H.B. No. 3291

	AN ACT
	relating to a prohibition against the governing board of a public
	institution of higher education entering into certain contracts
	relating to permanent improvements at the institution.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter T, Chapter 51, Education Code, is
	amended by adding Section 51.785 to read as follows:
	Sec. 51.785.  CERTAIN CONTRACTS PROHIBITED.  The board of an
	institution may not enter into a contract with a person relating to
	a permanent improvement project at the institution under which the
	institution makes contractual payments to the person that are not
	reflected on the institution's financial statement unless the
	board:
	(1)  is specifically authorized to enter into the
	contract by other law; or
	(2)  receives prior approval by the Texas Higher
	Education Coordinating Board.
	SECTION 2.   Section 51.785, Education Code, as added by
	this Act, applies only to a contract entered into on or after the
	effective date of this Act.
	SECTION 3.  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 September 1, 2007.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3291 was passed by the House on May 8,
	2007, by the following vote:  Yeas 146, Nays 0, 2 present, not
	voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3291 was passed by the Senate on May
	23, 2007, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	APPROVED:  _____________________
	Date
	_____________________
	Governor