88R4095 KJE-D
 
  By: Perry S.J.R. No. 49
 
 
 
A JOINT RESOLUTION
  proposing a constitutional amendment creating a university
  research fund to support emerging research universities in The
  University of Texas System or The Texas A&M University System and
  disqualifying all component institutions of those university
  systems from receiving money from the national research university
  fund.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 18, Article VII, Texas Constitution, is
  amended by adding Subsection (f-1) to read as follows:
         (f-1)  Notwithstanding Subsection (f) of this section, the
  boards of regents of The University of Texas System and The Texas
  A&M University System may deposit to the credit of the university
  research fund established under Section 21 of this article all or
  part of the portion of the applicable system's share of the annual
  distribution from the permanent university fund to the available
  university fund remaining after the payment of principal and
  interest on bonds and notes described by Subsection (f) of this
  section.
         SECTION 2.  Section 20(g), Article VII, Texas Constitution,
  is amended to read as follows:
         (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. A component institution of The University of Texas System
  or The [at Austin and] Texas A&M University System is [are] not
  eligible to receive money from the fund.
         SECTION 3.  Article VII, Texas Constitution, is amended by
  adding Section 21 to read as follows:
         Sec. 21.  (a)  There is established the university research
  fund for the purpose of providing a dedicated, independent, and
  equitable source of funding to enable emerging research
  universities in The University of Texas System or The Texas A&M
  University System 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 component institutions of
  The University of Texas System or The Texas A&M University System 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 determined by the
  legislature, or an agency designated by the legislature, as
  necessary to provide as nearly as practicable a stable and
  predictable stream of annual distributions to eligible component
  institutions of The University of Texas System or The Texas A&M
  University System 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
  distributions may not be increased 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, as determined by law.  Until the fund has been
  invested for a period of time sufficient to determine the
  purchasing power over a 10-year period, the legislature may provide
  by law for means of preserving the purchasing power of the fund.
         (g)  The legislature shall establish criteria by which a
  component institution of The University of Texas System or The
  Texas A&M University System may become eligible to receive a
  portion of the distributions from the fund.  An institution 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. Only a component institution of The University of
  Texas System or The Texas A&M University System may be eligible to
  receive money from the fund.
         (h)  An eligible component institution of The University of
  Texas System or The Texas A&M University System may use
  distributions from the fund only for the support and maintenance of
  educational and general activities that promote increased research
  capacity at the institution.
         SECTION 4.  The following temporary provision is added to
  the Texas Constitution:
         TEMPORARY PROVISION. (a)  This temporary provision applies
  to the constitutional amendment proposed by the 88th Legislature,
  Regular Session, 2023, creating a university research fund to
  support emerging research universities in The University of Texas
  System or The Texas A&M University System and disqualifying all
  component institutions of those university systems from receiving
  money from the national research university fund.
         (b)  The amendment to Section 20(g), Article VII, of this
  constitution takes effect September 1, 2025.
         (c)  This temporary provision expires September 1, 2026.
         SECTION 5.  This proposed constitutional amendment shall be
  submitted to the voters at an election to be held November 7, 2023.
  The ballot shall be printed to permit voting for or against the
  proposition: "The constitutional amendment creating a university
  research fund to support emerging research universities in The
  University of Texas System or The Texas A&M University System and
  disqualifying all component institutions of those university
  systems from receiving money from the national research university
  fund."