80R7726 KSD-D
 
  By: Otto H.B. No. 3291
 
 
 
 
A BILL TO BE ENTITLED
AN ACT
relating to a prohibition against the governing board of a public
institution of higher education entering into certain contracts
relating to permanent improvements at the institution.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Subchapter T, Chapter 51, Education Code, is
amended by adding Section 51.785 to read as follows:
       Sec. 51.785.  CERTAIN CONTRACTS PROHIBITED.  The board of an
institution may not enter into a contract with a person relating to
a permanent improvement project at the institution under which the
institution makes contractual payments to the person that are not
reflected on the institution's financial statement unless the
board:
             (1)  is specifically authorized to enter into the
contract by other law; or
             (2)  receives prior approval by the Texas Higher
Education Coordinating Board.
       SECTION 2.   Section 51.785, Education Code, as added by
this Act, applies only to a contract entered into on or after the
effective date of this Act.
       SECTION 3.  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, 2007.