BILL ANALYSIS C.S.H.B. 2313 By: Stiles (Galloway) Education 05-11-95 Senate Committee Report (Substituted) BACKGROUND The Lamar University System was created by the Texas Legislature in 1983 and is composed of the system office and five components: Lamar University at Beaumont, Lamar University at Port Arthur, Lamar University at Orange, the Lamar Institute of Technology, and the John Gray Institute. In March 1993, the State Auditor's Office released a management control audit of the system citing several areas of concern: cash management, management information, financial and automation controls, and attention to prior recommendations for improvement. The audit stated that there was lack of direction and oversight by the board of regents. However, in December 1994, the state auditor reported that the Lamar University System board of regents had made progress in fulfilling its fiduciary and oversight roles. PURPOSE As proposed, C.S.H.B. 2313 abolishes the Lamar University System and transfers all duties, infrastructure, responsibilities and powers to the Texas State University System. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted under SECTIONS 2(b) and 7 (Sections 96.704(c) and 96.707(f), Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. ABOLITION OF BOARD AND SYSTEM. Abolishes the Lamar University System (system) and the system's board of regents (board). SECTION 2. TRANSFER OF INSTITUTIONS. (a) Transfers the governance, operation, management, and control of Lamar University (LU) and its educational centers (centers), including LU at Orange (LUO), LU at Port Arthur (LUPA), and LU Institute of Technology (LUIT) along with all right, title, and interest in the land, buildings, facilities, improvements, equipment, supplies, and property comprising those institutions from the board of regents of the system to the board of the Texas State University System (TSUS). (b) Provides that rules and policies adopted by the board of LU system to govern the component institutions of that system that are in effect when the transfer takes effect are continued in effect until adopted, repealed, or superseded by the board of TSUS. Authorizes the board of TSUS to adopt rules and policies applicable to the component institutions of LU system in anticipation of the transfer authorized by this Act. SECTION 3. POWERS AND DUTIES. Requires the board of TSUS to undertake to govern, operate, manage, and control LU and its centers, including LUO, LUPA, and LUIT and all land, buildings, facilities, improvements, equipment, supplies, and property comprising that institution pursuant to the powers, duties, and responsibilities that are or may be conferred by law upon the board of TSUS for the governance, operation, management, and control of component institutions comprising that system. SECTION 4. APPROPRIATIONS. Transfers the appropriations made by the legislature for the use and benefit of LU and its centers, including LUO, LUPA, and LUIT, under the governance of the board of the system to the board of TSUS for the use and benefit of the institution. Requires other funds held for the use and benefit of LU, including LUO, LUPA, and LUIT, to continue to be available for the use and benefit of those institutions notwithstanding the change in governance made by this Act. SECTION 5. CONTRACTS AND WRITTEN OBLIGATIONS. Ratifies, confirms, and validates contracts and written obligations of every kind and character, including bonds, entered into by the board of the system for and on behalf of LU and its centers, including LUO, LUPA, and LUIT. Provides that the board of TSUS is substituted for and stands and acts in the place of the board of the system in those contracts and written obligations. SECTION 6. EFFECT OF TRANSFER. (a) Provides that the transfer of governance, operation, management, and control of LU and its centers, including LUO, LUPA, and LUIT, from the board of the system to the board of TSUS does not affect the credit hours earned by students at those institutions before the effective date of this Act or the employment status on the effective date of this Act of the administrative, faculty, or support staff of those institutions. (b) Provides that this section does not limit the authority of the board of TSUS to evaluate or reassign staff or to take any other personnel action relating to the staff of those institutions as the board determines in the best interest of the university. SECTION 7. AMENDMENT. Amends Chapter 96, Education Code, by adding Subchapter E, as follows: SUBCHAPTER E. LAMAR UNIVERSITY AND RELATED INSTITUTIONS Sec. 96.701. LAMAR UNIVERSITY. Provides that LU is a coeducational institution of higher education located in the city of Beaumont. Provides that LU is under the management and control of the board of regents of TSUS. Sec. 96.702. SPINDLETOP MEMORIAL MUSEUM. Authorizes the board to create the Spindletop Memorial Museum at LU and to administer the museum as the board considers appropriate. Sec. 96.703. LAMAR UNIVERSITY INSTITUTE OF TECHNOLOGY. (a) Requires the board to establish and maintain an education center of LU as a separate degree-granting institution to be known as Lamar University Institute of Technology. (b) Provides that the primary purpose of the institute is to teach technical and vocational courses and related supporting courses. Authorizes the board to confer degrees appropriate to the institute's curriculum. Sec. 96.704. EDUCATION CENTERS AT PORT ARTHUR AND ORANGE. (a) Requires the board to establish and maintain coeducational lower-division institutions of higher education as separate degree-granting institutions in the counties of Jefferson and Orange, to be known as Lamar University-Port Arthur and Lamar University-Orange, to teach only freshman- and sophomore-level courses. (b) Authorizes the board to acquire, construct, or otherwise make provision for adequate physical facilities for use by LUPA and LUO and to accept and administer, on terms and conditions satisfactory to the board, grants or gifts of money or property tendered by any reason for the use and benefit of the school. (c) Authorizes the board with the approval of the Texas Higher Education Coordinating Board to prescribe courses leading to customary degrees, and make other rules and regulations for the operation, control, and management of LUPA and LUO as necessary for each school to be a first-class institution for freshman and sophomore students. (d) Provides that nothing in this section shall be construed to limit the powers of the board as conferred by law. (e) Authorizes the board to expend funds allocated to LU under Chapter 62 for any of the purposes listed in Section 17, Article VII, Texas Constitution, in the manner and under the same circumstances as expenditures for those purposes for separate degree-granting institutions for LUPA and LUO. Sec. 96.705. APPLICATION OF OTHER LAW. Provides that all other provisions of law, including provisions for student fees, applicable to institutions of TSUS apply to LU and its centers. Sec. 96.706. HAZARDOUS WASTE RESEARCH CENTER. (a) Provides that the Hazardous Waste Research Center (HRC) is established at Lamar University at Beaumont. Provides that HRC is under the authority of the board of TSUS. Authorizes HRC to employ such personnel as are necessary. (b) Requires HRC to carry out a program of research, evaluation, testing, development, and demonstration of alternative or innovative technologies that may be used in minimization, destruction, or handling of hazardous wastes to achieve better protection of human health and the environment. (c) Requires HRC to provide coordination of the activities of a consortium of Texas universities initially consisting of the Texas Engineering Experiment Station of the Texas A&M University System, the University of Houston, the University of Texas at Austin, and the Lamar University at Beaumont, and other entities that may become affiliated. (d) Requires HRC to develop and maintain a database relevant to its programs. (e) Authorizes the programs of HRC to include certain services. (f) Authorizes HRC to enter into agreements with certain entities in carrying out its established programs. (g) Creates a policy board with certain responsibilities. Describes the policy board's composition. (h) Requires the institutions of higher education that are members of the policy board to appoint an advisory council to develop recommendations on the priorities for research and to serve as a resource group on the projects. Requires each institution to appoint two members from private industry and two members to serve for terms to be set by the policy board. (i) Requires HRC to seek grant and contract support from federal and other sources to the extent possible and accept gifts and donations to support its purposes and programs. (j) Authorizes HRC to receive state appropriated funds as considered appropriate by the legislature. (k) Requires disbursement of funds received by the center on behalf of the consortium to be on an equitable basis and in accordance with policy determined by the policy board subject to laws of the state and policies of member institutions. Requires disbursement policy to recognize the need for core program support at each consortium institution, matching requirements for federal grants and contracts, general administration, and new initiatives. Requires disbursement of funds received in response to specific proposals to be in accordance with those proposals. Sec. 96.707. TEXAS ACADEMY OF LEADERSHIP IN THE HUMANITIES. (a) Establishes the Texas Academy of Leadership in the Humanities (academy) as a two-year program at LU-Beaumont for secondary school students selected under this section. Places the academy under the management and control of the board of TSUS. (b) Sets forth the goals of the academy. (c) Sets forth eligibility requirements for admission to the academy. (d) Requires the board to recruit minority secondary school students to apply for admission to the academy. (e) Requires the board to select for admission to the academy eligible students based on additional testing required by the board and on a personal interview by a selection committee appointed by the board. Requires the board to send written notice to the student and the student's school district if the board selects an eligible student for admission to the academy. (f) Requires the board to establish a tuition and fee scholarship for each student who enrolls in the academy. Provides that a student who enrolls in the academy is responsible for room, board, and book costs and must live in a residence determined by board rule. (g) Provides that academy courses are taught by the faculty members of LU. Authorizes the board to employ additional staff for the academy. (h) Requires the board to provide each student enrolled in the academy with a mentor who is a faculty member at LU to assist the student in completing the student's course of study in the academy. (i) Authorizes a student of the academy to attend a college course offered by LU and receive college credit for that course. (j) Authorizes the board to accept gifts and grants from a public or private source for the academy. SECTION 8. AMENDMENT. Amends Section 54.523, Education Code, by amending Subsections (a) and (c) and adding Subsection (e), as follows: (a) Makes conforming changes. (c) Requires the chief fiscal officer of each university operating a student center, either on its central campus or at an educational center of the university, to collect the student center fee and to deposit the money received into an account known as the student center account. (e) Authorizes the board to charge a student center fee under this section at LU or an educational center of LU in the amount charged at the appropriate institution in the 1994-1995 academic year under former Section 54.517 or 108.361 as approved by a majority of the students of the institution voting in an election called for that purpose, as if the fee had been approved by a majority vote of the students under this section. Authorizes revenue from the fee charged under this section at a center of LU to be used to pay the principal of and interest on revenue bonds issued under former Section 108.361 for the purpose of constructing a student center at the center. SECTION 9. AMENDMENT. Amend Section 62.021, Education Code, by adding Subsection (e), to provide that the amount allocated by Subsection (a) to LU and its centers is considered part of the amount allocated by Subsection (a) to the TSUS administration and its component institutions, to be spent as provided by Subsection (b) in the sole discretion of the governing board of TSUS for the system and its institutions. SECTION 10. AMENDMENT. Amends Section 12.1105(e), Parks and Wildlife Code, to make a conforming change. SECTION 11. Repealer: Section 54.517 (Student Center Fees; Lamar University), Chapter 108 (Lamar University System), and Section 54.523(e) (Relating to the prohibition of state appropriated funds to construct or maintain the student center), Education Code SECTION 12. VALIDATION. (a) Validates, confirms, and ratifies all proceedings of the board of LU system authorizing the issuance of bonds, notes or other evidences of indebtness entered into, by, or on behalf of, the board of LU system prior to the effective date of this Act to the extent and in the manner set forth in the proceedings of the board of LU system. Authorizes the board of TSUS to fix, collect, pledge and apply rentals, rates, charges, and/or fees from students and others attending the institutions of the LU system to the same extent with the same effect and in the same manner as said board, fixes, collects, pledges, applies rentals, rates, charges, and/or fees from students attending other TSU components, any other provision of law notwithstanding. (b) Requires the board of TSUS to assume all of the rights, duties and obligations of the board of LU system with respect to all outstanding bonds, notes, and other evidences of indebtness as of the effective date of this Act. Requires any actions taken by the board of TSUS, its members, officers or employees with respect to the transition and merger of LU system into TSUS to be presumed as a matter of law to have been taken within the board's, member's, officer's, or employee's official capacity, in good faith, and within the exercise of discretionary governmental authority. Provides that the sovereign immunity of the state is affirmed to the limited extent of actions taken under this Act; and requires the board of TSUS, its members, officers, employees and institutions to be immune from legal action relating to actions taken with respect to the transition and merger of LU system, any other provision of the law notwithstanding. (c) Prohibits the provisions of this section from being construed as validating any actions or proceedings or bonds, notes, evidences of indebtedness, contracts or agreements which are involved in litigation questioning the validity thereof on the effective date of this Act if such litigation is ultimately determined against the validity thereof. SECTION 13. Emergency clause. Effective date: upon passage.