By Uher H.B. No. 1545
77R3357 JSA-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the operation, regulation, and administration of public
1-3 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 [a medical and
2-12 dental unit].
2-13 (d) To the extent of any conflict, this section prevails
2-14 over any other law, including Chapters 2155, 2156, 2157, 2158, and
2-15 2170, Government Code, except a law or rule relating to contracting
2-16 with historically underutilized businesses. An institution of
2-17 higher education may, but is not required to, acquire goods or
2-18 services as provided by Chapters 2155, 2156, 2157, 2158, and 2170,
2-19 Government Code.
2-20 (e) In this section, "institution of higher education"
2-21 ["medical and dental unit"] has the meaning assigned by Section
2-22 61.003 and includes a school of veterinary medicine and a health
2-23 care facility operated by a medical and dental unit, except that
2-24 the term does not include The University of Texas M. D. Anderson
2-25 Cancer Center.
2-26 SECTION 1.02. Subchapter B, Chapter 497, Government Code, is
2-27 amended by adding Section 497.0211 to read as follows:
3-1 Sec. 497.0211. EXCEPTION: INSTITUTIONS OF HIGHER EDUCATION.
3-2 This subchapter does not apply to an institution of higher
3-3 education, as defined by Section 61.003, Education Code.
3-4 SECTION 1.03. Section 2155.067(b), Government Code, is
3-5 amended to read as follows:
3-6 (b) The agency head or the presiding officer of the agency's
3-7 governing body must sign the written justification. [For an
3-8 institution of higher education, the individual designated by the
3-9 president or governing body as purchasing officer for the
3-10 institution may sign the written justification.]
3-11 SECTION 1.04. Section 2155.268(a), Government Code, is
3-12 amended to read as follows:
3-13 (a) A state agency may not maintain and use its own bidders
3-14 list. The prohibition of this subsection does not apply to the
3-15 Texas Department of Transportation [or to an institution of higher
3-16 education as defined by Section 61.003, Education Code, but an
3-17 institution of higher education should use the master bidders list
3-18 when possible].
3-19 SECTION 1.05. Sections 2155.133, 2155.134, and 2155.135,
3-20 Government Code, are repealed.
3-21 ARTICLE 2. HUMAN RESOURCES
3-22 SECTION 2.01. Subchapter Z, Chapter 51, Education Code, is
3-23 amended by adding Section 51.961 to read as follows:
3-24 Sec. 51.961. LEAVE PROVISIONS FOR CERTAIN EMPLOYEES OF
3-25 UNIVERSITY SYSTEM. (a) In this section:
3-26 (1) "Governing board," "medical and dental unit," and
3-27 "university system" have the meanings assigned by Section 61.003.
4-1 (2) "Leave" includes vacation leave, sick leave, and
4-2 holidays.
4-3 (b) The governing board of a university system may adopt a
4-4 comprehensive leave policy that applies to:
4-5 (1) employees working in a medical and dental unit of
4-6 the university system; and
4-7 (2) after September 1, 2005, other employees of the
4-8 university system or any component institution of the system as
4-9 determined appropriate by the governing board.
4-10 (c) A policy adopted under this section may combine
4-11 vacation, sick, and holiday leave into a paid leave system that
4-12 does not distinguish or separate the types of leave to be awarded
4-13 and may award leave in an amount determined by the governing board
4-14 to be appropriate and cost-effective.
4-15 (d) Chapters 661 and 662, Government Code, do not apply to
4-16 employees covered by a policy adopted under this section. The
4-17 policy must include provisions addressing the subject matter of
4-18 each subchapter of Chapters 661 and 662, Government Code, and the
4-19 intended effect of the policy on the rights, duties, and
4-20 responsibilities of employees and the employing entity under those
4-21 subchapters.
4-22 (e) A policy adopted under this section must include
4-23 provisions for:
4-24 (1) payment for accrued leave to:
4-25 (A) the estates or heirs of deceased employees;
4-26 (B) employees separating from the employing
4-27 entity; and
5-1 (C) contributing members of state retirement
5-2 systems who retire; and
5-3 (2) awards of accrued leave to employees separating
5-4 from the employing entity who are to be employed by other state
5-5 agencies or institutions of higher education.
5-6 (f) A policy authorized by this section may include other
5-7 matters as determined relevant and appropriate by the governing
5-8 board.
5-9 (g) A policy authorized by this section must be adopted by a
5-10 governing board in an open meeting of the board.
5-11 (h) Before implementing a policy adopted under this section,
5-12 the governing board shall enter into a memorandum of understanding
5-13 with the Teacher Retirement System of Texas, the Employees
5-14 Retirement System of Texas, and the Texas Higher Education
5-15 Coordinating Board concerning awards of accrued leave for the
5-16 purposes of retirement and other issues of concern related to the
5-17 implementation of the policy.
5-18 SECTION 2.02. Subchapter Z, Chapter 51, Education Code, is
5-19 amended by adding Section 51.962 to read as follows:
5-20 Sec. 51.962. MERIT SALARY INCREASES. (a) An institution of
5-21 higher education as defined by Section 61.003 may grant merit
5-22 salary increases, including one-time merit payments, to employees
5-23 described by this section.
5-24 (b) A merit salary increase made under this section is
5-25 compensation for purposes of Chapter 659, Government Code, and
5-26 salary and wages and member compensation for purposes of Title 8,
5-27 Government Code.
6-1 (c) An institution of higher education may pay merit salary
6-2 increases under this section from any funds.
6-3 (d) Before awarding a merit salary increase under this
6-4 section, an institution of higher education must adopt criteria for
6-5 the granting of merit salary increases.
6-6 (e) To be eligible for a merit salary increase under this
6-7 section, an employee must have been employed by the institution of
6-8 higher education for the six months immediately preceding the
6-9 effective date of the increase and at least six months must have
6-10 elapsed since the employee's last merit salary increase.
6-11 SECTION 2.03. Subchapter Z, Chapter 51, Education Code, is
6-12 amended by adding Section 51.963 to read as follows:
6-13 Sec. 51.963. EMPLOYEE WITH MULTIPLE APPOINTMENTS. A
6-14 full-time employee of an institution of higher education as defined
6-15 by Section 61.003 who has appointments to more than one position at
6-16 the same institution may receive pay for working more than 40 hours
6-17 in a week if the institution determines that pay in lieu of
6-18 compensatory time is in the best interests of the institution.
6-19 SECTION 2.04. Subchapter Z, Chapter 51, Education Code, is
6-20 amended by adding Section 51.964 to read as follows:
6-21 Sec. 51.964. HIRING OF CERTAIN RETIREES. (a) An institution
6-22 of higher education as defined by Section 61.003 may employ a
6-23 person who has retired under any provision of Title 8, Government
6-24 Code, if the governing board of the institution determines that the
6-25 employment is in the best interests of the institution.
6-26 (b) The governing board may pay a person employed under this
6-27 section an amount considered by the governing board to be
7-1 appropriate. A person employed under this section may participate
7-2 in the appropriate retirement system under Title 8, Government
7-3 Code.
7-4 (c) A person employed under this section may not continue to
7-5 receive retirement benefits under other state law if the person is
7-6 employed by the institution on a greater than one-half time basis
7-7 according to rules adopted by the Teacher Retirement System of
7-8 Texas under Section 824.602, Government Code.
7-9 (d) This section prevails over other law governing the
7-10 hiring of retired employees by an institution of higher education
7-11 to the extent of any conflict.
7-12 SECTION 2.05. Subchapter Z, Chapter 51, Education Code, is
7-13 amended by adding Section 51.965 to read as follows:
7-14 Sec. 51.965. EMPLOYEE NOTIFICATION. (a) If a state law
7-15 requires an institution of higher education as defined by Section
7-16 61.003 to provide written notification to its officers or employees
7-17 of any requirement, right, duty, or responsibility provided by
7-18 state law, the institution may provide the notification by use of
7-19 electronic media.
7-20 (b) An institution of higher education may adopt rules and
7-21 guidelines to ensure that notification provided by electronic media
7-22 under this section is effective and that any required notification
7-23 is provided to officers and employees who do not have access to
7-24 electronic media.
7-25 SECTION 2.06. Section 661.062(a), Government Code, is amended
7-26 to read as follows:
7-27 (a) A state employee who, at any time during the employee's
8-1 lifetime, has accrued six months of continuous state employment and
8-2 who resigns, is dismissed, or otherwise separates from state
8-3 employment by a state agency other than an institution of higher
8-4 education is entitled to be paid for the accrued balance of the
8-5 employee's vacation time as of the date of separation, if the
8-6 individual is not reemployed by the state in a position under which
8-7 the employee accrues vacation leave during the 30-day period
8-8 immediately following the date of separation from state employment.
8-9 A state employee who, at any time during the employee's lifetime,
8-10 has accrued six months of continuous state employment and who
8-11 resigns, is dismissed, or otherwise separates from state employment
8-12 by an institution of higher education is entitled to be paid for
8-13 the accrued balance of the employee's vacation time as of the date
8-14 of separation.
8-15 SECTION 2.07. The heading to Subchapter J, Chapter 659,
8-16 Government Code, is amended to read as follows:
8-17 SUBCHAPTER J. PAYROLL REDUCTION OR DEDUCTION FOR CERTAIN
8-18 EMPLOYEE BENEFITS [OF PARKING FEES AND PERMITS]
8-19 AT INSTITUTIONS OF HIGHER EDUCATION
8-20 SECTION 2.08. Section 659.202, Government Code, is amended to
8-21 read as follows:
8-22 Sec. 659.202. PAYROLL REDUCTION OR DEDUCTION AUTHORIZED; USE
8-23 OF FUNDS. (a) An employee of an institution of higher education
8-24 may authorize in writing a reduction [deduction] each pay period
8-25 from the employee's salary or wage payment for the payment of any
8-26 fee or charge for parking, a parking permit, a transportation pass,
8-27 or other qualified transportation benefit authorized under Section
9-1 132(f), Internal Revenue Code of 1986, as amended [parking fees
9-2 charged by the institution of higher education or for the purchase
9-3 of a parking permit from an institution of higher education]. An
9-4 authorization for a reduction [deduction] under this subchapter by
9-5 the employee must be [is] voluntary. The institution shall
9-6 determine which fee or charge an employee may pay under this
9-7 subsection.
9-8 (b) An employee of an institution of higher education may
9-9 authorize in writing a deduction each pay period from the
9-10 employee's salary or wage payment for the payment of any fee or
9-11 charge for parking or for a club membership, recreational sports
9-12 membership, or similar activity or program. An authorization for a
9-13 deduction under this subchapter by the employee must be voluntary.
9-14 The institution shall determine which fee or charge an employee may
9-15 pay under this subsection. [Funds collected under this section may
9-16 be used only to provide parking facilities for employees of the
9-17 institution.]
9-18 SECTION 2.09. Subchapter J, Chapter 659, Government Code, is
9-19 amended by adding Section 659.205 to read as follows:
9-20 Sec. 659.205. STATUS OF DEDUCTION OR SALARY REDUCTION. (a)
9-21 If so designated by the employing institution of higher education,
9-22 a salary deduction made by an employee under this subchapter shall
9-23 be considered compensation under this chapter and salary and wages
9-24 and member compensation under Title 8.
9-25 (b) If authorized by federal law, a salary deduction or
9-26 salary reduction under this subchapter may be made on a pretax
9-27 basis.
10-1 SECTION 2.10. Section 822.201(b), Government Code, is amended
10-2 to read as follows:
10-3 (b) "Salary and wages" as used in Subsection (a) means:
10-4 (1) normal periodic payments of money for service the
10-5 right to which accrues on a regular basis in proportion to the
10-6 service performed;
10-7 (2) amounts by which the member's salary is reduced
10-8 under a salary reduction agreement authorized by Chapter 610;
10-9 (3) amounts that would otherwise qualify as salary and
10-10 wages under Subdivision (1) but are not received directly by the
10-11 member pursuant to a good faith, voluntary written salary reduction
10-12 agreement in order to finance payments to a deferred compensation
10-13 or tax sheltered annuity program specifically authorized by state
10-14 law or to finance benefit options under a cafeteria plan qualifying
10-15 under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.
10-16 Section 125), if:
10-17 (A) the program or benefit options are made
10-18 available to all employees of the employer; and
10-19 (B) the benefit options in the cafeteria plan
10-20 are limited to one or more options that provide deferred
10-21 compensation, group health and disability insurance, group term
10-22 life insurance, dependent care assistance programs, or group legal
10-23 services plans;
10-24 (4) performance pay awarded to an employee by a school
10-25 district as part of a total compensation plan approved by the board
10-26 of trustees of the district and meeting the requirements of
10-27 Subsection (e); [and]
11-1 (5) the benefit replacement pay a person earns under
11-2 Subchapter H, Chapter 659, as added by Chapter 417, Acts of the
11-3 74th Legislature, 1995, except as provided by Subsection (c); [and]
11-4 (6) stipends paid to teachers in accordance with
11-5 Section 21.410, Education Code;
11-6 (7) amounts by which the member's salary is reduced or
11-7 that are deducted from the member's salary as authorized by
11-8 Subchapter J, Chapter 659; and
11-9 (8) a merit salary increase made under Section 51.962,
11-10 Education Code.
11-11 SECTION 2.11. Subchapter D, Chapter 54, Education Code, is
11-12 amended by adding Section 54.220 to read as follows:
11-13 Sec. 54.220. EMPLOYEES OF INSTITUTIONS OF HIGHER EDUCATION.
11-14 The governing board of an institution of higher education may
11-15 exempt full-time employees of the institution from the payment of
11-16 all or a portion of tuition or fees of the type and in the amount
11-17 determined under a written policy adopted by the governing board.
11-18 ARTICLE 3. FINANCIAL MANAGEMENT
11-19 SECTION 3.01. Section 74.103, Education Code, is amended to
11-20 read as follows:
11-21 Sec. 74.103. GIFTS AND GRANTS. The board may accept and
11-22 administer, on terms and conditions satisfactory to it, grants and
11-23 gifts tendered to it in aid of research and teaching at the medical
11-24 school. The board may also accept from the federal government or
11-25 any foundation, trust fund, corporation, or individual donations,
11-26 gifts, and grants, including real estate, buildings, libraries,
11-27 laboratories, apparatus, equipment, records, and leases, for the
12-1 exclusive use and benefit of the medical school. [Before
12-2 acceptance of gifts, grants, and donations of real property, the
12-3 board shall secure the opinion of the attorney general on the title
12-4 of the real property to be conveyed.]
12-5 SECTION 3.02. Section 74.153, Education Code, is amended to
12-6 read as follows:
12-7 Sec. 74.153. GIFTS AND GRANTS. The board may accept and
12-8 administer, on terms and conditions satisfactory to it, grants and
12-9 gifts tendered to it in aid of research and teaching at the medical
12-10 school. The board may also accept from the federal government, any
12-11 foundation, trust fund, corporation, or individual donations,
12-12 gifts, and grants, including real estate, buildings, libraries,
12-13 laboratories, apparatus, equipment, records, and money, for the
12-14 exclusive use and benefit of the medical school. [Before
12-15 acceptance of gifts, grants, and donations of real property, the
12-16 board shall secure the opinion of the attorney general on the title
12-17 of the real property to be conveyed.]
12-18 SECTION 3.03. Section 54.006(a), Education Code, is amended
12-19 to read as follows:
12-20 (a) A general academic teaching institution or medical and
12-21 dental unit, as soon as practicable, shall refund the amount of
12-22 fees and tuition in excess of the minimum tuition collected for
12-23 courses from which a student drops [students drop] within the first
12-24 12 days of a fall or spring semester or within the first four days
12-25 of a summer term. The institution or medical and dental unit may
12-26 not delay a refund under this subsection on the grounds that the
12-27 student may withdraw from the institution or unit later in the
13-1 semester or term. The institution or unit may pay refunds under
13-2 this subsection on a pro rata basis taking into account the total
13-3 amount of tuition and fees paid by the student, the total number of
13-4 semester credit hours for which the student originally enrolled,
13-5 and the number of semester credit hours for which the student
13-6 remains enrolled. An institution may assess a nonrefundable $15
13-7 matriculation fee if the student withdraws from the institution
13-8 before the first day of classes.
13-9 SECTION 3.04. Subchapter D, Chapter 54, Education Code, is
13-10 amended by adding Section 54.202 to read as follows:
13-11 Sec. 54.202. PRORATION OF EXEMPTIONS. In determining the
13-12 amount of a fee or tuition waiver or exemption to which a student
13-13 is entitled to receive under this chapter, an institution of higher
13-14 education may set the amount of the waiver or exemption on a pro
13-15 rata basis taking into account the total number of semester credit
13-16 hours for which the student is enrolled, the amount of tuition and
13-17 fees that would be paid by the student without the exemption or
13-18 waiver, and the type or amount of tuition or fee to be waived or
13-19 exempted.
13-20 SECTION 3.05. Section 51.002(a), Education Code, is amended
13-21 to read as follows:
13-22 (a) The governing board of each institution listed in
13-23 Section 51.001 of this code may retain control of the following
13-24 sums of money collected at the institution, subject to Section
13-25 51.008 of this code:
13-26 (1) student tuition and fees of all kinds;
13-27 (2) charges for use of rooms and dormitories;
14-1 (3) receipts from meals, cafes, and cafeterias;
14-2 (4) fees on deposit refundable to students under
14-3 certain conditions;
14-4 (5) receipts from school athletic activities;
14-5 (6) income from student publications and other student
14-6 activities;
14-7 (7) receipts from the sale of publication products and
14-8 miscellaneous supplies and equipment;
14-9 (8) students' voluntary deposits of money for
14-10 safekeeping;
14-11 (9) all other fees and local or institutional funds
14-12 arising out of and by virtue of the educational activities,
14-13 research, or demonstrations carried on by the institution; and
14-14 (10) donations and gifts to the institution.
14-15 SECTION 3.06. Section 51.008(b), Education Code, is amended
14-16 to read as follows:
14-17 (b) The governing board of every state institution of higher
14-18 education shall deposit in the state treasury all cash receipts
14-19 accruing to any college or university under its control that may be
14-20 derived from all sources except tuition, laboratory and special
14-21 course fees, auxiliary enterprises, noninstructional services,
14-22 agency, designated, and restricted funds, endowment and other gift
14-23 funds, student loan funds, funds retained under Chapter 145 of this
14-24 code, and Constitutional College Building Amendment funds. The
14-25 comptroller is directed to credit such receipts deposited by each
14-26 such institution to a separate fund account for the institution
14-27 depositing the receipts, but the comptroller [he] shall not be
15-1 required to keep separate accounts of types of funds deposited by
15-2 each institution. For the purpose of facilitating the transferring
15-3 of such institutional receipts to the state treasury, each
15-4 institution shall open in a local depository bank a clearing
15-5 account to which it shall deposit daily all such receipts, and
15-6 shall, not less often than every seven days, make remittances
15-7 therefrom to the comptroller of all except $500 of the total
15-8 balance in said clearing account, such remittances to be in the
15-9 form of checks drawn on the clearing account by the duly authorized
15-10 officers of the institution, and no disbursements other than
15-11 remittances to the state treasury shall be made from such clearing
15-12 account. All money so deposited in the state treasury shall be
15-13 paid out on warrants drawn by the comptroller as provided by law.
15-14 ARTICLE 4. REPORTING
15-15 SECTION 4.01. Section 2166.101, Government Code, is amended
15-16 by adding Subsection (f) to read as follows:
15-17 (f) If information to be obtained from an institution of
15-18 higher education, as defined by Section 61.003, Education Code, for
15-19 inclusion in the report is also included in another report to be
15-20 made by the institution of higher education to another state
15-21 agency, the commission, the agency receiving the other report, and
15-22 the institution of higher education shall enter into a memorandum
15-23 of understanding concerning the information to be reported in order
15-24 to enable the institution of higher education to provide the
15-25 required information in the most cost-effective manner taking into
15-26 account the costs to each affected agency.
15-27 SECTION 4.02. Section 2167.005, Government Code, is amended
16-1 by adding Subsection (c) to read as follows:
16-2 (c) If information to be included in the report is also
16-3 included in another report to be made by the institution of higher
16-4 education to another state agency, the commission, the agency
16-5 receiving the other report, and the institution of higher education
16-6 shall enter into a memorandum of understanding concerning the
16-7 information to be reported in order to enable the institution of
16-8 higher education to provide the required information in the most
16-9 cost-effective manner taking into account the costs to each
16-10 affected agency.
16-11 ARTICLE 5. STRATEGIC PLANNING
16-12 SECTION 5.01. Section 2056.001, Government Code, is amended
16-13 to read as follows:
16-14 Sec. 2056.001. DEFINITION. In this chapter, "state agency"
16-15 means a department, board, commission, or other entity of state
16-16 government, other than [including] a university system or [and] an
16-17 institution of higher education as defined by Section 61.003,
16-18 Education Code, that:
16-19 (1) has authority that is not limited to a
16-20 geographical portion of the state;
16-21 (2) was created by the constitution or a state statute
16-22 with an ongoing mission and responsibilities;
16-23 (3) is not the office of the governor or lieutenant
16-24 governor;
16-25 (4) is not within the judicial or legislative branch
16-26 of government; and
16-27 (5) is not a committee created under state law whose
17-1 primary function is to advise an agency[; and]
17-2 [(6) is not a state-funded junior or community
17-3 college].
17-4 ARTICLE 6. OTHER FINANCIAL MATTERS
17-5 SECTION 6.01. Section 54.502(a), Education Code, is amended
17-6 to read as follows:
17-7 (a) An institution of higher education shall collect a
17-8 reasonable deposit not to exceed $50 [$10] from each student to
17-9 insure the institution against losses, damages, and breakage in
17-10 libraries and laboratories. The deposit shall be returned on the
17-11 withdrawal or graduation of a student, less any loss, damage, or
17-12 breakage caused by the student.
17-13 SECTION 6.02. Subchapter E, Chapter 54, Education Code, is
17-14 amended by adding Section 54.5011 to read as follows:
17-15 Sec. 54.5011. CREDIT CARD FEES. An institution of higher
17-16 education that accepts payment of tuition, a fee, or other charge
17-17 by credit card may charge the credit card user a fee for processing
17-18 the payment.
17-19 SECTION 6.03. Section 54.010, Education Code, as added by
17-20 Chapter 1053, Acts of the 76th Legislature, Regular Session, 1999,
17-21 is repealed.
17-22 ARTICLE 7. EFFECTIVE DATE
17-23 SECTION 7.01. This Act takes effect immediately if it
17-24 receives a vote of two-thirds of all the members elected to each
17-25 house, as provided by Section 39, Article III, Texas Constitution.
17-26 If this Act does not receive the vote necessary for immediate
17-27 effect, this Act takes effect September 1, 2001.