82R4389 KEL-F
By: Duncan, Zaffirini S.B. No. 557
A BILL TO BE ENTITLED
AN ACT
relating to the distribution of money appropriated from the
national research university fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 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 3.5 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) Of the total amount appropriated from the fund for a
state fiscal year, each eligible institution is entitled to a
distribution in an amount equal to the sum of:
(1) one-seventh of the total amount appropriated; and
(2) an equal share of any amount remaining after
distributions are calculated under Subdivision (1), not to exceed
an amount equal to one-fourth of that remaining amount.
(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 as prescribed by Subsection (c). The
appropriation of that retained amount lapses at the end of that
state 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 2. 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.