Bill Text: TX SB5 | 2011-2012 | 82nd Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the administration and business affairs of public institutions of higher education.

Spectrum: Bipartisan Bill

Status: (Passed) 2011-06-17 - See remarks for effective date [SB5 Detail]

Download: Texas-2011-SB5-Introduced.html

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By: Zaffirini S.B. No. 5

A BILL TO BE ENTITLED
AN ACT
relating to public institutions of higher education, including the
administration, operation, financial management, and reporting
requirements of those institutions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. FINANCIAL MANAGEMENT
SECTION 1.01. Section 51.003(b), Education Code, is amended
to read as follows:
(b) The funds shall either be deposited in the depository
bank or banks or invested as authorized by Chapter 2256, Government
Code (Public Funds Investment Act). Funds that are to be deposited
in the depository bank or banks must be deposited within seven days
from the date of receipt by the institution [collection].
SECTION 1.02. Subchapter A, Chapter 51, Education Code, is
amended by adding Sections 51.010 and 51.011 to read as follows:
Sec. 51.010. COLLECTION OF DELINQUENT OBLIGATIONS. If
under the rules adopted by the attorney general under Chapter 2107,
Government Code, an institution of higher education is not required
to refer a delinquent obligation for collection to the attorney
general, the institution is not required to expend resources for
further collection efforts if, considering the amount, security,
likelihood of collection, expense, and available resources, the
institution determines that further collection should not be
actively pursued.
Sec. 51.011. DISPOSITION OF SMALL CREDIT BALANCES.
(a) This section applies to a credit balance of less than $25 held
by an institution of higher education that is presumed abandoned
under Chapter 72, Property Code.
(b) An institution of higher education may maintain an
unclaimed money fund and transfer to that fund a credit balance to
which this section applies. The institution shall hold and account
for the fund as educational and general funds of the institution.
(c) The institution shall use the unclaimed money fund to
pay the claims of persons establishing ownership of amounts
transferred to the fund. Each fiscal year, after retaining money in
the fund sufficient to pay anticipated expenses of and claims
against the fund, the institution shall use the balance as other
educational and general funds of the institution.
(d) In consultation with institutions of higher education,
the comptroller by rule may establish minimum requirements for
notice to owners of unclaimed money deposited in the unclaimed
money fund and for charges for that notice. The rules may not
provide stricter requirements than the comptroller applies for
amounts of less than $25 in the custody of the comptroller under
Chapter 74, Property Code.
(e) If an institution of higher education maintains an
unclaimed money fund under this section, Chapter 74, Property Code,
does not apply to a credit balance to which this section applies.
SECTION 1.03. Section 65.42, Education Code, is amended to
read as follows:
Sec. 65.42. DELINQUENT ACCOUNTS; VENUE. A suit by The
University of Texas System on its own behalf or on behalf of a
component institution of The University of Texas System to recover
a delinquent loan, account, or debt owed to The University of Texas
System or a component institution of The University of Texas System
must [may] be brought in Travis County.
SECTION 1.04. Section 1231.001, Government Code, is amended
by amending Subdivision (2) and adding Subdivision (3) to read as
follows:
(2) "State security" means:
(A) an obligation, including a bond, issued by:
(i) a state agency;
(ii) an entity that is expressly created by
statute and has statewide jurisdiction; or
(iii) an entity issuing the obligation on
behalf of this state or on behalf of an entity described by
Subparagraph (i) or (ii);
(B) an installment sale or lease-purchase
obligation that is issued by or on behalf of an entity described by
Paragraph (A) and that has:
(i) a stated term of more than five years;
or
(ii) an initial principal amount of more
than $250,000; or
(C) an obligation, including a bond, that is
issued under Chapter 53, Education Code, at the request of or for
the benefit of an institution of higher education [as defined by
Section 61.003, Education Code,] other than a public junior
college.
(3) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
SECTION 1.05. Section 1231.041, Government Code, is amended
to read as follows:
Sec. 1231.041. APPROVAL OF STATE SECURITY. (a) Except as
otherwise provided by this section, an [An] entity, including a
state agency, may not issue a state security unless:
(1) the board approves the issuance; or
(2) the security is exempted under law, including a
board rule adopted under Section 1231.022(2).
(b) A state security issued by an institution of higher
education, or issued at the request of or for the benefit of an
institution of higher education, is not subject to board approval
unless the general revenue of the state is pledged to the payment of
the security.
SECTION 1.06. Section 74.001, Property Code, is amended by
adding Subsection (c) to read as follows:
(c) This chapter does not apply to small credit balances
held by an institution of higher education in an unclaimed money
fund under Section 51.011, Education Code.
SECTION 1.07. Section 51.011, Education Code, as added by
this Act, applies to credit balances held by a public institution of
higher education on or after the effective date of this Act.
ARTICLE 2. GOODS AND SERVICES
SECTION 2.01. Section 51.923, Education Code, is amended to
read as follows:
Sec. 51.923. QUALIFICATIONS OF CERTAIN BUSINESS ENTITIES TO
ENTER INTO CONTRACTS WITH AN INSTITUTION OF HIGHER EDUCATION. (a)
In this section:
(1) "Business entity" ["Corporation"] means any
entity recognized by law through which business is conducted,
including a sole proprietorship, partnership, firm, corporation,
limited liability company, holding company, joint stock company,
receivership, or trust [a corporation for profit organized under
the laws of this state or under laws other than the laws of this
state].
(2) "Governing board" has the meaning assigned by
Section 61.003 [of this code].
(3) "Institution of higher education" has the meaning
assigned by Section 61.003 [of this code].
(4) "Nonprofit corporation" means any organization
exempt from federal income tax under Section 501 of the Internal
Revenue Code of 1986 that does not distribute any part of its income
to any member, director, or officer.
(b) A nonprofit corporation is not disqualified from
entering into a contract or other transaction with an institution
of higher education even though one or more members of the governing
board of the institution of higher education also serves as a
member, [or] director, officer, or employee of the nonprofit
corporation.
(c) A business entity [corporation] is not disqualified
from entering into a contract or other transaction with an
institution of higher education even though one or more members of
the governing board of the institution of higher education have an
interest in the business entity, subject to Subsection (d) [also
serves as a stockholder or director of the corporation provided
that no member of the governing board owns or has a beneficial
interest in more than five percent of the corporation's outstanding
capital stock and further provided that the contract or transaction
is:
[(1) an affiliation, licensing, or sponsored research
agreement; or
[(2) awarded by competitive bidding or competitive
sealed proposals].
(d) An institution of higher education is not prohibited
from entering into a contract or other transaction with a business
entity in which a member of the governing board of the institution
of higher education has an interest if the interest is not a
substantial interest or, if the interest is a substantial interest,
the [described in this section if any] board member [having an
interest described in this section in the contract or transaction]
discloses that interest in a meeting held in compliance with
Chapter 551, Government Code, and refrains from voting on the
contract or transaction requiring board approval. Any such
contract or transaction requiring board approval must be approved
by an affirmative majority of the board members voting on the
contract or transaction.
(e) For purposes of this section, a member of a governing
board has a substantial interest in a business entity if:
(1) the member owns 10 percent or more of the voting
stock or shares of the business entity or owns either 10 percent or
more or $15,000 or more of the fair market value of the business
entity;
(2) funds received by the member from the business
entity exceed 10 percent of the member's gross income for the
previous year;
(3) the member is an officer of the business entity or
a member of the governing board of the business entity; or
(4) an individual related to the member in the first
degree by consanguinity or affinity, as determined under Chapter
573, Government Code, has an interest in the business entity as
described by Subdivision (1), (2), or (3).
(f) A violation of this section does not render an action of
the governing board voidable unless the contract or transaction
that was the subject of the action would not have been approved by
the governing board without the vote of the member who violated this
section.
SECTION 2.02. Section 51.9335, Education Code, is amended
by amending Subsections (d), (e), and (f) and adding Subsections
(g) and (h) to read as follows:
(d) To the extent of any conflict, this section prevails
over any other law, including Chapters 2155, 2156, 2157, 2158,
2167, and 2170, Government Code, except a law or rule relating to
contracting with historically underutilized businesses [or
relating to the procurement of goods and services from persons with
disabilities]. An institution of higher education may, but is not
required to, acquire goods or services as provided by Chapters
2155, 2156, 2157, 2158, 2167, and 2170, Government Code.
(e) In this section, "institution of higher education" has
the meaning assigned by Section 61.003 and includes a school of
veterinary medicine and a health care facility operated by a
medical and dental unit, except that the term does not include [The
University of Texas M. D. Anderson Cancer Center or] a public junior
college.
(f) Except as otherwise provided by this section, Subtitle
D, Title 10, Government Code, and Chapter 2254, Government Code, do
[This section does] not apply to purchases of goods and services
under this section [professional services as defined by Section
2254.002, Government Code].
(g) An institution of higher education may adopt rules and
procedures for the acquisition of goods or services.
(h) In any contract for the acquisition of goods and
services to which an institution of higher education is a party, a
provision required by applicable law to be included in the contract
is considered to be a part of the executed contract without regard
to:
(1) whether the provision appears on the face of the
contract; or
(2) whether the contract includes any provision to the
contrary.
SECTION 2.03. Subchapter Z, Chapter 51, Education Code, is
amended by adding Sections 51.9336, 51.9337, and 51.9338 to read as
follows:
Sec. 51.9336. ELECTRONIC SIGNATURES. (a) An institution
of higher education or university system, as those terms are
defined by Section 61.003, shall determine whether, and the extent
to which, the institution or system will send and accept electronic
signatures to and from other persons and otherwise create,
generate, communicate, store, process, use, and rely on electronic
signatures. The institution or system may adopt rules and
procedures governing the use of electronic signatures.
(b) To the extent of any conflict, this section prevails
over Chapter 322, Business & Commerce Code, and rules and
guidelines adopted under that chapter.
Sec. 51.9338. INTERAGENCY CONTRACTS FOR INFORMATION
RESOURCE TECHNOLOGIES. (a) In this section, "institution of
higher education" and "university system" have the meanings
assigned by Section 61.003.
(b) Section 2054.119, Government Code, does not apply to an
interagency contract for information resources technologies
between two or more institutions of higher education or between an
institution of higher education or university system and one or
more state agencies, institutions of higher education, or
university systems.
SECTION 2.04. Section 51.966, Education Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) Section 612.002, Government Code, does not apply to an
institution of higher education or university system purchasing
insurance under this section.
(d) In [As used in] this section, "governing board," [and]
"institution of higher education," and "university system" have the
meanings assigned by Section 61.003.
SECTION 2.05. Section 153.006(a), Education Code, is
amended to read as follows:
(a) In order to carry out the purposes of this chapter and to
support the activities of centers described in this chapter, to the
extent authorized by its governing board, an institution of higher
education may:
(1) enter into agreements establishing royalties,
fees, and other consideration for technology developed in whole or
part by it;
(2) accept equity interests in organizations that
license, manage, or otherwise administer rights to technology
belonging to it or under its control in exchange for such rights, in
whole or in part;
(3) accept equity interests in organizations that
license or otherwise have rights in its technology as consideration
for its providing monetary, business, scientific, or engineering
services or technical assistance;
(4) use income from the commercialization of
technology to fund the activities of the center;
(5) solicit, accept, and administer gifts, grants, and
donations;
(6) without the necessity of approval by the attorney
general under Section 402.0212, Government Code, or other law,
enter into contracts for legal services with a competent lawyer or
law firm to:
(A) prepare, file, pursue, and maintain patent
applications in the United States or foreign jurisdictions;
(B) secure copyright protection for computer
software;
(C) prepare, file, and pursue trademark and
service mark applications;
(D) pursue litigation to prevent or stop
infringement of any intellectual property rights of the
institution; or
(E) handle any other legal matter related to the
operation and activities of the center; and
(7) enter into such other business arrangements as may
be appropriate for achieving the purposes of this chapter.
SECTION 2.06. Section 402.0212, Government Code, is amended
by adding Subsection (d) to read as follows:
(d) The attorney general may review and approve a standard
form contract of a university system or institution of higher
education for the procurement of legal services to be provided to
the system or institution. If the attorney general approves a
standard form, the attorney general is not required under this
section to approve individual contracts that are in substantial
compliance with the approved form or to approve invoices under
those contracts. The attorney general may conduct an annual review
of the approved standard form and any signed contracts using that
form, and for that purpose may collect a fee, established in
consultation with the university system or institution of higher
education, reasonably estimated to cover the expenses of that
review. In this subsection, "institution of higher education" and
"university system" have the meanings assigned by Section 61.003,
Education Code.
SECTION 2.07. Subchapter C, Chapter 791, Government Code,
is amended by adding Section 791.035 to read as follows:
Sec. 791.035. CONTRACTS WITH INSTITUTIONS OF HIGHER
EDUCATION OR UNIVERSITY SYSTEMS. (a) A local government and an
institution of higher education or university system may contract
with one another to perform any governmental functions and
services. If the terms of the contract provide for payment based on
cost recovery, any law otherwise requiring competitive procurement
does not apply to the functions and services covered by the
contract.
(b) In this section, "institution of higher education" and
"university system" have the meanings assigned by Section 61.003,
Education Code.
SECTION 2.08. Section 2107.003(e), Government Code, is
amended to read as follows:
(e) Except as provided by Section 2254.110, a [A] person
awarded a contract under Subsection (b), (c), or (c-1) may not file
suit or otherwise pursue judicial action to collect the obligation
owed in a court of this state or another state on behalf of the
contracting state agency.
SECTION 2.09. Section 2155.078(n), Government Code, is
amended to read as follows:
(n) This section does not apply to an institution [a medical
and dental unit] to which Section 51.9335, Education Code, applies
or to an institution to which Section 73.115, Education Code,
applies.
SECTION 2.10. Section 2254.102(c), Government Code, is
amended to read as follows:
(c) This subchapter does not apply to a contract:
(1) with a state agency to collect an obligation under
Section 2107.003(b), (c), or (c-1), except as provided by Section
2254.110; or
(2) for legal services entered into by an institution
of higher education under Section 153.006, Education Code.
SECTION 2.11. Subchapter C, Chapter 2254, Government Code,
is amended by adding Section 2254.110 to read as follows:
Sec. 2254.110. COLLECTION ACTION BY INSTITUTION OF HIGHER
EDUCATION. (a) In this section, "institution of higher education"
has the meaning assigned by Section 61.003.
(b) A person awarded a contract under Chapter 2107 by an
institution of higher education for a routine collection matter may
file suit or otherwise pursue judicial action to collect the
obligation owed in a court of this state or another state on behalf
of the institution.
SECTION 2.12. Section 31.401, Natural Resources Code, is
amended by amending Subsections (a) and (d) and adding Subsection
(b-1) to read as follows:
(a) Except as otherwise provided by Subsection (b-1), the
[The] land office shall review and must approve any contract
entered into by a state agency for the acquisition of an annual
average of 100 MCF per day or more of natural gas used to meet its
energy requirements.
(b-1) A contract described by Subsection (a) entered into by
an institution of higher education or university system is not
required to be reviewed or approved by the land office, but on
request of the land office the institution or system shall provide a
copy of the executed contract to the land office.
(d) In this section:
(1) "Institution of higher education" and "university
system" have the meanings assigned by Section 61.003, Education
Code.
(2) "State [, "state] agency" has the meaning assigned
by Subchapter A, Chapter 572, Government Code.
SECTION 2.13. Section 36.351, Utilities Code, is amended by
adding Subsection (h) to read as follows:
(h) This section has been in full force and effect from
original enactment. Section 63, Chapter 405, Acts of the 76th
Legislature, Regular Session, 1999, did not provide for the
expiration of this section and does not excuse a transmission and
distribution company, or any other electric utility, from providing
the discounts required by this section.
SECTION 2.14. Section 58.251, Utilities Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) "Institution of higher education" has the meaning
assigned by Section 61.003, Education Code.
SECTION 2.15. Section 58.258(a), Utilities Code, is amended
to read as follows:
(a) Notwithstanding the pricing flexibility authorized by
this subtitle, an electing company's rates for private network
services may not be increased before January 1, 2012, or, for
services provided to an institution of higher education, before
January 1, 2023. However, an electing company may increase a rate
in accordance with the provisions of a customer specific contract.
SECTION 2.16. Section 58.268, Utilities Code, is amended to
read as follows:
Sec. 58.268. CONTINUATION OF OBLIGATION. Notwithstanding
any other provision of this title, an electing company shall
continue to comply with this subchapter until January 1, 2012, or,
with respect to services provided to an institution of higher
education, until September 1, 2023, regardless of:
(1) the date the company elected under this chapter;
or
(2) any action taken in relation to that company under
Chapter 65.
SECTION 2.17. Section 59.071, Utilities Code, is amended by
adding Subdivision (1-a) to read as follows:
(1-a) "Institution of higher education" has the
meaning assigned by Section 61.003, Education Code.
SECTION 2.18. Section 59.077(a), Utilities Code, is amended
to read as follows:
(a) Notwithstanding the pricing flexibility authorized by
this subtitle, an electing company's rates for private network
services may not be increased before January 1, 2012, or, for
services provided to an institution of higher education, before
September 1, 2023.
SECTION 2.19. Section 59.083, Utilities Code, is amended to
read as follows:
Sec. 59.083. CONTINUATION OF OBLIGATION. Notwithstanding
any other provision of this title, an electing company shall
continue to comply with this subchapter until January 1, 2012, or,
with respect to services provided to an institution of higher
education, before September 1, 2023, regardless of:
(1) the date the company elected under this chapter;
or
(2) any action taken in relation to that company under
Chapter 65.
ARTICLE 3. HUMAN RESOURCES
SECTION 3.01. Subchapter Z, Chapter 51, Education Code, is
amended by adding Section 51.9611 to read as follows:
Sec. 51.9611. PAYROLL DEDUCTIONS FOR EMPLOYEES OF
UNIVERSITY SYSTEM OR INSTITUTION OF HIGHER EDUCATION. (a) In this
section, "institution of higher education" and "university system"
have the meanings assigned by Section 61.003.
(b) The governing board of a university system, or of an
institution of higher education that is not a component institution
of a university system, may authorize employees of the system or
institution, as applicable, to elect a payroll deduction for any
purpose that the governing board determines serves a public purpose
and benefits employees. The board may adopt policies and
procedures governing payroll deductions under this section. A
payroll deduction under this section is in addition to payroll
deductions authorized by other law.
(c) A payroll deduction under this section must be at the
written request of the employee, and the request must state the
amount to be deducted and the entity to which the deducted amount is
to be transferred. A payroll deduction is in effect until revoked
in writing by the employee, but the policies and procedures of the
system or institution, as applicable, may provide for enrollment
periods.
(d) A system or institution may collect an administrative
fee to cover the costs of making a deduction.
SECTION 3.02. Section 1601.004(a), Insurance Code, is
amended to read as follows:
(a) In this chapter, "dependent," with respect to an
individual eligible to participate in the uniform program under
Section 1601.101 or 1601.102, means the individual's:
(1) spouse;
(2) unmarried child younger than 25 years of age; and
(3) child of any age who the system determines lives
with or has the child's care provided by the individual on a regular
basis if the child is mentally retarded or physically incapacitated
to the extent that the child is dependent on the individual for care
or support, as determined by the system, and:
(A) if the child is at least 25 years of age, the
child's coverage under this chapter has not lapsed, and the child
was enrolled as a participant in the health benefits coverage under
the uniform program on the date of the child's 25th birthday; or
(B) if the child is a child of an individual
eligible to participate as an employee under Section 1601.101, at
the time of the individual's initial enrollment in health benefits
coverage under the uniform program the child is at least 25 years of
age and is enrolled in comparable coverage, as determined by the
system, under the individual's previous health benefits coverage.
SECTION 3.03. Subchapter C, Chapter 1601, Insurance Code,
is amended by adding Section 1601.111 to read as follows:
Sec. 1601.111. PROGRAMS PROMOTING DISEASE PREVENTION,
WELLNESS, AND HEALTH. A system may establish premium discounts,
surcharges, rebates, or a revision in otherwise applicable
copayments, coinsurance, or deductibles, or any combination of
those incentives, for an individual who participates in
system-approved programs promoting disease prevention, wellness,
and health.
ARTICLE 4. REAL ESTATE AND CONSTRUCTION
SECTION 4.01. Section 51.951(a), Education Code, is amended
to read as follows:
(a) Information related to the development, location,
purchase price, or sale price of real property developed,
purchased, or sold by or for an institution of higher education, as
defined by Section 61.003, including a contract provision related
to the development, purchase, or sale of the property, is
confidential and exempt from disclosure under Chapter 552,
Government Code, until all deeds for the property that are
applicable to the transaction or series of related transactions are
executed and until all substantive performance or executor
requirements of applicable contracts have been satisfied [a deed
for the property is executed]. Information that is confidential
and exempted from disclosure under this subsection includes an
appraisal, completed report, evaluation, investigation conducted
for the purpose of locating or determining the purchase or sale
price of the property, or any report prepared in anticipation of
purchasing or selling real property.
SECTION 4.02. Sections 61.0572(b), (d), and (e), Education
Code, are amended to read as follows:
(b) The board shall:
(1) determine formulas for space utilization in all
educational and general buildings and facilities at institutions of
higher education;
(2) devise and promulgate methods to assure maximum
daily and year-round use of educational and general buildings and
facilities, including but not limited to maximum scheduling of day
and night classes and maximum summer school enrollment;
(3) consider plans for selective standards of
admission when institutions of higher education approach capacity
enrollment;
(4) require, and assist the public technical
institutes, public senior colleges and universities, medical and
dental units, and other agencies of higher education in developing
long-range campus master plans for campus development; and
(5) [endorse, or delay until the next succeeding
session of the legislature has the opportunity to approve or
disapprove, the proposed purchase of any real property by an
institution of higher education, except a public junior college;
[(6) develop and publish standards, rules, and
regulations to guide the institutions and agencies of higher
education in making application for the approval of new
construction and major repair and rehabilitation of all buildings
and facilities regardless of proposed use; and
[(7)] ascertain that the standards and specifications
for new construction, repair, and rehabilitation of all buildings
and facilities are in accordance with Article 9102, Revised
Statutes.
(d)[(1)] The board[, for purposes of state funding,] may
review purchases of [and approve as an addition to an institution's
educational and general buildings and facilities inventory any]
improved real property added to an institution's educational and
general buildings and facilities inventory [acquired by gifts or
lease-purchase only if:
[(A) the institution requests to place the
improved real property on its educational and general buildings and
facilities inventory; and
[(B) the value of the improved real property is
more than $300,000 at the time the institution requests the
property to be added to the educational and general buildings and
facilities inventory.
[(2) This subsection does not apply to gifts, grants,
or lease-purchase arrangements intended for clinical or research
facilities.
[(e) Approval of the board is not required to acquire real
property that is financed by bonds issued under Section 55.17(e)(3)
or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174,
55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
55.17721, except that the board shall review all real property to be
financed by bonds issued under those sections] to determine whether
the property meets the standards adopted by the board for cost,
efficiency, and space use, but the purchase of the improved real
property is not contingent on board approval. If the property does
not meet those standards, the board shall notify the governor, the
lieutenant governor, the speaker of the house of representatives,
and the Legislative Budget Board.
SECTION 4.03. Sections 61.058(a) and (b), Education Code,
are amended to read as follows:
(a) This section does not apply to [Except as provided by
Subsection (b) of this section, the board shall approve or
disapprove all new construction and repair and rehabilitation of
all buildings and facilities at institutions of higher education
financed from any source provided that:
[(A) the board's consideration and determination
shall be limited to the purpose for which the new or remodeled
buildings are to be used to assure conformity with approved space
utilization standards and the institution's approved programs and
role and mission if the cost of the project is not more than
$4,000,000, but the board may consider cost factors and the
financial implications of the project to the state if the total cost
is in excess of $4,000,000;
[(B) the requirement of approval for new
construction applies only to projects the total cost of which is in
excess of $4,000,000;
[(C) the requirement of approval for major repair
and rehabilitation of buildings and facilities applies only to a
project the total cost of which is more than $4,000,000;
[(D) the requirement of approval or disapproval
by the board does not apply to any new construction or major repair
and rehabilitation project that is specifically approved by the
legislature;
[(E) the requirement of approval by the board
does not apply to a junior college's construction, repair, or
rehabilitation financed entirely with funds from a source other
than the state, including funds from ad valorem tax receipts of the
college, gifts, grants, and donations to the college, and student
fees; and
[(F) the requirement of approval by the board
does not apply to construction, repair, or rehabilitation of
privately owned buildings and facilities located on land leased
from an institution of higher education if the construction,
repair, or rehabilitation is financed entirely from funds not under
the control of the institution, and provided further that:
[(i) the] buildings and facilities that are
to be used exclusively for auxiliary enterprises[;] and
[(ii) the buildings and facilities] will
not require appropriations from the legislature for operation,
maintenance, or repair [unless approval by the board has been
obtained].
(b) The [This section does not apply to construction,
repair, or rehabilitation financed by bonds issued under Section
55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174,
55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
55.17721, except that the] board may [shall] review all
construction, repair, or rehabilitation of buildings and
facilities at institutions of higher education [to be financed by
bonds issued under those sections] to determine whether the
construction, rehabilitation, or repair meets the standards
adopted by board rule for cost, efficiency, and space use, but the
construction, rehabilitation, or repair is not contingent on board
approval. If the construction, rehabilitation, or repair does not
meet those standards, the board shall notify the governor, the
lieutenant governor, the speaker of the house of representatives,
and the Legislative Budget Board.
SECTION 4.04. Section 2166.302(c), Government Code, is
amended to read as follows:
(c) Subsection (a) does not apply to a project constructed
by and for the Texas Department of Transportation or an institution
of higher education or university system. In this subsection,
"institution of higher education" and "university system" have the
meanings assigned by Section 61.003, Education Code.
SECTION 4.05. Section 2166.403(c-1), Government Code, is
amended to read as follows:
(c-1) For a project constructed by and for a state
institution of higher education, the [governing body of the]
institution shall, during the planning phase of the proposed
construction for the project, verify [in an open meeting] the
economic feasibility of incorporating into the building's design
and proposed energy system alternative energy devices for space
heating and cooling functions, water heating functions, electrical
load functions, and interior lighting functions. The [governing
body of the] institution shall determine the economic feasibility
of each function listed in this subsection by comparing the
estimated cost of providing energy for the function, based on the
use of conventional design practices and energy systems, with the
estimated cost of providing energy for the function, based on the
use of alternative energy devices, during the economic life of the
building.
SECTION 4.06. Section 2167.001(b), Government Code, is
amended to read as follows:
(b) This chapter does not apply to:
(1) radio antenna space;
(2) residential space for a Texas Department of Mental
Health and Mental Retardation program;
(3) residential space for a Texas Youth Commission
program;
(4) space to be used for less than one month for
meetings, conferences, conventions, seminars, displays,
examinations, auctions, or similar purposes;
(5) district office space for members of the
legislature;
(6) space used by the Texas Workforce Commission;
(7) residential property acquired by the Texas
Department of Housing and Community Affairs or the Texas State
Affordable Housing Corporation that is offered for sale or rental
to individuals and families of low or very low income or families of
moderate income;
(8) except as provided by Section 2167.007, [classroom
and instructional] space for a university system or [an]
institution of higher education; or
(9) space leased by the Texas Veterans Commission to
administer the veterans employment services program.
SECTION 4.07. Section 33.06, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) If the ownership interest of an individual entitled to
defer collection of a tax under this section is a life estate, the
individual must submit with the affidavit required by Subsection
(b) the written consent to the deferral of any university system or
institution of higher education that is an owner of a remainder
interest in the property on which taxes are to be deferred. In the
absence of that consent, a lien for taxes attaches only to the life
estate of the life tenant. In this subsection, "institution of
higher education" and "university system" have the meanings
assigned by Section 61.003, Education Code. This subsection does
not apply to a deferral for which the individual entitled to the
deferral filed the affidavit required by Subsection (b) before
September 1, 2011.
ARTICLE 5. BOARD APPOINTMENTS
SECTION 5.01. Section 552.123, Government Code, is amended
to read as follows:
Sec. 552.123. EXCEPTION: NAME OF APPLICANT FOR CHIEF
EXECUTIVE OFFICER OF INSTITUTION OF HIGHER EDUCATION. The name of
an applicant for the position of chief executive officer of an
institution of higher education, and other information that would
tend to identify the applicant, is excepted from the requirements
of Section 552.021, except that the governing body of the
institution must give public notice of the name or names of the
finalists being considered for the position at least 21 days before
the date of the meeting at which final action or vote is to be taken
on the employment of the person.
SECTION 5.02. Section 95.006(b), Health and Safety Code, is
amended to read as follows:
(b) The advisory committee is composed of:
(1) the following representatives appointed by the
executive director of the office:
(A) one representative of the office;
(B) one representative of the Texas Education
Agency;
(C) one representative of the Texas Pediatric
Society;
(D) one representative of the American Diabetes
Association;
(E) [one representative who is a member of the
board of regents of The University of Texas--Pan American;
[(F)] one school nurse representative from an
urban school located within the boundaries of a regional education
service center;
(F) [(G)] one parent or guardian of a child who
resides within the boundaries of a regional education service
center; and
(G) [(H)] one person with knowledge and
experience in health care in school settings; and
(2) the following representatives appointed by the
chairman of the council:
(A) one representative of the council;
(B) one representative of the Texas Medical
Association;
(C) one school district administrator
representative from a school district located within the boundaries
of a regional education service center;
(D) one school principal representative from a
school district located within the boundaries of a regional
education service center; and
(E) one school nurse representative from a rural
school located within the boundaries of a regional education
service center.
SECTION 5.03. Sections 2.03(a) and (c), Chapter 670, Acts
of the 72nd Legislature, 1991 (Article 4477-7j, Vernon's Texas
Civil Statutes), are amended to read as follows:
(a) On or after the effective date of this Act, the
Commissioners Court of Gaines County shall appoint three persons,
the governing body of the city of Seminole shall appoint two
persons, and the governing body of the city of Seagraves shall
appoint two persons to serve as initial directors of the district.
The four persons appointed by the governing bodies of the cities of
Seminole and Seagraves shall represent the municipalities within
the county, and the three persons appointed by the Commissioners
Court of Gaines County shall represent the unincorporated areas of
the county. [In addition, the board of regents of The University of
Texas System shall appoint one person to serve as an ex-officio,
nonvoting director of the district.]
(c) The Commissioners Court of Gaines County and the
governing bodies of the cities of Seminole and Seagraves shall each
appoint one initial director to serve a term expiring on May 1 of
the first year after the year in which the original appointment is
made. In addition, the Commissioners Court of Gaines County shall
appoint two initial directors and the governing bodies of the
cities of Seminole and Seagraves shall each appoint one initial
director to serve terms expiring on May 1 of the second year after
the year in which the original appointment is made. [The initial
ex-officio member serves a term expiring on May 1 of the second year
after the year in which the original appointment is made.]
Successor directors serve two-year terms.
SECTION 5.04. Section 3.01(a), Chapter 670, Acts of the
72nd Legislature, 1991 (Article 4477-7j, Vernon's Texas Civil
Statutes), is amended to read as follows:
(a) The district is governed by a board of directors
composed of seven voting members [and one ex-officio nonvoting
member] who are appointed as provided by this Act. However, the
district shall change to a system of electing the voting directors
if:
(1) the Commissioners Court of Gaines County and the
governing bodies of the cities of Seminole and Seagraves each pass a
resolution calling for the election of the directors; or
(2) the board receives a petition signed by at least
150 registered voters of Gaines County calling for the election of
the directors.
ARTICLE 6. REPORTS; RECORDS; AUDITS; NOTICES
SECTION 6.01. Section 51.403(d), Education Code, is amended
to read as follows:
(d) For purposes of this subsection, "small classes" [Each
institution shall file with its governing board and the
coordinating board a small class report, excluding individual
instruction courses, indicating department, course number, title
of course, and the name of the instructor. "Small classes," for the
purpose of this report,] are undergraduate-level courses with less
than 10 registrations, and graduate-level courses with less than 5
registrations. No small classes shall be offered in any
institution except as authorized by the appropriate governing
board, within the guidelines established by the Coordinating Board.
SECTION 6.02. Subchapter H, Chapter 51, Education Code, is
amended by adding Section 51.406 to read as follows:
Sec. 51.406. EXPIRATION OF CERTAIN REPORTING REQUIREMENTS
APPLICABLE TO INSTITUTIONS OF HIGHER EDUCATION AND UNIVERSITY
SYSTEMS. (a) In this section, "university system" has the meaning
assigned by Section 61.003.
(b) To the extent that any of the following laws require
reporting by a university system or an institution of higher
education, a university system or institution of higher education
is not required to make the report on or after September 1, 2013,
unless legislation enacted by the 83rd Legislature that becomes law
expressly requires the institution or system to make the report:
(1) Section 7.109;
(2) Section 33.083;
(3) Sections 51.005(a), (b), and (c);
(4) Section 51.0051;
(5) Section 51.4032;
(6) Section 56.039;
(7) Section 59.07;
(8) Section 61.051(j);
(9) Section 130.086;
(10) Section 325.007, Government Code;
(11) Section 669.003, Government Code;
(12) Section 2005.007, Government Code;
(13) Section 2052.103, Government Code;
(14) Section 2054.097, Government Code;
(15) Section 2101.011, Government Code;
(16) Section 2102.009, Government Code;
(17) Chapter 2114, Government Code;
(18) Section 2161.123, Government Code;
(19) Section 2205.041, Government Code;
(20) Section 21.454, Labor Code; and
(21) Section 21.504, Labor Code.
(c) A rule or policy of a state agency, including the Texas
Higher Education Coordinating Board, in effect on June 1, 2011,
that requires reporting by a university system or an institution of
higher education has no effect on or after September 1, 2013, unless
the rule or policy is affirmatively and formally readopted before
that date by formal administrative rule published in the Texas
Register and adopted in compliance with Chapter 2001, Government
Code. This subsection does not apply to:
(1) a rule or policy for which the authorizing statute
is listed in Subsection (b);
(2) a rule or policy for which the authorizing statute
is repealed on or before September 1, 2013, by legislation enacted
by the legislature that becomes law; or
(3) a report required under any of the following laws:
(A) Section 51.3062;
(B) Section 51.402;
(C) Section 51.403;
(D) Section 61.051(k); or
(E) Section 61.059.
SECTION 6.03. Section 61.051(h), Education Code, is amended
to read as follows:
(h) The board shall make continuing studies of the needs of
the state for research and designate the institutions of higher
education to perform research as needed. The board shall also
maintain an inventory of all institutional and programmatic
research activities being conducted by the various institutions,
whether state-financed or not. Once a year, on dates prescribed by
the board, each institution of higher education shall report to the
board all research conducted at that institution during the last
preceding year. The submission by an institution of the
institution's response to the National Science Foundation's annual
Higher Education Research and Development Survey satisfies the
requirements of this section. All reports required by this
subsection shall be made subject to the limitations imposed by
security regulations governing defense contracts for research.
SECTION 6.04. Section 61.0582, Education Code, is amended
by adding Subsection (f) to read as follows:
(f) This section does not apply to a university system that
maintains an ongoing system-wide capital improvement program
approved by the system's board of regents.
SECTION 6.05. Section 401.042, Government Code, is amended
by adding Subsection (c) to read as follows:
(c) In consultation with public institutions of higher
education, the offices of the governor and the Legislative Budget
Board shall review the forms for higher education legislative
appropriations requests to identify opportunities to improve
efficiency, provide better transparency of funding sources,
eliminate unnecessary or duplicative requirements, and otherwise
reduce the cost or difficulty of providing information related to
appropriations requests.
SECTION 6.06. Subchapter L, Chapter 403, Government Code,
is amended by adding Section 403.2715 to read as follows:
Sec. 403.2715. UNIVERSITY SYSTEMS AND INSTITUTIONS OF
HIGHER EDUCATION. (a) In this section, "institution of higher
education" and "university system" have the meanings assigned by
Section 61.003, Education Code.
(b) Except as provided by this section, this subchapter does
not apply to a university system or institution of higher
education.
(c) A university system or institution of higher education
shall account for all personal property as defined by the
comptroller under Section 403.272. At all times, the property
records of a university system or institution of higher education
must accurately reflect the personal property possessed by the
system or institution.
(d) The chief executive officer of each university system or
institution of higher education shall designate one or more
property managers. The property manager shall maintain the records
required and be the custodian of all personal property possessed by
the system or institution.
(e) Sections 402.273(h), 403.275, and 403.278 apply to a
university system or institution of higher education.
SECTION 6.07. Section 2054.1125, Government Code, is
amended by adding Subsection (c) to read as follows:
(c) This section does not apply to a university system or
institution of higher education that adopts procedures for
notifying affected individuals of a breach of information system
security. In this subsection, "institution of higher education"
and "university system" have the meanings assigned by Section
61.003, Education Code.
SECTION 6.08. Section 2101.0115(d), Government Code, is
amended by adding Subdivision (4) to read as follows:
(4) "Institution of higher education" and "university
system" have the meanings assigned by Section 61.003, Education
Code.
SECTION 6.09. Section 2101.0115, Government Code, is
amended by adding Subsection (e) to read as follows:
(e) This section does not apply to an institution of higher
education or university system.
SECTION 6.10. Section 2254.028(c), Government Code, is
amended to read as follows:
(c) Subsection (a) [(a)(3)] does not apply to a major
consulting services contract to be entered into by an institution
of higher education other than a public junior college if the
institution includes in the invitation published under Section
2254.029 a finding by the chief executive officer of the
institution that the consulting services are necessary and an
explanation of that finding.
SECTION 6.11. Section 2254.0301, Government Code, is
amended to read as follows:
Sec. 2254.0301. CONTRACT NOTIFICATION. (a) A state agency
shall provide written notice to the Legislative Budget Board of a
contract for consulting services if the amount of the contract,
including an amendment, modification, renewal, or extension of the
contract, exceeds $14,000. The notice must be on a form prescribed
by the Legislative Budget Board and filed not later than the 10th
day after the date the entity enters into the contract.
(b) This section does not apply to a university system or
institution of higher education. In this subsection, "institution
of higher education" and "university system" have the meanings
assigned by Section 61.003, Education Code.
SECTION 6.12. Section 388.005(f), Health and Safety Code,
is amended to read as follows:
(f) This section does not apply to a state agency or an
institution of higher education that the State Energy Conservation
Office determines [that], before September 1, 2007, adopted a plan
for conserving energy under which the agency or institution
established a percentage goal for reducing the consumption of
electricity. The exemption provided by this section applies only
while the agency or institution has an energy conservation plan in
effect and only if the agency or institution submits reports on the
conservation plan each year [calendar quarter] to the governor, the
Legislative Budget Board, and the State Energy Conservation Office.
SECTION 6.13. Section 21.552, Labor Code, is amended by
adding Subsection (c) to read as follows:
(c) This section does not apply to a university system or
institution of higher education, except to the extent required by
federal law. In this subsection, "institution of higher education"
and "university system" have the meanings assigned by Section
61.003, Education Code.
SECTION 6.14. Section 412.053, Labor Code, is amended by
adding Subsection (c) to read as follows:
(c) This section does not apply to an institution of higher
education or university system. In this subsection, "institution
of higher education" and "university system" have the meanings
assigned by Section 61.003, Education Code.
SECTION 6.15. Section 31.153(d), Natural Resources Code, is
amended to read as follows:
(d) Each state agency, other than an institution of higher
education, annually at the time set by the division, shall furnish
the Texas Historical Commission with a photograph and information
that specifies and identifies the age of each building:
(1) that was acquired by the agency after the date of
the preceding annual submission and that is at least 45 years old on
the date of the current submission; or
(2) that is possessed by the agency and has become 45
years old since the date the information was previously submitted.
ARTICLE 7. REPEALER
SECTION 7.01. (a) The following laws are repealed
effective September 1, 2011:
(1) Section 51.4033, Education Code;
(2) Section 55.03(b), Education Code;
(3) Section 61.058(c), Education Code;
(4) Section 61.0815, Education Code;
(5) Section 61.086, Education Code;
(6) Section 62.098, Education Code;
(7) Section 74.008(f), Education Code;
(8) Section 830.006, Government Code;
(9) Section 1434.054, Government Code;
(10) Section 2107.005, Government Code;
(11) Section 412.042(c), Labor Code; and
(12) Section 3.01(c), Chapter 670, Acts of the 72nd
Legislature, 1991 (Article 4477-7j, Vernon's Texas Civil
Statutes).
(b) The following laws are repealed effective September 1,
2013:
(1) Section 51.859, Education Code;
(2) Section 51.917(e), Education Code;
(3) Section 51.968(d), Education Code;
(4) Section 54.203(h), Education Code;
(5) Section 56.034(c), Education Code;
(6) Section 56.079(j), Education Code;
(7) Section 61.066(c), Education Code;
(8) Section 61.806(f), Education Code;
(9) Section 61.857, Education Code;
(10) Section 61.9626, Education Code;
(11) Section 61.9627(b), Education Code;
(12) Section 63.003(d), Education Code;
(13) Section 63.004, Education Code;
(14) Section 63.103, Education Code;
(15) Section 86.52(m), Education Code;
(16) Section 88.210, Education Code;
(17) Section 106.54, Education Code;
(18) Section 142.005, Education Code;
(19) Section 143.006, Education Code;
(20) Section 147.005, Education Code;
(21) Section 148.005, Education Code; and
(22) Section 153.008, Education Code.
ARTICLE 8. EFFECTIVE DATE
SECTION 8.01. 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.