Amend CSSB 1652 by adding the following appropriately 
numbered ARTICLE and renumbering the other ARTICLES accordingly:

ARTICLE ____.  STUDY OF ORGANIZATION, OPERATIONS, AND FUNDING OF 
HIGHER EDUCATION
	SECTION _____.01.  The legislature finds that:                                 
		(1)  it is vital to the economy of this state that all 
areas of the state have access to quality higher education;
		(2)  it is in the interest of all residents of this state 
that an efficient and sufficiently funded higher education 
infrastructure exist that affords residents opportunities to 
become educated and productive members of the state's economy; and
		(3)  the Texas Higher Education Coordinating Board's 
report on closing the gaps provides an appropriate starting point 
for constructing a plan for meeting the state's current and future 
higher education needs.
	SECTION _____.02.  (a)  An interim committee is established 
to study the organization, operations, and funding of higher 
education.  The interim committee is composed of:
		(1)  eight members of the house of representatives 
appointed by the speaker of the house;
		(2)  six members of the senate appointed by the 
lieutenant governor; and    
		(3)  four public members appointed by the governor.                           
	(b)  The membership of the committee must be representative 
of all geographic areas of the state.
	(c)  The committee shall be co-chaired by the chairs of the 
standing committee of each house of the legislature with primary 
jurisdiction over higher education.
	(d)  The committee shall:                                                      
		(1)  study the structure and organization of higher 
education in this state, including the administration and 
operations of public and independent institutions of higher 
education; and
		(2)  study the equity and adequacy of higher education 
funding and its relationship to the purposes of higher education, 
including providing opportunities to students to achieve their 
educational goals, furthering knowledge through research, and 
providing direct services as local, regional, and state engines of 
economic development.
	(e)  In its review, the committee shall examine the effects of 
student and community characteristics on the costs of higher 
education, including the income and education levels of the 
families of students, unemployment rates, population growth, and 
other uncontrollable factors.
	(f)  In its review, the committee shall identity the number 
and types of classified and unclassified positions in the 
administration of each university system and examine each major 
function, service, or activity performed by university system 
offices, including:
		(1)  central administration;                                                  
		(2)  academic affairs coordination and support;                               
		(3)  general counsel and other legal services;                                
		(4)  budgeting, accounting, and data reporting;                               
		(5)  fiscal management;                                                       
		(6)  facilities planning and construction;                                    
		(7)  governmental relations;                                                  
		(8)  audit services;                                                          
		(9)  real estate management;                                                  
		(10)  information technology services; and                                    
		(11)  aircraft operation and usage.                                           
	(g)  In its recommendations, the committee shall identify 
opportunities for legislative and administrative action relating 
to:
		(1)  changes in the organization and operations of 
institutions of higher education that will improve opportunities 
for residents of all areas of the state to enroll in and complete 
programs of higher education;
		(2)  changes in the funding of institutions of higher 
education and university systems to maximize the state's limited 
resources to meet the higher education needs of the state, 
including incentives for sharing arrangements to improve 
productivity;
		(3)  accountability measures and performance incentives 
for institutions of higher education and university systems that 
are aligned with the purposes of higher education and that are 
sensitive to mission differentiation among institutions of higher 
education;
		(4)  the consolidation or reorganization of university 
system office functions and services, including the consolidation 
or reorganization of university systems to promote efficiency and 
productivity; and
		(5)  potential reductions in personnel and other cost 
savings associated with the committee's recommendations.
	(h)  The committee's recommendations under Subsection (g) 
must include a plan for deregulating seminaries and similar 
institutions offering exclusively religious education or training.  
The plan must permit those institutions to confer or offer to confer 
religious degrees without accreditation and may include disclosure 
requirements and other appropriate safeguards to address potential 
fraud or deception.  The requirements or safeguards may not 
authorize the state or a political subdivision of the state to 
assert regulatory authority over religious degree programs offered 
by those institutions.
	(i)  Not later than November 1, 2004, the committee shall 
prepare a report describing its findings and recommendations and 
deliver the report to the governor, lieutenant governor, speaker of 
the house of representatives, Legislative Budget Board, and members 
of the standing committee of each house of the legislature with 
primary jurisdiction over higher education.
	(j)  The committee is abolished and this section expires 
September 1, 2005.