By Ogden                                               H.B. No. 420
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the admission standards, tuition, fees, and governing
    1-3  boards of institutions of higher education and university systems
    1-4  and to testing and remedial education by general academic teaching
    1-5  institutions.
    1-6        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-7      ARTICLE 1.  ADMISSION STANDARDS OF AND TESTING AND REMEDIAL
    1-8          EDUCATION BY GENERAL ACADEMIC TEACHING INSTITUTIONS
    1-9        SECTION 1.01.  Section 51.306, Education Code, is amended by
   1-10  amending Subsection (a) and adding Subsections (q)-(t) to read as
   1-11  follows:
   1-12        (a)  In this section:
   1-13              (1)  "Board," "general academic teaching institution,"
   1-14  <and> "institution of higher education," and "private or
   1-15  independent institution of higher education" have the meanings
   1-16  assigned by Section 61.003 of this code.
   1-17              (2)  "Deaf student" means a student who is a deaf
   1-18  person as defined by Section 54.205(a) of this code.
   1-19              (3)  "Blind student" means a student who is a blind
   1-20  person as defined by Section 54.205(a) of this code.
   1-21        (q)  This section is optional for students who meet or exceed
   1-22  campus admission standards at general academic teaching
   1-23  institutions at which the governing boards in their sole discretion
   1-24  have set campus admission standards that assure at least 90 percent
    2-1  of the students admitted are prepared to do college-level work.
    2-2        (r)  This section does not apply to a student at an
    2-3  institution of higher education who:
    2-4              (1)  enrolls on a temporary basis in the institution of
    2-5  higher education; and
    2-6              (2)  is also enrolled in a private or independent
    2-7  institution of higher education or an out-of-state institution of
    2-8  higher education or has graduated from an institution of higher
    2-9  education, a private or independent institution of higher
   2-10  education, or an out-of-state institution of higher education.
   2-11        (s)  To receive an exemption under Subsection (r), a student
   2-12  must:
   2-13              (1)  if the student claims the exemption because the
   2-14  student is also enrolled in a private or independent institution of
   2-15  higher education or an out-of-state institution of higher
   2-16  education, present to the institution of higher education at which
   2-17  the student seeks the exemption as evidence of enrollment in the
   2-18  other institution:
   2-19                    (A)  a transcript, grade report, or paid fee
   2-20  receipt from the preceding semester; or
   2-21                    (B)  any other evidence acceptable to the
   2-22  institution of higher education as proof of enrollment in the other
   2-23  institution;
   2-24              (2)  if the student claims the exemption because the
   2-25  student has graduated from an institution of higher education, a
   2-26  private or independent institution of higher education, or an
   2-27  out-of-state institution of higher education, present to the
    3-1  institution of higher education at which the student seeks the
    3-2  exemption as evidence of graduation from the other institution a
    3-3  diploma or transcript; and
    3-4              (3)  sign a form stating that the student does not
    3-5  intend to enroll on a permanent basis in or receive a certificate
    3-6  or degree from the institution of higher education at which the
    3-7  student seeks the exemption.
    3-8        (t)  An exemption under Subsection (r) terminates if the
    3-9  student:
   3-10              (1)  enrolls on a permanent basis in the institution of
   3-11  higher education; or
   3-12              (2)  enrolls in a certificate or degree program at the
   3-13  institution of higher education.
   3-14        SECTION 1.02.  Section 51.3061, Education Code, is amended by
   3-15  amending Subsection (a) and adding Subsection (f) to read as
   3-16  follows:
   3-17        (a)  In this section:
   3-18              (1)  "Agency" means the Central Education Agency.
   3-19              (2)  "Coordinating board" means the Texas Higher
   3-20  Education Coordinating Board.
   3-21              (3)  "Deaf student" means a student who is a deaf
   3-22  person, as defined by Section 54.205(a)  of this code.
   3-23              (4)  "General academic teaching institution" and
   3-24  "institution <Institution> of higher education" have <has> the
   3-25  meanings <meaning> assigned by Section 61.003 of this code.
   3-26        (f)  This section is optional for students who meet or exceed
   3-27  campus admission standards at general academic teaching
    4-1  institutions at which the governing boards in their sole discretion
    4-2  have set campus admission standards that assure at least 90 percent
    4-3  of the students admitted are prepared to do college-level work.
    4-4              ARTICLE 2.  LIMITATIONS ON GOVERNING BOARDS
    4-5             OF GENERAL ACADEMIC TEACHING INSTITUTIONS AND
    4-6                          UNIVERSITY SYSTEMS
    4-7        SECTION 2.01.  Chapter 51, Education Code, is amended by
    4-8  adding Subchapter R to read as follows:
    4-9       SUBCHAPTER R.  LIMITATIONS ON GOVERNING BOARDS OF GENERAL
   4-10         ACADEMIC TEACHING INSTITUTIONS AND UNIVERSITY SYSTEMS
   4-11        Sec. 51.731.  APPLICATION.  This subchapter applies to the
   4-12  governing board of each general academic teaching institution and
   4-13  of each university system that includes one or more general
   4-14  academic teaching institutions.
   4-15        Sec. 51.732.  DEFINITIONS.  In this subchapter, "general
   4-16  academic teaching institution" and "university system" have the
   4-17  meanings assigned by Section 61.003.
   4-18        Sec. 51.733.  LIMITATION ON EXPENDITURES BY GOVERNING BOARD.
   4-19  (a)  The legislature by appropriation shall determine the amount
   4-20  each governing board may spend annually in the performance of its
   4-21  duties.  A governing board may not spend in the performance of its
   4-22  duties money not expressly appropriated for that purpose.
   4-23        (b)  A governing board may spend an amount greater than the
   4-24  amount provided by Subsection (a) if the expenditure is approved
   4-25  under Chapter 317, Government Code.
   4-26        (c)  This section does not apply to money spent by a member
   4-27  of a governing board on the member's own behalf in the performance
    5-1  of the member's duties if the member is not reimbursed for that
    5-2  expenditure.
    5-3        Sec. 51.734.  NAMING OF BUILDING OR FACILITY BY GOVERNING
    5-4  BOARD.  A governing board may not name a building or other facility
    5-5  or approve the naming of a building or other facility in honor of a
    5-6  member of the board or a person related to a member of the board
    5-7  within the first degree by affinity or consanguinity as determined
    5-8  under Chapter 573, Government Code:
    5-9              (1)  while the member serves on the board; or
   5-10              (2)  before the fourth anniversary of the date the
   5-11  member ceases to be a member of the board.
   5-12        Sec. 51.735.  EMPLOYMENT OF MEMBER OF GOVERNING BOARD BY
   5-13  INSTITUTION OR SYSTEM.   (a)  A general academic teaching
   5-14  institution or a university system that includes one or more
   5-15  general academic teaching institutions may not employ a member of
   5-16  the governing board of the institution or system or a person
   5-17  related to a member within the first degree by affinity or
   5-18  consanguinity as determined under Chapter 573, Government Code, as
   5-19  an administrator with supervisory or managerial responsibilities:
   5-20              (1)  while the member serves on the board; or
   5-21              (2)  before the fourth anniversary of the date the
   5-22  member ceases to be a member of the board.
   5-23        (b)  A general academic teaching institution or a university
   5-24  system that includes one or more general academic teaching
   5-25  institutions may not employ a member of the governing board of the
   5-26  institution or system as a faculty member or other employee:
   5-27              (1)  while the member serves on the board; or
    6-1              (2)  before the first anniversary of the date the
    6-2  member ceases to be a member of the board.
    6-3        Sec. 51.736.  CONTRACTING WITH MEMBER OF GOVERNING BOARD BY
    6-4  INSTITUTION OR SYSTEM.  (a)  A general academic teaching
    6-5  institution or a university system that includes one or more
    6-6  general academic teaching institutions may not enter into a
    6-7  contract with a member of the governing board of the institution or
    6-8  system, a person related to a member within the first degree by
    6-9  affinity or consanguinity as determined under Chapter 573,
   6-10  Government Code, or a business entity in which a member or a person
   6-11  related to a member has a substantial interest:
   6-12              (1)  while the member serves on the board; or
   6-13              (2)  before the fourth anniversary of the date the
   6-14  member ceases to be a member of the board.
   6-15        (b)  For the purposes of this section, a person has a
   6-16  substantial interest in a business entity if the interest is
   6-17  ownership of at least:
   6-18              (1)  five percent of the voting stock or shares of the
   6-19  business entity; or
   6-20              (2)  five percent of the fair market value of the
   6-21  business entity.
   6-22        (c)  This section does not apply to an employment contract.
   6-23        (d)  In this section, "business entity" means a sole
   6-24  proprietorship, partnership, joint venture, firm, corporation,
   6-25  holding company, joint-stock company, receivership, trust, or other
   6-26  entity recognized by law.
   6-27        Sec. 51.737.  PURCHASE AND CONSUMPTION OF ALCOHOLIC
    7-1  BEVERAGES.  (a)  Alcoholic beverages may be purchased for
    7-2  consumption at a function of the governing board of a general
    7-3  academic teaching institution or of a university system that
    7-4  includes one or more general academic teaching institutions only
    7-5  with money given to the institution or system for that express
    7-6  purpose and deposited in an auditable account designated for that
    7-7  purpose.
    7-8        (b)  Consumption of alcoholic beverages at a function of the
    7-9  governing board of a general academic teaching institution or of a
   7-10  university system that includes one or more general academic
   7-11  teaching institutions is subject to the rules governing the
   7-12  consumption of alcoholic beverages by students of the institution
   7-13  or system.
   7-14        Sec. 51.738.  TERM LIMITS.  (a)  A person who has been
   7-15  appointed to or who has served on a governing board for a full
   7-16  six-year term may not be appointed to or serve on that governing
   7-17  board after that term.  For the purposes of this subsection:
   7-18              (1)  a person is considered to be appointed to a full
   7-19  term on a governing board if the person assumes office before the
   7-20  end of the first year of the full term; and
   7-21              (2)  a person is considered to have served for a full
   7-22  term if the person serves for at least five years and 185 days of
   7-23  the full term.
   7-24        (b)  A person may not serve as the presiding officer of a
   7-25  governing board for more than three years.
   7-26        Sec. 51.739.  REMOVAL OF MEMBER OF GOVERNING BOARD.  It is a
   7-27  ground for removal from a governing board if a member:
    8-1              (1)  is absent from each regularly scheduled board
    8-2  meeting the member is eligible to attend during a six-month period;
    8-3              (2)  violates a statute relating to the duties of a
    8-4  member of a governing board, including Section 61.083, as added by
    8-5  Chapter 621, Acts of the 73rd Legislature, Regular Session, 1993;
    8-6              (3)  is finally convicted of a Class A or Class B
    8-7  misdemeanor; or
    8-8              (4)  is indicted for or convicted of a felony.
    8-9        SECTION 2.02.  Subchapter A, Chapter 130, Education Code, is
   8-10  amended by adding Section 130.008 to read as follows:
   8-11        Sec. 130.008.  NAMING OF BUILDING OR FACILITY BY GOVERNING
   8-12  BOARD.  Section 51.734 applies to the governing board of a public
   8-13  junior college to the same extent as the governing board of a
   8-14  general academic teaching institution.
   8-15               ARTICLE 3.  REQUIREMENT OF HEARING BEFORE
   8-16                 INCREASING TUITION OR FEES OF GENERAL
   8-17          ACADEMIC TEACHING INSTITUTION OR UNIVERSITY SYSTEM
   8-18        SECTION 3.01.  Section 54.051, Education Code, is amended by
   8-19  adding Subsection (o) to read as follows:
   8-20        (o)  The governing board of a general academic teaching
   8-21  institution or of a university system that includes one or more
   8-22  general academic teaching institutions must hold a public hearing
   8-23  before increasing a tuition rate it has the authority to determine
   8-24  under this section.
   8-25        SECTION 3.02.  Subchapter E, Chapter 54, Education Code, is
   8-26  amended by adding Section 54.542 to read as follows:
   8-27        Sec. 54.542.  PUBLIC HEARING BEFORE INCREASING FEE.  The
    9-1  governing board of a general academic teaching institution or of a
    9-2  university system that includes one or more general academic
    9-3  teaching institutions must hold a public hearing before increasing
    9-4  the amount of a fee it has the authority to determine under this
    9-5  subchapter.
    9-6                ARTICLE 4.  TRANSITION; EFFECTIVE DATE;
    9-7                           EMERGENCY CLAUSE
    9-8        SECTION 4.01.  TRANSITION.  The change in law made by Section
    9-9  51.738(a), Education Code, as added by this Act, does not affect
   9-10  the entitlement of a member of the governing board of a general
   9-11  academic teaching institution or of a university system that
   9-12  includes one or more general academic teaching institutions on the
   9-13  effective date of this Act to continue to serve on the board for
   9-14  the remainder of the member's term.  The change in law made by that
   9-15  section applies only to a term that begins on or after the
   9-16  effective date of this Act.
   9-17        SECTION 4.02.  EFFECTIVE DATE.  This Act takes effect
   9-18  September 1, 1995.
   9-19        SECTION 4.03.  EMERGENCY.  The importance of this legislation
   9-20  and the crowded condition of the calendars in both houses create an
   9-21  emergency and an imperative public necessity that the
   9-22  constitutional rule requiring bills to be read on three several
   9-23  days in each house be suspended, and this rule is hereby suspended.