S.B. No. 15
 
 
 
 
AN ACT
  relating to the governance of public institutions of higher
  education in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 51.352, Education Code, is amended by
  amending Subsections (a), (b), (d), and (e) and adding Subsections
  (a-1), (a-2), (a-3), (a-4), and (a-5) to read as follows:
         (a)  It is the policy of this state that the governing boards
  of institutions of higher education, being composed of lay members,
  shall exercise the traditional and time-honored role for such
  boards as their role has evolved in the United States and shall
  constitute the keystone of the governance structure. In this
  regard each governing board:
               (1)  shall [is expected to] preserve institutional
  independence and [to] defend each institution's [its] right to
  manage its own affairs through its chosen administrators and
  employees;
               (2)  shall enhance the public image of each institution
  under its governance;
               (3)  shall interpret the community to the campus and
  interpret the campus to the community;
               (4)  shall nurture each institution under its
  governance to the end that each institution achieves its full
  potential within its role and mission; [and]
               (5)  shall insist on clarity of focus and mission of
  each institution under its governance;
               (6)  shall develop a balanced governing structure
  designed to promote institutional integrity, autonomy, and
  flexibility of operations while maintaining maximum operating
  efficiency and academic excellence; and
               (7)  shall govern institutions with the spirit of
  integrity in all matters, including operating in a relationship
  with all parties in an open and honest manner.
         (a-1)  The governing board of an institution of higher
  education shall ensure that the powers and duties of the board are
  not controlled by a minority of its members or by organizations or
  interests that are separate from the board in any manner, including
  through delegation, tradition, or inaction, and must protect each
  institution under its governance from undue external influence.
         (a-2)  The members of the governing board of an institution
  of higher education must remain free from any contractual,
  employment, personal financial, or familial financial interest in
  the institution or institutions under its governance. This
  subsection does not affect the application of other laws regarding
  conflicts of interest to the members.
         (a-3)  Each report, recommendation, or vote of the governing
  board of an institution of higher education or of a committee,
  subcommittee, task force, or similar entity reporting to the
  governing board must be made available to the public on the board's
  Internet website not later than the end of the next business day
  after the date of the report, recommendation, or vote.
         (a-4)  A member of the governing board of an institution of
  higher education is prohibited from voting on a budgetary or
  personnel matter related to system administration or institutions
  of higher education until the member attends a training program
  that provides instruction in ethics, conflict-of-interest law, and
  the role of a governing board in a higher education institution or
  system and that is conducted by the Texas Higher Education
  Coordinating Board, by the system office of a university system, or
  by the office of a governing board that does not govern a university
  system.  A governing board is responsible for maintaining records
  of each board member's attendance of a training program described
  by this subsection.
         (a-5)  The governing board of a university system may
  terminate the employment of an institution's president only after
  receiving a recommendation to that effect under Section
  51.353(b)(7), but the board is not required to act on that
  recommendation.
         (b)  The governing board of an institution of higher
  education shall provide long-term [the] policy direction for each
  institution of higher education under its governance [management
  and control].
         (d)  Notwithstanding [In addition to] powers and duties
  specifically granted by this code or other law, each governing
  board shall:
               (1)  after coordinating with the institution's
  president and, if applicable, the chancellor of the university
  system and after consulting with the institution's faculty,
  establish and publish, for each institution under its governance,
  long-term [control and management,] goals consistent with the role
  and mission of the institution;
               (2)  review and, as necessary, revise those goals at
  least once during each six-year period;
               (3)  appoint the chancellor or other chief executive
  officer of the system, if the board governs a university system;
               (4) [(3)]  appoint the president or other chief
  executive officer of each institution under the board's governance
  [control and management and evaluate the chief executive officer of
  each component institution and assist the officer in the
  achievement of performance goals];
               (5)  to the extent practicable and to ensure maximum
  operating efficiency, direct that communications between the board
  of a university system or members of the board and the employees of
  an institution under its governance be conducted through the
  system;
               (6)  after consulting with the institution's faculty
  and administration, [(4)] set campus admission standards
  consistent with the role and mission of the institution and
  considering the admission standards of similar institutions
  nationwide having a similar role and mission, as determined by the
  coordinating board;
               (7)  to the extent practicable, develop and implement
  policies and procedures that allow the faculty, staff, and students
  at any institution under the board's governance to be engaged in and
  informed of meetings of the board or of a committee, subcommittee,
  task force, or other similar entity reporting to the board; and
               (8) [(5)]  ensure that its formal position on matters
  of importance to the institutions under its governance is made
  clear to the coordinating board when those [such] matters are under
  consideration by the coordinating board.
         (e)  Each member of a governing board has the legal
  responsibilities of a fiduciary in the management of funds under
  the control of institutions subject to the board's governance
  [control and management].
         SECTION 2.  Subsection (b), Section 51.353, Education Code,
  is amended to read as follows:
         (b)  In addition to other powers and duties provided by this
  code or other law, each system administration shall:
               (1)  initiate, monitor, approve, and coordinate
  long-range planning for the system consistent with the goals
  established under Section 51.352(d)(1);
               (2)  approve short-range institutional plans for
  operations and expenditures;
               (3)  provide to component institutions technical
  assistance such as legal and financial services;
               (4)  evaluate each component institution and assist the
  institution in the achievement of performance goals; [and]
               (5)  perform such other duties as may be delegated to it
  by the governing board of its system;
               (6)  in consultation with the governing board of the
  system, evaluate the president or other chief executive officer of
  each component institution and assist the officer in the
  development and achievement of performance goals; and
               (7)  if necessary based on the president's performance,
  recommend to the governing board the termination of employment of
  an institution's president.
         SECTION 3.  Subchapter G, Chapter 51, Education Code, is
  amended by adding Section 51.3545 to read as follows:
         Sec. 51.3545.  EFFECT OF SUBCHAPTER; RELATIONSHIP OF BOARD
  TO INSTITUTIONS. (a)  Sections 51.352, 51.353, and 51.354 control
  over any specific provision regarding the powers and duties of a
  governing board of an institution of higher education provided by
  Subtitle C, D, E, F, or G, and any similar provision to the contrary
  in any of those subtitles has no effect.
         (b)  The governing board of an institution of higher
  education may not unreasonably or unduly interfere with the
  day-to-day operations of the institutions under its governance.
         SECTION 4.  Subsections (a) and (d), Section 61.084,
  Education Code, are amended to read as follows:
         (a)  The board by rule shall establish a training program for
  members of the governing boards of institutions of higher
  education.  Each member of a governing board of an institution of
  higher education shall attend, during the member's first year [two
  years] of service as a member of a governing board of an institution
  of higher education, a [at least one] training program under this
  section. A member of a governing board who is required to attend a
  training program under this section may attend additional training
  programs under this section.
         (d)  The content of the instruction at the training program
  shall focus on the official role and duties of the members of
  governing boards and shall provide training in the areas of
  budgeting, policy development, ethics, and governance. Topics
  covered by the training program must [may] include:
               (1)  auditing procedures and recent audits of
  institutions of higher education;
               (2)  the enabling legislation that creates
  institutions of higher education;
               (3)  the role of the governing board at institutions of
  higher education and the relationship between the governing board
  and an institution's administration, faculty and staff, and
  students;
               (4)  the mission statements of institutions of higher
  education;
               (5)  disciplinary and investigative authority of the
  governing board;
               (6)  the requirements of the open meetings law, Chapter
  551, Government Code, and the open records law, Chapter 552,
  Government Code;
               (7)  the requirements of conflict of interest laws and
  other laws relating to public officials;
               (8)  any applicable ethics policies adopted by
  institutions of higher education or the Texas Ethics Commission;
               (9)  the requirements of laws relating to the
  protection of student information under the Family Educational
  Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g) or any
  other federal or state law relating to the privacy of student
  information; and
               (10) [(9)]  any other topic relating to higher
  education the board considers important.
         SECTION 5.  (a)  Section 103.03, Education Code, is amended
  to read as follows:
         Sec. 103.03.  BOARD MEMBERS:  APPOINTMENT, TERMS, OATH.  
  Members of the board shall be appointed by the governor and
  confirmed by the senate.  Members hold office for staggered terms of
  six years, with the terms of three members expiring on February 1 of
  each odd-numbered year.  Any vacancy that occurs on the board shall
  be filled for the unexpired term by appointment of the governor.  
  Each member of the board shall take the constitutional oath of
  office.
         (b)  The change in law made by this section does not apply to
  a member of the board of regents of Midwestern State University who
  serves all or part of a full term of office if that full term begins
  before September 1, 2013.  To implement the change in law made by
  this section to Section 103.03, Education Code, the terms of office
  of members of the board that begin in 2014 expire on February 1,
  2019, the terms of office of members of the board that begin in 2016
  expire on February 1, 2021, and the terms of office of members of
  the board that begin in 2018 expire on February 1, 2023.
         SECTION 6.  (a)  Section 105.052, Education Code, is amended
  to read as follows:
         Sec. 105.052.  TERM OF OFFICE; REMOVAL; VACANCY.  The term of
  office of each regent is six years, with the terms of three regents
  expiring on February 1 of each odd-numbered year [every two years].  
  Members of the board may be removed from office for inefficiency or
  malfeasance of office.  Any vacancy that occurs on the board shall
  be filled by the governor for the unexpired term.
         (b)  The change in law made by this section does not apply to
  a member of the board of regents of the University of North Texas
  System who serves all or part of a full term of office if that full
  term begins before September 1, 2013.  To implement the change in
  law made by this section to Section 105.052, Education Code, the
  terms of office of members of the board that begin in 2015 expire on
  February 1, 2021, the terms of office of members of the board that
  begin in 2017 expire on February 1, 2023, and the terms of office of
  members of the board that begin in 2019 expire on February 1, 2025.
         SECTION 7.  (a)  Section 111.12, Education Code, is amended
  to read as follows:
         Sec. 111.12.  APPOINTMENTS TO BOARD; TERMS.  Members of the
  board are appointed by the governor with the advice and consent of
  the senate.  The term of office of each regent shall be six years,
  with the terms of three regents expiring on February 1 of each
  odd-numbered year [except that in making the first appointments the
  governor shall appoint three members for six years, three members
  for four years, and three members for two years].  Any vacancy that
  occurs on the board shall be filled for the unexpired term by
  appointment of the governor.
         (b)  The change in law made by this section does not apply to
  a member of the board of regents of the University of Houston System
  who serves all or part of a full term of office if that full term
  begins before August 26, 2013.  To implement the change in law made
  by this section to Section 111.12, Education Code, the terms of
  office of members of the board that begin in 2013 expire on February
  1, 2019, the terms of office of members of the board that begin in
  2015 expire on February 1, 2021, and the terms of office of members
  of the board that begin in 2017 expire on February 1, 2023.
         SECTION 8.  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 August 26, 2013.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 15 passed the Senate on
  April 11, 2013, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendments on May 15, 2013, by the
  following vote: Yeas 29, Nays 2.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 15 passed the House, with
  amendments, on May 14, 2013, by the following vote: Yeas 134,
  Nays 11, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor