Bill Text: TX HB458 | 2015-2016 | 84th Legislature | Introduced

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Bill Title: Relating to the governance of public institutions of higher education in this state.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-02-11 - Referred to Higher Education [HB458 Detail]

Download: Texas-2015-HB458-Introduced.html

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84R1202 KEL-D
By: Flynn H.B. No. 458

A BILL TO BE ENTITLED
AN ACT
relating to the governance of public institutions of higher
education in this state.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 51.352, Education Code, is amended by
amending Subsections (a), (b), (d), and (e) and adding Subsections
(a-1), (a-2), (a-3), (a-4), and (a-5) to read as follows:
(a) It is the policy of this state that the governing boards
of institutions of higher education, being composed of lay members,
shall exercise the traditional and time-honored role for such
boards as their role has evolved in the United States and shall
constitute the keystone of the governance structure. In this
regard each governing board shall:
(1) [is expected to] preserve institutional
independence and [to] defend each institution's [its] right to
manage its own affairs through its chosen administrators and
employees;
(2) [shall] enhance the public image of each
institution under its governance;
(3) [shall] interpret the community to the campus and
interpret the campus to the community;
(4) [shall] nurture each institution under its
governance to the end that each institution achieves its full
potential within its role and mission; [and]
(5) [shall] insist on clarity of focus and mission of
each institution under its governance;
(6) develop a balanced governing structure designed to
promote institutional integrity, autonomy, and flexibility of
operations while maintaining maximum operating efficiency and
academic excellence; and
(7) govern institutions with the spirit of integrity
in all matters, including operating collaboratively with all
parties in an open and honest manner.
(a-1) The governing board of an institution of higher
education shall protect each institution under its governance from
undue external influence and ensure that the powers and duties of
the board are not controlled by a minority of its members or by
organizations or interests that are separate from the board in any
manner, including through delegation, tradition, or inaction.
(a-2) The members of the governing board of an institution
of higher education must remain free from any contractual,
employment, personal financial, or familial financial interest in
the institution or institutions under its governance. This
subsection does not affect the application of other laws regarding
conflicts of interest to the members.
(a-3) Each report, recommendation, or vote of the governing
board of an institution of higher education or of a committee,
subcommittee, task force, or similar entity reporting to the
governing board must be made available to the public on the board's
Internet website not later than the end of the next business day
after the date of the report, recommendation, or vote.
(a-4) A member of the governing board of an institution of
higher education is prohibited from voting on a budgetary or
personnel matter related to system administration or institutions
of higher education until the member attends a training program
that provides instruction in ethics, conflict-of-interest law, and
the role of a governing board in a higher education institution or
system and that is conducted by the Texas Higher Education
Coordinating Board, by the system office of a university system, or
by the office of a governing board that does not govern a university
system. A governing board is responsible for maintaining records
of each of its members' attendance of a training program described
by this subsection.
(a-5) The governing board of a university system may
terminate the employment of an institution's president or other
chief executive officer only after receiving a recommendation to
that effect under Section 51.353(b)(7), but the board is not
required to act on that recommendation.
(b) The governing board of an institution of higher
education shall provide long-term [the] policy direction for each
institution of higher education under its governance [management
and control].
(d) Notwithstanding [In addition to] powers and duties
specifically granted by this code or other law, each governing
board shall:
(1) after coordinating with the president or other
chief executive officer of the institution and, if applicable, the
chancellor or other chief executive officer of the university
system and after consulting with the institution's faculty,
establish and publish, for each institution under its governance,
long-term [control and management,] goals consistent with the role
and mission of the institution;
(2) review and, as necessary, revise those goals at
least once during each six-year period;
(3) appoint the chancellor or other chief executive
officer of the system, if the board governs a university system;
(4) [(3)] appoint the president or other chief
executive officer of each institution under the board's governance
[control and management and evaluate the chief executive officer of
each component institution and assist the officer in the
achievement of performance goals];
(5) to the extent practicable and to ensure maximum
operating efficiency, direct that communications between the
governing board of a university system or individual members of
that board and the employees of an institution under its governance
be conducted through the system;
(6) after consulting with the institution's faculty
and administration, [(4)] set campus admission standards
consistent with the role and mission of the institution and
considering the admission standards of similar institutions
nationwide having a similar role and mission, as determined by the
coordinating board;
(7) to the extent practicable, develop and implement
policies and procedures that allow the faculty, staff, and students
at any institution under the board's governance to be engaged in and
informed of meetings of the board or of a committee, subcommittee,
task force, or other similar entity reporting to the board; and
(8) [(5)] ensure that its formal position on matters
of importance to the institutions under its governance is made
clear to the coordinating board when those [such] matters are under
consideration by the coordinating board.
(e) Each member of a governing board has the legal
responsibilities of a fiduciary in the management of funds under
the control of institutions subject to the board's governance
[control and management].
SECTION 2. Section 51.353(b), Education Code, is amended to
read as follows:
(b) In addition to other powers and duties provided by this
code or other law, each system administration shall:
(1) initiate, monitor, approve, and coordinate
long-range planning for the system consistent with the goals
established under Section 51.352(d)(1);
(2) approve short-range institutional plans for
operations and expenditures;
(3) provide to component institutions technical
assistance such as legal and financial services;
(4) evaluate each component institution and assist the
institution in the achievement of performance goals; [and]
(5) perform such other duties as may be delegated to
the system administration [it] by the governing board of the [its]
system;
(6) in consultation with the governing board of the
system, evaluate the president or other chief executive officer of
each component institution and assist the officer in the
development and achievement of performance goals; and
(7) if necessary based on the president's or officer's
performance, recommend to the governing board the termination of
employment of an institution's president or other chief executive
officer.
SECTION 3. Subchapter G, Chapter 51, Education Code, is
amended by adding Section 51.3545 to read as follows:
Sec. 51.3545. EFFECT OF SUBCHAPTER; RELATIONSHIP OF BOARD
TO INSTITUTIONS. (a) Sections 51.352, 51.353, and 51.354 control
over any specific provision regarding the powers and duties of a
governing board of an institution of higher education provided by
Subtitle C, D, E, F, or G, and any similar provision to the contrary
in any of those subtitles has no effect.
(b) The governing board of an institution of higher
education may not unreasonably or unduly interfere with the
day-to-day operations of the institutions under its governance.
SECTION 4. Sections 61.084(a) and (d), Education Code, are
amended to read as follows:
(a) The board by rule shall establish a training program for
members of the governing boards of institutions of higher
education. Each member of a governing board of an institution of
higher education shall attend, during the member's first year [two
years] of service as a member of a governing board of an institution
of higher education, a [at least one] training program under this
section. A member of a governing board who is required to attend a
training program under this section may attend additional training
programs under this section.
(d) The content of the instruction at the training program
shall focus on the official role and duties of the members of
governing boards and shall provide training in the areas of
budgeting, policy development, ethics, and governance. Topics
covered by the training program must [may] include:
(1) auditing procedures and recent audits of
institutions of higher education;
(2) the enabling legislation that creates
institutions of higher education;
(3) the role of the governing board at institutions of
higher education and the relationship between the governing board
and an institution's administration, faculty and staff, and
students;
(4) the mission statements of institutions of higher
education;
(5) disciplinary and investigative authority of the
governing board;
(6) the requirements of the open meetings law, Chapter
551, Government Code, and the open records law, Chapter 552,
Government Code;
(7) the requirements of conflict of interest laws and
other laws relating to public officials;
(8) any applicable ethics policies adopted by
institutions of higher education or the Texas Ethics Commission;
(9) the requirements of laws relating to the
protection of student information under the Family Educational
Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g) or any
other federal or state law relating to the privacy of student
information; and
(10) [(9)] any other topic relating to higher
education the board considers important.
SECTION 5. (a) Section 103.03, Education Code, is amended
to read as follows:
Sec. 103.03. BOARD MEMBERS: APPOINTMENT, TERMS, OATH.
Members of the board shall be appointed by the governor and
confirmed by the senate. Members hold office for staggered terms of
six years, with the terms of three members expiring on February 1 of
each odd-numbered year. Any vacancy that occurs on the board shall
be filled for the unexpired term by appointment of the governor.
Each member of the board shall take the constitutional oath of
office.
(b) The change in law made by this section does not apply to
a member of the board of regents of Midwestern State University who
is serving all or part of a full term of office that begins before
September 1, 2015. To implement the change in law made by this
section to Section 103.03, Education Code, the terms of office of
members of the board that begin in 2016 expire on February 1, 2021,
the terms of office of members of the board that begin in 2018
expire on February 1, 2023, and the terms of office of members of
the board that begin in 2020 expire on February 1, 2025.
SECTION 6. (a) Section 105.052, Education Code, is amended
to read as follows:
Sec. 105.052. TERM OF OFFICE; REMOVAL; VACANCY. The term of
office of each regent is six years, with the terms of three regents
expiring on February 1 of each odd-numbered year [every two years].
Members of the board may be removed from office for inefficiency or
malfeasance of office. Any vacancy that occurs on the board shall
be filled by the governor for the unexpired term.
(b) The change in law made by this section does not apply to
a member of the board of regents of the University of North Texas
System who is serving all or part of a full term of office that
begins before September 1, 2015. To implement the change in law
made by this section to Section 105.052, Education Code, the terms
of office of members of the board that begin in 2017 expire on
February 1, 2023, the terms of office of members of the board that
begin in 2019 expire on February 1, 2025, and the terms of office of
members of the board that begin in 2021 expire on February 1, 2027.
SECTION 7. (a) Section 111.12, Education Code, is amended
to read as follows:
Sec. 111.12. APPOINTMENTS TO BOARD; TERMS. Members of the
board are appointed by the governor with the advice and consent of
the senate. The term of office of each regent shall be six years,
with the terms of three regents expiring on February 1 of each
odd-numbered year [except that in making the first appointments the
governor shall appoint three members for six years, three members
for four years, and three members for two years]. Any vacancy that
occurs on the board shall be filled for the unexpired term by
appointment of the governor.
(b) The change in law made by this section does not apply to
a member of the board of regents of the University of Houston System
who is serving all or part of a full term of office that begins
before August 31, 2015. To implement the change in law made by this
section to Section 111.12, Education Code, the terms of office of
members of the board that begin in 2015 expire on February 1, 2021,
the terms of office of members of the board that begin in 2017
expire on February 1, 2023, and the terms of office of members of
the board that begin in 2019 expire on February 1, 2025.
SECTION 8. 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 August 31, 2015.