HBA-JLV C.S.H.B. 1545 77(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 1545 By: Uher Higher Education 333/18/2001 Committee Report (Substituted) 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. C.S.H.B. 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 C.S.H.B. 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. The bill authorizes the state auditor to audit purchases of goods or services by an institution or by a component of an institution that purchases goods and services. The bill sets forth that the provisions for the acquisition of goods and services do not apply to The University of Texas Medical Branch at Galveston (UTMB) or a public junior college (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 repeals Government Code provisions relating to the delegation of purchasing authority to an institution of higher education, group purchasing programs, and purchases from higher education research funds (SECTION 1.05). 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 hospital or clinic of a medical and dental unit of the university system. After September 15, 2005 the governing board of an institution of higher education is authorized to adopt a leave policy for employees of the institution. The bill sets forth the provisions a comprehensive leave policy must address (Sec. 51.961, Education Code). An institution is authorized 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, Education Code). 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, Education Code). 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 and the person has been retired for at least one calendar year before the effective date of the employment. 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 (Sec. 51.964, Education Code). 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, Education Code). 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, Government Code). 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, Government Code). 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, Government Code). 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, Education Code). The bill provides that no interest accrues or may be paid on a payment for goods and services if the total amount of the interest that would otherwise have accrued is equal to or less than $5 and the payment is made from the institutional funds of an institution (Sec. 2251.026, Government Code). 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. The bill provides that these provisions do not limit the authority of the state auditor to request and receive information directly from the institution (Secs. 2166.101 and 2167.005, Government Code). The bill provides that a university system or an institution is not required to make a strategic plan for its operations (Sec. 2056.001, Government Code). 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 but prohibits an institution from charging a fee that exceeds the amount charged by the issuer of the credit card in connection with the payment to the institution. The bill requires the institution, before accepting a payment by credit card, to notify the student of any fee to be charged to the student in connection with the payment (Sec. 54.5011, Education Code). The bill removes the provision requiring the governing board of an institution to prorate a student fee charged for a summer session of nine weeks or less (Sec. 54.010, Education Code). EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 1545 modifies the original to authorize the state auditor to audit purchases of goods or services by a component of an institution of higher education (institution) that purchases goods and services and to set forth that the provisions for the acquisition of goods and services do not apply to UTMB or a public junior college (Sec. 51.9335, Education Code). The substitute provides that an institution is authorized to employ an individual who has retired under a state retirement system if the person has been retired for at least one calendar year before the effective date of the employment. The substitute removes the prohibition against such an individual receiving retirement benefits if employed on a greater than one-half time basis (Sec. 51.964, Education Code). The substitute modifies the original to provide that the authority of the state auditor to request and receive construction and maintenance information directly from the institution of higher education is not limited (Secs. 2166.101, Government Code). The substitute modifies the original to prohibit an institution from charging excessive fees in connection with payments by credit card to the institution and sets forth requirements for student notification of fees being charged (Sec. 54.5011, Education Code). The substitute modifies the original to remove provisions authorizing the governing board of an institution to exempt full-time employees of the institution from the payment of all or a portion of tuition and fees (Sec. 54.220, Education Code). The substitute modifies the original to remove provisions relating to the refund of tuition and fees on a pro rata basis to a student for courses from which a student drops (Sec. 54.006, Education Code). The substitute modifies the original to remove provisions authorizing an institution to set the amount of a waiver or exemption on a pro rata basis when determining the amount of a fee or tuition waiver for a student (Sec. 54.202, Education Code). The substitute removes provisions authorizing the governing board of an institution to retain control of tuition and laboratory and special course fees collected at the institution (51.002, Education Code). The substitute also removes provisions providing that the governing board of an institution is not required to deposit tuition or such fees in the state treasury (Sec. 51.008, Education Code). The substitute removes provisions increasing the maximum general property deposit to $50 for each student (Sec. 54.502, Education Code). The substitute modifies the original to provide that the governing board of a university system is authorized the adopt a comprehensive leave policy only for employers in a hospital or clinic of a medical and dental unit of the system. The substitute authorizes the governing board of an institution to adopt a leave policy for the employees of the institution on or after September 15, 2005 (Sec. 51.961, Education Code).