3, at the end of line 13, add "The comptroller
shall deliver any payment of matching funds to which an eligible
institution is entitled under the program."
(21) On page 3, between lines 13 and 14, insert the
following:
(b) The legislature may not appropriate money for purposes
of this subchapter in a state fiscal year unless the legislature
appropriates an equal amount of money for that fiscal year for the
Research University Development Fund under Subchapter C.
(22) On page 3, line 14, strike "61.9793" and substitute
"62.073".
(23) On page 4, lines 14, 15, and 23, strike "board" and
substitute "coordinating board".
(24) On page 4, lines 23 and 24, strike "provide" and
substitute "authorize".
(25) On page 5, line 10, strike "61.9794" and substitute
"62.074".
(26) On page 5, line 16, strike "61.9795" and substitute
"62.075".
(27) On page 5, lines 16 and 18, strike "board" and
substitute "coordinating board".
(28) Strike page 5, line 19, through page 9, line 20, and
substitute the following:
SECTION 3. Chapter 62, Education Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. NATIONAL RESEARCH UNIVERSITY FUND
Sec. 62.121. PURPOSE. The purpose of this subchapter is to
allocate appropriations from the national research university fund
to provide a dedicated, independent, and equitable source of
funding to enable emerging research universities in this state to
achieve national prominence as major research universities.
Sec. 62.122. DEFINITIONS. In this subchapter:
(1) "Eligible institution" means a general academic
teaching institution that is eligible to receive distributions of
money under this subchapter.
(2) "Fund" means the national research university
fund.
(3) "General academic teaching institution" has the
meaning assigned by Section 61.003.
Sec. 62.123. ADMINISTRATION AND INVESTMENT OF FUND.
(a) The national research university fund is a fund outside the
state treasury in the custody of the comptroller.
(b) The comptroller shall administer and invest the fund in
accordance with Section 20, Article VII, Texas Constitution.
Sec. 62.124. FUNDING. (a) The fund consists of any
amounts appropriated or transferred to the credit of the fund under
the Texas Constitution or otherwise appropriated or transferred to
the credit of the fund under this section or another law.
(b) The comptroller shall deposit to the credit of the fund
all interest, dividends, and other income earned from investment of
the fund.
(c) The comptroller may accept gifts or grants from any
public or private source for the fund.
Sec. 62.125. ELIGIBILITY TO RECEIVE DISTRIBUTIONS FROM
FUND. (a) A general academic teaching institution is eligible to
receive a distribution of money under this subchapter for each year
of a state fiscal biennium if:
(1) the institution is designated as an emerging
research university under the coordinating board's accountability
system;
(2) in each of the two state fiscal years preceding the
state fiscal biennium, the institution expended at least $45
million in restricted research funds; and
(3) the institution satisfies at least four of the
following criteria:
(A) the aggregate value of the institution's
endowment funds is at least $400 million;
(B) the institution awarded at least 200 doctor
of philosophy degrees during each of the two academic years
preceding the state fiscal biennium;
(C) the entering freshman class of the
institution for each of those two academic years demonstrated high
academic achievement, as determined according to standards
prescribed by the coordinating board by rule, giving consideration
to the future educational needs of the state as articulated in the
coordinating board's "Closing the Gaps" report;
(D) the institution is designated as a member of
the Association of Research Libraries or has a Phi Beta Kappa
chapter or has received an equivalent recognition of research
capabilities and scholarly attainment as determined according to
standards prescribed by the coordinating board by rule;
(E) the faculty of the institution for each of
those two academic years was of high quality, as determined
according to coordinating board standards based on the professional
achievement and recognition of the institution's faculty,
including the election of faculty members to national academies;
and
(F) the institution has demonstrated a
commitment to high quality graduate education, as determined
according to standards prescribed by the coordinating board by
rule, including the number of graduate-level programs at the
institution, the institution's admission standards for graduate
programs, and the level of institutional support for graduate
students.
(b) A general academic teaching institution that becomes
eligible to receive a distribution of money under this subchapter
remains eligible to receive a distribution in each subsequent state
fiscal year.
Sec. 62.126. ACCOUNTING STANDARDS; VERIFICATION OF
INFORMATION. (a) The coordinating board, in consultation with the
State Auditor's Office, by rule shall prescribe standard methods of
accounting and standard methods of reporting information for the
purpose of determining the eligibility of institutions under
Section 62.125.
(b) As soon as practicable in each even-numbered year, based
on information submitted by the institutions to the coordinating
board as required by the coordinating board, the coordinating board
shall certify to the comptroller the institutions that are
determined to be initially eligible for distributions of money from
the fund for the following state fiscal biennium.
(c) At the request of the coordinating board, the State
Auditor's Office shall verify the information supporting the
coordinating board's determination under Subsection (b).
Sec. 62.127. INELIGIBILITY OF INSTITUTIONS RECEIVING
PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE. The University
of Texas at Austin, Texas A&M University, and Prairie View A&M
University are ineligible to receive money under this subchapter.
Sec. 62.128. ALLOCATION OF APPROPRIATED FUNDS TO ELIGIBLE
INSTITUTIONS. In each state fiscal year, the comptroller shall
distribute to eligible institutions the total amount appropriated
from the fund for that fiscal year. The amount allocated to the
eligible institutions shall be based on an equitable formula
adopted by the legislature to carry out the purposes of the fund as
established by Section 20, Article VII, Texas Constitution. In
adopting the allocation formula, the legislature shall consider the
recommendations of the coordinating board, including
recommendations on the appropriate elements and relative weights of
elements of the formula.
Sec. 62.129. USE OF ALLOCATED AMOUNTS. (a) An eligible
institution may use money received under this subchapter only for
the support and maintenance of educational and general activities
that promote increased research capacity at the institution.
(b) For purposes of Subsection (a), permitted activities
include the use of the money to:
(1) provide faculty support and pay faculty salaries;
(2) purchase equipment or library materials;
(3) pay graduate stipends; and
(4) support research performed at the institution,
including undergraduate research.
(c) Money received in a fiscal year by an institution under
this subchapter that is not used in that fiscal year by the
institution may be held and used by the institution in subsequent
fiscal years for the purposes prescribed by this section.
SECTION 4. Section 62.094, Education Code, is amended to
read as follows:
Sec. 62.094. FUNDING. (a) The research development fund
consists of the [amount deposited to the credit of the fund under
Section 62.025 in each state fiscal year, the amount appropriated
or transferred to the credit of the fund by the legislature under
Subsection (b), and any other] amounts appropriated or transferred
to the credit of the fund under this section or other law.
(b) [In each state fiscal year, the legislature may
appropriate or provide for the transfer to the credit of the
research development fund of an amount not less than the amount
deposited to the credit of the fund under Section 62.025 in that
fiscal year.
[(c)] The comptroller shall deposit all interest,
dividends, and other income earned from investment of the research
development fund to the credit of the fund.
(c) [(d)] The comptroller may accept gifts or grants from
any public or private source for the research development fund.
SECTION 5. Sections 62.025 and 62.026, Education Code, are
repealed.
(29) On page 9, line 21, strike "SECTION 2" and substitute
"SECTION 6".
(30) On page 9, lines 22 and 23, strike "Subchapters FF, GG,
and HH, Chapter 61, Education Code" and substitute "Subchapters C,
D, and F, Chapter 62, Education Code".
(31) On page 9, strike line 25 and substitute the following:
SECTION 7. (a) Except as provided by Subsection (b) of this
section, this Act takes effect September 1, 2009.
(b) Sections 3, 4, and 5 of this Act take effect January 1,
2010, but only if the constitutional amendment proposed by the 81st
Legislature, Regular Session, 2009, establishing the national
research university fund to enable emerging research universities
in this state to achieve national prominence as major research
universities and transferring the balance of the higher education
fund to the national research university fund is approved by the
voters. If that constitutional amendment is not approved by the
voters, Sections 3, 4, and 5 of this Act do not take effect.