By Turner of Coleman                                  H.B. No. 3348
         76R7316 CAG-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to accounting for the receipt and expenditure of
 1-3     educational and general funds of an institution of higher
 1-4     education.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 61.065, Education Code, is amended by
 1-7     adding Subsections (c) and (d) to read as follows:
 1-8           (c)  The comptroller and the board shall jointly prescribe
 1-9     and periodically update a uniform system of financial accounting
1-10     of all educational and general funds received by an institution of
1-11     higher education, including tuition, laboratory fees, student
1-12     teaching fees, organized activity fees, proceeds from the sale of
1-13     educational and general equipment, and indirect cost recovery fees
1-14     received by an institution.  The system may include a requirement
1-15     that:
1-16                 (1)  any portion of educational and general funds
1-17     received by an institution be deposited in the treasury;
1-18                 (2)  all educational and general funds be accounted for
1-19     in a manner that allows the state auditor to accurately and
1-20     efficiently audit an institution's educational and general funds;
1-21     and
1-22                 (3)  each institution reconcile any estimated
1-23     educational and general funds calculated during the previous
1-24     biennial budget process to the actual amount of educational and
 2-1     general funds that the institution received.
 2-2           (d)  Each institution shall report its reconciliation under
 2-3     Subsection (c)(3) to the comptroller and the Legislative Budget
 2-4     Board not later than 60 days after the last day of each fiscal
 2-5     year.  If the reconciliation for a year indicates that the actual
 2-6     educational and general funds received during the fiscal year
 2-7     exceeded the estimate, an amount of the institution's general
 2-8     revenue appropriations equal to that difference may not be expended
 2-9     by the institution in the following fiscal year without the prior
2-10     approval of the Legislative Budget Board.
2-11           SECTION 2.  The comptroller of public accounts and the Texas
2-12     Higher Education Coordinating Board shall adopt a uniform system of
2-13     accounting described by Section 61.065(c), Education Code, as added
2-14     by this Act, not later than September 1, 1999.
2-15           SECTION 3.  The importance of this legislation and the
2-16     crowded condition of the calendars in both houses create an
2-17     emergency and an imperative public necessity that the
2-18     constitutional rule requiring bills to be read on three several
2-19     days in each house be suspended, and this rule is hereby suspended,
2-20     and that this Act take effect and be in force from and after its
2-21     passage, and it is so enacted.