82R6544 KEL-F
 
  By: Coleman H.B. No. 2115
 
 
 
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 62.146, 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)  As soon as practicable after January 1 of each year, the
  coordinating board shall provide the comptroller with verified
  information relating to the amounts of restricted research funds
  expended by eligible institutions as necessary to determine the
  distributions of money from the fund under Section 62.148 for that
  fiscal year.
         (d)  Information submitted to the coordinating board by
  institutions for purposes of 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.
         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 the total
  amount of money appropriated from the fund for that fiscal year,
  except as provided by Subsection (d).
         (b)  Subject to Subsection (c), the total amount of money
  appropriated from the fund for a state fiscal year shall be
  distributed among the eligible institutions in proportion to the
  average amount of restricted research funds expended by each
  institution each year for the three preceding state fiscal years.
         (c)  If in calculating distributions for a state fiscal year
  under Subsection (b) the comptroller determines that one or more
  eligible institutions will not receive a distribution of at least
  $2.5 million for that fiscal year and if sufficient funds are
  available for the purpose, the comptroller shall distribute the
  appropriated money as follows:
               (1)  $2.5 million to each eligible institution,
  regardless of the amount the institution would otherwise have
  received under Subsection (b); and
               (2)  any remaining amount to the eligible institutions
  that would have received a distribution under Subsection (b) of at
  least $2.5 million for that fiscal year, in proportion to the
  average amount of restricted research funds used to calculate
  distributions to the institutions under Subsection (b).
         (d)  If in any state fiscal year the comptroller makes the
  determination described by Subsection (c) but sufficient funds are
  not available to make the full amount of each distribution required
  by Subsection (c)(1), the comptroller shall retain within the fund
  all amounts appropriated from the fund for that fiscal year.
  Eligible institutions may not receive a distribution of money for
  that state fiscal year, and the appropriation lapses at the end of
  that fiscal year.
         (e)  For purposes of Subsection (b), the amount of restricted
  research funds expended by an institution in a state fiscal year is
  the amount of those funds as reported to the coordinating board by
  the institution for that fiscal year, subject to any adjustment by
  the coordinating board in accordance with the standard accounting
  methods the coordinating board prescribes under Section 62.146(a) 
  [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.