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


Office of House Bill AnalysisC.S.H.B. 1545
By: Uher
Higher Education
333/18/2001
Committee Report (Substituted)



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 proposed
changes address virtually all administrative areas, including procurement,
human resources, financial management, and notice policies.  C.S.H.B. 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

C.S.H.B. 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 The University of
Texas Medical Branch at Galveston (UTMB) or a public junior college (Sec.
51.9335, Education Code).  The bill  prohibits the Texas Department of
Criminal Justice from contracting with an institution to provide these
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 1.05). 

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, Education Code).  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, Education
Code). 

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, Education Code).   The bill authorizes an
institution to employ an individual who has retired under a state
retirement  system 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.  The bill also authorizes the governing board to
pay the retired individual an appropriate amount, as determined by the
governing board.  The bill provides that a retired individual employed by
an institution is authorized to participate in the appropriate state
retirement system (Sec. 51.964, Education Code). 

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, Education Code). 

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, Government Code). 

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, Government Code). 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, Government Code).  

The bill removes 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, Education
Code). 

The bill provides 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, Government Code). 

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 provides that these provisions do not limit the authority
of the state auditor to request and receive information directly from the
institution (Secs. 2166.101 and 2167.005, Government Code).  The bill
provides that a university system or an institution is not required to make
a strategic plan for its operations (Sec. 2056.001, Government Code).   

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, Education Code). 

The bill removes the provision requiring the governing board of an
institution to prorate a student fee charged for a summer session of nine
weeks or less (Sec. 54.010, Education Code). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 
 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1545 modifies the original to authorize the state auditor to audit
purchases of goods or services by a component of an institution of higher
education (institution) that purchases goods and services and to set forth
that the provisions for the acquisition of goods and services do not apply
to UTMB or a public junior college (Sec. 51.9335, Education Code).  The
substitute provides that an institution is authorized to employ an
individual who has retired under a state retirement system if the person
has been retired for at least one calendar year before the effective date
of the employment.  The substitute removes the prohibition against such an
individual receiving retirement benefits if employed on a greater than
one-half time basis (Sec. 51.964, Education Code).   The substitute
modifies the original to provide that the authority of the state auditor to
request and receive construction and maintenance information directly from
the institution of higher education is not limited (Secs. 2166.101,
Government Code).  The substitute modifies the original to prohibit an
institution from charging excessive fees in connection with payments by
credit card to the institution and sets forth requirements for student
notification of fees being charged (Sec. 54.5011, Education Code). 

The substitute modifies the original to remove provisions authorizing the
governing board of an institution to exempt full-time employees of the
institution from the payment of all or a portion of tuition and fees (Sec.
54.220, Education Code). 

The substitute modifies the original to remove provisions relating to the
refund of tuition and fees on a pro rata basis to a student for courses
from which a student drops (Sec. 54.006, Education Code).  The substitute
modifies the original to remove provisions authorizing an institution to
set the amount of a waiver or exemption on a pro rata basis when
determining the amount of a fee or tuition waiver for a student (Sec.
54.202, Education Code). 

The substitute removes provisions authorizing the governing board of an
institution to retain control of tuition and laboratory and special course
fees collected at the institution (51.002, Education Code).  The substitute
also removes provisions providing that the governing board of an
institution is not required to deposit tuition or such fees in the state
treasury (Sec. 51.008, Education Code). 

The substitute removes provisions increasing the maximum general property
deposit to $50 for each student (Sec. 54.502, Education Code).   

The substitute modifies the original to provide that the governing board of
a university system is authorized the adopt a comprehensive leave policy
only for employers in a hospital or clinic of a medical and dental unit of
the system.  The substitute authorizes the governing board of an
institution to adopt a leave policy for the employees of the institution on
or after September 15, 2005 (Sec. 51.961, Education Code).