83R5291 KEL-D
By: Eiland H.B. No. 2715
A BILL TO BE ENTITLED
AN ACT
relating to institutional funds held by public institutions of
higher education in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 51.002, Education Code, is amended by
amending Subsection (a) and adding Subsections (a-1), (a-2), and
(a-3) to read as follows:
(a) Except as provided by Subsection (a-1) and subject to
Section 51.008, the [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 the institution[, 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
(10) donations and gifts to the institution.
(a-1) The governing board of an institution that retains
control of money under Subsection (a) may not claim sovereign
immunity in any lawsuit for a claim arising under a contract paid
wholly or partly with that money, and the institution is liable for
damages under that claim, to the extent that money described by
Subsection (a) available to the institution is unencumbered by
preexisting legal obligations.
(a-2) Notwithstanding any other law, Subsection (a-1) does
not apply during a state fiscal biennium if, not later than December
31 of the state fiscal year preceding the biennium, the governing
board:
(1) certifies to the comptroller and the Legislative
Budget Board that the governing board will treat in the same manner
as the institution's educational and general funds all money under
Subsection (a) that will be collected by the institution during
that biennium; and
(2) enters into an agreement with the comptroller to
deposit that money in an account in the state treasury subject to
legislative appropriation.
(a-3) Notwithstanding Subsection (a-2), during the state
fiscal biennium beginning September 1, 2013, Subsection (a-1) does
not apply to an institution after the date the governing board of
the institution certifies to the comptroller and the Legislative
Budget Board that the governing board will treat in the same manner
as the institution's educational and general funds all money under
Subsection (a) that will be collected by the institution during the
state fiscal biennium beginning September 1, 2015, and enters into
an agreement described by Subsection (a-2)(2) with respect to that
state fiscal biennium. A governing board that makes the
certification and enters into the agreement permitted by this
subsection is not required to make a separate certification and
agreement under Subsection (a-2) to preserve its ability to claim
sovereign immunity for the state fiscal biennium beginning
September 1, 2015. This subsection expires January 1, 2016.
SECTION 2. The change in law made by this Act applies only
to a civil cause of action that accrues on or after the effective
date of this Act. An action that accrued before the effective date
of this Act is governed by the law in effect at the time the action
accrued, and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2013.