By: Branch H.B. No. 3517

A BILL TO BE ENTITLED

AN ACT

relating to the administration and business affairs of public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. FINANCIAL MANAGEMENT

SECTION 1.01. Subsection (b), Section 51.003, Education Code, is amended to read as follows:

(b) The funds shall either be deposited in the depository bank or banks or invested as authorized by Chapter 2256, Government Code (Public Funds Investment Act). Funds that are to be deposited in the depository bank or banks must be deposited within seven days from the date of receipt by the institution [collection].

SECTION 1.02. Subchapter A, Chapter 51, Education Code, is amended by adding Section 51.010 to read as follows:

Sec. 51.010. PAYMENTS BY ELECTRONIC FUNDS TRANSFER OR ELECTRONIC PAY CARD. An institution of higher education may make any payment, including salary or wages, through electronic funds transfer or by electronic paycard.

SECTION 1.03. Subchapter A, Chapter 51, Education Code, is amended by adding Section 51.011 to read as follows:

Sec. 51.011. COLLECTION OF DELINQUENT OBLIGATIONS. If under the rules adopted by the attorney general under Chapter 2107, Government Code, an institution of higher education is not required to refer a delinquent obligation for collection to the attorney general, the institution is not required to expend resources for further collection efforts if, considering the amount, security, likelihood of collection, expense, and available resources, the institution determines that further collection should not be actively pursued.

SECTION 1.04. Subchapter A, Chapter 51, Education Code, is amended by adding Section 51.012 to read as follows:

Sec. 51.012. DISPOSITION OF SMALL CREDIT BALANCES. (a) This section applies to a credit balance of less than $25 that is presumed abandoned under Chapter 72, Property Code, and is held by an institution of higher education, as defined by Section 61.003.

(b) An institution of higher education may maintain an unclaimed money fund and transfer to that fund a credit balance of less than $25 that is presumed abandoned. Deposit in the unclaimed money fund does not affect the ownership of the amount deposited, and the institution shall adopt procedures for owners to make and receive payment of claims. The institution shall maintain a database that permits the public to search for ownership of unclaimed funds.

(c) In consultation with institutions, the comptroller of public accounts may by rule establish minimum requirements for notice to owners of money credited to an unclaimed money fund and charges for such a notice. The rules may not provide stricter requirements than the comptroller of public accounts applies for amounts of less than $25 in the custody of the comptroller under Chapter 74, Property Code.

(d) The institution shall hold and account for the fund as educational and general funds of the institution, and shall use the unclaimed money fund to pay the claims of persons establishing ownership of amounts transferred to the fund. If the fund balance is insufficient to pay a valid claim, the institution shall pay the claim from the educational and general funds of the institution.

(e) Each fiscal year after deducting funds sufficient to pay anticipated expenses and claims of the unclaimed money fund, the institution shall use the balance as other educational and general funds of the institution.

(d) If an institution maintains an unclaimed money fund under this section, Chapter 74, Property Code, does not apply to a credit balance to which this section applies.

SECTION 1.05. Section 74.001, Property Code, is amended by adding Subsection (c) to read as follows:

(c) This chapter does not apply to small credit balances held by an institution of higher education in an unclaimed money fund under Section 51.011, Education Code.

SECTION 1.06. Section 65.42, Education Code, is amended to read as follows:

Sec. 65.42. DELINQUENT ACCOUNTS; VENUE. A suit by The University of Texas System on its own behalf or on behalf of a component institution of The University of Texas System to recover a delinquent loan, account, or debt owed to The University of Texas System or a component institution of The University of Texas System shall [may] be brought in Travis County.

SECTION 1.07. Section 1231.001, Government Code, is amended by amending Subdivision (2) and adding Subdivision (3) to read as follows:

(2) "State security" means:

(A) an obligation, including a bond, issued by:

(i) a state agency;

(ii) an entity that is expressly created by statute and has statewide jurisdiction; or

(iii) an entity issuing the obligation on behalf of this state or on behalf of an entity described by Subparagraph (i) or (ii);

(B) an installment sale or lease-purchase obligation that is issued by or on behalf of an entity described by Paragraph (A) and that has:

(i) a stated term of more than five years; or

(ii) an initial principal amount of more than $250,000; or

(C) an obligation, including a bond, that is issued under Chapter 53, Education Code, at the request of or for the benefit of an institution of higher education [as defined by Section 61.003, Education Code,] other than a public junior college.

(3) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code.

SECTION 1.08. Section 1231.041, Government Code, is amended to read as follows:

Sec. 1231.041. APPROVAL OF STATE SECURITY. (a) Except as otherwise provided by this section, an [An] entity, including a state agency, may not issue a state security unless:

(1) the board approves the issuance; or

(2) the security is exempted under law or under rule of the board adopted under Section 1231.022(2).

(b) A state security issued by an institution of higher education, or issued at the request of or for the benefit of an institution of higher education, is not subject to board approval unless the general revenue of the state is pledged to the payment of the security.

SECTION 1.09. Section 51.012, Education Code, as added by Section 1.04 of this Act, applies to credit balances of less than $25 held on or after the effective date of this Act.

ARTICLE 2. GOODS AND SERVICES

SECTION 2.01. Section 51.9335, Education Code, is amended by amending Subsections (d), (e), and (f), and adding Subsection (g) and (h), to read as follows:

(d) To the extent of any conflict, this section prevails over any other law, including Chapters 2155, 2156, 2157, 2158, 2167, and 2170, Government Code, except a law or rule relating to contracting with historically underutilized businesses [or relating to the procurement of goods and services from persons with disabilities]. An institution of higher education may, but is not required to, acquire goods or services as provided by Chapters 2155, 2156, 2157, 2158, 2167, and 2170, Government Code.

(e) In this section, "institution of higher education" has the meaning assigned by Section 61.003 and includes a school of veterinary medicine and a health care facility operated by a medical and dental unit, except that the term does not include [The University of Texas M.D. Anderson Cancer Center or] a public junior college.

(f) Except as otherwise provided by this section, Subtitle D, Title 10, Government Code, and Chapter 2254, Government Code, [This section] does not apply to purchase of goods and services under this section [professional services as defined by Section 2254.002, Government Code].

(g) The institution may adopt rules and procedures for the acquisition of goods or services.

(h) In any contract for the acquisition of goods and services, a provision required by applicable law is considered to be a part of the executed contract without regard to (1) whether the provision appears on the face of the contract, or (2) any provision of the contract to the contrary.

SECTION 2.02. Subsection (n), Section 2155.078, Government Code, is amended to read as follows:

(n) This section does not apply to an institution [a medical and dental unit] to which Section 51.9335, Education Code, applies or to an institution to which Section 73.115, Education Code, applies.

SECTION 2.03. Subsection (f), Section 74.008, Education Code, is repealed.

SECTION 2.04. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.9336 to read as follows:

Sec. 51.9336. ELECTRONIC SIGNATURES. An institution of higher education or university system shall determine whether, and the extent to which, the institution will send and accept electronic signatures to and from other persons and otherwise create, generate, communicate, store, process, use, and rely upon electronic signatures. The institution or system may adopt rules and procedures governing the use of electronic signatures.

(b) To the extent of any conflict, this section prevails over Chapter 322, Business and Commerce Code, and rules and guidelines adopted under that chapter.

SECTION 2.05. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.9337 to read as follows:

Sec. 51.9337. ACCESS TO ELECTRONIC AND INFORMATION RESOURCES BY INDIVIDUALS WITH DISABILITIES. If an institution of higher education or university system procures from a vendor electronic and information resources subject to Subchapter M, Chapter 2054, Government Code, or any services for those resources, the vendor from which the resources or services are procured is primarily responsible for compliance by those resources or services with the accessibility requirements of that subchapter and the rules adopted under that subchapter, notwithstanding a requirement to the contrary of the procurement contract or of the rules adopted under that subchapter.

SECTION 2.06. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.9338 to read as follows:

Sec. 51.9338. INTERAGENCY CONTRACTS FOR INFORMATION RESOURCE TECHNOLOGIES. Section 2054.119, Government Code, does not apply to an interagency contract for information resources technologies between two or more institutions of higher education or between an institution of higher education or university system and one more state agencies, institutions of higher education, or university systems.

SECTION 2.07. Subchapter C, Chapter 791, Government Code, is amended by adding Section 791.035 to read as follows:

Sec. 791.035. CONTRACTS WITH INSTITUTIONS OF HIGHER EDUCATION. (a) A local government and an institution of higher education or university system may contract to perform any governmental functions and services. If the terms of the contract provide for payment based on cost recovery, any law otherwise requiring competitive procurement does not apply to the functions and services covered by the contract.

(b) In this section, "institution of higher education" and "university system" have the meanings assigned by Section 61.003, Education Code.

SECTION 2.08. Subsection (a), Section 153.006, Education Code, is amended to read as follows:

(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;

(6) without the necessity of approval by the attorney general, 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.

SECTION 2.09. Section 402.0212, Government Code, is amended by adding Subsection (e) to read as follows:

(e) The attorney general may review and approve a standard form contract of a university system or an institution of higher education for legal services to be provided to the system or institution. If the attorney general approves a standard form, the attorney general is not required under this section to approve individual contracts that are in substantial compliance with the approved form or to approve invoices under those contracts. The attorney general may conduct an annual review of the standard form and the signed contracts and for that purpose may collect a fee, established in consultation with the university system or institution, reasonably estimated to cover the expenses of that review.

SECTION 2.10. Subchapter C, Chapter 2254, Government Code, is amended by adding Sec. 2254.110 to read as follows:

Sec. 2254.110. COLLECTION ACTIONS BY AN INSTITUTION OF HIGHER EDUCATION. A person awarded a contract under Chapter 2107 by an institution of higher education for a routine collection matter may file suit or otherwise pursue judicial action to collect the obligation owed in a court of this state or another state on behalf of the institution.

SECTION 2.11. Section 2254.102, Government Code, is amended by adding Subsection (c) to read as follows:

(c) This subchapter does not apply to a contract:

(1) with a state agency to collect an obligation under Section 2107.003(b), (c), or (c-1), except as provided by Section 2254.110; or

(2) for legal services entered into by an institution of higher education under Section 153.006, Education Code.

SECTION 2.12. Section 2107.003(e), Government Code, is amended to read as follows:

(e) Except as provided by Section 2254.110, [A] person awarded a contract under Subsection (b), (c), or (c-1) may not file suit or otherwise pursue judicial action to collect the obligation owed in a court of this state or another state on behalf of the contracting state agency.

SECTION 2.13. Section 51.966, Education Code, is amended by adding Subsection (d) to read as follows:

(d) Section 612.002, Government Code, does not apply to an institution of higher education or university system purchasing insurance under this section.

SECTION 2.14. Section 2054.008, Government Code, is amended by adding Subsection (c) to read as follows:

(c) A university system or institution of higher education shall provide written notice to the Legislative Budget Board under Subsection (b) only if the cost of the major information system exceeds $1 million.

ARTICLE 3. HUMAN RESOURCES

SECTION 3.01. Section 1601.004(a), Insurance Code, is amended to read as follows:

(a) In this chapter, "dependent," with respect to an individual eligible to participate in the uniform program under Section 1601.101 or 1601.102, means the individual's:

(1) spouse;

(2) unmarried child younger than 25 years of age; and

(3) child of any age who the system determines lives with or has the child's care provided by the individual on a regular basis if the child is mentally retarded or physically incapacitated to the extent that the child is dependent on the individual for care or support, as determined by the system, and:

(A) the child is at least 25 years of age, the child's coverage under this chapter has not lapsed, and the child was enrolled as a participant in the health benefits coverage under the uniform program on the date of the child's 25th birthday; or

(B) as to a child of an individual eligible to participate as an employee under Section 1601.101, at the time of the individual's initial enrollment in health benefits coverage under the uniform program the child is at least 25 years of age and is enrolled in comparable coverage, as determined by the system, under the individual's previous health benefits coverage.

SECTION 3.02. Subchapter C, Chapter 1601, Insurance Code, is amended by adding Section 1601.111 to read as follows:

Sec. 1601.111. PROGRAMS PROMOTING DISEASE PREVENTION, WELLNESS, AND HEALTH. A system may establish premium discounts, surcharges, rebates, or a revision in otherwise applicable copayments, coinsurance, or deductibles, or any combination of these incentives, for an individual who participates in system- approved programs promoting disease prevention, wellness, and health.

SECTION 3.03. Section 1601.201, Insurance Code, is amended by adding Subsection (e) to read as follows:

(e) Subsection (c) does not prohibit a system from contributing, from money not appropriated from the general revenue fund, amounts in excess of the amount specified by that subsection for an individual who is a tenured faculty member with whom the System has entered into a phased retirement agreement under which the person will work less than 40 hours a week for a specified period of time at the end of which the person will retire.

SECTION 3.04. Section 658.007, Government Code, is amended by adding Subsection (c) to read as follows:

(c) Notwithstanding other law, including Sections 658.003 and 658.004, or terms of contract, an institution of higher education may establish a mandatory employee furlough or work reduction program as necessary to increase efficiency, reduce the cost of operations, or otherwise address the financial condition of the institution. While a furlough or work reduction program is in effect, the terms and conditions of the program apply notwithstanding other law.

SECTION 3.05. Subchapter K, Chapter 659, Government Code, is amended by adding Section 659.264 to read as follows:

Sec. 659.264. CERTAIN SALARY REDUCTIONS AT INSTITUTIONS OF HIGHER EDUCATION. Notwithstanding other law or terms of contract, subject solely to procedures and rules adopted by the governing board, an institution of higher education may establish a program of temporary or permanent salary reductions as necessary to reduce cost of operations or otherwise address the financial condition of the institution.

SECTION 3.06. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.9611 to read as follows:

Sec. 51.9611. PAYROLL DEDUCTIONS FOR EMPLOYEES OF UNIVERSITY SYSTEM OR INSTITUTION OF HIGHER EDUCATION. (a) In this section, "institution of higher education" and "university system" have the meanings assigned by Section 61.003.

(b) The governing board of a university system, or of an institution of higher education not a component of a system, may authorize employees to elect a payroll deduction for any purpose that the governing board determines serves a public purpose and benefits employees. The board may adopt policies and procedures governing a payroll deductions under this section. A payroll deduction under this section is in addition to payroll deductions authorized by other law.

(c) A payroll deduction under this section must be at the written request of the employee, and the request must state the amount to be deducted and the entity to which the deducted amount is to be transferred. A payroll deduction is in effect until revoked in writing by the employee, but the policies and procedures of the institution or system may provide for enrollment periods.

(d) An institution may collect an administrative fee to cover the costs of making a deduction.

ARTICLE 4. REAL ESTATE AND CONSTRUCTION

SECTION 4.01. Subsections (b), (d), and (e), Section 61.0572, Education Code, are amended to read as follows:

(b) The board shall:

(1) determine formulas for space utilization in all educational and general buildings and facilities at institutions of higher education;

(2) devise and promulgate methods to assure maximum daily and year-round use of educational and general buildings and facilities, including but not limited to maximum scheduling of day and night classes and maximum summer school enrollment;

(3) consider plans for selective standards of admission when institutions of higher education approach capacity enrollment;

(4) require, and assist the public technical institutes, public senior colleges and universities, medical and dental units, and other agencies of higher education in developing long-range campus master plans for campus development;

[(5) endorse, or delay until the next succeeding session of the legislature has the opportunity to approve or disapprove, the proposed purchase of any real property by an institution of higher education, except a public junior college;]

[(6) develop and publish standards, rules, and regulations to guide the institutions and agencies of higher education in making application for the approval of new construction and major repair and rehabilitation of all buildings and facilities regardless of proposed use; and

(6) [(7)] ascertain that the board's standards and specifications for new construction, repair, and rehabilitation of all buildings and facilities are in accordance with Chapter 469, Government Code [Article 9102, Revised Statutes].

(d) The [(1) The board, for purposes of state funding, may review and approve as an addition to an institution's educational and general buildings and facilities inventory any improved real property acquired by gifts or lease-purchase only if:]

[(A) the institution requests to place the improved real property on its educational and general buildings and facilities inventory; and]

[(B) the value of the improved real property is more than $300,000 at the time the institution requests the property to be added to the educational and general buildings and facilities inventory.]

[(2) This subsection does not apply to gifts, grants, or lease-purchase arrangements intended for clinical or research facilities.]

[(e) Approval of the board is not required to acquire real property that is financed by bonds issued under Section 55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174, 55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or 55.17721, except that the] board may [shall] review purchases of improved [all] real property added to an institution's educational and general buildings and facilities inventory [to be financed by bonds issued under those sections] to determine whether the property meets the standards adopted by the board for cost, efficiency, and space use, but the purchase of the improved real property is not contingent on board review. If the property does not meet those standards, the board shall notify the governor, the lieutenant governor, the speaker of the house of representatives, and the Legislative Budget Board.

SECTION 4.02. Section 61.058, Education Code, is amended to read as follows:

Sec. 61.058. NEW CONSTRUCTION AND REPAIR AND REHABILITATION PROJECTS. (a) This section does not apply to [Except as provided by Subsection (b) of this section, the board shall approve or disapprove all new construction and repair and rehabilitation of all buildings and facilities at institutions of higher education financed from any source provided that:

[(A) the board's consideration and determination shall be limited to the purpose for which the new or remodeled buildings are to be used to assure conformity with approved space utilization standards and the institution's approved programs and role and mission if the cost of the project is not more than $4,000,000, but the board may consider cost factors and the financial implications of the project to the state if the total cost is in excess of $4,000,000;

[(B) the requirement of approval for new construction applies only to projects the total cost of which is in excess of $4,000,000;

[(C) the requirement of approval for major repair and rehabilitation of buildings and facilities applies only to a project the total cost of which is more than $4,000,000;

[(D) the requirement of approval or disapproval by the board does not apply to any new construction or major repair and rehabilitation project that is specifically approved by the legislature;

[(E) the requirement of approval by the board does not apply to a junior college's construction, repair, or rehabilitation financed entirely with funds from a source other than the state, including funds from ad valorem tax receipts of the college, gifts, grants, and donations to the college, and student fees; and

[(F) the requirement of approval by the board does not apply to construction, repair, or rehabilitation of privately owned buildings and facilities located on land leased from an institution of higher education if the construction, repair, or rehabilitation is financed entirely from funds not under the control of the institution, and provided further that:]

[(i) the] buildings and facilities that are to be used exclusively for auxiliary enterprises[;] and

[(ii) the buildings and facilities] will not require appropriations from the legislature for operation, maintenance, or repair [unless approval by the board has been obtained].

(b) The This section does not apply to construction, repair, or rehabilitation financed by bonds issued under Section 55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174, 55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or 55.17721, except that the] board may [shall] review all construction, repair, or rehabilitation of buildings and facilities at institutions of higher education [to be financed by bonds issued under those sections] to determine whether the construction, rehabilitation, or repair meets the standards adopted by board rule for cost, efficiency, and space use, but the construction, rehabilitation, or repair is not contingent on board review. If the construction, rehabilitation, or repair does not meet those standards, the board shall notify the governor, the lieutenant governor, the speaker of the house of representatives, and the Legislative Budget Board.

[(c) As necessary to ensure that the board is required to approve only substantial construction, repair, or rehabilitation projects at institutions of higher education, for all projects described by Subsection (a)(B) or (a)(C) the board by rule may increase the total cost threshold required for board approval under this section.]

SECTION 4.03. Subsection (a), Section 51.951, Education Code, is amended to read as follows:

(a) Information related to the development, location, purchase price, or sale price of real property developed, purchased, or sold by or for an institution of higher education, as defined by Section 61.003, including a contract provision related to the development, purchase, or sale of the property, is confidential and exempt from disclosure under Chapter 552, Government Code, until all deeds for the property that are applicable to the transaction or series of related transactions are executed and until all substantive performance or executory requirements of applicable contracts have been satisfied [a deed for the property is executed]. Information that is confidential and exempted from disclosure under this subsection includes an appraisal, completed report, evaluation, investigation conducted for the purpose of locating or determining the purchase or sale price of the property, or any report prepared in anticipation of purchasing or selling real property.

SECTION 4.04. Section 33.06, Tax Code, is amended by adding Subsection (g) to read as follows:

(g) If the ownership interest of an individual entitled to a deferral under this section is a life estate, a lien for the deferred tax attaches to the estate of the life tenant, and not to the remainder interest, if the owner of the remainder is an institution of higher education, as defined by Section 61.003, Education Code, that has not consented to the deferral.

SECTION 4.05. Subsection (c), Section 2166.302, Government Code, is amended to read as follows:

(c) Subsection (a) does not apply to a project constructed by and for the Texas Department of Transportation or an institution of higher education or university system.

SECTION 4.06. Subsection (c-1), Section 2166.403, Government Code, is amended to read as follows:

(c-1) For a project constructed by and for a state institution of higher education, the [governing body of the] institution shall, during the planning phase of the proposed construction for the project, verify [in an open meeting] the economic feasibility of incorporating into the building's design and proposed energy system alternative energy devices for space heating and cooling functions, water heating functions, electrical load functions, and interior lighting functions. The [governing body of the] institution shall determine the economic feasibility of each function listed in this subsection by comparing the estimated cost of providing energy for the function, based on the use of conventional design practices and energy systems, with the estimated cost of providing energy for the function, based on the use of alternative energy devices, during the economic life of the building.

SECTION 4.07. Subsection (b), Section 2167.001, Government Code, is amended to read as follows:

(b) This chapter does not apply to:

(1) radio antenna space;

(2) residential space for a Texas Department of Mental Health and Mental Retardation program;

(3) residential space for a Texas Youth Commission program;

(4) space to be used for less than one month for meetings, conferences, conventions, seminars, displays, examinations, auctions, or similar purposes;

(5) district office space for members of the legislature;

(6) space used by the Texas Workforce Commission;

(7) residential property acquired by the Texas Department of Housing and Community Affairs or the Texas State Affordable Housing Corporation that is offered for sale or rental to individuals and families of low or very low income or families of moderate income;

(8) except as provided by Section 2167.007, [classroom and instructional] space for a university system or an institution of higher education; or

(9) space leased by the Texas Veterans Commission to administer the veterans employment services program.

SECTION 4.08. Section 1434.054, Government Code, is repealed.

ARTICLE 5. BOARD APPOINTMENTS

SECTION 5.01. Sections 2.03(a) and (c), Chapter 670, Acts of the 72nd Legislature, 1991, (Art. 4477-7j, Vernon's Texas Civil Statutes) are amended to read as follows:

(a) On or after the effective date of this Act, the Commissioners Court of Gaines County shall appoint three persons, the governing body of the city of Seminole shall appoint two persons, and the governing body of the city of Seagraves shall appoint two persons to serve as initial directors of the district. The four persons appointed by the governing bodies of the cities of Seminole and Seagraves shall represent the municipalities within the county, and the three persons appointed by the Commissioners Court of Gaines county shall represent the unincorporated areas of the county. [In addition the board of regents of The University of Texas System shall appoint one person to serve as an ex officio, nonvoting director of the district.]

(c) The Commissioners Court of Gaines County an the governing bodies of the cities of Seminole and Seagraves shall each appoint one initial director so serve a term expiring on May 1 of the first year after the year in which the original appointment is made. In addition, the Commissioners Court of Gaines County shall appoint two initial directors and the governing bodies of the cities of Seminole and Seagraves shall each appoint one initial director to serve terms expiring May 1 of the second year after the year in which the original appointment is made. [The initial ex officio member serves a term expiring on May 1 of the second year after the year in which the original appointment is made.] Successor directors serve two-year terms.

SECTION 5.02. Sections 3.01(a), Chapter 670, Acts of the 72nd Legislature, 1991, (Art. 4477-7j, Vernon's Texas Civil Statutes) are amended to read as follows:

(a) The district is governed by a board of directors composed of seven voting members [and one ex officio nonvoting member] who are appointed as provided by this Act. However, the district shall change to a system of electing the voting directors if:

(1) the Commissioners Court of Gaines County and the governing bodies of the cities of Seminole and Seagraves each pass a resolution calling for the election of the directors; or

(2) the board receives a petition signed by at least 150 registered voters of Gaines County calling for the election of the directors.

SECTION 5.03. Sections 3.01(c), Chapter 670, Acts of the 72nd Legislature, 1991, (Art. 4477-7j, Vernon's Texas Civil Statutes) is repealed.

SECTION 5.04. Section 95.006(b), Health and Safety Code, is amended to read as follows:

(b) The advisory committee is composed of:

(1) the following representatives appointed by the executive director of the office:

(A) one representative of the office;

(B) one representative of the Texas Education Agency;

(C) one representative of the Texas Pediatric Society;

(D) one representative of the American Diabetes Association;

[(E) one representative who is a member of the board of regents of The University of Texas Pan American;]

(E) [(F)] one school nurse representative from an urban school located within the boundaries of a regional education service center;

(F) [(G)] one parent or guardian of a child who resides within the boundaries of a regional education service center; and

(G) [(H)] one person with knowledge and experience in health care in school settings; and

(2) the following representatives appointed by the chairman of the council:

(A) one representative of the council;

(B) one representative of the Texas Medical Association;

(C) one school district administrator representative from a school district located within the boundaries of a regional education service center;

(D) one school principal representative from a school district located within the boundaries of a regional education service center; and

(E) one school nurse representative from a rural school located within the boundaries of a regional education service center.

SECTION 5.05. Section 552.123, Government Code, is amended to read as follows:

Sec. 552.123. EXCEPTION: NAME OF APPLICANT FOR CHIEF EXECUTIVE OFFICER OF INSTITUTION OF HIGHER EDUCATION. The name of an applicant for the position of chief executive officer of an institution of higher education, and other information that would tend to identify the applicant, is excepted from the requirements of Section 552.021, except that the governing body of the institution must give public notice of the name or names of the finalists being considered for the position at least 21 days before the date of the meeting at which final action or vote is to be taken on the employment of the person.

ARTICLE 6. EFFECTIVE DATE

SECTION 6.01. This Act takes effect immediately if it receives the 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, 2011.