By: Seliger S.B. No. 177
(In the Senate - Filed November 12, 2014; January 27, 2015,
read first time and referred to Committee on Higher Education;
March 23, 2015, reported favorably, as amended, by the following
vote: Yeas 6, Nays 0; March 23, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE AMENDMENT NO. 1 By: Perry
Amend S.B. No. 177 (introduced version), in added Section
51.352(a-1), Education Code (page 2, line 22), by striking "by a
minority of its members or".
COMMITTEE AMENDMENT NO. 2 By: Perry
Amend S.B. No. 177 (introduced version) as follows:
(1) In the heading to added Section 51.3545, Education Code
(page 3, lines 60-61), strike "; RELATIONSHIP OF BOARD TO
INSTITUTIONS".
(2) In added Section 51.3545(a), Education Code (page 3,
line 61), strike "(a)".
(3) In added Section 51.3545, Education Code (page 3, lines
66-68), strike added Subsection (b).
COMMITTEE AMENDMENT NO. 3 By: Perry
Amend S.B. No. 177 (introduced version), in proposed
Subdivision (4) of amended Section 51.352(d), Education Code (page
3, lines 3-5), by striking "[control and management and evaluate
the chief executive officer of each component institution and
assist the officer in the achievement of performance goals]" and
substituting "[control and management] and, if the applicable
institution is a component institution of a university system,
evaluate, in consultation with the system administration, the
president or other chief executive officer of the [each component]
institution and assist the officer in the achievement of
performance goals".
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), 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 shall:
(1) [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) 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) govern institutions with the spirit of integrity
in all matters, including operating collaboratively with all
parties in an open and honest manner.
(a-1) The governing board of an institution of higher
education shall protect each institution under its governance from
undue external influence and 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.
(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 or other
chief executive officer 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 or other chief executive officer of the institution 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) direct that, to the extent practicable, the board
of a university system or members of the board use only official
electronic communication accounts when conducting official
business of the system through electronic communications;
(7) 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;
(8) 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
(9) [(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
the system administration [it] by the governing board of the [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 or officer's
performance, recommend to the governing board the termination of
employment of an institution's president or other chief executive
officer.
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. Section 51.355(c), Education Code, is amended to
read as follows:
(c) Except as provided by Subsection (f), not later than
November 1 of each year, the student government of each general
academic teaching institution and medical and dental unit in a
university system shall solicit applicants for appointment to the
next regular term of the position of student regent. Not later than
January 1, from among the applications received by the student
government, the student government shall select five applicants as
the student government's recommendations for the position of
student regent and send the applications of those applicants to the
chancellor of the university system. From among those applicants,
the chancellor shall select two or more applicants as the
university system's recommendations for the position of student
regent and shall send the applications of those applicants to the
governor not later than February 1. The governor may request to
review all applications for the position of student regent received
by the student governments and may request an applicant to submit
additional information to the governor. On June 1, or as soon
thereafter as practicable, the governor shall appoint one of the
applicants to serve as the student regent for the system for a
one-year term expiring on the next May 31. The governor is not
required to appoint an applicant recommended by the chancellor, but
may not appoint a student regent who did not submit an application
to the student government of a general academic teaching
institution or medical and dental unit in the system as described by
this subsection.
SECTION 5. Section 51.356(d), Education Code, is amended to
read as follows:
(d) Not later than November 1 of each year, the student
government of the general academic teaching institution shall
solicit applicants for appointment to the next regular term of the
position of student regent. Not later than January 1, from among
the applications received by the student government, the student
government shall select five applicants as the student government's
recommendations for the position of student regent and send the
applications of those applicants to the president of the
institution. From among those applicants, the president shall
select two or more applicants as the institution's recommendations
for the position of student regent and shall send the applications
of those applicants to the governor not later than February 1. The
governor may request to review all applications for the position of
student regent received by the student government and may request
an applicant to submit additional information to the governor. On
June 1, or as soon thereafter as practicable, the governor shall
appoint one of the applicants to serve as the student regent for the
institution for a one-year term expiring on the next May 31. The
governor is not required to appoint an applicant recommended by the
president, but may not appoint a student regent who did not submit
an application to the student government of the institution as
described by this subsection.
SECTION 6. 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 7. Sections 51.355(c) and 51.356(d), Education
Code, as amended by this Act, are intended only to clarify existing
law with respect to the appointment of student members of the board
of regents of a state university or state university system.
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 September 1, 2015.
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