Texas Senate Bill SB1181

Texas 2017 - 85th Regular

Caption

Relating to the purchase of certain insurance coverage and the performance of related risk management services for the University of Houston System and the component institutions of that system.

Impact

The bill is significant as it modifies how insurance coverage and risk management services are executed within the University of Houston System compared to other state agencies. It allows these institutions greater autonomy in managing their risk and insurance needs, which could lead to more tailored and potentially cost-effective coverage options. Furthermore, this legislation reflects a broader legislative trend of permitting state higher education institutions greater flexibility and control over their operations, which could set a precedent for other university systems in Texas.

Summary

SB1181 focuses on the purchase of certain insurance coverage and the performance of related risk management services specifically for the University of Houston System and its component institutions. The bill amends the Labor Code to exempt the University of Houston System from some of the standard procedures required for state agencies concerning risk management and insurance procurement. By allowing the university system to handle its risk management services without needing approval from the state's risk management board, the bill aims to streamline processes and enhance operational efficiency for the institutions within the system.

Contention

While the bill seeks to improve efficiency, it may raise concerns among some legislators about the potential lack of oversight in how public universities manage insurance and risk-related decisions. Critics might argue that removing the requirement for board approval could lead to inconsistencies and a lack of best practices in risk management across the university system. Thus, the balance between autonomy and accountability within public academic institutions is a notable point of contention surrounding this legislation.