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A JOINT RESOLUTION
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proposing a constitutional amendment creating a university |
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research fund to support emerging research universities in The |
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University of Texas System or The Texas A&M University System and |
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disqualifying all component institutions of those university |
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systems from receiving money from the national research university |
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fund. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 18, Article VII, Texas Constitution, is |
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amended by adding Subsection (f-1) to read as follows: |
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(f-1) Notwithstanding Subsection (f) of this section, the |
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boards of regents of The University of Texas System and The Texas |
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A&M University System may deposit to the credit of the university |
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research fund established under Section 21 of this article all or |
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part of the portion of the applicable system's share of the annual |
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distribution from the permanent university fund to the available |
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university fund remaining after the payment of principal and |
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interest on bonds and notes described by Subsection (f) of this |
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section. |
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SECTION 2. Section 20(g), Article VII, Texas Constitution, |
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is amended to read as follows: |
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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. A component institution of The University of Texas System |
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or The [at Austin and] Texas A&M University System is [are] not |
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eligible to receive money from the fund. |
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SECTION 3. Article VII, Texas Constitution, is amended by |
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adding Section 21 to read as follows: |
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Sec. 21. (a) There is established the university research |
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fund for the purpose of providing a dedicated, independent, and |
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equitable source of funding to enable emerging research |
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universities in The University of Texas System or The Texas A&M |
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University System to achieve national prominence as major research |
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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 component institutions of |
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The University of Texas System or The Texas A&M University System 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 determined by the |
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legislature, or an agency designated by the legislature, as |
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necessary to provide as nearly as practicable a stable and |
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predictable stream of annual distributions to eligible component |
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institutions of The University of Texas System or The Texas A&M |
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University System and to maintain over time the purchasing power of |
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fund investment assets. If the purchasing power of fund investment |
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assets for any rolling 10-year period is not preserved, the |
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distributions may not be increased until the purchasing power of |
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the fund investment assets is restored. The amount appropriated |
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from the fund in any fiscal year may not exceed an amount equal to |
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seven percent of the average net fair market value of the investment |
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assets of the fund, as determined by law. Until the fund has been |
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invested for a period of time sufficient to determine the |
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purchasing power over a 10-year period, the legislature may provide |
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by law for means of preserving the purchasing power of the fund. |
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(g) The legislature shall establish criteria by which a |
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component institution of The University of Texas System or The |
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Texas A&M University System may become eligible to receive a |
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portion of the distributions from the fund. An institution that |
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becomes eligible to receive a portion of the distributions from the |
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fund in a state fiscal biennium remains eligible to receive |
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additional distributions from the fund in any subsequent state |
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fiscal biennium. Only a component institution of The University of |
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Texas System or The Texas A&M University System may be eligible to |
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receive money from the fund. |
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(h) An eligible component institution of The University of |
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Texas System or The Texas A&M University System may use |
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distributions from the fund only for the support and maintenance of |
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educational and general activities that promote increased research |
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capacity at the institution. |
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SECTION 4. 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 88th Legislature, |
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Regular Session, 2023, creating a university research fund to |
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support emerging research universities in The University of Texas |
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System or The Texas A&M University System and disqualifying all |
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component institutions of those university systems from receiving |
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money from the national research university fund. |
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(b) The amendment to Section 20(g), Article VII, of this |
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constitution takes effect September 1, 2025. |
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(c) This temporary provision expires September 1, 2026. |
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SECTION 5. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held November 7, 2023. |
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The ballot shall be printed to permit voting for or against the |
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proposition: "The constitutional amendment creating a university |
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research fund to support emerging research universities in The |
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University of Texas System or The Texas A&M University System and |
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disqualifying all component institutions of those university |
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systems from receiving money from the national research university |
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fund." |