82R18668 KEL-D
 
  By: Branch, Coleman H.B. No. 1000
 
  Substitute the following for H.B. No. 1000:
 
  By:  Branch C.S.H.B. No. 1000
 
 
 
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
  certain general academic teaching institutions in connection with
  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  audit by the state auditor in accordance with
  Chapter 321, Government Code.  The coordinating board may also
  request one or more audits by the state auditor as necessary or
  appropriate at any time after an eligible institution begins
  receiving distributions under this subchapter.  From money
  appropriated from the fund, the comptroller shall reimburse the
  state auditor for the expenses of any audits conducted under this
  subsection.
         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 20 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, 2016.
         (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.
         (f)  For purposes of this section, the total amount
  appropriated from the fund for a state fiscal year does not include
  any portion of the amount appropriated that is used to reimburse the
  costs of an audit conducted under Section 62.146(c) [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.