S.B. No. 1652




AN ACT
relating to institutions of higher education, including the administration, operation, governance, and financing of those institutions, and to certain security services provided to such institutions and certain other educational institutions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. FINANCIAL MATTERS
SECTION 1.01. Subsection (e), Section 11.11, Tax Code, is amended to read as follows: (e) Property [It is provided, however, 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 [in Chapter 61], [Texas] 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. 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. All oil, gas, and other mineral interests owned by an institution of higher education are exempt from all ad valorem taxes. Property bequeathed to an institution is exempt from the assessment of ad valorem taxes from the date of the decedent's death, unless: (1) the property is leased for compensation to a private business enterprise as provided in this subsection; or (2) the transfer of the property to an institution is contested in a probate court, in which[. In this] case[,] ad valorem taxes shall be assessed to the estate of the decedent until the final determination of the disposition of the property is made. The property is exempt from the assessment of ad valorem taxes upon vesting of the property in the institution. SECTION 1.02. Subdivision (2), Section 2254.021, Government Code, is amended to read as follows: (2) "Major consulting services contract" means a consulting services contract for which it is reasonably foreseeable that the value of the contract will exceed $15,000, or $25,000 for an institution of higher education other than a public junior college. SECTION 1.03. Section 2254.028, Government Code, is amended by adding Subsection (c) to read as follows: (c) 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. Subsections (b) and (d), Section 2254.031, Government Code, are amended to read as follows: (b) A state agency that intends to renew a contract that is not a major consulting services contract shall 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) A state agency that intends to amend or extend a contract that is not a major consulting services contract shall comply with Sections 2254.028 and 2254.029 if the original contract and the amendment or extension 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. SECTION 1.05. Section 53.02, Education Code, is amended by adding Subdivision (14) to read as follows: (14) "Borrower" means any of the following entities that is the recipient of a loan made under Section 53.34: (A) an institution of higher education; (B) a nonprofit corporation: (i) incorporated by and under the exclusive control of an institution of higher education; or (ii) incorporated and operating for the exclusive benefit of an institution of higher education and authorized by the governing board of the institution to enter into a transaction as a borrower under this chapter; (C) an accredited primary or secondary school; or (D) an authorized charter school. SECTION 1.06. Section 53.33, Education Code, is amended to read as follows: Sec. 53.33. LIMITED POWER TO ACQUIRE, OWN, AND OPERATE EDUCATIONAL AND HOUSING FACILITIES[: CONSTRUCTION, ACQUISITION, ETC]. (a) An [The] authority or a nonprofit instrumentality created under Section 53.35(b) may 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, but only if: (1) the facility is or will be located within the corporate limits of the city that created the authority or nonprofit instrumentality; (2) the governing body of an institution of higher education officially requests the authority or nonprofit instrumentality to acquire and own the facility for the benefit of the institution of higher education; (3) the institution of higher education officially agrees to accept, and has authority to receive legal title to, the facility not later than the date on which any bonds or other obligations issued to acquire the facility are paid in full; and (4) the ownership of the facility by the authority or the nonprofit instrumentality is approved by official action of the governing body of: (A) the city that created the authority or nonprofit instrumentality; (B) the school district in which the facility is or will be located; and (C) the county in which the facility is or will be located. (b) An authority or instrumentality that exercises the powers granted by Subsection (a) may 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) 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 [by purchase, purchase contract, or lease, may construct, or may enlarge, extend, repair, renovate, or otherwise improve educational facilities or housing facilities. It may acquire land for those purposes, furnish and equip the facilities, and provide by contract, lease, or otherwise for the operation and maintenance of the facilities. The facilities need not be located within the city limits of the city or cities]. SECTION 1.07. Section 53.34, Education Code, is amended to read as follows: Sec. 53.34. REVENUE BONDS. (a) An [The] 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), may issue and execute revenue bonds or other obligations to loan or otherwise provide funds to a borrower if: (1) the governing body of the borrower by official action requests the issuer of the bonds or other obligations to loan the proceeds under this subsection; (2) the purpose of the loan is to enable the borrower to acquire, construct, enlarge, extend, repair, renovate, or otherwise improve 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, or for acquiring land to be used for those purposes, or to create operating and debt service reserves for and to pay issuance costs related to the bonds or other obligations; and (3) under the terms of the loan, and unless a mortgage lien granted to secure the loan is in default, the ownership of the facility is required to be at all times under the exclusive control, and held for the exclusive benefit, of the borrower [for any of its purposes]. (b) In issuing revenue bonds or other obligations under this chapter, the issuer of the bonds or other obligations [authority] is considered to be acting on behalf of the [any] city by which it was created. (c) Bonds or other obligations issued under Subsection (a) [(b) The bonds] shall be payable from and secured by a pledge of the revenue, income, [all or any part of the gross or net revenue to be derived from the operation of the facility or facilities and any other revenue] or assets pledged for the purpose by the borrower. The bonds or other obligations may be additionally secured by a mortgage, [or] deed of trust, [on real property of the authority] or [by a] chattel mortgage on real or [its] personal property, or on [by] both real and personal property, if granted by the borrower. (d) 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) An authority or a nonprofit instrumentality that is authorized to acquire and own educational facilities and housing facilities under Section 53.33(a) may 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) Bonds or other obligations issued under Subsection (e) shall 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. The bonds or other obligations may 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) 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. 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. Subsection (b), Section 53.35, Education Code, is amended to read as follows: (b) In addition to or in lieu of establishing an authority under the provisions of this chapter, the governing body of a city or cities may 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 [Section] 53.33 and 53.34[, Texas Education Code]. 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. In addition to the powers [of lease or acquisition of facilities] granted under, and subject to the limitations provided by, Sections [Section] 53.33 and 53.34, the corporation shall 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 Sections [the provisions of Section] 53.33 and 53.34 and the Texas Non-Profit Corporation Act, as amended (Article 1396-1.01, Vernon's Texas Civil Statutes), 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[, Texas Education Code, shall] apply to and govern such corporation and its procedures, [and] bonds, and other obligations. SECTION 1.09. Section 53.48, Education Code, is amended to read as follows: Sec. 53.48. BONDS FOR ACCREDITED PRIMARY OR SECONDARY SCHOOLS. In the same manner that a corporation may issue and execute bonds or other obligations under this chapter for an institution of higher education, a corporation created under Section 53.35(b) may 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. SECTION 1.10. Subchapter D, Chapter 54, Education Code, is amended by adding Section 54.2111 to read as follows: Sec. 54.2111. EXEMPTIONS FOR ADOPTED STUDENTS FORMERLY IN FOSTER OR OTHER RESIDENTIAL CARE. 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. Section 54.5011, Education Code, is amended to read as follows: Sec. 54.5011. CHARGES AND [CREDIT CARD] FEES FOR CERTAIN PAYMENTS. (a) 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 means of: (1) an electronic funds transfer; or (2) a credit card. (b) An institution of higher education may charge a 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, including: (1) a discount, convenience, or service charge for the transaction; or (2) a service charge in connection with a payment transaction that is dishonored or refused for lack of funds or insufficient funds [that accepts payment of tuition, a fee, or other charge by credit card may charge the credit card user a fee for processing the payment]. (c) [(b)] A fee or other charge [charged] under this section must be in an amount reasonably related to the expense incurred by the institution in processing and handling [may not exceed the amount charged the institution by the issuer of the credit card in connection with] the payment or payment transaction. (d) [(c)] Before accepting a payment by credit card, the institution shall notify the student of any fee to be charged under this section. SECTION 1.12. Section 153.006, Education Code, is amended to read as follows: Sec. 153.006. SUPPORT OF CENTERS. (a) 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, an institution of higher education may: (1) enter into agreements establishing royalties, fees, and other consideration for technology developed in whole or part by it; (2) accept equity interests in organizations that license, manage, or otherwise administer rights to technology belonging to it or under its control in exchange for such rights, in whole or in part; (3) accept equity interests in organizations that license or otherwise have rights in its technology as consideration for its providing monetary, business, scientific, or engineering services or technical assistance; (4) use income from the commercialization of technology to fund the activities of the center; (5) solicit, accept, and administer gifts, grants, and donations; [and] (6) enter into contracts for legal services with a competent lawyer or law firm to: (A) prepare, file, pursue, and maintain patent applications in the United States or foreign jurisdictions; (B) secure copyright protection for computer software; (C) prepare, file, and pursue trademark and service mark applications; (D) pursue litigation to prevent or stop infringement of any intellectual property rights of the institution; or (E) handle any other legal matter related to the operation and activities of the center; and (7) enter into such other business arrangements as may be appropriate for achieving the purposes of this chapter. (b) The fees or other compensation paid in connection with a legal services contract authorized by Subsection (a) may 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. Section 2254.102, Government Code, is amended by adding Subsection (c) to read as follows: (c) 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. Subsection (d), Section 404.097, Government Code, is amended to read as follows: (d) Legal fees and expenses may be paid from the recovered funds under a contingent fee contract for legal services only: (1) after the funds are deposited in accordance with this section; and (2) in accordance with Subchapter C, Chapter 2254, if that subchapter applies to the contract. SECTION 1.15. Section 21.042, Property Code, is amended by adding Subsection (f) to read as follows: (f) In awarding compensation or assessing damages for a condemnation by an institution of higher education, as defined by Section 61.003, Education Code, the special commissioners may not include 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. Section 55.004, Property Code, is amended by adding Subsection (f) to read as follows: (f) If the physician is employed in that capacity by an institution of higher education, as defined by Section 61.003, 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. The lien is subject to provisions of this chapter applicable to a hospital lien, and the physician or the physician's employing institution may secure and enforce the lien in the manner provided by this chapter. SECTION 1.17. Subchapter A, Chapter 56, Education Code, is amended by adding Section 56.004 to read as follows: Sec. 56.004. FILING FEES IN SUITS TO COLLECT DELINQUENT STUDENT LOANS. Notwithstanding any other law, if an institution of higher education brings suit to collect or enforce the repayment of a delinquent student loan, the institution is required to pay in advance one-half of the applicable filing fee and other costs payable in advance to the clerk of the court. If the defaulting borrower prevails in the suit, the institution shall pay the remaining one-half of the filing fee and costs on the date of the final disposition of the suit. If the institution prevails in the suit: (1) the judgment shall include a finding that the defaulting borrower is liable to the institution for the full amount of the filing fee and costs; and (2) the institution shall pay the remaining one-half of the filing fee and costs not later than the seventh day after the date on which the defaulting borrower pays to the institution the full amount, including the amount of the filing fee and costs, for which the borrower is liable to the institution. SECTION 1.18. Section 403.072, Government Code, is amended by adding Subsection (d) to read as follows: (d) In its rules adopted under this section, the comptroller may not require an institution of higher education, as defined by Section 61.003, 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. Section 54.2111, Education Code, as added by this Act, applies beginning with tuition and fees charged for the 2003 fall semester. 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. Section 56.004, Education Code, as added by this article, applies only to a suit filed by an institution to collect or enforce the repayment of a delinquent student loan on or after the effective date of this Act. A suit filed before the effective date is covered by the law in effect when the suit was filed, and the former law is continued in effect for that purpose.
ARTICLE 2. HUMAN RESOURCES
SECTION 2.01. Section 609.001, Government Code, is amended by adding Subdivision (2-a) and amending Subdivision (8) to read as follows: (2-a) "Institution of higher education" means an institution of higher education as defined by Section 61.003, Education Code, other than a public junior college. (8) "State agency" means a board, commission, office, department, or other agency in the executive, judicial, or legislative branch of state government, including an institution of higher education [as defined by Section 61.003, Education Code, but does not include a public junior college]. SECTION 2.02. Section 609.002, Government Code, is amended to read as follows: Sec. 609.002. QUALIFICATIONS FOR QUALIFIED VENDOR. A vendor may be a qualified vendor for a 457 plan or a 401(k) plan created by a political subdivision, [or] group of political subdivisions, an institution of higher education, or a group of institutions of higher education only if the vendor satisfies the requirements for participation in the deferred compensation plan provided by: (1) this chapter; and (2) the plan administrator. SECTION 2.03. Subsection (b), Section 609.003, Government Code, is amended to read as follows: (b) The approval of an investment product for a 401(k) plan of a political subdivision, [or] group of political subdivisions, an institution of higher education, or a group of institutions of higher education, or for a 457 plan of an institution of higher education or group of institutions of higher education, must be in accordance with a contract between the plan administrator and a qualified vendor. SECTION 2.04. Section 609.007, Government Code, is amended by adding Subsection (e) to read as follows: (e) An institution of higher education may contract with an employee of the institution of higher education for the deferment of any part of the employee's compensation. SECTION 2.05. Chapter 609, Government Code, is amended by adding Subchapter D to read as follows:
SUBCHAPTER D. DEFERRED COMPENSATION PLANS FOR EMPLOYEES OF INSTITUTIONS OF HIGHER EDUCATION
Sec. 609.701. DEFINITIONS. In this subchapter: (1) "Deferred compensation plan" means a plan established under this subchapter. (2) "Deferred compensation trust fund" means the fund in which deferred amounts and investment income of participating employees are temporarily held. (3) "Investment product" includes a fixed or variable rate annuity, mutual fund, certificate of deposit, money market account, passbook savings account, stock, bond, obligation, and any other investment product not prohibited under Section 457, Internal Revenue Code of 1986, as amended. Sec. 609.702. CREATION OF PLAN. (a) An institution of higher education may create and administer for its employees a 457 plan under this subchapter. (b) An institution of higher education may 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) An institution of higher education that creates a deferred compensation plan shall designate a plan administrator for the plan. (b) Institutions of higher education that create a single plan shall designate jointly a plan administrator for the plan. (c) A plan administrator may be an employee, a nonprofit corporation, an individual, a trustee, a private entity, another institution of higher education, or an association of institutions of higher education. Sec. 609.704. REMOVAL OF PLAN ADMINISTRATOR. An institution of higher education or group of institutions of higher education that designates a plan administrator may remove the plan administrator at any time unless specifically provided otherwise by contract. Sec. 609.705. OVERSIGHT COMMITTEE. (a) An institution of higher education or group of institutions of higher education that creates a deferred compensation plan may direct and supervise the activities of the plan administrator through an oversight committee. (b) The institution of higher education or group shall determine the authority, activities, and composition of an oversight committee created under this section. Sec. 609.706. AUTHORITY OF PLAN ADMINISTRATOR. (a) A plan administrator shall execute necessary contracts for the administration of the deferred compensation plan, subject to any prior approval required by the institution of higher education or group of institutions of higher education that created the plan. (b) A plan administrator shall 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. The plan administrator shall: (1) invest the deferred amounts and investment income of a participating employee in the qualified investment products designated by the employee; and (2) transfer the deferred amounts and investment income of a participating employee from one qualified investment product to another on the employee's request. Sec. 609.708. PARTICIPATION OF INDEPENDENT CONTRACTORS. (a) The plan administrator shall determine whether a person who provides services as an independent contractor to an institution of higher education that created the plan may participate in the deferred compensation plan. (b) For the purposes of Subchapter A and this subchapter, an independent contractor that 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. An employee may change the amount to be deferred by notifying the plan administrator of the change in accordance with the requirements of the administrator. Sec. 609.710. DISTRIBUTION. A plan administrator shall develop and implement procedures for: (1) the designation by a participating employee of a beneficiary to receive the employee's deferred amounts and investment income after the employee's death; and (2) the distribution of a participating employee's deferred amounts and investment income to the employee or the employee's beneficiary, as appropriate, because of the employee's death or termination of employment, a financial hardship, or another reason permissible under federal law. Sec. 609.711. FEE. (a) An institution of higher education or group of institutions of higher education that creates a deferred compensation plan may assess a fee for the administration of the plan against each participating employee. (b) The institution of higher education or group of institutions of higher education shall determine the method for computing and assessing the fee. Sec. 609.712. EVALUATION AND APPROVAL OF QUALIFIED VENDOR. (a) A plan administrator shall develop and implement criteria and procedures for evaluating a vendor's application to become a qualified vendor. (b) A plan administrator may not approve a vendor's application if the vendor is: (1) a state or national bank or savings and loan association, the deposits of which are not insured by the Federal Deposit Insurance Corporation; (2) a credit union, the deposits of which are not insured by the National Credit Union Administration Board; or (3) an insurance company that: (A) is not a member of the Texas Life, Accident, Health, and Hospital Service Insurance Guaranty Association; or (B) is an impaired or insolvent insurer under Article 21.28-D, Insurance Code. (c) On written request, the Texas Department of Insurance shall certify in writing to a plan administrator whether an insurance company is prohibited from being approved as a qualified vendor under Subsection (b)(3). The plan administrator may rely on the certification. Sec. 609.713. NUMBER OF VENDORS UNDER 457 PLAN. The plan administrator of a 457 plan shall determine the minimum and maximum number of vendors that may be qualified vendors for the plan at any given time. Sec. 609.714. CONTRACT WITH QUALIFIED VENDOR. (a) After a plan administrator approves an application of a vendor to become a qualified vendor, the plan administrator shall execute a written contract with the vendor to participate in the deferred compensation plan. (b) A plan administrator shall 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) A qualified vendor may offer to employees participating in a 457 plan only qualified investment products. Sec. 609.715. REGULATION OF QUALIFIED VENDORS. A plan administrator shall develop and implement requirements for qualified vendors and their employees concerning disclosure, reporting, standards of conduct, solicitation, advertising, relationships with participating employees, the nature and quality of services provided to those employees, and other matters. Sec. 609.716. TRANSFER ON VENDOR'S FAILURE. An institution of higher education or group of institutions of higher education that creates a deferred compensation plan may authorize or 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. Subsection (a), Section 51.964, Education Code, is amended to read as follows: (a) An institution of higher education as defined by Section 61.003 may employ a person who has retired under the Teacher Retirement System (Subtitle C, Title 8, Government Code) or the optional retirement program (Chapter 830, Government Code) if: (1) the governing board of the institution determines that the employment is in the best interests of the institution; and (2) the person has been retired for at least 30 days [one calendar year] before the effective date of the employment, except that a person retired under the optional retirement program may be rehired after retirement without a break in service. SECTION 2.07. Subchapter A, Chapter 51, Education Code, is amended by adding Section 51.0065 to read as follows: Sec. 51.0065. APPLICABILITY OF ACROSS-THE-BOARD SALARY INCREASE. 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 is entitled to receive any appropriation made for purposes of the across-the-board salary increase, and may use 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. Section 1601.102, Insurance Code, is amended by amending Subsection (b) and adding Subsections (f) and (g) to read as follows: (b) An individual is eligible to participate in the uniform program as provided by Subsection (a) if: (1) the individual has at least 10 [three] years of service with a system for which the individual was eligible to participate in the uniform program under Section 1601.101; (2) the individual's last state employment before retirement was with that system; and (3) the individual retires under the jurisdiction of: (A) the Teacher [Teachers] Retirement System of Texas under Subtitle C, Title 8, Government Code; (B) the Employees Retirement System of Texas; or (C) subject to Subsection (c): (i) the optional retirement program established by Chapter 830, Government Code; or (ii) any other federal or state statutory retirement program to which the system has made employer contributions. (f) Notwithstanding Subsection (b), an individual to whom this subsection applies is eligible to participate in the uniform program as provided by Subsection (a) if: (1) the individual has at least three years of service with a system for which the individual was eligible to participate in the uniform program under Section 1601.101; (2) the individual's last state employment before retirement was with that system; and (3) the individual retires under the jurisdiction of: (A) the Teacher Retirement System of Texas under Subtitle C, Title 8, Government Code; (B) the Employees Retirement System of Texas; or (C) subject to Subsection (c): (i) the optional retirement program established by Chapter 830, Government Code; or (ii) any other federal or state statutory retirement program to which the system has made employer contributions. (g) Subsection (f) applies only to a person who, on August 31, 2003: (1) was eligible to participate in the uniform program as an employee under Section 1601.101; or (2) was eligible to participate in the uniform program as a retired employee under this section as this section existed on January 1, 2003. SECTION 2.09. The heading to Section 51.961, Education Code, as added by Chapter 118, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 51.961. LEAVE PROVISIONS FOR [CERTAIN] EMPLOYEES OF UNIVERSITY SYSTEM OR COMPONENT INSTITUTION OF SYSTEM. SECTION 2.10. Subsections (a) and (b), Section 51.961, Education Code, as added by Chapter 118, Acts of the 77th Legislature, Regular Session, 2001, are amended to read as follows: (a) In this section: (1) "Governing board[,]" ["medical and dental unit,"] and "university system" have the meanings assigned by Section 61.003. (2) "Leave" includes vacation leave, sick leave, and holidays. (b) The governing board of a university system may adopt a comprehensive leave policy that applies to employees [working in a hospital or clinic of a medical and dental unit] of the university system or any component institution of the system. SECTION 2.11. Section 1601.101, Insurance Code, as effective June 1, 2003, is amended by adding Subsection (d) to read as follows: (d) 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. 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. Subsection (d), Section 1601.101, Insurance Code, as added by this article, takes effect September 1, 2003.
ARTICLE 3. INFORMATION TECHNOLOGY
SECTION 3.01. Section 2054.100, Government Code, is amended by adding Subsection (d) to read as follows: (d) The biennial operating plan of an institution of higher education is required to include only operational projects and infrastructure projects. The instructions provided under Section 2054.101 may not require an institution of higher education to include other projects in the plan. SECTION 3.02. Section 2054.121, Government Code, is amended to read as follows: Sec. 2054.121. COORDINATION WITH [AMONG] INSTITUTIONS OF HIGHER EDUCATION. (a) An institution of higher education shall coordinate its use of information technologies with other such institutions to more effectively provide education, research, and community service. (b) 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) Before adopting a proposed rule that applies to institutions of higher education, the department shall 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) The department shall 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 shall provide copies to the governor, the lieutenant governor, and the speaker of the house of representatives. (e) Each department 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 the department 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. Subsection (i), Section 51.782, Education Code, is amended to read as follows: (i) A construction manager-at-risk shall 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 [the minor work that may be included in the] general conditions work. A construction manager-at-risk may seek to perform major elements [portions] of the work itself if the construction manager-at-risk submits its bid or proposal for that [those portions of the] 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 the best value for the institution. If no satisfactory bid or proposal for a major element of the work is received in the time allowed, the board may negotiate directly with the construction manager-at-risk for performance of that work. The board may 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. Subchapter B, Chapter 502, Labor Code, is amended by adding Section 502.025 to read as follows: Sec. 502.025. COVERAGE FOR OUT-OF-STATE EMPLOYEES. (a) An employee who performs services outside this state is entitled to benefits under this chapter even if the person: (1) is hired or not hired in this state; (2) does not work in this state; (3) works both in this state and out of state; (4) is injured outside this state; or (5) has been outside this state for more than one year. (b) An employee who elects to pursue remedies provided by this state where the injury occurred is not entitled to benefits under this chapter. SECTION 4.03. Subchapter B, Chapter 503, Labor Code, is amended by adding Section 503.025 to read as follows: Sec. 503.025. COVERAGE FOR OUT-OF-STATE EMPLOYEES. (a) An employee who performs services outside this state is entitled to benefits under this chapter even if the person: (1) is hired or not hired in this state; (2) does not work in this state; (3) works both in this state and out of state; (4) is injured outside this state; or (5) has been outside this state for more than one year. (b) An employee who elects to pursue remedies provided by this state where the injury occurred is not entitled to benefits under this chapter. SECTION 4.04. Section 65.45, Education Code, is amended to read as follows: Sec. 65.45. SCIENCE AND [CENTER FOR] TECHNOLOGY DEVELOPMENT, MANAGEMENT, AND TRANSFER. (a) The legislature finds that it is essential to the economic growth of the state that the potential for the development and growth of high technology industry be promoted and expanded. As a means of accomplishing this purpose, the board [is authorized to establish, maintain, and support a Center for Technology Development and Transfer at The University of Texas at Austin and may accept and administer, upon terms and conditions acceptable to the board, gifts, grants, and donations to aid in the establishment, maintenance, and operation of the center. [(b) Subject to the rules and regulations of the board, the center] may enter into [solicit and submit for approval of the board] 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. At the discretion of the board, research facilities, funding, and personnel at the various component institutions of The University of Texas System may be utilized to achieve the purposes of this section. (b) [(c)] As a means of carrying out the purposes of [the center under] this section, the board may, [either through the center or] through one or more corporations incorporated by the board or under any other cooperative arrangement: (1) own and license rights to products, technology, and scientific information; (2) own shares in corporations engaged in the discovery, development, manufacture, management, or marketing of products, technology, or scientific information in this state or outside this state [under a license from the board, the center, or a corporation owned or controlled by the board]; (3) participate [as the general partner or as a limited partner], either directly or through a subsidiary corporation or other legal entity formed for that purpose, [in limited partnerships, general partnerships, or joint ventures engaged] in the discovery, development, manufacture, management, or marketing of products, technology, or scientific information on behalf of the United States or a state or local governmental entity [under a license from the board, the center, or a corporation owned or controlled by the board]; and (4) carry on and support such other activities as the board may deem appropriate for achieving the purposes of this section. (c) [(d) The Center for Technology Development and Transfer established by this section shall not receive general revenue funds through special item appropriation in the biennial General Appropriations Act. [(e)] The board may [Center for Technology Development and Transfer established by this section shall] cooperate in any manner the board considers appropriate [fully] with similar programs operated by other state-supported institutions of higher education in this state or in other states. SECTION 4.05. The heading to Section 551.121, Government Code, is amended to read as follows: Sec. 551.121. GOVERNING BOARD OF INSTITUTION OF HIGHER EDUCATION; BOARD FOR LEASE OF UNIVERSITY LANDS. SECTION 4.06. Subsections (b), (c), and (e), Section 551.121, Government Code, are amended to read as follows: (b) This chapter does not prohibit the governing board of an institution of higher education or the Board for Lease of University Lands from holding an open or closed meeting by telephone conference call. (c) A meeting held by telephone conference call may be held only if: (1) the meeting is a special called meeting and immediate action is required; and (2) the convening at one location of a quorum of the governing board or Board for Lease of University Lands is difficult or impossible. (e) The notice of a [the] telephone conference call meeting of a governing board must specify as the location of the meeting the location where meetings of the governing board are usually held. For a meeting of the governing board of a university system, the notice must specify as the location of the meeting the board's conference room at the university system office. For a meeting of the Board for Lease of University Lands, the notice must specify as the location of the meeting a suitable conference or meeting room at The University of Texas System office. SECTION 4.07. Subchapter C, Chapter 552, Government Code, is amended by adding Section 552.1235 to read as follows: Sec. 552.1235. EXCEPTION: IDENTITY OF PRIVATE DONOR TO INSTITUTION OF HIGHER EDUCATION. (a) 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) 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) In this section, "institution of higher education" has the meaning assigned by Section 61.003, Education Code. SECTION 4.08. Subsection (a), Section 2161.123, Government Code, is amended to read as follows: (a) Each state agency, including the commission, that is required to have a [shall prepare as part of its] strategic plan under Chapter 2056 shall include in its strategic plan a written plan for increasing the agency's use of historically underutilized businesses in purchasing and public works contracting. The governing board of each university system or institution of higher education not included in a university system, other than a public junior college, shall prepare a written plan for increasing the use of historically underutilized businesses in purchasing and public works contracting by the system or institution. SECTION 4.09. Section 85.51, Education Code, is amended to read as follows: Sec. 85.51. AUTHORITY TO LEASE. (a) The board may lease for oil, gas, sulphur, mineral ore, and other mineral developments [to the highest bidder at public auction] all lands and mineral interests [used for experimental stations and all other lands] under its [exclusive] control, [or any part of those lands,] owned or in the future acquired by the state for the use of the university system. (b) The board shall 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. Subchapter B, Chapter 85, Education Code, is amended by adding Section 85.18 to read as follows: Sec. 85.18. MANDATORY VENUE. (a) 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) 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) 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) In case of a conflict between this section and any other law, this section controls. (e) 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. 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. 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 the injury occurred, and the former law is continued in effect for that purpose. SECTION 4.12. 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. Subsections (b) and (c), Section 51.680, Education Code, are amended to read as follows: (b) No later than January 31, 1988, the commissioner of higher education shall inform institutions of higher education whether their intellectual property policies meet the minimum standards set out in Subsection (a) [of this section]. Thereafter, an institution [institutions] of higher education may 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 [said] standards. The commissioner shall within a reasonable time after receiving an amended policy inform the submitting institution whether it meets the [said] standards. (c) It is a policy of the state that each institution of higher education shall at all times after August 31, 1988, have [on file with the Coordinating Board, Texas College and University System,] a current copy of its intellectual property policies that[, which policies shall at all times] meet the minimum standards set out in Subsection (a) on file with the Texas Higher Education Coordinating Board or posted on the institution's website on the Internet in a manner available to the public [of this section]. The commissioner of higher education shall establish procedures for the monitoring of this policy of the state. SECTION 5.02. Section 2152.064, Government Code, is amended by adding Subsection (f) to read as follows: (f) 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. Section 2155.448, Government Code, is amended by adding Subsection (d) to read as follows: (d) 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. Subsection (a), Section 2166.101, Government Code, is amended to read as follows: (a) 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. Subsection (f), Section 2166.101, Government Code, is repealed.
ARTICLE 6. INTERCOLLEGIATE ATHLETICS FEE AT PRAIRIE VIEW A&M UNIVERSITY
SECTION 6.01. Subchapter E, Chapter 54, Education Code, is amended by adding Section 54.5393 to read as follows: Sec. 54.5393. INTERCOLLEGIATE ATHLETICS FEE: PRAIRIE VIEW A&M UNIVERSITY. (a) The board of regents of The Texas A&M University System may 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) The amount of the fee imposed on a student in a semester or session may not exceed the amount of the fee imposed on a student enrolled in 15 semester credit hours during the same semester or session. (c) The fee may not be imposed unless approved by a majority vote of the students of the university participating in a general student election held for that purpose. (d) A fee imposed under this section shall be used to develop and maintain an intercollegiate athletics program at the university. (e) 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) This section expires September 1, 2013. SECTION 6.02. This article applies beginning with the 2003 fall semester.
ARTICLE 7. UNIVERSITY OF NORTH TEXAS AT DALLAS
SECTION 7.01. Subsection (d), Section 105.451, Education Code, is amended to read as follows: (d) Notwithstanding any other provision of this subchapter, the University of North Texas at Dallas may 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 [2,500] full-time students for one semester. Until that enrollment level is reached, the board may operate a system center of the University of North Texas in the city of Dallas. Prior to reaching 2,500 full-time equivalent students, the University of North Texas at Dallas may not receive 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. 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. 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) An interim committee is established to study the organization, operations, and funding of higher education. The interim committee is composed of: (1) six members of the house of representatives appointed by the speaker of the house of representatives; (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 cochaired 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 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) 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) of this section 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.
ARTICLE 9. SECURITY OFFICERS
SECTION 9.01. (a) Section 51.214, Education Code, is amended to read as follows: Sec. 51.214. SECURITY OFFICERS FOR MEDICAL CORPORATIONS IN CERTAIN MUNICIPALITIES. (a) In any municipality with a population of 1.18 million or more, the governing board of a private, nonprofit medical corporation 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 [complex], may employ and commission security personnel to enforce the law of this state within the jurisdiction designated by Subsection (c) [at the medical complex and its branches]. (b) An officer commissioned under this section may make arrests and has all the powers, privileges, and immunities of a peace officer while [on the property under the control and jurisdiction of the medical corporation or while otherwise] performing the officer's [his] assigned duties within the jurisdiction designated by Subsection (c). An officer assigned to duty and commissioned shall take and file the oath required of peace officers and shall execute and file a good and sufficient bond in the sum of $1,000, payable to the governor, with two or more good and sufficient sureties, conditioned that the officer [he] will fairly, impartially, and faithfully perform the duties required of the officer [him] by law. The bond may be sued on from time to time in the name of the person injured until the whole amount is recovered. (c) 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-of-way over or through the property. (d) 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) 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) A medical corporation may not 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. The medical corporation shall 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) 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) This section takes effect September 1, 2003. (c) A person commissioned before the effective date of this section by a private nonprofit medical corporation under Section 51.214, Education Code, must obtain a peace officer license issued by the Commission on Law Enforcement Officer Standards and Education not later than September 1, 2004. 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. Except as otherwise provided by this Act, this Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.
______________________________ ______________________________ President of the Senate Speaker of the House
I hereby certify that S.B. No. 1652 passed the Senate on May 12, 2003, by the following vote: Yeas 31, Nays 0; May 30, 2003, Senate refused to concur in House amendments and requested appointment of Conference Committee; May 30, 2003, House granted request of the Senate; June 1, 2003, Senate adopted Conference Committee Report by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 1652 passed the House, with amendments, on May 28, 2003, by the following vote: Yeas 137, Nays 0, two present not voting; May 30, 2003, House granted request of the Senate for appointment of Conference Committee; June 1, 2003, House adopted Conference Committee Report by the following vote: Yeas 147, Nays 0, one present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor