SENATE HIGHER EDUCATION COMMITTEE
Thursday, March 25, 2010
Capitol Extension, Room E1.012
Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Higher Education Committee was held on Thursday, March 25, 2010, in the Capitol Extension, Room E1.012, at Austin, Texas.
Senator Judith Zaffirini, Chair
Senator Dan Patrick, Vice Chair
Senator Robert Duncan
Senator Royce West
The Chair called the meeting to order at 9:00 a.m. There being a quorum present, the following business was transacted:
The Chair laid out the proposed committee rules for consideration, and Senator Patrick moved their adoption. There being no objection, the motion was adopted by unanimous consent.
The Chair presented former committee member, Senator Kip Averitt, with a gavel and sound block, recognizing his distinguished service to the Senate Higher Education Committee and the State of Texas, 2003-2010.
The Chair invited committee members to introduce their staff. Senator Patrick recognized Marian Wallace, Higher Education Policy Analyst. Senator Duncan recognized Porter Wilson, Chief of Staff.
The Chair introduced committee staff for the 81st Legislative Interim, namely, Gonzalo Serrano, Committee Clerk; Mark Kavanaugh, Policy Analyst; Jonathan Mathers, Policy Analyst; and Ray Martinez, Committee Director, General Counsel, and Chief of Staff.
The Chair recognized members of the extended staff team: from the Lieutenant Governor's office, John Opperman and Caasi Lamb; Governor's office, Kate McGrath, Marisha Negovetich, and David Young; Speaker's office, Andrea Sheridan; and Senate Finance Committee, Daniel Harper.
The Chair explained that the purpose of the hearing was to address Interim Charge Seven: Review endowed funds at institutions of higher education to ensure compliance with all state laws and, in particular, the Uniform Prudent Management of Institutional Funds Act. Study and make recommendations for requiring all institutions of higher education to report annually to donors on the use of gifts and endowed funds. Review state laws to determine if they provide adequate oversight of these funds. Study the manner in which scholarship and other funds are given and bequeathed to institutions of higher education and make recommendations for ensuring that donors' wishes are honored while institutions are allowed appropriate flexibility with the use of the funds.
The following witnesses testified regarding endowed funds at institutions of higher education:
· Overview of Relevant Statutes
o Mary Henderson, Deputy Division Chief, Consumer Protection and Public Health Division, Texas Attorney General's Office
· Development Administrators
o Dr. Randa Safady, Vice Chancellor for External Relations, The University of Texas System
o Rick McKelvey, Vice President for Institutional Advancement, Southwestern University
o Eli Cipriano, Associate Vice Chancellor/Associate Vice President for University Advancement, University of Houston
o Lisa Baronio, Vice President for Advancement, University of North Texas
· Investment Officials
o Jim Brunjes, Vice Chancellor and Chief Financial Officer, Texas Tech University System
o Gregory R. Anderson, Chief Investment Officer and Treasurer, Texas A&M University System
o Joe R. and Dr. Teresa Lozano Long
o John Mobley
The Chair accepted written testimony from Philip Aldridge, Vice Chancellor for Finance and Business Development, The University of Texas System, in lieu of his scheduled oral testimony.
The following witnesses registered but did not testify, Macgregor Stephenson, Assistant Commissioner, Academic Affairs and Research, Texas Higher Education Coordinating Board; Mark Zafereo, Assistant Director, External Relations, Texas Higher Education Coordinating Board.
There being no further business, at 11:17 a.m. Senator Patrick moved that the Committee stand in recess, subject to the call of the Chair. The motion was adopted by unanimous consent, and it was so ordered.
Senator Judith Zaffirini, Chair
Gonzalo Serrano, Clerk