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  By: Zaffirini S.B. No. 5
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration and business affairs of public
  institutions of higher education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. FINANCIAL MANAGEMENT
         SECTION 1.01.  Section 51.003, Education Code, is amended by
  amending Subsection (b) and adding Subsection (f) to read as
  follows:
         (b)  The funds shall either be deposited in the depository
  bank or banks or invested as authorized by Chapter 2256, Government
  Code (Public Funds Investment Act). Funds that are to be deposited
  in the depository bank or banks must be deposited within seven days
  from the date of receipt by the institution [collection].
         (f)  Notwithstanding any other provision of this section,
  the governing board of each institution may maintain unsecured
  deposits in a foreign bank as necessary to support the
  institution's operations in a foreign country. The foreign bank
  must:
               (1)  be licensed and supervised by a central bank;
               (2)  be audited annually by an accounting firm that
  follows international financial reporting standards; and
               (3)  maintain a capital to total assets ratio that is
  not less than the greater of four percent or the minimum tier 1
  capital to total assets ratio required for depository institutions
  insured by the Federal Deposit Insurance Corporation.
         SECTION 1.02.  Subchapter A, Chapter 51, Education Code, is
  amended by amending Section 51.005 and adding Sections 51.010,
  51.011, and 51.012 to read as follows:
         Sec. 51.005.  REPORTS. Each institution of higher education
  [(a)   True and full accounts shall be kept by the governing board
  and by the employees of the institution of all funds collected from
  all sources and of all sums paid out and the persons to whom and the
  purposes for which the sums are paid. The governing board] shall
  prepare [annually print] a complete annual financial report as
  prescribed by Section 2101.011, Government Code [of all the sums
  collected, all expenditures, and all sums remaining on hand. The
  report shall show the true condition of all funds as of the August
  31 preceding as well as the collections and expenditures for the
  preceding year.
         [(b)     Reports under this section must be in a form approved
  jointly by the coordinating board and the comptroller. The
  accounting and classification procedures of each institution must
  be consistent with uniform procedures prescribed for that purpose
  by the coordinating board and the comptroller. The requirements
  imposed by the coordinating board and the comptroller must be
  designed to reduce paperwork and duplicative reports.
         [(c)     The governing board shall furnish one copy of the
  report each to the governor, comptroller of public accounts, state
  auditor, Texas Higher Education Coordinating Board, Legislative
  Budget Board, House Appropriations Committee, Senate Finance
  Committee, and Legislative Reference Library. A copy of the report
  shall be submitted to the comptroller by the deadline established
  by the comptroller or the General Appropriations Act as necessary
  to prepare an audited comprehensive financial report.   The
  governing board shall retain five copies of the report for
  distribution to legislators or other state officials on request].
         Sec. 51.010.  COLLECTION OF DELINQUENT OBLIGATIONS. If
  under the rules adopted by the attorney general under Chapter 2107,
  Government Code, an institution of higher education is not required
  to refer a delinquent obligation for collection to the attorney
  general, the institution is not required to expend resources for
  further collection efforts if, considering the amount, security,
  likelihood of collection, expense, and available resources, the
  institution determines that further collection should not be
  actively pursued.
         Sec. 51.011.  DISPOSITION OF SMALL CREDIT BALANCES.
  (a)  This section applies to a credit balance of less than $25 held
  by an institution of higher education that is presumed abandoned
  under Chapter 72, Property Code.
         (b)  An institution of higher education may maintain an
  unclaimed money fund and transfer to that fund a credit balance to
  which this section applies.  A deposit to the unclaimed money fund
  does not affect the ownership of the amount deposited. The
  institution shall:
               (1)  adopt procedures for owners to make and receive
  payments of claims against the fund; and
               (2)  maintain a database that permits members of the
  public to search for ownership of unclaimed funds.
         (c)  The institution of higher education shall use the fund
  to pay the claims of persons establishing ownership of amounts
  transferred to the fund and shall hold and account for the unclaimed
  money fund as educational and general funds of the institution. If
  the fund balance is insufficient to pay a valid claim, the
  institution shall pay the claim from the institution's other
  educational and general funds.
         (d)  Each fiscal year, after deducting funds sufficient to
  pay anticipated expenses of and claims against the unclaimed money
  fund, the institution shall use the balance of the fund as other
  educational and general funds of the institution.
         (e)  In consultation with institutions of higher education,
  the comptroller by rule may establish minimum requirements for
  notice to owners of unclaimed money deposited in the unclaimed
  money fund and for charges for that notice. The rules may not
  provide stricter requirements than the comptroller applies for
  amounts of less than $25 in the custody of the comptroller under
  Chapter 74, Property Code.
         (f)  If an institution of higher education maintains an
  unclaimed money fund under this section, Chapter 74, Property Code,
  does not apply to a credit balance to which this section applies.
         Sec. 51.012.  PAYMENTS BY ELECTRONIC FUNDS TRANSFER OR
  ELECTRONIC PAY CARD. An institution of higher education may make
  any payment, including a payment of salary or wages, through
  electronic funds transfer or by electronic pay card.
         SECTION 1.03.  Section 65.42, Education Code, is amended to
  read as follows:
         Sec. 65.42.  DELINQUENT ACCOUNTS; VENUE. A suit by The
  University of Texas System on its own behalf or on behalf of a
  component institution of The University of Texas System to recover
  a delinquent loan, account, or debt owed to The University of Texas
  System or a component institution of The University of Texas System
  must [may] be brought in Travis County.
         SECTION 1.04.  Section 1231.001, Government Code, is amended
  by amending Subdivision (2) and adding Subdivision (3) to read as
  follows:
               (2)  "State security" means:
                     (A)  an obligation, including a bond, issued by:
                           (i)  a state agency;
                           (ii)  an entity that is expressly created by
  statute and has statewide jurisdiction; or
                           (iii)  an entity issuing the obligation on
  behalf of this state or on behalf of an entity described by
  Subparagraph (i) or (ii);
                     (B)  an installment sale or lease-purchase
  obligation that is issued by or on behalf of an entity described by
  Paragraph (A) and that has:
                           (i)  a stated term of more than five years;
  or
                           (ii)  an initial principal amount of more
  than $250,000; or
                     (C)  an obligation, including a bond, that is
  issued under Chapter 53, Education Code, at the request of or for
  the benefit of an institution of higher education [as defined by
  Section 61.003, Education Code,] other than a public junior
  college.
               (3)  "Institution of higher education" has the meaning
  assigned by Section 61.003, Education Code.
         SECTION 1.05.  Section 1231.041, Government Code, is amended
  to read as follows:
         Sec. 1231.041.  APPROVAL OF STATE SECURITY. (a)  Except as
  otherwise provided by this section, an [An] entity, including a
  state agency, may not issue a state security unless:
               (1)  the board approves the issuance; or
               (2)  the security is exempted under law, including a
  board rule adopted under Section 1231.022(2).
         (b)  A state security issued by an institution of higher
  education, or issued at the request of or for the benefit of an
  institution of higher education, is not subject to board approval
  unless the general revenue of the state is pledged to the payment of
  the security.
         SECTION 1.06.  Section 74.001, Property Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  This chapter does not apply to small credit balances
  held by an institution of higher education in an unclaimed money
  fund under Section 51.011, Education Code.
         SECTION 1.07.  Section 51.011, Education Code, as added by
  this Act, applies to credit balances held by a public institution of
  higher education on or after the effective date of this Act.
  ARTICLE 2. GOODS AND SERVICES
         SECTION 2.01.  Section 51.923, Education Code, is amended to
  read as follows:
         Sec. 51.923.  QUALIFICATIONS OF CERTAIN BUSINESS ENTITIES TO
  ENTER INTO CONTRACTS WITH AN INSTITUTION OF HIGHER EDUCATION.  
  (a)  In this section:
               (1)  "Business entity" ["Corporation"] means any
  entity recognized by law through which business is conducted,
  including a sole proprietorship, partnership, firm, corporation,
  limited liability company, holding company, joint stock company,
  receivership, or trust [a corporation for profit organized under
  the laws of this state or under laws other than the laws of this
  state].
               (2)  "Governing board" has the meaning assigned by
  Section 61.003 [of this code].
               (3)  "Institution of higher education" has the meaning
  assigned by Section 61.003 [of this code].
               (4)  "Nonprofit corporation" means any organization
  exempt from federal income tax under Section 501 of the Internal
  Revenue Code of 1986 that does not distribute any part of its income
  to any member, director, or officer.
         (b)  A nonprofit corporation is not disqualified from
  entering into a contract or other transaction with an institution
  of higher education even though one or more members of the governing
  board of the institution of higher education also serves as a
  member, [or] director, officer, or employee of the nonprofit
  corporation.
         (c)  A business entity [corporation] is not disqualified
  from entering into a contract or other transaction with an
  institution of higher education even though one or more members of
  the governing board of the institution of higher education have an
  interest in the business entity, subject to Subsection (d) [also
  serves as a stockholder or director of the corporation provided
  that no member of the governing board owns or has a beneficial
  interest in more than five percent of the corporation's outstanding
  capital stock and further provided that the contract or transaction
  is:
               [(1)     an affiliation, licensing, or sponsored research
  agreement; or
               [(2)     awarded by competitive bidding or competitive
  sealed proposals].
         (d)  An institution of higher education is not prohibited
  from entering into a contract or other transaction with a business
  entity in which a member of the governing board of the institution
  of higher education has an interest if the interest is not a
  substantial interest or, if the interest is a substantial interest,
  the [described in this section if any] board member [having an
  interest described in this section in the contract or transaction]
  discloses that interest in a meeting held in compliance with
  Chapter 551, Government Code, and refrains from voting on the
  contract or transaction requiring board approval. Any such
  contract or transaction requiring board approval must be approved
  by an affirmative majority of the board members voting on the
  contract or transaction.
         (e)  For purposes of this section, a member of a governing
  board has a substantial interest in a business entity if:
               (1)  the member owns 10 percent or more of the voting
  stock or shares of the business entity or owns either 10 percent or
  more or $15,000 or more of the fair market value of the business
  entity;
               (2)  funds received by the member from the business
  entity exceed 10 percent of the member's gross income for the
  previous year;
               (3)  the member is an officer of the business entity or
  a member of the governing board of the business entity; or
               (4)  an individual related to the member in the first
  degree by consanguinity or affinity, as determined under Chapter
  573, Government Code, has an interest in the business entity as
  described by Subdivision (1), (2), or (3).
         (f)  A violation of this section does not render an action of
  the governing board voidable unless the contract or transaction
  that was the subject of the action would not have been approved by
  the governing board without the vote of the member who violated this
  section.
         SECTION 2.02.  Section 51.9335, Education Code, is amended
  by amending Subsections (d) and (f) and adding Subsections (g) and
  (h) to read as follows:
         (d)  Subtitle D, Title 10, Government Code, and Subchapter B,
  Chapter 2254, Government Code, do not apply to the acquisition of
  goods and services under this section, except that an institution
  of higher education must comply with any provision of those laws, or
  a rule adopted under a provision of those laws, [To the extent of
  any conflict, this section prevails over any other law, including
  Chapters 2155, 2156, 2157, 2158, 2167, and 2170, Government Code,
  except a law or rule] relating to contracting with historically
  underutilized businesses or relating to the procurement of goods
  and services from persons with disabilities. An institution of
  higher education may, but is not required to, acquire goods or
  services as provided by Subtitle D, Title 10 [Chapters 2155, 2156,
  2157, 2158, 2167, and 2170], Government Code.
         (f)  This section does not apply to professional services as
  defined by Section 2254.002, Government Code.  Professional
  services shall be procured in accordance with Subchapter A, Chapter
  2254, Government Code.
         (g)  An institution of higher education may adopt rules and
  procedures for the acquisition of goods or services.
         (h)  In any contract for the acquisition of goods and
  services to which an institution of higher education is a party, a
  provision required by applicable law to be included in the contract
  is considered to be a part of the executed contract without regard
  to:
               (1)  whether the provision appears on the face of the
  contract; or
               (2)  whether the contract includes any provision to the
  contrary.
         SECTION 2.03.  Subchapter Z, Chapter 51, Education Code, is
  amended by adding Sections 51.9336 and 51.9337 to read as follows:
         Sec. 51.9336.  ELECTRONIC AND DIGITAL SIGNATURES. (a)  An
  institution of higher education or university system, as those
  terms are defined by Section 61.003, shall determine whether, and
  the extent to which, the institution or system will send and accept
  electronic or digital signatures to and from other persons and
  otherwise create, generate, communicate, store, process, use, and
  rely on electronic or digital signatures. The institution or
  system may adopt rules and procedures governing the use of
  electronic or digital signatures.
         (b)  To the extent of any conflict, this section prevails
  over Chapter 322, Business & Commerce Code, and rules and
  guidelines adopted under that chapter.
         Sec. 51.9337.  INTERAGENCY CONTRACTS FOR INFORMATION
  RESOURCE TECHNOLOGIES.  (a)  In this section, "institution of
  higher education" and "university system" have the meanings
  assigned by Section 61.003.
         (b)  Section 2054.119, Government Code, does not apply to an
  interagency contract for information resources technologies
  between two or more institutions of higher education or between an
  institution of higher education or university system and one or
  more state agencies, institutions of higher education, or
  university systems.
         SECTION 2.04.  Section 51.966, Education Code, is amended by
  amending Subsection (c) and adding Subsection (d) to read as
  follows:
         (c)  Section 612.002(b), Government Code, does not apply to
  an institution of higher education or university system purchasing
  insurance under this section.
         (d)  In [As used in] this section, "governing board," [and]
  "institution of higher education," and "university system" have the
  meanings assigned by Section 61.003.
         SECTION 2.05.  Subchapter C, Chapter 791, Government Code,
  is amended by adding Section 791.035 to read as follows:
         Sec. 791.035.  CONTRACTS WITH INSTITUTIONS OF HIGHER
  EDUCATION OR UNIVERSITY SYSTEMS. (a)  A local government and an
  institution of higher education or university system may contract
  with one another to perform any governmental functions and
  services. If the terms of the contract provide for payment based on
  cost recovery, any law otherwise requiring competitive procurement
  does not apply to the functions and services covered by the
  contract.
         (b)  In this section, "institution of higher education" and
  "university system" have the meanings assigned by Section 61.003,
  Education Code.
         SECTION 2.06.  Section 2054.008, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  A university system or institution of higher education
  must provide written notice to the Legislative Budget Board under
  Subsection (b) only if the cost of the major information system
  exceeds $1 million. In this subsection, "university system" has
  the meaning assigned by Section 61.003, Education Code.
         SECTION 2.07.  Subsection (n), Section 2155.078, Government
  Code, is amended to read as follows:
         (n)  This section does not apply to an institution [a medical
  and dental unit] to which Section 51.9335, Education Code, applies
  or to an institution to which Section 73.115, Education Code,
  applies.
  ARTICLE 3. HUMAN RESOURCES
         SECTION 3.01.  Subchapter Z, Chapter 51, Education Code, is
  amended by adding Section 51.9611 to read as follows:
         Sec. 51.9611.  PAYROLL DEDUCTIONS FOR EMPLOYEES OF
  UNIVERSITY SYSTEM OR INSTITUTION OF HIGHER EDUCATION. (a)  In this
  section, "institution of higher education" and "university system"
  have the meanings assigned by Section 61.003.
         (b)  The governing board of a university system, or of an
  institution of higher education that is not a component institution
  of a university system, may authorize employees of the system or
  institution, as applicable, to elect a payroll deduction for any
  purpose that the governing board determines serves a public purpose
  and benefits employees.  The board may adopt policies and
  procedures governing payroll deductions under this section.  A
  payroll deduction under this section is in addition to payroll
  deductions authorized by other law.
         (c)  A payroll deduction under this section must be at the
  written request of the employee, and the request must state the
  amount to be deducted and the entity to which the deducted amount is
  to be transferred. A payroll deduction is in effect until revoked
  in writing by the employee, but the policies and procedures of the
  university system or institution of higher education, as
  applicable, may provide for enrollment periods.
         (d)  A university system or institution of higher education
  may collect an administrative fee to cover the costs of making a
  deduction.
         SECTION 3.02.  Subsection (a), Section 1601.004, Insurance
  Code, is amended to read as follows:
         (a)  In this chapter, "dependent," with respect to an
  individual eligible to participate in the uniform program under
  Section 1601.101 or 1601.102, means the individual's:
               (1)  spouse;
               (2)  unmarried child younger than 25 years of age; and
               (3)  child of any age who the system determines lives
  with or has the child's care provided by the individual on a regular
  basis if the child is mentally retarded or physically incapacitated
  to the extent that the child is dependent on the individual for care
  or support, as determined by the system, and:
                     (A)  if the child is at least 25 years of age, the
  child's coverage under this chapter has not lapsed, and the child
  was enrolled as a participant in the health benefits coverage under
  the uniform program on the date of the child's 25th birthday; or
                     (B)  if the child is a child of an individual
  eligible to participate as an employee under Section 1601.101, at
  the time of the individual's initial enrollment in health benefits
  coverage under the uniform program the child is at least 25 years of
  age and is enrolled in comparable coverage, as determined by the
  system, under the individual's previous health benefits coverage.
         SECTION 3.03.  Subchapter C, Chapter 1601, Insurance Code,
  is amended by adding Section 1601.111 to read as follows:
         Sec. 1601.111.  PROGRAMS PROMOTING DISEASE PREVENTION,
  WELLNESS, AND HEALTH.  A system may establish premium discounts,
  surcharges, rebates, or a revision in otherwise applicable
  copayments, coinsurance, or deductibles, or any combination of
  those incentives, for an individual who participates in
  system-approved programs promoting disease prevention, wellness,
  and health.
         SECTION 3.04.  Subsection (d), Section 1601.201, Insurance
  Code, is amended to read as follows:
         (d)  Subsection (c) does not prohibit a system from
  contributing, from money not appropriated from the general revenue
  fund, amounts in excess of the amount specified by that subsection
  for:
               (1)  an individual employed by the system in a position
  that as a condition of employment requires the individual to be
  enrolled as a student in the system in graduate level courses; or
               (2)  an individual who is a tenured faculty member with
  whom the system has entered into a phased retirement agreement
  under which the individual will work less than 40 hours a week for a
  specified period of time at the end of which the individual will
  retire.
  ARTICLE 4. REAL ESTATE AND CONSTRUCTION
         SECTION 4.01.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.0573 to read as follows:
         Sec. 61.0573.  PROJECTS EXEMPT FROM BOARD APPROVAL. (a)  In
  this section, "project" means the acquisition of improved or
  unimproved real property or the construction, repair, or
  rehabilitation of a building or other facility.
         (b)  Board approval of a project at an institution of higher
  education is not required under Section 61.0572 or 61.058 if the
  institution notifies the board of the project and certifies to the
  board that:
               (1)  the institution meets the current published board
  standards applicable to the institution for space need, usage
  efficiency, deferred maintenance, and critical deferred
  maintenance or the board has approved the institution's plan to
  correct any deficiencies in the institution's compliance with those
  applicable standards;
               (2)  the project meets current published board
  standards applicable to the project for cost, efficiency, and space
  use;
               (3)  the project is identified on the institution's
  campus master plan, as submitted to the board; and
               (4)  the institution has no deficiencies according to
  the board's most recent facilities audit or the board has approved
  the institution's plan to correct any such deficiencies.
         (c)  The board's staff shall promptly review a certification
  submitted under Subsection (b) and notify the institution whether
  the certification is sufficient and whether the information
  certified is consistent with the records of the board. If the staff
  review determines that the certification is sufficient and that the
  information certified is consistent with the records of the board,
  the project is considered approved by the board.
         (d)  This section does not apply to a project that is a new
  branch campus or a new higher education center.
         SECTION 4.02.  Subsection (c), Section 2166.302, Government
  Code, is amended to read as follows:
         (c)  Subsection (a) does not apply to a project constructed
  by and for the Texas Department of Transportation or an institution
  of higher education or university system. In this subsection,
  "institution of higher education" and "university system" have the
  meanings assigned by Section 61.003, Education Code.
         SECTION 4.03.  Subsection (c-1), Section 2166.403,
  Government Code, is amended to read as follows:
         (c-1)  For a project constructed by and for a state
  institution of higher education, the [governing body of the]
  institution shall, during the planning phase of the proposed
  construction for the project, verify [in an open meeting] the
  economic feasibility of incorporating into the building's design
  and proposed energy system alternative energy devices for space
  heating and cooling functions, water heating functions, electrical
  load functions, and interior lighting functions.  The [governing
  body of the] institution shall determine the economic feasibility
  of each function listed in this subsection by comparing the
  estimated cost of providing energy for the function, based on the
  use of conventional design practices and energy systems, with the
  estimated cost of providing energy for the function, based on the
  use of alternative energy devices, during the economic life of the
  building.
         SECTION 4.04.  Subsection (b), Section 2167.001, Government
  Code, is amended to read as follows:
         (b)  This chapter does not apply to:
               (1)  radio antenna space;
               (2)  residential space for a Texas Department of Mental
  Health and Mental Retardation program;
               (3)  residential space for a Texas Youth Commission
  program;
               (4)  space to be used for less than one month for
  meetings, conferences, conventions, seminars, displays,
  examinations, auctions, or similar purposes;
               (5)  district office space for members of the
  legislature;
               (6)  space used by the Texas Workforce Commission;
               (7)  residential property acquired by the Texas
  Department of Housing and Community Affairs or the Texas State
  Affordable Housing Corporation that is offered for sale or rental
  to individuals and families of low or very low income or families of
  moderate income;
               (8)  except as provided by Section 2167.007, [classroom
  and instructional] space for a university system or [an]
  institution of higher education; or
               (9)  space leased by the Texas Veterans Commission to
  administer the veterans employment services program.
         SECTION 4.05.  Section 33.06, Tax Code, is amended by adding
  Subsection (g) to read as follows:
         (g)  If the ownership interest of an individual entitled to a
  deferral under this section is a life estate, a lien for the
  deferred tax attaches to the estate of the life tenant, and not to
  the remainder interest, if the owner of the remainder is an
  institution of higher education that has not consented to the
  deferral.  In this subsection, "institution of higher education"
  has the meaning assigned by Section 61.003, Education Code.  This
  subsection does not apply to a deferral for which the individual
  entitled to the deferral filed the affidavit required by Subsection
  (b) before September 1, 2011.
  ARTICLE 5. BOARD APPOINTMENTS
         SECTION 5.01.  Section 552.123, Government Code, is amended
  to read as follows:
         Sec. 552.123.  EXCEPTION: NAME OF APPLICANT FOR CHIEF
  EXECUTIVE OFFICER OF INSTITUTION OF HIGHER EDUCATION. The name of
  an applicant for the position of chief executive officer of an
  institution of higher education, and other information that would
  tend to identify the applicant, is excepted from the requirements
  of Section 552.021, except that the governing body of the
  institution must give public notice of the name or names of the
  finalists being considered for the position at least 21 days before
  the date of the meeting at which final action or vote is to be taken
  on the employment of the person.
         SECTION 5.02.  Subsection (b), Section 95.006, Health and
  Safety Code, is amended to read as follows:
         (b)  The advisory committee is composed of:
               (1)  the following representatives appointed by the
  executive director of the office:
                     (A)  one representative of the office;
                     (B)  one representative of the Texas Education
  Agency;
                     (C)  one representative of the Texas Pediatric
  Society;
                     (D)  one representative of the American Diabetes
  Association;
                     (E)  [one representative who is a member of the
  board of regents of The University of Texas--Pan American;
                     [(F)]  one school nurse representative from an
  urban school located within the boundaries of a regional education
  service center;
                     (F) [(G)]  one parent or guardian of a child who
  resides within the boundaries of a regional education service
  center; and
                     (G) [(H)]  one person with knowledge and
  experience in health care in school settings; and
               (2)  the following representatives appointed by the
  chairman of the council:
                     (A)  one representative of the council;
                     (B)  one representative of the Texas Medical
  Association;
                     (C)  one school district administrator
  representative from a school district located within the boundaries
  of a regional education service center;
                     (D)  one school principal representative from a
  school district located within the boundaries of a regional
  education service center; and
                     (E)  one school nurse representative from a rural
  school located within the boundaries of a regional education
  service center.
         SECTION 5.03.  Subsections (a) and (c), Section 2.03,
  Chapter 670, Acts of the 72nd Legislature, Regular Session, 1991
  (Article 4477-7j, Vernon's Texas Civil Statutes), are amended to
  read as follows:
         (a)  On or after the effective date of this Act, the
  Commissioners Court of Gaines County shall appoint three persons,
  the governing body of the city of Seminole shall appoint two
  persons, and the governing body of the city of Seagraves shall
  appoint two persons to serve as initial directors of the district.
  The four persons appointed by the governing bodies of the cities of
  Seminole and Seagraves shall represent the municipalities within
  the county, and the three persons appointed by the Commissioners
  Court of Gaines County shall represent the unincorporated areas of
  the county. [In addition, the board of regents of The University of
  Texas System shall appoint one person to serve as an ex-officio,
  nonvoting director of the district.]
         (c)  The Commissioners Court of Gaines County and the
  governing bodies of the cities of Seminole and Seagraves shall each
  appoint one initial director to serve a term expiring on May 1 of
  the first year after the year in which the original appointment is
  made. In addition, the Commissioners Court of Gaines County shall
  appoint two initial directors and the governing bodies of the
  cities of Seminole and Seagraves shall each appoint one initial
  director to serve terms expiring on May 1 of the second year after
  the year in which the original appointment is made. [The initial
  ex-officio member serves a term expiring on May 1 of the second year
  after the year in which the original appointment is made.]
  Successor directors serve two-year terms.
         SECTION 5.04.  Subsection (a), Section 3.01, Chapter 670,
  Acts of the 72nd Legislature, Regular Session, 1991 (Article
  4477-7j, Vernon's Texas Civil Statutes), is amended to read as
  follows:
         (a)  The district is governed by a board of directors
  composed of seven voting members [and one ex-officio nonvoting
  member] who are appointed as provided by this Act.  However, the
  district shall change to a system of electing the voting directors
  if:
               (1)  the Commissioners Court of Gaines County and the
  governing bodies of the cities of Seminole and Seagraves each pass a
  resolution calling for the election of the directors; or
               (2)  the board receives a petition signed by at least
  150 registered voters of Gaines County calling for the election of
  the directors.
  ARTICLE 6. REPORTS; RECORDS; AUDITS; NOTICES
         SECTION 6.01.  Subsection (d), Section 51.403, Education
  Code, is amended to read as follows:
         (d)  For purposes of this subsection, "small classes" [Each
  institution shall file with its governing board and the
  coordinating board a small class report, excluding individual
  instruction courses, indicating department, course number, title
  of course, and the name of the instructor. "Small classes," for the
  purpose of this report,] are undergraduate-level courses with less
  than 10 registrations, and graduate-level courses with less than 5
  registrations. No small classes shall be offered in any
  institution except as authorized by the appropriate governing
  board, within the guidelines established by the Coordinating Board.
         SECTION 6.02.  Subchapter H, Chapter 51, Education Code, is
  amended by adding Section 51.406 to read as follows:
         Sec. 51.406.  EXPIRATION OF CERTAIN REPORTING REQUIREMENTS
  APPLICABLE TO INSTITUTIONS OF HIGHER EDUCATION AND UNIVERSITY
  SYSTEMS. (a)  In this section, "university system" has the meaning
  assigned by Section 61.003.
         (b)  To the extent that any of the following laws require
  reporting by a university system or an institution of higher
  education, a university system or institution of higher education
  is not required to make the report on or after September 1, 2013,
  unless legislation enacted by the 83rd Legislature that becomes law
  expressly requires the institution or system to make the report:
               (1)  Section 7.109;
               (2)  Section 33.083;
               (3)  Section 51.0051;
               (4)  Section 59.07;
               (5)  Section 130.086;
               (6)  Section 325.007, Government Code;
               (7)  Section 669.003, Government Code;
               (8)  Section 2005.007, Government Code;
               (9)  Section 2052.103, Government Code;
               (10)  Section 2054.097, Government Code;
               (11)  Section 2101.011, Government Code;
               (12)  Section 2102.009, Government Code;
               (13)  Chapter 2114, Government Code; and
               (14)  Section 2205.041, Government Code.
         (c)  A rule or policy of a state agency, including the Texas
  Higher Education Coordinating Board, in effect on June 1, 2011,
  that requires reporting by a university system or an institution of
  higher education has no effect on or after September 1, 2013, unless
  the rule or policy is affirmatively and formally readopted before
  that date by formal administrative rule published in the Texas
  Register and adopted in compliance with Chapter 2001, Government
  Code.  This subsection does not apply to:
               (1)  a rule or policy for which the authorizing statute
  is listed in Subsection (b);
               (2)  a rule or policy for which the authorizing statute
  is repealed on or before September 1, 2013, by legislation enacted
  by the legislature that becomes law; or
               (3)  a report required under any of the following laws:
                     (A)  Section 51.005;
                     (B)  Section 51.3062;
                     (C)  Section 51.402;
                     (D)  Section 56.039;
                     (E)  Section 61.051(k);
                     (F)  Section 61.059; or
                     (G)  Section 62.095(b).
         SECTION 6.03. Section 51.914, Education Code, is amended to
  read as follows:
         Sec. 51.914.  PROTECTION OF CERTAIN INFORMATION.  (a)  In
  order to protect the actual or potential value, the following
  information is [shall be] confidential and is [shall] not [be]
  subject to disclosure under Chapter 552, Government Code, or
  otherwise:
               (1)  all information relating to a product, device, or
  process, the application or use of such a product, device, or
  process, and all technological and scientific information
  (including computer programs) developed in whole or in part at a
  state institution of higher education, regardless of whether
  patentable or capable of being registered under copyright or
  trademark laws, that have a potential for being sold, traded, or
  licensed for a fee;
               (2)  any information relating to a product, device, or
  process, the application or use of such product, device, or
  process, and any technological and scientific information
  (including computer programs) that is the proprietary information
  of a person, partnership, corporation, or federal agency that has
  been disclosed to an institution of higher education solely for the
  purposes of a written research contract or grant that contains a
  provision prohibiting the institution of higher education from
  disclosing such proprietary information to third persons or
  parties; or
               (3)  the plans, specifications, blueprints, and
  designs, including related proprietary information, of a
  scientific research and development facility that is jointly
  financed by the federal government and a local government or state
  agency, including an institution of higher education, if the
  facility is designed and built for the purposes of promoting
  scientific research and development and increasing the economic
  development and diversification of this state.
         (b)  Information maintained by or for an institution of
  higher education that would reveal the institution's plans or
  negotiations for commercialization or research, or that consists of
  unpublished research results or data, is not subject to Chapter
  552, Government Code, unless the information has been published, is
  patented, or is otherwise subject to an executed license, sponsored
  research agreement, or research contract or grant.  In this
  subsection, "institution of higher education" has the meaning
  assigned by Section 61.003.
         SECTION 6.04.  Subsection (h), Section 61.051, Education
  Code, is amended to read as follows:
         (h)  The board shall make continuing studies of the needs of
  the state for research and designate the institutions of higher
  education to perform research as needed. The board shall also
  maintain an inventory of all institutional and programmatic
  research activities being conducted by the various institutions,
  whether state-financed or not. Once a year, on dates prescribed by
  the board, each institution of higher education shall report to the
  board all research conducted at that institution during the last
  preceding year. The submission by an institution of the
  institution's response to the National Science Foundation's annual
  Higher Education Research and Development Survey satisfies the
  requirements of this section. All reports required by this
  subsection shall be made subject to the limitations imposed by
  security regulations governing defense contracts for research.
         SECTION 6.05.  Section 61.0582, Education Code, is amended
  by adding Subsection (f) to read as follows:
         (f)  This section does not apply to a university system that
  maintains an ongoing system-wide capital improvement program
  approved by the system's board of regents.
         SECTION 6.06.  Section 130.152, Education Code, is amended
  to read as follows:
         Sec. 130.152.  CRITERIA FOR PROGRAMS FOR THE DISADVANTAGED.
  A junior college may develop programs to serve persons from
  backgrounds of economic or educational deprivation by submission of
  a plan based on the following criteria to the Texas Higher Education 
  Coordinating Board[, Texas College and University System]:
               (1)  an instructional program that accommodates the
  different learning rates of students and compensates for prior
  economic and educational deprivation;
               (2)  an unrestricted admissions policy allowing the
  enrollment of any person 18 years of age or older with a high school
  diploma or its equivalent who can reasonably be expected to benefit
  from instruction;
               (3)  the assurance that all students, regardless of
  their differing programs of study, will be considered, known, and
  recognized as full members of the student body, provided that the
  administrative officers of a junior college may deny admission to a
  prospective student or attendance of an enrolled student if, in
  their judgment, the person [he] would not be competent to benefit
  from a program of the college, or would by the person's [his]
  presence or conduct create a disruptive atmosphere within the
  college not consistent with the statutory purposes of the college;
               (4)  [the submission of a plan for a financial aid
  program which removes to the maximum extent possible the financial
  barriers to the educational aspirations of the citizens of this
  state;
               [(5)     an annual evaluation report based on scientific
  methods and utilizing control groups wherever possible to be
  submitted to the coordinating board at the end of each school year,
  covering each remedial-compensatory course or program offered at
  the college;
               [(6)]  any other criteria consistent with the
  provisions of this subchapter specified by the coordinating board;
  and
               (5) [(7)]  a junior college must obtain approval of the
  coordinating board [Coordinating Board, Texas College and
  University System,] before offering any courses under the
  provisions of this Act.
         SECTION 6.07.  Section 401.042, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  In consultation with public institutions of higher
  education, the offices of the governor and the Legislative Budget
  Board shall review the forms for higher education legislative
  appropriations requests to identify opportunities to improve
  efficiency, provide better transparency of funding sources,
  eliminate unnecessary or duplicative requirements, and otherwise
  reduce the cost or difficulty of providing information related to
  appropriations requests.
         SECTION 6.08.  Subchapter L, Chapter 403, Government Code,
  is amended by adding Section 403.2715 to read as follows:
         Sec. 403.2715.  UNIVERSITY SYSTEMS AND INSTITUTIONS OF
  HIGHER EDUCATION. (a)  In this section, "institution of higher
  education" and "university system" have the meanings assigned by
  Section 61.003, Education Code.
         (b)  Except as provided by this section, this subchapter does
  not apply to a university system or institution of higher
  education.
         (c)  A university system or institution of higher education
  shall account for all personal property as defined by the
  comptroller under Section 403.272.  At all times, the property
  records of a university system or institution of higher education
  must accurately reflect the personal property possessed by the
  system or institution.
         (d)  The chief executive officer of each university system or
  institution of higher education shall designate one or more
  property managers. The property manager shall maintain the records
  required and be the custodian of all personal property possessed by
  the system or institution.
         (e)  Sections 403.273(h), 403.275, and 403.278 apply to a
  university system or institution of higher education.
         SECTION 6.09.  Subsection (d), Section 2101.0115,
  Government Code, is amended by adding Subdivision (4) to read as
  follows:
               (4)  "Institution of higher education" and "university
  system" have the meanings assigned by Section 61.003, Education
  Code.
         SECTION 6.10.  Section 2101.0115, Government Code, is
  amended by adding Subsection (e) to read as follows:
         (e)  This section does not apply to an institution of higher
  education or university system.
         SECTION 6.11.  Subsection (c), Section 2254.028, Government
  Code, is amended to read as follows:
         (c)  Subsection (a) [(a)(3)] does not apply to a major
  consulting services contract to be entered into by an institution
  of higher education other than a public junior college if the
  institution includes in the invitation published under Section
  2254.029 a finding by the chief executive officer of the
  institution that the consulting services are necessary and an
  explanation of that finding.
         SECTION 6.12.  Section 2254.0301, Government Code, is
  amended to read as follows:
         Sec. 2254.0301.  CONTRACT NOTIFICATION. (a)  A state agency
  shall provide written notice to the Legislative Budget Board of a
  contract for consulting services if the amount of the contract,
  including an amendment, modification, renewal, or extension of the
  contract, exceeds $14,000.  The notice must be on a form prescribed
  by the Legislative Budget Board and filed not later than the 10th
  day after the date the entity enters into the contract.
         (b)  This section does not apply to a university system or
  institution of higher education. In this subsection, "institution
  of higher education" and "university system" have the meanings
  assigned by Section 61.003, Education Code.
         SECTION 6.13.  Subsection (f), Section 388.005, Health and
  Safety Code, is amended to read as follows:
         (f)  This section does not apply to a state agency or an
  institution of higher education that the State Energy Conservation
  Office determines [that], before September 1, 2007, adopted a plan
  for conserving energy under which the agency or institution
  established a percentage goal for reducing the consumption of
  electricity.  The exemption provided by this section applies only
  while the agency or institution has an energy conservation plan in
  effect and only if the agency or institution submits reports on the
  conservation plan each year [calendar quarter] to the governor, the
  Legislative Budget Board, and the State Energy Conservation Office.
         SECTION 6.14.  Section 412.053, Labor Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  This section does not apply to an institution of higher
  education or university system. In this subsection, "institution
  of higher education" and "university system" have the meanings
  assigned by Section 61.003, Education Code.
         SECTION 6.15.  Subsection (d), Section 31.153, Natural
  Resources Code, is amended to read as follows:
         (d)  Each state agency, other than an institution of higher
  education, annually at the time set by the division, shall furnish
  the Texas Historical Commission with a photograph and information
  that specifies and identifies the age of each building:
               (1)  that was acquired by the agency after the date of
  the preceding annual submission and that is at least 45 years old on
  the date of the current submission; or
               (2)  that is possessed by the agency and has become 45
  years old since the date the information was previously submitted.
  ARTICLE 7.  REPEALER
         SECTION 7.01.  (a)  The following laws are repealed
  effective September 1, 2011:
               (1)  Section 51.216, Education Code;
               (2)  Subsections (b) and (c), Section 51.403, Education
  Code;
               (3)  Section 51.4033, Education Code;
               (4)  Section 61.0815, Education Code;
               (5)  Section 61.086, Education Code;
               (6)  Subsection (c), Section 61.087, Education Code;
               (7)  Section 62.098, Education Code;
               (8)  Section 1434.054, Government Code;
               (9)  Section 2107.005, Government Code;
               (10)  Subsection (c), Section 412.042, Labor Code; and
               (11)  Subsection (c), Section 3.01, Chapter 670, Acts
  of the 72nd Legislature, Regular Session, 1991 (Article 4477-7j,
  Vernon's Texas Civil Statutes).
         (b)  The following provisions of the Education Code are
  repealed effective September 1, 2013:
               (1)  Section 51.859;
               (2)  Subsection (e), Section 51.917;
               (3)  Subsection (d), Section 51.968;
               (4)  Subsection (h), Section 54.203;
               (5)  Subsection (c), Section 56.034;
               (6)  Subsection (j), Section 56.079;
               (7)  Subsection (c), Section 61.066;
               (8)  Subsection (d), Section 63.003;
               (9)  Section 63.004;
               (10)  Section 63.103;
               (11)  Subsection (m), Section 86.52;
               (12)  Section 88.210;
               (13)  Section 106.54;
               (14)  Section 142.005;
               (15)  Section 143.006;
               (16)  Section 147.005;
               (17)  Section 148.005; and
               (18)  Section 153.008.
         SECTION 7.02.  (a)  This section governs a conflict between
  this Act and any other Act of the 82nd Legislature, Regular Session,
  2011, without regard to the relative dates of enactment.
         (b)  If this Act and any other Act repeal the same statute,
  the earlier effective date of repeal controls.
         (c)  If this Act amends a statute that any other Act repeals,
  the repeal controls.
  ARTICLE 8. EFFECTIVE DATE
         SECTION 8.01.  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, 2011.