1-1  By:  Duncan (Senate Sponsor - Cain)                   H.B. No. 2448
    1-2        (In the Senate - Received from the House May 15, 1995;
    1-3  May 16, 1995, read first time and referred to Committee on Finance;
    1-4  May 23, 1995, reported favorably by the following vote:  Yeas 10,
    1-5  Nays 0; May 23, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to information from and policies of certain state agencies
    1-9  and the analysis of some of the information and policies.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  PURPOSE.  One of the primary goals of Texas state
   1-12  government is to ensure that the tax dollars of Texas citizens are
   1-13  used in the most effective manner.  One of the methods used by
   1-14  state government to ensure that this occurs is to collect
   1-15  information for the various agencies and organizations which
   1-16  receive state funding.  This process provides valuable information.
   1-17  However, it can also add substantial cost to the operation of state
   1-18  government.  To ensure that these reporting requirements do not
   1-19  unnecessarily add to the cost of state government, this bill
   1-20  proposes that the following criteria be applied to all existing and
   1-21  proposed reports required by any state agency of another state
   1-22  agency or institution of higher education.
   1-23        (a)  A specific rationale will be provided for each existing
   1-24  proposed report, specifying how the information collected will be
   1-25  used in the process of decision making and/or evaluation.
   1-26        (b)  The agency must verify that data which could be used for
   1-27  this purpose is not already available from some other source or may
   1-28  be found in a different format.
   1-29        (c)  An estimate or fiscal note will be provided regarding
   1-30  the cost to the agency providing this information.  This estimate
   1-31  must be verified by the agencies involved.
   1-32        (d)  The data collection instrument used by the collecting
   1-33  agency must be in a format which is compatible with that used by
   1-34  the majority of the agencies involved.  If no clear format exists,
   1-35  the collecting agency must work with the providing agencies to
   1-36  develop the least costly method of data collection.
   1-37        (e)  All agencies shall be required to complete a review of
   1-38  all reports required of other state agencies or institutions of
   1-39  higher education on a five-year basis.  This review would include
   1-40  specific examples of how the information in the report has been
   1-41  used, cost savings or increased operating efficiencies which are a
   1-42  result of the data collected, and the cost to providing agencies.
   1-43  This review would be provided to the respective oversight
   1-44  committees in the Texas Legislature and the state auditor to
   1-45  continue to review statewide reporting requirements and eliminate
   1-46  burdensome or unnecessary reporting.
   1-47        SECTION 2.  Section 6.111, State Purchasing and General
   1-48  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   1-49  amended to read as follows:
   1-50        Sec. 6.111.  DELEGATION OF AUTHORITY TO INSTITUTIONS OF
   1-51  HIGHER EDUCATION.  The commission may delegate to an institution of
   1-52  higher education the authority to enter into space lease contracts
   1-53  financed from sources other than funds appropriated from general
   1-54  revenue, provided that an institution of higher education may not
   1-55  enter a lease contract under this section unless it complies with
   1-56  the provisions of Article 9102, Revised Statutes, concerning
   1-57  architectural barriers.  Any reports on delegated space lease
   1-58  contracts of an institution of higher education shall be required
   1-59  on an annual basis.
   1-60        SECTION 3.  Section 14.03(a), State Purchasing and General
   1-61  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   1-62  amended to read as follows:
   1-63        (a)  The office of vehicle fleet maintenance shall establish
   1-64  a vehicle-reporting system to assist each state agency in the
   1-65  management of its vehicle fleet.  State agencies shall be required
   1-66  to submit such reports no more than semiannually.  The office shall
   1-67  develop computerized data retrieval systems to implement the
   1-68  reporting system and shall maintain a complete inventory of agency
    2-1  vehicles by class of vehicles.  The office shall determine the
    2-2  average cost of operation of the various classes of vehicles.
    2-3        SECTION 4.  Section 51.0051, Education Code, is amended to
    2-4  read as follows:
    2-5        Sec. 51.0051.  Annual Operating Budgets.  The governing board
    2-6  of each institution shall approve on or before September 1 of each
    2-7  year an itemized budget covering the operation of the institution
    2-8  for the fiscal year beginning on September 1 of each year.  The
    2-9  budget shall be prepared within the limits of legislatively
   2-10  appropriated general revenue and estimated educational and general
   2-11  funds.  The budget shall also include estimated institutional
   2-12  funds.  Copies of each such budget shall be furnished to the Texas
   2-13  Higher Education Coordinating Board for distribution to the
   2-14  Governor's Budget and Planning Office, Legislative Budget Board,
   2-15  <state auditor,> and Legislative Reference Library.  Additional
   2-16  copies shall be delivered to the Texas Higher Education
   2-17  Coordinating Board as required.  The governing board of the
   2-18  institution shall retain five copies of the budget for distribution
   2-19  to legislators or other state officials on request.
   2-20        SECTION 5.  Section 51.912(c), Education Code, is amended to
   2-21  read as follows:
   2-22        (c)  The <On November 1 of each year, the> governing board of
   2-23  each system and institution shall include in the appropriate annual
   2-24  report required by Section 51.005 <report to the governor and
   2-25  legislature> the information that is provided to it under
   2-26  Subsection (b) of this section during the preceding fiscal year.
   2-27        SECTION 6.  Section 54.506, Education Code, is amended to
   2-28  read as follows:
   2-29        Sec. 54.506.  FEES AND CHARGES FOR SERVICES TO THE PUBLIC;
   2-30  <REPORTS;> THE UNIVERSITY OF HOUSTON SYSTEM.  <(a)>  A schedule of
   2-31  minimum fees and charges shall be established by the board of
   2-32  regents of the University of Houston System for services performed
   2-33  by any department of a component institution for students and the
   2-34  public.  The schedule shall conform to the fees and charges
   2-35  customarily made for like services in the community.  By way of
   2-36  example, but not as a limitation, are services of the hearing
   2-37  clinic, optometry clinic, reading clinic, and data processing and
   2-38  computing center.
   2-39        <(b)  All fees and compensation derived from performing
   2-40  services shall be reported to the governor and to the Coordinating
   2-41  Board, Texas College and University System, annually, to the
   2-42  legislature at the beginning of each regular session, and to the
   2-43  board as required by it.  A brief statement of the firm, society,
   2-44  organization, or association using the facilities and the use made
   2-45  shall be included in each report.>
   2-46        SECTION 7.  Section 61.073, Education Code, is amended to
   2-47  read as follows:
   2-48        Sec. 61.073.  Allocation of Funds for Tuition and Fee
   2-49  Exemptions.  <(a)>  Funds shall be appropriated to the Texas Higher
   2-50  Education Coordinating Board<, Texas College and University
   2-51  System,> for allocation to each junior and community college in an
   2-52  amount equal to the total of all tuition and laboratory fees
   2-53  foregone each semester as a result of the tuition and laboratory
   2-54  fee exemptions required by law in Sections 54.201 through 54.209,
   2-55  Texas Education Code.
   2-56        <(b)  The governing board of each junior or community college
   2-57  shall report to the coordinating board the number of students
   2-58  enrolled on the 12th class day of each semester who were exempt
   2-59  from the payment of tuition and laboratory fees which would have
   2-60  been collected from the students if they had not been exempt from
   2-61  the payment thereof.  The coordinating board shall remit to each
   2-62  junior and community college an amount equal to the tuition and
   2-63  laboratory fees foregone from the funds appropriated for that
   2-64  purpose.>
   2-65        SECTION 8.  Sections 66.05(a) and (b), Education Code,  are
   2-66  amended to read as follows:
   2-67        (a)  Before December 1 of each year the board of regents of
   2-68  The University of Texas System shall prepare a written report
   2-69  providing statements of assets and a schedule of changes in book
   2-70  value of the investments <disclosing all details concerning the
    3-1  investments made and income realized> from the permanent university
    3-2  fund during the year ending August 31 preceding the publication of
    3-3  the report.
    3-4        (b)  The report shall contain a summary of all gains, losses
    3-5  and income from investments and an itemized list of all securities
    3-6  held for the fund on August 31<, a summary of investment changes
    3-7  during the preceding year, and a summary of all income realized
    3-8  from the various components of the fund>.  The report shall also
    3-9  contain any other information needed to clearly indicate the nature
   3-10  and extent of investments made of the fund and all income realized
   3-11  from the components of the fund.
   3-12        SECTION 9.  Section 66.06(b), Education Code, is amended to
   3-13  read as follows:
   3-14        (b)  The board of regents shall <employ a well-recognized
   3-15  performance measurement service to> evaluate and analyze the
   3-16  investment results of the permanent university fund.  The service
   3-17  shall compare investment results with the written investment
   3-18  objectives developed by the board of regents, and shall also
   3-19  compare the investment of the permanent university fund with the
   3-20  investment of other <public and private> funds operating  with
   3-21  substantially the same objectives and restrictions.
   3-22        SECTION 10.  Section 51.572, Education Code, is amended to
   3-23  read as follows:
   3-24        Sec. 51.572.  Disclosure of Gifts Required.  <(a)>  The
   3-25  governing board of any subject institution that receives a
   3-26  conditional gift from a foreign person or an agent or
   3-27  representative of a foreign person shall file with the secretary of
   3-28  state a disclosure statement in accordance with federal law.
   3-29        <(b)  Subsection (a) of this section applies only to a
   3-30  conditional gift that:>
   3-31              <(1)  has a value of more than $50,000;>
   3-32              <(2)  is one of multiple conditional gifts from the
   3-33  same foreign person in a single fiscal year with an aggregate value
   3-34  exceeding $50,000; or>
   3-35              <(3)  is one of multiple conditional gifts from two or
   3-36  more foreign persons in a single fiscal year which have an
   3-37  aggregate value exceeding $50,000 and which impose, request, or
   3-38  provide similar conditions.>
   3-39        <(c)  The governing board shall file a disclosure statement
   3-40  required by this section not later than the 30th day after the last
   3-41  day of the institution's fiscal year in which the conditional gift
   3-42  was received.>
   3-43        SECTION 11.  Section 51.573, Education Code, is amended to
   3-44  read as follows:
   3-45        Sec. 51.573.  Form of Statement.  <(a)>  The secretary of
   3-46  state shall prescribe the form and contents of a disclosure
   3-47  statement in accordance with federal law <required by this
   3-48  subchapter>.
   3-49        <(b)  The disclosure statement must include:>
   3-50              <(1)  the monetary value or amount of the conditional
   3-51  gift;>
   3-52              <(2)  the date the conditional gift was received by the
   3-53  institution;>
   3-54              <(3)  the name of the donor;>
   3-55              <(4)  if the donor is an entity described in Paragraph
   3-56  (C) or (D) of Subdivision (2) of Section 51.571 of this subchapter
   3-57  or a committee or other group described in Paragraph (E) of
   3-58  Subdivision (2) of Section 51.571 of this subchapter, the name and
   3-59  principal location or residence of each record and beneficial owner
   3-60  of any equity interest therein, each member thereof, and each
   3-61  person providing funding thereto;>
   3-62              <(5)  if the donor is an individual, the name of the
   3-63  country in which the donor resides;>
   3-64              <(6)  a detailed description of any conditions of the
   3-65  conditional gift and a copy of any written agreement or statement
   3-66  containing such conditions; and>
   3-67              <(7)  a statement of whether and how the institution
   3-68  intends to comply with the conditions of the conditional gift.>
   3-69        SECTION 12.  Sec. 31.155(b), Natural Resources Code, is
   3-70  amended to read as follows:
    4-1        (b)  The State Department of Highways and Public
    4-2  Transportation, or the Texas National Research Laboratory
    4-3  Commission, on the request of the division, shall submit its real
    4-4  property inventory records to the division.  The real property
    4-5  inventory records of an institution of higher education, the
    4-6  Employees Retirement System of Texas, and the Teacher Retirement
    4-7  System of Texas, on the request of the division, but not more than
    4-8  semiannually, shall be submitted to the division for information
    4-9  purposes only.
   4-10        SECTION 13.  The following provisions of the Education Code
   4-11  are repealed:
   4-12              (1)  Section 61.0571;
   4-13              (2)  Section 51.507;
   4-14              (3)  Section 61.080;
   4-15              (4)  Section 61.083(b)-(d), as amended by Section 1,
   4-16  Chapter 363, Acts of the 73rd Legislature, 1993;
   4-17              (5)  Section 101.21; and
   4-18              (6)  Section 111.32.
   4-19        SECTION 14.  The importance of this legislation and the
   4-20  crowded condition of the calendars in both houses create an
   4-21  emergency and an imperative public necessity that the
   4-22  constitutional rule requiring bills to be read on three several
   4-23  days in each house be suspended, and this rule is hereby suspended,
   4-24  and that this Act take effect and be in force from and after its
   4-25  passage, and it is so enacted.
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