BILL ANALYSIS



C.S.H.B. 2507
By: Swinford
April 25, 1995
Committee Report (Substituted)


BACKGROUND

During the appropriations hearings for the next biennium, the
subcommittee on education recommended zero funding for Texas State
Technical College-Amarillo.  The Legislative Budget Board's funding
recommendation fell approximately $1.4 million dollars below what
TSTC-Amarillo needed for continuation through the next biennium. 
The need for a technical educational center in Amarillo still
exists. The Appropriations Committee approved in H.B. 1
transitional funding for TSTC-Amarillo to be combined with Amarillo
College.   The students enrolled at TSTC-Amarillo should be allowed
to continue and finish their degree plans.  A lease agreement
between TSTC-Amarillo and Amarillo College would prevent massive
staff layoffs and provide local control of the campus.  


PURPOSE

If enacted, C.S.H.B. 2507 provides for the leasing of TSTC-Amarillo
to Amarillo College.


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.


SECTION BY SECTION ANALYSIS

SECTION 1. DEFINITIONS. "College" and "System" are defined.

SECTION 2. LEASE AND TRANSFER AGREEMENT. (a) The board of regents
of the Texas State Technical College System shall enter into an
agreement with the board of trustees of Amarillo College to lease
to the board of trustees of Amarillo College the Amarillo campus
located in Potter County except the property specifically described
by this section.  (b) The term of the lease shall initially be 20
years and authorized the college to terminate the lease under
certain dates.  (c) The system shall transfer all right, title, and
interest in equipment, supplies, and other personal property used
by the system.  (d) The college shall agree to undertake operation
of all programs operated by or in connection with the campus.  The
college shall operate those programs that have continuing
enrollment through 1995-1996, but may discontinue a program
operated by or in connection with that campus.  (e) The transfer of
employees shall be provided by the agreement, but not all are
required to be retained.

SECTION 3. POWERS AND DUTIES. The board of trustees of the college
may govern, operate, manage, and control the leased campus and all
leased land, buildings, facilities and improvements, and all
transferred personal property.

SECTION 4. APPROPRIATIONS AND FEDERAL FUNDS; BOND REPAYMENT. (a)
The lease and transfer agreement is contingent on certification by
the Texas Public Finance Authority that the legislature has
appropriated for fiscal year ending August 31, 1996.  (b) The
legislature may appropriate money designated for 1995-1996 for the
system's Amarillo College, to the college in support of the lease
and transfer agreement.  (c) Appropriations made to the system for
the programs in the Amarillo campus are transferred to the college
for the programs operated on that campus.  (d) Federal technical-vocational education money shall be transferred to the college for
the benefit of the campus.

SECTION 5.  CONTRACTS AND WRITTEN OBLIGATION; ACCOUNTS PAYABLE. (a)
Every kind of contract or written obligation by the board of
regents of the system on behalf of the Amarillo campus remain the
responsibility of the system.  The board of trustees of the college
is substituted for and stands and acts in the place of the board of
regents of the system.  (b) Bonds issued by the system remain the
obligation of the system.  (c) The system shall transfer all money
applicable to the college prior to the effective date of this
lease.

SECTION 6.     LIABILITIES. (a) Any liability pertaining to the
system's Amarillo campus remains the responsibility of the system. 
(b) Any future liabilities before the effective date of the lease
remain the responsibility of the system.

SECTION 7.     EMPLOYEE INSURANCE AND OTHER BENEFITS. Any contract
that provides coverage for employees is not void nor terminates as
a result of this Act.  Money appropriated for provision of
insurance or benefits to the transferred employees shall be made
available to the college for that purpose.

SECTION 8. EFFECT ON STUDENTS. (a) This Act and the agreement do
not affect credit hours earned by students at the system's Amarillo
campus before the effective date.  (b) The college may collect from
students enrolled in programs on the campus tuition and fees
applicable to similar programs of the system until September 1,
2000.

SECTION 9. Emergency clause.
           Effective date:  not later than September 1, 1995.


COMPARISON OF SUBSTITUTE TO ORIGINAL 

In SECTION 1, the committee substitute adds a new section for
definitions.  The original bill states that the board of regents of
the Texas State Technical College System may enter into an
agreement with the board of trustees of Amarillo College to
transfer to the board of trustees of Amarillo College. 

In SECTION 2, the committee substitute states that the board of
regents of the Texas State Technical College System shall enter
into an agreement with the board of trustees of Amarillo College to
lease to the board of trustees of Amarillo College.  The committee
substitute adds the following language which is not in the original
bill: 

     (1) specifically identifies and describes the property to be
     leased; (2) specifies that an agreement may be entered into
     between TSTC-Amarillo and Amarillo College before July 1,
     1995; (3) specifies the term of the lease to be for 20 years;
     and (4) adds provisions for consideration of the lease and
     transfer and for the transfer of employees.

In SECTION 4, the committee substitute includes the following
language which is not in the original bill:  

     (a) provisions for the transfer agreement to be contingent
     upon the Texas Public Finance Authority certifying that the
     legislature has appropriated funds for the defeasance of the
     Amarillo campus; (b) provisions for the legislature to
     appropriate money to the college for the operation of the
     campus and its programs; (c)  provisions for appropriations
     made to the system to be transferred to the college; and (d)
     provisions for any federal money designated to TSTC-Amarillo
     to be transferred to the college.

In SECTION 5, the committee substitute provides detail regarding
written obligations, contracts and bonds.  It also adds language
which is not in the original bill that requires all money for the
fall quarter, 1995, to be collected prior to the effective date and
be transferred to the college.

In SECTION 6 (b), the committee substitute adds language which is
not in the original bill regarding any future liabilities that
results from contamination or other conditions present at the
Amarillo campus will remain the responsibility of the system.

In SECTION 7, the committee substitute adds new language regarding
the money appropriated to the transferred employees shall be made
available to the college.

In SECTION 8, the committee substitute adds new language which is
not in the original bill.  This act does not affect the credit
hours warned by students at the system and allows the college to
collect tuition and fees and determine residency.  In the original
bill, SECTION 8 on  ENVIRONMENTAL REMEDIATION is deleted.


SUMMARY OF COMMITTEE ACTION

H.B. 2507 was considered by the committee in a formal meeting on
April 20, 1995.

The committee considered a complete substitute.  The substitute was
adopted without objection by a non-record vote.

The bill was reported favorably as substituted, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 7
ayes, 0 nays, 0 pnv, 2 absent.