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Amend HB 3851 on third reading (Senate committee printing) by
inserting the following sections and renumbering subsequent
sections accordingly.
SECTION ___ Subchapter G, Chapter 51, Education Code, is
amended by adding Sections 51.358 and 51.359 to read as follows:
Sec. 51.358. INTERIM ADMINISTRATION OF CERTAIN
INSTITUTIONS ON FINDING OF FINANCIAL OR ADMINISTRATIVE EXIGENCY.
(a) In this section, "university" means a general academic
teaching institution as defined by Section 61.003.
(b) This section applies only to a university or university
system.
(c) The governor may make an independent finding that a
condition of financial or administrative exigency exists within a
university or university system that:
(1) creates continuing and pervasive instability in
the operation and management of the university or system; or
(2) results in the university or system consistently
failing to properly perform all or part of the primary functions or
duties of the university or system.
(d) The governor shall notify each member of the legislative
audit committee of the governor's finding under Subsection (c).
The legislative audit committee shall meet to act on the governor's
finding, at the call of either chair of the committee, not later
than the 10th business day after the latest date a member of the
committee receives notice from the governor under this subsection.
(e) The governor may abolish the governing body of the
university or university system if the legislative audit committee
concurs with the governor's finding under Subsection (c).
(f) If the governing body is abolished under this section,
an interim governing board for the university or university system
is reconstituted composed of five members appointed by the governor
with the advice and consent of the senate. Each member appointed
under this subsection holds office for a term expiring on the second
anniversary of the date of the first appointment of a member of the
interim governing board. In consultation with the governor, the
interim governing board may appoint an interim president or
chancellor to the university or system with the duties determined
by the interim governing board to serve during the term of the
interim governing board.
(g) Following the expiration of the terms of the interim
governing board members under Subsection (f), the governing body of
the university or university system is reconstituted under the law
providing for the governance of the university or system. The
initial members of the reconstituted governing body shall be
appointed for terms that expire on the dates necessary to conform to
the permanent law establishing those terms.
(h) During the period in which an interim governing board is
in effect, the law establishing the governing body of the
university or university system and the terms of office of the
members of the governing body are suspended.
(i) The interim governing board, with the assistance of the
interim president or chancellor, if any, shall develop and
implement a comprehensive administration improvement plan for the
university or university system and submit the plan to the governor
and to each of the joint chairs of the legislative audit committee.
The plan must address:
(1) finance and accounting;
(2) human resources;
(3) management information systems;
(4) planning and communications;
(5) student financial aid;
(6) contract and grant management; and
(7) other elements determined appropriate by the
governor with the approval of the legislative audit committee.
(j) The administration improvement plan must:
(1) include timelines, benchmarks, and projected
outcomes for improvements in the areas described by Subsection (i);
(2) provide a procedure for the investigation and
reporting of any possible criminal activity to the appropriate
district or county attorney and, unless prohibited by law, to the
governor, the lieutenant governor, the speaker of the house of
representatives, and the attorney general, if the activity:
(A) is committed by a university or university
system employee; and
(B) contributes to the condition of financial or
administrative exigency; and
(3) be prepared in a format specified by the governor
with the approval of the legislative audit committee.
(k) The interim governing board may consult with
appropriate experts as the interim governing board considers
necessary in developing and implementing the administration
improvement plan.
(l) The interim governing board may contract with another
university system's administration office to provide financial and
accounting services, including consulting services, to assist the
university or university system under interim administration in:
(1) reviewing policies and procedures relating to:
(A) revenue and expenditure controls;
(B) fixed assets;
(C) treasury matters;
(D) payroll; and
(E) information technology;
(2) reviewing and approving grants and contracts;
(3) determining and recommending best business
practices;
(4) segregating duties affecting internal controls to
ensure that no one individual has control over multiple areas of
operations or financial transactions;
(5) establishing a monthly financial report that
includes receipts, bank statements, and monthly reconciliations;
(6) providing accurate and timely recording of assets
in the state property accounting system; and
(7) providing other management and financial
operations.
(m) The interim governing board shall prepare an annual
financial statement for the university or university system. An
audit of the financial statement must be prepared by the state
auditor or, if the authority to contract for audit services is
delegated by the state auditor in accordance with Section 321.020,
Government Code, by an independent private auditor. The audit
required by this subsection must include a review of a contract
entered into by the university or university system that:
(1) is active; or
(2) the university or university system entered into
during the two-year period immediately preceding the date the
interim administration took effect.
(n) The interim governing board shall report to the
governor, the legislative audit committee, and the legislative
oversight committee appointed under Subsection (r) on the progress
of the administration improvement plan and on the progress of the
outcomes for each area described by Subsection (i), including
specific information regarding that progress:
(1) not later than the 60th day after the date the
interim governing board is appointed;
(2) at least once each quarter; and
(3) at other times as directed by the governor with the
approval of the legislative audit committee.
(o) An interim governing board appointed for a university or
university system under Subsection (f) and an interim president or
chancellor appointed by that governing board shall consult with the
accreditation agencies by which the university or system is
accredited and take appropriate action to the extent necessary to
ensure that the university or system maintains accreditation during
the period in which the interim governing board is in effect.
(p) A person appointed to act as the interim president or
chancellor of a university or university system under this section
is entitled to receive a salary for performing those duties that is
equal to the salary of the chief administrative officer of the
university or system under interim administration. The university
or system under interim administration shall pay the salary of the
interim president or chancellor from money appropriated or
otherwise available to the university or system, except to the
extent that money to pay the salary is specifically appropriated or
made available through the budget execution process for that
purpose.
(q) A member of an interim governing board or an interim
president or chancellor is entitled to reimbursement for the
reasonable and necessary expenses incurred by the person in the
course of performing the person's duties under this section.
Reimbursement shall be paid from funds appropriated or otherwise
available to the university or university system under interim
administration, except to the extent that money to pay those
expenses is specifically appropriated or made available through the
budget execution process for that purpose.
(r) As soon as practicable after appointing an interim
governing board under Subsection (f), the lieutenant governor and
the speaker of the house shall appoint a legislative oversight
committee composed of three members of the senate and three members
of the house of representatives to review the activities of the
interim governing board and the reconstituted governing body that
succeeds the interim governing board. A legislative oversight
committee appointed under this subsection expires on the third
anniversary of the date of the first appointment of a member of the
interim governing board.
(s) After the termination of an interim administration
under this section, the university or university system placed
under the interim administration must continue to report to the
governor and the legislative audit committee at least once each
quarter. The report must include the information required by
Subsection (i).
Sec. 51.359. DENIAL OF EMPLOYMENT FOR CONTRIBUTION TO
FINANCIAL OR ADMINISTRATIVE EXIGENCY. The interim governing board
of a university or university system subject to an interim
administration under Section 51.358 may make a determination that
an individual's act or omission was a material cause of the
condition of financial or administrative exigency at the university
or university system that resulted in the interim administration.
If the interim governing board makes a determination under this
section, the individual shall be denied employment in an
administrative capacity with the university or university system
and any employment contract provision concerning administrative
employment of that individual is void by the university or system.
SECTION ___. Chapter 321, Government Code, is amended by
adding Section 321.024 to read as follows:
Sec. 321.024. MEETING BY TELECOMMUNICATION DEVICE. (a) As
an exception to Chapter 551 and other law, if a meeting is located
in Austin and the joint chairs of the committee are physically
present at the meeting, then any number of the other members of the
committee may attend the meeting by use of telephone conference
call, video conference call, or other similar telecommunication
device.
(b) This section applies for purposes of constituting a
quorum, for purposes of voting, and for any other purpose allowing a
member of the committee to otherwise fully participate in any
meeting of the committee, and applies only to a meeting held
pursuant to Chapter 2104 or 2116 of this code, or Section 51.358,
Education Code.
(c) A meeting held by use of telephone conference call,
video conference call, or other similar telecommunication device:
(1) is subject to the notice requirements applicable
to other meetings of the committee;
(2) must specify in the notice of the meeting the
location in Austin of the meeting at which the joint chairs will be
physically present;
(3) must be open to the public and shall be audible to
the public at the location in Austin specified in the notice of the
meeting as the location of the meeting at which the joint chairs
will be physically present; and
(4) must provide two-way audio communication between
all members of the committee attending the meeting during the
entire meeting, and if the two-way audio communication link with
any member attending the meeting is disrupted at any time, the
meeting may not continue until the two-way audio communication link
is reestablished.