81R2642 KSD-F
By: West S.B. No. 1968
A BILL TO BE ENTITLED
AN ACT
relating to the creation and operation of higher education
enhancement districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Title 3, Education Code, is amended by adding
Subtitle I to read as follows:
SUBTITLE I. HIGHER EDUCATION DISTRICTS
CHAPTER 159. HIGHER EDUCATION ENHANCEMENT DISTRICTS
Sec. 159.001. DEFINITIONS. In this chapter:
(1) "District" means a higher education enhancement
district created under this chapter.
(2) "Institution of higher education" has the meaning
assigned by Section 61.003.
(3) "Participating entity" means a municipality,
school district, or public or private institution of higher
education that has entered into a memorandum of understanding to
create a district under this chapter.
(4) "Private or independent institution of higher
education" has the meaning assigned by Section 61.003.
(5) "Public or private institution of higher
education" includes only:
(A) an institution of higher education; or
(B) a private or independent institution of
higher education.
(6) "School district" means an independent, common, or
municipal school district, an open-enrollment charter school, or a
county education department.
Sec. 159.002. PURPOSE. The purpose of this chapter is to
enable one or more public or private institutions of higher
education and municipalities and school districts comprising the
community served by the institutions, through the creation of a
higher education enhancement district, to provide local funding to:
(1) increase the educational opportunities available
to students and residents in the area served by the district;
(2) improve the education level and productivity of
the workforce in the area served by the district;
(3) increase student enrollment in and access to the
institutions;
(4) promote economic development in the area served by
the district; and
(5) increase the tax base of participating entities.
Sec. 159.003. DISTRICT AUTHORIZATION. A higher education
enhancement district may be created, operated, and financed as
provided by this chapter.
Sec. 159.004. PUBLIC HEARING. Before entering into a
memorandum of understanding for the creation of a district under
Section 159.005, the governing bodies of the municipalities, school
districts, and public or private institutions of higher education
seeking to establish a district shall, after notice published in
one or more newspapers having general circulation in the territory
in which the district may be established, hold at least one public
hearing at which any interested person may appear and offer
testimony regarding the establishment of a district.
Sec. 159.005. MEMORANDUM OF UNDERSTANDING FOR CREATION AND
OPERATION OF DISTRICT. (a) After holding at least one public
hearing under Section 159.004, the governing bodies of one or more
municipalities, school districts, and public or private
institutions of higher education providing educational services to
the residents of the municipalities or school districts may enter
into a memorandum of understanding for the creation and operation
of a district. A district may not be created unless at least one
municipality or school district and at least one public or private
institution of higher education enters into the memorandum of
understanding.
(b) A memorandum of understanding entered into under this
section must:
(1) specify:
(A) the geographic boundaries of the district;
(B) the governance of the district; and
(C) each participating entity's financial,
personnel, and in-kind support for the district's activities;
(2) set a term for each participating entity's
participation, not to exceed five years;
(3) provide that the memorandum of understanding may
be amended only by unanimous agreement of the participating
entities;
(4) include adequate controls to ensure that the
district's activities promote the interests of the participating
entities and provide a public benefit to the area served by the
district; and
(5) include provisions for the disposition of district
assets and the winding down of district business on termination of
the district.
(c) At any time, a participating entity may extend the
entity's participation in the district by an additional term not to
exceed five years.
Sec. 159.006. DISTRICT TERRITORY. The geographic
boundaries of a district:
(1) must include all the territory of each
participating municipality or school district; and
(2) may include any additional territory as agreed by
the participating entities.
Sec. 159.007. USE OF PARTICIPATING ENTITY'S RESOURCES FOR
DISTRICT ACTIVITIES; TUITION AND FEE WAIVERS. (a) The governing
body of a participating entity, on determining that the entity's
participation in the district serves a public purpose and benefits
the entity's public interests, may:
(1) expend funds of the entity to:
(A) pay for operating costs of the district; and
(B) support scholarships, loans, or tuition or
fee discounts or waivers for students attending participating
institutions awarded by or in coordination with the district; and
(2) assign employees of the entity to perform services
on behalf of the district related to the district's public purpose.
(b) A participating entity may restrict the use by the
district of any or all of the entity's resources to students who
reside within the entity's territory.
(c) A participating institution of higher education may
waive all or part of the tuition and fees charged to a student to the
extent the costs of the waiver are paid by the district.
Sec. 159.008. COORDINATION WITH OTHER ENTITIES. A district
may coordinate its activities with other public or private
organizations or other entities and may include representatives of
private organizations or entities on the governing body of the
district.
Sec. 159.009. OPEN MEETINGS; OPEN RECORDS. A district
created under this chapter:
(1) is subject to Chapters 551 and 552, Government
Code; and
(2) may conduct regular or special meetings by
telephone conference call or videoconference under the posting,
accessibility, and technical standards prescribed by Sections
551.126 and 551.127, Government Code.
Sec. 159.010. PARTICIPATING ENTITY AS FISCAL AGENT.
Participating entities may agree for one of the entities to act as
fiscal agent for the district. If a participating entity is acting
as fiscal agent for the district, the purchasing requirements
applicable to that entity shall be used for all purposes for the
district regardless of the source of the funds used.
Sec. 159.011. ACCEPTANCE OF FUNDS. A district may solicit
and accept gifts or grants from any public or private source for the
purposes of this chapter.
Sec. 159.012. TERMINATION OF DISTRICT. A district created
under this chapter terminates:
(1) as provided by the memorandum of understanding
that created the district;
(2) on the agreement of each participating entity; or
(3) when there is not at least one municipality or
school district and at least one public or private institution of
higher education participating in the district.
SECTION 2. 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, 2009.