By: Otto (Senate Sponsor - Averitt) H.B. No. 3291
         (In the Senate - Received from the House May 9, 2007;
  May 10, 2007, read first time and referred to Subcommittee on
  Higher Education; May 18, 2007, reported favorably from Committee
  on Education by the following vote:  Yeas 8, Nays 0; May 18, 2007,
  sent to printer.)
 
 
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.
 
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