HBA-LJP S.B. 353 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 353
By: Ellis, Rodney
Higher Education
4/17/2001
Engrossed



BACKGROUND AND PURPOSE 

Explosive job growth has left Texas unable to keep up with the rising
demand for skilled technology workers.  According to a 1998 report of the
Governors Science and Technology Council, Texas currently has between
26,000 and 34,000 technology-related job vacancies.  Senate Bill 353
establishes the Texas Engineering and Technical Consortium to increase the
number of engineering and computer science graduates from private and
public Texas institutions of higher education and to increase collaborative
efforts between universities, engineering and computer science departments,
and private technology companies. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Higher Education Coordinating
Board in SECTION 1 (Section 51.835, Education Code) of this bill. 

ANALYSIS

Senate Bill 353 amends the Education Code to establish programs under the
Texas Engineering and Technical Consortium (consortium) to increase the
number of engineering and computer science graduates from Texas
institutions of higher education and to increase the collaborative efforts
between private companies in Texas and appropriate entities of higher
education (Sec. 51.831). 

The bill authorizes eligible institutions of engineering and computer
science and certain private companies to establish and administer the
consortium as a resource-sharing program operated within an eligible
institution to fulfill specified goals and duties.  The bill also provides
that at the end of a prescribed period, the consortium may transfer its
administrative functions to another eligible institution participating in
the consortium (Sec. 51.833).  The bill requires the consortium to transfer
all stipulated money that the consortium is authorized to solicit and
accept, except money retained to administer the consortium, to the
comptroller of public accounts for deposit in the technology workforce
development account.  Money in the account may only be appropriated for the
purpose of awarding a consortium-related grant.  The bill requires the
Texas Higher Education Coordinating Board (THECB) to administer the account
and adopt any rules necessary for its administration (Sec. 51.835). 

The bill authorizes the legislature to appropriate money from the
undedicated portion of the general revenue fund for the purpose of awarding
consortium-related grants, and sets forth provisions for the minimum amount
of the appropriation (Sec. 51.836).  The bill requires THECB to use the
appropriated money to award grants on a competitive, peer-review basis to
eligible engineering and computer science institutions, and to eligible
private or independent engineering institutions to fund certain programs
and goals.  The bill authorizes THECB to award grants only to fund a new
project or activity or the expansion or enhancement of an existing project
or activity and prohibits THECB from awarding a grant to replace current
funding for an existing project or activity.  To receive a grant, the bill
provides that an eligible private or independent institution must match the
amount of the grant with an equal amount of contributions made by that
institution for the project or activity for which the grant is awarded
(Sec. 51.837). 

The bill requires the consortium to appoint an advisory committee that is
subject to provisions for state  agency advisory committees and that
includes a representative from each consortium participant (Sec. 51.834). 

The bill also requires THECB to appoint an advisory committee to advise
THECB on consortium-related grants and to appoint an advisory committee to
evaluate the effectiveness of the grant program.  The bill sets forth
provisions for the composition and regulation of the committees.  The bill
also requires the grant program evaluation committee to report the results
of its evaluation, including an evaluation of the level of participation in
the grant program by eligible private or independent engineering
institutions, to THECB not later than September 1 of each even-numbered
year.  The bill further requires THECB to report the evaluation results to
the governor, consortium participants, and the legislature no later than
October 31 of each even-numbered year (Secs. 51.838 and 51.840). 

The bill requires an eligible institution of higher education that is
awarded a consortium-related grant to submit a report regarding the use of
the grant, not later than September 1 of each year, to THECB. The bill
requires THECB to provide the governor, the legislature and the consortium
participants with a report consolidated from all of the institution reports
not later than October 31 of each year (Sec. 51.839). 

EFFECTIVE DATE

September 1, 2001.