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A JOINT RESOLUTION
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proposing a constitutional amendment establishing the national |
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research university fund to enable emerging research universities |
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in this state to achieve national prominence as major research |
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universities and transferring the balance of the higher education |
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fund to the national research university fund. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article VII, Texas Constitution, is amended by |
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adding Section 20 to read as follows: |
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Sec. 20. (a) There is established the national research |
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university fund for the purpose of providing a dedicated, |
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independent, and equitable source of funding to enable emerging |
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research universities in this state to achieve national prominence |
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as major research universities. |
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(b) The fund consists of money transferred or deposited to |
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the credit of the fund and any interest or other return on the |
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investment assets of the fund. The legislature may dedicate state |
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revenue to the credit of the fund. |
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(c) The legislature shall provide for administration of the |
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fund, which shall be invested in the manner and according to the |
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standards provided for investment of the permanent university fund. |
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The expenses of managing the investments of the fund shall be paid |
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from the fund. |
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(d) In each state fiscal biennium, the legislature may |
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appropriate as provided by Subsection (f) of this section all or a |
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portion of the total return on all investment assets of the fund to |
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carry out the purposes for which the fund is established. |
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(e) The legislature biennially shall allocate the amounts |
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appropriated under this section, or shall provide for a biennial |
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allocation of those amounts, to eligible state universities to |
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carry out the purposes of the fund. The money shall be allocated |
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based on an equitable formula established by the legislature or an |
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agency designated by the legislature. The legislature shall review |
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and as appropriate adjust, or provide for a review and adjustment, |
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of the allocation formula at the end of each state fiscal biennium. |
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(f) The portion of the total return on investment assets of |
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the fund that is available for appropriation in a state fiscal |
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biennium under this section is the portion necessary to provide as |
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nearly as practicable a stable and predictable stream of annual |
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distributions to eligible state universities and to maintain over |
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time the purchasing power of fund investment assets. If the |
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purchasing power of fund investment assets for any rolling 10-year |
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period is not preserved, the legislature may not appropriate money |
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from the fund until the purchasing power of the fund investment |
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assets is restored. The amount appropriated from the fund in any |
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fiscal year may not exceed an amount equal to seven percent of the |
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average net fair market value of the investment assets of the fund. |
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(g) The legislature shall establish criteria by which a |
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state university may become eligible to receive a portion of the |
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distributions from the fund. A state university that becomes |
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eligible to receive a portion of the distributions from the fund in |
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a state fiscal biennium remains eligible to receive additional |
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distributions from the fund in any subsequent state fiscal |
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biennium. The University of Texas at Austin, Texas A&M University, |
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and Prairie View A&M University are not eligible to receive money |
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from the fund. |
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(h) An eligible state university may use distributions from |
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the fund only for the support and maintenance of educational and |
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general activities that promote increased research capacity at the |
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university. |
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SECTION 2. Section 17(i), Article VII, Texas Constitution, |
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is repealed. |
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SECTION 3. The following temporary provision is added to |
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the Texas Constitution: |
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TEMPORARY PROVISION. (a) This temporary provision applies |
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to the constitutional amendment proposed by the 81st Legislature, |
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Regular Session, 2009, establishing the national research |
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university fund to enable emerging research universities in this |
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state to achieve national prominence as major research universities |
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and transferring the balance of the higher education fund to the |
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national research university fund. |
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(b) The amendment to add Section 20 to Article VII of this |
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constitution and to repeal Section 17(i), Article VII, of this |
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constitution takes effect January 1, 2010. |
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(c) On January 1, 2010, any amount in or payable to the |
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credit of the higher education fund established by Section 17(i), |
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Article VII, Texas Constitution, shall be transferred to the credit |
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of the national research university fund. |
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(d) This temporary provision expires January 1, 2011. |
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SECTION 4. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 3, 2009. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment establishing the |
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national research university fund to enable emerging research |
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universities in this state to achieve national prominence as major |
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research universities and transferring the balance of the higher |
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education fund to the national research university fund." |