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A BILL TO BE ENTITLED
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AN ACT
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relating to university funding, including university funding for |
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excellence, the national research university fund, the abolition of |
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the higher education fund, and the institutional groupings |
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established by the Texas Higher Education Coordinating Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 61.059, Education Code, is amended by |
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adding Subsection (o) to read as follows: |
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(o) In addition to the other funding recommendations |
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required by this section, biennially the board shall determine the |
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amount that the board considers appropriate for purposes of |
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providing funding under Section 61.0596 in the following state |
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fiscal biennium to carry out the purposes of that section and shall |
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make recommendations to the governor and the Legislative Budget |
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Board for funding those programs in that biennium. To the extent |
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the board considers appropriate, the board may include in the |
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formulas established under this section the funding to be provided |
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under Section 61.0596. |
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SECTION 2. Subchapter C, Chapter 61, Education Code, is |
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amended by adding Section 61.0596 to read as follows: |
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Sec. 61.0596. UNIVERSITY FUNDING FOR EXCELLENCE IN SPECIFIC |
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PROGRAMS AND FIELDS; INCENTIVE GRANTS. (a) The board shall |
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administer this section to encourage and assist general academic |
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teaching institutions, other than public state colleges, that are |
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not research universities or emerging research universities |
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according to the institutional groupings under the board's higher |
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education accountability system to develop and maintain specific |
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programs or fields of study of the highest national rank or |
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recognition for that type of program or field. |
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(b) To assist the institution in achieving the highest |
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national rank or recognition for the applicable degree program and |
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from money available for the purpose, the board shall award |
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incentive grants to general academic teaching institutions |
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described by Subsection (a) that the board considers to have |
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demonstrated the greatest commitment to success in developing or |
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improving, consistent with the mission of the institution, the |
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quality of an existing degree program designated by the |
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institution. An institution must use a grant under this subsection |
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for faculty recruitment or other faculty support with respect to |
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the designated degree program for which the grant is awarded, |
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including establishment of endowed faculty positions or |
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enhancement of faculty compensation as considered appropriate by |
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the institution. |
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(c) An institution may designate only one degree program at |
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a time for consideration for new funding under Subsection (b). The |
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institution may change its designation with the consent of the |
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board. If the board determines that an institution has met all the |
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applicable benchmarks for the institution's designated program, |
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the institution may designate another degree program for |
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consideration for new funding under Subsection (b). |
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(d) The board shall establish a series of benchmarks |
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applicable to each degree program designated by an institution |
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under this section. The institution becomes eligible for funding |
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under Subsection (b) for each benchmark the board determines that |
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the institution has met. The board shall establish the amount of |
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funding for each benchmark met in a manner that provides an |
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effective incentive to assist the institution to continue its |
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efforts to meet the remaining benchmarks for its designated |
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program. |
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(e) Unless the board determines that a different number of |
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benchmarks is appropriate, the board shall establish three |
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benchmarks for each designated degree program. The board shall |
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identify one or more persons who have relevant expertise and do not |
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reside in this state to assist the board in establishing the |
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benchmarks and associated funding levels for each type of degree |
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program designated by an institution under this section. |
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(f) An institution that designates a degree program to |
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receive funding under Subsection (b) shall reimburse the board for |
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the costs incurred by the board in administering this section with |
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respect to the institution's designated program. |
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(g) In addition to supporting the programs designated by |
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institutions for consideration to receive incentive grants under |
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Subsection (b), from money available for the purpose, the board |
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shall provide additional money as the board determines appropriate |
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to assist the institutions described by Subsection (a) in |
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maintaining the excellence of programs or fields of study that have |
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achieved the highest national ranking or recognition for that type |
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of program or field. |
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(h) The legislature may not appropriate money for grants or |
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other financial assistance to general academic teaching |
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institutions under this section before the board certifies that one |
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or more institutions have met at least one of the benchmarks |
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established by the board for the institutions' designated degree |
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programs under Subsection (d). |
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SECTION 3. Subchapter C, Chapter 61, Education Code, is |
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amended by adding Section 61.0904 to read as follows: |
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Sec. 61.0904. INSTITUTIONAL GROUPINGS. (a) In its |
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accountability system, the board shall establish institutional |
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groupings for classification of institutions of higher education, |
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including groupings for research universities, emerging research |
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universities, doctoral universities, comprehensive universities, |
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and masters universities. |
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(b) In each state fiscal biennium, the board shall conduct a |
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review of the institutional groupings, including a review of the |
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criteria for and definitions assigned to those groupings. |
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SECTION 4. The heading to Chapter 62, Education Code, is |
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amended to read as follows: |
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CHAPTER 62. CONSTITUTIONAL AND STATUTORY [DIVISION OF
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CONSTITUTIONALLY APPROPRIATED] FUNDS TO SUPPORT [AMONG CERTAIN] |
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INSTITUTIONS OF HIGHER EDUCATION[; RESEARCH DEVELOPMENT FUND] |
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SECTION 5. Chapter 62, Education Code, is amended by adding |
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Subchapter D to read as follows: |
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SUBCHAPTER D. NATIONAL RESEARCH UNIVERSITY FUND |
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Sec. 62.071. PURPOSE. The purpose of this subchapter is to |
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allocate appropriations from the national research university fund |
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to provide a dedicated, independent, and equitable source of |
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funding to enable emerging research universities in this state to |
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achieve national prominence as major research universities. |
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Sec. 62.072. DEFINITIONS. In this subchapter: |
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(1) "Coordinating board" means the Texas Higher |
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Education Coordinating Board. |
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(2) "Eligible institution" means a general academic |
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teaching institution that is eligible to receive distributions of |
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money under this subchapter. |
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(3) "Fund" means the national research university |
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fund. |
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(4) "General academic teaching institution" has the |
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meaning assigned by Section 61.003. |
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Sec. 62.073. ADMINISTRATION AND INVESTMENT OF FUND. |
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(a) The national research university fund is a fund outside the |
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state treasury in the custody of the comptroller. |
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(b) The comptroller shall administer and invest the fund in |
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accordance with Section 20, Article VII, Texas Constitution. |
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Sec. 62.074. FUNDING. (a) The fund consists of any |
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amounts appropriated or transferred to the credit of the fund under |
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the Texas Constitution or otherwise appropriated or transferred to |
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the credit of the fund under this section or another law. |
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(b) The comptroller shall deposit to the credit of the fund |
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all interest, dividends, and other income earned from investment of |
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the fund. |
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(c) The comptroller may accept gifts or grants from any |
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public or private source for the fund. |
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Sec. 62.075. ELIGIBILITY TO RECEIVE DISTRIBUTIONS FROM |
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FUND. (a) A general academic teaching institution is eligible to |
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receive a distribution of money under this subchapter for each year |
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of a state fiscal biennium if: |
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(1) the institution is designated as an emerging |
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research university under the coordinating board's accountability |
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system; |
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(2) in each of the two state fiscal years preceding the |
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state fiscal biennium, the institution reported at least $45 |
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million in restricted research expenditures; and |
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(3) the institution satisfies at least four of the |
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following criteria: |
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(A) the aggregate value of the institution's |
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endowment funds is at least $400 million; |
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(B) the institution awarded at least 200 doctor |
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of philosophy degrees during each of the two academic years |
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preceding the state fiscal biennium; |
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(C) the entering freshman class of the |
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institution for each of those two academic years demonstrated high |
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academic achievement, as determined according to standards |
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prescribed by the coordinating board, giving consideration to the |
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future educational needs of the state as articulated in the |
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"Closing the Gaps" report of the coordinating board; |
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(D) the institution is designated as a member of |
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the Association of Research Libraries or has a Phi Beta Kappa |
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chapter or an equivalent recognition of research capabilities and |
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scholarly attainment as determined according to standards |
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prescribed by the coordinating board; |
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(E) the faculty of the institution for each of |
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those two academic years was of high quality, as determined |
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according to coordinating board standards based on the professional |
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achievement and recognition of the institution's faculty, |
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including but not limited to the election of faculty members to |
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national academies; or |
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(F) the institution has demonstrated a |
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commitment to high quality graduate education, as determined |
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according to standards prescribed by the coordinating board, |
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including but not limited to the number of graduate-level programs |
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at the institution, the institution's admission standards for |
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graduate programs, and the level of institutional support for |
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graduate students. |
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(b) A general academic teaching institution that becomes |
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eligible under Subsection (a) to receive a distribution of money |
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under this subchapter remains eligible to receive a distribution of |
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money under this subchapter in each subsequent state fiscal year. |
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Sec. 62.076. INELIGIBILITY OF CERTAIN INSTITUTIONS |
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RECEIVING PERMANENT UNIVERSITY FUND SUPPORT AND MAINTENANCE. The |
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University of Texas at Austin and Texas A&M University are |
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ineligible to receive money under this subchapter. |
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Sec. 62.077. ALLOCATION OF APPROPRIATED FUNDS TO ELIGIBLE |
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INSTITUTIONS. In each state fiscal year, the comptroller shall |
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distribute to eligible institutions the total amount appropriated |
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from the fund for that fiscal year. The amount shall be allocated |
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to the eligible institutions based on an equitable formula adopted |
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by the legislature to carry out the purposes of the fund as |
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established by Section 20, Article VII, Texas Constitution. The |
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coordinating board may make recommendations regarding the |
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equitable formula and may provide assistance regarding the formula |
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as directed by the legislature. |
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Sec. 62.078. USE OF ALLOCATED AMOUNTS. (a) An eligible |
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institution may use money received under this subchapter only for |
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the support and maintenance of educational and general activities |
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that promote increased research capacity at the institution. |
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(b) For purposes of Subsection (a), permitted activities |
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include the use of the money to: |
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(1) provide faculty support and pay faculty salaries; |
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(2) purchase equipment or library materials; |
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(3) pay graduate stipends; and |
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(4) support research performed at the institution, |
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including undergraduate research. |
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(c) Money received in a fiscal year by an institution under |
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this subchapter that is not used in that fiscal year by the |
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institution may be held and used by the institution in subsequent |
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fiscal years for the purposes prescribed by this section. |
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Sec. 62.079. VERIFICATION OF QUALIFYING CRITERIA. (a) The |
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coordinating board shall prescribe standards and accounting |
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methods for verifying the value of the qualifying criteria to |
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establish the eligibility of an institution to receive a |
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distribution of money under this subchapter in a state fiscal |
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biennium. |
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(b) The coordinating board, as soon as practicable in each |
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even-numbered year but not later than December 31, shall provide |
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the legislature with verified information relating to the value of |
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the criteria to establish which institutions are eligible to |
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receive a distribution of money under this subchapter. |
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(c) The coordinating board shall validate the appropriate |
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measures of an eligible institution to verify the reported values |
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of the criteria for purposes of this subchapter. |
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(d) Upon completion, the methods for verifying the value of |
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the qualifying criteria prescribed in accordance with Subsection |
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(a) shall be sent to the state auditor for review and comment. |
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(e) Any information submitted by the institutions to the |
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coordinating board and the verification of the information by the |
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coordinating board for the purposes of this subchapter are subject |
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to audit by the state auditor in accordance with Chapter 321, |
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Government Code. |
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SECTION 6. Section 62.094, Education Code, is amended to |
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read as follows: |
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Sec. 62.094. FUNDING. (a) The research development fund |
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consists of the [amount deposited to the credit of the fund under
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Section 62.025 in each state fiscal year, the amount appropriated
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or transferred to the credit of the fund by the legislature under
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Subsection (b), and any other] amounts appropriated or transferred |
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to the credit of the fund under this section or other law. |
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(b) [In each state fiscal year, the legislature may
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appropriate or provide for the transfer to the credit of the
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research development fund of an amount not less than the amount
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deposited to the credit of the fund under Section 62.025 in that
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fiscal year.
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[(c)] The comptroller shall deposit all interest, |
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dividends, and other income earned from investment of the research |
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development fund to the credit of the fund. |
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(c) [(d)] The comptroller may accept gifts or grants from |
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any public or private source for the research development fund. |
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SECTION 7. Sections 62.025 and 62.026, Education Code, are |
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repealed. |
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SECTION 8. (a) Except as provided by Subsection (b) of |
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this section, this Act takes effect January 1, 2010, but only if the |
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constitutional amendment proposed by the 81st Legislature, Regular |
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Session, 2009, establishing the national research university fund |
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to enable emerging research universities in this state to achieve |
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national prominence as major research universities and |
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transferring the balance of the higher education fund to the |
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national research university fund is approved by the voters. If |
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that constitutional amendment is not approved by the voters, except |
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as provided by Subsection (b) of this section, this Act does not |
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take effect. |
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(b) This section takes effect September 1, 2009. The |
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sections of this Act adding Subsection (o), Section 61.059, and |
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Section 61.0596, Education Code, take effect September 1, 2009, but |
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only if a specific appropriation for the implementation of those |
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provisions of the Education Code is provided in a general |
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appropriations act of the 81st Legislature. |