EDUCATION CODE
CHAPTER 62. DIVISION OF CONSTITUTIONALLY APPROPRIATED FUNDS AMONG
CERTAIN INSTITUTIONS OF HIGHER EDUCATION
SUBCHAPTER A. GENERAL PROVISIONS
§ 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, § 1, eff. June 3, 1985.
§ 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, § 1, eff. June 3, 1985.
§ 62.003. DEFINITIONS. In this chapter:
(1) "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, § 1, eff. June 3, 1985.
Amended by Acts 1995, 74th Leg., ch. 1045, § 1, eff. June 17,
1995.
SUBCHAPTER B. AMOUNTS ALLOCATED BY EQUITABLE ALLOCATION FORMULA
§ 62.021. ALLOCATIONS. (a) Each fiscal year, an
eligible institution is entitled to receive an amount allocated in
accordance with this section from funds appropriated 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. The comptroller may not issue a
warrant 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, separate allocations for medical units and the Texas
State Technical College System, and an additional allocation for
Texas Southern University for compliance with the Texas
Desegregation Plan. The amounts allocated by the formula are as
follows:
$ 5,256,817 Texas A&M University--Commerce, including an
allocation of $1, 027,070 to Texas A&M University--Texarkana;
$ 8,818,023 Lamar University, including an allocation of
$491,946 to Lamar Institute of Technology, an allocation of
$743,967 to Lamar University at Orange and an allocation of
$2,336,605 to Lamar University at Port Arthur;
$ 3,007,669 Midwestern State University;
$18,021,033 University of North Texas;
$ 7,131,692 The University of Texas--Pan American, including
an allocation of $1,050,580 to The University of Texas at
Brownsville;
$ 6,633,109 Stephen F. Austin State University;
$ 3,640,000 University of North Texas Health Science Center
at Fort Worth;
$26,132,524 Texas State University System Administration and
the following component institutions, including an allocation of
$3,887,211 to Angelo State University; an allocation of $5,864,608
to Sam Houston State University; an allocation of $14,479,112 to
Texas State University--San Marcos; an allocation of $1,635,271 to
Sul Ross State University; and an allocation of $266,322 to Sul
Ross State University-Rio Grande College;
$ 7,191,493 Texas Southern University (includes allocation
of $1,000,000 for compliance with Texas Desegregation Plan);
$20,961,881 Texas Tech University;
$ 7,735,000 Texas Tech University Health Sciences Center;
$ 6,974,897 Texas Woman's University;
$36,952,989 University of Houston System Administration and
the following component institutions, including an allocation of
$25,986,116 to the University of Houston; an allocation of
$1,659,449 to the University of Houston--Victoria; an allocation
of $3,853,447 to the University of Houston--Clear Lake; and an
allocation of $5,453,977 to the University of Houston--Downtown;
$12,692,873 The following components of The Texas A&M
University System, including an allocation of $3,687,722 to Texas
A&M University--Corpus Christi; an allocation of $1,778,155 to
Texas A&M International University; an allocation of $3,555,651 to
Texas A&M University--Kingsville; and an allocation of $3,671,345
to West Texas A&M University; and
$ 3,850,000 Texas State Technical College System
Administration and the following component campuses, but not its
extension centers or programs: Texas State Technical
College-Harlingen; Texas State Technical College--Marshall;
Texas State Technical College-Sweetwater; Texas State Technical
College--Waco.
(b) Each governing board participating in the distribution
of funds as described in this section may expend the funds without
limitation, and as the governing board may decide in its sole
discretion, for any and all purposes described in Article VII,
Section 17, of the Constitution of Texas; provided, however, that
for new construction, major repair and rehabilitation projects, and
land acquisition projects, those funds may not be expended without
the prior approval of the legislature or the approval, review, or
endorsement, as applicable, of the coordinating board; and
provided further that review and approval of major repair and
rehabilitation shall apply only to projects in excess of $600,000.
(c) Each governing board participating in the distribution
of funds as described in this section may issue bonds and notes as
authorized in Article VII, Section 17, of the Constitution of
Texas. For purposes of this chapter, the governing board of Texas
Tech University may issue bonds and notes as authorized in Article
VII, Section 17, of the Constitution of Texas, on behalf of both
Texas Tech University and Texas Tech University Health Sciences
Center, and the annual appropriations of both institutions may be
combined and pledged by the governing body of Texas Tech University
in support of such bonds and notes.
(d) All funds appropriated by Article VII, Section 17, of
the Constitution of Texas, but not expended during the fiscal year
of appropriation, shall be carried forward and reappropriated for
each of the succeeding fiscal years until expended by the governing
boards of eligible institutions for the purposes described in
Article VII, Section 17, of the Constitution of Texas.
(e) The amount allocated by Subsection (a) to Lamar
University and its educational centers is considered part of the
amount allocated by Subsection (a) to the Texas State University
System administration and its component institutions, to be spent
as provided by Subsection (b) in the sole discretion of the
governing board of the Texas State University System for the system
and its institutions.
Added by Acts 1985, 69th Leg., ch. 225, § 1, eff. June 3, 1985.
Amended by Acts 1987, 70th Leg., ch. 1070, § 5, eff. May 15,
1988; Acts 1989, 71st Leg., ch. 1084, § 1.31; Acts 1991, 72nd
Leg., ch. 105, § 3, eff. Aug. 26, 1991; Acts 1991, 72nd Leg., ch.
305, § 3, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 260, §
12, eff. Sept. 1, 1993; Acts 1993, 73rd Leg., ch. 408, § 11, eff.
Aug. 30, 1993; Acts 1995, 74th Leg., ch. 1045, § 2, eff. June 17,
1995; Acts 1995, 74th Leg., ch. 1061, § 9, eff. Sept. 1, 1995;
Acts 1997, 75th Leg., ch. 129, § 1, eff. May 19, 1997; Acts 1999,
76th Leg., ch. 1363, § 2, eff. Sept. 1, 1999; Acts 1999, 76th
Leg., ch. 1467, § 1.03, eff. June 19, 1999; Acts 1999, 76th
Leg., ch. 1508, § 1, eff. June 19, 1999; Acts 2001, 77th Leg.,
ch. 238, § 2, eff. May 22, 2001; Acts 2001, 77th Leg., ch. 1212,
§ 1, eff. June 15, 2001; Acts 2003, 78th Leg., ch. 386, § 8,
eff. Sept. 1, 2003.
§ 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, § 1, eff. June 3, 1985.
Amended by Acts 1989, 71st Leg., ch. 1084, § 1.33, eff. Sept. 1,
1989; Acts 1995, 74th Leg., ch. 1045, § 3, eff. June 17, 1995;
Acts 1999, 76th Leg., ch. 1467, § 1.05, eff. June 19, 1999.
§ 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, § 1, eff. June 3, 1985.
§ 62.024. AMOUNT OF ALLOCATION INCREASED. In
accordance with Article VII, Section 17(a), of the Texas
Constitution, the amount of the annual constitutional
appropriation under that subsection is increased to $175 million.
Added by Acts 1993, 73rd Leg., ch. 537, § 1, eff. Sept. 1, 1995.
§ 62.025. DEPOSIT OF $50 MILLION.
Text of subsec. (a) effective until September 1, 2005
(a) Not later than November 1 of each state fiscal year, the
comptroller shall deposit the first $50 million that comes to the
state at the beginning of each state fiscal year and that is not
dedicated by other law as follows:
(1) except as provided by Subsections (d) and (e), an
amount equal to the portion of the total return on all investment
assets of the higher education fund in the preceding state fiscal
year computed by multiplying that total return by the percentage of
the total return on all investment assets of the permanent fund for
tobacco education and enforcement that constitutes available
earnings as determined by the comptroller under Section 403.1068,
Government Code, in that year must be deposited to the credit of the
Texas excellence fund established under Subchapter C; and
(2) the remaining amount must be deposited to the
credit of the higher education fund.
Text of subsec. (a) effective September 1, 2005
(a) Not later than November 1 of each state fiscal year, the
comptroller shall deposit the first $50 million that comes to the
state at the beginning of each state fiscal year and that is not
dedicated by other law as follows:
(1) except as provided by Subsection (e), an amount
equal to the portion of the total return on all investment assets of
the higher education fund in the preceding state fiscal year
computed by multiplying that total return by the percentage of the
total return on all investment assets of the permanent fund for
tobacco education and enforcement that constitutes available
earnings as determined by the comptroller under Section 403.1068,
Government Code, in that year must be deposited to the credit of the
research development fund established under Subchapter E; and
(2) the remaining amount must be deposited to the
credit of the higher education fund.
(b) The comptroller may adopt rules to administer this
section.
Text of subsec. (c) effective until September 1, 2005
(c) The deposit required by this section to the higher
education fund expires on September 1 after the date the
comptroller certifies that the value of the higher education fund
is $2 billion. In each state fiscal year that begins on or after
that date, the comptroller shall deposit to the credit of the Texas
excellence fund established under Subchapter C from the first money
that comes to the state at the beginning of that fiscal year an
amount, not to exceed $50 million, equal to the portion of the total
return on all investment assets of the higher education fund in the
preceding state fiscal year computed by multiplying that total
return by the percentage of the total return on all investment
assets of the permanent fund for tobacco education and enforcement
that constitutes available earnings as determined by the
comptroller under Section 403.1068, Government Code.
Text of subsec. (c) effective September 1, 2005
(c) The deposit required by this section to the higher
education fund expires on September 1 after the date the
comptroller certifies that the value of the higher education fund
is $2 billion. In each state fiscal year that begins on or after
that date, the comptroller shall deposit to the credit of the
research development fund established under Subchapter E from the
first money that comes to the state at the beginning of that fiscal
year an amount, not to exceed $50 million, equal to the portion of
the total return on all investment assets of the higher education
fund in the preceding state fiscal year computed by multiplying
that total return by the percentage of the total return on all
investment assets of the permanent fund for tobacco education and
enforcement that constitutes available earnings as determined by
the comptroller under Section 403.1068, Government Code.
Text of subsec. (d) effective until September 1, 2005
(d) In any state fiscal year for which the legislature has
made an appropriation specifically for the purposes of the Texas
excellence fund in an amount equal to or greater than the amount
provided by Subsection (a)(1) or (c), as applicable to that state
fiscal year, the deposit to the Texas excellence fund under
Subsection (a)(1) or Subsection (c) may not be made.
Text of subsec. (e) effective until September 1, 2005
(e) An amount may not be deposited to the Texas excellence
fund under this section if Subchapter C expires or is repealed or if
the Texas excellence fund is abolished.
Text of subsec. (e) effective September 1, 2005
(e) An amount may not be deposited to the research
development fund under this section if Subchapter E expires or is
repealed or if the research development fund is abolished.
(f) Expired.
Added by Acts 1993, 73rd Leg., ch. 537, § 1, eff. Sept. 1, 1995.
Amended by Acts 2001, 77th Leg., ch. 1052, § 2, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 322, § 3, 4(1), eff. Sept. 1,
2005.
§ 62.026. HIGHER EDUCATION FUND. (a) The higher
education fund is a fund outside the state treasury in the custody
of the comptroller.
(b) The fund consists of the amount deposited in the fund
each state fiscal year under Section 62.025 and interest,
dividends, and other income earned from the investment of the fund.
(c) Distributions from the fund may be used only for the
purposes provided by Article VII, Section 17(a), of the Texas
Constitution.
(d) The comptroller shall administer and invest the fund.
In investing the fund, the comptroller has the same investment
authority as that provided under Sections 11a and 11b, Article VII,
Texas Constitution, or other law to the board of regents of The
University of Texas System with respect to the investment of the
permanent university fund. The investment authority granted to the
comptroller under this subsection is in addition to that provided
by Section 404.024, Government Code, or other law. The
comptroller, in consultation with the presiding officers of the
governing boards of the institutions eligible to benefit from the
investment of the fund under Section 17, Article VII, Texas
Constitution, shall invest the fund in a manner that maximizes the
total return of the fund.
(e) The comptroller may accept gifts or grants from any
public or private source for the fund.
(f) The comptroller may deduct a reasonable amount for
administrative expenses from the interest, dividends, and other
income earned from the investment of the fund. The amount deducted
shall be deposited to the credit of the general revenue fund.
(g) The comptroller shall certify the date on which the
value of the fund is $2 billion and publish that certification in
the Texas Register.
(h) Beginning with the first state fiscal year that begins
on or after the date the comptroller certifies that the value of the
higher education fund is $2 billion, the comptroller, not later
than November 1 of each fiscal year, shall distribute in accordance
with Article VII, Section 17(i), of the Texas Constitution the
interest, dividends, and other income earned from the investment of
the fund, less the amount of administrative expenses deducted under
Subsection (f) of this section, to the eligible institutions in
accordance with the allocation formula under Section 62.021(a) of
this code.
Added by Acts 1993, 73rd Leg., ch. 537, § 1, eff. Sept. 1, 1995.
Amended by Acts 1997, 75th Leg., ch. 1423, § 5.15, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 1235, § 1, eff. June 18, 1999;
Acts 2001, 77th Leg., ch. 1052, § 3, eff. Sept. 1, 2001.
§ 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 Section 62.024 in the amount of
the appropriation made under Section 17(a), Article VII, Texas
Constitution, is valid and effective beginning September 1, 1995.
Added by Acts 1995, 74th Leg., ch. 1045, § 4, eff. June 17, 1995.
SUBCHAPTER C. TEXAS EXCELLENCE FUND
§ 62.052. DEFINITIONS. In this subchapter:
(1) "Eligible comprehensive research university"
means an eligible general academic teaching institution that in
each of the two most recent state fiscal years, as verified by the
coordinating board:
(A) offered a full range of baccalaureate
programs and a wide variety of graduate programs;
(B) awarded 45 or more doctor of philosophy
degrees in the fields of science, agricultural science,
engineering, and clinical and experimental psychology; and
(C) expended at least $15 million in restricted
research funds as reported in the institution's annual financial
report for the applicable year.
(2) "Eligible general academic teaching institution"
means a general academic teaching institution, as defined by
Section 61.003, that is eligible to participate in the funding
provided by Section 17, Article VII, Texas Constitution.
Added by Acts 2001, 77th Leg., ch. 1052, § 1, eff. Sept. 1, 2001.
§ 62.053. ADMINISTRATION. (a) The Texas excellence
fund is a fund outside the state treasury in the custody of the
comptroller.
(b) The comptroller shall administer and invest the Texas
excellence fund.
Added by Acts 2001, 77th Leg., ch. 1052, § 1, eff. Sept. 1, 2001.
§ 62.054. FUNDING. (a) The legislature may
appropriate or provide for the transfer of any available money to
the credit of the Texas excellence fund.
(b) The comptroller shall deposit all interest, dividends,
and other income earned from investment of the Texas excellence
fund to the credit of the fund.
(c) The comptroller may accept gifts or grants from any
public or private source for the Texas excellence fund.
(d) An institution may use money appropriated from the Texas
excellence fund only for the support and maintenance of educational
and general activities, including research and student services,
that promote increased research capacity and develop institutional
excellence at the institution.
Added by Acts 2001, 77th Leg., ch. 1052, § 1, eff. Sept. 1, 2001.
§ 62.055. APPROPRIATION AND ALLOCATION OF FUND TO
ELIGIBLE INSTITUTIONS.
Text of section effective until Aug. 31, 2005
(a) In each state fiscal year, the comptroller shall
distribute the total amount of all assets in the Texas excellence
fund to eligible comprehensive research universities and other
eligible general academic teaching institutions as follows:
(1) 80 percent of the amount distributed from the fund
shall be distributed to the eligible comprehensive research
universities and be allocated among those institutions in
accordance with an equitable allocation formula based on the amount
of restricted research funds expended by each institution as
reported in each institution's annual financial report; and
(2) the remaining amount distributed from the fund
shall be distributed to the eligible general academic teaching
institutions, other than the eligible comprehensive research
universities, and be allocated among those institutions in
accordance with an equitable allocation formula based on the amount
of restricted research funds expended by each institution as
reported in each institution's annual financial report.
(d) This section expires August 31, 2005.
Added by Acts 2001, 77th Leg., ch. 1052, § 1, eff. Sept. 1, 2001.
Amended by Acts 2003, 78th Leg., ch. 386, § 9, eff. Sept. 1,
2003.
§ 62.056. VERIFICATION OF ALLOCATION FACTORS. (a) For
purposes of this subchapter, the coordinating board shall establish
standards and accounting methods for determining the amount of
restricted research funds expended by an eligible general academic
teaching institution in a state fiscal year.
(b) The coordinating board, as soon as practicable in each
state fiscal year, shall provide the comptroller with verified
information relating to the amounts of restricted research funds
expended and degrees awarded by eligible general academic teaching
institutions as necessary to determine the allocations under this
subchapter for that fiscal year.
(c) The coordinating board may audit the appropriate
records of an eligible general academic teaching institution to
verify information for purposes of this subchapter.
Added by Acts 2001, 77th Leg., ch. 1052, § 1, eff. Sept. 1, 2001.
§ 62.057. ANNUAL REPORT. Each institution of higher
education 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. 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.
Added by Acts 2001, 77th Leg., ch. 1052, § 1, eff. Sept. 1, 2001.
SUBCHAPTER D. UNIVERSITY RESEARCH FUND FOR CERTAIN PERMANENT
UNIVERSITY FUND INSTITUTIONS
§ 62.072. DEFINITIONS. In this subchapter:
(1) "Eligible general academic teaching institution"
means a general academic teaching institution, as defined by
Section 61.003, that:
(A) is a component institution of The University
of Texas System or The Texas A&M University System, other than The
University of Texas at Austin, Texas A&M University, or Prairie
View A&M University; and
(B) is eligible to participate in the funding
provided by Section 18, Article VII, Texas Constitution.
(2) "Eligible doctoral and research university" means
an eligible general academic teaching institution that:
(A) in each of the two preceding state fiscal
years, as verified by the coordinating board:
(i) offered a full range of baccalaureate
programs and a wide variety of graduate programs; and
(ii) awarded 50 or more doctor of
philosophy degrees; and
(B) in the three preceding state fiscal years, as
verified by the coordinating board, expended an average of at least
$5 million per year in restricted research funds as reported in the
institution's annual financial reports for the applicable years.
(3) "Eligible emerging doctoral and research
university" means an eligible general academic teaching
institution other than an eligible doctoral and research university
that:
(A) in each of the two preceding state fiscal
years, as verified by the coordinating board:
(i) offered a full range of baccalaureate
programs and a wide variety of graduate programs; and
(ii) awarded one or more doctor of
philosophy degrees; and
(B) in the three preceding state fiscal years, as
verified by the coordinating board, expended an average of at least
$5 million per year in restricted research funds as reported in the
institution's annual financial reports for the applicable years.
Added by Acts 2001, 77th Leg., ch. 1052, § 4, eff. Sept. 1, 2001.
§ 62.073. ADMINISTRATION. (a) The university research
fund is a fund outside the state treasury in the custody of the
comptroller.
(b) The comptroller shall administer and invest the
university research fund.
Added by Acts 2001, 77th Leg., ch. 1052, § 4, eff. Sept. 1, 2001.
§ 62.074. FUNDING. (a) In each state fiscal year, the
legislature shall appropriate or provide for the transfer to the
credit of the university research fund of an amount equal to the
amount deposited to the credit of the Texas excellence fund under
Section 62.025 or 62.054 in that fiscal year. The comptroller may
not deposit money to the credit of the Texas excellence fund under
Section 62.025 or 62.054 and the legislature may not appropriate
money specifically for the purposes of the Texas excellence fund
under Section 62.025(d) unless an equal amount is deposited at the
same time to the credit of the university research fund.
(b) The comptroller shall deposit all interest, dividends,
and other income earned from investment of the university research
fund to the credit of the fund.
(c) The comptroller may accept gifts or grants from any
public or private source for the university research fund.
(d) In each state fiscal year, the comptroller shall
distribute all assets in the university research fund as soon as
practicable to eligible institutions in accordance with this
subchapter.
(e) All assets received by an institution under this
subchapter may be used only for the support and maintenance of
educational and general activities, including research and student
services, that promote increased research capacity and develop
institutional excellence at that institution.
(f) Expired.
Added by Acts 2001, 77th Leg., ch. 1052, § 4, eff. Sept. 1, 2001.
§ 62.075. ALLOCATION TO ELIGIBLE INSTITUTIONS.
Text of section effective until Aug. 31, 2005
In each state fiscal year, the comptroller shall distribute
the total amount of all assets in the university research fund as
follows:
(1) $1 million shall be distributed to the eligible
general academic teaching institutions, other than the eligible
doctoral and research universities and eligible emerging doctoral
and research universities, and allocated among those institutions
in equal amounts; and
(2) the total amount to be distributed less the amount
required to be distributed under Subdivision (1) shall be
distributed to the eligible doctoral and research universities and
eligible emerging doctoral and research universities as follows:
(A) 50 percent shall be apportioned among those
institutions based on the average amount of restricted research
funds expended per year by each institution in the three preceding
state fiscal years as reported in each institution's applicable
annual financial reports; and
(B) the remaining 50 percent shall be apportioned
among those institutions as follows:
(i) 75 percent based on the number of doctor
of philosophy degrees awarded by each institution in the preceding
state fiscal year; and
(ii) the remaining 25 percent based on the
number of master's degrees awarded by each institution in the
preceding state fiscal year.
(3) This section expires August 31, 2005.
Added by Acts 2001, 77th Leg., ch. 1052, § 4, eff. Sept. 1, 2001.
§ 62.076. VERIFICATION OF ALLOCATION FACTORS. (a) For
purposes of this subchapter, the coordinating board shall establish
standards and accounting methods for determining the amount of
restricted research funds expended by an eligible general academic
teaching institution in a state fiscal year.
(b) The coordinating board, as soon as practicable in each
state fiscal year, shall provide the comptroller with verified
information relating to the amounts of restricted research funds
expended and degrees awarded by eligible general academic teaching
institutions as necessary to determine the allocations under this
subchapter for that fiscal year.
(c) The coordinating board may audit the appropriate
records of an eligible general academic teaching institution to
verify information for purposes of this subchapter.
Added by Acts 2001, 77th Leg., ch. 1052, § 4, eff. Sept. 1, 2001.
§ 62.077. ANNUAL REPORT. Each institution of higher
education 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. 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.
Added by Acts 2001, 77th Leg., ch. 1052, § 4, eff. Sept. 1, 2001.
SUBCHAPTER E. RESEARCH DEVELOPMENT FUND
§ 62.091. PURPOSE.
Text of section effective September 1, 2005
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, § 2, eff. Sept. 1, 2005.
§ 62.092. DEFINITIONS.
Text of section effective September 1, 2005
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, § 2, eff. Sept. 1, 2005.
§ 62.093. ADMINISTRATION.
Text of section effective September 1, 2005
(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, § 2, eff. Sept. 1, 2005.
§ 62.094. FUNDING.
Text of section effective September 1, 2005
(a) The research development fund consists of the amount
deposited to the credit of the fund under Section 62.025 in each
state fiscal year, the amount appropriated or transferred to the
credit of the fund by the legislature under Subsection (b), and any
other amounts transferred to the fund under this section.
(b) In each state fiscal year, the legislature may
appropriate or provide for the transfer to the credit of the
research development fund of an amount not less than the amount
deposited to the credit of the fund under Section 62.025 in that
fiscal year.
(c) The comptroller shall deposit all interest, dividends,
and other income earned from investment of the research development
fund to the credit of the fund.
(d) 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, § 2, eff. Sept. 1, 2005.
§ 62.095. APPORTIONMENT OF FUND TO ELIGIBLE
INSTITUTIONS.
Text of section effective September 1, 2005
(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, § 2, eff. Sept. 1, 2005.
§ 62.0951. APPORTIONMENT OF FUND IN 2006-2007 FISCAL
BIENNIUM.
Text of section effective September 1, 2005 until January 1, 2008
(a) This section applies to the apportionment of the
research development fund in each state fiscal year of the state
fiscal biennium ending August 31, 2007.
(b) In a state fiscal year to which this section applies, if
under the apportionment method prescribed by Section 62.095 an
eligible institution that received money from the university
research fund in the state fiscal year ending August 31, 2005, would
be entitled to receive from the research development fund an amount
that is less that 50 percent of the amount distributed to the
institution from the university research fund in the state fiscal
year ending August 31, 2005, the comptroller shall increase the
amount apportioned to that institution from the research
development fund to an amount equal to 50 percent of the amount
distributed to the institution from the university research fund in
the state fiscal year ending August 31, 2005.
(c) After apportioning the amount prescribed by Subsection
(b) to each eligible institution to which Subsection (b) applies,
the comptroller shall apportion the remaining amount to be
distributed from the research development fund in that fiscal year
to the remaining eligible institutions in proportion to the amounts
the institutions would be entitled to receive in that fiscal year
under the apportionment method prescribed by Section 62.095.
(d) This section expires January 1, 2008.
Added by Acts 2003, 78th Leg., ch. 322, § 2, eff. Sept. 1, 2005.
§ 62.096. VERIFICATION OF ALLOCATION FACTORS.
Text of section effective September 1, 2005
(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, § 2, eff. Sept. 1, 2005.
§ 62.097. USE OF ALLOCATED AMOUNTS.
Text of section effective September 1, 2005
(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, § 2, eff. Sept. 1, 2005.
§ 62.098. ANNUAL REPORT.
Text of section effective September 1, 2005
(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, § 2, eff. Sept. 1, 2005.
