SRC-CTC H.B. 1545 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1545
By: Uher (Bivins)
Education
4/9/2001
Engrossed


DIGEST AND PURPOSE 

Institutions of higher education have identified changes to current
statutes concerning several administrative areas that could save money,
produce new revenue, or increase the operational efficiency of institutions
of higher education across the state.  As proposed, H.B. 1545 amends
provisions relating to the operation, regulation, and administration of
public institutions of higher education. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to institutions of higher
education in SECTION 2.05 (Section 51.965, Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  PURCHASING

SECTION 1.01.  Amends Sections 51.9335(a)-(e), Education Code, to authorize
an institution of higher education, rather than a medical and dental unit,
to acquire goods or services by the method that provides the best value to
the institution. 

 (b) Makes conforming changes.

(c) Authorizes the state auditor to audit purchases of goods or services by
an institution of higher education or by a component of an institution of
higher education that purchases goods and services, rather than by a
medical and dental unit. 

(d) Provides that to the extent of any conflict, this section prevails over
any other law, including Chapters 2155 (Purchasing: General Provisions and
Procedures), 2156 (Purchasing Methods), 2157 (Purchasing: Purchase of
Automated Information Systems), 2158 (Purchasing: Miscellaneous Provisions
for Purchase of Certain Goods and Services), and 2170 (Telecommunications
Services), Government Code, except a law or rule relating to contracting
with historically underutilized businesses.  Authorizes, but does not
require, an institution of higher education to acquire goods or services as
provided by Chapters 2155, 2156, 2157, 2158, and 2170, Government Code. 

 (e) Defines "institution of higher education," rather than "medical and
dental unit." 

SECTION 1.02.  Amends Chapter 497B, Government Code, by adding Section
497.0211, as follows: 

Sec. 497.0211.  EXCEPTION: INSTITUTIONS OF HIGHER EDUCATION.  Provides that
this subchapter does not apply to an institution of higher education, as
defined by Section 61.003, Education Code. 

SECTION 1.03.  Amends Section 2155.067(b), Government Code, to delete
wording related to the  authorization to sign the written justification. 

SECTION 1.04.  Amends Section 2155.268(a), Education Code, to delete
wording related to an exception for an institution of higher education
regarding bidders lists. 

SECTION 1.05.  Repealer: Section 2155.133 (Delegation of Authority to
Institution of Higher Education), Government Code; Section 2155.134 (Group
Purchasing Programs), Government Code; and Section 2155.135 (Purchases From
Higher Education Research Funds), Government Code. 

ARTICLE 2.  HUMAN RESOURCES

SECTION 2.01.  Amends Chapter 51Z, Education Code, by adding Section
51.961, as follows: 

Sec. 51.961.  LEAVE PROVISIONS FOR CERTAIN EMPLOYEES OF UNIVERSITY SYSTEM.
(a)  Defines "governing board," "medical and dental unit," "university
system," and "leave." 

(b) Authorizes the governing board of a university system (governing board)
to adopt a comprehensive leave policy that applies to employees working in
a hospital or clinic of a medical and dental unit of the university system. 

(c) Authorizes a policy adopted under this section to combine vacation,
sick, and holiday leave into a paid system that does not distinguish or
separate the types of leave to be awarded and to award leave in an amount
determined by the governing board to be appropriate and cost-effective. 

(d) Provides that Chapters 661 (Leave) and 662 (Holidays and Recognition
Days and Months), Government Code, do not apply to employees covered by a
policy adopted under this section.  Requires the policy to include
provisions addressing the subject matter of each subchapter of Chapters 661
and 662, Government Code, and the intended effect of the policy on the
rights, duties, and responsibilities of employees and the employing entity
under those subchapters. 

  (e) Requires a policy adopted under this section to include certain
provisions. 

(f) Authorizes a policy authorized by this section to include other matters
as determined relevant and appropriate by the governing board. 

(g) Requires a policy authorized by this section to be adopted by a
governing board in an open meeting of the board. 

(h) Requires the governing board, before implementing a policy adopted
under this section, to enter into a memorandum of understanding with
certain state agencies concerning awards of accrued leave for the purposes
of retirement and other issues of concern related to the implementation of
the policy. 

(i) Authorizes the governing board, on or after September 15, 2005, to
adopt a leave policy as provided by this section for employees of the
institution. 

SECTION 2.02.  Amends Chapter 51Z, Education Code, by adding Section
51.962, as follows: 

Sec. 51.962.  MERIT SALARY INCREASES.  Authorizes an institution of higher
education, as defined by Section 61.003, to grant merit salary increases,
including one-time merit payments, to employees described by this section.
Provides that a merit salary increase made under this section is
compensation for purposes of Chapter 659 (Compensation), Government  Code,
and salary and wages and member compensation for purposes of Title 8
(Public Retirement Systems), Government Code.  Authorizes an institution of
higher education to pay merit salary increases under this section from any
funds.  Requires an institution of higher education to adopt criteria for
the granting of merit salary increases before awarding a merit salary
increase under this section.  Requires an employee, to be eligible for a
merit salary increase under this section, to have been employed by the
institution of higher education for the six months immediately preceding
the effective date of the increase and requires that at least six months
have elapsed since the employee's last merit salary increase. 

SECTION 2.03.  Amends Chapter 51Z, Education Code, by adding Section
51.963, as follows: 

Sec. 51.963.  EMPLOYEE WITH MULTIPLE APPOINTMENTS.  Authorizes a full-time
employee of an institution of higher education as defined by Section 61.003
who has appointments to more than one position at the same institution to
receive pay for working more than 40 hours in a week if the institution
determines that pay in lieu of compensatory time is in the best interest of
the institution. 

SECTION 2.04.  Amends Chapter 51Z, Education Code, by adding Section
51.964, as follows: 

Sec. 51.964.  HIRING OF CERTAIN RETIREES.  Authorizes an institution of
higher education as defined by Section 61.003 to employ a person who has
retired under any provision of Title 8, Government Code, under certain
conditions.  Authorizes the governing board to pay a person employed under
this section an amount considered by the governing board to be appropriate.
Authorizes a person employed under this section to participate in the
appropriate retirement system under Title 8, Government Code.  Provides
that this section, to the extent of any conflict,  prevails over other law
governing the hiring of retired employees by an institution of higher
education. 

SECTION 2.05.  Amends Chapter 51Z, Education Code, by adding Section
51.965, as follows: 

Sec. 51.965.  EMPLOYEE NOTIFICATION.  Authorizes an institution of higher
education, as defined by Section 61.003, if a state law requires the
institution to provide written notification to its officers or employees of
any retirement, right, duty, or responsibility provided by state law, to
provide the notification by use of electronic media.  Authorizes an
institution of higher education to adopt rules and guidelines to ensure
that notification provided by electronic media under this section is
effective and that any required notification is provided to officers and
employees who do not have access to electronic media. 

SECTION 2.06.  Amends Section 661.062(a), Government Code, to provide that
a state employee who, at any time during the employee's lifetime, has
accrued six months of state employment and who resigns, is dismissed, or
otherwise separates from state employment by an institution of higher
education is entitled to be paid for the accrued balance of the employee's
vacation time as of the date of separation. 

SECTION 2.07.  Amends the heading of Chapter 659J, Government Code, to read
as follows: 

SUBCHAPTER J.  PAYROLL REDUCTION OR DEDUCTION FOR CERTAIN EMPLOYEE BENEFITS
AT INSTITUTIONS OF HIGHER EDUCATION 

SECTION 2.08.  Amends Section 659.202, Government Code, as follows:

Sec. 659.202.  New heading: PAYROLL REDUCTION OR DEDUCTION AUTHORIZED; USE
OF FUNDS.  Authorizes an employee of an institution of higher education to
authorize in writing a reduction, rather than deduction, each pay period
from the employee's salary or wage payment for the payment of any fee or
charge for parking, a parking permit, a transportation  pass, or other
qualified transportation benefit authorized under Section 132(f), Internal
Revenue Code of 1986, as amended.  Deletes wording related to parking fees
charged by the institution of higher education.  Requires, rather than
provides, an authorization for a reduction, rather than a deduction, under
this subchapter by the employee to be voluntary.  Requires the institution
to determine which fee or charge an employee is authorized to pay under
this section.  Authorizes an employee of an institution of higher education
to authorize in writing a deduction each pay period from the employee's
salary or wage payment for the payment of any fee or charge for parking or
for a club membership, recreational sports membership, or similar activity
or program.  Requires an authorization for a deduction under this
subchapter by the employee to be voluntary.  Requires the institution to
determine which fee or charge an employee is authorized to pay under this
section.  Deletes wording related to funds collected under this section. 

SECTION 2.09.  Amends Chapter 659J, Government Code, by adding Section
659.205, as follows: 

Sec. 659.205.  STATUS OF DEDUCTION OR SALARY REDUCTION.  Requires a salary
deduction made by an employee under this subchapter, if so designated by
the employing institution of higher education, to be considered
compensation under this chapter and salary and wages and member
compensation under Title 8.    Authorizes a salary deduction or reduction
under this subchapter, if authorized by federal law, to be made on a pretax
basis. 

SECTION 2.10.  Amends Section 822.201(b), Government Code, to redefine
"salary and wages." 

ARTICLE 3.  FINANCIAL MANAGEMENT

SECTION 3.01.  Amends Section 74.103, Education Code, to delete wording
relating to a requirement of the board regarding the acceptance of gifts,
grants, and donations. 

SECTION 3.02.  Amends Section 74.153, Education Code, to delete wording
relating to a requirement of the board regarding the acceptance of gifts,
grants, and donations. 

SECTION 3.03.  Amends Section 2251.026, Government Code, to prohibit
interest from accruing or being paid under this section on a payment if the
total amount of interest that would have otherwise have accrued is equal to
or less than $5 and the payment is made from the institutional funds of an
institution of higher education as defined by Section 61.003, Education
Code. 

SECTION 3.04.  Amends Section 66.08(h), Education Code, to provide that the
corporation is a governmental body for purposes of Chapter 551 (Open
Meetings), Government Code. 

SECTION 3.05.  Makes application of Section 2251.026, Government Code, as
amended by this Act, prospective. 

ARTICLE 4.  REPORTING

SECTION 4.01.  Amends Section 2166.101, Government Code, by adding
Subsection (f), to require the General Services Commission, an institution
of higher education, and a state agency, if information to be obtained from
the institution of higher education, as defined by Section 61.003,
Education Code, for inclusion in the report is also included in another
report to be made by the institution of higher education to another state
agency, to enter into a memorandum of understanding concerning the
information to be reported in order to enable the institution of higher
education to provide the required information in the most cost-effective
manner taking into account the costs of each affected agency. Provides that
this subsection does not limit the authority of the state auditor to
request and receive information directly from an institution of higher
education. 

SECTION 4.02.  Amends Section 2167.005, Government Code, to require the
General Services  Commission, an institution of higher education, and a
state agency, if information to be included in the report is also included
in another report to be made by the institution of higher education to
another state agency, to enter into a memorandum of understanding
concerning the information to be reported in order to enable the
institution of higher education to provide the required information in the
most costeffective manner taking into account the costs of each affected
agency. 

ARTICLE 5.  STRATEGIC PLANNING

SECTION 5.01.  Amends Section 2056.001, Government Code, to redefine "state
agency." 

ARTICLE 6.  OTHER FINANCIAL MATTERS

SECTION 6.01.  Amends Chapter 54E, Education Code, by adding Section
54.5011, as follows: 

Sec. 54.5011.  CREDIT CARD FEES.  Authorizes an institution of higher
education that accepts payment of tuition, a fee, or other charge by credit
card to charge the credit card user a fee for processing the payment.
Prohibits a fee charged under this section from exceeding the amount
charged the institution by the issuer of the credit card in connection with
the payment. Requires the institution, before accepting a payment by credit
card, to notify the student of any fee to be charged under this section. 

SECTION 6.02.  Repealer: Section 54.010 (Reduction in Tuition), Education
Code, as added by Chapter 1053, Acts of the 76th Legislature, Regular
Session, 1999. 

ARTICLE 7.  EFFECTIVE DATE

SECTION 7.01.  Effective date: upon passage or September 1, 2001.