SRC-AAA S.B. 179 75(R)    BILL ANALYSIS


Senate Research CenterS.B. 179
By: Barrientos
Jurisprudence
3-26-97
As Filed


DIGEST 

Recently, the federal court case, Hopwood vs. the State of Texas, has lead
to policies prohibiting the consideration of race in Texas university
admissions, financial aid and student retention programs. As a result,
many employees who make admissions decisions may be apprehensive and
overly cautious when considering minorities.  Many fear that they may be
held personally liable for their decisions. S.B. 179 mandates that all
employees of a general academic teaching institution or medical and dental
unit who make decisions within the course and scope of their duties shall
be indemnified by the state for actual damages, court costs, and
attorney's fees in a cause of action that may be made against them.  This
bill also clarifies that all employees who make admissions decisions
within the course and scope of duties would be indemnified. 

PURPOSE

As proposed, S.B. 179 mandates that all employees of a general academic
teaching institution or medical and dental unit who make decisions within
the course and scope of their duties shall be indemnified by the state for
actual damages, court costs, and attorney's fees in a cause of action that
may be made against them. This bill clarifies that all employees who make
admissions decisions within the course and scope of duties would be
indemnified. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 104, Civil Practice and Remedies Code, by adding
Section 104.009, as follows: 

Sec. 104.009.  INDEMNIFICATION OF CERTAIN HIGHER EDUCATION EMPLOYEES.
Requires the state to indemnify an employee of a general academic teaching
institution or a medical and dental unit for actual damages, court costs,
and attorney's fees, in a cause of action against the employee based on
conduct of the employee in making a decision on an individual's admission
to the institution.  Provides that the state is liable for indemnification
only if damages are based on an employee's action in the course and scope
of employment and in good faith in accordance with general academic
teaching institution's or a medical and dental unit's policies.  Requires
the state to pay an amount from the indemnity account created by Section
54.546, Education Code. Defines "general academic teaching institution"
and "medical or dental unit." 

SECTION 2. Amends Chapter 54E, Education Code, by adding Section 54.546,
as follows:    

Sec. 54.546. INDEMNIFICATION FEE.  Requires a general academic teaching
institution or medical or dental unit to collect a fee of $1 per semester
per student enrolled. Requires the fee to be sent to the comptroller, to
be credited to the indemnity account.  Requires payment from the indemnity
account to pay only an amount under Section 104.009, Civil Practice and
Remedies Code.  Defines "general academic teaching institution" and
"medical or dental unit." 

 SECTION 3. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 4. Emergency clause.