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79R618 JRJ-D

By:  Brown of Brazos                                              H.B. No. 154



A BILL TO BE ENTITLED

AN ACT

relating to requiring institutions of higher education to report 
potential savings through contracting with local governments.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter Z, Chapter 51, Education Code, is 
amended by adding Section 51.953 to read as follows:
	Sec. 51.953.  REPORT OF POTENTIAL SAVINGS.  (a)  Not later 
than June 1 of each even-numbered calendar year, the governing 
board of each institution of higher education shall submit a report 
to the Legislative Budget Board that:
		(1)  identifies support services and functions, 
including services or functions related to physical plant operation 
and maintenance, that the institution performs using its own staff 
and resources and that could be performed by the municipality, 
county, or another local government in which the institution is 
located;
		(2)  compares the costs to the institution of 
performing the services itself to the costs the institution would 
incur by contracting for the services with a municipality, county, 
or other local government in which the institution is located that 
performs similar services or functions; and
		(3)  identifies those local governments described by 
Subdivision (2) that are willing to consider contracting to provide 
those services or functions for the institution.
	(b)  A municipality, county, or other local government 
shall, at the request of an institution of higher education, assist 
in the development of a report under this section.
	(c)  In this section, "institution of higher education" has 
the meaning assigned by Section 61.003.
	(d)  The Texas Higher Education Coordinating Board shall 
adopt rules for the administration of this section, including rules 
specifying which support services and functions performed by the 
institution of higher education must be included in the report 
required by this section.
	SECTION 2.  The Texas Higher Education Coordinating Board 
shall adopt rules for the administration of Section 51.953, 
Education Code, as added by this Act, as soon as practicable after 
this Act takes effect.  For that purpose, the coordinating board may 
adopt the rules in the manner provided by law for emergency rules.
	SECTION 3.  This Act takes effect September 1, 2005.