By: Branch, et al. (Senate Sponsor - Seliger) H.B. No. 29
(In the Senate - Received from the House May 3, 2013;
May 6, 2013, read first time and referred to Committee on Higher
Education; May 17, 2013, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 5, Nays 1;
May 17, 2013, sent to printer.)
COMMITTEE SUBSTITUTE FOR H.B. No. 29 By: Seliger
A BILL TO BE ENTITLED
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), (a-5), and (a-6) 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, or personal 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 who has not yet attended a training program that
includes instruction in ethics, conflict-of-interest law, and the
role of governing boards in a higher education system is prohibited
from voting on a budgetary or personnel matter related to system
administration or institutions of higher education. The governing
board is responsible for maintaining records of training attended
as described by this subsection. For purposes of this subsection, a
university system may establish for members of the governing board
of the system a training program that includes all the elements of
instruction 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.
(a-6) A member of the governing board of a university system
who is appointed to the board when the legislature is not in session
is prohibited from voting until the appointee has appeared before
the Senate Committee on Nominations. If the Senate Committee on
Nominations fails to hold a hearing before the 20th day after the
date the chair of the committee is notified of the appointment by
the governor's office, the appointee is not prohibited from voting
if the appointee has otherwise met the requirements necessary to be
eligible to vote.
(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 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. Section 51.353(b), 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. Subchapter A, Chapter 54, Education Code, is
amended by adding Section 54.017 to read as follows:
Sec. 54.017. FIXED TUITION PRICE PLAN FOR UNDERGRADUATE
STUDENTS AT CERTAIN GENERAL ACADEMIC TEACHING INSTITUTIONS. The
governing board of each general academic teaching institution other
than a public state college shall offer entering undergraduate
students the opportunity to participate in a fixed tuition price
plan under which the institution agrees not to increase tuition
charges per semester credit hour for a participating student for at
least the first 12 consecutive semesters that occur after the date
of the student's initial enrollment at the institution, regardless
of whether the student enrolls at the institution in those
semesters, and subject to any restrictions or qualifications
adopted by the governing board. For purposes of this section, one
or more summer terms occurring in the same summer is considered a
semester.
SECTION 5. Sections 61.084(a) and (d), 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 6. Section 54.017, Education Code, as added by this
Act, applies beginning with the 2014 fall semester.
SECTION 7. 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, 2013.
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