S.B. No. 5

	AN ACT
	relating to the administration and business affairs of public
	institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1. FINANCIAL MANAGEMENT
	SECTION 1.01.  Section 51.003, Education Code, is amended by
	amending Subsection (b) and adding Subsection (f) 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].
	(f)  Notwithstanding any other provision of this section,
	the governing board of each institution may maintain unsecured
	deposits in a foreign bank as necessary to support the
	institution's academic and research operations in the foreign
	country in which the bank is located, provided that no appropriated
	or tuition funds other than those collected from students enrolled
	in the affected programs are deposited. The foreign bank must:
	(1)  be licensed and supervised by a central bank;
	(2)  be audited annually by an accounting firm that
	follows international financial reporting standards; and
	(3)  maintain a capital to total assets ratio that is
	not less than the greater of four percent or the minimum tier 1
	capital to total assets ratio required for depository institutions
	insured by the Federal Deposit Insurance Corporation.
	SECTION 1.02.  Subchapter A, Chapter 51, Education Code, is
	amended by amending Section 51.005 and adding Sections 51.010,
	51.011, and 51.012 to read as follows:
	Sec. 51.005.  REPORTS. Each institution of higher education
	[(a)   True and full accounts shall be kept by the governing board
	and by the employees of the institution of all funds collected from
	all sources and of all sums paid out and the persons to whom and the
	purposes for which the sums are paid. The governing board] shall
	prepare [annually print] a complete annual financial report as
	prescribed by Section 2101.011, Government Code [of all the sums
	collected, all expenditures, and all sums remaining on hand. The
	report shall show the true condition of all funds as of the August
	31 preceding as well as the collections and expenditures for the
	preceding year.
	[(b)     Reports under this section must be in a form approved
	jointly by the coordinating board and the comptroller. The
	accounting and classification procedures of each institution must
	be consistent with uniform procedures prescribed for that purpose
	by the coordinating board and the comptroller. The requirements
	imposed by the coordinating board and the comptroller must be
	designed to reduce paperwork and duplicative reports.
	[(c)     The governing board shall furnish one copy of the
	report each to the governor, comptroller of public accounts, state
	auditor, Texas Higher Education Coordinating Board, Legislative
	Budget Board, House Appropriations Committee, Senate Finance
	Committee, and Legislative Reference Library. A copy of the report
	shall be submitted to the comptroller by the deadline established
	by the comptroller or the General Appropriations Act as necessary
	to prepare an audited comprehensive financial report.   The
	governing board shall retain five copies of the report for
	distribution to legislators or other state officials on request].
	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.  A deposit to the unclaimed money fund
	does not affect the ownership of the amount deposited. The
	institution shall:
	(1)  adopt procedures for owners to make and receive
	payments of claims against the fund; and
	(2)  maintain a database that permits members of the
	public to search for ownership of unclaimed funds.
	(c)  The institution of higher education shall use the fund
	to pay the claims of persons establishing ownership of amounts
	transferred to the fund and shall hold and account for the unclaimed
	money fund as educational and general funds of the institution. If
	the fund balance is insufficient to pay a valid claim, the
	institution shall pay the claim from the institution's other
	educational and general funds.
	(d)  Each fiscal year, after deducting funds sufficient to
	pay anticipated expenses of and claims against the unclaimed money
	fund, the institution shall use the balance of the fund as other
	educational and general funds of the institution.
	(e)  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.
	(f)  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.
	Sec. 51.012.  PAYMENTS BY ELECTRONIC FUNDS TRANSFER OR
	ELECTRONIC PAY CARD. An institution of higher education may make
	any payment through electronic funds transfer or by electronic pay
	card.
	SECTION 1.03.  Subchapter Z, Chapter 51, Education Code, is
	amended by adding Section 51.9741 to read as follows:
	Sec. 51.9741.  INTERNET ACCESS TO FINANCIAL TRANSACTIONS.
	(a)  Each institution of higher education, as defined by Section
	61.003, shall post on the institution's Internet website a copy of
	the institution's financial transactions to the extent necessary to
	provide, for each payment drawn from money appropriated from the
	state general revenue fund or received as student tuition or fee
	payments:
	(1)  the amount of the payment;
	(2)  the date of the payment;
	(3)  a brief description of the purpose of the payment;
	and
	(4)  the name of the payee.
	(b)  An institution of higher education may comply with this
	section by providing on the institution's Internet website an
	easily noticeable direct link, the purpose of which is clearly
	identifiable, to an Internet website maintained by the comptroller
	that provides information concerning the institution that is
	similar to the information required under Subsection (a).
	SECTION 1.04.  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 1.05.  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 1.06.  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
	if:
	(1)  the institution or the university system of which
	the institution is a component has an unenhanced long-term debt
	rating of at least AA- or its equivalent; and
	(2)  the general revenue of this state is not pledged to
	the payment of the security.
	SECTION 1.07.  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 1.08.  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) and (f) and adding Subsections (g) and
	(h) to read as follows:
	(d)  Subtitle D, Title 10, Government Code, and Subchapter B,
	Chapter 2254, Government Code, do not apply to the acquisition of
	goods and services under this section, except that an institution
	of higher education must comply with any provision of those laws, or
	a rule adopted under a provision of those laws, [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 Subtitle D, Title 10 [Chapters 2155, 2156,
	2157, 2158, 2167, and 2170], Government Code.
	(f)  This section does not apply to professional services as
	defined by Section 2254.002, Government Code.  Professional
	services shall be procured in accordance with Subchapter A, Chapter
	2254, 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 Section 51.9336 to read as follows:
	Sec. 51.9336.  ELECTRONIC AND DIGITAL 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 or digital signatures to and from other persons and
	otherwise create, generate, communicate, store, process, use, and
	rely on electronic or digital signatures. The institution or
	system may adopt rules and procedures governing the use of
	electronic or digital 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.
	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(b), 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.  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 2.06.  Section 2054.008, Government Code, is amended
	by adding Subsection (c) to read as follows:
	(c)  A university system or institution of higher education
	must provide written notice to the Legislative Budget Board under
	Subsection (b) only if the cost of the major information system
	exceeds $1 million. In this subsection, "university system" has
	the meaning assigned by Section 61.003, Education Code.
	SECTION 2.07.  Subsection (n), Section 2155.078, 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.
	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
	university system or institution of higher education, as
	applicable, may provide for enrollment periods.
	(d)  A university system or institution of higher education
	may collect an administrative fee to cover the costs of making a
	deduction.
	(e)  This section does not authorize a payroll deduction for
	dues or membership fees payable to a labor union or employees
	association.
	SECTION 3.02.  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.
	SECTION 3.03.  Subsection (d), Section 1601.201, Insurance
	Code, is amended to read as follows:
	(d)  Subsection (c) does not prohibit a system from
	contributing, from money not appropriated from the general revenue
	fund, amounts in excess of the amount specified by that subsection
	for:
	(1)  an individual employed by the system in a position
	that as a condition of employment requires the individual to be
	enrolled as a student in the system in graduate level courses; or
	(2)  an individual who is a tenured faculty member with
	whom the system has entered into a phased retirement agreement
	under which the individual will work less than 40 hours a week for a
	specified period of time at the end of which the individual will
	retire.
	SECTION 3.04.  Subchapter E, Chapter 1601, Insurance Code,
	is amended by adding Section 1601.2041 to read as follows:
	Sec. 1601.2041.  EMPLOYEE DEDUCTION FOR AUTOMATIC COVERAGE.
	Each individual automatically enrolled in a uniform program under
	Section 1601.104 is considered to have authorized a deduction from
	the participant's monthly compensation in an amount equal to the
	difference between:
	(1)  the total cost of the employee's basic coverage;
	and
	(2)  the amount contributed by the system for the
	employee's basic coverage.
	ARTICLE 4. REAL ESTATE AND CONSTRUCTION
	SECTION 4.01.  Subchapter C, Chapter 61, Education Code, is
	amended by adding Section 61.0573 to read as follows:
	Sec. 61.0573.  EXPEDITED PROCESS FOR CERTAIN PROJECTS.
	(a)  In this section, "project" means the acquisition of improved
	or unimproved real property or the construction, repair, or
	rehabilitation of a building or other facility.
	(b)  Board approval of a project at an institution of higher
	education is not required under Section 61.0572 or 61.058 if the
	institution notifies the board of the project and certifies to the
	board that:
	(1)  the institution meets the current published board
	standards applicable to the institution for space need, usage
	efficiency, deferred maintenance, and critical deferred
	maintenance or the board has approved the institution's plan to
	correct any deficiencies in the institution's compliance with those
	applicable standards;
	(2)  the project meets current published board
	standards applicable to the project for cost, efficiency, and space
	use;
	(3)  the project is identified on the institution's
	campus master plan, as submitted to the board; and
	(4)  the institution has no deficiencies according to
	the board's most recent facilities audit or the board has approved
	the institution's plan to correct any such deficiencies.
	(c)  The board's staff shall promptly review a certification
	submitted under Subsection (b) and notify the institution whether
	the certification is sufficient and whether the information
	certified is consistent with the records of the board. If the staff
	review determines that the certification is sufficient and that the
	information certified is consistent with the records of the board,
	the project is considered approved by the board.
	(d)  This section does not apply to a project that is a new
	branch campus, a new off-campus educational unit, or a new higher
	education center.
	SECTION 4.02.  Subsection (c), Section 2166.302, 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 4.03.  Subsection (c-1), Section 2166.403,
	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 4.04.  Subsection (b), Section 2167.001, 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 4.05.  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 a
	deferral under this section is a life estate, a lien for the
	deferred tax attaches to the estate of the life tenant, and not to
	the remainder interest, if the owner of the remainder is an
	institution of higher education that has not consented to the
	deferral.  In this subsection, "institution of higher education"
	has the meaning 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.  Subsection (b), Section 95.006, 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.  Subsections (a) and (c), Section 2.03,
	Chapter 670, Acts of the 72nd Legislature, Regular Session, 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.  Subsection (a), Section 3.01, Chapter 670,
	Acts of the 72nd Legislature, Regular Session, 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.  Subsection (n), Section 51.3062, Education
	Code, is amended to read as follows:
	(n)  Each institution of higher education, other than a
	medical and dental unit, shall report annually to the board on the
	success of its students and the effectiveness of its Success
	Initiative.
	SECTION 6.02.  Subsection (d), Section 51.403, 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 6.03.  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)  Section 59.07;
	(4)  Section 130.086;
	(5)  Section 325.007, Government Code;
	(6)  Section 669.003, Government Code;
	(7)  Section 2005.007, Government Code;
	(8)  Section 2054.097, Government Code;
	(9)  Chapter 2114, Government Code; and
	(10)  Section 2205.041, Government 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 51.005;
	(B)  Section 51.3062;
	(C)  Section 51.402;
	(D)  Section 56.039;
	(E)  Section 61.051(k);
	(F)  Section 61.059; or
	(G)  Section 62.095(b).
	SECTION 6.04. Section 51.914, Education Code, is amended to
	read as follows:
	Sec. 51.914.  PROTECTION OF CERTAIN INFORMATION.  (a)  In
	order to protect the actual or potential value, the following
	information is [shall be] confidential and is [shall] not [be]
	subject to disclosure under Chapter 552, Government Code, or
	otherwise:
	(1)  all information relating to a product, device, or
	process, the application or use of such a product, device, or
	process, and all technological and scientific information
	(including computer programs) developed in whole or in part at a
	state institution of higher education, regardless of whether
	patentable or capable of being registered under copyright or
	trademark laws, that have a potential for being sold, traded, or
	licensed for a fee;
	(2)  any information relating to a product, device, or
	process, the application or use of such product, device, or
	process, and any technological and scientific information
	(including computer programs) that is the proprietary information
	of a person, partnership, corporation, or federal agency that has
	been disclosed to an institution of higher education solely for the
	purposes of a written research contract or grant that contains a
	provision prohibiting the institution of higher education from
	disclosing such proprietary information to third persons or
	parties; or
	(3)  the plans, specifications, blueprints, and
	designs, including related proprietary information, of a
	scientific research and development facility that is jointly
	financed by the federal government and a local government or state
	agency, including an institution of higher education, if the
	facility is designed and built for the purposes of promoting
	scientific research and development and increasing the economic
	development and diversification of this state.
	(b)  Information maintained by or for an institution of
	higher education that would reveal the institution's plans or
	negotiations for commercialization or a proposed research
	agreement, contract, or grant, or that consists of unpublished
	research or data that may be commercialized, is not subject to
	Chapter 552, Government Code, unless the information has been
	published, is patented, or is otherwise subject to an executed
	license, sponsored research agreement, or research contract or
	grant.  In this subsection, "institution of higher education" has
	the meaning assigned by Section 61.003.
	SECTION 6.05.  Section 130.152, Education Code, is amended
	to read as follows:
	Sec. 130.152.  CRITERIA FOR PROGRAMS FOR THE DISADVANTAGED.
	A junior college may develop programs to serve persons from
	backgrounds of economic or educational deprivation by submission of
	a plan based on the following criteria to the Texas Higher Education
	Coordinating Board[, Texas College and University System]:
	(1)  an instructional program that accommodates the
	different learning rates of students and compensates for prior
	economic and educational deprivation;
	(2)  an unrestricted admissions policy allowing the
	enrollment of any person 18 years of age or older with a high school
	diploma or its equivalent who can reasonably be expected to benefit
	from instruction;
	(3)  the assurance that all students, regardless of
	their differing programs of study, will be considered, known, and
	recognized as full members of the student body, provided that the
	administrative officers of a junior college may deny admission to a
	prospective student or attendance of an enrolled student if, in
	their judgment, the person [he] would not be competent to benefit
	from a program of the college, or would by the person's [his]
	presence or conduct create a disruptive atmosphere within the
	college not consistent with the statutory purposes of the college;
	(4)  [the submission of a plan for a financial aid
	program which removes to the maximum extent possible the financial
	barriers to the educational aspirations of the citizens of this
	state;
	[(5)     an annual evaluation report based on scientific
	methods and utilizing control groups wherever possible to be
	submitted to the coordinating board at the end of each school year,
	covering each remedial-compensatory course or program offered at
	the college;
	[(6)]  any other criteria consistent with the
	provisions of this subchapter specified by the coordinating board;
	and
	(5) [(7)]  a junior college must obtain approval of the
	coordinating board [Coordinating Board, Texas College and
	University System,] before offering any courses under the
	provisions of this Act.
	SECTION 6.06.  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 6.07.  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 403.273(h), 403.275, and 403.278 apply to a
	university system or institution of higher education.
	SECTION 6.08.  Subsection (d), Section 2101.0115,
	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.  Subsection (c), Section 2254.028, 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.  Subsection (f), Section 388.005, 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 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 6.14.  Subsection (d), Section 31.153, 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.  STUDENT FEE ADVISORY COMMITTEES
	SECTION 7.01.  Subchapter E, Chapter 54, Education Code, is
	amended by adding Section 54.5033 to read as follows:
	Sec. 54.5033.  STUDENT FEE ADVISORY COMMITTEE MEETINGS OPEN
	TO PUBLIC. (a) A student fee advisory committee established under
	this chapter shall conduct meetings at which a quorum is present in
	a manner that is open to the public and in accordance with
	procedures prescribed by the president of the institution.
	(b)  The procedures prescribed by the president must:
	(1)  provide for notice of the date, hour, place, and
	subject of the meeting at least 72 hours before the meeting is
	convened; and
	(2)  require that the notice be:
	(A)  posted on the Internet; and
	(B)  published in a student newspaper of the
	institution, if an issue of the newspaper is published between the
	time of the Internet posting and the time of the meeting.
	(c)  The final recommendations made by a student fee advisory
	committee must be recorded and made public.
	ARTICLE 8.  HEALTH SCIENCE CENTER
	SECTION 8.01.  Subtitle D, Title 3, Education Code, is
	amended by adding Chapter 89 to read as follows:
	CHAPTER 89.  THE TEXAS A&M UNIVERSITY SYSTEM HEALTH SCIENCE CENTER
	SUBCHAPTER A.  GENERAL PROVISIONS
	Sec. 89.001.  DEFINITIONS.  In this chapter:
	(1)  "Board" means the board of regents of The Texas A&M
	University System.
	(2)  "Health science center" means The Texas A&M
	University System Health Science Center.
	Sec. 89.002.  COMPOSITION.  (a)  The Texas A&M University
	System Health Science Center is composed of the following component
	institutions, agencies, and programs under the management and
	control of the board:
	(1)  The Texas A&M University System Health Science
	Center College of Medicine;
	(2)  The Texas A&M University System Health Science
	Center Baylor College of Dentistry;
	(3)  The Texas A&M University System Health Science
	Center School of Rural Public Health;
	(4)  The Texas A&M University System Health Science
	Center Irma Lerma Rangel College of Pharmacy;
	(5)  The Texas A&M University System Health Science
	Center College of Nursing;
	(6)  The Texas A&M University System Health Science
	Center School of Graduate Studies;
	(7)  The Texas A&M University System Health Science
	Center Institute of Biosciences and Technology;
	(8)  The Texas A&M University System Health Science
	Center Coastal Bend Health Education Center;
	(9)  The Texas A&M University System Health Science
	Center South Texas Health Center; and
	(10)  The Texas A&M University System Health Science
	Center Rural and Community Health Institute.
	(b)  The Texas A&M University System Health Science Center
	Baylor College of Dentistry may use the name "Baylor" only:
	(1)  in accordance with:
	(A)  a license agreement between the health
	science center and Baylor University; or
	(B)  other written approval from Baylor
	University; or
	(2)  as otherwise permitted by law.
	Sec. 89.003.  MANDATORY VENUE.  (a)  Venue for a suit filed
	against the health science center, any component institution,
	agency, or program of the health science center, or any officer or
	employee of the health science center is in Brazos County.
	(b)  This section does not waive any defense to or immunity
	from suit or liability that may be asserted by an entity or
	individual described by this section.
	(c)  In case of a conflict between this section and any other
	law, this section controls.
	Sec. 89.004.  EXPENDITURE OF STATE FUNDS.  The board is
	authorized to expend funds appropriated to it by the legislature
	for all lawful purposes of the health science center and its
	component institutions, agencies, and programs as well as funds
	available under the authority of Section 18, Article VII, Texas
	Constitution, for the purposes expressed in that section for the
	support of the health science center and its component
	institutions, agencies, and programs.
	[Sections 89.005-89.050 reserved for expansion]
	SUBCHAPTER B.  THE TEXAS A&M UNIVERSITY SYSTEM HEALTH SCIENCE
	CENTER IRMA LERMA RANGEL COLLEGE OF PHARMACY
	Sec. 89.051.  THE TEXAS A&M UNIVERSITY SYSTEM HEALTH SCIENCE
	CENTER IRMA LERMA RANGEL COLLEGE OF PHARMACY.  (a)  The board shall
	maintain a college of pharmacy as a component of the health science
	center.
	(b)  The college shall be known as The Texas A&M University
	System Health Science Center Irma Lerma Rangel College of Pharmacy,
	and the primary building in which the school is operated in Kleberg
	County must include "Irma Rangel" in its official name.
	SECTION 8.02.  Subdivision (5), Section 61.003, Education
	Code, is amended to read as follows:
	(5)  "Medical and dental unit" means The Texas A&M
	University System Health Science Center and its component
	institutions, agencies, and programs; The University of Texas
	Medical Branch at Galveston; The University of Texas Southwestern
	Medical Center at Dallas; The University of Texas Medical School at
	San Antonio; The University of Texas Dental Branch at Houston; The
	University of Texas M. D. Anderson Cancer Center; The University of
	Texas Graduate School of Biomedical Sciences at Houston; The
	University of Texas Dental School at San Antonio; The University of
	Texas Medical School at Houston; The University of Texas Health
	Science Center--South Texas and its component institutions, if
	established under Subchapter N, Chapter 74; the nursing
	institutions of The Texas A&M University System and The University
	of Texas System; and The University of Texas School of Public Health
	at Houston; and such other medical or dental schools as may be
	established by statute or as provided in this chapter.
	SECTION 8.03.  Section 89.003, Education Code, as added by
	this Act, applies only to an action brought against The Texas A&M
	University System Health Science Center, a component institution,
	agency, or program of that center, or an officer or employee of that
	center on or after the effective date of this Act.
	ARTICLE 9.  REPEALER
	SECTION 9.01.  (a)  The following laws are repealed
	effective September 1, 2011:
	(1)  Section 51.216, Education Code;
	(2)  Subsections (b) and (c), Section 51.403, Education
	Code;
	(3)  Section 51.4033, Education Code;
	(4)  Section 61.0815, Education Code;
	(5)  Section 61.086, Education Code;
	(6)  Subsection (c), Section 61.087, Education Code;
	(7)  Section 61.9685, Education Code;
	(8)  Section 1434.054, Government Code;
	(9)  Section 2056.011, Government Code;
	(10)  Section 2107.005, Government Code;
	(11)  Subsection (c), Section 412.042, Labor Code; and
	(12)  Subsection (c), Section 3.01, Chapter 670, Acts
	of the 72nd Legislature, Regular Session, 1991 (Article 4477-7j,
	Vernon's Texas Civil Statutes).
	(b)  The following provisions of the Education Code are
	repealed effective September 1, 2013:
	(1)  Section 51.859;
	(2)  Subsection (e), Section 51.917;
	(3)  Subsection (d), Section 51.968;
	(4)  Subsection (h), Section 54.203;
	(5)  Subsection (c), Section 56.034;
	(6)  Subsection (j), Section 56.079;
	(7)  Section 61.0582;
	(8)  Subsection (c), Section 61.066;
	(9)  Subsection (d), Section 63.003;
	(10)  Section 63.004;
	(11)  Section 63.103;
	(12)  Subsection (m), Section 86.52;
	(13)  Section 88.210;
	(14)  Section 106.54;
	(15)  Section 142.005;
	(16)  Section 143.006;
	(17)  Section 147.005;
	(18)  Section 148.005; and
	(19)  Section 153.008.
	SECTION 9.02.  The following are repealed:
	(1)  Subchapters D, F, G, and H, Chapter 86, Education
	Code; and
	(2)  Subchapter I, Chapter 87, Education Code.
	SECTION 9.03.  (a)  This section governs a conflict between
	this Act and any other Act of the 82nd Legislature, Regular Session,
	2011, without regard to the relative dates of enactment.
	(b)  If this Act and any other Act repeal the same statute,
	the earlier effective date of repeal controls.
	(c)  If this Act amends a statute that any other Act repeals,
	the repeal controls.
	ARTICLE 10. EFFECTIVE DATE
	SECTION 10.01.  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.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 5 passed the Senate on
	May 10, 2011, by the following vote: Yeas 30, Nays 1; and that the
	Senate concurred in House amendments on May 27, 2011, by the
	following vote: Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 5 passed the House, with
	amendments, on May 19, 2011, by the following vote: Yeas 136,
	Nays 0, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor