By: Barrientos S.B. No. 1228
A BILL TO BE ENTITLED
AN ACT
1-1 relating to actions by the State Postsecondary Review Entity.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Chapter 61, Education Code, is amended by adding
1-4 Subchapter P to read as follows:
1-5 SUBCHAPTER P. STATE POSTSECONDARY REVIEW PROGRAM
1-6 Sec. 1.01. PURPOSE. The purpose of this subchapter is to
1-7 facilitate implementation of the State Postsecondary Review Program
1-8 authorized under the Higher Education Act of 1965, as amended.
1-9 Sec. 1.02. DEFINITIONS. (a) "Entity" means the Texas State
1-10 Postsecondary Review Entity as designated by the Governor, in an
1-11 agreement with the United States Secretary of Education, to
1-12 administer the State Postsecondary Review Program. The Texas
1-13 Higher Education Coordinating Board has been designated as the
1-14 State Postsecondary Review Entity in Texas. For purposes of this
1-15 subchapter, entity means the Higher Education Coordinating Board
1-16 and any designee or successor; and
1-17 (b) "Program" means the State Postsecondary Review Program
1-18 authorized under the Higher Education Act of 1965 (Title IV, Part
1-19 H, Subpart I, United States Code Annotated, as amended) to reduce
1-20 fraud and abuse in the federally guaranteed student loan program
1-21 through state oversight and review of identified postsecondary
1-22 educational institutions.
1-23 Sec. 1.03. JURISDICTION. The district court of Travis
2-1 County shall have jurisdiction to hear and determine appeals of a
2-2 decision rendered have jurisdiction to hear and determine appeals
2-3 of a decision rendered by the entity in a contested case brought
2-4 pursuant to the program. The scope of judicial review of any
2-5 appeal shall be pursuant to the substantial evidence rule.
2-6 Sec. 1.04. VENUE. Except as provided in Sec. 1.07, any
2-7 action brought pursuant to the program shall be brought in district
2-8 court in Travis County. Any action brought against the entity
2-9 arising from the program shall be brought in district court in
2-10 Travis County.
2-11 Sec. 1.05. IMMUNITY. There shall be no private cause of
2-12 action against any person who, in good faith, assists the entity in
2-13 the performance of program review activities.
2-14 Sec. 1.06. NOTICE. Any institution that is the subject of a
2-15 review by the entity shall be provided with notice that a review of
2-16 its activities has been commenced. The notice shall contain a
2-17 description of the acts, conduct and circumstances giving rise to
2-18 the review in sufficient detail so the institution will understand
2-19 the allegations made.
2-20 Sec. 1.07. CONFIDENTIALITY. (a) All investigative
2-21 information obtained by the entity or its employees or agents as a
2-22 result of the review of an institution, including complaints
2-23 received, investigation files and reports, and documentary material
2-24 produced pursuant to section 1.04, are privileged and confidential.
2-25 Except as provided in subsections (c), (d), and (e), no information
3-1 obtained during the review of an institution, unless otherwise
3-2 ordered by a court for good cause shown, shall be disclosed or
3-3 produced to any person other than the entity or an authorized
3-4 employee or agent of the entity.
3-5 (b) The entity may use investigative information obtained
3-6 during a review of an institution in any enforcement action brought
3-7 pursuant to the program. Except as provided by the Texas Rules of
3-8 Civil Procedure or the Texas Rules of Civil Evidence, during the
3-9 pendency of an action brought against a postsecondary institution,
3-10 the entity shall not be required to produce investigative reports
3-11 or memoranda, the identity of non-testifying complainants,
3-12 attorney-client communications, attorney-work product, or other
3-13 materials protected by a privilege. Upon final adjudication of an
3-14 action brought against a postsecondary institution by the entity or
3-15 when a review is completed with no action taken against an
3-16 institution, the entity shall make records concerning the review
3-17 available as required by the Texas Open Records Act.
3-18 (c) Investigative information in the possession of the
3-19 entity or its authorized employees or agents may be disclosed to an
3-20 appropriate law enforcement authority when it relates to an
3-21 investigation of an institution in another state, territory, or
3-22 country when that institution also has a branch campus or home
3-23 office in the State of Texas.
3-24 (d) If investigative information in the possession of the
3-25 entity or its authorized employees or agents indicates that a crime
4-1 may have been committed, the entity shall report the information to
4-2 the appropriate law enforcement agency in accordance with law. Any
4-3 information disclosed by the entity to a law enforcement agency
4-4 shall remain confidential and shall not be disclosed by the
4-5 investigating agency except as necessary to further the
4-6 investigation or prosecute a criminal violation.
4-7 (e) If investigative information in the possession of the
4-8 entity or its authorized employees or agents indicates a potential
4-9 violation of another law for which the institution may be liable
4-10 the entity may disclose relevant investigative information to the
4-11 institution's governing board.
4-12 Sec. 1.08. CIVIL INVESTIGATIVE DEMAND. (a) An authorized
4-13 employee or agent of the entity may execute in writing and serve on
4-14 the institution under review a civil investigative demand requiring
4-15 the institution to produce documents and records and/or permit
4-16 inspection and copying of such documents and records.
4-17 (b) Each civil investigative demand shall:
4-18 (1) describe the documents and records to be produced
4-19 with reasonable specificity so as to fairly indicate the material
4-20 demanded;
4-21 (2) prescribe a return date within which the documents
4-22 and records are to be produced; and
4-23 (3) identify the entity employee or agent to whom the
4-24 documents and records are to be produced or made available for
4-25 inspection and copying.
5-1 (c) For purposes of this section, service upon the
5-2 institution may be accomplished by serving the institution's
5-3 president, its chief financial officer or its registered agent for
5-4 service of process.
5-5 (d) Service of the demand may be made by:
5-6 (1) delivery of a duly executed copy of the demand; or
5-7 (2) mailing a duly executed copy of the demand by
5-8 certified mail.
5-9 (e) Documents or records demanded pursuant to this section
5-10 shall be produced during normal business hours at the institution's
5-11 normal place of business or at such time and place as may be agreed
5-12 upon by the institution and entity staff.
5-13 (f) If an institution fails to comply with a civil
5-14 investigative demand for documents or records served on it pursuant
5-15 to this section, or if satisfactory copying or reproduction of the
5-16 material cannot be performed and the institution refuses to
5-17 surrender the material, the entity may file in the district court
5-18 in the county in which the institution is located, and serve on any
5-19 of the individuals designated in subsection (c), a petition for an
5-20 order of enforcement.
5-21 (g) A district court in the county where the institution is
5-22 located shall have jurisdiction to hear and determine this matter
5-23 and enter any order required to carry into effect the provisions of
5-24 this section. Any final order entered is subject to appeal to the
5-25 Texas Supreme Court. Failure to comply with any final order
6-1 entered under this section is punishable by contempt.
6-2 SECTION 2. The importance of this legislation and the
6-3 crowded condition of the calendars in both houses create an
6-4 emergency and in imperative public necessity that the
6-5 constitutional rule requiring bills to be read on three several
6-6 days in each house be suspended, and this rule is hereby suspended.