S.B. No. 1228
AN ACT
1-1 relating to review of certain educational institutions by the state
1-2 postsecondary review entity.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 61, Education Code, is amended by adding
1-5 Subchapter Q to read as follows:
1-6 SUBCHAPTER Q. STATE POSTSECONDARY REVIEW PROGRAM
1-7 Sec. 61.791. DEFINITIONS. In this subchapter:
1-8 (1) "Entity" means the state postsecondary review
1-9 entity designated by the governor by agreement with the United
1-10 States Secretary of Education under 20 U.S.C. Chapter 28,
1-11 Subchapter IV, Part G, Subpart 1 (20 U.S.C. Section 1099a et seq.).
1-12 (2) "Program" means the state postsecondary review
1-13 program authorized under 20 U.S.C. Chapter 28, Subchapter IV, Part
1-14 G, Subpart 1 (20 U.S.C. Section 1099a et seq.).
1-15 (3) "Educational institution" means an institution of
1-16 higher education, private or independent institution of higher
1-17 education, private postsecondary educational institution, or
1-18 educational or training establishment, as those terms are defined
1-19 in this chapter.
1-20 Sec. 61.792. AGREEMENT. The governor may enter into an
1-21 agreement with the United States Secretary of Education under 20
1-22 U.S.C. Chapter 28, Subchapter IV, Part G, Subpart 1 (20 U.S.C.
1-23 Section 1099a et seq.), to participate in the program. The
2-1 agreement must designate the entity to administer the program.
2-2 Sec. 61.793. NOTICE. As soon as practicable after beginning
2-3 the review, the entity shall notify an educational institution
2-4 whose activities are being reviewed under the program that the
2-5 review has begun. The notice shall describe the acts and
2-6 circumstances giving rise to the review in sufficient detail to
2-7 provide the institution with notice of the allegations made.
2-8 Sec. 61.794. CIVIL INVESTIGATIVE DEMAND. (a) An authorized
2-9 employee or agent of the entity may execute in writing and serve on
2-10 an educational institution under review a civil investigative
2-11 demand requiring the institution to produce documents and records
2-12 or permit inspection and copying of documents and records.
2-13 (b) A civil investigative demand must:
2-14 (1) describe the documents and records to be produced
2-15 or made available with reasonable specificity so as to fairly
2-16 identify the material demanded;
2-17 (2) state the date the documents and records are to be
2-18 produced or made available; and
2-19 (3) identify the employee or agent of the entity to
2-20 whom the documents and records are to be delivered or made
2-21 available.
2-22 (c) The entity may serve a civil investigative demand on an
2-23 educational institution's president, chief financial officer, or
2-24 registered agent for service of process.
2-25 (d) Service of a civil investigative demand may be made by:
3-1 (1) personal service of an executed copy of the
3-2 demand; or
3-3 (2) mailing of an executed copy of the demand by
3-4 certified mail.
3-5 (e) An educational institution shall produce documents or
3-6 records demanded under this section during normal business hours at
3-7 the institution's normal place of business or at the time and place
3-8 on which the institution and the staff of the entity agree.
3-9 (f) If an educational institution does not comply with a
3-10 civil investigative demand under this section, the entity may file
3-11 a petition for an order of enforcement in a district court in the
3-12 county in which the institution is located and serve the petition
3-13 on a person designated in Subsection (c). The court may enter any
3-14 order necessary to enforce the demand. Failure to comply with a
3-15 final order entered under this subsection is punishable by
3-16 contempt. A final order entered under this subsection may be
3-17 appealed to the Supreme Court of Texas.
3-18 Sec. 61.795. JUDICIAL REVIEW. (a) An educational
3-19 institution may appeal a decision rendered by the entity in a
3-20 contested case brought under the program. The court shall
3-21 determine the appeal under the substantial evidence rule.
3-22 (b) Except as provided by Section 61.794, an action brought
3-23 under the program shall be brought in a district court in Travis
3-24 County.
3-25 Sec. 61.796. CONFIDENTIALITY. (a) Investigative
4-1 information obtained by the entity or an employee or agent of the
4-2 entity as a result of the review of an educational institution,
4-3 including complaints received, investigation files and reports, and
4-4 documentary material produced under Section 61.794, is privileged
4-5 and confidential. Except as provided by Subsection (c), (d), or
4-6 (e) or as ordered by a court for good cause shown, investigative
4-7 information obtained during the review of an institution may not be
4-8 disclosed to a person other than the entity or an authorized
4-9 employee or agent of the entity.
4-10 (b) The entity may use investigative information obtained
4-11 during a review of an institution in an enforcement action brought
4-12 under the program. Except as provided by the Texas Rules of Civil
4-13 Procedure or the Texas Rules of Civil Evidence, while an action
4-14 against an educational institution is pending the entity may not be
4-15 required to produce investigative reports or memoranda,
4-16 attorney-client communications, attorney-work product, or other
4-17 materials protected by a privilege or to disclose the identity of
4-18 nontestifying complainants. On final adjudication of an action
4-19 brought by the entity against an educational institution or on
4-20 completion of a review of the institution without any action being
4-21 taken against the institution, the investigative information
4-22 obtained during the review is available as provided by the open
4-23 records law, Chapter 552, Government Code.
4-24 (c) Investigative information in the possession of the
4-25 entity or an authorized employee or agent of the entity may be
5-1 disclosed to an appropriate law enforcement authority if it relates
5-2 to an investigation of an educational institution in another state,
5-3 territory, or country if that institution has a branch campus or
5-4 home office in this state.
5-5 (d) If investigative information in the possession of the
5-6 entity or an authorized employee or agent of the entity indicates
5-7 that a crime may have been committed, the entity shall report the
5-8 information to the appropriate law enforcement agency in accordance
5-9 with law. Confidential information disclosed by the entity to a
5-10 law enforcement agency remains confidential and may not be
5-11 disclosed by the investigating agency except as necessary to
5-12 further the investigation or prosecute a criminal violation.
5-13 (e) If investigative information in the possession of the
5-14 entity or an authorized employee or agent of the entity indicates a
5-15 potential violation of another law for which an educational
5-16 institution may be liable, the entity may disclose relevant
5-17 investigative information to the institution's governing board.
5-18 Sec. 61.797. IMMUNITY. A person who, in good faith, assists
5-19 the entity in the performance of the program is immune from suit by
5-20 a private party.
5-21 SECTION 2. This Act takes effect September 1, 1995.
5-22 SECTION 3. The importance of this legislation and the
5-23 crowded condition of the calendars in both houses create an
5-24 emergency and an imperative public necessity that the
5-25 constitutional rule requiring bills to be read on three several
6-1 days in each house be suspended, and this rule is hereby suspended.