BILL ANALYSIS


                                                        H.B. 2247
                                                 By: Black (Sims)
                                                          Finance
                                                         05-25-95
                              Senate Committee Report (Unamended)
BACKGROUND

In 1989, the 71st Legislature passed H.B. 2853 which created
Central Texas University.  This law combined the American
Educational Complex, a public junior college, and American
Technical University, a private upper-level institution, into one
four-year coeducational institution of higher education.

PURPOSE

As proposed, H.B. 2247 transfer the governance of the University of
Central Texas to the board of regents of the Texas A&M University
System.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to board of regents of the Texas A&M University System under
SECTIONS 2 (c) and 8 (Sec.87.602(a), Education Code).

SECTION BY SECTION ANALYSIS

SECTION 1. TRANSFER OF GOVERNANCE.  Transfers the management and
governance from the board of regents (board) of the University of
Central Texas (university) to the board of the Texas A&M University
System (system).  Provides that the transfer is effective September
1, 1996 if the board of the university and board of the system
agree to the transfer and the Texas Higher Education Coordinating
Board (coordinating board) approves the transfer.  Requires the
institution to be known as Texas A&M University--Central Texas
(institution) when the transfer takes effect.

SECTION 2. POWERS AND DUTIES; RULES AND POLICIES.  (a)  Requires
the board of the system to undertake to govern, operate, manage,
and control the institution.  

     (b)  Authorizes the institution to continue to award degrees
     identical to the ones under the university.
     
     (c)  Provides that rules and policies adopted by the
     university still apply until adopted, repealed, or superseded
     by the board of the system.  Authorizes the board of the
     system to adopt new rules.
      
SECTION 3. CONTRACTS AND WRITTEN OBLIGATIONS.  Ratifies, confirms,
and validates contracts and written obligations of every kind and
character entered into by the board of the university.

SECTION 4. EFFECT OF TRANSFER ON EMPLOYEES.  Provides that the
transfer of the university to the system will not affect the status
or benefits of university employees.

SECTION 5. CURRENT FUNDING.  Transfers all funds for the benefit
of the university for the use and benefit of the institution.

SECTION 6. EFFECT OF TRANSFER ON STUDENTS.  Provides that the
transfer of the university to the system does not affect the credit
hours earned before the effective date of this Act.

SECTION 7. LEGISLATIVE INTENT.  Provides that the legislature's
intent is to transfer governance of the university to the system. 
Provides that this Act does not create an institution entitled to
certain funds.  Provides that the institution is not eligible to
receive funds from the Higher Education Assistance Fund on and
after the effective date of the transfer.

SECTION 8. AMENDMENT.  Amends Chapter 87, Education Code, effective
September 1, 1996, by adding Subchapter G, as follows:

        SUBCHAPTER G.  TEXAS A&M UNIVERSITY--CENTRAL TEXAS

     Sec.  87.601.  TEXAS A&M UNIVERSITY--CENTRAL TEXAS.  (a) 
     Provides that the institution is a coeducational upper-level
     educational institution located in the city of Killeen. 
     Provides that the institution is a component institution of
     the system and is under the management and control of the
     board of the system.
     
     (b)  Provides that the board has the same powers and duties
       concerning the institution as are conferred on the board by
       law concerning Texas A&M University.
       
       (c)  Authorizes the institution to accept only junior,
       senior, and graduate-level students.
       
       
     Sec.  87.602.  POWERS OF BOARD.  (a)  Sets forth the powers of
     the board.
     
     (b)  Requires the salary of a person who receives a joint
       appointment under Subsection (a)(4) to be apportioned among
       the institutions to which the individual is appointed on the
       basis of the services rendered.
       
       SECTION 9.   Emergency clause.
           Effective date:  upon passage.