SRC-LBB, JLB, AMY S.B. 1652 78(R)BILL ANALYSIS
Senate Research CenterS.B. 1652
By: Shapiro
Education
7/14/2003
Enrolled
DIGEST AND PURPOSE
Currently, Texas higher education institutions are subject to a plethora
of laws, regulations, policies, and procedures mandated by the state and
federal governments, regulatory agencies, and private-sector
organizations. S.B. 1652 sets forth a guide for the administration,
operation, governance, and financing of Texas higher education
institutions.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
ARTICLE 1. FINANCIAL MATTERS
SECTION 1.01. Amends Section 11.11(e), Tax Code, to provide that property
that is held or dedicated for the support, maintenance, or benefit of an
institution of higher education as defined by Section 61.003, Education
Code, but is not rented or leased for compensation to a private business
enterprise to be used by it for a purpose not related to the performance
of the duties and functions of the state or institution or is not rented
or leased to provide private residential housing to members of the public
other than students and employees of the state or institution is not
taxable. Provides that if a portion of property of an institution of
higher education is used for public purposes and a portion is not used for
those purposes, the portion of the property used for public purposes is
exempt under this subsection. Provides that property bequeathed to an
institution is exempt from the assessment of ad valorem taxes from the
date of the decedent's death, unless a certain condition exists.
SECTION 1.02. Amends Section 2254.021(2), Government Code, to redefine
"major consulting services contract."
SECTION 1.03. Amends Section 2254.028, Government Code, by adding
Subsection (c) to provide that Subsection (a)(3) does not apply to a major
consulting services contract to be entered into by an institution of
higher education other than a public junior college if the institution
includes in the invitation published under Section 2254.029 a finding by
the chief executive officer of the institution that the consulting
services are necessary and an explanation of that finding.
SECTION 1.04. Amends Sections 2254.031(b) and (d), Government Code, as
follows:
(b) Requires a state agency that intends to renew a contract that is not
a major consulting services contract to comply with Sections 2254.028 and
2254.029 if the original contract and the renewal contract have a
reasonably foreseeable value totaling more than $15,000, or $25,000 for an
institution of higher education other than a public junior college.
(d) Makes a conforming change.
SECTION 1.05. Amends Section 53.02, Education Code, by adding Subdivision
(14), to define "borrower."
SECTION 1.06. Amends Section 53.33, Education Code, as follows:
Sec. 53.33. LIMITED POWER TO ACQUIRE, OWN, AND OPERATE EDUCATIONAL AND
HOUSING FACILITIES. (a) Authorizes an authority or a nonprofit
instrumentality created under Section 53.35(b) to acquire, own, hold title
to, lease, or operate an educational facility or housing facility or any
facility incidental, subordinate, or related to or appropriate in
connection with an educational facility or housing facility, under certain
circumstances.
(b) Authorizes an authority or instrumentality that exercises the powers
granted by Subsection (a) to contract for the operation of the facility by
public or private entities or persons on the terms and conditions set
forth in a contract relating to the operation of the facility.
(c) Provides that the changes in law made by the amendment of this
section by the 78th Legislature, Regular Session, 2003, do not affect the
acquisition, ownership, construction, or improvement of a facility, or the
acquisition and ownership of land that were approved by official action of
the authority or nonprofit corporate instrumentality before March 15,
2003, and the law in effect immediately before the effective date of the
amendment of this section by the 78th Legislature, Regular Session, 2003,
is continued in effect for that purpose.
SECTION 1.07. Amends Section 53.34, Education Code, as follows:
Sec. 53.34. REVENUE BONDS. (a) Authorizes an authority or a nonprofit
instrumentality created under Section 53.35(b), including an authority or
nonprofit instrumentality authorized to own facilities under Section
53.33(a), to issue and execute revenue bonds or other obligations to loan
or otherwise provide funds to a borrower under certain circumstances.
(b) Provides that in issuing revenue bonds or other obligations under
this chapter, the issuer of the bonds or other obligations is considered
to be acting on behalf of the city by which it was created.
(c) Requires bonds or other obligations issued under Subsection (a) to be
payable from and secured by a pledge of the revenue, income, or assets
pledged for the purpose by the borrower. Authorizes the bonds or other
obligations to be additionally secured by a mortgage, deed of trust, or
chattel mortgage on real or personal property, or on both real and
personal property, if granted by the borrower.
(d) Provides that a facility financed with the proceeds of a loan or
loans made to a borrower under Subsection (a) is not required to be
located within the corporate limits of the city that created the issuer of
the bonds or other obligations.
(e) Authorizes an authority or a nonprofit instrumentality that is
authorized to acquire and own educational facilities and housing
facilities under Section 53.33(a) to issue and execute revenue bonds and
other obligations for the purpose of acquiring, owning, and operating the
educational and housing facilities, to create operating reserves for the
facilities, and to create debt service reserves for and to pay issuance
costs related to the bonds or other obligations.
(f) Requires bonds or other obligations issued under Subsection (e) to be
payable from and secured by a pledge of all or any part of the gross or
net revenues to be derived from the operation of the educational
facilities and housing facilities being acquired and any other revenue,
income, or assets, including the revenue and income of the educational
facilities or housing facilities previously acquired or subsequently to be
acquired. Authorizes the bonds or other obligations to be additionally
secured by a mortgage, deed of trust, or chattel mortgage on real or
personal property, or on both real and personal property, if granted by
the authority or nonprofit instrumentality issuing the bonds or other
obligations.
(g) Provides that the changes in law made by the amendment of this
section by the 78th Legislature, Regular Session, 2003, affect and apply
only to transactions involving bonds or other obligations that are issued
or executed under this chapter on or after March 15, 2003. Provides that
bonds or other obligations that are issued or executed under this chapter
before March 15, 2003, are governed by the law in effect immediately
before the amendment of this section by the 78th Legislature, Regular
Session, 2003, and that former law is continued in effect for that
purpose.
SECTION 1.08. Amends Section 53.35(b), Education Code, to authorize, in
addition to or in lieu of establishing an authority under the provisions
of this chapter, the governing body of a city or cities to request or
order created one or more nonprofit corporations to act on its behalf and
as its duly constituted authority and instrumentality to exercise the
powers granted to an authority under the provisions of Sections 53.33 and
53.34. Provides that if a nonprofit corporation is created for such
purposes or agrees to such request, the directors thereof shall thereafter
be appointed and be subject to removal by the governing body of the city
or cities. Requires the corporation to have all powers granted under the
Texas Non-Profit Corporation Act for the purpose of aiding institutions of
higher education in providing educational facilities and housing
facilities and facilities incidental, subordinate, or related thereto or
appropriate in connection therewith, in addition to the powers granted
under, and subject to the limitations provided by, Sections 53.33 and
53.34. Provides that in addition to Sections 53.33 and 53.34 and the
Texas Non-Profit Corporation Act, as amended (Article 1396-1.01,
V.T.C.S.), Sections 53.131, 53.14, 53.15, 53.31, 53.32, 53.331, 53.34,
53.35, 53.38, and 53.41 of this code apply to and govern such corporation
and its procedures, bonds, and other obligations.
SECTION 1.09. Amends Section 53.48, Education Code, as follows:
Sec. 53.48. BONDS FOR ACCREDITED PRIMARY OR SECONDARY SCHOOLS. Authorizes
a corporation created under Section 53.35(b) to issue and execute bonds or
other obligations to finance or refinance educational facilities or
housing facilities to be used by an accredited primary or secondary school
or by an authorized charter school, in the same manner that a corporation
may issue and execute bonds or other obligations under this chapter for an
institution of higher education
SECTION 1.10. Amends Subchapter D, Chapter 54, Education Code, by adding
Section 54.2111, as follows:
Sec. 54.2111. EXEMPTIONS FOR ADOPTED STUDENTS FORMERLY IN FOSTER OR OTHER
RESIDENTIAL CARE. Provides that a student is exempt from the payment of
tuition and fees authorized by this chapter if the student:
(1) was adopted; and
(2) was the subject of an adoption assistance agreement under Subchapter
D, Chapter 162, Family Code.
SECTION 1.11. Amends Section 54.5011, Education Code, as follows:
Sec. 54.5011. New heading: CHARGES AND FEES FOR CERTAIN PAYMENTS. (a)
Provides that this section applies to a payment of tuition, a fee, or
another charge to an institution of higher education that is made or
authorized in person, by mail, by telephone call, or through the Internet
by certain means.
(b) Authorizes an institution of higher education to charge a certain fee
or other amount in connection with a payment to which this section
applies, in addition to the amount of the tuition, fee, or other charge
being paid. Deletes text regarding a credit card fee.
(c) Requires a fee or other charge under this section to be in an amount
reasonably related to the expense incurred by the institution in
processing and handling the payment or payment transaction. Deletes text
prohibiting a certain amount from being exceeded, and text requiring the
institution to notify the student of any fee to be charged under this
section.
(d) Redesignated from Subsection (c).
SECTION 1.12. Amends Section 153.006, Education Code, as follows:
Sec. 153.006. SUPPORT OF CENTERS. (a) Authorizes an institution of
higher education, in order to carry out the purposes of this chapter and
to support the activities of centers described in this chapter, to the
extent authorized by its governing board, to perform certain acts,
including to enter into certain contracts for legal services with a
competent lawyer or law firm.
(b) Authorizes the fees or other compensation paid in connection with a
legal services contract authorized by Subsection (a) to be paid on a
contingency fee basis, at an hourly rate, or on another basis the
governing board of the institution considers appropriate.
SECTION 1.13. Amends Section 2254.102, Government Code, by adding
Subsection (c), to provide that this subchapter does not apply to a
contract for legal services entered into by an institution of higher
education under Section 153.006, Education Code.
SECTION 1.14. Amends Section 404.097(d), Government Code, to authorize
legal fees and expenses to be paid from the recovered funds under a
contingent fee contract for legal services only under certain conditions.
SECTION 1.15. Amends Section 21.042, Property Code, by adding Subsection
(f) to prohibit the special commissioners, in awarding compensation or
assessing damages for a condemnation by an institution of higher
education, as defined by Section 61.003, Education Code, from including in
the compensation or damages any amount that compensates for, or is based
on the present value of, an exemption from ad valorem taxation applicable
to the property before its condemnation.
SECTION 1.16. Amends Section 55.004, Property Code, by adding Subsection
(f), to provide that if the physician is employed in that capacity by an
institution of higher education, as defined by Section 61.003
(Definitions), Education Code, and the lien does not include the amount of
the physician's reasonable and necessary charges described by Subsection
(c), the physician has a lien on the cause of action in the same manner as
a hospital under this chapter. Provides that the lien is subject to
provisions of this chapter applicable to a hospital lien. Authorizes the
physician or the physician's employing institution to secure and enforce
the lien in the manner provided by this chapter.
SECTION 1.17. Amends Subchapter A, Chapter 56, Education Code by adding
Section 56.004, as follows:
Sec. 56.004. FILING FEES IN SUITS TO COLLECT DELINQUENT STUDENT LOANS.
Requires the institution of higher education, if it brings suit to collect
or enforce the repayment of a delinquent student loan, to pay in advance
one-half of the applicable filing fee and other costs payable in advance
to the clerk of the court, notwithstanding any other law. Requires the
institution, if the defaulting borrower prevails in the suit, to pay the
remaining one-half of the filing fee and costs on the date of the final
disposition of the suit. Sets forth the required actions should the
institution prevail.
SECTION 1.18. Amends Section 403.072, Government Code, by adding
Subsection (d) prohibit the comptroller, in its rules adopted under this
section, from requiring an institution of higher education, as defined by
Section 61.003 (Definitions), Education Code, that processes its own
payroll to submit payroll information to the comptroller relating to
individual employees of the institution that is not required by the
comptroller to make any distribution of state money to the institution to
cover the institution's payroll.
SECTION 1.19. Provides that Section 54.2111, Education Code, as added by
this Act, applies beginning with tuition and fees charged for the 2003
fall semester. Provides that tuition and fees charged for a semester or
session before the 2003 fall semester are governed by the applicable law
in effect before the effective date of this Act, and that law is continued
in effect for that purpose.
SECTION 1.20. Makes application of Section 56.004, Education Code, as
added by this Act, prospective.
ARTICLE 2. HUMAN RESOURCES
SECTION 2.01. Amends Section 609.001, Government Code, by adding
Subdivision (2-a) and amending Subdivision (8) to define "institution of
higher education" and make a conforming change.
SECTION 2.02. Amends Section 609.002, Government Code, to include an
institution of higher education, or a group of institutions of higher
education, in the list of entities that create 457 or 401(k) plans, for
which vendor can be a qualified vendor under certain circumstances. Makes
a nonsubstantive change.
SECTION 2.03. Amends Section 609.003(b), Government Code, to require the
approval of an investment product for a 401(k) plan of a political
subdivision, or a group thereof; an institution of higher education; or a
457 plan of an institution of higher education to be in accordance with a
contract between the plan administrator and a qualified vendor.
SECTION 2.04. Amends Section 609.007, Government Code, by adding
Subsection (e), to authorize an institution of higher education to
contract with an employee of the institution of higher education for the
deferment of any part of the employee's compensation.
SECTION 2.05. Amends Chapter 609, Government Code, by adding Subchapter
D, as follows:
SUBCHAPTER D. DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF INSTITUTIONS
OF HIGHER EDUCATION
Sec. 609.701. DEFINITIONS. Defines "deferred compensation plan,"
"deferred compensation trust fund," and "investment product."
Sec. 609.702. CREATION OF PLAN. (a) Authorizes an institution of higher
education to create and administer for its employees a 457 plan under this
subchapter.
(b) Authorizes an institution of higher education to contract with other
institutions of higher education to create a single deferred compensation
plan for their employees under Subsection (a).
Sec. 609.703. DESIGNATION OF PLAN ADMINISTRATOR. (a) Requires an
institution of higher education that creates a deferred compensation plan
to designate a plan administrator for the plan.
(b) Requires institutions of higher education that create a single plan to
designate jointly a plan administrator for the plan.
(c) Authorizes certain persons and entities to be a plan administrator.
Sec. 609.704. REMOVAL OF PLAN ADMINISTRATOR. Authorizes an institution
of higher education, or group of institutions of higher education, that
designates a plan administrator to remove that plan administrator at any
time unless specifically provided otherwise by the contract.
Sec. 609.705. OVERSIGHT COMMITTEE. (a) Authorizes an institution of
higher education, or group of institutions of higher education, that
creates a deferred compensation plant to direct and supervise the plan
administrator's activities through an oversight committee.
(b) Requires the institution of higher education, or group of institutions
of higher education, to determine the authority, activities, and
composition of an oversight committee created under this section.
Sec. 609.706. AUTHORITY OF PLAN ADMINISTRATOR. (a) Requires a plan
administrator to execute necessary contracts for the administration of the
deferred compensation plan, subject to any prior approval by the
institution of higher education, or group of institutions of higher
education, that created the plan.
(b) Requires a plan administrator to develop and implement criteria and
procedures for any matter not covered by this subchapter that the plan
administrator considers appropriate for the operation of the deferred
compensation plan.
Sec. 609.707. INVESTMENT AND TRANSFER OF DEFERRED AMOUNTS AND INCOME.
Require the plan administer to perform certain activities.
Sec. 609.708. PARTICIPATION OF INDEPENDENT CONTRACTORS. (a) Requires the
plan administrator to determine whether a person who provides services as
an independent contractor to an institution of higher education that
created the plan is authorized to participate in the deferred compensation
plan.
(b) Provides that for the purposes of this chapter and Subchapter A, an
independent contractor is authorized to participate in a deferred
compensation plan is treated as an employee of the institution of higher
education creating the plan.
Sec. 609.709. CHANGING AMOUNT DEFERRED. Authorizes an employee to change
the amount to be deferred by notifying the plan administrator of the
change in accordance with the administrator's requirements.
Sec. 609.710. DISTRIBUTION. Requires a plan administrator to develop and
implement certain procedures.
Sec. 609.711. FEE. (a) Authorizes an institution of higher education, or
group of institutions of higher education, that creates a deferred
compensation plan to assess a fee for the administration of the plan
against each participating employee.
(b) Requires the institution of higher education, or group of institutions
of higher education, to determine the method for computing and assessing
the fee.
Sec. 609.712. EVALUATION AND APPROVAL OF QUALIFIED VENDOR. (a) Requires
a plan administrator to develop and implement criteria and procedures for
evaluating a vendor's application to become a qualified vendor.
(b) Prohibits a plan administrator from approving a vendor's application
under certain circumstances.
(c) Requires the Texas Department of Insurance (TDI), upon written
request, to certify in writing to a plan administrator whether an
insurance company is prohibited from being approved as a qualified vendor
under Subsection (b)(3). Authorizes the plan administrator to rely on the
certification.
Sec. 609.713. NUMBER OF VENDORS UNDER 457 PLAN. Requires the
administrator of a 457 plan to determine the minimum and maximum number of
vendors authorized to be qualified vendors for the plan at any given time.
Sec. 609.714. CONTRACT WITH QUALIFIED VENDOR. (a) Requires the plan
administrator, after approving a vendor's application to become a
qualified vendor, to execute a written contract with the vendor to
participate in the deferred compensation plan.
(b) Requires a plan administrator to develop and implement criteria and
procedures for evaluating a qualified vendor's investment products to
determine whether those products are acceptable as qualified investment
products.
(c) Authorizes a qualified vendor to offer to employees participating in a
457 plan only qualified investment products.
Sec. 609.715. REGULATION OF QUALIFIED VENDORS. Requires a plan
administrator to develop and implement requirements for qualified vendors
and their employees concerning certain matters.
Sec. 609.716. TRANSFER ON VENDOR'S FAILURE. Authorizes an institution of
higher education, or group of institutions of higher education, that
creates a deferred compensation plan to authorize of require as a part of
the plan that the plan administrator immediately transfer to the deferred
compensation trust fund all deferred amounts and investment income from a
vendor who fails to satisfy the requirements of this subchapter or the
plan administrator.
SECTION 2.06. Amends Section 51.964(a), Education Code, to reduce from
one calendar year to 30 days the period of time a person must be retired
before being employed by an institution of higher education as defined by
Section 61.003 if the person retired under the Teacher Retirement System
(Subtitle C, Title 8, Government Code) or the optional retirement program
(Chapter 830, Government Code).
SECTION 2.07. Amends Subchapter A, Chapter 51, Education Code, by adding
Section 51.0065, as follows:
Sec. 51.0065. APPLICABILITY OF ACROSS-THE-BOARD SALARY INCREASE. Entitles
an institution of higher education that has adopted a pay-for-performance
program that is in effect when an across-the-board salary increase for
state employees made by an appropriation act of the legislature takes
effect to receive any appropriation made for purposes of the
across-the-board salary increase, and authorizes the use of the amount
appropriated for an across-the-board salary increase or for increases in
compensation under the institution's pay-for-performance program.
SECTION 2.08. Amends Section 1601.102, Insurance Code, by amending
Subsection (b) and adding Subsections (f) and (g), as follows:
(b) Increases the minimum time of service with a system required for
eligibility to participate in the uniform program as provided by
Subsection (a) from three to 10 years.
(f) Sets forth the prerequisites for an individual to whom this subsection
applies to be eligible to participate in the uniform program as provided
by Subsection (a), notwithstanding Subsection (b).
(g) Sets forth to whom Subsection (f) applies.
SECTION 2.09. Amends the heading to Section 51.961, Education Code, as
added by Chapter 118, Acts of the 77th Legislature, Regular Session, 2001,
to read as follows:
Sec. 51.961. LEAVE PROVISIONS FOR EMPLOYEES OF UNIVERSITY SYSTEM OR
COMPONENT INSTITUTION OF SYSTEM.
SECTION 2.10. Amends Sections 51.961(a) and (b), Education Code, as added
by Chapter 118, Acts of the 77th Legislature, Regular Session, 2001, as
follows:
(a) Provides that in this section "governing board" and "university
system" rather than "governing board," "university system," and "medical
and dental unit" have the meaning assigned by Section 61.003.
(b) Authorizes the governing board of a university system to adopt a
comprehensive leave policy that applies to employees of the university
system or any component institution of the system.
SECTION 2.11. Amends Section 1601.101, Insurance Code, by adding
Subsection (d), to provide that an individual is eligible to participate
in the uniform program as provided by Subsection (a) if the individual is
serving a postdoctoral fellowship with an institution in a system.
SECTION 2.12. Provides that the changes in law made by this article to
Sections 609.001, 609.002, 609.003, and 609.007, Government Code, and
Subchapter D, Chapter 609, Government Code, as added by this article, take
effect January 1, 2004.
SECTION 2.13. Provides that Section 1601.101(d), Insurance Code, as added
by this article, takes effect September 1, 2003.
ARTICLE 3. INFORMATION TECHNOLOGY
SECTION 3.01. Amends Section 2054.100, Government Code, by adding
Subsection (d), as follows:
(d) Provides that the biennial operating plan of an institution of higher
education is required to include only operational projects and
infrastructure projects. Prohibits the instructions provided under
Section 2054.101 from requiring an institution of higher education to
include other projects in the plan.
SECTION 3.02. Amends Section 2054.121, Government Code, as follows:
Sec. 2054.121. New heading: COORDINATION WITH INSTITUTIONS OF HIGHER
EDUCATION. (a) Creates this subsection from existing text.
(b) Provides that the Information Technology Council for Higher Education
consists of the chief information officer or equivalent employee of:
(1) The Texas A&M University System;
(2) The University of Texas System;
(3) The Texas State University System;
(4) The University of North Texas System;
(5) The University of Houston System;
(6) The Texas Tech University System; and
(7) one institution of higher education, other than a public junior
college, not included in a university system listed in this subsection who
is selected by a majority of the chief executive officers of all the
institutions of higher education, other than public junior colleges, not
included in a listed university system.
(c) Requires the Department of Information Resources (DIR), before
adopting a proposed rule that applies to institutions of higher education,
to prepare, in consultation with the council established by Subsection
(b), an analysis of the impact of the rule on institutions of higher
education that includes consideration of:
(1) the impact of the rule on the mission of higher education, student
populations, and federal grant requirements;
(2) alternate methods of implementation to achieve the purpose of the
rule; and
(3) exempting institutions of higher education from all or part of the
requirements of the rule.
(d) Requires DIR to include its analysis as part of the notice of the
proposed rule that the agency files with the secretary of state for
publication in the Texas Register and to provide copies to the governor,
the lieutenant governor, and the speaker of the house of representatives.
(e) Provides that each DIR rule that applies to institutions of higher
education and that is in effect on September 1, 2003, ceases to apply to
institutions of higher education on September 1, 2004, unless readopted by
DIR on or after September 1, 2003, in a form that expressly applies to
institutions of higher education.
ARTICLE 4. REGULATORY AND ADMINISTRATIVE MATTERS
SECTION 4.01. Amends Section 51.782(i), Education Code, to require a
construction managerat-risk to publicly advertise, in the manner
prescribed by the institution, and receive bids or proposals from trade
contractors or subcontractors for the performance of all major elements of
the work other than general conditions work. Authorizes construction
manger-at-risk to seek to perform major elements, rather than portions, of
the work itself if the construction manager-atrisk submits its bid or
proposals for that, rather than those portions, work in the same manner as
all other trade contractors or subcontractors and if the board determines
that the construction manager-at-risk's bid or proposal provides that best
value for the institution. Authorizes the board, if no satisfactory bid
or proposal for a major element of the work is received in the time
allowed, to negotiate directly with the construction manager-at-risk for
performance of that work. Authorizes the board to negotiate directly with
the manager-at-risk for the performance of minor elements of the work that
are not included in major work packages.
SECTION 4.02. Amends Subchapter B, Chapter 502, Labor Code, by adding
Section 502.025, as follows:
Sec. 502.025. COVERAGE FOR OUT-OF-STATE EMPLOYEES. (a) Provides that
an employee who performs services outside the state is entitled to
benefits under this chapter even if the person meets certain criteria.
(b) Provides that an employee who elects to pursue remedies provided by
the state where the injury occurred is not entitled to benefits under this
chapter.
SECTION 4.03. Amends Subchapter B, Chapter 503, Labor Code, by adding
Section 503.025, as follows:
Sec. 503.025. COVERAGE FOR OUT-OF-STATE EMPLOYEES. (a) Provides that
an employee who performs services outside the state is entitled to
benefits under this chapter event if the person meets certain criteria.
(b) Provides that an employee who elects to pursue remedies provided by
the state where the injury occurred is not entitled to benefits under this
chapter.
SECTION 4.04. Amends Section 65.45, Education Code, as follows:
Sec. 65.45. New heading: SCIENCE AND TECHNOLOGY DEVELOPMENT,
MANAGEMENT, AND TRANSFER. (a) Authorizes the board of regents of The
University of Texas (board) to enter into agreements with individuals,
corporations, partnerships, associations, and local, state, or federal
agencies for funding the discovery, development, and commercialization of
new products, technology, and scientific information, including an
agreement to manage a national laboratory engaged in any of those
endeavors. Authorizes, at the discretion of the board, research
facilities, funding, and personnel at the various component institutions
of The University of Texas System to be utilized to achieve the purposes
of this section.
(b) Redesignated from former Subsection (c) to authorize the board to
perform certain functions as a means of carrying out the purposes of this
section, through one or more corporations incorporated by the board or
under any other cooperative arrangement.
(c) Redesignated from former Subsection (e) to authorize the board to
cooperate in any manner the board considers appropriate with similar
programs operated by other state-supported institutions of higher
education in this state or in other states.
SECTION 4.05. Amends the heading to Section 551.121, Government Code, to
read as follows:
Sec. 551.121. GOVERNING BOARD OF INSTITUTION OF HIGHER EDUCATION; BOARD
FOR LEASE OF UNIVERSITY LANDS.
SECTION 4.06. Amends Sections 551.121(b), (c), and (e), Government Code,
as follows:
(b) Provides that this chapter does not prohibit the governing board of
an institution of higher education or the Board for Lease of University
Lands (BLUL) from holding an open or closed meeting by telephone
conference call.
(c) Authorizes a meeting held by telephone conference call to be held
only if certain criteria is met.
(e) Requires the notice of a telephone conference call meeting of a
governing board to specify as the location of the meeting the location
where meetings of the governing board are usually held. Requires the
notice, for a meeting of BLUL, to specify as the location of the meeting a
suitable conference or meeting room at The University of Texas System
office.
SECTION 4.07. Amends Subchapter C, Chapter 552, Government Code, by
adding Section 552.1235, as follows:
Sec. 552.1235. EXCEPTION: IDENTITY OF PRIVATE DONOR TO INSTITUTION OF
HIGHER EDUCATION. (a) Provides that the name or other information that
would tend to disclose the identity of a person, other than a governmental
body, who makes a gift, grant, or donation of money or property to an
institution of higher education or to another person with the intent that
the money or property be transferred to an institution of higher education
is excepted from the requirements of Section 552.021.
(b) Provides that Subsection (a) does not except from required disclosure
other information relating to gifts, grants, and donations described by
Subsection (a), including the amount or value of an individual gift,
grant, or donation.
(c) Defines "institution of higher education."
SECTION 4.08. Amends Section 2161.123(a), Government Code, to require
each state agency, including the Texas Building and Procurement Commission
(TBPC), that is required to have a strategic plan under Chapter 2056, to
include in its strategic plan a written plan for increasing the agency's
use of historically underutilized business in purchasing the public works
contracting. Requires the governing board of each university system or
institution of higher education not included in a university system, other
than a public junior college, to prepare a written plan for increasing the
use of historically underutilized business in purchasing and public works
contracting by the system or institution.
SECTION 4.09. Amends Section 85.51, Education Code, as follows:
Sec. 85.51. AUTHORITY TO LEASE. (a) Creates this subsection from
existing text to authorize the board to lease for oil, gas, sulphur,
mineral ore, and other mineral developments all lands and mineral
interests under its control, owned or in the future acquired by the state
for the use of the university system.
(b) Authorizes the board to offer oil and gas leases at public auction,
by sealed bid, by negotiated agreement, or through any other means that
the board considers to be in the best interest of the university system.
SECTION 4.10. Amends Subchapter B, Chapter 85, Education Code, by adding
Section 85.18, as follows:
Sec. 85.18. MANDATORY VENUE. (a) Provides that venue for a suit filed
against the board or a member of the board in the member's official
capacity is in Brazos County.
(b) Provides that venue for a suit filed against The Texas A&M University
System, any component of The Texas A&M University System, or any officer
or employee of The Texas A&M University System is in the county in which
the primary office of the chief executive officer of the system or
component, as applicable, is located.
(c) Provides that this section does not waive any defense to or immunity
from suit or liability that may be asserted by an entity or individual
described by this section.
(d) Provides that in case of a conflict between this section and any
other law, this section controls.
(e) Provides that the changes in law made by the adoption of this section
apply only to an action brought on or after September 1, 2003.
SECTION 4.11. Provides that Sections 502.025 and 503.025, Labor Code, as
added by this article, apply only to a claim for workers' compensation
benefits based on a compensable injury that occurs on or after the
effective date of this Act. Provides that a claim based on a compensable
injury that occurs before the effective date of this Act is governed by
the law in effect on the date injury occurred, and the former law is
continued in effect for that purpose.
SECTION 4.12. Provides that Section 552.1235, Government Code, as added
by this article, applies to a request for information made before, on, or
after the effective date of this Act.
ARTICLE 5. REPORTING
SECTION 5.01. Amends Sections 51.680(b) and (c), Education Code, as
follows:
(b) Authorizes an institution, rather than institutions, of higher
education to file or post on the institution's website on the Internet in
a manner available to the public policies amended to overcome any failure
to meet the standards. Makes nonsubstantive changes.
(c) Provides that it is a policy of the state that each institution of
higher education shall at all times after August 31, 1988, have a current
copy of its intellectual property policies that meet the minimum standards
set out in Subsection (a) on file with THECB or publicly posted on the
institution's website on the Internet in a manner available to the public.
SECTION 5.02. Amends Section 2152.064, Government Code, by adding
Subsection (f), to provide that this section does not apply to a
university system or an institution of higher education as those terms are
defined by Section 61.003, Education Code.
SECTION 5.03. Amends Section 2155.448, Government Code, by adding
Subsection (d), to provide that this section does not apply to a
university system or an institution of higher education as those terms are
defined by Section 61.003, Education Code.
SECTION 5.04. Amends Section 2166.101(a), Government Code, to provide
that this section applies to a state-owned building, including a building
otherwise exempt from this chapter under Section 2166.003, except that
this section does not apply to a building owned by an institution of
higher education as defined by Section 61.003, Education Code.
SECTION 5.05. Repealer: Section 2166.101(f) (Compilation of Construction
and Maintenance Information), Government Code.
ARTICLE 6. INTERCOLLEGIATE ATHLETICS FEE AT PRAIRIE VIEW A&M UNIVERSITY
SECTION 6.01. Amends Subchapter E, Chapter 54, Education Code, by adding
Section 54.5393, as follows:
Sec. 54.5393. INTERCOLLEGIATE ATHLETICS FEE: PRAIRIE VIEW A&M
UNIVERSITY. (a) Authorizes the board of regents of The Texas A&M
University System to impose an intercollegiate athletics fee on each
student enrolled at Prairie View A&M University in an amount not to exceed
$10 per semester credit hour.
(b) Prohibits the amount of the fee imposed on a student in a semester or
session from exceeding the amount of the fee imposed on a student enrolled
in 15 semester credit hours during the same semester or session.
(c) Prohibits the fee from being imposed unless approved by a majority
vote of the students of the university participating in a general student
election held for that purpose.
(d) Requires a fee imposed under this section to be used to develop and
maintain an intercollegiate athletics program at the university.
(e) Provides that a fee imposed under this section is in addition to any
other fee authorized by law and may not be considered in determining the
maximum amount of student services fees that may be imposed under Section
54.503.
(f) Provides that this section expires September 1, 2013.
SECTION 6.02. Provides that this article applies beginning with the 2003
fall semester.
ARTICLE 7. UNIVERSITY OF NORTH TEXAS AT DALLAS
SECTION 7.01. Amends Section 105.451(d), Education Code, as follows:
(d) Authorizes the University of North Texas at Dallas to operate as a
general academic teaching institution with its own chief executive
officer, administration, and faculty only after the Texas Higher Education
Coordinating Board certifies that enrollment at the University of North
Texas System Center at Dallas has reached an enrollment equivalent to
1,000, rather than 2,500, full-time students for one semester. Prohibits
the University of North Texas at Dallas from receiving general revenue in
excess of the 2003 expended amount with the exception of funding provided
through the General Academic Instruction and Operations Formula for
semester credit hour increases and the Tuition Revenue Bond debt service
for bonds approved in the 78th Legislature, prior to reaching 2,500
full-time equivalent students Provides that the institution will not be
eligible to receive the small school supplement in the General Academic
Instruction and Operations Formula until it reaches 2,500 full-time
equivalent student enrollment.
ARTICLE 8. STUDY OF ORGANIZATION, OPERATIONS,
AND FUNDING OF HIGHER EDUCATION
SECTION 8.01. Provides that 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 8.02. (a) Provides that an interim committee is established to
study the organization, operations, and funding of higher education.
Provides the composition of the interim committee.
(b) Requires the membership of the committee to be representative of all
geographic areas of the state.
(c) Requires the committee to be cochaired by the chairs of the standing
committee of each house of the legislature with primary jurisdiction over
higher education.
(d) Requires the committee to perform certain functions.
(e) Requires the committee, in its review, to 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) Requires the committee, in its review, to identify 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) Requires the committee, in its recommendations, to identify
opportunities for legislative and administrative action relating to
certain areas.
(h) Requires the committee's recommendations under Subsection (g) of this
section to include a plan for deregulating seminaries and similar
institutions offering exclusively religious education or training.
Requires the plan to 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. Prohibits the requirements or safeguards to authorize the
state or a political subdivision of the state to assert regulatory
authority over religious degree programs offered by those institutions.
(i) Requires the committee, not later than November 1, 2004, to 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) Provides that the committee is abolished and this section expires
September 1, 2005.
ARTICLE 9. SECURITY OFFICERS
SECTION 9.01. (a) Amends Section 51.214, Education Code, as follows:
Sec. 51.214. SECURITY OFFICERS FOR MEDICAL CORPORATIONS IN CERTAIN
MUNICIPALITIES. (a) Authorizes the governing board of a private,
nonprofit medical corporation, in any municipality with a population of
1.18 million or more, that provides security services for an institution
of higher education or a private postsecondary educational institution and
other entities located within the same medical complex, or that provides
security services for a branch of that medical corporation, rather than
complex, to employ and commission security personnel to enforce the law of
this state within the jurisdiction designated by Subsection (c).
(b) Authorizes an officer commissioned under this section to make arrests
and has all the powers, privileges, and immunities of a peace officer
while performing the officer's assigned duties within the jurisdiction
designated by Subsection (c). Makes conforming changes.
(c) Provides that the jurisdiction of an officer commissioned under this
section is limited to:
(1) property owned, leased, managed, or controlled by the medical
corporation; and
(2) a street or alley that abuts the property or an easement in or a
right-ofway over or through the property.
(d) Provides that an officer commissioned by a medical corporation under
this section is not entitled to compensation or benefits provided by this
state or a political subdivision of this state.
(e) Provides that the state or a political subdivision of this state is
not liable for an act or omission of an officer commissioned under this
section during the performance of the officer's assigned duties.
(f) Prohibits a medical corporation to commission a person under this
section unless the person obtains a peace officer license issued by the
Commission on Law Enforcement Officer Standards and Education. Requires
the medical corporation to pay to the Commission on Law Enforcement
Officer Standards and Education on behalf of an employee any fees that are
necessary to obtain a required license.
(g) Provides that a person's commission and any authority to act as an
officer under this section are automatically revoked if the person's
employment with a medical corporation is terminated for any reason.
(b) Provides that this section takes effect September 1, 2003.
(c) Requires a person commissioned before the effective date of this
section by a private nonprofit medical corporation under Section 51.214,
Education Code, to obtain a peace officer license issued by the Commission
on Law Enforcement Officer Standards and Education not later than
September 1, 2004. Provides that if that person does not obtain the
license by that date, the person's commission and any authority to act as
an officer under Section 51.214, Education Code, as amended by this
section, are automatically revoked.
ARTICLE 10. EFFECTIVE DATE
SECTION 10.01. Effective date: upon passage or September 1, 2003 except
as otherwise provided by another provision of this Act.