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.