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A BILL TO BE ENTITLED
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AN ACT
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relating to the distribution of money appropriated from the |
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national research university fund; making an appropriation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 62.145(a), Education Code, is amended to |
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read as follows: |
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(a) A general academic teaching institution becomes [is] |
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eligible to receive an initial [a] distribution of money |
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appropriated under this subchapter for a state fiscal [each] year |
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[of a state fiscal biennium] if: |
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(1) the institution is designated as an emerging |
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research university under the coordinating board's accountability |
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system; |
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(2) in each of the two state fiscal years preceding the |
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state fiscal year for which the appropriation is made [biennium], |
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the institution expended at least $45 million in restricted |
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research funds; and |
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(3) the institution satisfies at least four of the |
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following criteria: |
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(A) the value of the institution's endowment |
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funds is at least $400 million in each of the two state fiscal years |
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preceding the state fiscal year for which the appropriation is |
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made; |
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(B) the institution awarded at least 200 doctor |
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of philosophy degrees during each of the two academic years |
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preceding the state fiscal year for which the appropriation is made |
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[biennium]; |
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(C) the entering freshman class of the |
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institution for each of those two academic years demonstrated high |
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academic achievement, as determined according to standards |
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prescribed by the coordinating board by rule, giving consideration |
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to the future educational needs of the state as articulated in the |
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coordinating board's "Closing the Gaps" report; |
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(D) the institution is designated as a member of |
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the Association of Research Libraries or has a Phi Beta Kappa |
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chapter or has received an equivalent recognition of research |
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capabilities and scholarly attainment as determined according to |
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standards prescribed by the coordinating board by rule; |
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(E) the faculty of the institution for each of |
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those two academic years was of high quality, as determined |
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according to coordinating board standards based on the professional |
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achievement and recognition of the institution's faculty, |
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including the election of faculty members to national academies; |
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and |
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(F) for each of those two academic years, the |
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institution has demonstrated a commitment to high-quality graduate |
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education, as determined according to standards prescribed by the |
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coordinating board by rule, including standards relating to the |
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number of graduate-level programs at the institution, the |
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institution's admission standards for graduate programs, and the |
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level of institutional support for graduate students. |
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SECTION 2. Section 62.146, Education Code, is amended to |
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read as follows: |
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Sec. 62.146. ACCOUNTING STANDARDS; VERIFICATION OF |
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INFORMATION. (a) The coordinating board by rule shall prescribe |
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standard methods of accounting and standard methods of reporting |
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information for the purpose of determining: |
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(1) the eligibility of institutions under Section |
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62.145; and |
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(2) the amount of restricted research funds expended |
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by an eligible institution in a state fiscal year. |
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(b) As soon as practicable in each state fiscal |
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[even-numbered] year, based on information submitted by the |
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institutions to the coordinating board as required by the |
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coordinating board, the coordinating board shall certify to the |
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comptroller and the legislature verified information relating to |
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the criteria established by Section 62.145 to be used to determine |
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which institutions are [initially] eligible for distributions of |
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money from the fund. |
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(c) Information submitted to the coordinating board by |
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institutions for purposes of establishing eligibility under this |
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subchapter and the coordinating board's certification or |
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verification of that information under this section [subsection] |
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are subject to a mandatory audit by the state auditor in accordance |
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with Chapter 321, Government Code. The coordinating board may also |
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request one or more audits by the state auditor as necessary or |
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appropriate at any time after an eligible institution begins |
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receiving distributions under this subchapter. Each audit must be |
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based on an examination of all or a representative sample of the |
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restricted research funds awarded to the institution and the |
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institution's expenditures of those funds, and must include, among |
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other elements: |
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(1) verification of the amount of restricted research |
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funds expended by the institution in the appropriate state fiscal |
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year or years; and |
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(2) verification of compliance by the institution and |
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the coordinating board with the standard methods of accounting and |
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standard methods of reporting prescribed by the coordinating board |
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under Subsection (a), including verification of: |
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(A) the institution's compliance with the |
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coordinating board's standards and accounting methods for |
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reporting expenditures of restricted research funds; and |
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(B) whether the institution's expenditures meet |
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the coordinating board's definition of restricted research |
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expenditures. |
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(d) From money appropriated from the fund, the comptroller |
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shall reimburse the state auditor for the expenses of any audits |
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conducted under Subsection (c). |
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SECTION 3. Section 62.148, Education Code, is amended to |
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read as follows: |
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Sec. 62.148. DISTRIBUTION [ALLOCATION] OF APPROPRIATED |
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FUNDS TO ELIGIBLE INSTITUTIONS. (a) In each state fiscal year, |
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the comptroller shall distribute to eligible institutions in |
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accordance with this section money [the total amount] appropriated |
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from the fund for that fiscal year. |
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(b) The total amount appropriated from the fund for any |
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state fiscal year may not exceed an amount equal to 4.5 percent of |
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the average net market value of the investment assets of the fund |
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for the 12 consecutive state fiscal quarters ending with the last |
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quarter of the preceding state fiscal year, as determined by the |
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comptroller. |
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(b-1) For purposes of Subsection (b), for a state fiscal |
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quarter that includes any period before the fund was established on |
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January 1, 2010, a reference to the average net market value of the |
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investment assets of the fund includes the average net market value |
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of the investment assets of the former higher education fund for the |
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applicable state fiscal quarter. This subsection expires January |
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1, 2014. |
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(c) Subject to Subsection (e), of the total amount |
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appropriated from the fund for distribution in a state fiscal year, |
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each eligible institution is entitled to a distribution in an |
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amount equal to the sum of: |
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(1) one-seventh of the total amount appropriated; and |
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(2) an equal share of any amount remaining after |
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distributions are calculated under Subdivision (1), not to exceed |
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an amount equal to one-fourth of that remaining amount. |
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(d) The comptroller shall retain within the fund any portion |
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of the total amount appropriated from the fund for distribution |
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that remains after all distributions are made for a state fiscal |
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year as prescribed by Subsection (c). The appropriation of that |
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retained amount lapses at the end of that state fiscal year. |
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(e) If the number of institutions that are eligible for |
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distributions in a state fiscal year is more than four, each |
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eligible institution is entitled to an equal share of the total |
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amount appropriated from the fund for distribution in that fiscal |
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year. |
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(f) For purposes of this section, the total amount |
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appropriated from the fund for distribution in a state fiscal year |
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does not include any portion of the amount appropriated that is used |
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to reimburse the costs of an audit conducted under Section |
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62.146(c) [The amount shall be allocated to the eligible
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institutions based on an equitable formula adopted by the
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legislature to carry out the purposes of the fund as established by
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Section 20, Article VII, Texas Constitution.
In adopting the
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allocation formula, the legislature may consider the
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recommendations of the coordinating board, including
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recommendations on the appropriate elements and relative weights of
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elements of the formula]. |
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SECTION 4. For each fiscal year of the state fiscal biennium |
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ending August 31, 2013, the maximum amount permitted by Section 20, |
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Article VII, Texas Constitution, and by Section 62.148(b), |
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Education Code, as added by this Act, is appropriated to the |
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comptroller from the national research university fund for |
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distribution to eligible state universities in accordance with and |
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for the purposes described by Subchapter G, Chapter 62, Education |
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Code. |
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SECTION 5. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |
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