HBA-JLV H.B. 1545 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1545
By: Uher
Higher Education
2/25/2001
Introduced



BACKGROUND AND PURPOSE 

Institutions of higher education in the state of Texas have identified
changes in the laws concerning several administrative areas that could save
money, produce new revenue or increase the operational efficiency of
institutions of higher education across the state.  Institutions seek to
streamline operations, minimize duplicate requirements, and enhance their
competitive edge in attracting and retaining employees. The proposed
changes address virtually all administrative areas, including procurement,
human resources, financial management, and notice policies. House Bill 1545
modifies provisions relating to the operation, regulation, and
administration of public institutions of higher education. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 1545 amends the Education and Government codes to modify
provisions relating to the operation, regulation, and administration of
public institutions of higher education (institution).  The bill authorizes
an institution to acquire goods and services  by the method that provides
the best value to the institution and provides criteria for determining the
best value (Sec. 51.9335, Education Code).  The bill prohibits the Texas
Department of Criminal Justice from contracting with an institution to
provide these goods or services (Sec. 497.0211, Government Code). 

The bill amends the Education Code to authorize the governing board of a
university system to adopt a comprehensive leave policy that applies to
employees working in a medical and dental unit of the university system
and, after September 1, 2005, applies to other employees of the university
system or any component institution of the system as determined appropriate
by the governing board .   The bill sets forth the provisions a
comprehensive leave policy must address (Sec. 51.961, Education Code).  The
bill authorizes an institution to grant merit salary increases, including
one-time merit payments, to employees from any funds.  The bill provides
that an institution must adopt criteria for the granting of merit salary
increases before awarding them to an employee (Sec. 51.962). 

The bill authorizes a full-time employee of an institution who has
appointments to more than one position at the same institution to receive
pay for working more than 40 hours a week if the institution determines
that pay, in lieu of compensatory time, is in the best interest of the
institution (Sec. 51.963).   The bill authorizes an institution to employ
an individual who has retired under a state retirement system if the
governing board of the institution determines that the employment is in the
best interest of the institution. The bill also authorizes the governing
board to pay the retired individual an appropriate amount, as determined by
the governing board.  The bill provides that a retired individual employed
by an institution is authorized to participate in the appropriate state
retirement system, but is not authorized to continue to receive retirement
benefits under other state law if the person is employed by the institution
on a greater than one-half time basis (Sec. 51.964). 

 The bill authorizes an institution, by adopted rules and guidelines, to
notify employees by means of electronic media if a state law requires an
institution to provide written notification to its officers or employees
(Sec. 51.965). 

The bill amends the Government Code to provide that a state employee who,
at any time during the employee's lifetime, has accrued six months of
continuous state employment and who resigns, is dismissed, or otherwise
separates from state employment by an institution is entitled to be paid
for the accrued balance of the employee's vacation time as of the date of
separation (Sec. 661.062). 

The bill authorizes an employee of an institution to voluntarily authorize
in writing a reduction each pay period from the employee's salary or wage
payment for the payment of any fee or charge for parking, a parking permit,
a transportation pass, or other qualified transportation benefit charge.
The bill also authorizes an employee of an institution to voluntarily
authorize in writing a deduction each pay period from the employee's salary
or wage payment for the payment of certain activity or program fees.  The
bill requires an institution to determine which fee or charge an employee
may pay  by this method (Sec. 659.202). The bill requires that a salary
deduction made by an employee be considered compensation. If authorized by
federal law, a salary deduction or salary reduction may be made on a pretax
basis (Sec. 659.205).  

The bill amends the Education Code to authorize the governing board of an
institution to exempt, by written policy, full-time employees of the
institution from the payment of all or a portion of tuition and fees (Sec.
54.220). 

The bill removes provisions that require the board of regents of The
University of Texas System to secure the opinion of the attorney general
before a gift or grant of real property may be conveyed to certain medical
units of The University of Texas System (Secs. 74.103 and 74.153). 

If an institution refunds the amount of fees and tuition collected for
courses from which a student drops, then the bill provides that the
institution may pay refunds on a pro rata basis (Sec. 54.006).  In
determining the amount of a fee or tuition waiver for a student, the bill
authorizes an institution to set the amount of a waiver or exemption on a
pro rata basis (Sec. 54.202). 

The bill authorizes the governing board of an institution to retain control
of tuition collected at the institution (51.002).  The governing board of
an institution is not required to deposit tuition or laboratory and special
course fees collected at the institution in the state treasury (Sec.
51.008). 

The bill amends the Government Code to require an institution to enter into
a memorandum of understanding with the General Services Commission and any
other another agency receiving construction and maintenance or lease of
space information from the institution if the institution is to include the
information for the construction and maintenance information and lease of
space reports to the General Services Commission in a report to another
agency (Secs. 2166.101 and 2167.005).  The bill provides that a university
system or an institution is not required to make a strategic plan for its
operations (Sec. 2056.001).   

The bill amends the Education Code to provide that a general property
deposit may not exceed $50 for each student (Sec. 54.502).  The bill
authorizes an institution that accepts payment of tuition, a fee, or other
charge by credit card to charge the credit card user a fee for processing
the payment (Sec. 54.5011). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.