By Uher H.B. No. 1545
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation, regulation, administration, and
1-3 financing of public institutions of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 ARTICLE 1. PURCHASING
1-6 SECTION 1.01. Sections 51.9335(a)-(e), Education Code, are
1-7 amended to read as follows:
1-8 (a) An institution of higher education [A medical and dental
1-9 unit] may acquire goods or services by the method that provides the
1-10 best value to the institution [unit], including:
1-11 (1) competitive bidding;
1-12 (2) competitive sealed proposals;
1-13 (3) a catalogue purchase;
1-14 (4) a group purchasing program; or
1-15 (5) an open market contract.
1-16 (b) In determining what is the best value to an institution
1-17 of higher education [a medical and dental unit], the institution
1-18 [unit] shall consider:
1-19 (1) the purchase price;
1-20 (2) the reputation of the vendor and of the vendor's
1-21 goods or services;
1-22 (3) the quality of the vendor's goods or services;
1-23 (4) the extent to which the goods or services meet the
1-24 institution's [unit's] needs;
2-1 (5) the vendor's past relationship with the
2-2 institution [unit];
2-3 (6) the impact on the ability of the institution
2-4 [unit] to comply with laws and rules relating to historically
2-5 underutilized businesses;
2-6 (7) the total long-term cost to the institution [unit]
2-7 of acquiring the vendor's goods or services; and
2-8 (8) any other relevant factor that a private business
2-9 entity would consider in selecting a vendor.
2-10 (c) The state auditor may audit purchases of goods or
2-11 services by an institution of higher education or by a component of
2-12 an institution of higher education that purchases goods and
2-13 services [a medical and dental unit].
2-14 (d) To the extent of any conflict, this section prevails
2-15 over any other law, including Chapters 2155, 2156, 2157, 2158, and
2-16 2170, Government Code, except a law or rule relating to contracting
2-17 with historically underutilized businesses. An institution of
2-18 higher education may, but is not required to, acquire goods or
2-19 services as provided by Chapters 2155, 2156, 2157, 2158, and 2170,
2-20 Government Code.
2-21 (e) In this section, "institution of higher education"
2-22 ["medical and dental unit"] has the meaning assigned by Section
2-23 61.003 and includes a school of veterinary medicine and a health
2-24 care facility operated by a medical and dental unit, except that
2-25 the term does not include The University of Texas M. D. Anderson
2-26 Cancer Center, The University of Texas Medical Branch at Galveston,
2-27 or a public junior college.
3-1 SECTION 1.02. Subchapter B, Chapter 497, Government Code, is
3-2 amended by adding Section 497.0211 to read as follows:
3-3 Sec. 497.0211. EXCEPTION: INSTITUTIONS OF HIGHER EDUCATION.
3-4 This subchapter does not apply to an institution of higher
3-5 education, as defined by Section 61.003, Education Code.
3-6 SECTION 1.03. Section 2155.067(b), Government Code, is
3-7 amended to read as follows:
3-8 (b) The agency head or the presiding officer of the agency's
3-9 governing body must sign the written justification. [For an
3-10 institution of higher education, the individual designated by the
3-11 president or governing body as purchasing officer for the
3-12 institution may sign the written justification.]
3-13 SECTION 1.04. Section 2155.268(a), Government Code, is
3-14 amended to read as follows:
3-15 (a) A state agency may not maintain and use its own bidders
3-16 list. The prohibition of this subsection does not apply to the
3-17 Texas Department of Transportation [or to an institution of higher
3-18 education as defined by Section 61.003, Education Code, but an
3-19 institution of higher education should use the master bidders list
3-20 when possible].
3-21 SECTION 1.05. Sections 2155.133, 2155.134, and 2155.135,
3-22 Government Code, are repealed.
3-23 ARTICLE 2. HUMAN RESOURCES
3-24 SECTION 2.01. Subchapter Z, Chapter 51, Education Code, is
3-25 amended by adding Section 51.961 to read as follows:
3-26 Sec. 51.961. LEAVE PROVISIONS FOR CERTAIN EMPLOYEES OF
3-27 UNIVERSITY SYSTEM. (a) In this section:
4-1 (1) "Governing board," "medical and dental unit," and
4-2 "university system" have the meanings assigned by Section 61.003.
4-3 (2) "Leave" includes vacation leave, sick leave, and
4-4 holidays.
4-5 (b) The governing board of a university system may adopt a
4-6 comprehensive leave policy that applies to employees working in a
4-7 hospital or clinic of a medical and dental unit of the university
4-8 system.
4-9 (c) A policy adopted under this section may combine
4-10 vacation, sick, and holiday leave into a paid leave system that
4-11 does not distinguish or separate the types of leave to be awarded
4-12 and may award leave in an amount determined by the governing board
4-13 to be appropriate and cost-effective.
4-14 (d) Chapters 661 and 662, Government Code, do not apply to
4-15 employees covered by a policy adopted under this section. The
4-16 policy must include provisions addressing the subject matter of
4-17 each subchapter of Chapters 661 and 662, Government Code, and the
4-18 intended effect of the policy on the rights, duties, and
4-19 responsibilities of employees and the employing entity under those
4-20 subchapters.
4-21 (e) A policy adopted under this section must include
4-22 provisions for:
4-23 (1) payment for accrued leave to:
4-24 (A) the estates or heirs of deceased employees;
4-25 (B) employees separating from the employing
4-26 entity; and
4-27 (C) contributing members of state retirement
5-1 systems who retire; and
5-2 (2) awards of accrued leave to employees separating
5-3 from the employing entity who are to be employed by other state
5-4 agencies or institutions of higher education.
5-5 (f) A policy authorized by this section may include other
5-6 matters as determined relevant and appropriate by the governing
5-7 board.
5-8 (g) A policy authorized by this section must be adopted by a
5-9 governing board in an open meeting of the board.
5-10 (h) Before implementing a policy adopted under this section,
5-11 the governing board shall enter into a memorandum of understanding
5-12 with the Teacher Retirement System of Texas, the office of the
5-13 state auditor, the Employees Retirement System of Texas, and the
5-14 Texas Higher Education Coordinating Board concerning awards of
5-15 accrued leave for the purposes of retirement and other issues of
5-16 concern related to the implementation of the policy.
5-17 (i) On or after September 15, 2005, the governing board of
5-18 an institution of higher education may adopt a leave policy as
5-19 provided by this section for employees of the institution.
5-20 SECTION 2.02. Subchapter Z, Chapter 51, Education Code, is
5-21 amended by adding Section 51.962 to read as follows:
5-22 Sec. 51.962. MERIT SALARY INCREASES. (a) An institution of
5-23 higher education as defined by Section 61.003 may grant merit
5-24 salary increases, including one-time merit payments, to employees
5-25 described by this section.
5-26 (b) A merit salary increase made under this section is
5-27 compensation for purposes of Chapter 659, Government Code, and
6-1 salary and wages and member compensation for purposes of Title 8,
6-2 Government Code.
6-3 (c) An institution of higher education may pay merit salary
6-4 increases under this section from any funds.
6-5 (d) Before awarding a merit salary increase under this
6-6 section, an institution of higher education must adopt criteria for
6-7 the granting of merit salary increases.
6-8 (e) To be eligible for a merit salary increase under this
6-9 section, an employee must have been employed by the institution of
6-10 higher education for the six months immediately preceding the
6-11 effective date of the increase and at least six months must have
6-12 elapsed since the employee's last merit salary increase.
6-13 SECTION 2.03. Subchapter Z, Chapter 51, Education Code, is
6-14 amended by adding Section 51.963 to read as follows:
6-15 Sec. 51.963. EMPLOYEE WITH MULTIPLE APPOINTMENTS. A
6-16 full-time employee of an institution of higher education as defined
6-17 by Section 61.003 who has appointments to more than one position at
6-18 the same institution may receive pay for working more than 40 hours
6-19 in a week if the institution determines that pay in lieu of
6-20 compensatory time is in the best interests of the institution.
6-21 SECTION 2.04. Subchapter Z, Chapter 51, Education Code, is
6-22 amended by adding Section 51.964 to read as follows:
6-23 Sec. 51.964. HIRING OF CERTAIN RETIREES. (a) An institution
6-24 of higher education as defined by Section 61.003 may employ a
6-25 person who has retired under any provision of Title 8, Government
6-26 Code, if:
6-27 (1) the governing board of the institution determines
7-1 that the employment is in the best interests of the institution;
7-2 and
7-3 (2) the person has been retired for at least one
7-4 calendar year before the effective date of the employment.
7-5 (b) The governing board may pay a person employed under this
7-6 section an amount considered by the governing board to be
7-7 appropriate. A person employed under this section may participate
7-8 in the appropriate retirement system under Title 8, Government
7-9 Code.
7-10 (c) This section prevails over other law governing the
7-11 hiring of retired employees by an institution of higher education
7-12 to the extent of any conflict.
7-13 SECTION 2.05. Subchapter Z, Chapter 51, Education Code, is
7-14 amended by adding Section 51.965 to read as follows:
7-15 Sec. 51.965. EMPLOYEE NOTIFICATION. (a) If a state law
7-16 requires an institution of higher education as defined by Section
7-17 61.003 to provide written notification to its officers or employees
7-18 of any requirement, right, duty, or responsibility provided by
7-19 state law, the institution may provide the notification by use of
7-20 electronic media.
7-21 (b) An institution of higher education may adopt rules and
7-22 guidelines to ensure that notification provided by electronic media
7-23 under this section is effective and that any required notification
7-24 is provided to officers and employees who do not have access to
7-25 electronic media.
7-26 SECTION 2.06. Section 661.062(a), Government Code, is amended
7-27 to read as follows:
8-1 (a) A state employee who, at any time during the employee's
8-2 lifetime, has accrued six months of continuous state employment and
8-3 who resigns, is dismissed, or otherwise separates from state
8-4 employment by a state agency other than an institution of higher
8-5 education is entitled to be paid for the accrued balance of the
8-6 employee's vacation time as of the date of separation, if the
8-7 individual is not reemployed by the state in a position under which
8-8 the employee accrues vacation leave during the 30-day period
8-9 immediately following the date of separation from state employment.
8-10 A state employee who, at any time during the employee's lifetime,
8-11 has accrued six months of continuous state employment and who
8-12 resigns, is dismissed, or otherwise separates from state employment
8-13 by an institution of higher education is entitled to be paid for
8-14 the accrued balance of the employee's vacation time as of the date
8-15 of separation.
8-16 SECTION 2.07. The heading to Subchapter J, Chapter 659,
8-17 Government Code, is amended to read as follows:
8-18 SUBCHAPTER J. PAYROLL REDUCTION OR DEDUCTION FOR CERTAIN
8-19 EMPLOYEE BENEFITS [OF PARKING FEES AND PERMITS]
8-20 AT INSTITUTIONS OF HIGHER EDUCATION
8-21 SECTION 2.08. Section 659.202, Government Code, is amended to
8-22 read as follows:
8-23 Sec. 659.202. PAYROLL REDUCTION OR DEDUCTION AUTHORIZED; USE
8-24 OF FUNDS. (a) An employee of an institution of higher education
8-25 may authorize in writing a reduction [deduction] each pay period
8-26 from the employee's salary or wage payment for the payment of any
8-27 fee or charge for parking, a parking permit, a transportation pass,
9-1 or other qualified transportation benefit authorized under Section
9-2 132(f), Internal Revenue Code of 1986, as amended [parking fees
9-3 charged by the institution of higher education or for the purchase
9-4 of a parking permit from an institution of higher education]. An
9-5 authorization for a reduction [deduction] under this subchapter by
9-6 the employee must be [is] voluntary. The institution shall
9-7 determine which fee or charge an employee may pay under this
9-8 subsection.
9-9 (b) An employee of an institution of higher education may
9-10 authorize in writing a deduction each pay period from the
9-11 employee's salary or wage payment for the payment of any fee or
9-12 charge for parking or for a club membership, recreational sports
9-13 membership, or similar activity or program. An authorization for a
9-14 deduction under this subchapter by the employee must be voluntary.
9-15 The institution shall determine which fee or charge an employee may
9-16 pay under this subsection. [Funds collected under this section may
9-17 be used only to provide parking facilities for employees of the
9-18 institution.]
9-19 SECTION 2.09. Subchapter J, Chapter 659, Government Code, is
9-20 amended by adding Section 659.205 to read as follows:
9-21 Sec. 659.205. STATUS OF DEDUCTION OR SALARY REDUCTION. (a)
9-22 If so designated by the employing institution of higher education,
9-23 a salary deduction made by an employee under this subchapter shall
9-24 be considered compensation under this chapter and salary and wages
9-25 and member compensation under Title 8.
9-26 (b) If authorized by federal law, a salary deduction or
9-27 salary reduction under this subchapter may be made on a pretax
10-1 basis.
10-2 SECTION 2.10. Section 822.201(b), Government Code, is amended
10-3 to read as follows:
10-4 (b) "Salary and wages" as used in Subsection (a) means:
10-5 (1) normal periodic payments of money for service the
10-6 right to which accrues on a regular basis in proportion to the
10-7 service performed;
10-8 (2) amounts by which the member's salary is reduced
10-9 under a salary reduction agreement authorized by Chapter 610;
10-10 (3) amounts that would otherwise qualify as salary and
10-11 wages under Subdivision (1) but are not received directly by the
10-12 member pursuant to a good faith, voluntary written salary reduction
10-13 agreement in order to finance payments to a deferred compensation
10-14 or tax sheltered annuity program specifically authorized by state
10-15 law or to finance benefit options under a cafeteria plan qualifying
10-16 under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.
10-17 Section 125), if:
10-18 (A) the program or benefit options are made
10-19 available to all employees of the employer; and
10-20 (B) the benefit options in the cafeteria plan
10-21 are limited to one or more options that provide deferred
10-22 compensation, group health and disability insurance, group term
10-23 life insurance, dependent care assistance programs, or group legal
10-24 services plans;
10-25 (4) performance pay awarded to an employee by a school
10-26 district as part of a total compensation plan approved by the board
10-27 of trustees of the district and meeting the requirements of
11-1 Subsection (e); [and]
11-2 (5) the benefit replacement pay a person earns under
11-3 Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
11-4 74th Legislature, 1995, except as provided by Subsection (c); [and]
11-5 (6) stipends paid to teachers in accordance with
11-6 Section 21.410, Education Code;
11-7 (7) amounts by which the member's salary is reduced or
11-8 that are deducted from the member's salary as authorized by
11-9 Subchapter J, Chapter 659; and
11-10 (8) a merit salary increase made under Section 51.962,
11-11 Education Code.
11-12 ARTICLE 3. FINANCIAL MANAGEMENT
11-13 SECTION 3.01. Section 74.103, Education Code, is amended to
11-14 read as follows:
11-15 Sec. 74.103. GIFTS AND GRANTS. The board may accept and
11-16 administer, on terms and conditions satisfactory to it, grants and
11-17 gifts tendered to it in aid of research and teaching at the medical
11-18 school. The board may also accept from the federal government or
11-19 any foundation, trust fund, corporation, or individual donations,
11-20 gifts, and grants, including real estate, buildings, libraries,
11-21 laboratories, apparatus, equipment, records, and leases, for the
11-22 exclusive use and benefit of the medical school. [Before
11-23 acceptance of gifts, grants, and donations of real property, the
11-24 board shall secure the opinion of the attorney general on the title
11-25 of the real property to be conveyed.]
11-26 SECTION 3.02. Section 74.153, Education Code, is amended to
11-27 read as follows:
12-1 Sec. 74.153. GIFTS AND GRANTS. The board may accept and
12-2 administer, on terms and conditions satisfactory to it, grants and
12-3 gifts tendered to it in aid of research and teaching at the medical
12-4 school. The board may also accept from the federal government, any
12-5 foundation, trust fund, corporation, or individual donations,
12-6 gifts, and grants, including real estate, buildings, libraries,
12-7 laboratories, apparatus, equipment, records, and money, for the
12-8 exclusive use and benefit of the medical school. [Before
12-9 acceptance of gifts, grants, and donations of real property, the
12-10 board shall secure the opinion of the attorney general on the title
12-11 of the real property to be conveyed.]
12-12 SECTION 3.03. Section 2251.026, Government Code, is amended
12-13 by adding Subsection (g) to read as follows:
12-14 (g) No interest accrues or may be paid under this section on
12-15 a payment if the total amount of interest that would otherwise have
12-16 accrued is equal to or less than $5 and the payment is made from
12-17 the institutional funds of an institution of higher education as
12-18 defined by Section 61.003, Education Code.
12-19 SECTION 3.04. Section 66.08(h), Education Code, is amended to
12-20 read as follows:
12-21 (h) The corporation:
12-22 (1) is subject to the Texas Non-Profit Corporation Act
12-23 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes); and
12-24 (2) is a governmental body for purposes of Chapter
12-25 551, Government Code (the open meetings law).
12-26 SECTION 3.05. The change in law made by this article to
12-27 Section 2251.026, Government Code, applies only to interest on a
13-1 payment by an institution of higher education that becomes overdue
13-2 under Chapter 2251, Government Code, on or after the effective date
13-3 of this Act. Interest on a payment by an institution of higher
13-4 education that becomes overdue under Chapter 2251, Government Code,
13-5 before that date is governed by Section 2251.026, Government Code,
13-6 as that section exists on the date the payment becomes overdue, and
13-7 the prior law is continued in effect for that purpose.
13-8 ARTICLE 4. REPORTING
13-9 SECTION 4.01. Section 2166.101, Government Code, is amended
13-10 by adding Subsection (f) to read as follows:
13-11 (f) If information to be obtained from an institution of
13-12 higher education, as defined by Section 61.003, Education Code, for
13-13 inclusion in the report is also included in another report to be
13-14 made by the institution of higher education to another state
13-15 agency, the commission, the agency receiving the other report, and
13-16 the institution of higher education shall enter into a memorandum
13-17 of understanding concerning the information to be reported in order
13-18 to enable the institution of higher education to provide the
13-19 required information in the most cost-effective manner taking into
13-20 account the costs to each affected agency. This subsection does
13-21 not limit the authority of the state auditor to request and receive
13-22 information directly from an institution of higher education.
13-23 SECTION 4.02. Section 2167.005, Government Code, is amended
13-24 by adding Subsection (c) to read as follows:
13-25 (c) If information to be included in the report is also
13-26 included in another report to be made by the institution of higher
13-27 education to another state agency, the commission, the agency
14-1 receiving the other report, and the institution of higher education
14-2 shall enter into a memorandum of understanding concerning the
14-3 information to be reported in order to enable the institution of
14-4 higher education to provide the required information in the most
14-5 cost-effective manner taking into account the costs to each
14-6 affected agency.
14-7 ARTICLE 5. STRATEGIC PLANNING
14-8 SECTION 5.01. Section 2056.001, Government Code, is amended
14-9 to read as follows:
14-10 Sec. 2056.001. DEFINITION. In this chapter, "state agency"
14-11 means a department, board, commission, or other entity of state
14-12 government, other than [including] a university system or [and] an
14-13 institution of higher education as defined by Section 61.003,
14-14 Education Code, that:
14-15 (1) has authority that is not limited to a
14-16 geographical portion of the state;
14-17 (2) was created by the constitution or a state statute
14-18 with an ongoing mission and responsibilities;
14-19 (3) is not the office of the governor or lieutenant
14-20 governor;
14-21 (4) is not within the judicial or legislative branch
14-22 of government; and
14-23 (5) is not a committee created under state law whose
14-24 primary function is to advise an agency[; and]
14-25 [(6) is not a state-funded junior or community
14-26 college].
14-27 ARTICLE 6. OTHER FINANCIAL MATTERS
15-1 SECTION 6.01. Subchapter E, Chapter 54, Education Code, is
15-2 amended by adding Section 54.5011 to read as follows:
15-3 Sec. 54.5011. CREDIT CARD FEES. (a) An institution of
15-4 higher education that accepts payment of tuition or a fee or other
15-5 charge by credit card may charge the credit card user a fee for
15-6 processing the payment.
15-7 (b) A fee charged under this section may not exceed the
15-8 amount charged the institution by the issuer of the credit card in
15-9 connection with the payment.
15-10 (c) Before accepting a payment by credit card, the
15-11 institution shall notify the student of any fee to be charged under
15-12 this section.
15-13 SECTION 6.02. Section 54.010, Education Code, as added by
15-14 Chapter 1053, Acts of the 76th Legislature, Regular Session, 1999,
15-15 is repealed.
15-16 ARTICLE 7. EFFECTIVE DATE
15-17 SECTION 7.01. This Act takes effect immediately if it
15-18 receives a vote of two-thirds of all the members elected to each
15-19 house, as provided by Section 39, Article III, Texas Constitution.
15-20 If this Act does not receive the vote necessary for immediate
15-21 effect, this Act takes effect September 1, 2001.