AUSTIN -- UTEP and six other public universities will get to compete for millions of state dollars to help elevate their profile as research institutions, under a bill Gov. Rick Perry signed Wednesday.

"We need to continue our state's march toward an academic dominance that not only matches our economic lead, but also helps us sustain our economic power," Perry said in a statement. He signed the bill during a ceremony at the University of Texas at Dallas.

The measure may signal a giant leap for Texas higher education because it establishes requirements that seven universities must meet to access about $680 million in state money.

Eligible for the money are the University of Texas at El Paso, UT Dallas, UT Arlington, UT San Antonio, Texas Tech University, the University of Houston and North Texas University.

The money would allow the schools to invest in the faculty and programs they need to eventually become research powerhouses, which academics call tier-one universities.

Tier-one schools are generally considered to be those that receive at least $100 million in research grants annually and have selective admissions, low student-faculty ratios and competitive salaries.

California is home to nine tier-one institutions, but Texas has just three. They are the University of Texas at Austin, Texas A&M University and Rice University, a private school in Houston.

"This bill is a game changer for Texas," said state Rep. Dan Branch, R-Dallas, author of the bill.

Under the bill, the seven "emerging research institutions" would be rewarded for steps they make toward reaching tier-one designation.

Some of the money, which could be available as soon as this fall, would be used as "match money." Universities could receive those dollars to match money they get for research grants and donations from private contributors to support research.

If voters in November approve a change to the Texas Constitution, UTEP and the other schools would eventually be able to compete for an additional $425 million.

Ensuring that UTEP could compete for tier-one money was the top priority for El Paso lawmakers this year.

Richard Adauto, UTEP executive vice president, said university officials are designing strategies that will allow them to access those dollars.

Though El Paso legislators acknowledge that it could take several years before UTEP reaches that elite status, they have said the bill Perry signed is a step in the right direction.

"It's good that UTEP is a part of it, that we're included in that competition," said state Rep. Joe Moody, D-El Paso.

But some legislators and Latino advocates have expressed concern that at least one of the criteria to receive tier-one money could put Hispanic-serving institutions such as UTEP at a disadvantage.

One of the criteria is that a school award 200 doctoral degrees for two consecutive years.

For UTEP, that may be the greatest hurdle.

The school had only one doctoral program until the 1990s, because that was all state higher education leaders would approve.

UTEP now offers 16 doctoral programs, but awarded only 31 Ph.D.s last year.

Although more doctoral programs are in the works, UTEP President Diana Natalicio has said it could be years before the school could award 200 Ph.D.s.

Moody said lawmakers should consider adjusting the Ph.D. criteria when they meet again in two years.

"We need a level playing field for those schools included in that competition," he said.