By Ogden                                         S.B. No. 906

      75R6354 JSA-D                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the admission standards, tuition, fees, and governing

 1-3     boards of institutions of higher education and university systems

 1-4     and to testing and remedial education by general academic teaching

 1-5     institutions.

 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-7         ARTICLE 1.  ADMISSION STANDARDS OF AND TESTING AND REMEDIAL

 1-8             EDUCATION BY GENERAL ACADEMIC TEACHING INSTITUTIONS

 1-9           SECTION 1.01.  Section 51.306, Education Code, is amended by

1-10     adding Subsection (x) to read as follows:

1-11           (x)  This section is optional for a student who meets or

1-12     exceeds campus admission standards at a general academic teaching

1-13     institution for which the governing board in its sole discretion

1-14     has set campus admission standards that assure that at least 90

1-15     percent of the students admitted are prepared to do college-level

1-16     work.

1-17           SECTION 1.02.  Section 51.3061, Education Code, is amended by

1-18     amending Subsection (a) and adding Subsection (h) to read as

1-19     follows:

1-20           (a)  In this section:

1-21                 (1)  "Agency" means the Texas [Central] Education

1-22     Agency.

1-23                 (2)  "Coordinating board" means the Texas Higher

1-24     Education Coordinating Board.

 2-1                 (3)  "Deaf student" means a student who is a deaf

 2-2     person, as defined by Section 54.205(a) of this code.

 2-3                 (4)  "General academic teaching institution" and

 2-4     "institution [Institution] of higher education" have [has] the

 2-5     meanings [meaning] assigned by Section 61.003 of this code.

 2-6           (h)  This section is optional for a student who meets or

 2-7     exceeds campus admission standards at a general academic teaching

 2-8     institution for which the governing board in its sole discretion

 2-9     has set campus admission standards that assure that at least 90

2-10     percent of the students admitted are prepared to do college-level

2-11     work.

2-12                 ARTICLE 2.  LIMITATIONS ON GOVERNING BOARDS

2-13                OF GENERAL ACADEMIC TEACHING INSTITUTIONS AND

2-14                             UNIVERSITY SYSTEMS

2-15           SECTION 2.01.  Chapter 51, Education Code, is amended by

2-16     adding Subchapter S to read as follows:

2-17          SUBCHAPTER S.  LIMITATIONS ON GOVERNING BOARDS OF GENERAL

2-18            ACADEMIC TEACHING INSTITUTIONS AND UNIVERSITY SYSTEMS

2-19           Sec. 51.781.  APPLICATION.  This subchapter applies to the

2-20     governing board of each general academic teaching institution and

2-21     of each university system that includes one or more general

2-22     academic teaching institutions.

2-23           Sec. 51.782.  DEFINITIONS.  In this subchapter, "general

2-24     academic teaching institution" and "university system" have the

2-25     meanings assigned by Section 61.003.

2-26           Sec. 51.783.  LIMITATION ON EXPENDITURES BY GOVERNING BOARD.

2-27     (a)  The legislature by appropriation shall determine the amount

 3-1     each governing board may spend annually in the performance of its

 3-2     duties.  A governing board may not spend in the performance of its

 3-3     duties money not expressly appropriated for that purpose.

 3-4           (b)  A governing board may spend an amount greater than the

 3-5     amount provided by Subsection (a) if the expenditure is approved

 3-6     under Chapter 317, Government Code.

 3-7           (c)  This section does not apply to money spent by a member

 3-8     of a governing board on the member's own behalf in the performance

 3-9     of the member's duties if the member is not reimbursed for that

3-10     expenditure.

3-11           Sec. 51.784.  NAMING OF BUILDING OR FACILITY BY GOVERNING

3-12     BOARD.  A governing board may not name a building or other facility

3-13     or approve the naming of a building or other facility in honor of a

3-14     member of the board or a person related to a member of the board

3-15     within the first degree by affinity or consanguinity as determined

3-16     under Chapter 573, Government Code:

3-17                 (1)  while the member serves on the board; or

3-18                 (2)  before the fourth anniversary of the date the

3-19     member ceases to be a member of the board.

3-20           Sec. 51.785.  EMPLOYMENT OF MEMBER OF GOVERNING BOARD BY

3-21     INSTITUTION OR SYSTEM.   (a)  A general academic teaching

3-22     institution or a university system that includes one or more

3-23     general academic teaching institutions may not employ a member of

3-24     the governing board of the institution or system or a person

3-25     related to a member within the first degree by affinity or

3-26     consanguinity as determined under Chapter 573, Government Code, as

3-27     an administrator with supervisory or managerial responsibilities:

 4-1                 (1)  while the member serves on the board; or

 4-2                 (2)  before the fourth anniversary of the date the

 4-3     member ceases to be a member of the board.

 4-4           (b)  A general academic teaching institution or a university

 4-5     system that includes one or more general academic teaching

 4-6     institutions may not employ a member of the governing board of the

 4-7     institution or system as a faculty member or other employee:

 4-8                 (1)  while the member serves on the board; or

 4-9                 (2)  before the first anniversary of the date the

4-10     member ceases to be a member of the board.

4-11           Sec. 51.786.  CONTRACTING WITH MEMBER OF GOVERNING BOARD BY

4-12     INSTITUTION OR SYSTEM.  (a)  A general academic teaching

4-13     institution or a university system that includes one or more

4-14     general academic teaching institutions may not enter into a

4-15     contract with a member of the governing board of the institution or

4-16     system, a person related to a member within the first degree by

4-17     affinity or consanguinity as determined under Chapter 573,

4-18     Government Code, or a business entity in which a member or a person

4-19     related to a member has a substantial interest:

4-20                 (1)  while the member serves on the board; or

4-21                 (2)  before the fourth anniversary of the date the

4-22     member ceases to be a member of the board.

4-23           (b)  For the purposes of this section, a person has a

4-24     substantial interest in a business entity if the interest is

4-25     ownership of at least:

4-26                 (1)  five percent of the voting stock or shares of the

4-27     business entity; or

 5-1                 (2)  five percent of the fair market value of the

 5-2     business entity.

 5-3           (c)  This section does not apply to an employment contract.

 5-4           (d)  In this section, "business entity" means a sole

 5-5     proprietorship, partnership, joint venture, firm, corporation,

 5-6     holding company, joint-stock company, receivership, trust, or other

 5-7     entity recognized by law.

 5-8           Sec. 51.787.  PURCHASE AND CONSUMPTION OF ALCOHOLIC

 5-9     BEVERAGES.  (a)  Alcoholic beverages may be purchased for

5-10     consumption at a function of the governing board of a general

5-11     academic teaching institution or of a university system that

5-12     includes one or more general academic teaching institutions only

5-13     with money given to the institution or system for that express

5-14     purpose and deposited in an auditable account designated for that

5-15     purpose.

5-16           (b)  Consumption of alcoholic beverages at a function of the

5-17     governing board of a general academic teaching institution or of a

5-18     university system that includes one or more general academic

5-19     teaching institutions is subject to the rules governing the

5-20     consumption of alcoholic beverages by students of the institution

5-21     or system.

5-22           Sec. 51.788.  TERM LIMITS.  (a)  A person who has been

5-23     appointed to or who has served on a governing board for a full

5-24     six-year term may not be appointed to or serve on that governing

5-25     board after that term.  For the purposes of this subsection:

5-26                 (1)  a person is considered to be appointed to a full

5-27     term on a governing board if the person assumes office before the

 6-1     end of the first year of the full term; and

 6-2                 (2)  a person is considered to have served for a full

 6-3     term if the person serves for at least five years and 185 days of

 6-4     the full term.

 6-5           (b)  A person may not serve as the presiding officer of a

 6-6     governing board for more than three years.

 6-7           SECTION 2.02.  Subchapter A, Chapter 130, Education Code, is

 6-8     amended by adding Section 130.0055 to read as follows:

 6-9           Sec. 130.0055.  NAMING OF BUILDING OR FACILITY BY GOVERNING

6-10     BOARD.  Section 51.784 applies to the governing board of a public

6-11     junior college to the same extent as it applies to the governing

6-12     board of a general academic teaching institution.

6-13                  ARTICLE 3.  REQUIREMENT OF HEARING BEFORE

6-14                    INCREASING TUITION OR FEES OF GENERAL

6-15             ACADEMIC TEACHING INSTITUTION OR UNIVERSITY SYSTEM

6-16           SECTION 3.01.  Section 54.051, Education Code, is amended by

6-17     adding Subsection (o) to read as follows:

6-18           (o)  The governing board of a general academic teaching

6-19     institution or of a university system that includes one or more

6-20     general academic teaching institutions must hold a public hearing

6-21     before increasing a tuition rate it has the authority to determine

6-22     under this chapter.

6-23           SECTION 3.02.  Subchapter E, Chapter 54, Education Code, is

6-24     amended by adding Section 54.5001 to read as follows:

6-25           Sec. 54.5001.  PUBLIC HEARING BEFORE INCREASING FEE.  The

6-26     governing board of a general academic teaching institution or of a

6-27     university system that includes one or more general academic

 7-1     teaching institutions must hold a public hearing before increasing

 7-2     the amount of a fee it has the authority to determine under this

 7-3     subchapter.

 7-4                   ARTICLE 4.  TRANSITION; EFFECTIVE DATE;

 7-5                              EMERGENCY CLAUSE

 7-6           SECTION 4.01.  The change in law made by Section 51.788(a),

 7-7     Education Code, as added by this Act, does not affect the

 7-8     entitlement of a member of the governing board of a general

 7-9     academic teaching institution or of a university system that

7-10     includes one or more general academic teaching institutions serving

7-11     on the effective date of this Act to continue to serve on the board

7-12     for the remainder of the member's term.  The change in law made by

7-13     that section applies only to a term that begins on or after the

7-14     effective date of this Act.

7-15           SECTION 4.02.  This Act takes effect September 1, 1997.

7-16           SECTION 4.03.  The importance of this legislation and the

7-17     crowded condition of the calendars in both houses create an

7-18     emergency and an imperative public necessity that the

7-19     constitutional rule requiring bills to be read on three several

7-20     days in each house be suspended, and this rule is hereby suspended.