81R11231 KSD-D
	By: Zaffirini	S.B. No. 9

	A BILL TO BE ENTITLED
	AN ACT
	relating to financial support and incentives for the development of
	national research universities and high-quality comprehensive
	regional universities and a review of 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 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 2.  Chapter 61, Education Code, is amended by adding
	Subchapters FF, GG, and HH to read as follows:
	SUBCHAPTER FF.  TEXAS COMPETITIVE KNOWLEDGE FUNDING
	Sec. 61.9771.  DEFINITIONS. In this subchapter:
	(1)  "At-risk student" means a student of a research
	university:
	(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 university;
	(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 board in "Closing the Gaps," the state's
	master plan for higher education.
	(3)  "Eligible institution" means an institution of
	higher education designated as a research university or emerging
	research university under the board's accountability system.
	Sec. 61.9772.  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. 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, to eligible
	institutions as follows:
	(1)  80 percent to be distributed among 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:
	(A)  $1.5 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 $150
	million or more;
	(B)  $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 but less than $150 million; and
	(C)  $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;
	(2)  10 percent to be distributed among eligible
	institutions in proportion to the average number of degrees awarded
	by each institution annually during the two most recent state
	fiscal years, using the weights assigned to each degree under the
	table prescribed by Subsection (b); and
	(3)  10 percent to be distributed among eligible
	institutions in proportion to the percentage increase, if any, in
	the average number of degrees awarded by each institution annually
	in the two most recent fiscal years from the average number of
	degrees awarded by that institution annually in the two fiscal
	years immediately preceding those 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
	(c)  For purposes of Subsection (a)(1), 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 fiscal year, subject to any
	adjustment by the board in accordance with the standards and
	accounting methods the board prescribes for purposes of this
	section. If the funds available for distribution for a state fiscal
	year under Subsection (a)(1) are not sufficient to provide the
	amount specified by Subsection (a)(1) 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)(1).
	Sec. 61.9774.  REPORT BY ELIGIBLE INSTITUTIONS TO BOARD.
	Not later than September 1 of each year, each eligible institution
	shall compile and submit to the board, in accordance with rules
	adopted by the board, a report that includes the following data
	regarding each student who was awarded a degree by the institution
	during the preceding state fiscal year:
	(1)  the student's scores on the Scholastic Assessment
	Test (SAT) and American College Test (ACT);
	(2)  the number of semester credit hours completed by
	the student at the institution;
	(3)  whether the student received a grant under the
	federal Pell Grant program;
	(4)  the age of the student on the date the student
	initially enrolled in the institution;
	(5)  whether the student initially enrolled in the
	institution for less than 12 semester credit hours during a fall or
	spring semester;
	(6)  whether any degree awarded to the student by the
	institution is in a critical field;
	(7)  whether the student did not receive a high school
	diploma but received a high school equivalency certificate; and
	(8)  any other information required by the board.
	Sec. 61.9775.  RULES.  The board shall adopt rules for the
	administration of this subchapter.
	SUBCHAPTER GG. TEXAS CENTERS OF EXCELLENCE PERFORMANCE FUNDING
	Sec. 61.9791.  DEFINITIONS. In this subchapter:
	(1)  "At-risk student" has the meaning assigned by
	Section 61.9771.
	(2)  "Critical field" has the meaning assigned by
	Section 61.9771.
	(3)  "Eligible institution" means an institution of
	higher education designated as a comprehensive university,
	doctoral university, or master's university under the board's
	accountability system.
	Sec. 61.9792.  PURPOSE.  The purpose of this subchapter is to
	provide funding to facilitate the creation of premier public
	comprehensive universities focused on strong undergraduate
	curricula and limited research centers of excellence.
	Sec. 61.9793.  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, to eligible
	institutions as follows:
	(1)  40 percent to be distributed among eligible
	institutions in proportion to the number of points assigned to each
	institution under the table prescribed by Subsection (c);
	(2)  40 percent to be distributed among eligible
	institutions in proportion to the percentage 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
	(c); and
	(3)  20 percent to be distributed among eligible
	institutions in accordance with an equitable formula developed by
	the board based on the number of students enrolled in each
	institution who were recognized as National Merit Scholars or who
	graduated with a grade point average in the top 10 percent of the
	student's high school graduating class, to be used by each
	institution to award scholarships to students described by this
	subsection.
	(b)  A number of points is assigned in accordance with
	Subsection (c) on the basis of a degree awarded during the three
	state fiscal years preceding the year for which the distribution of
	funds under this section is made.
	(c)  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. 61.9794.  REPORT BY ELIGIBLE INSTITUTIONS TO BOARD.
	Not later than September 1 of each year, each eligible institution
	shall compile and submit to the board, in accordance with rules
	adopted by the board, a report that includes the following data
	regarding each student who was awarded a degree by the institution
	during the preceding state fiscal year:
	(1)  the student's scores on the Scholastic Assessment
	Test (SAT) and American College Test (ACT);
	(2)  the number of semester credit hours completed by
	the student at the institution;
	(3)  whether the student received a grant under the
	federal Pell Grant program;
	(4)  the age of the student on the date the student
	initially enrolled in the institution;
	(5)  whether the student initially enrolled in the
	institution for less than 12 semester credit hours during a fall or
	spring semester;
	(6)  whether any degree awarded to the student by the
	institution is in a critical field;
	(7)  whether the student did not receive a high school
	diploma but received a high school equivalency certificate;
	(8)  whether the student was recognized as a National
	Merit Scholar;
	(9)  whether the student graduated with a grade point
	average in the top 10 percent of the student's high school
	graduating class; and
	(10)  any other information required by the board.
	Sec. 61.9795.  RULES. The board shall adopt rules for the
	administration of this subchapter.
	SUBCHAPTER HH. TEXAS RESEARCH INCENTIVE PROGRAM (TRIP)
	Sec. 61.9801.  DEFINITIONS. In this subchapter:
	(1)  "Eligible institution" means an institution of
	higher education designated as an emerging research university
	under the board's accountability system.
	(2)  "Program" means the Texas Research Incentive
	Program (TRIP) established under this subchapter.
	Sec. 61.9802.  PROGRAM ADMINISTRATION. The 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. 61.9803.  MATCHING GRANTS.  (a)  An eligible
	institution that receives cash 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)  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 or grants;
	or
	(4)  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 board shall establish procedures for the
	certification by the board of an eligible institution's receipt of
	a qualifying gift or endowment. A 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.
	(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 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. 61.9804.  RULES. The board shall adopt rules for the
	administration of this subchapter.
	SECTION 3.  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 4.  This Act takes effect September 1, 2009.