By: Shapiro, West S.B. No. 1652
(In the Senate - Filed March 14, 2003; March 20, 2003, read
first time and referred to Subcommittee on Higher Education;
May 1, 2003, reported to Committee on Education; May 6, 2003,
reported adversely, with favorable Committee Substitute by the
following vote: Yeas 5, Nays 0; May 6, 2003, sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1652 By: Shapiro
A BILL TO BE ENTITLED
AN ACT
relating to institutions of higher education, including the
administration, operation, governance, and financing of those
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 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:
(1) made or authorized in person, by mail, by
telephone call, or through the Internet;
(2) made by electronic funds transfer; or
(3) made by 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.
[(c) Before accepting a payment by credit card, the
institution shall notify the student of any fee to be charged under
this section.]
SECTION 1.06. 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 1.07. 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 1.08. 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 1.09. 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 1.10. 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 1.11. 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 1.12. 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 1.13. 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. Section 659.018, Government Code, is amended
to read as follows:
Sec. 659.018. COMPENSATORY TIME: PLACE WHERE WORK
PERFORMED. (a) Except under circumstances specified in the
General Appropriations Act, an employee of a state agency as
defined by Section 658.001 may not, for hours worked during any
calendar week, accumulate compensatory time off under Section
659.015(f) or 659.016 to the extent that the hours are attributable
to work performed at a location other than the employee's regular or
temporarily assigned place of employment.
(b) For purposes of Subsection (a), the [The] employee's
personal residence may not be considered the employee's regular or
temporarily assigned place of employment unless the employee is
employed by an institution of higher education as defined by
Section 61.003, Education Code, and is participating in a
telecommuting program approved by the employee's supervisor.
SECTION 2.08. 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 2.09. 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 2.10. Section 659.043, Government Code, is amended
by adding Subsection (c) to read as follows:
(c) A commissioned peace officer of a state institution of
higher education may receive longevity pay under this subchapter in
addition to hazardous duty pay under Subchapter L.
SECTION 2.11. Subsection (f), Section 659.046, Government
Code, is amended to read as follows:
(f) The amount of an employee's lifetime service credit does
not include the period served in a hazardous duty position if the
employee is:
(1) entitled to receive hazardous duty pay under
Section 659.302, unless the employee is a commissioned peace
officer of a state institution of higher education; or
(2) receiving the maximum amount of hazardous duty pay
that the Texas Youth Commission may pay to the employee under
Section 659.303.
SECTION 2.12. 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 2.13. 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 2.14. 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 2.15. 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 2.16. Subsection (d), Section 1601.101, Insurance
Code, as added by this article, takes effect September 1, 2003.
SECTION 2.17. The change in law made by this article to
Section 659.046, Government Code, applies only to a determination
of the amount of an employee's lifetime service credit that is made
on or after the effective date of this Act. A determination of the
amount of an employee's lifetime service credit made before the
effective date of this Act is governed by the law in effect on the
date the determination is made, and the former law is continued in
effect for that purpose.
ARTICLE 3. INFORMATION TECHNOLOGY
SECTION 3.01. Subdivision (12), Section 2054.003,
Government Code, is amended to read as follows:
(12) "State agency" means a department, commission,
board, office, council, authority, or other agency in the executive
or judicial branch of state government that is created by the
constitution or a statute of this state, but does not
include [including] a university system or institution of higher
education as those terms are defined by Section 61.003, Education
Code.
SECTION 3.02. Section 2054.077, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) In this section, "state agency" includes a university
system or institution of higher education as those terms are
defined by Section 61.003, Education Code.
SECTION 3.03. Section 2054.2011, Government Code, is
amended by adding Subdivision (3) to read as follows:
(3) "State agency" includes a university system or
institution of higher education as those terms are defined by
Section 61.003, Education Code.
ARTICLE 4. REGULATORY AND ADMINISTRATIVE MATTERS
SECTION 4.01. Section 2166.302, Government Code, is amended
to read as follows:
Sec. 2166.302. ADOPTION OF CONDITIONS. (a) The commission
shall adopt uniform general conditions to be incorporated into all
building construction contracts made by the state, including a
contract for a project excluded from this chapter by Section
2166.003 other than a project constructed by and for an institution
of higher education, but not including a contract for a project
excluded from this chapter by Section 2166.004.
(b) In this section, "institution of higher education" has
the meaning assigned by Section 61.003, Education Code, but does
not include a public junior college.
SECTION 4.02. 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 4.03. 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 4.04. 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 4.05. Subdivision (1), Section 2007.002,
Government Code, is amended to read as follows:
(1) "Governmental entity" means:
(A) a board, commission, council, department, or
other agency in the executive branch of state government that is
created by constitution or statute, other than [including] an
institution of higher education as defined by Section 61.003,
Education Code; or
(B) a political subdivision of this state.
SECTION 4.06. 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 4.07. 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 4.08. 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 4.09. 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 4.10. 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 4.11. 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. Subsection (a), Section 403.021, Government
Code, is amended to read as follows:
(a) In this section, "state agency" has the meaning assigned
by Section 403.013, except that the term does not include a
university system or an institution of higher education as those
terms are defined by Section 61.003, Education Code.
SECTION 5.03. Subchapter B, Chapter 572, Government Code,
is amended by adding Section 572.0211 to read as follows:
Sec. 572.0211. EXEMPTION FOR CERTAIN APPOINTED STATE
OFFICERS NOT REAPPOINTED. (a) Except as provided by Subsection
(b), a state officer who is a member of the governing board of an
institution of higher education is exempt from the filing
requirement of Section 572.021 in the year in which the member's
term expires if:
(1) the member's term expires on or before April 1 of
that year; and
(2) on or before April 30 of that year another
individual has been nominated or appointed to fill the succeeding
term in the member's position on the governing board.
(b) If notwithstanding the expiration of the term of office
the individual is serving as a member of the same governing board on
July 1 of that year, whether the individual continues in office
because a successor has not qualified for the next term of office or
because the individual has been reappointed to the same governing
board, the individual shall file a financial statement as required
by Section 572.021 for the preceding calendar year not later than
August 1.
SECTION 5.04. 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 5.05. 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 5.06. 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 5.07. Section 2254.006, Government Code, is amended
to read as follows:
Sec. 2254.006. CONTRACT NOTIFICATION. A state agency,
other than [including] an institution of higher education as
defined by Section 61.003, Education Code, shall provide written
notice to the Legislative Budget Board of a contract for
professional services, other than a contract for physician or
optometric services, if the amount of the contract, including an
amendment, modification, renewal, or extension of the contract,
exceeds $14,000. The notice must be on a form prescribed by the
Legislative Budget Board and filed not later than the 10th day after
the date the agency enters into the contract.
SECTION 5.08. Subsection (f), Section 2166.101, Government
Code, is repealed.
ARTICLE 6. EFFECTIVE DATE
SECTION 6.01. 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.
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