Texas 2015 - 84th Regular

Texas Senate Bill SB177 Compare Versions

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1	1	By: Seliger S.B. No. 177
2	2	(In the Senate - Filed November 12, 2014; January 27, 2015,
3	3	read first time and referred to Committee on Higher Education;
4	4	March 23, 2015, reported favorably, as amended, by the following
5	5	vote: Yeas 6, Nays 0; March 23, 2015, sent to printer.)
6	6	Click here to see the committee vote
7	7
8	8
9	9	COMMITTEE AMENDMENT NO. 1 By: Perry
10	10	Amend S.B. No. 177 (introduced version), in added Section
11	11	51.352(a-1), Education Code (page 2, line 22), by striking "by a
12	12	minority of its members or".
13	13	COMMITTEE AMENDMENT NO. 2 By: Perry
14	14	Amend S.B. No. 177 (introduced version) as follows:
15	15	(1) In the heading to added Section 51.3545, Education Code
16	16	(page 3, lines 60-61), strike "; RELATIONSHIP OF BOARD TO
17	17	INSTITUTIONS".
18	18	(2) In added Section 51.3545(a), Education Code (page 3,
19	19	line 61), strike "(a)".
20	20	(3) In added Section 51.3545, Education Code (page 3, lines
21	21	66-68), strike added Subsection (b).
22	22	COMMITTEE AMENDMENT NO. 3 By: Perry
23	23	Amend S.B. No. 177 (introduced version), in proposed
24	24	Subdivision (4) of amended Section 51.352(d), Education Code (page
25	25	3, lines 3-5), by striking "[control and management and evaluate
26	26	the chief executive officer of each component institution and
27	27	assist the officer in the achievement of performance goals]" and
28	28	substituting "[control and management] and, if the applicable
29	29	institution is a component institution of a university system,
30	30	evaluate, in consultation with the system administration, the
31	31	president or other chief executive officer of the [each component]
32	32	institution and assist the officer in the achievement of
33	33	performance goals".
34	34	A BILL TO BE ENTITLED
35	35	AN ACT
36	36	relating to the governance of public institutions of higher
37	37	education in this state.
38	38	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
39	39	SECTION 1. Section 51.352, Education Code, is amended by
40	40	amending Subsections (a), (b), (d), and (e) and adding Subsections
41	41	(a-1), (a-2), (a-3), (a-4), and (a-5) to read as follows:
42	42	(a) It is the policy of this state that the governing boards
43	43	of institutions of higher education, being composed of lay members,
44	44	shall exercise the traditional and time-honored role for such
45	45	boards as their role has evolved in the United States and shall
46	46	constitute the keystone of the governance structure. In this
47	47	regard each governing board shall:
48	48	(1) [is expected to] preserve institutional
49	49	independence and [to] defend each institution's [its] right to
50	50	manage its own affairs through its chosen administrators and
51	51	employees;
52	52	(2) [shall] enhance the public image of each
53	53	institution under its governance;
54	54	(3) [shall] interpret the community to the campus and
55	55	interpret the campus to the community;
56	56	(4) [shall] nurture each institution under its
57	57	governance to the end that each institution achieves its full
58	58	potential within its role and mission; [and]
59	59	(5) [shall] insist on clarity of focus and mission of
60	60	each institution under its governance;
61	61	(6) develop a balanced governing structure designed to
62	62	promote institutional integrity, autonomy, and flexibility of
63	63	operations while maintaining maximum operating efficiency and
64	64	academic excellence; and
65	65	(7) govern institutions with the spirit of integrity
66	66	in all matters, including operating collaboratively with all
67	67	parties in an open and honest manner.
68	68	(a-1) The governing board of an institution of higher
69	69	education shall protect each institution under its governance from
70	70	undue external influence and ensure that the powers and duties of
71	71	the board are not controlled by a minority of its members or by
72	72	organizations or interests that are separate from the board in any
73	73	manner, including through delegation, tradition, or inaction.
74	74	(a-2) The members of the governing board of an institution
75	75	of higher education must remain free from any contractual,
76	76	employment, or personal or familial financial interest in the
77	77	institution or institutions under its governance. This subsection
78	78	does not affect the application of other laws regarding conflicts
79	79	of interest to the members.
80	80	(a-3) Each report, recommendation, or vote of the governing
81	81	board of an institution of higher education or of a committee,
82	82	subcommittee, task force, or similar entity reporting to the
83	83	governing board must be made available to the public on the board's
84	84	Internet website not later than the end of the next business day
85	85	after the date of the report, recommendation, or vote.
86	86	(a-4) A member of the governing board of an institution of
87	87	higher education who has not yet attended a training program that
88	88	includes instruction in ethics, conflict-of-interest law, and the
89	89	role of governing boards in a higher education system is prohibited
90	90	from voting on a budgetary or personnel matter related to system
91	91	administration or institutions of higher education. The governing
92	92	board is responsible for maintaining records of training attended
93	93	as described by this subsection. For purposes of this subsection, a
94	94	university system may establish for members of the governing board
95	95	of the system a training program that includes all the elements of
96	96	instruction described by this subsection.
97	97	(a-5) The governing board of a university system may
98	98	terminate the employment of an institution's president or other
99	99	chief executive officer only after receiving a recommendation to
100	100	that effect under Section 51.353(b)(7), but the board is not
101	101	required to act on that recommendation.
102	102	(b) The governing board of an institution of higher
103	103	education shall provide long-term [the] policy direction for each
104	104	institution of higher education under its governance [management
105	105	and control].
106	106	(d) Notwithstanding [In addition to] powers and duties
107	107	specifically granted by this code or other law, each governing
108	108	board shall:
109	109	(1) after coordinating with the institution's
110	110	president or other chief executive officer of the institution and
111	111	consulting with the institution's faculty, establish and publish,
112	112	for each institution under its governance, long-term [control and
113	113	management,] goals consistent with the role and mission of the
114	114	institution;
115	115	(2) review and, as necessary, revise those goals at
116	116	least once during each six-year period;
117	117	(3) appoint the chancellor or other chief executive
118	118	officer of the system, if the board governs a university system;
119	119	(4) [(3)] appoint the president or other chief
120	120	executive officer of each institution under the board's governance
121	121	[control and management and evaluate the chief executive officer of
122	122	each component institution and assist the officer in the
123	123	achievement of performance goals];
124	124	(5) to the extent practicable and to ensure maximum
125	125	operating efficiency, direct that communications between the board
126	126	of a university system or members of the board and the employees of
127	127	an institution under its governance be conducted through the
128	128	system;
129	129	(6) direct that, to the extent practicable, the board
130	130	of a university system or members of the board use only official
131	131	electronic communication accounts when conducting official
132	132	business of the system through electronic communications;
133	133	(7) after consulting with the institution's faculty
134	134	and administration, [(4)] set campus admission standards
135	135	consistent with the role and mission of the institution and
136	136	considering the admission standards of similar institutions
137	137	nationwide having a similar role and mission, as determined by the
138	138	coordinating board;
139	139	(8) to the extent practicable, develop and implement
140	140	policies and procedures that allow the faculty, staff, and students
141	141	at any institution under the board's governance to be engaged in and
142	142	informed of meetings of the board or of a committee, subcommittee,
143	143	task force, or other similar entity reporting to the board; and
144	144	(9) [(5)] ensure that its formal position on matters
145	145	of importance to the institutions under its governance is made
146	146	clear to the coordinating board when those [such] matters are under
147	147	consideration by the coordinating board.
148	148	(e) Each member of a governing board has the legal
149	149	responsibilities of a fiduciary in the management of funds under
150	150	the control of institutions subject to the board's governance
151	151	[control and management].
152	152	SECTION 2. Section 51.353(b), Education Code, is amended to
153	153	read as follows:
154	154	(b) In addition to other powers and duties provided by this
155	155	code or other law, each system administration shall:
156	156	(1) initiate, monitor, approve, and coordinate
157	157	long-range planning for the system consistent with the goals
158	158	established under Section 51.352(d)(1);
159	159	(2) approve short-range institutional plans for
160	160	operations and expenditures;
161	161	(3) provide to component institutions technical
162	162	assistance such as legal and financial services;
163	163	(4) evaluate each component institution and assist the
164	164	institution in the achievement of performance goals; [and]
165	165	(5) perform such other duties as may be delegated to
166	166	the system administration [it] by the governing board of the [its]
167	167	system;
168	168	(6) in consultation with the governing board of the
169	169	system, evaluate the president or other chief executive officer of
170	170	each component institution and assist the officer in the
171	171	development and achievement of performance goals; and
172	172	(7) if necessary based on the president's or officer's
173	173	performance, recommend to the governing board the termination of
174	174	employment of an institution's president or other chief executive
175	175	officer.
176	176	SECTION 3. Subchapter G, Chapter 51, Education Code, is
177	177	amended by adding Section 51.3545 to read as follows:
178	178	Sec. 51.3545. EFFECT OF SUBCHAPTER; RELATIONSHIP OF BOARD
179	179	TO INSTITUTIONS. (a) Sections 51.352, 51.353, and 51.354 control
180	180	over any specific provision regarding the powers and duties of a
181	181	governing board of an institution of higher education provided by
182	182	Subtitle C, D, E, F, or G, and any similar provision to the contrary
183	183	in any of those subtitles has no effect.
184	184	(b) The governing board of an institution of higher
185	185	education may not unreasonably or unduly interfere with the
186	186	day-to-day operations of the institutions under its governance.
187	187	SECTION 4. Section 51.355(c), Education Code, is amended to
188	188	read as follows:
189	189	(c) Except as provided by Subsection (f), not later than
190	190	November 1 of each year, the student government of each general
191	191	academic teaching institution and medical and dental unit in a
192	192	university system shall solicit applicants for appointment to the
193	193	next regular term of the position of student regent. Not later than
194	194	January 1, from among the applications received by the student
195	195	government, the student government shall select five applicants as
196	196	the student government's recommendations for the position of
197	197	student regent and send the applications of those applicants to the
198	198	chancellor of the university system. From among those applicants,
199	199	the chancellor shall select two or more applicants as the
200	200	university system's recommendations for the position of student
201	201	regent and shall send the applications of those applicants to the
202	202	governor not later than February 1. The governor may request to
203	203	review all applications for the position of student regent received
204	204	by the student governments and may request an applicant to submit
205	205	additional information to the governor. On June 1, or as soon
206	206	thereafter as practicable, the governor shall appoint one of the
207	207	applicants to serve as the student regent for the system for a
208	208	one-year term expiring on the next May 31. The governor is not
209	209	required to appoint an applicant recommended by the chancellor, but
210	210	may not appoint a student regent who did not submit an application
211	211	to the student government of a general academic teaching
212	212	institution or medical and dental unit in the system as described by
213	213	this subsection.
214	214	SECTION 5. Section 51.356(d), Education Code, is amended to
215	215	read as follows:
216	216	(d) Not later than November 1 of each year, the student
217	217	government of the general academic teaching institution shall
218	218	solicit applicants for appointment to the next regular term of the
219	219	position of student regent. Not later than January 1, from among
220	220	the applications received by the student government, the student
221	221	government shall select five applicants as the student government's
222	222	recommendations for the position of student regent and send the
223	223	applications of those applicants to the president of the
224	224	institution. From among those applicants, the president shall
225	225	select two or more applicants as the institution's recommendations
226	226	for the position of student regent and shall send the applications
227	227	of those applicants to the governor not later than February 1. The
228	228	governor may request to review all applications for the position of
229	229	student regent received by the student government and may request
230	230	an applicant to submit additional information to the governor. On
231	231	June 1, or as soon thereafter as practicable, the governor shall
232	232	appoint one of the applicants to serve as the student regent for the
233	233	institution for a one-year term expiring on the next May 31. The
234	234	governor is not required to appoint an applicant recommended by the
235	235	president, but may not appoint a student regent who did not submit
236	236	an application to the student government of the institution as
237	237	described by this subsection.
238	238	SECTION 6. Sections 61.084(a) and (d), Education Code, are
239	239	amended to read as follows:
240	240	(a) The board by rule shall establish a training program for
241	241	members of the governing boards of institutions of higher
242	242	education. Each member of a governing board of an institution of
243	243	higher education shall attend, during the member's first year [two
244	244	years] of service as a member of a governing board of an institution
245	245	of higher education, a [at least one] training program under this
246	246	section. A member of a governing board who is required to attend a
247	247	training program under this section may attend additional training
248	248	programs under this section.
249	249	(d) The content of the instruction at the training program
250	250	shall focus on the official role and duties of the members of
251	251	governing boards and shall provide training in the areas of
252	252	budgeting, policy development, ethics, and governance. Topics
253	253	covered by the training program must [may] include:
254	254	(1) auditing procedures and recent audits of
255	255	institutions of higher education;
256	256	(2) the enabling legislation that creates
257	257	institutions of higher education;
258	258	(3) the role of the governing board at institutions of
259	259	higher education and the relationship between the governing board
260	260	and an institution's administration, faculty and staff, and
261	261	students;
262	262	(4) the mission statements of institutions of higher
263	263	education;
264	264	(5) disciplinary and investigative authority of the
265	265	governing board;
266	266	(6) the requirements of the open meetings law, Chapter
267	267	551, Government Code, and the open records law, Chapter 552,
268	268	Government Code;
269	269	(7) the requirements of conflict of interest laws and
270	270	other laws relating to public officials;
271	271	(8) any applicable ethics policies adopted by
272	272	institutions of higher education or the Texas Ethics Commission;
273	273	(9) the requirements of laws relating to the
274	274	protection of student information under the Family Educational
275	275	Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g) or any
276	276	other federal or state law relating to the privacy of student
277	277	information; and
278	278	(10) [(9)] any other topic relating to higher
279	279	education the board considers important.
280	280	SECTION 7. Sections 51.355(c) and 51.356(d), Education
281	281	Code, as amended by this Act, are intended only to clarify existing
282	282	law with respect to the appointment of student members of the board
283	283	of regents of a state university or state university system.
284	284	SECTION 8. This Act takes effect immediately if it receives
285	285	a vote of two-thirds of all the members elected to each house, as
286	286	provided by Section 39, Article III, Texas Constitution. If this
287	287	Act does not receive the vote necessary for immediate effect, this
288	288	Act takes effect September 1, 2015.
289	289	* * * * *