74R8784 E
          By Ogden                                               H.B. No. 420
          Substitute the following for H.B. No. 420:
          By Gallego                                         C.S.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 general academic teaching institutions and university
    1-4  systems and to testing and remedial education by general academic
    1-5  teaching institutions and university systems.
    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                        AND UNIVERSITY SYSTEMS
   1-10        SECTION 1.01.  Section 51.306, Education Code, is amended by
   1-11  amending Subsection (a) and adding Subsection (q) to read as
   1-12  follows:
   1-13        (a)  In this section:
   1-14              (1)  "Board," "general academic teaching institution,"
   1-15  <and> "institution of higher education," and "university system"
   1-16  have the meanings 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 does not apply to a student who enters a
   1-22  general academic teaching institution the governing board of which
   1-23  has set campus admission standards for that institution at a level
   1-24  sufficient to ensure that at least 95 percent of the students
    2-1  admitted are prepared to do college-level work when admitted.
    2-2        SECTION 1.02.  Section 51.3061, Education Code, is amended by
    2-3  amending Subsection (a) and adding Subsection (f) to read as
    2-4  follows:
    2-5        (a)  In this section:
    2-6              (1)  "Agency" means the Central Education Agency.
    2-7              (2)  "Coordinating board" means the Texas Higher
    2-8  Education Coordinating Board.
    2-9              (3)  "Deaf student" means a student who is a deaf
   2-10  person, as defined by Section 54.205(a)  of this code.
   2-11              (4)  "General academic teaching institution,"
   2-12  "institution <Institution> of higher education," and "university
   2-13  system" have <has> the meanings <meaning> assigned by Section
   2-14  61.003 of this code.
   2-15        (f)  This section does not apply to a student who enters a
   2-16  general academic teaching institution the governing board of which
   2-17  has set campus admission standards for that institution as provided
   2-18  by Section 51.352(g).
   2-19              ARTICLE 2.  LIMITATIONS ON GOVERNING BOARDS
   2-20             OF GENERAL ACADEMIC TEACHING INSTITUTIONS AND
   2-21                          UNIVERSITY SYSTEMS
   2-22        SECTION 2.01.  Chapter 51, Education Code, is amended by
   2-23  adding Subchapter R to read as follows:
   2-24       SUBCHAPTER R.  LIMITATIONS ON GOVERNING BOARDS OF GENERAL
   2-25         ACADEMIC TEACHING INSTITUTIONS AND UNIVERSITY SYSTEMS
   2-26        Sec. 51.731.  APPLICATION.  This subchapter applies to the
   2-27  governing board of each general academic teaching institution and
    3-1  of each university system that includes one or more general
    3-2  academic teaching institutions.
    3-3        Sec. 51.732.  DEFINITIONS.  In this subchapter, "general
    3-4  academic teaching institution" and "university system" have the
    3-5  meanings assigned by Section 61.003.
    3-6        Sec. 51.733.  LIMITATION ON EXPENDITURES BY GOVERNING BOARD.
    3-7  (a)  The legislature by appropriation shall determine the amount
    3-8  each governing board may spend annually in the performance of its
    3-9  duties.  A governing board may not spend in the performance of its
   3-10  duties money not expressly appropriated for that purpose.
   3-11        (b)  A governing board may spend an amount greater than the
   3-12  amount provided by Subsection (a) if the expenditure is approved
   3-13  under Chapter 317, Government Code.
   3-14        (c)  This section does not apply to money spent by a member
   3-15  of a governing board on the member's own behalf in the performance
   3-16  of the member's duties if the member is not reimbursed for that
   3-17  expenditure.
   3-18        Sec. 51.734.  NAMING OF BUILDING OR FACILITY BY GOVERNING
   3-19  BOARD.  A governing board may not name a building or other facility
   3-20  or approve the naming of a building or other facility in honor of a
   3-21  member of the board or a person related to a member of the board
   3-22  within the first degree by affinity or consanguinity as determined
   3-23  under Chapter 573, Government Code:
   3-24              (1)  while the member serves on the board; or
   3-25              (2)  before the fourth anniversary of the date the
   3-26  member ceases to be a member of the board.
   3-27        Sec. 51.735.  EMPLOYMENT OF MEMBER OF GOVERNING BOARD BY
    4-1  INSTITUTION OR SYSTEM.   (a)  A general academic teaching
    4-2  institution or a university system that includes one or more
    4-3  general academic teaching institutions may not employ a member of
    4-4  the governing board of the institution or system or a person
    4-5  related to a member within the first degree by affinity or
    4-6  consanguinity as determined under Chapter 573, Government Code, as
    4-7  an administrator with supervisory or managerial responsibilities:
    4-8              (1)  while the member serves on the board; or
    4-9              (2)  before the fourth anniversary of the date the
   4-10  member ceases to be a member of the board.
   4-11        (b)  A general academic teaching institution or a university
   4-12  system that includes one or more general academic teaching
   4-13  institutions may not employ a member of the governing board of the
   4-14  institution or system as a faculty member or other employee:
   4-15              (1)  while the member serves on the board; or
   4-16              (2)  before the first anniversary of the date the
   4-17  member ceases to be a member of the board.
   4-18        Sec. 51.736.  CONTRACTING WITH MEMBER OF GOVERNING BOARD BY
   4-19  INSTITUTION OR SYSTEM.  (a)  A general academic teaching
   4-20  institution or a university system that includes one or more
   4-21  general academic teaching institutions may not enter into a
   4-22  contract with a member of the governing board of the institution or
   4-23  system, a person related to a member within the first degree by
   4-24  affinity or consanguinity as determined under Chapter 573,
   4-25  Government Code, or a business entity in which a member or a person
   4-26  related to a member has a substantial interest:
   4-27              (1)  while the member serves on the board; or
    5-1              (2)  before the fourth anniversary of the date the
    5-2  member ceases to be a member of the board.
    5-3        (b)  For the purposes of this section, a person has a
    5-4  substantial interest in a business entity if the interest is
    5-5  ownership of at least:
    5-6              (1)  five percent of the voting stock or shares of the
    5-7  business entity; or
    5-8              (2)  five percent of the fair market value of the
    5-9  business entity.
   5-10        (c)  This section does not apply to an employment contract.
   5-11        (d)  In this section, "business entity" means a sole
   5-12  proprietorship, partnership, joint venture, firm, corporation,
   5-13  holding company, joint-stock company, receivership, trust, or other
   5-14  entity recognized by law.
   5-15        Sec. 51.737.  PURCHASE AND CONSUMPTION OF ALCOHOLIC
   5-16  BEVERAGES.  (a)  Alcoholic beverages may be purchased for
   5-17  consumption at a function of the governing board of a general
   5-18  academic teaching institution or of a university system that
   5-19  includes one or more general academic teaching institutions only
   5-20  with money given to the institution or system for that express
   5-21  purpose and deposited in an auditable account designated for that
   5-22  purpose.
   5-23        (b)  Consumption of alcoholic beverages at a function of the
   5-24  governing board of a general academic teaching institution or of a
   5-25  university system that includes one or more general academic
   5-26  teaching institutions is subject to the rules governing the
   5-27  consumption of alcoholic beverages by students of the institution
    6-1  or system.
    6-2        Sec. 51.738.  TERM LIMITS.  (a)  A person who has been
    6-3  appointed to or who has served on a governing board for a full
    6-4  six-year term may not be appointed to or serve on that governing
    6-5  board after that term.  For the purposes of this subsection:
    6-6              (1)  a person is considered to be appointed to a full
    6-7  term on a governing board if the person assumes office before the
    6-8  end of the first year of the full term; and
    6-9              (2)  a person is considered to have served for a full
   6-10  term if the person serves for at least five years and 185 days of
   6-11  the full term.
   6-12        (b)  A person may not serve as the presiding officer of a
   6-13  governing board for more than three years.
   6-14        Sec. 51.739.  REMOVAL OF MEMBER OF GOVERNING BOARD.  It is a
   6-15  ground for removal from a governing board if a member:
   6-16              (1)  is absent from each regularly scheduled board
   6-17  meeting the member is eligible to attend during a six-month period;
   6-18              (2)  violates a statute relating to the duties of a
   6-19  member of a governing board, including Section 61.083, as added by
   6-20  Chapter 621, Acts of the 73rd Legislature, Regular Session, 1993;
   6-21              (3)  is finally convicted of a Class A or Class B
   6-22  misdemeanor; or
   6-23              (4)  is indicted for or convicted of a felony.
   6-24               ARTICLE 3.  REQUIREMENT OF HEARING BEFORE
   6-25                 INCREASING TUITION OR FEES OF GENERAL
   6-26          ACADEMIC TEACHING INSTITUTION OR UNIVERSITY SYSTEM
   6-27        SECTION 3.01.  Section 54.051, Education Code, is amended by
    7-1  adding Subsection (o) to read as follows:
    7-2        (o)  The governing board of a general academic teaching
    7-3  institution or of a university system that includes one or more
    7-4  general academic teaching institutions must hold a public hearing
    7-5  before increasing a tuition rate it has the authority to determine
    7-6  under this section.
    7-7        SECTION 3.02.  Subchapter E, Chapter 54, Education Code, is
    7-8  amended by adding Section 54.542 to read as follows:
    7-9        Sec. 54.542.  PUBLIC HEARING BEFORE INCREASING FEE.  The
   7-10  governing board of a general academic teaching institution or of a
   7-11  university system that includes one or more general academic
   7-12  teaching institutions must hold a public hearing before increasing
   7-13  the amount of a fee it has the authority to determine under this
   7-14  subchapter.
   7-15            ARTICLE 4.  STUDY OF REORGANIZATION OF STATE'S
   7-16                      SYSTEM OF HIGHER EDUCATION
   7-17        SECTION 4.01.  JOINT SELECT COMMITTEE ON HIGHER EDUCATION
   7-18  REORGANIZATION.  (a)  The Joint Select Committee on Higher
   7-19  Education Reorganization consists of an even number of members
   7-20  established jointly by the lieutenant governor and the speaker of
   7-21  the house of representatives not to exceed six members, half of
   7-22  whom are appointed by the lieutenant governor and half of whom are
   7-23  appointed by the speaker.
   7-24        (b)  A member appointed by the lieutenant governor must be a
   7-25  member of the senate.  A member appointed by the speaker of the
   7-26  house of representatives must be a member of the house of
   7-27  representatives.
    8-1        (c)  The speaker and the lieutenant governor shall each
    8-2  designate one member appointed by that person as co-presiding
    8-3  officer.
    8-4        (d)  The committee shall meet at the call of the co-presiding
    8-5  officers.
    8-6        SECTION 4.02.  PURPOSE AND DUTIES.  (a)  The committee shall
    8-7  conduct a study to consider:
    8-8              (1)  the organization of the state's general academic
    8-9  teaching institutions and university systems that include one or
   8-10  more general academic teaching institutions;
   8-11              (2)  the state agencies to which any of the Texas
   8-12  Higher Education Coordinating Board's duties should be transferred;
   8-13              (3)  the duties, if any, the Texas Higher Education
   8-14  Coordinating Board should retain following the transfer; and
   8-15              (4)  any related matter the committee considers
   8-16  appropriate.
   8-17        (b)  In conducting the study, the committee shall consider:
   8-18              (1)  assigning institutions that are not components of
   8-19  a university system to a university system;
   8-20              (2)  assigning component institutions of a university
   8-21  system to a different university system;
   8-22              (3)  consolidating university systems;
   8-23              (4)  establishing new university systems; or
   8-24              (5)  the resources and facilities of the state's
   8-25  accredited private colleges and universities.
   8-26        SECTION 4.03.  REPORT.  (a)  The committee shall issue a
   8-27  report of its study to the legislature not later than January 1,
    9-1  1997.  The report shall include recommendations concerning:
    9-2              (1)  reorganization of the state's general academic
    9-3  teaching institutions and university systems that include one or
    9-4  more general academic teaching institutions to achieve maximum
    9-5  efficiency in the use of state money to operate the state's system
    9-6  of higher education;
    9-7              (2)  the state agencies to which any of the Texas
    9-8  Higher Education Coordinating Board's duties should be transferred;
    9-9  and
   9-10              (3)  the duties, if any, the Texas Higher Education
   9-11  Coordinating Board should retain following the transfer.
   9-12        (b)  The committee may issue additional reports as the
   9-13  committee considers appropriate.
   9-14        SECTION 4.04.  STAFF AND ASSISTANCE.  (a)  The senate and
   9-15  house of representatives shall provide the staff necessary to allow
   9-16  the committee to perform its duties.
   9-17        (b)  If needed to perform the duties of the committee, the
   9-18  committee may request information or assistance from any other
   9-19  state agency or office.  The agency or office shall provide the
   9-20  requested assistance to the extent practicable.
   9-21        SECTION 4.05.  WITNESSES; PROCESS.  (a)  The committee may
   9-22  issue a subpoena or other process to a witness at any place in this
   9-23  state, compel the attendance of the witness, and compel the
   9-24  production of a book, record, document, or instrument that the
   9-25  committee requires.  If necessary to obtain compliance with a
   9-26  subpoena or other process, the committee may issue a writ of
   9-27  attachment.  A subpoena or other process issued by the committee
   10-1  may be addressed to and served by any peace officer of this state
   10-2  or any of its political subdivisions.
   10-3        (b)  The co-presiding officers jointly shall issue, in the
   10-4  name of the committee, a subpoena or other process as the committee
   10-5  directs.  If a co-presiding officer is absent, the designee of the
   10-6  co-presiding officer may join in issuing a subpoena or other
   10-7  process in the same manner as the co-presiding officer.
   10-8        (c)  A witness attending proceedings of the committee under
   10-9  process is entitled to the same mileage and per diem as a witness
  10-10  before a grand jury in this state.
  10-11        (d)  The testimony given at any hearing conducted under this
  10-12  article shall be given under oath subject to the penalties of
  10-13  perjury.
  10-14        SECTION 4.06.  EXPENSES.  The operating expenses of the
  10-15  committee shall be paid from the contingent expense fund of the
  10-16  senate and the contingent expense fund of the house of
  10-17  representatives, as agreed by those entities.  The committee
  10-18  members are entitled to reimbursement from those funds for their
  10-19  expenses incurred in carrying out this article.
  10-20        SECTION 4.07.  EXPIRATION.  This article expires and the
  10-21  committee is abolished September 1, 1997.
  10-22                ARTICLE 5.  TRANSITION; EFFECTIVE DATE;
  10-23                           EMERGENCY CLAUSE
  10-24        SECTION 5.01.  TRANSITION.  The change in law made by Section
  10-25  51.738(a), Education Code, as added by this Act, does not affect
  10-26  the entitlement of a member of the governing board of a general
  10-27  academic teaching institution or of a university system that
   11-1  includes one or more general academic teaching institutions on the
   11-2  effective date of this Act to continue to serve on the board for
   11-3  the remainder of the member's term.  The change in law made by that
   11-4  section applies only to a term that begins on or after the
   11-5  effective date of this Act.
   11-6        SECTION 5.02.  EFFECTIVE DATE.  This Act takes effect
   11-7  September 1, 1995.
   11-8        SECTION 5.03.  EMERGENCY.  The importance of this legislation
   11-9  and the crowded condition of the calendars in both houses create an
  11-10  emergency and an imperative public necessity that the
  11-11  constitutional rule requiring bills to be read on three several
  11-12  days in each house be suspended, and this rule is hereby suspended.