BILL ANALYSIS C.S.H.B. 2495 By: Harris April 17, 1995 Committee Report (Substituted) BACKGROUND The Baylor College of Dentistry, founded in 1905, is an independent free-standing college of dentistry. Since 1971, and upon the approval of the Legislature, the College has been under contract through the Texas Higher Education Coordinating Board to the State of Texas for the education of Texas resident dental students. Following the College's Strategic Plan in 1992, it was determined that to fulfill the College's mission and goals to the citizens of Texas in the twenty-first century, consideration should be given to affiliating the College with a public university system, rather than remain the nation's only private, independent dental college. After a year of careful considerations of various alternatives and the merits of a public university affiliation, the Baylor College of Dentistry Board of Trustees voted on January 20, 1995 to seek a merger with The Texas A&M University System. On January 27, 1995 The Board of Regents of the Texas A&M University System likewise voted to seek the merger of the College into the Texas A&M University System. The academic synergies with The Texas A&M University System will be beneficial to the College, The Texas A&M University System, and the citizens of Texas. The Texas A&M University System's commitment to rural health care, consistent with the nature of the land grant mission of that System, along with the College's renewed commitment to a more extensive rural outreach will enhance health promotion, disease prevention, continuing education for practicing dentists and clinical care activities with Texas rural citizens. This emphasis would compliment the College's already significant programs aimed at serving the urban undeserved population. The net result will assist the state in improving the health of its citizens. Additionally, research activities of the college will be enhanced by the numerous collaborations the Texas A&M University System offers, further improving the oral health of Texas citizens. PURPOSE As proposed, C.S.H.B. 2495 transfers the Baylor College of Dentistry to the Texas A&M University System. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted o the board of regents of the Texas A&M University System under SECTIONS 2 (c) and 8 (Sec. 87.802(6), Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. TRANSFER OF GOVERNANCE. Transfers the Baylor College of Dentistry (college), a Texas nonprofit corporation, including the organization, control, management, and property of that institution, to the board of regents (regents) of the Texas A&M University System (system) if the board of trustees (board) of the Baylor College of Dentistry and the regents of the system agree to the transfer by August 31, 1996. Provides that the transfer is effective September 1, 1996, and is governed by Sections 2 through 7 of this Act if the boards agree to the transfer in the time provided. Requires the institution to be known as the Texas A&M University System--Baylor College of Dentistry (system-college). SECTION 2. POWERS AND DUTIES; RULES AND POLICES. (a) Requires the regents of the system to undertake to govern, operate, manage, and control the college and all land, buildings, facilities, improvements, equipment, supplies, and property belonging to and comprising that institution under the powers, duties, and responsibilities conferred by law on the board of the system for the governance, operation, management, and control of component institutions comprising that system. (b) Authorizes the system-college to continue to award degrees in the same disciplines and of the same academic standing as the college. Provides that new programs at the institution are subject to the approval process applicable to other state-supported dental schools. (c) Provides that rules and policies adopted by the board of the college to govern that institution that are in effect when the transfer takes effect are continued in effect until adopted, repealed, or superseded by the regents of the system. Authorizes the regents to adopt rules and policies applicable to the system-college in anticipation of the transfer authorized by the Act. SECTION 3. CONTRACTS AND WRITTEN OBLIGATIONS. Provides that contracts and written obligations of every kind and character entered into by the board of the college for and on behalf of the college are ratified, confirmed, and validated. Provides that the regents of the system are substituted for and stand and act in the place of the board of the college to the extent permitted by law. SECTION 4. EFFECT OF TRANSFER ON EMPLOYEES. Requires a person who is an employee of the college as of the effective date of the transfer to be treated the same as any other new employee of the system except that each employee shall be given credit for all prior years of service at the college for the purpose of annual leave accrual rates as state employees. SECTION 5. CURRENT FUNDING. Transfers all funds that, on the effective date of the transfer, have been dedicated to or are held for the use and benefit of the college under the governance of the board to the regents of the system for the use and benefit of the system-college. SECTION 6. EFFECT OF TRANSFER ON STUDENTS. Provides that the transfer of governance, operation, management and control of the system-college to the regents of the system does not affect the credit hours earned by students at the college before the effective date of this Act. SECTION 7. LEGISLATIVE INTENT. Provides that it is the intent of the legislature that the effect of this Act is to transfer governance of the existing college from the board of the nonprofit corporation to the regents of the system. Provides that this Act does not serve to create an institution of higher education entitled to funds under Sections 17 or 18, Article VII, Texas Constitution. SECTION 8. Amends Chapter 87, Education Code, by adding Subchapter I, as follows: SUBCHAPTER I. THE TEXAS A&M UNIVERSITY SYSTEM-BAYLOR COLLEGE OF DENTISTRY Sec. 87.801. THE TEXAS A&M UNIVERSITY SYSTEM-BAYLOR COLLEGE OF DENTISTRY. (a) Provides that the system-college is a component institution of the system under the management and control of the regents of the system. (b) Provides that the regents have the same powers and duties concerning the system-college as are conferred by law concerning Texas A&M University. Sec. 87.802. POWERS OF BOARD. (a) Authorizes the regents to provide for the training and teaching of students seeking to become dentists, dental hygienists, or other technicians who provide services related to the practice of dentistry; prescribe courses leading to degrees customarily offered in other leading U.S. dental schools; award the degrees described by Subdivision (2); enter into an affiliation or coordinating agreement with an entity if reasonably necessary or desirable for the operation of a first class school of dentistry; make joint appointments in the system-college and another institution within the system; and adopt rules for the operation, control, and management of the college, as necessary for the operation of a first class school of dentistry, including rules governing the number of students that may be admitted to any program at the college. (b) Requires the salary of the person who receives a joint appointment under Subsection (a)(5) 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. COMPARISON OF SUBSTITUTE TO ORIGINAL In C.S.H.B. 2495, the caption is revised to state that the bill relates to the transfer of the Baylor College of Dentistry to The Texas A&M University System. In SECTION 1, the C.S.H.B. 2495 includes that the organization, control, management and property of the Baylor College of Dentistry is transferred to the board of regents of The Texas A&M University System. The original bill specified that all the right, title, and interest of the Baylor College of Dentistry would be transferred to the board of regents of The Texas A&M University System. In SECTION 1, the C.S.H.B. 2495 states that the Baylor College of Dentistry and the Texas A&M University System must agree to this transfer by August 31, 1996 in order for it to be effective by September 1, 1996. In addition, the transfer is governed by Sections 2 - 7 of the bill and the college is referred as the Texas A&M University System-Baylor College of Dentistry. In SECTION 2, the C.S.H.B. 2495 Subsections (b) and (c) are included whereas not in the original bill. Subsection (b) allows the Baylor College of Dentistry to continue to award degrees as before and new degree programs must be approved like any other state-supported dental school. Subsection (c) states that rules and policies of the board of trustees will continue until the board of regents of the Texas A&M University System adopt, change or repeal them. In SECTION 8, Section 87.803 and 87.804 of the C.S.H.B. 2495 are deleted and the text is renumbered under Section 807.802. SUMMARY OF COMMITTEE ACTION H.B. 2495 was considered by the committee in a public hearing on April 11, 1995. The committee considered a complete committee substitute for the bill. The substitute was adopted without objection by a non-record vote. The following persons testified in favor of the bill: Mr. George Bramblott; Mr. Ruben Esquivel; and Mr. Bill Clayton. The bill was reported as substituted, with the recommendation that it do pass and be printed, by a record vote of 7 ayes, 0 nays, 0 pnv, 2 absent.