By:  Morrison                                                     H.B. No. 2861



A BILL TO BE ENTITLED

AN ACT

relating to the accountability of, and reporting by, public 
institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter H, Chapter 51, Education Code, is 
amended by adding Section 51.4015 to read as follows:
	Sec. 51.4015.  ACCOUNTABILITY OF, AND REPORTING BY, 
INSTITUTIONS OF HIGHER EDUCATION.  (a)  In this section 
"institution of higher education," "governing board," and 
"university system" have the meanings assigned by Section 61.003.
	(b)  In furtherance of the policies of this state to provide 
an affordable, accessible, accountable, and high quality system of 
higher education that prepares individuals for a changing economy 
and workforce and to promote the development and application of 
knowledge through instruction, research, and public service, each 
governing board of a university system shall adopt standards that 
measure the performance of each institution of higher education 
under its jurisdiction.
	(c)  The standards required by Subsection (b) must include:             
		(1)  standards that measure the availability of each 
institution to potential students and the success of students in 
meeting the academic requirements of the institution;
		(2)  standards relating to academic excellence                         
		(3)  standards relating to service to and support by 
communities; and
		(4)  standards relating to organizational efficiency 
and productivity.
	(d)  The governing body of each university system shall file 
an annual report of the performance of each institution of higher 
education under its jurisdiction in meeting the standards adopted 
under this section.  The report shall be filed with the governor's 
budget office, the Legislative Budget Board, the Texas Higher 
Education Coordinating Board, and the Legislative Audit Committee.  
The report is due February 1 following each academic year.
	(e)  The report required by Subsection (d) is the only 
periodic report of the performance of each institution of higher 
education required to be made other than a report specifically 
required by the General Appropriations Act.  The Texas Higher 
Education Coordinating Board is not required to prepare a summary 
of the report required by this section as otherwise would be 
required by Section 51.404.
	SECTION 2.  This Act takes effect September 1, 2003.  The 
first report required by Section 51.4015, Education Code, as added 
by this Act, is due February 1, 2004.