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  81R22134 KSD-D
 
  By: Branch, McCall, Coleman, Madden, et al. H.B. No. 51
 
  Substitute the following for H.B. No. 51:
 
  By:  Branch C.S.H.B. No. 51
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to funding and incentives to support emerging public
  research universities in developing and maintaining programs of the
  highest tier.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 61, Education Code, is amended by adding
  Subchapters FF, GG, and HH to read as follows:
  SUBCHAPTER FF. RESEARCH UNIVERSITY DEVELOPMENT FUND
         Sec. 61.9771.  DEFINITIONS. In this subchapter:
               (1)  "Eligible institution" means an emerging research
  university.
               (2)  "Emerging research university" means an
  institution of higher education that the board determines:
                     (A)  is a research university as that term is
  commonly used in classifying or ranking institutions of higher
  education; and
                     (B)  has demonstrated a commitment to developing
  and maintaining degree and research programs that support the
  mission of the institution and the institution's efforts to improve
  its ranking among research universities.
         Sec. 61.9772.  PURPOSE. The purpose of this subchapter is to
  provide funding to eligible institutions for the enhancement of
  research productivity to enable those institutions to achieve
  national prominence as major research universities.
         Sec. 61.9773.  FUNDING. (a) For each state fiscal year, the
  board shall distribute any funds appropriated by the legislature
  for the purposes of this subchapter, and any other funds made
  available for the purposes of this subchapter, among eligible
  institutions in proportion to the total amount of restricted
  research funds expended by each institution in the two most recent
  state fiscal years.
         (b)  For purposes of Subsection (a), the amount of restricted
  research funds expended by an eligible institution in a state
  fiscal year is the amount of those funds as reported to the board by
  the institution for that year, subject to any adjustment by the
  board in accordance with the standards and accounting methods the
  board prescribes for purposes of this section.
         Sec. 61.9774.  USE OF ALLOCATED AMOUNTS. 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.
         Sec. 61.9775.  RULES. The board shall adopt rules for the
  administration of this subchapter, including rules requiring
  eligible institutions to report necessary information to the board.
  SUBCHAPTER GG. TEXAS RESEARCH INCENTIVE PROGRAM (TRIP)
         Sec. 61.9791.  DEFINITIONS. In this subchapter:
               (1)  "Eligible institution" means an emerging research
  university.
               (2)  "Emerging research university" means an
  institution of higher education that the board determines:
                     (A)  is a research university as that term is
  commonly used in classifying or ranking institutions of higher
  education; and
                     (B)  has demonstrated a commitment to developing
  and maintaining degree and research programs that support the
  mission of the institution and the institution's efforts to improve
  its ranking among research universities.
               (3)  "Program" means the Texas Research Incentive
  Program (TRIP) established under this subchapter.
         Sec. 61.9792.  PROGRAM ADMINISTRATION. The board shall
  administer the Texas Research Incentive Program (TRIP) in
  accordance with this subchapter to provide matching funds to assist
  eligible institutions in leveraging private gifts for the
  enhancement of research productivity and faculty recruitment.
         Sec. 61.9793.  MATCHING GRANTS.  (a)  An eligible
  institution that receives cash gifts from private sources in a
  state fiscal year for the purpose of enhancing research activities
  at the institution, including gifts for endowments or endowed
  chairs or professorships, research or academic facilities,
  equipment, program costs, or graduate stipends or fellowships, is
  entitled to receive, out of funds appropriated for the purposes of
  the program for that fiscal year, a matching grant in an amount
  determined according to the following rates:
               (1)  50 percent of the total amount of the gifts
  received, if the total amount of those gifts is $100,000 or more but
  not more than $999,999;
               (2)  75 percent of the total amount of the gifts
  received, if the total amount of those gifts is $1 million or more
  but not more than $1,999,999; or
               (3)  100 percent of the total amount of the gifts
  received, if the total amount of those gifts is $2 million or more.
         (b)  An eligible institution is not entitled to matching
  funds under the program for:
               (1)  an in-kind gift;
               (2)  a gift that has been pledged but has not been
  received by the institution;
               (3)  a gift for undergraduate scholarships, grants, or
  other financial aid; or
               (4)  any portion of gifts received by the institution
  from a single source in a state fiscal year in excess of $10
  million.
         (c)  The board shall establish procedures for the
  certification by the board of an eligible institution's receipt of
  a qualifying gift. A gift must be certified as of the date the gift
  was deposited by the institution in a depository bank or invested by
  the institution as authorized by law.
         (d)  If the funds appropriated for the program for a state
  fiscal year are insufficient to provide matching grants in the
  amounts specified by this section for all qualifying private gifts
  received by eligible institutions during that fiscal year, the
  board shall provide matching grants for those gifts in order of
  their certification dates under Subsection (c) and shall provide
  matching grants for any remaining unmatched gifts in the following
  fiscal year. Unmatched gifts carried forward from a preceding
  fiscal year under this subsection shall be given priority over
  gifts received in the current fiscal year, and shall be provided
  matching grants under this section in order of their certification
  dates. An unmatched gift shall continue to be carried forward to
  subsequent fiscal years until a matching grant is awarded for the
  gift.
         (e)  Matching grants received by an eligible institution
  under this section may not be considered as a basis to reduce,
  directly or indirectly, the amount of money otherwise appropriated
  or allocated to the institution under any other law.
         Sec. 61.9794.  USE OF MATCHING GRANTS. An eligible
  institution may use matching grant money received under this
  subchapter for the same purpose as that for which the matched gift
  was received or for the support and maintenance of educational and
  general activities that promote increased research capacity at the
  institution.
         Sec. 61.9795.  RULES. The board shall adopt rules for the
  administration of this subchapter, including rules requiring
  eligible institutions to report necessary information to the board.
  SUBCHAPTER HH. NATIONAL RESEARCH UNIVERSITY BENCHMARK FUND
         Sec. 61.9801.  DEFINITIONS. In this subchapter:
               (1)  "Eligible institution" means an emerging research
  university.
               (2)  "Emerging research university" means an
  institution of higher education that the board determines:
                     (A)  is a research university as that term is
  commonly used in classifying or ranking institutions of higher
  education; and
                     (B)  has demonstrated a commitment to developing
  and maintaining degree and research programs that support the
  mission of the institution and the institution's efforts to improve
  its ranking among research universities.
         Sec. 61.9802.  PURPOSE. The purpose of this subchapter is to
  provide funding to incentivize the enhancement of emerging research
  universities by rewarding those universities that meet critical
  benchmarks toward achieving national prominence as major research
  universities.
         Sec. 61.9803.  FUNDING. (a) Except as provided by
  Subsection (b), for each state fiscal year, the board shall
  distribute any funds appropriated by the legislature for the
  purposes of this subchapter, and any other funds made available for
  the purposes of this subchapter, among eligible institutions in
  proportion to the total number of points assigned to each
  institution for that fiscal year under Subsection (c).
         (b)  If the allocations for eligible institutions calculated
  under Subsection (a) would result in the three eligible
  institutions to which the highest total number of points are
  assigned under Subsection (c) receiving a total amount that is less
  than 80 percent of the total amount available for distribution to
  all eligible institutions under Subsection (a), the total amount of
  funds available for distribution under that subsection for that
  state fiscal year shall be distributed as follows:
               (1)  80 percent shall be distributed among the three
  eligible institutions receiving the highest total number of points
  for that fiscal year under Subsection (c) in proportion to the total
  number of points assigned to each of those institutions; and
               (2)  the remainder of those funds shall be distributed
  among the remaining eligible institutions in proportion to the
  total number of points assigned to each of those institutions for
  that fiscal year under Subsection (c).
         (c)  The following points are assigned to each eligible
  institution for a fiscal year based on information submitted to the
  board by each institution for each of the two state fiscal years
  immediately preceding the state fiscal year for which the funds are
  distributed:
               (1)  one point if the institution's library was a member
  of the Association of Research Libraries in each of those years;
               (2)  one point if the institution had a chapter of Phi
  Beta Kappa in each of those years;
               (3)  one point if the institution employed at least
  three but fewer than eight tenured faculty members or full-time
  employees who are Nobel Prize Laureates or who have been elected to
  a national academy in each of those years;
               (4)  two points if the institution employed at least
  eight tenured faculty members or full-time equivalent employees who
  are Nobel Prize Laureates or who have been elected to a national
  academy in each of those years;
               (5)  one point if the institution awarded at least 200
  but fewer than 300 doctor of philosophy degrees in each of those
  years;
               (6)  two points if the institution awarded at least 300
  doctor of philosophy degrees in each of those years;
               (7)  one point if the institution expended at least $45
  million but less than $75 million in restricted research funds in
  each of those years;
               (8)  two points if the institution expended $75 million
  or more in restricted research funds in each of those years;
               (9)  one point if the total amount of the institution's
  restricted research expenditures in each of those years divided by
  the total number of full-time tenured and tenure-track faculty
  members employed by the institution in the same year is at least
  $75,000 but less than $125,000;
               (10)  two points if the total amount of the
  institution's restricted research expenditures in each of those
  years divided by the total number of full-time tenured and
  tenure-track faculty members employed by the institution in the
  same year is $125,000 or more;
               (11)  one point if:
                     (A)  the average score on the Scholastic
  Assessment Test (SAT) of entering freshman students at the
  institution for each of those years is at least 95 percent of the
  average SAT score of entering freshman students at Texas A&M
  University and The University of Texas at Austin for the same year;
  or
                     (B)  at least 35 percent of entering freshman
  students at the institution in each of those years graduated in the
  top 10 percent of the student's high school graduating class; and
               (12)  one point if the aggregate value of the
  institution's endowment funds for educational and general use is at
  least $500 million for each of those years.
         (d)  For purposes of Subsections (c)(3) and (4), a faculty
  member or other employee may be counted only once for a particular
  year.
         (e)  For purposes of Subsections (c)(9) and (10), the amount
  of restricted research funds expended by an eligible institution in
  a state fiscal year is the amount of those funds as reported to the
  board by the institution for that year, subject to any adjustment by
  the board in accordance with the standards and accounting methods
  the board prescribes for purposes of this section.
         (f)  For purposes of Subsection (c)(12), an eligible
  institution that receives benefits from the permanent university
  fund shall be assigned, as part of the aggregate value of the
  institution's endowment funds for educational and general use, an
  amount equal to the total amount of expenditures made on behalf of
  the institution from the available university fund for the
  preceding 10 state fiscal years.
         Sec. 61.9804.  RULES.  The board shall adopt rules for the
  administration of this subchapter, including rules requiring
  eligible institutions to report necessary information to the board.
         SECTION 2.  The Texas Higher Education Coordinating Board
  shall adopt rules relating to the administration of Subchapters FF,
  GG, and HH, Chapter 61, Education Code, as added by this Act, as
  soon as practicable after the effective date of this Act.
         SECTION 3.  This Act takes effect September 1, 2009.