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A BILL TO BE ENTITLED
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AN ACT
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relating to institutional funds held by public institutions of |
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higher education in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 51.002, Education Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1), (a-2), and |
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(a-3) to read as follows: |
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(a) Except as provided by Subsection (a-1) and subject to |
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Section 51.008, the [The] governing board of each institution |
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listed in Section 51.001 of this code may retain control of the |
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following sums of money collected at the institution[, subject to
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Section 51.008 of this code]: |
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(1) student fees of all kinds; |
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(2) charges for use of rooms and dormitories; |
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(3) receipts from meals, cafes, and cafeterias; |
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(4) fees on deposit refundable to students under |
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certain conditions; |
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(5) receipts from school athletic activities; |
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(6) income from student publications and other student |
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activities; |
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(7) receipts from the sale of publication products and |
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miscellaneous supplies and equipment; |
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(8) students' voluntary deposits of money for |
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safekeeping; |
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(9) all other fees and local or institutional funds |
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arising out of and by virtue of the educational activities, |
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research, or demonstrations carried on by the institution; and |
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(10) donations and gifts to the institution. |
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(a-1) The governing board of an institution that retains |
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control of money under Subsection (a) may not claim sovereign |
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immunity in any lawsuit for a claim arising under a contract paid |
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wholly or partly with that money, and the institution is liable for |
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damages under that claim, to the extent that money described by |
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Subsection (a) available to the institution is unencumbered by |
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preexisting legal obligations. |
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(a-2) Notwithstanding any other law, Subsection (a-1) does |
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not apply during a state fiscal biennium if, not later than December |
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31 of the state fiscal year preceding the biennium, the governing |
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board: |
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(1) certifies to the comptroller and the Legislative |
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Budget Board that the governing board will treat in the same manner |
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as the institution's educational and general funds all money under |
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Subsection (a) that will be collected by the institution during |
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that biennium; and |
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(2) enters into an agreement with the comptroller to |
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deposit that money in an account in the state treasury subject to |
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legislative appropriation. |
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(a-3) Notwithstanding Subsection (a-2), during the state |
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fiscal biennium beginning September 1, 2013, Subsection (a-1) does |
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not apply to an institution after the date the governing board of |
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the institution certifies to the comptroller and the Legislative |
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Budget Board that the governing board will treat in the same manner |
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as the institution's educational and general funds all money under |
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Subsection (a) that will be collected by the institution during the |
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state fiscal biennium beginning September 1, 2015, and enters into |
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an agreement described by Subsection (a-2)(2) with respect to that |
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state fiscal biennium. A governing board that makes the |
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certification and enters into the agreement permitted by this |
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subsection is not required to make a separate certification and |
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agreement under Subsection (a-2) to preserve its ability to claim |
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sovereign immunity for the state fiscal biennium beginning |
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September 1, 2015. This subsection expires January 1, 2016. |
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SECTION 2. The change in law made by this Act applies only |
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to a civil cause of action that accrues on or after the effective |
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date of this Act. An action that accrued before the effective date |
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of this Act is governed by the law in effect at the time the action |
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accrued, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2013. |