HBA-JLV H.B. 1545 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1545
By: Uher
Higher Education
8/7/2001
Enrolled



BACKGROUND AND PURPOSE 

Institutions of higher education in the state of Texas have identified
changes in the laws concerning several administrative areas that could save
money, produce new revenue, or increase the operational efficiency of
institutions of higher education across the state.  Institutions seek to
streamline operations, minimize duplicate requirements, and enhance their
competitive edge in attracting and retaining employees. The changes
addressed by the 77th Legislature cover virtually all administrative areas,
including procurement, human resources, financial management, and notice
policies.  House Bill 1545 modifies provisions relating to the operation,
regulation, and administration of public institutions of higher education. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1545 amends the Education and Government codes to modify
provisions relating to the operation, regulation, and administration of
public institutions of higher education (institution).  The bill authorizes
an institution to acquire goods and services  by the method that provides
the best value to the institution and provides criteria for determining the
best value.  The bill authorizes the state auditor to audit purchases of
goods or services by an institution or by a component of an institution
that purchases goods and services.  The bill sets forth that the provisions
for the acquisition of goods and services do not apply to a public junior
college (Sec. 51.9335, Education Code).  The bill authorizes the governing
board of an institution to purchase insurance insuring the institution and
its employees against any liability, risk, or exposure and covering the
losses of any institutional property.  The bill authorizes the governing
board to pay the cost of any insurance from any funds of the institution
(Sec. 51.966, Education Code).  The bill prohibits the Texas Department of
Criminal Justice from contracting with an institution to provide personmade
goods or services (Sec. 497.0211, Government Code). 

The bill repeals Government Code provisions relating to the delegation of
purchasing authority to an institution of higher education, group
purchasing programs, and purchases from higher education research funds
(SECTION 1.06). 

The bill amends the Education Code to authorize the governing board of a
university system 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.  After September 15, 2005 the governing board of an
institution of higher education is authorized to adopt a leave policy for
employees of the institution.  The bill sets forth the provisions a
comprehensive leave policy must address (Sec. 51.961).  An institution is
authorized to grant merit salary increases, including one-time merit
payments, to employees from any funds.  The bill provides that an
institution must adopt criteria for the granting of merit salary increases
before awarding them to an employee (Sec. 51.962). 

The bill authorizes a full-time employee of an institution who has
appointments to more than one position  at the same institution to receive
pay for working more than 40 hours a week if the institution determines
that pay, in lieu of compensatory time, is in the best interest of the
institution (Sec. 51.963).  The bill authorizes an institution to employ an
individual who has retired under the Teacher Retirement System or the
optional retirement program if the governing board of the institution
determines that the employment is in the best interest of the institution
and the person has been retired for at least one calendar year before the
effective date of the employment, except that a person retired under the
optional retirement program may be rehired after retirement without a break
in service.  The bill also authorizes the governing board to pay the
retired individual an appropriate amount, as determined by the governing
board (Sec. 51.964). 

The bill authorizes an institution, by adopted rules and guidelines, to
notify employees by means of electronic media if a state law requires an
institution to provide written notification to its officers or employees
(Sec. 51.965). 

The bill amends the Government Code to provide that a state employee who,
at any time during the employee's lifetime, has accrued six months of
continuous state employment and who resigns, is dismissed, or otherwise
separates from state employment by an institution is entitled to be paid
for the accrued balance of the employee's vacation time as of the date of
separation (Sec. 661.062).  The bill provides that certain provisions
relating to employee leave, hours of labor, and salary deductions do not
apply to a public junior college (Secs. 658.001, 659.002, and 661.915). 

The bill authorizes an employee of an institution to voluntarily authorize
in writing a reduction 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 charge.
The bill also authorizes an employee of an institution to voluntarily
authorize in writing a deduction each pay period from the employee's salary
or wage payment for the payment of certain activity or program fees.  The
bill requires an institution to determine which fee or charge an employee
may pay  by this method (Sec. 659.202). The bill requires that a salary
deduction made by an employee be considered compensation. If authorized by
federal law, a salary deduction or salary reduction may be made on a pretax
basis (Sec. 659.205).  

The bill amends the Education Code to remove provisions that require the
board of regents of The University of Texas System to secure the opinion of
the attorney general before a gift or grant of real property may be
conveyed to certain medical units of The University of Texas System (Secs.
74.103 and 74.153). 

The bill amends the Government Code to provide that no interest accrues or
may be paid on a payment for goods and services if the total amount of the
interest that would otherwise have accrued is equal to or less than $5 and
the payment is made from the institutional funds of an institution (Sec.
2251.026).   

The bill amends the Education Code to provide that no statute of
limitations shall apply to a lawsuit, to the enforcement of a judgment, or
to any other legal action to collect an educational debt owed to an
institution of higher education or to the Texas Higher Education
Coordinating Board (THECB) (Sec. 51.967). 

The bill provides that a nonprofit corporation contracted to invest the
permanent university fund is subject to the open meetings law that applies
to the board of regents of The University of Texas System, except that the
board of directors of the corporation are authorized to discuss an
investment or potential investment with one or more employees of the
corporation or with a third party to the extent permitted by the board of
trustees of the Texas growth fund.  The board of directors of the
corporation is not subject to provisions relating to the open meetings law
involving telephone conversations.  The bill authorizes any director of the
corporation to attend any meeting of the board of directors by telephone
conference call provided that the telephone conference is audible to the
public at the meeting location specified in the notice of the meeting
during each part of the meeting that is required to be open to the public
(Sec. 66.08). 

The bill amends the Government Code to require an institution to enter into
a memorandum of understanding with the General Services Commission and any
other another agency receiving construction  and maintenance or lease of
space information from the institution if the institution is to include the
information for the construction and maintenance information and lease of
space reports to the General Services Commission in a report to another
agency.  The bill does not limit the authority of the state auditor to
request and receive information directly from the institution (Secs.
2166.101 and 2167.005).  The bill provides that a university system or an
institution is not required to make a strategic plan for its operations
(Sec. 2056.001).   

The bill amends the Education Code to authorize the board of regents of
Midwestern State University to acquire by gift or donation a museum and any
related property.  The bill requires THECB to include in the funding
formula applicable to the university funding for the operation and
maintenance of a museum (Sec. 103.11). 

The bill authorizes an institution 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 but prohibits an institution from charging a fee
that exceeds the amount charged by the issuer of the credit card in
connection with the payment to the institution.  The bill requires the
institution, before accepting a payment by credit card, to notify the
student of any fee to be charged to the student in connection with the
payment (Sec. 54.5011). 

The bill repeals the provision requiring the governing board of an
institution to prorate a student fee charged for a summer session of nine
weeks or less (SECTION 6.03). 

EFFECTIVE DATE

September 1, 2001.