Law:Title 3. Higher Education. Subtitle B. State Coordination Of Higher Education from Chapter 62. Constitutional And Statutory Funds To Support Institutions Of Higher Education (Texas)

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Subtitle B. State Coordination Of Higher Education

Contents

Chapter 62. Constitutional And Statutory Funds To Support Institutions Of Higher Education

Subchapter A. General Provisions

Section  62.001.  Short Title.

This chapter may be cited as "The Excellence in Higher Education Act" of 1985.

Added by Acts 1985, 69th Leg., ch. 225, Sec. 1, eff. June 3, 1985.



Section  62.002.  Purpose.

Through equitable allocation of the annual appropriation mandated by Article VII, Section 17(a), of the Constitution of Texas, the purpose of this chapter is to provide to the governing boards of the institutions and agencies of higher education eligible to participate in the distribution of funds pursuant to Article VII, Section 17, of the Constitution of Texas, the means to create and maintain a degree of excellence at the respective institutions and agencies of higher education that is above and apart from the normal appropriative formulas established by the Coordinating Board, Texas College and University System.

Added by Acts 1985, 69th Leg., ch. 225, Sec. 1, eff. June 3, 1985.



Section  62.003.  Definitions.

In this chapter:

(1)  Except as otherwise provided by Subchapters C, D, F, and G, "eligible  institution" means the eligible agencies and institutions of higher education listed in Article VII, Section 17(b), of the Constitution of Texas, and any institution or agency of higher education that is later made eligible to participate in the disbursement of funds pursuant to Article VII, Section 17(c), of the Constitution of Texas.

(2)  "Governing board" means the board of regents or other state governmental body to which an eligible agency or institution is assigned for governance by the Texas Constitution or by the laws of the State of Texas.

(3)  "Coordinating board" means the Texas Higher Education Coordinating Board.

Added by Acts 1985, 69th Leg., ch. 225, Sec. 1, eff. June 3, 1985. Amended by Acts 1995, 74th Leg., ch. 1045, Sec. 1, eff. June 17, 1995.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 9, eff. September 1, 2009.



Subchapter B. Amounts Allocated By Equitable Allocation Formula

Section  62.021.  Allocations.

(a) In each state fiscal year beginning with the state fiscal year ending August 31, 2011, an eligible institution is entitled to receive an amount allocated in accordance with this section from the funds appropriated for that year by Section 17(a), Article VII, Texas Constitution.  The comptroller shall distribute funds allocated under this subsection only on presentation of a claim and issuance of a warrant in accordance with Section 403.071, Government Code.  An eligible institution may not present a claim to be paid from any funds allocated under this subsection before the delivery of goods or services described in Section 17, Article VII, Texas Constitution, except for the payment of principal or interest on bonds or notes or for a payment for a book or other published library material as authorized by Section 2155.386, Government Code.  The allocation of funds under this subsection is made in accordance with an equitable formula consisting of the following elements:  space deficit, facilities condition, institutional complexity, and a separate allocation for the Texas State Technical College System.  The annual amounts allocated by the formula are as follows:

(1)  $3,559,433 to Midwestern State University;

(2)  $27,846,476 to the University of North Texas;

(3)  $8,771,265 to the University of North Texas Health Science Center at Fort Worth;

(4)  $12,311,123 to The University of Texas--Pan American;

(5)  $5,057,420 to The University of Texas at Brownsville;

(6)  $8,425,937 to Stephen F. Austin State University;

(7)  to the following component institutions of the Texas State University System:

(A)  $8,330,933 to Lamar University;

(B)  $2,332,463 to the Lamar Institute of Technology;

(C)  $1,235,752 to Lamar State College--Orange;

(D)  $1,244,694 to Lamar State College--Port Arthur;

(E)  $11,893,110 to Sam Houston State University;

(F)  $21,863,258 to Texas State University--San Marcos;

(G)  $1,625,061 to Sul Ross State University; and

(H)  $445,380 to Sul Ross State University-Rio Grande College;

(8)  $8,894,700 to Texas Southern University;

(9)  to the following component institutions of the Texas Tech University System:

(A)  $23,936,088 to Texas Tech University;

(B)  $16,973,569 to Texas Tech University Health Sciences Center; and

(C)  $3,743,027 to Angelo State University;

(10)  $10,169,695 to Texas Woman's University;

(11)  to the following component institutions of the University of Houston System:

(A)  $35,885,768 to the University of Houston;

(B)  $2,393,921 to the University of Houston--Victoria;

(C)  $5,214,167 to the University of Houston--Clear Lake; and

(D)  $7,435,238 to the University of Houston--Downtown;

(12)  to the following component institutions of The Texas A&M University System:

(A)  $7,139,067 to Texas A&M University--Corpus Christi;

(B)  $3,796,436 to Texas A&M International University;

(C)  $5,046,885 to Texas A&M University--Kingsville;

(D)  $4,652,995 to West Texas A&M University;

(E)  $5,193,232 to Texas A&M University--Commerce; and

(F)  $1,307,907 to Texas A&M University--Texarkana; and

(13)  $5,775,000 to the Texas State Technical College System Administration and the following component campuses, but not its extension centers or programs:

(A)  Texas State Technical College-Harlingen;

(B)  Texas State Technical College--Marshall;

(C)  Texas State Technical College--West Texas; and

(D)  Texas State Technical College--Waco.

Added by Acts 1985, 69th Leg., ch. 225, Sec. 1, eff. June 3, 1985. Amended by Acts 1987, 70th Leg., ch. 1070, Sec. 5, eff. May 15, 1988; Acts 1989, 71st Leg., ch. 1084, Sec. 1.31; Acts 1991, 72nd Leg., ch. 105, Sec. 3, eff. Aug. 26, 1991; Acts 1991, 72nd Leg., ch. 305, Sec. 3, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 260, Sec. 12, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 408, Sec. 11, eff. Aug. 30, 1993; Acts 1995, 74th Leg., ch. 1045, Sec. 2, eff. June 17, 1995; Acts 1995, 74th Leg., ch. 1061, Sec. 9, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 129, Sec. 1, eff. May 19, 1997; Acts 1999, 76th Leg., ch. 1363, Sec. 2, eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 1467, Sec. 1.03, eff. June 19, 1999; Acts 1999, 76th Leg., ch. 1508, Sec. 1, eff. June 19, 1999; Acts 2001, 77th Leg., ch. 238, Sec. 2, eff. May 22, 2001; Acts 2001, 77th Leg., ch. 1212, Sec. 1, eff. June 15, 2001; Acts 2003, 78th Leg., ch. 386, Sec. 8, eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch. 1306, Sec. 1, eff. September 1, 2005.

Acts 2005, 79th Leg., Ch. 1306, Sec. 4, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch. 179, Sec. 11, eff. September 1, 2007.

Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 10, eff. June 17, 2009.



Section  62.022.  Allocation Formula.

(a) Prior to the convening of the regular session of the Texas Legislature immediately preceding each 10-year period for which Section 17(d), Article VII, Texas Constitution, prescribes an allocation of the money appropriated by Section 17(a), Article VII, Texas Constitution, the coordinating board shall conduct, with the full participation of the eligible institutions, a study and present recommendations to the Legislative Budget Board and the standing committees of the house of representatives and the senate having jurisdiction over legislation related to higher education as to the allocation of the money appropriated by Section 17(a) for the following 10-year allocation period established by Section 17(d).

(b)  Prior to the convening of the regular session of the Texas Legislature immediately preceding the sixth year of each 10-year allocation period established by Section 17(d), Article VII, Texas Constitution, the coordinating board shall conduct, with the full participation of the eligible institutions, a study and present recommendations to the Legislative Budget Board and the standing committees of the house of representatives and the senate having cognizance over legislation related to higher education as to whether and, if so, how, the equitable allocation formula established for that 10-year period should be adjusted for the last five years of the 10-year period. The coordinating board shall include in the study a survey of educational and general building quality, if the legislature provides funds for the survey.

(c)  The legislature shall approve, modify and approve, or reject the recommendations of the coordinating board under Subsection (a) or (b).

(d)  If, prior to the first day of the sixth year of a 10-year allocation period established by Section 17(d), Article VII, Texas Constitution, the Texas Legislature fails to act on a recommendation for adjustment in the equitable allocation formula, the 10-year allocation provided for in Section 62.021(a) shall continue until the end of the 10-year period.

(e)  No adjustment shall be made in the allocation formula that will prevent payment of both the principal and interest on outstanding bonds and notes sold pursuant to Section 17(e), Article VII, Texas Constitution.

(f)  A review of the allocation formula conducted by the coordinating board under this section shall include:

(1)  a comparison of the deferred maintenance needs of an institution of higher education and the extent to which the constitutionally dedicated funds were used to meet those needs; and

(2)  an evaluation of the effectiveness of the allocation formula concerning deferred maintenance needs of those institutions.

Added by Acts 1985, 69th Leg., ch. 225, Sec. 1, eff. June 3, 1985. Amended by Acts 1989, 71st Leg., ch. 1084, Sec. 1.33, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 1045, Sec. 3, eff. June 17, 1995; Acts 1999, 76th Leg., ch. 1467, Sec. 1.05, eff. June 19, 1999.



Section  62.023.  Severability.

If any provision of this chapter or the application thereof under any circumstance is held invalid, such invalidity shall not affect other provisions or applications of the chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable.

Added by Acts 1985, 69th Leg., ch. 225, Sec. 1, eff. June 3, 1985.



Section 62.024.  Amount Of Allocation Increased.

In accordance with Section 17(a), Article VII, Texas Constitution, for each state fiscal year beginning with the state fiscal year ending August 31, 2008, the amount of the annual constitutional appropriation under that subsection is increased to $262.5 million.

Added by Acts 1993, 73rd Leg., ch. 537, Sec. 1, eff. Sept. 1, 1995.

Amended by:

Acts 2005, 79th Leg., Ch. 1306, Sec. 2, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 11, eff. June 17, 2009.



Section  62.027.  Effect Of Legislation. (a)

The constitutional amendment proposed by S.J.R. No. 13, 73rd Legislature, Regular Session, 1993, and approved by the voters at an election held on November 2, 1993, amended Section 17(a), Article VII, Texas Constitution, to permit the legislature by two-thirds vote of the membership of each house to increase the amount of the appropriation made under that section for each five-year period.

(b)  Chapter 537, Acts of the 73rd Legislature, Regular Session, 1993, added Section 62.024 to this subchapter in order to increase the amount of the appropriation made under Section 17(a), Article VII, Texas Constitution.

(c)  The increase provided by the amendment to Section 62.024 enacted by the 79th Legislature, Regular Session, 2005, in the amount of the appropriation made under Section 17(a), Article VII, Texas Constitution, for each state fiscal year beginning with the state fiscal year ending August 31, 2008, constitutes the increase in accordance with Section 17(a) that the legislature considers appropriate for the five-year period beginning September 1, 2005.

Added by Acts 1995, 74th Leg., ch. 1045, Sec. 4, eff. June 17, 1995.

Amended by:

Acts 2005, 79th Leg., Ch. 1306, Sec. 3, eff. September 1, 2005.



Subchapter C. Research University Development Fund

Section 62.051.  Definitions.

In this subchapter:

(1)  "Eligible institution" means an institution of higher education designated as a research university or emerging research university under the coordinating board's accountability system.

(2)  "Institution of higher education" has the meaning assigned by Section 61.003.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.052.  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.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.053.  Funding.

(a) For each state fiscal year, the coordinating 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 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:

(1)  at least $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; and

(2)  at least $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.

(b)  For purposes of Subsection (a), the amount of total research funds expended by an eligible institution in a state fiscal year is the amount of those funds as reported to the coordinating board by the institution for that fiscal year, subject to any adjustment by the coordinating board in accordance with the standards and accounting methods the coordinating board prescribes for purposes of this section.  If the funds available for distribution for a state fiscal year under Subsection (a) are not sufficient to provide the amount specified by Subsection (a) 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).

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.054.  Rules.

The coordinating board shall adopt rules for the administration of this subchapter, including any rules the coordinating board considers necessary regarding the submission to the coordinating board by eligible institutions of any student data required for the coordinating board to carry out its duties under this subchapter.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Subchapter D. Performance Incentive Funding

Section 62.071.  Definitions.

In this subchapter:

(1)  "At-risk student" means an undergraduate student of an eligible institution:

(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 institution;

(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 coordinating board in "Closing the Gaps," the state's master plan for higher education.

(3)  "Eligible institution" means a general academic teaching institution other than a public state college.

(4)  "General academic teaching institution" and "public state college" have the meanings assigned by Section 61.003.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.072.  Funding.

(a) For each state fiscal year, the coordinating board shall distribute any performance incentive funds appropriated by the legislature for purposes of this subchapter, and any other funds made available for the purposes of this subchapter, to eligible institutions as follows:

(1)  50 percent to be distributed among eligible institutions in proportion to the 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 (b); and

(2)  the remaining 50 percent to be distributed among eligible institutions in proportion to the average number of degrees awarded annually by each institution in the three most recent 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

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.073.  Rules.

The coordinating board shall adopt rules for the administration of this subchapter, including any rules the coordinating board considers necessary regarding the submission to the coordinating board by eligible institutions of any student data required for the coordinating board to carry out its duties under this subchapter.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Subchapter E. Research Development Fund

Section  62.091.  Purpose.

The research development fund is established to provide funding to promote increased research capacity at eligible general academic teaching institutions.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.



Section  62.092.  Definitions.

In this subchapter:

(1)  "Coordinating board" means the Texas Higher Education Coordinating Board.

(2)  "Eligible institution" means a general academic teaching institution, as defined by Section 61.003, other than The University of Texas at Austin, Texas A&M University, or Prairie View A&M University.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.



Section  62.093.  Administration.

(a) The research development fund is a fund outside the state treasury in the custody of the comptroller.

(b)  The comptroller shall administer and invest the research development fund.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.



Section 62.094.  Funding.

(a) The research development fund consists of the amounts appropriated or transferred to the credit of the fund under this section or other law.

(b)   The comptroller shall deposit all interest, dividends, and other income earned from investment of the research development fund to the credit of the fund.

(c)  The comptroller may accept gifts or grants from any public or private source for the research development fund.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.

Amended by:

Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 14, eff. September 1, 2009.



Section  62.095.  Apportionment Of Fund To Eligible Institutions.

(a) In each state fiscal year, the comptroller shall distribute the total amount of all assets in the research development fund to eligible institutions. The amount shall be apportioned among the eligible institutions based on the average amount of restricted research funds expended by each institution per year for the three preceding state fiscal years.

(b)  For purposes of Subsection (a), the amount of restricted research funds expended by an institution in a fiscal year is the amount of those funds as reported to the coordinating board by the institution for that fiscal year, subject to any adjustment by the coordinating board in accordance with the standards and accounting methods the coordinating board prescribes under Section 62.096.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.



Section  62.096.  Verification Of Allocation Factors.

(a) For purposes of this subchapter, the coordinating board shall prescribe standards and accounting methods for determining the amount of restricted research funds expended by an eligible institution in a state fiscal year.

(b)  The coordinating board shall convene a committee comprised of persons designated by the presidents of eligible institutions to approve the allocations standards and accounting methods established by the coordinating board by October 1, 2003.

(c)  The coordinating board, as soon as practicable in each state fiscal year no later than November 1, shall provide the comptroller with verified information relating to the amounts of restricted research funds expended by eligible institutions as necessary to determine the apportionment of the research development fund under this subchapter for that fiscal year.

(d)  The coordinating board may audit the appropriate records of an eligible institution to verify information for purposes of this subchapter.

(e)  An eligible institution may appeal the coordinating board's decision regarding the institution's verified information relating to the amounts of restricted research expended to the advisory committee for final determination of eligibility.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.



Section  62.097.  Use Of Allocated Amounts.

(a) An eligible institution may use money received from the research development fund only for the support and maintenance of educational and general activities, including research and student services, that promote increased research capacity at the institution.

(b)  Money received by an institution from the research development fund in a fiscal year that is not used by the institution in that fiscal year may be held and used by the institution in subsequent fiscal years.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.



Section  62.098.  Annual Report.

(a) Each eligible institution that receives money under this subchapter in a state fiscal year shall prepare a report at the end of that fiscal year describing the manner in which the institution used the money. The institution shall include in the report information regarding the use of money spent in that fiscal year that was received under this subchapter in a preceding fiscal year.

(b)  The institution shall deliver a copy of the report to the coordinating board and the Legislative Budget Board not later than December 1 after the end of the fiscal year. The Legislative Budget Board may establish requirements for the form and content of the report.

(c)  The institution shall include in the report information on the use or other disposition of money the institution previously received from the Texas excellence fund or the university research fund, if the institution spent money from either of those funds in the fiscal year of the report.

Added by Acts 2003, 78th Leg., ch. 322, Sec. 2, eff. Sept. 1, 2005.



Subchapter F. Texas Research Incentive Program (trip)

Section 62.121.  Definitions.

In this subchapter:

(1)  "Eligible institution" means an institution of higher education designated as an emerging research university under the coordinating board's accountability system.

(2)  "Gift" includes cash, cash equivalents, marketable securities, closely held securities, money market holdings, partnership interests, personal property, real property, minerals, and life insurance proceeds.

(3)  "Institution of higher education" has the meaning assigned by Section 61.003.

(4)  "Program" means the Texas Research Incentive Program (TRIP) established under this subchapter.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.122.  Program Administration.

The coordinating 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.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.123.  Matching Grants.

(a) An eligible institution that receives 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)  a gift that has been pledged but has not been received by the institution;

(2)  a gift for undergraduate scholarships or grants; or

(3)  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 coordinating board shall establish procedures for the certification by the coordinating board of an eligible institution's receipt of a qualifying gift or endowment.  A cash 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.  A non-cash gift must be certified as of the date the gift is converted to cash, and is considered to have been received on that date for purposes of this subchapter.

(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 coordinating 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.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Section 62.124.  Rules.

The coordinating board shall adopt rules for the administration of this subchapter.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 12, eff. September 1, 2009.



Subchapter G. National Research University Fund

Section 62.141.  Purpose.

The purpose of this subchapter is to allocate appropriations from the national research university fund to provide a dedicated, independent, and equitable source of funding to enable emerging research universities in this state to achieve national prominence as major research universities.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.142.  Definitions.

In this subchapter:

(1)  "Eligible institution" means a general academic teaching institution that is eligible to receive distributions of money under this subchapter.

(2)  "Endowment funds" means funds treated as endowment funds under the coordinating board's accountability system.

(3)  "Fund" means the national research university fund.

(4)  "General academic teaching institution" has the meaning assigned by Section 61.003.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.143.  Administration And Investment Of Fund.

(a) The national research university fund is a fund outside the state treasury in the custody of the comptroller.

(b)  The comptroller shall administer and invest the fund in accordance with Section 20, Article VII, Texas Constitution.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.144.  Funding.

(a) The fund consists of any amounts appropriated or transferred to the credit of the fund under the Texas Constitution or otherwise appropriated or transferred to the credit of the fund under this section or another law.

(b)  The comptroller shall deposit to the credit of the fund all interest, dividends, and other income earned from investment of the fund.

(c)  The comptroller may accept gifts or grants from any public or private source for the fund.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.145.  Eligibility To Receive Distributions From Fund.

(a) A general academic teaching institution is eligible to receive a distribution of money under this subchapter for each year of a state fiscal biennium if:

(1)  the institution is designated as an emerging research university under the coordinating board's accountability system;

(2)  in each of the two state fiscal years preceding the state fiscal biennium, the institution expended at least $45 million in restricted research funds; and

(3)  the institution satisfies at least four of the following criteria:

(A)  the value of the institution's endowment funds is at least $400 million;

(B)  the institution awarded at least 200 doctor of philosophy degrees during each of the two academic years preceding the state fiscal biennium;

(C)  the entering freshman class of the institution for each of those two academic years demonstrated high academic achievement, as determined according to standards prescribed by the coordinating board by rule, giving consideration to the future educational needs of the state as articulated in the coordinating board's "Closing the Gaps" report;

(D)  the institution is designated as a member of the Association of Research Libraries or has a Phi Beta Kappa chapter or has received an equivalent recognition of research capabilities and scholarly attainment as determined according to standards prescribed by the coordinating board by rule;

(E)  the faculty of the institution for each of those two academic years was of high quality, as determined according to coordinating board standards based on the professional achievement and recognition of the institution's faculty, including the election of faculty members to national academies; and

(F)  the institution has demonstrated a commitment to high-quality graduate education, as determined according to standards prescribed by the coordinating board by rule, including the number of graduate-level programs at the institution, the institution's admission standards for graduate programs, and the level of institutional support for graduate students.

(b)  A general academic teaching institution that becomes eligible to receive a distribution of money under this subchapter remains eligible to receive a distribution in each subsequent state fiscal year.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.146.  Accounting Standards; Verification Of Information. (a)

The coordinating board by rule shall prescribe standard methods of accounting and standard methods of reporting information for the purpose of determining the eligibility of institutions under Section 62.145.

(b)  As soon as practicable in each even-numbered year, based on information submitted by the institutions to the coordinating board as required by the coordinating board, the coordinating board shall certify to the legislature verified information relating to the criteria established by Section 62.145 to be used to determine which institutions are initially eligible for distributions of money from the fund.  Information submitted to the coordinating board by institutions for purposes of this subchapter and the coordinating board's certification of that information under this subsection are subject to audit by the state auditor in accordance with Chapter 321, Government Code.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.147.  Ineligibility Of Institutions Receiving Permanent University Fund Support And Maintenance.

The University of Texas at Austin and Texas A&M University are ineligible to receive money under this subchapter.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.148.  Allocation Of Appropriated Funds To Eligible Institutions.

In each state fiscal year, the comptroller shall distribute to eligible institutions the total amount appropriated from the fund for that fiscal year.  The amount shall be allocated to the eligible institutions based on an equitable formula adopted by the legislature to carry out the purposes of the fund as established by Section 20, Article VII, Texas Constitution.  In adopting the allocation formula, the legislature may consider the recommendations of the coordinating board, including recommendations on the appropriate elements and relative weights of elements of the formula.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.



Section 62.149.  Use Of Allocated Amounts.

(a) An eligible institution may use money received under this subchapter only for the support and maintenance of educational and general activities that promote increased research capacity at the institution.

(b)  For purposes of Subsection (a), the use of money shall be limited to the following permitted activities:

(1)  providing faculty support and paying faculty salaries;

(2)  purchasing equipment or library materials;

(3)  paying graduate stipends; and

(4)  supporting research performed at the institution, including undergraduate research.

(c)  Money received in a fiscal year by an institution under this subchapter that is not used in that fiscal year by the institution may be held and used by the institution in subsequent fiscal years for the purposes prescribed by this section.

Added by Acts 2009, 81st Leg., R.S., Ch. 287, Sec. 13, eff. September 1, 2009.


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