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A BILL TO BE ENTITLED
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AN ACT
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relating to the governance of public institutions of higher |
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education in this state. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 51.352, Education Code, is amended by |
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amending Subsections (a), (b), (d), and (e) and adding Subsections |
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(a-1), (a-2), (a-3), (a-4), and (a-5) to read as follows: |
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(a) It is the policy of this state that the governing boards |
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of institutions of higher education, being composed of lay members, |
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shall exercise the traditional and time-honored role for such |
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boards as their role has evolved in the United States and shall |
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constitute the keystone of the governance structure. In this |
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regard each governing board shall: |
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(1) [is expected to] preserve institutional |
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independence and [to] defend each institution's [its] right to |
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manage its own affairs through its chosen administrators and |
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employees; |
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(2) [shall] enhance the public image of each |
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institution under its governance; |
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(3) [shall] interpret the community to the campus and |
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interpret the campus to the community; |
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(4) [shall] nurture each institution under its |
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governance to the end that each institution achieves its full |
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potential within its role and mission; [and] |
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(5) [shall] insist on clarity of focus and mission of |
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each institution under its governance; |
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(6) develop a balanced governing structure designed to |
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promote institutional integrity, autonomy, and flexibility of |
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operations while maintaining maximum operating efficiency and |
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academic excellence; and |
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(7) govern institutions with the spirit of integrity |
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in all matters, including operating collaboratively with all |
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parties in an open and honest manner. |
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(a-1) The governing board of an institution of higher |
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education shall protect each institution under its governance from |
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undue external influence and ensure that the powers and duties of |
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the board are not controlled by a minority of its members or by |
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organizations or interests that are separate from the board in any |
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manner, including through delegation, tradition, or inaction. |
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(a-2) The members of the governing board of an institution |
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of higher education must remain free from any contractual, |
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employment, or personal or familial financial interest in the |
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institution or institutions under its governance. This subsection |
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does not affect the application of other laws regarding conflicts |
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of interest to the members. |
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(a-3) Each report, recommendation, or vote of the governing |
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board of an institution of higher education or of a committee, |
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subcommittee, task force, or similar entity reporting to the |
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governing board must be made available to the public on the board's |
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Internet website not later than the end of the next business day |
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after the date of the report, recommendation, or vote. |
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(a-4) A member of the governing board of an institution of |
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higher education who has not yet attended a training program that |
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includes instruction in ethics, conflict-of-interest law, and the |
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role of governing boards in a higher education system is prohibited |
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from voting on a budgetary or personnel matter related to system |
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administration or institutions of higher education. The governing |
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board is responsible for maintaining records of training attended |
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as described by this subsection. For purposes of this subsection, a |
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university system may establish for members of the governing board |
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of the system a training program that includes all the elements of |
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instruction described by this subsection. |
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(a-5) The governing board of a university system may |
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terminate the employment of an institution's president or other |
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chief executive officer only after receiving a recommendation to |
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that effect under Section 51.353(b)(7), but the board is not |
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required to act on that recommendation. |
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(b) The governing board of an institution of higher |
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education shall provide long-term [the] policy direction for each |
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institution of higher education under its governance [management
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and control]. |
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(d) Notwithstanding [In addition to] powers and duties |
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specifically granted by this code or other law, each governing |
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board shall: |
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(1) after coordinating with the institution's |
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president or other chief executive officer of the institution and |
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consulting with the institution's faculty, establish and publish, |
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for each institution under its governance, long-term [control and
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management,] goals consistent with the role and mission of the |
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institution; |
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(2) review and, as necessary, revise those goals at |
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least once during each six-year period; |
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(3) appoint the chancellor or other chief executive |
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officer of the system, if the board governs a university system; |
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(4) [(3)] appoint the president or other chief |
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executive officer of each institution under the board's governance |
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[control and management and evaluate the chief executive officer of
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each component institution and assist the officer in the
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achievement of performance goals]; |
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(5) to the extent practicable and to ensure maximum |
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operating efficiency, direct that communications between the board |
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of a university system or members of the board and the employees of |
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an institution under its governance be conducted through the |
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system; |
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(6) direct that, to the extent practicable, the board |
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of a university system or members of the board use only official |
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electronic communication accounts when conducting official |
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business of the system through electronic communications; |
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(7) after consulting with the institution's faculty |
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and administration, [(4)] set campus admission standards |
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consistent with the role and mission of the institution and |
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considering the admission standards of similar institutions |
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nationwide having a similar role and mission, as determined by the |
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coordinating board; |
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(8) to the extent practicable, develop and implement |
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policies and procedures that allow the faculty, staff, and students |
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at any institution under the board's governance to be engaged in and |
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informed of meetings of the board or of a committee, subcommittee, |
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task force, or other similar entity reporting to the board; and |
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(9) [(5)] ensure that its formal position on matters |
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of importance to the institutions under its governance is made |
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clear to the coordinating board when those [such] matters are under |
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consideration by the coordinating board. |
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(e) Each member of a governing board has the legal |
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responsibilities of a fiduciary in the management of funds under |
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the control of institutions subject to the board's governance |
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[control and management]. |
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SECTION 2. Section 51.353(b), Education Code, is amended to |
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read as follows: |
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(b) In addition to other powers and duties provided by this |
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code or other law, each system administration shall: |
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(1) initiate, monitor, approve, and coordinate |
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long-range planning for the system consistent with the goals |
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established under Section 51.352(d)(1); |
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(2) approve short-range institutional plans for |
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operations and expenditures; |
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(3) provide to component institutions technical |
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assistance such as legal and financial services; |
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(4) evaluate each component institution and assist the |
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institution in the achievement of performance goals; [and] |
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(5) perform such other duties as may be delegated to |
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the system administration [it] by the governing board of the [its] |
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system; |
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(6) in consultation with the governing board of the |
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system, evaluate the president or other chief executive officer of |
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each component institution and assist the officer in the |
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development and achievement of performance goals; and |
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(7) if necessary based on the president's or officer's |
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performance, recommend to the governing board the termination of |
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employment of an institution's president or other chief executive |
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officer. |
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SECTION 3. Subchapter G, Chapter 51, Education Code, is |
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amended by adding Section 51.3545 to read as follows: |
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Sec. 51.3545. EFFECT OF SUBCHAPTER; RELATIONSHIP OF BOARD |
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TO INSTITUTIONS. (a) Sections 51.352, 51.353, and 51.354 control |
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over any specific provision regarding the powers and duties of a |
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governing board of an institution of higher education provided by |
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Subtitle C, D, E, F, or G, and any similar provision to the contrary |
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in any of those subtitles has no effect. |
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(b) The governing board of an institution of higher |
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education may not unreasonably or unduly interfere with the |
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day-to-day operations of the institutions under its governance. |
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SECTION 4. Section 51.355(c), Education Code, is amended to |
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read as follows: |
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(c) Except as provided by Subsection (f), not later than |
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November 1 of each year, the student government of each general |
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academic teaching institution and medical and dental unit in a |
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university system shall solicit applicants for appointment to the |
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next regular term of the position of student regent. Not later than |
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January 1, from among the applications received by the student |
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government, the student government shall select five applicants as |
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the student government's recommendations for the position of |
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student regent and send the applications of those applicants to the |
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chancellor of the university system. From among those applicants, |
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the chancellor shall select two or more applicants as the |
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university system's recommendations for the position of student |
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regent and shall send the applications of those applicants to the |
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governor not later than February 1. The governor may request to |
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review all applications for the position of student regent received |
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by the student governments and may request an applicant to submit |
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additional information to the governor. On June 1, or as soon |
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thereafter as practicable, the governor shall appoint one of the |
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applicants to serve as the student regent for the system for a |
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one-year term expiring on the next May 31. The governor is not |
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required to appoint an applicant recommended by the chancellor, but |
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may not appoint a student regent who did not submit an application |
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to the student government of a general academic teaching |
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institution or medical and dental unit in the system as described by |
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this subsection. |
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SECTION 5. Section 51.356(d), Education Code, is amended to |
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read as follows: |
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(d) Not later than November 1 of each year, the student |
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government of the general academic teaching institution shall |
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solicit applicants for appointment to the next regular term of the |
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position of student regent. Not later than January 1, from among |
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the applications received by the student government, the student |
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government shall select five applicants as the student government's |
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recommendations for the position of student regent and send the |
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applications of those applicants to the president of the |
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institution. From among those applicants, the president shall |
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select two or more applicants as the institution's recommendations |
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for the position of student regent and shall send the applications |
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of those applicants to the governor not later than February 1. The |
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governor may request to review all applications for the position of |
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student regent received by the student government and may request |
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an applicant to submit additional information to the governor. On |
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June 1, or as soon thereafter as practicable, the governor shall |
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appoint one of the applicants to serve as the student regent for the |
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institution for a one-year term expiring on the next May 31. The |
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governor is not required to appoint an applicant recommended by the |
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president, but may not appoint a student regent who did not submit |
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an application to the student government of the institution as |
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described by this subsection. |
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SECTION 6. Sections 61.084(a) and (d), Education Code, are |
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amended to read as follows: |
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(a) The board by rule shall establish a training program for |
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members of the governing boards of institutions of higher |
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education. Each member of a governing board of an institution of |
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higher education shall attend, during the member's first year [two
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years] of service as a member of a governing board of an institution |
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of higher education, a [at least one] training program under this |
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section. A member of a governing board who is required to attend a |
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training program under this section may attend additional training |
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programs under this section. |
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(d) The content of the instruction at the training program |
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shall focus on the official role and duties of the members of |
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governing boards and shall provide training in the areas of |
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budgeting, policy development, ethics, and governance. Topics |
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covered by the training program must [may] include: |
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(1) auditing procedures and recent audits of |
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institutions of higher education; |
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(2) the enabling legislation that creates |
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institutions of higher education; |
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(3) the role of the governing board at institutions of |
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higher education and the relationship between the governing board |
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and an institution's administration, faculty and staff, and |
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students; |
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(4) the mission statements of institutions of higher |
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education; |
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(5) disciplinary and investigative authority of the |
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governing board; |
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(6) the requirements of the open meetings law, Chapter |
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551, Government Code, and the open records law, Chapter 552, |
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Government Code; |
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(7) the requirements of conflict of interest laws and |
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other laws relating to public officials; |
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(8) any applicable ethics policies adopted by |
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institutions of higher education or the Texas Ethics Commission; |
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(9) the requirements of laws relating to the |
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protection of student information under the Family Educational |
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Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g) or any |
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other federal or state law relating to the privacy of student |
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information; and |
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(10) [(9)] any other topic relating to higher |
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education the board considers important. |
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SECTION 7. Sections 51.355(c) and 51.356(d), Education |
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Code, as amended by this Act, are intended only to clarify existing |
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law with respect to the appointment of student members of the board |
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of regents of a state university or state university system. |
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SECTION 8. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |