Amend CSSB 1560 (Senate committee printing) as follows:                      
	(1)  Add the following appropriately numbered SECTIONS to 
the bill and renumber the subsequent SECTIONS of the bill 
accordingly:
	SECTION __.  Section 61.059, Education Code, is amended by 
adding Subsection (o) to read as follows:
	(o)  In addition to the other funding recommendations 
required by this section, biennially the board shall determine the 
amount that the board considers appropriate for purposes of 
providing funding under Section 61.0596 in the following state 
fiscal biennium to carry out the purposes of that section and shall 
make recommendations to the governor and the Legislative Budget 
Board for funding those programs in that biennium.  To the extent 
the board considers appropriate, the board may include in the 
formulas established under this section the funding to be provided 
under Section 61.0596.
	SECTION __.  Subchapter C, Chapter 61, Education Code, is 
amended by adding Section 61.0596 to read as follows:
	Sec. 61.0596.  UNIVERSITY FUNDING FOR EXCELLENCE IN SPECIFIC 
PROGRAMS AND FIELDS; INCENTIVE GRANTS.  (a)  The board shall 
administer this section to encourage and assist general academic 
teaching institutions, other than public state colleges, that are 
not research universities or emerging research universities 
according to the institutional groupings under the board's higher 
education accountability system to develop and maintain specific 
programs or fields of study of the highest national rank or 
recognition for that type of program or field.
	(b)  To assist the institution in achieving the highest 
national rank or recognition for the applicable degree program and 
from money available for the purpose, the board shall award 
incentive grants to general academic teaching institutions 
described by Subsection (a) that the board considers to have 
demonstrated the greatest commitment to success in developing or 
improving, consistent with the mission of the institution, the 
quality of an existing degree program designated by the 
institution.  An institution must use a grant under this subsection 
for faculty recruitment or other faculty support with respect to 
the designated degree program for which the grant is awarded, 
including establishment of endowed faculty positions or 
enhancement of faculty compensation as considered appropriate by 
the institution.
	(c)  An institution may designate only one degree program at 
a time for consideration for new funding under Subsection (b).  The 
institution may change its designation with the consent of the 
board.  If the board determines that an institution has met all the 
applicable benchmarks for the institution's designated program, 
the institution may designate another degree program for 
consideration for new funding under Subsection (b).
	(d)  The board shall establish a series of benchmarks 
applicable to each degree program designated by an institution 
under this section.  The institution becomes eligible for funding 
under Subsection (b) for each benchmark the board determines that 
the institution has met.  The board shall establish the amount of 
funding for each benchmark met in a manner that provides an 
effective incentive to assist the institution to continue its 
efforts to meet the remaining benchmarks for its designated 
program.
	(e)  Unless the board determines that a different number of 
benchmarks is appropriate, the board shall establish three 
benchmarks for each designated degree program.  The board shall 
identify one or more persons who have relevant expertise and do not 
reside in this state to assist the board in establishing the 
benchmarks and associated funding levels for each type of degree 
program designated by an institution under this section.
	(f)  An institution that designates a degree program to 
receive funding under Subsection (b) shall reimburse the board for 
the costs incurred by the board in administering this section with 
respect to the institution's designated program.
	(g)  In addition to supporting the programs designated by 
institutions for consideration to receive incentive grants under 
Subsection (b), from money available for the purpose, the board 
shall provide additional money as the board determines appropriate 
to assist the institutions described by Subsection (a) in 
maintaining the excellence of programs or fields of study that have 
achieved the highest national ranking or recognition for that type 
of program or field.
	(h)  The legislature may not appropriate money for grants or 
other financial assistance to general academic teaching 
institutions under this section before the board certifies that one 
or more institutions have met at least one of the benchmarks 
established by the board for the institutions' designated degree 
programs under Subsection (d).
	(2)  Strike SECTION 6 of the bill (page 3, lines 40-48) and 
substitute the following appropriately numbered SECTION:
	SECTION __.  (a)  Except as provided by Subsection (b) of 
this section, this Act takes 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, except 
as provided by Subsection (b) of this section, this Act does not 
take effect.
	(b)  This section takes effect September 1, 2009.  The 
sections of this Act adding Sections 61.059(o) and 61.0596, 
Education Code, take effect September 1, 2009, but only if a 
specific appropriation for the implementation of those provisions 
of the Education Code is provided in a general appropriations act of 
the 81st Legislature.