By Ogden H.B. No. 420 74R1263 SMH-D 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 public 1-5 institutions of higher education. 1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-7 SECTION 1. Section 51.352, Education Code, is amended by 1-8 adding Subsection (g) to read as follows: 1-9 (g) Each governing board of a general academic teaching 1-10 institution or university system that includes one or more general 1-11 academic teaching institutions shall set campus admission standards 1-12 under Subsection (d)(4) at a level sufficient to ensure that each 1-13 student admitted to the institution is prepared to do college-level 1-14 work when admitted. 1-15 SECTION 2. Chapter 51, Education Code, is amended by adding 1-16 Subchapter R to read as follows: 1-17 SUBCHAPTER R. LIMITATIONS ON GOVERNING BOARDS OF GENERAL 1-18 ACADEMIC TEACHING INSTITUTIONS 1-19 Sec. 51.731. APPLICATION. This subchapter applies to the 1-20 governing board of each general academic teaching institution and 1-21 university system that includes one or more general academic 1-22 teaching institutions. 1-23 Sec. 51.732. DEFINITIONS. In this subchapter, "general 1-24 academic teaching institution" and "university system" have the 2-1 meanings assigned by Section 61.003. 2-2 Sec. 51.733. LIMITATION ON EXPENDITURES BY GOVERNING BOARD. 2-3 (a) The legislature by appropriation shall determine the amount 2-4 each governing board may spend annually in the performance of its 2-5 duties. A governing board may not spend in the performance of its 2-6 duties money not expressly appropriated for that purpose. 2-7 (b) A governing board may spend an amount greater than the 2-8 amount provided by Subsection (a) if the expenditure is approved 2-9 under Chapter 317, Government Code. 2-10 (c) This section does not apply to money spent by a member 2-11 of a governing board on the member's own behalf in the performance 2-12 of the member's duties. 2-13 Sec. 51.734. REIMBURSEMENT OF MEMBER OF GOVERNING BOARD FOR 2-14 EXPENSES. A member of a governing board may not be reimbursed for 2-15 money the member spends on the member's own behalf in the 2-16 performance of the member's duties. 2-17 Sec. 51.735. NAMING OF BUILDING OR FACILITY BY GOVERNING 2-18 BOARD. A governing board may not name a building or other facility 2-19 or approve the naming of a building or other facility in honor of a 2-20 member of the board or a person related to a member of the board 2-21 within the first degree by affinity or consanguinity as determined 2-22 under Chapter 573, Government Code: 2-23 (1) while the member serves on the board; or 2-24 (2) before the fourth anniversary of the date the 2-25 member ceases to be a member of the board. 2-26 Sec. 51.736. EMPLOYMENT OF MEMBER OF GOVERNING BOARD BY 2-27 INSTITUTION OR SYSTEM. A general academic teaching institution or 3-1 university system may not employ a member of the governing board of 3-2 the institution or system or a person related to a member within 3-3 the first degree by affinity or consanguinity as determined under 3-4 Chapter 573, Government Code: 3-5 (1) as an administrator with supervisory or managerial 3-6 responsibilities: 3-7 (A) while the member serves on the board; or 3-8 (B) before the fourth anniversary of the date 3-9 the member ceases to be a member of the board; or 3-10 (2) as a faculty member or other employee: 3-11 (A) while the member serves on the board; or 3-12 (B) before the first anniversary of the date the 3-13 member ceases to be a member of the board. 3-14 Sec. 51.737. CONTRACTING WITH MEMBER OF GOVERNING BOARD BY 3-15 INSTITUTION OR SYSTEM. (a) A general academic teaching 3-16 institution or a university system may not enter into a contract 3-17 with a member of the governing board of the institution or system, 3-18 a person related to a member within the first degree by affinity or 3-19 consanguinity as determined under Chapter 573, Government Code, or 3-20 a business entity in which a member or a person related to a member 3-21 has a substantial interest: 3-22 (1) while the member serves on the board; or 3-23 (2) before the fourth anniversary of the date the 3-24 member ceases to be a member of the board. 3-25 (b) For the purposes of this section, a person has a 3-26 substantial interest in a business entity if the interest is 3-27 ownership of at least: 4-1 (1) five percent of the voting stock or shares of the 4-2 business entity; 4-3 (2) five percent of the fair market value of the 4-4 business entity; or 4-5 (3) $5,000 of the fair market value of the business 4-6 entity. 4-7 (c) In this section, "business entity" means a sole 4-8 proprietorship, partnership, joint venture, firm, corporation, 4-9 holding company, joint-stock company, receivership, trust, or other 4-10 entity recognized by law. 4-11 Sec. 51.738. CONSUMPTION AND SALE OF ALCOHOLIC BEVERAGES AT 4-12 FUNCTIONS OF GOVERNING BOARD. (a) Alcoholic beverages may not be 4-13 consumed: 4-14 (1) during a meeting of a governing board; or 4-15 (2) in the offices of a governing board, except at an 4-16 official social function of the board. 4-17 (b) Alcoholic beverages, other than beer and wine, may be 4-18 served at an official social function of a governing board only if 4-19 each drink is sold to the consumer at a cash bar or similar 4-20 arrangement operated at the function by a private holder of an 4-21 alcoholic beverage license or permit. 4-22 Sec. 51.739. TERM LIMITS. (a) A person who has been 4-23 appointed to or who has served on a governing board for a full 4-24 six-year term may not be appointed to or serve on that governing 4-25 board after that term. For the purposes of this subsection: 4-26 (1) a person is considered to be appointed to a full 4-27 term on a governing board if the person assumes office before the 5-1 end of the first year of the full term; and 5-2 (2) a person is considered to have served for a full 5-3 term if the person serves for at least five years and 185 days of 5-4 the full term. 5-5 (b) A person may not serve as the presiding officer of a 5-6 governing board for more than three years. 5-7 Sec. 51.740. REMOVAL OF MEMBER OF GOVERNING BOARD. It is a 5-8 ground for removal from a governing board if a member: 5-9 (1) is absent from each regularly scheduled board 5-10 meeting the member is eligible to attend during a six-month period; 5-11 (2) fails to comply with Section 61.083, as added by 5-12 Chapter 621, Acts of the 73rd Legislature, Regular Session, 1993; 5-13 (3) is finally convicted of a Class A or Class B 5-14 misdemeanor; or 5-15 (4) is indicted for or convicted of a felony. 5-16 SECTION 3. Section 54.051, Education Code, is amended by 5-17 adding Subsection (o) to read as follows: 5-18 (o) The governing board of a general academic teaching 5-19 institution or university system that includes one or more general 5-20 academic teaching institutions must hold a public hearing before 5-21 increasing a tuition rate it has the authority to determine under 5-22 this section. 5-23 SECTION 4. Subchapter E, Chapter 54, Education Code, is 5-24 amended by adding Section 54.542 to read as follows: 5-25 Sec. 54.542. PUBLIC HEARING BEFORE INCREASING FEE. The 5-26 governing board of a general academic teaching institution or 5-27 university system that includes one or more general academic 6-1 teaching institutions must hold a public hearing before increasing 6-2 the amount of a fee it has the authority to determine under this 6-3 subchapter. 6-4 SECTION 5. Section 61.066, Education Code, is amended by 6-5 adding Subsection (c) to read as follows: 6-6 (c) The board shall study the organization of the state's 6-7 general academic teaching institutions and university systems that 6-8 include one or more general academic teaching institutions and make 6-9 recommendations to the legislature not later than March 1, 1997, 6-10 concerning reorganization of those institutions and systems to 6-11 achieve maximum efficiency in the use of state money to operate the 6-12 state's system of higher education. In conducting the study, the 6-13 board shall consider assigning institutions that are not components 6-14 of a university system to a university system, assigning component 6-15 institutions of a university system to a different university 6-16 system, consolidating university systems, or establishing new 6-17 university systems. This subsection expires September 1, 1997. 6-18 SECTION 6. Sections 51.306 and 51.3061, Education Code, are 6-19 repealed. 6-20 SECTION 7. The change in law made by Section 51.739(a), 6-21 Education Code, as added by this Act, does not affect the 6-22 entitlement of a member of the governing board of a general 6-23 academic teaching institution or university system that includes 6-24 one or more general academic teaching institutions on the effective 6-25 date of this Act to continue to serve on the board for the 6-26 remainder of the member's term. The change in law made by that 6-27 section applies only to a term that begins on or after the 7-1 effective date of this Act. 7-2 SECTION 8. This Act takes effect September 1, 1995. 7-3 SECTION 9. The importance of this legislation and the 7-4 crowded condition of the calendars in both houses create an 7-5 emergency and an imperative public necessity that the 7-6 constitutional rule requiring bills to be read on three several 7-7 days in each house be suspended, and this rule is hereby suspended.