82R12381 KEL-D
By: Branch H.B. No. 2626
A BILL TO BE ENTITLED
AN ACT
relating to the distribution of money appropriated from the
national research university fund and to one or more audits of the
information necessary to establish eligibility for that
distribution.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 62.146, Education Code, is amended to
read as follows:
Sec. 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:
(1) the eligibility of institutions under Section
62.145; and
(2) the amount of restricted research funds expended
by an eligible institution in a state fiscal year.
(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.
(c) Information submitted to the coordinating board by
institutions for purposes of establishing eligibility under this
subchapter and the coordinating board's certification or
verification of that information under this section [subsection]
are subject to a mandatory audit by the state auditor in accordance
with Chapter 321, Government Code. The coordinating board may
request subsequent audits by the state auditor as necessary or
appropriate after an eligible institution begins receiving
distributions under this subchapter.
SECTION 2. Section 62.148, Education Code, is amended to
read as follows:
Sec. 62.148. DISTRIBUTION [ALLOCATION] OF APPROPRIATED
FUNDS TO ELIGIBLE INSTITUTIONS. (a) In each state fiscal year,
the comptroller shall distribute to eligible institutions in
accordance with this section an [the total] amount appropriated
from the fund for that fiscal year.
(b) The total amount appropriated from the fund for any
state fiscal year may not exceed an amount equal to 4.5 percent of
the average net market value of the investment assets of the fund
for the 12 consecutive state fiscal quarters ending with the last
quarter of the preceding state fiscal year, as determined by the
comptroller.
(b-1) For purposes of Subsection (b), for a state fiscal
quarter that includes any period before the fund was established on
January 1, 2010, a reference to the average net market value of the
investment assets of the fund includes the average net market value
of the investment assets of the former higher education fund for the
applicable state fiscal quarter. This subsection expires January
1, 2014.
(c) In each state fiscal year, each eligible institution is
entitled to an equal share of the total amount to be distributed
from the fund in that year. Subject to Subsection (e), the total
amount to be distributed from the fund to those eligible
institutions in that year is a portion of the total amount
appropriated from the fund for that year determined as follows:
(1) one-half of the total amount appropriated if only
one institution has established eligibility;
(2) two-thirds of the total amount appropriated if two
institutions have established eligibility;
(3) three-fourths of the total amount appropriated if
three institutions have established eligibility;
(4) four-fifths of the total amount appropriated if
four institutions have established eligibility;
(5) five-sixths of the total amount appropriated if
five institutions have established eligibility; and
(6) six-sevenths of the total amount appropriated if
six institutions have established eligibility.
(d) The comptroller shall retain within the fund any portion
of an appropriated amount that remains after all distributions are
made for a state fiscal year under this section. The appropriation
of that retained amount lapses at the end of that state fiscal year.
(e) If the number of institutions that are eligible for
distributions in a state fiscal year is more than six, each eligible
institution is entitled to an equal share of 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].
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.