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  By: Branch H.B. No. 3517
 
 
 
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.  Subsection (b), Section 51.003, Education
  Code, is amended 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].
         SECTION 1.02.  Subchapter A, Chapter 51, Education Code, is
  amended by adding Section 51.010 to read as follows:
         Sec. 51.010.  PAYMENTS BY ELECTRONIC FUNDS TRANSFER OR
  ELECTRONIC PAY CARD.  An institution of higher education may make
  any payment, including salary or wages, through electronic funds
  transfer or by electronic paycard.
         SECTION 1.03.  Subchapter A, Chapter 51, Education Code, is
  amended by adding Section 51.011 to read as follows:
               Sec. 51.011.  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.
         SECTION 1.04.  Subchapter A, Chapter 51, Education Code, is
  amended by adding Section 51.012 to read as follows:
         Sec. 51.012.  DISPOSITION OF SMALL CREDIT BALANCES.  (a)  
  This section applies to a credit balance of less than $25 that is
  presumed abandoned under Chapter 72, Property Code, and is held by
  an institution of higher education, as defined by Section 61.003.
         (b)  An institution of higher education may maintain an
  unclaimed money fund and transfer to that fund a credit balance of
  less than $25 that is presumed abandoned. Deposit in the unclaimed
  money fund does not affect the ownership of the amount deposited,
  and the institution shall adopt procedures for owners to make and
  receive payment of claims. The institution shall maintain a
  database that permits the public to search for ownership of
  unclaimed funds.
         (c)  In consultation with institutions, the comptroller of
  public accounts may by rule establish minimum requirements for
  notice to owners of money credited to an unclaimed money fund and
  charges for such a notice.  The rules may not provide stricter
  requirements than the comptroller of public accounts applies for
  amounts of less than $25 in the custody of the comptroller under
  Chapter 74, Property Code.
         (d)  The institution shall hold and account for the fund as
  educational and general funds of the institution, and shall use the
  unclaimed money fund to pay the claims of persons establishing
  ownership of amounts transferred to the fund. If the fund balance
  is insufficient to pay a valid claim, the institution shall pay the
  claim from the educational and general funds of the institution.
         (e)  Each fiscal year after deducting funds sufficient to
  pay anticipated expenses and claims of the unclaimed money fund,
  the institution shall use the balance as other educational and
  general funds of the institution.
         (d)  If an institution maintains an unclaimed money fund
  under this section, Chapter 74, Property Code, does not apply to a
  credit balance to which this section applies.
         SECTION 1.05.  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 1.06.  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
  shall [may] be brought in Travis County.
         SECTION 1.07.  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 1.08.  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 or under rule
  of the board 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 1.09.  Section 51.012, Education Code, as added by
  Section 1.04 of this Act, applies to credit balances of less than
  $25 held on or after the effective date of this Act.
  ARTICLE 2.  GOODS AND SERVICES
         SECTION 2.01.  Section 51.9335, Education Code, is amended
  by amending Subsections (d), (e), and (f), and adding Subsection
  (g) and (h), to read as follows:
         (d)  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 Chapters
  2155, 2156, 2157, 2158, 2167, and 2170, Government Code.
         (e)  In this section, "institution of higher education" has
  the meaning assigned by Section 61.003 and includes a school of
  veterinary medicine and a health care facility operated by a
  medical and dental unit, except that the term does not include [The
  University of Texas M.D. Anderson Cancer Center or] a public junior
  college.
         (f)  Except as otherwise provided by this section, Subtitle
  D, Title 10, Government Code, and Chapter 2254, Government Code,
  [This section] does not apply to purchase of goods and services
  under this section [professional services as defined by Section
  2254.002, Government Code].
         (g)  The institution may adopt rules and procedures for the
  acquisition of goods or services.
         (h)  In any contract for the acquisition of goods and
  services, a provision required by applicable law 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) any provision
  of the contract to the contrary.
         SECTION 2.02.  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.
         SECTION 2.03.  Subsection (f), Section 74.008, Education
  Code, is repealed.
         SECTION 2.04.  Subchapter Z, Chapter 51, Education Code, is
  amended by adding Section 51.9336 to read as follows:
         Sec. 51.9336.  ELECTRONIC SIGNATURES. An institution of
  higher education or university system shall determine whether, and
  the extent to which, the institution will send and accept
  electronic signatures to and from other persons and otherwise
  create, generate, communicate, store, process, use, and rely upon
  electronic signatures. The institution or system may adopt rules
  and procedures governing the use of electronic signatures.
         (b)  To the extent of any conflict, this section prevails
  over Chapter 322, Business and Commerce Code, and rules and
  guidelines adopted under that chapter.
         SECTION 2.05.  Subchapter Z, Chapter 51, Education Code, is
  amended by adding Section 51.9337 to read as follows:
         Sec. 51.9337.  ACCESS TO ELECTRONIC AND INFORMATION
  RESOURCES BY INDIVIDUALS WITH DISABILITIES. If an institution of
  higher education or university system procures from a vendor
  electronic and information resources subject to Subchapter M,
  Chapter 2054, Government Code, or any services for those
  resources, the vendor from which the resources or services are
  procured is primarily responsible for compliance by those
  resources or services with the accessibility requirements of that
  subchapter and the rules adopted under that subchapter,
  notwithstanding a requirement to the contrary of the procurement
  contract or of the rules adopted under that subchapter.
         SECTION 2.06.  Subchapter Z, Chapter 51, Education Code, is
  amended by adding Section 51.9338 to read as follows:
         Sec. 51.9338.  INTERAGENCY CONTRACTS FOR INFORMATION
  RESOURCE TECHNOLOGIES. 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 more state agencies, institutions of higher education, or
  university systems.
         SECTION 2.07.  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. (a) A local government and an institution of higher
  education or university system may contract 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 2.08.  Subsection (a), Section 153.006, Education
  Code, is amended to read as follows:
         (a)  In order to carry out the purposes of this chapter and to
  support the activities of centers described in this chapter, to the
  extent authorized by its governing board, an institution of higher
  education may:
               (1)  enter into agreements establishing royalties,
  fees, and other consideration for technology developed in whole or
  part by it;
               (2)  accept equity interests in organizations that
  license, manage, or otherwise administer rights to technology
  belonging to it or under its control in exchange for such rights, in
  whole or in part;
               (3)  accept equity interests in organizations that
  license or otherwise have rights in its technology as consideration
  for its providing monetary, business, scientific, or engineering
  services or technical assistance;
               (4)  use income from the commercialization of
  technology to fund the activities of the center;
               (5)  solicit, accept, and administer gifts, grants, and
  donations;
               (6)  without the necessity of approval by the attorney
  general, enter into contracts for legal services with a competent
  lawyer or law firm to:
                     (A)  prepare, file, pursue, and maintain patent
  applications in the United States or foreign jurisdictions;
                     (B)  secure copyright protection for computer
  software;
                     (C)  prepare, file, and pursue trademark and
  service mark applications;
                     (D)  pursue litigation to prevent or stop
  infringement of any intellectual property rights of the
  institution; or
                     (E)  handle any other legal matter related to the
  operation and activities of the center; and
               (7)  enter into such other business arrangements as may
  be appropriate for achieving the purposes of this chapter.
         SECTION 2.09.  Section 402.0212, Government Code, is amended
  by adding Subsection (e) to read as follows:
         (e)  The attorney general may review and approve a standard
  form contract of a university system or an institution of higher
  education for legal services to be provided to the system or
  institution. If the attorney general approves a standard form, the
  attorney general is not required under this section to approve
  individual contracts that are in substantial compliance with the
  approved form or to approve invoices under those contracts. The
  attorney general may conduct an annual review of the standard form
  and the signed contracts and for that purpose may collect a fee,
  established in consultation with the university system or
  institution, reasonably estimated to cover the expenses of that
  review.
         SECTION 2.10.  Subchapter C, Chapter 2254, Government Code,
  is amended by adding Sec. 2254.110 to read as follows:
         Sec. 2254.110.  COLLECTION ACTIONS BY AN INSTITUTION OF
  HIGHER EDUCATION. A person awarded a contract under Chapter 2107
  by an institution of higher education for a routine collection
  matter may file suit or otherwise pursue judicial action to collect
  the obligation owed in a court of this state or another state on
  behalf of the institution.
         SECTION 2.11.  Section 2254.102, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  This subchapter does not apply to a contract:
               (1)  with a state agency to collect an obligation under
  Section 2107.003(b), (c), or (c-1), except as provided by Section
  2254.110; or
               (2)  for legal services entered into by an institution
  of higher education under Section 153.006, Education Code.
         SECTION 2.12.  Section 2107.003(e), Government Code, is
  amended to read as follows:
         (e)  Except as provided by Section 2254.110, [A] person
  awarded a contract under Subsection (b), (c), or (c-1) may not file
  suit or otherwise pursue judicial action to collect the obligation
  owed in a court of this state or another state on behalf of the
  contracting state agency.
         SECTION 2.13.  Section 51.966, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  Section 612.002, Government Code, does not apply to an
  institution of higher education or university system purchasing
  insurance under this section.
         SECTION 2.14.  Section 2054.008, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  A university system or institution of higher education
  shall provide written notice to the Legislative Budget Board under
  Subsection (b) only if the cost of the major information system
  exceeds $1 million.
  ARTICLE 3.  HUMAN RESOURCES
         SECTION 3.01.  Section 1601.004(a), 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)  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)  as to 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 3.02.  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
  these incentives, for an individual who participates in system-
  approved programs promoting disease prevention, wellness, and
  health.
         SECTION 3.03.  Section 1601.201, Insurance Code, is amended
  by adding Subsection (e) to read as follows:
         (e)  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 an individual who is a tenured faculty member with whom the
  System has entered into a phased retirement agreement under which
  the person will work less than 40 hours a week for a specified
  period of time at the end of which the person will retire.
         SECTION 3.04.  Section 658.007, Government Code, is amended
  by adding Subsection (c) to read as follows:
         (c)  Notwithstanding other law, including Sections 658.003
  and 658.004, or terms of contract, an institution of higher
  education may establish a mandatory employee furlough or work
  reduction program as necessary to increase efficiency, reduce the
  cost of operations, or otherwise address the financial condition of
  the institution.  While a furlough or work reduction program is in
  effect, the terms and conditions of the program apply
  notwithstanding other law.
         SECTION 3.05.  Subchapter K, Chapter 659, Government Code,
  is amended by adding Section 659.264 to read as follows:
         Sec. 659.264.  CERTAIN SALARY REDUCTIONS AT INSTITUTIONS OF
  HIGHER EDUCATION. Notwithstanding other law or terms of contract,
  subject solely to procedures and rules adopted by the governing
  board, an institution of higher education may establish a program
  of temporary or permanent salary reductions as necessary to reduce
  cost of operations or otherwise address the financial condition of
  the institution.
         SECTION 3.06.  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 not a component of a system, may
  authorize employees 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 a 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
  institution or system may provide for enrollment periods.
         (d)  An institution may collect an administrative fee to
  cover the costs of making a deduction.
  ARTICLE 4.  REAL ESTATE AND CONSTRUCTION
         SECTION 4.01.  Subsections (b), (d), and (e), Section
  61.0572, Education Code, are amended to read as follows:
         (b)  The board shall:
               (1)  determine formulas for space utilization in all
  educational and general buildings and facilities at institutions of
  higher education;
               (2)  devise and promulgate methods to assure maximum
  daily and year-round use of educational and general buildings and
  facilities, including but not limited to maximum scheduling of day
  and night classes and maximum summer school enrollment;
               (3)  consider plans for selective standards of
  admission when institutions of higher education approach capacity
  enrollment;
               (4)  require, and assist the public technical
  institutes, public senior colleges and universities, medical and
  dental units, and other agencies of higher education in developing
  long-range campus master plans for campus development;
               [(5)  endorse, or delay until the next succeeding
  session of the legislature has the opportunity to approve or
  disapprove, the proposed purchase of any real property by an
  institution of higher education, except a public junior college;]
               [(6)  develop and publish standards, rules, and
  regulations to guide the institutions and agencies of higher
  education in making application for the approval of new
  construction and major repair and rehabilitation of all buildings
  and facilities regardless of proposed use; and
               (6) [(7)]  ascertain that the board's standards and
  specifications for new construction, repair, and rehabilitation of
  all buildings and facilities are in accordance with Chapter 469,
  Government Code [Article 9102, Revised Statutes].
         (d)  The [(1)  The board, for purposes of state funding, may
  review and approve as an addition to an institution's educational
  and general buildings and facilities inventory any improved real
  property acquired by gifts or lease-purchase only if:]
                     [(A)  the institution requests to place the
  improved real property on its educational and general buildings and
  facilities inventory; and]
                     [(B)  the value of the improved real property is
  more than $300,000 at the time the institution requests the
  property to be added to the educational and general buildings and
  facilities inventory.]
               [(2)  This subsection does not apply to gifts, grants,
  or lease-purchase arrangements intended for clinical or research
  facilities.]
         [(e)  Approval of the board is not required to acquire real
  property that is financed by bonds issued under Section 55.17(e)(3)
  or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174,
  55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
  55.17721, except that the] board may [shall] review purchases of
  improved [all] real property added to an institution's educational
  and general buildings and facilities inventory [to be financed by
  bonds issued under those sections] to determine whether the
  property meets the standards adopted by the board for cost,
  efficiency, and space use, but the purchase of the improved real
  property is not contingent on board review. If the property does
  not meet those standards, the board shall notify the governor, the
  lieutenant governor, the speaker of the house of representatives,
  and the Legislative Budget Board.
         SECTION 4.02.  Section 61.058, Education Code, is amended to
  read as follows:
         Sec. 61.058.  NEW CONSTRUCTION AND REPAIR AND REHABILITATION
  PROJECTS.  (a)  This section does not apply to [Except as provided
  by Subsection (b) of this section, the board shall approve or
  disapprove all new construction and repair and rehabilitation of
  all buildings and facilities at institutions of higher education
  financed from any source provided that:
                     [(A)  the board's consideration and determination
  shall be limited to the purpose for which the new or remodeled
  buildings are to be used to assure conformity with approved space
  utilization standards and the institution's approved programs and
  role and mission if the cost of the project is not more than
  $4,000,000, but the board may consider cost factors and the
  financial implications of the project to the state if the total cost
  is in excess of $4,000,000;
                     [(B)  the requirement of approval for new
  construction applies only to projects the total cost of which is in
  excess of $4,000,000;
                     [(C)  the requirement of approval for major repair
  and rehabilitation of buildings and facilities applies only to a
  project the total cost of which is more than $4,000,000;
                     [(D)  the requirement of approval or disapproval
  by the board does not apply to any new construction or major repair
  and rehabilitation project that is specifically approved by the
  legislature;
                     [(E)  the requirement of approval by the board
  does not apply to a junior college's construction, repair, or
  rehabilitation financed entirely with funds from a source other
  than the state, including funds from ad valorem tax receipts of the
  college, gifts, grants, and donations to the college, and student
  fees; and
                     [(F)  the requirement of approval by the board
  does not apply to construction, repair, or rehabilitation of
  privately owned buildings and facilities located on land leased
  from an institution of higher education if the construction,
  repair, or rehabilitation is financed entirely from funds not under
  the control of the institution, and provided further that:]
                           [(i)  the] buildings and facilities that are
  to be used exclusively for auxiliary enterprises[;] and
                           [(ii)  the buildings and facilities] will
  not require appropriations from the legislature for operation,
  maintenance, or repair [unless approval by the board has been
  obtained].
         (b)  The This section does not apply to construction, repair,
  or rehabilitation financed by bonds issued under Section
  55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174,
  55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
  55.17721, except that the] board may [shall] review all
  construction, repair, or rehabilitation of buildings and
  facilities at institutions of higher education [to be financed by
  bonds issued under those sections] to determine whether the
  construction, rehabilitation, or repair meets the standards
  adopted by board rule for cost, efficiency, and space use, but the
  construction, rehabilitation, or repair is not contingent on board
  review. If the construction, rehabilitation, or repair does not
  meet those standards, the board shall notify the governor, the
  lieutenant governor, the speaker of the house of representatives,
  and the Legislative Budget Board.
         [(c)  As necessary to ensure that the board is required to
  approve only substantial construction, repair, or rehabilitation
  projects at institutions of higher education, for all projects
  described by Subsection (a)(B) or (a)(C) the board by rule may
  increase the total cost threshold required for board approval under
  this section.]
         SECTION 4.03.  Subsection (a), Section 51.951, Education
  Code, is amended to read as follows:
         (a)  Information related to the development, location,
  purchase price, or sale price of real property developed,
  purchased, or sold by or for an institution of higher education, as
  defined by Section 61.003, including a contract provision related
  to the development, purchase, or sale of the property, is
  confidential and exempt from disclosure under Chapter 552,
  Government Code, until all deeds for the property that are
  applicable to the transaction or series of related transactions
  are executed and until all substantive performance or executory
  requirements of applicable contracts have been satisfied [a deed
  for the property is executed]. Information that is confidential and
  exempted from disclosure under this subsection includes an
  appraisal, completed report, evaluation, investigation conducted
  for the purpose of locating or determining the purchase or sale
  price of the property, or any report prepared in anticipation of
  purchasing or selling real property.
         SECTION 4.04.  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, as defined by Section 61.003,
  Education Code, that has not consented to the deferral.
         SECTION 4.05.  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.
         SECTION 4.06.  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 4.07.  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 4.08.  Section 1434.054, Government Code, is
  repealed.
  ARTICLE 5.  BOARD APPOINTMENTS
         SECTION 5.01.  Sections 2.03(a) and (c), Chapter 670, Acts
  of the 72nd Legislature, 1991, (Art. 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 an the
  governing bodies of the cities of Seminole and Seagraves shall each
  appoint one initial director so 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 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 5.02.  Sections 3.01(a), Chapter 670, Acts of the
  72nd Legislature, 1991, (Art. 4477-7j, Vernon's Texas Civil
  Statutes) are 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.
         SECTION 5.03.  Sections 3.01(c), Chapter 670, Acts of the
  72nd Legislature, 1991, (Art. 4477-7j, Vernon's Texas Civil
  Statutes) is repealed.
         SECTION 5.04.  Section 95.006(b), 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;]
                     (E)  [(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 5.05.  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.
  ARTICLE 6.  EFFECTIVE DATE
         SECTION 6.01.  This Act takes effect immediately if it
  receives the 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.