By Duncan                                             H.B. No. 2448
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to eliminating, consolidating, or revising certain reports
    1-3  relating to institutions of higher education.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  PURPOSE.  One of the primary goals of Texas state
    1-6  government is to ensure that the tax dollars of Texas citizens are
    1-7  used in the most effective manner.  One of the methods used by
    1-8  state government to ensure that this occurs is to collect
    1-9  information for the various agencies and organizations which
   1-10  receive state funding.  This process provides valuable information.
   1-11  However, it can also add substantial cost to the operation of state
   1-12  government.  To ensure that these reporting requirements do not
   1-13  unnecessarily add to the cost of state government, this bill
   1-14  proposes that the following criteria be applied to all existing and
   1-15  proposed reports required by any state agency of another state
   1-16  agency or institution of higher education.
   1-17        (a)  A specific rational will be provided for each existing
   1-18  proposed report, specifying how the information collected will be
   1-19  used in the process of decision-making and/or evaluation.
   1-20        (b)  The agency must verify that data which could be used for
   1-21  this purpose is not already available from some other source or may
   1-22  be found in a different format.
   1-23        (c)  Provide an estimate or fiscal note regarding the cost to
    2-1  the agency providing this information.  This estimate must be
    2-2  verified by the agencies involved.
    2-3        (d)  The data collection instrument used by the collecting
    2-4  agency must be in a format which is compatible with that used by
    2-5  the majority of the agencies involved.  If no clear format exists
    2-6  the collecting agency must work with the providing agencies to
    2-7  develop the least costly method of data collection.
    2-8        (e)  Require that all agencies complete a review of all
    2-9  reports required of other state agencies or institutions of higher
   2-10  education on a five-year basis.  This review would include specific
   2-11  examples of how the information in the report has been used, cost
   2-12  savings or increased operating efficiencies which are a result of
   2-13  the data collected and the cost to providing agencies.  This review
   2-14  would be provided to the respective oversight committees in the
   2-15  Texas Legislature and the State Auditor to continue to review
   2-16  statewide reporting requirements and eliminate burdensome or
   2-17  unnecessary reporting.
   2-18        SECTION 2.  Article 601(b), Sec. 6.111,  Vernon's Civil
   2-19  Statues, is amended to read as follows:
   2-20        Sec. 6.111.  The commission may delegate to an institution of
   2-21  higher education the authority to enter into space lease contracts
   2-22  financed from sources other than funds appropriated from general
   2-23  revenue, provided that an institution of higher education may not
   2-24  enter a lease contract under this section unless it complies with
   2-25  the provisions of Article 9102, Revised Statutes concerning
    3-1  architectural barriers.  Any reports on delegated space lease
    3-2  contracts of an institution of higher education shall be required
    3-3  on an annual basis.
    3-4        SECTION 3.  Article 601b, Sec. 14.03(a), Vernon's Civil
    3-5  Statutes, is amended to read as follows:
    3-6        Sec. 14.03.  (a)  The office of vehicle fleet maintenance
    3-7  shall establish a vehicle-reporting system to assist each state
    3-8  agency in the management of its vehicle fleet.  State agencies
    3-9  shall be required to submit such reports no more than
   3-10  semi-annually.  The office shall develop computerized data
   3-11  retrieval systems to implement the reporting system and shall
   3-12  maintain a complete inventory of agency vehicles by class of
   3-13  vehicles.  The office shall determine the average cost of operation
   3-14  of the various classes of vehicles.
   3-15        SECTION 4.  Section 51.0051, Education Code, is amended to
   3-16  read as follows:
   3-17        Sec. 51.0051.  Annual Operating Budgets.  The governing board
   3-18  of each institution shall approve on or before September 1 of each
   3-19  year an itemized budget covering the operation of the institution
   3-20  for the fiscal year beginning on September 1 of each year.  The
   3-21  budget shall be prepared within the limits of legislatively
   3-22  appropriated general revenue and estimated educational and general
   3-23  funds.  The budget shall also include estimated institutional
   3-24  funds.  Copies of each budget shall be furnished to the Texas
   3-25  Higher Education Coordinating Board for distribution to the
    4-1  Governor's Budget and Planning Office, Legislative Budget Board,
    4-2  <state auditor,> and Legislative Reference Library.  Additional
    4-3  copies shall be delivered to the Texas Higher Education
    4-4  Coordinating Board as required.  The governing board of the
    4-5  institution shall retain five copies of the budget for distribution
    4-6  to legislators or other state officials on request.
    4-7        SECTION 5.  Section 51.912(c), Education Code, is amended to
    4-8  read as follows:
    4-9        (c)  The <On November 1 of each year, the> governing board of
   4-10  each system and institution shall include in the appropriate annual
   4-11  report required by Section 51.005 <report to the governor and
   4-12  legislature> the information that is provided to it under
   4-13  Subsection (b) of this section during the preceding fiscal year.
   4-14        SECTION 6.  Section 54.506, Education Code, is amended to
   4-15  read as follows:
   4-16        Sec. 54.506.  FEES AND CHARGES FOR SERVICES TO THE PUBLIC;
   4-17  <REPORTS,> THE UNIVERSITY OF HOUSTON SYSTEM.  <(a)>  A schedule of
   4-18  minimum fees and charges shall be established by the board of
   4-19  regents of the University of Houston System for services performed
   4-20  by any department of a component institution for students and the
   4-21  public.  The schedule shall conform to the fees and charges
   4-22  customarily made for like services in the community.  By way of
   4-23  example, but not as a limitation, are services of the hearing
   4-24  clinic, optometry clinic, reading clinic, and data processing and
   4-25  computing center.
    5-1        <(b)  All fees and compensation derived from performing
    5-2  services shall be reported to the governor and to the Coordinating
    5-3  Board, Texas College and University System, annually, to the
    5-4  legislature at the beginning of each regular session, and to the
    5-5  board as required by it.  A brief statement of the firm, society,
    5-6  organization, or association using the facilities and the use made
    5-7  shall be included in each report.>
    5-8        SECTION 7.  Section 61.073, Education Code, is amended to
    5-9  read as follows:
   5-10        Sec. 61.073.  Allocation of Funds for Tuition and Fee
   5-11  Exemptions.  <(a)>  Funds shall be appropriated to the Texas Higher
   5-12  Education Coordinating Board<, Texas College and University
   5-13  System,> for allocation to each junior and community college in an
   5-14  amount equal to the total of all tuition and laboratory fees
   5-15  foregone each semester as a result of the tuition and laboratory
   5-16  fee exemptions required by law in Sections 54.201 through 54.209,
   5-17  Texas Education Code.
   5-18        <(b)  The governing board of each junior or community college
   5-19  shall report to the coordinating board the number of students
   5-20  enrolled on the 12th class day of each semester who were exempt
   5-21  from the payment of tuition and laboratory fees which would have
   5-22  been collected from the students if they had not been exempt from
   5-23  the payment thereof.  The coordinating board shall remit to each
   5-24  junior and community college an amount equal to the tuition and
   5-25  laboratory fees foregone from the funds appropriated for that
    6-1  purpose.>
    6-2        SECTION 8.  Subsections (a) and (b), Section 66.05, Education
    6-3  Code,  are amended to read as follows:
    6-4        (a)  Before December 1 of each year the board of regents of
    6-5  The University of Texas System shall prepare a written report
    6-6  providing statements of assets and a schedule of changes in book
    6-7  value of the investments <disclosing all details concerning the
    6-8  investments made and income realized> from the permanent university
    6-9  fund during the year ending August 31 preceding the publication of
   6-10  the report.
   6-11        (b)  The report shall contain a summary of all gains, losses
   6-12  and income from investments and an itemized list of all securities
   6-13  held for the fund on August 31<, a summary of investment changes
   6-14  during the preceding year, and a summary of all income realized
   6-15  from the various components of the fund>.  The report shall also
   6-16  contain any other information needed to clearly indicate the nature
   6-17  and extent of investments made of the fund and all income realized
   6-18  from the components of the fund.
   6-19        SECTION 9.  Section 66.06 (b), Education Code, is amended to
   6-20  read as follows:
   6-21        (b)  The board of regents shall <employ a well-recognized
   6-22  performance measurement service to> evaluate and analyze the
   6-23  investment results of the permanent university fund.  The service
   6-24  shall compare investment results with the written investment
   6-25  objectives developed by the board of regents, and shall also
    7-1  compare the investment of the permanent university fund with the
    7-2  investment of other <public and private> funds operating  with
    7-3  substantially the same objectives and restrictions.
    7-4        SECTION 10.  Section 51.572, Education Code, is amended to
    7-5  read as follows:
    7-6        Sec. 51.572.  Disclosure of Gifts Required.  <(a)>  The
    7-7  governing board of any subject institution that receives a
    7-8  conditional gift from a foreign person or an agent or
    7-9  representative of a foreign person shall file with the secretary of
   7-10  state a disclosure statement in accordance with federal law.
   7-11        <(b)  Subsection (a) of this section applies only to a
   7-12  conditional gift that:>
   7-13              <(1)  has a value of more than $50,000;>
   7-14              <(2)  is one of multiple conditional gifts from the
   7-15  same foreign person in a single fiscal year with an aggregate value
   7-16  exceeding $50,000; or>
   7-17              <(3)  is one of multiple conditional gifts from two or
   7-18  more foreign persons in a single fiscal year which have an
   7-19  aggregate value exceeding $50,000 and which impose, request, or
   7-20  provide similar conditions.>
   7-21        <(c)  The governing board shall file a disclosure statement
   7-22  required by this section not later than the 30th day after the last
   7-23  day of the institution's fiscal year in which the conditional gift
   7-24  was received.>
   7-25        SECTION 11.  Section 51.573, Education Code, is amended to
    8-1  read as follows:
    8-2        Sec. 51.573.  Form of Statement.  <(a)>  The secretary of
    8-3  state shall prescribe the form and contents of a disclosure
    8-4  statement in accordance with federal law <required by this
    8-5  subchapter>.
    8-6        <(b)  The disclosure statement must include:>
    8-7              <(1)  the monetary value or amount of the conditional
    8-8  gift;>
    8-9              <(2)  the date the conditional gift was received by the
   8-10  institution;>
   8-11              <(3)  the name of the donor;>
   8-12              <(4)  if the donor is an entity described in Paragraph
   8-13  (C) or (D) of Subdivision (2) of Section 51.571 of this subchapter
   8-14  or a committee or other group described in Paragraph (E) of
   8-15  Subdivision (2) of Section 51.571 of this subchapter, the name and
   8-16  principal location or residence of each record and beneficial owner
   8-17  of any equity interest therein, each member thereof, and each
   8-18  person providing funding thereto;>
   8-19              <(5)  if the donor is an individual, the name of the
   8-20  country in which the donor resides;>
   8-21              <(6)  a detailed description of any conditions of the
   8-22  conditional gift and a copy of any written agreement or statement
   8-23  containing such conditions; and>
   8-24              <(7)  a statement of whether and how the institution
   8-25  intends to comply with the conditions of the conditional gift.>
    9-1        SECTION 12.  Sec. 31.157(b), Natural Resources Code, is
    9-2  amended to read as follows:
    9-3        (b)  The State Department of Highways and Public
    9-4  Transportation, or the Texas National Research Laboratory
    9-5  commission, on the request of the division, shall submit its real
    9-6  property inventory records to the division.  The real property
    9-7  inventory records of an institution of higher education, the
    9-8  Employees Retirement System of Texas, and the Teacher Retirement
    9-9  System of Texas, on the request of the division, but not more than
   9-10  semi-annually, shall be submitted to the division for information
   9-11  purposes only.
   9-12        SECTION 13.  The following provisions of the Education Code
   9-13  are repealed:
   9-14              (1)  Section 61.0571;
   9-15              (2)  Section 51.507;
   9-16              (3)  Section 61.080;
   9-17              (4)  Section 61.083 (b-d), Acts of 1993, 73rd
   9-18  Legislature, Chapter 363, Section 1;
   9-19              (5)  Section 101.21; and
   9-20              (6)  Section 111.32.
   9-21        SECTION 14.  The importance of this legislation and the
   9-22  crowded condition of the calendars in both houses create an
   9-23  emergency and an imperative public necessity that the
   9-24  constitutional rule requiring bills to be read on three several
   9-25  days in each house be suspended, and this rule is hereby suspended,
   10-1  and that this Act take effect and be in force from and after its
   10-2  passage, and it is so enacted.