81R3874 KEL-F
 
  By: Duncan, Shapiro S.J.R. No. 35
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment 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.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Article VII, Texas Constitution, is amended by
  adding Section 20 to read as follows:
         Sec. 20.  (a)  There is established the national research
  university fund for the purpose of providing a dedicated,
  independent, and equitable source of funding to enable emerging
  research universities in this state to achieve national prominence
  as major research universities.
         (b)  The fund consists of money transferred or deposited to
  the credit of the fund and any interest or other return on the
  investment assets of the fund.  The legislature may dedicate state
  revenue to the credit of the fund.
         (c)  The legislature shall provide for administration of the
  fund, which shall be invested in the manner and according to the
  standards provided for investment of the permanent university fund.
  The expenses of managing the investments of the fund shall be paid
  from the fund.
         (d)  In each state fiscal biennium, the legislature may
  appropriate as provided by Subsection (f) of this section all or a
  portion of the total return on all investment assets of the fund to
  carry out the purposes for which the fund is established.
         (e)  The legislature biennially shall allocate the amounts
  appropriated under this section, or shall provide for a biennial
  allocation of those amounts, to eligible state universities to
  carry out the purposes of the fund. The money shall be allocated
  based on an equitable formula established by the legislature or an
  agency designated by the legislature. The legislature shall review
  and as appropriate adjust, or provide for a review and adjustment,
  of the allocation formula at the end of each state fiscal biennium.
         (f)  The portion of the total return on investment assets of
  the fund that is available for appropriation in a state fiscal
  biennium under this section is the portion necessary to provide as
  nearly as practicable a stable and predictable stream of annual
  distributions to eligible state universities and to maintain over
  time the purchasing power of fund investment assets. If the
  purchasing power of fund investment assets for any rolling 10-year
  period is not preserved, the legislature may not appropriate money
  from the fund until the purchasing power of the fund investment
  assets is restored. The amount appropriated from the fund in any
  fiscal year may not exceed an amount equal to seven percent of the
  average net fair market value of the investment assets of the fund.
         (g)  The legislature shall establish criteria by which a
  state university may become eligible to receive a portion of the
  distributions from the fund. A state university that becomes
  eligible to receive a portion of the distributions from the fund in
  a state fiscal biennium remains eligible to receive additional
  distributions from the fund in any subsequent state fiscal
  biennium. The University of Texas at Austin, Texas A&M University,
  and Prairie View A&M University are not eligible to receive money
  from the fund.
         (h)  An eligible state university may use distributions from
  the fund only for the support and maintenance of educational and
  general activities that promote increased research capacity at the
  university.
         SECTION 2.  Section 17(i), Article VII, Texas Constitution,
  is repealed.
         SECTION 3.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a) This temporary provision applies
  to 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.
         (b)  The amendment to add Section 20 to Article VII of this
  constitution and to repeal Section 17(i), Article VII, of this
  constitution takes effect January 1, 2010.
         (c)  On January 1, 2010, any amount in or payable to the
  credit of the higher education fund established by Section 17(i),
  Article VII, Texas Constitution, shall be transferred to the credit
  of the national research university fund.
         (d)  This temporary provision expires January 1, 2011.
         SECTION 4.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 3, 2009.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment 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."