83R5289 KEL-D

By: Eiland H.B. No. 2713

A BILL TO BE ENTITLED

AN ACT

relating to making auxiliary and institutional funds of a state institution of higher education subject to legislative appropriation.

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

SECTION 1. The heading to Section 51.002, Education Code, is amended to read as follows:

Sec. 51.002. TREATMENT OF INSTITUTIONAL FUNDS [SUBJECT TO CONTROL].

SECTION 2. Section 51.002, Education Code, is amended by amending Subsection (a) and adding Subsections (a-1) and (a-2) to read as follows:

(a) The [governing board of each institution listed in Section 51.001 of this code may retain control of the] following sums of money collected at an [the] institution of higher education are institutional funds for purposes of this subchapter [, subject to Section 51.008 of this code]:

(1) student fees of all kinds;

(2) charges for use of rooms and dormitories;

(3) receipts from meals, cafes, and cafeterias;

(4) fees on deposit refundable to students under certain conditions;

(5) receipts from school athletic activities;

(6) income from student publications and other student activities;

(7) receipts from the sale of publication products and miscellaneous supplies and equipment;

(8) [students' voluntary deposits of money for safekeeping;

[(9)] all other fees and local or institutional funds arising out of and by virtue of the educational activities, research, or demonstrations carried on by the institution; and

(9) [(10)] donations and gifts to the institution.

(a-1) Institutional funds of an institution of higher education other than a public junior college are subject to Section 51.008. Sections 51.003, 51.004, and 51.005 do not apply to those funds.

(a-2) The governing board of a junior college district may retain control of institutional funds collected at the public junior college.

SECTION 3. Section 51.008(b), Education Code, is amended to read as follows:

(b) The governing board of every state institution of higher education shall deposit in the state treasury all cash receipts accruing to any college or university under its control that may be derived from all sources, including institutional funds and other receipts from [except] auxiliary enterprises, noninstructional services, agency, designated, and restricted funds, endowment and other gift funds, student loan funds, and funds retained under Chapter 145 [of this code], but not including funds appropriated or distributed to the institution under Section 17 or 18, Article VII, Texas Constitution [and Constitutional College Building Amendment funds]. The comptroller is directed to credit such receipts deposited by each such institution to a separate fund account for the institution depositing the receipts, but [he] shall not be required to keep separate accounts of types of funds deposited by each institution. For the purpose of facilitating the transferring of such institutional receipts to the state treasury, each institution shall open in a local depository bank a clearing account to which it shall deposit daily all such receipts, and shall, not less often than every seven days, make remittances therefrom to the comptroller of all except $500 of the total balance in said clearing account, such remittances to be in the form of checks drawn on the clearing account by the duly authorized officers of the institution, and no disbursements other than remittances to the state treasury shall be made from such clearing account. All money so deposited in the state treasury shall be paid out on warrants drawn by the comptroller as provided by law.

SECTION 4. The change in law made by this Act applies to revenues of an institution of higher education collected or received on or after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2013.