BILL ANALYSIS
C.S.H.B. 420
By: Ogden
03-06-95
Committee Report (Substituted)
BACKGROUND
In Texas, recent problems with the governing boards of institutions
of higher education has demonstrated a need to address ambiguities
in current statute.
PURPOSE
H.B. 420, as substituted, amends the Education Code in several
ways. First, it sets standards for the conduct of governing board
members. Secondly, it allows students to be exempted from Section
51.306 if the governing board sets admission standards at a level
sufficient to ensure that at least 95% of the students admitted to
the institution are prepared to do college-level work. It requires
regents to hold a public hearing before increasing tuition and
fees. Furthermore, it establishes a joint select committee to
conduct a study to consider: the organization of the state's
general academic institutions and university systems that include
one or more institutions; transferring of the Texas Higher
Education Coordinating Board's duties to other state agencies; and
duties, if any, the Texas Higher Education Coordinating Board
should retain following the transfer.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency, or institution.
SECTION BY SECTION ANALYSIS
ARTICLE 1.
ADMISSION STANDARDS OF AND TESTING AND REMEDIAL EDUCATION BY
GENERAL ACADEMIC TEACHING INSTITUTIONS AND UNIVERSITY SYSTEMS.
SECTION 1.01. Amends Chapter 51 F, Education Code, by amending
Subsection (a) and adding Subsection (q) to read as follows:
Sec. 51.306. TESTING AND REMEDIAL COURSEWORK. (a) States
that "general academic teaching institution," "institution of
higher education," and "university system" have the meanings
assigned by Section 61.003 of this code.
Sec. 51.306 (q). Exempts students who enter a general
academic teaching institution of which the governing board has set
campus admission standards for that institution at a level
sufficient to ensure that at least 95 percent of the students
admitted are prepared to do college-level work when admitted.
SECTION 1.02. Amends Chapter 51 F, Education Code, by amending
Section 51.3061, Subsection (a) and adding Subsection (f) to read
as follows:
Sec. 51.3061. TESTING AND REMEDIAL COURSEWORK FOR DEAF
STUDENTS. (a) States that "general academic teaching
institution," "institution of higher education," and "university
system" have the meanings assigned by Section 61.003 of this code.
Sec. 51.3061 (f). This section does not apply to a student
who enters a general academic teaching institution of which the
governing board has set campus admission standards for that
institution as provided by Section 51.352 (g).
ARTICLE 2.
LIMITATIONS ON GOVERNING BOARDS OF GENERAL ACADEMIC TEACHING
INSTITUTIONS AND UNIVERSITY SYSTEMS.
SECTION 2.01. Amends Chapter 51, Education Code, by adding
Subchapter R and Sections 51.731 through 51.740 to read as follows:
SUBCHAPTER R.
LIMITATIONS ON GOVERNING BOARDS OF GENERAL ACADEMIC TEACHING
INSTITUTIONS AND UNIVERSITY SYSTEMS.
Sec. 51.731. APPLICATION. Applies to the governing board of
each general academic teaching institution and university system.
Sec. 51.732. DEFINITIONS. Defines "general academic teaching
institution" and "university system" assigned by Section 61.003.
Sec. 51.733. LIMITATION ON EXPENDITURES BY GOVERNING BOARD.
Limits expenditures by governing board to those specified in the
appropriations bill and that the board's expenditures may not
exceed that amount except for expenditures authorized under the
state's budget execution authority by the governor and the
Legislative Budget Board. A board member may spend money on his or
her own behalf.
Sec. 51.734. NAMING OF BUILDING OR FACILITY BY GOVERNING
BOARD. Prohibits a governing board from naming a building or
facility in honor of a member of the board or a relative of a
member of the board until 4 years after the member leaves the
board.
Sec. 51.735. EMPLOYMENT OF MEMBER OF GOVERNING BOARD BY
INSTITUTION OR SYSTEM. Prohibits the employment of a governing
board member or a relative (within the first degree of
consanguinity) by an institution or system in an administrative
position until 4 years after the member leaves the board, or as a
faculty member until 1 year after the member leaves the board.
Sec. 51.736. CONTRACTING WITH MEMBER OF GOVERNING BOARD BY
INSTITUTION OR SYSTEM. Prohibits an institution or system from
contracting with a member of their governing board, a relative of
a member of the board or a business entity in which a member of the
board or a relative has a substantial interest until 4 years after
the member has left the board. Substantial interest is defined as
5% of the stock or fair market value of a company or $5,000 of the
fair market value of the company.
Sec. 51.737. PURCHASE AND CONSUMPTION OF ALCOHOLIC BEVERAGES.
(a) Authorizes the purchase of alcoholic beverages for consumption
at a function only with money given to the institution for that
express purpose and deposited in an auditable account.
(b) Consumption of alcoholic beverages is subject to the rules
governing the consumption of alcoholic beverages by students of the
institution or system.
Sec. 51.738. TERM LIMITS. Limits the terms of regents to one
6-year term and the terms of chairmen to one 3-year term.
Sec. 51.739. REMOVAL OF MEMBER OF GOVERNING BOARD. It is a
ground of removal from a governing board if a member: (1) is absent
from regularly scheduled meetings for a six month period; (2)
violates a statute relating to the duties of a member of a
governing board, including Section 61.083 of the Education Code;
(3) convicted of a class A or class B misdemeanor; or (4) indicted
for or convicted of a felony.
ARTICLE 3.
REQUIREMENT OF HEARING BEFORE INCREASING TUITION OR FEES OF GENERAL
ACADEMIC TEACHING INSTITUTION OR UNIVERSITY SYSTEM.
SECTION 3.01. Amends Chapter 54 B, Education Code, by adding
Section 54.051 (o) to read as follows:
Sec. 54.051. TUITION RATES. Authorizes the governing board
to hold a public hearing before increasing a tuition rate.
SECTION 3.02. Amends Chapter 54 E, Education Code, by adding
section 54.542 to read as follows:
Sec. 54.542. PUBLIC HEARING BEFORE INCREASING FEE.
Authorizes the governing board to hold a public hearing before
increasing the amount of a fee.
ARTICLE 4.
STUDY OF REORGANIZATION OF STATE'S SYSTEM OF HIGHER EDUCATION.
SECTION 4.01. JOINT SELECT COMMITTEE ON HIGHER EDUCATION
REORGANIZATION. The Joint Select Committee on Higher Education
Reorganization consists of an even number of members established
jointly by the lieutenant governor and the speaker of the house of
representatives not to exceed six members.
SECTION 4.02. PURPOSE AND DUTIES. (a) Authorizes the committee
to conduct a study to consider the organization of the state's
general academic institutions and university systems that include
one or more institutions; transferring of the Texas Higher
Education Coordinating Board's duties to other state agencies; and
duties, if any, the Texas Higher Education Coordinating Board
should retain following the transfer.
SECTION 4.03. REPORTS. The committee must issue a report of its
study to the legislature no later than January 1, 1997.
SECTION 4.04. STAFF AND ASSISTANCE. The senate and house
representatives must provide the staff necessary to allow the
committee to perform its duties.
SECTION 4.05. WITNESSES; PROCESS. (a) Authorizes the committee
to issue a subpoena or other process to a witness at any place in
this state, compel the attendance of the witness, and compel the
production of a book, record, document, or instrument that the
committee requires.
SECTION 4.06. EXPENSES. Authorizes the operating expenses to be
paid from the contingent expense fund of the senate and the
contingent expense fund of the house of representatives.
SECTION 4.07. EXPIRATION. The committee is abolished on September
1, 1997.
ARTICLE 5.
TRANSITION; EFFECTIVE DATE; EMERGENCY CLAUSE.
SECTION 5.01. TRANSITION. The change in law made by this section
applies only to a term that begins on or after the effective date
of this Act.
SECTION 5.02. EFFECTIVE DATE: September 1, 1995.
SECTION 5.03. Emergency clause.
COMPARISON OF ORIGINAL TO SUBSTITUTE
H.B. 420 is identical to the committee substitute for H.B. 420
except for the following changes:
On H.B. 420, (page 1, line 9), Section 1 amended Section 51.352 of
the Education Code by adding Subsection (g) which authorizes the
governing boards to set admission standards requiring all students
admitted to college to be prepared to do college-level work. The
committee substitute for H.B. 420 incorporated committee amendment
No. 2 which amended the committee substitute of H.B. 420 as
follows: On page 1, line 23 and line 24 was amended by striking
"as provided by Section 51.352(g)" and substituting "at a level
sufficient to ensure that at least 95 percent of the students
admitted are prepared to do college-level work when admitted". The
committee substitute also incorporated the committee amendment to
strike Section 1.03 and to strike Subsection (b) on page 11,
Section 5.01.
On H.B. 420, (page 4, line 11), Section 2 amended Chapter 51 of the
Education Code by adding Subchapter R, Sections 51.732 - 51.740.
The committee substitute for H.B. 420, (page 5, line 24), changes
the title of Section 51.738 to read as follows: PURCHASE AND
CONSUMPTION OF ALCOHOLIC BEVERAGES . The new language requires
purchases of alcoholic beverages to be made from an auditable
account from monies specifically donated for this purpose, and in
accordance with the same rules governing student consumption of
alcoholic beverages.
On H.B. 420, (page 6, line 4), Section 5 required the Texas Higher
Education Coordinating Board to conduct a study and recommend to
the legislature a system of governance for general academic
teaching institutions that would achieve the most efficient use of
state funds. The committee substitute for H.B. 420, (page 7, line
24), establishes a joint select committee of legislators to study
higher education and to make recommendations concerning a more
efficient organization of the general academic teaching
institutions and the future role of the Texas Higher Education
Coordinating Board.
The committee substitute of H.B. 420 was amended by inserting "(5)
the resources and facilities of the state's accredited private
colleges and universities" at the end of Section 4.02, subsection
(b), page 8.
SUMMARY OF COMMITTEE ACTION
H.B. 420 was considered by the committee in a public hearing on
March 14, 1995. The committee considered a complete substitute for
H.B. 420. Three amendments were offered to the substitute. All of
those amendments were adopted without objection by a non-record
vote. The substitute as amended was adopted without objection by
a non-record vote. The chair directed the staff to incorporate the
amendments into the substitute. The following persons testified in
support of the bill: Mr. John S. Black, University of Texas at
Austin Students' Association; Ms. Sherry Boyles, Texas Student
Association, University of Texas Student Advisory Group; and Mr. J.
William Wenrich, College Administrator, Dallas County Community
Colleges. The following person testified neutrally on the bill:
Dr. Audrey Kathleen Hennessey, Ph.D. representing herself. The
bill was reported favorably as substituted, with the recommendation
that it do pass and be printed, by a record vote of 8 ayes, 0 nays,
0 pnv, 1 absent.