|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
|
relating to measures to enhance and maintain the quality of state |
|
universities, including funding and incentives to support emerging |
|
public research universities in developing and maintaining |
|
programs of the highest tier, to the abolition of the higher |
|
education fund, and to the institutional groupings under the Texas |
|
Higher Education Coordinating Board's accountability system. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subchapter G, Chapter 51, Education Code, is |
|
amended by adding Section 51.358 to read as follows: |
|
Sec. 51.358. LONG-TERM STRATEGIC PLAN FOR RESEARCH |
|
UNIVERSITY OR EMERGING RESEARCH UNIVERSITY. (a) The governing |
|
board of each institution of higher education designated as a |
|
research university or emerging research university under the Texas |
|
Higher Education Coordinating Board's accountability system shall |
|
submit to the coordinating board, in the form and manner prescribed |
|
by the coordinating board, a detailed, long-term strategic plan |
|
documenting the strategy by which the institution intends to |
|
achieve recognition as a research university, or enhance the |
|
university's reputation as a research university, as applicable. |
|
(b) The Texas Higher Education Coordinating Board shall |
|
adopt rules for the administration of this section. |
|
SECTION 2. 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 3. 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). |
|
SECTION 4. Subchapter C, Chapter 61, Education Code, is |
|
amended by adding Section 61.0904 to read as follows: |
|
Sec. 61.0904. REVIEW OF INSTITUTIONAL GROUPINGS. At least |
|
once every 10 years, the board shall conduct a review of the |
|
institutional groupings under the board's accountability system, |
|
including a review of the criteria for and definitions assigned to |
|
those groupings. |
|
SECTION 5. 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 6. Section 62.003(1), Education Code, is amended to |
|
read as follows: |
|
(1) Except as otherwise provided by Subchapters C, D, |
|
F, and G, "eligible ["Eligible] institution" means the eligible |
|
agencies and institutions of higher education listed in Article |
|
VII, Section 17(b), of the Constitution of Texas, and any |
|
institution or agency of higher education that is later made |
|
eligible to participate in the disbursement of funds pursuant to |
|
Article VII, Section 17(c), of the Constitution of Texas. |
|
SECTION 7. Chapter 62, Education Code, is amended by adding |
|
Subchapters C, D, and F to read as follows: |
|
SUBCHAPTER C. RESEARCH UNIVERSITY DEVELOPMENT FUND |
|
Sec. 62.051. DEFINITIONS. In this subchapter: |
|
(1) "Eligible institution" means an institution of |
|
higher education designated as a research university or emerging |
|
research university under the coordinating board's accountability |
|
system. |
|
(2) "Institution of higher education" has the meaning |
|
assigned by Section 61.003. |
|
Sec. 62.052. PURPOSE. The purpose of this subchapter is to |
|
provide funding to research universities and emerging research |
|
universities for the recruitment and retention of highly qualified |
|
faculty and the enhancement of research productivity at those |
|
universities. |
|
Sec. 62.053. FUNDING. (a) For each state fiscal year, the |
|
coordinating 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, to |
|
eligible institutions based on the average amount of total research |
|
funds expended by each institution annually during the three most |
|
recent state fiscal years, according to the following rates: |
|
(1) at least $1 million for every $10 million of the |
|
average annual amount of those research funds expended by the |
|
institution, if that average amount for the institution is $50 |
|
million or more; and |
|
(2) at least $500,000 for every $10 million of the |
|
average annual amount of those research funds expended by the |
|
institution, if that average amount for the institution is less |
|
than $50 million. |
|
(b) For purposes of Subsection (a), the amount of total |
|
research funds expended by an eligible institution in a state |
|
fiscal year is the amount of those funds as reported to the |
|
coordinating board by the institution for that fiscal year, subject |
|
to any adjustment by the coordinating board in accordance with the |
|
standards and accounting methods the coordinating board prescribes |
|
for purposes of this section. If the funds available for |
|
distribution for a state fiscal year under Subsection (a) are not |
|
sufficient to provide the amount specified by Subsection (a) for |
|
each eligible institution or exceed the amount sufficient for that |
|
purpose, the available amount shall be distributed in proportion to |
|
the total amount to which each institution is otherwise entitled |
|
under Subsection (a). |
|
Sec. 62.054. RULES. The coordinating board shall adopt |
|
rules for the administration of this subchapter, including any |
|
rules the coordinating board considers necessary regarding the |
|
submission to the coordinating board by eligible institutions of |
|
any student data required for the coordinating board to carry out |
|
its duties under this subchapter. |
|
SUBCHAPTER D. PERFORMANCE INCENTIVE FUNDING |
|
Sec. 62.071. DEFINITIONS. In this subchapter: |
|
(1) "At-risk student" means an undergraduate student |
|
of an eligible institution: |
|
(A) whose score on the Scholastic Assessment Test |
|
(SAT) or the American College Test (ACT) is less than the national |
|
mean score of students' scores on that test; |
|
(B) who has been awarded a grant under the |
|
federal Pell Grant program; |
|
(C) who was 20 years of age or older on the date |
|
the student initially enrolled in the institution; |
|
(D) who is enrolled as a part-time student; or |
|
(E) who did not receive a high school diploma but |
|
received a high school equivalency certificate within the last six |
|
years. |
|
(2) "Critical field" means: |
|
(A) the field of engineering, computer science, |
|
mathematics, physical science, allied health, nursing, or teacher |
|
certification in a field of science or mathematics; and |
|
(B) any other field of study identified as a |
|
critical field by the coordinating board in "Closing the Gaps," the |
|
state's master plan for higher education. |
|
(3) "Eligible institution" means a general academic |
|
teaching institution other than a public state college. |
|
(4) "General academic teaching institution" and |
|
"public state college" have the meanings assigned by Section |
|
61.003. |
|
Sec. 62.072. FUNDING. (a) For each state fiscal year, the |
|
coordinating board shall distribute any performance incentive |
|
funds appropriated by the legislature for purposes of this |
|
subchapter, and any other funds made available for the purposes of |
|
this subchapter, to eligible institutions as follows: |
|
(1) 50 percent to be distributed among eligible |
|
institutions in proportion to the increase, if any, in the average |
|
number of degrees awarded annually by each institution in the two |
|
most recent fiscal years from the average number of degrees awarded |
|
annually by that institution in the two fiscal years immediately |
|
preceding those fiscal years, using the weights assigned to each |
|
degree under the table prescribed by Subsection (b); and |
|
(2) the remaining 50 percent to be distributed among |
|
eligible institutions in proportion to the average number of |
|
degrees awarded annually by each institution in the three most |
|
recent fiscal years, using the weights assigned to each degree |
|
under the table prescribed by Subsection (b). |
|
(b) A number of points is assigned for each degree awarded |
|
by an eligible institution according to the following table: |
|
POINTS |
|
Noncritical Field/Not At-Risk Student 1.0 |
|
Noncritical Field/At-Risk Student 2.0 |
|
Critical Field/Not At-Risk Student 2.0 |
|
Critical Field/At-Risk Student 3.0 |
|
Sec. 62.073. RULES. The coordinating board shall adopt |
|
rules for the administration of this subchapter, including any |
|
rules the coordinating board considers necessary regarding the |
|
submission to the coordinating board by eligible institutions of |
|
any student data required for the coordinating board to carry out |
|
its duties under this subchapter. |
|
SUBCHAPTER F. TEXAS RESEARCH INCENTIVE PROGRAM (TRIP) |
|
Sec. 62.121. DEFINITIONS. In this subchapter: |
|
(1) "Eligible institution" means an institution of |
|
higher education designated as an emerging research university |
|
under the coordinating board's accountability system. |
|
(2) "Gift" includes cash, cash equivalents, |
|
marketable securities, closely held securities, money market |
|
holdings, partnership interests, personal property, real property, |
|
minerals, and life insurance proceeds. |
|
(3) "Institution of higher education" has the meaning |
|
assigned by Section 61.003. |
|
(4) "Program" means the Texas Research Incentive |
|
Program (TRIP) established under this subchapter. |
|
Sec. 62.122. PROGRAM ADMINISTRATION. The coordinating |
|
board shall develop and 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. 62.123. MATCHING GRANTS. (a) An eligible institution |
|
that receives gifts or endowments from private sources in a state |
|
fiscal year for the purpose of enhancing research activities at the |
|
institution, including a gift or endowment for endowed chairs, |
|
professorships, 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 amount of the gifts and |
|
endowments, if the total amount of gifts and endowments is $100,000 |
|
or more but not more than $999,999; |
|
(2) 75 percent of the amount of the gifts and |
|
endowments, if the total amount of gifts and endowments is $1 |
|
million or more but not more than $1,999,999; or |
|
(3) 100 percent of the amount of the gifts and |
|
endowments, if the total amount of gifts and endowments is $2 |
|
million or more. |
|
(b) An eligible institution is not entitled to matching |
|
funds under the program for: |
|
(1) a gift that has been pledged but has not been |
|
received by the institution; |
|
(2) a gift for undergraduate scholarships or grants; |
|
or |
|
(3) any portion of gifts or endowments received by the |
|
institution from a single source in a state fiscal year in excess of |
|
$10 million. |
|
(c) The coordinating board shall establish procedures for |
|
the certification by the coordinating board of an eligible |
|
institution's receipt of a qualifying gift or endowment. A cash |
|
gift or endowment must be certified as of the date the gift or |
|
endowment was deposited by the institution in a depository bank or |
|
invested by the institution as authorized by law. A non-cash gift |
|
must be certified as of the date the gift is converted to cash, and |
|
is considered to have been received on that date for purposes of |
|
this subchapter. |
|
(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 |
|
and endowments received by eligible institutions during that fiscal |
|
year, the coordinating board shall provide matching grants for |
|
those gifts and endowments in order of their certification date, |
|
and shall provide matching grants for any remaining unmatched gifts |
|
and endowments in the following fiscal year using funds |
|
appropriated to the program for that following year, to the extent |
|
funds are available. |
|
(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 |
|
to the institution. |
|
Sec. 62.124. RULES. The coordinating board shall adopt |
|
rules for the administration of this subchapter. |
|
SECTION 8. Chapter 62, Education Code, is amended by adding |
|
Subchapter G to read as follows: |
|
SUBCHAPTER G. NATIONAL RESEARCH UNIVERSITY FUND |
|
Sec. 62.141. 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. 62.142. 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) "Endowment funds" means funds treated as endowment |
|
funds under the coordinating board's accountability system. |
|
(3) "Fund" means the national research university |
|
fund. |
|
(4) "General academic teaching institution" has the |
|
meaning assigned by Section 61.003. |
|
Sec. 62.143. 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. 62.144. 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. 62.145. 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 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. 62.146. ACCOUNTING STANDARDS; VERIFICATION OF |
|
INFORMATION. (a) The coordinating board 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 62.145. |
|
(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 legislature verified information relating to |
|
the criteria established by Section 62.145 to be used to determine |
|
which institutions are initially eligible for distributions of |
|
money from the fund. Information submitted to the coordinating |
|
board by institutions for purposes of this subchapter and the |
|
coordinating board's certification of that information under this |
|
subsection are subject to audit by the state auditor in accordance |
|
with Chapter 321, Government Code. |
|
Sec. 62.147. INELIGIBILITY OF INSTITUTIONS RECEIVING |
|
PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE. The University |
|
of Texas at Austin and Texas A&M University are ineligible to |
|
receive money under this subchapter. |
|
Sec. 62.148. 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 shall be allocated |
|
to the eligible institutions 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 may consider the |
|
recommendations of the coordinating board, including |
|
recommendations on the appropriate elements and relative weights of |
|
elements of the formula. |
|
Sec. 62.149. 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 9. 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 10. Sections 62.025 and 62.026, Education Code, are |
|
repealed. |
|
SECTION 11. (a) The Texas Higher Education Coordinating |
|
Board, in consultation with institutions of higher education that |
|
are eligible institutions under Subchapter C, Chapter 62, Education |
|
Code, as added by this Act, shall study and make recommendations |
|
regarding the appropriate definitions and categories of research |
|
expenditures to be included and applied in determining an |
|
institution's eligibility for and distributions from the Research |
|
University Development Fund. |
|
(b) Not later than December 1, 2010, the coordinating board |
|
shall report its study and deliver its recommendations to the: |
|
(1) governor; |
|
(2) lieutenant governor; |
|
(3) speaker of the house of representatives; |
|
(4) chair of the Senate Committee on Finance; |
|
(5) chair of the Senate Committee on Higher Education; |
|
(6) chair of the House Committee on Appropriations; |
|
and |
|
(7) chair of the House Committee on Higher Education. |
|
(c) At the request of an institution of higher education |
|
that consults with the coordinating board under this section, the |
|
coordinating board shall include with its recommendations the |
|
written response of the institution to those recommendations. |
|
SECTION 12. The Texas Higher Education Coordinating Board |
|
shall adopt rules relating to the administration of Subchapters C, |
|
D, F, and G, Chapter 62, Education Code, as added by this Act, as |
|
soon as practicable after the effective date of this Act. |
|
SECTION 13. (a) Except as provided by Subsections (b), (c), |
|
and (d) of this section, this Act takes effect September 1, 2009. |
|
(b) Money may not be appropriated to or distributed from the |
|
research university development fund under Subchapter C, Chapter |
|
62, Education Code, as added by this Act, or the national research |
|
university fund under Subchapter G, Chapter 62, Education Code, as |
|
added by this Act, before the state fiscal biennium that begins |
|
September 1, 2011. |
|
(c) The funding for Section 8 of this Act is contingent on |
|
the approval by the voters of 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. If that |
|
constitutional amendment is not approved by the voters, Sections 9 |
|
and 10 of this Act do not take effect. |
|
(d) This Act does not make an appropriation. This Act takes |
|
effect only if a specific appropriation for the implementation of |
|
this Act is provided in a general appropriations act of the 81st |
|
Legislature. |
|
|
|
* * * * * |