1. (a) Not later than November 1 of each fiscal year for which there is an appropriation for the Research Development Fund, the Commissioner shall provide a preliminary restricted research expenditure report to the Comptroller and recommend funding allocations from the Research Development Fund to eligible institutions.
2. (b) The Commissioner shall not recommend a funding allocation for an institution that has failed to report its restricted research expenditures until the institution has completed the required report. The Commissioner may recommend that a percentage of the institution's funding allocation, not to exceed 15 percent, be withheld permanently and redistributed among the other eligible institutions as a penalty for restricted research expenditure reports that are more than 60 days late.
3. (c) If there are remaining funds in the Research Development Fund after the initial allocation, the Commissioner shall provide updated reports to the Comptroller for distribution of those funds.

Source Note:The provisions of this §13.128 adopted to be effective May 15, 2005, 30 TexReg 2664.