Bill Text: TX HB1000 | 2011-2012 | 82nd Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the distribution of money appropriated from the national research university fund; making an appropriation.

Spectrum: Slight Partisan Bill (Republican 7-3)

Status: (Passed) 2011-06-17 - Effective immediately [HB1000 Detail]

Download: Texas-2011-HB1000-Engrossed.html
 
 
  By: Branch, Frullo, Coleman, Button, Bonnen, H.B. No. 1000
      et al.
 
 
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; making an appropriation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 62.145(a), Education Code, is amended to
  read as follows:
         (a)  A general academic teaching institution becomes [is]
  eligible to receive an initial [a] distribution of money
  appropriated under this subchapter for a state fiscal [each] year
  [of a state fiscal biennium] if:
               (1)  the institution is designated as an emerging
  research university under the coordinating board's accountability
  system;
               (2)  in each of the two state fiscal years preceding the
  state fiscal year for which the appropriation is made [biennium],
  the institution expended at least $45 million in restricted
  research funds; and
               (3)  the institution satisfies at least four of the
  following criteria:
                     (A)  the value of the institution's endowment
  funds is at least $400 million;
                     (B)  the institution awarded at least 200 doctor
  of philosophy degrees during each of the two academic years
  preceding the state fiscal year for which the appropriation is made 
  [biennium];
                     (C)  the entering freshman class of the
  institution for each of those two academic years demonstrated high
  academic achievement, as determined according to standards
  prescribed by the coordinating board by rule, giving consideration
  to the future educational needs of the state as articulated in the
  coordinating board's "Closing the Gaps" report;
                     (D)  the institution is designated as a member of
  the Association of Research Libraries or has a Phi Beta Kappa
  chapter or has received an equivalent recognition of research
  capabilities and scholarly attainment as determined according to
  standards prescribed by the coordinating board by rule;
                     (E)  the faculty of the institution for each of
  those two academic years was of high quality, as determined
  according to coordinating board standards based on the professional
  achievement and recognition of the institution's faculty,
  including the election of faculty members to national academies;
  and
                     (F)  the institution has demonstrated a
  commitment to high-quality graduate education, as determined
  according to standards prescribed by the coordinating board by
  rule, including the number of graduate-level programs at the
  institution, the institution's admission standards for graduate
  programs, and the level of institutional support for graduate
  students.
         SECTION 2.  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 state fiscal 
  [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
  comptroller and 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 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. Each audit must be
  based on an examination of all or a representative sample of the
  restricted research funds awarded to the institution and the
  institution's expenditures of those funds, and must include, among
  other elements:
               (1)  verification of the amount of restricted research
  funds expended by the institution in the appropriate state fiscal
  year or years; and
               (2)  verification of compliance by the institution and
  the coordinating board with the standard methods of accounting and
  standard methods of reporting prescribed by the coordinating board
  under Subsection (a), including verification of:
                     (A)  the institution's compliance with the
  coordinating board's standards and accounting methods for
  reporting expenditures of restricted research funds; and
                     (B)  whether the institution's expenditures meet
  the coordinating board's definition of restricted research
  expenditures.
         (d)  From money appropriated from the fund, the comptroller
  shall reimburse the state auditor for the expenses of any audits
  conducted under Subsection (c).
         SECTION 3.  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 4.  For each fiscal year of the state fiscal biennium
  ending August 31, 2013, the maximum amount permitted by Section 20,
  Article VII, Texas Constitution, and by Section 62.148(b),
  Education Code, as added by this Act, is appropriated to the
  comptroller from the national research university fund for
  distribution to eligible institutions in accordance with and for
  the purposes described by Subchapter G, Chapter 62, Education Code.
         SECTION 5.  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.
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