BILL ANALYSIS S.B. 11 By: Zaffirini Finance 03-09-95 Committee Report (Unamended) BACKGROUND When the University of South Texas System was abolished in 1989, Texas A&M International University (TAMIU) became a part of the A&M University System. At the same time, UT-Brownsville and UT-Pan American joined the University of Texas System. Transferring TAMIU into the UT System would more closely align it with these border institutions and the University of Texas at El Paso. The transfer would also facilitate developing a regional higher education plan for the border region and joint/cooperative programs with the University of Texas Health Science Center at San Antonio, which already collaborates with the UT System institutions to increase needed medical services along the border. PURPOSE As proposed, S.B. 11 transfers the Texas A&M International University from the Texas A&M University System to the University of Texas System and changes name of the university to the University of Texas--International. RULEMAKING AUTHORITY It is the committee's opinion that this bill grant rulemaking authority to board of regents of the University of Texas System in SECTION 14 (Sec. 79.001(d), Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. CHANGE OF NAME. (a) Changes the name of Texas A&M International University (A&M) to the University of Texas-International (UTI). (b) Provides that a reference in law to A&M means UTI. (c) Requires the board of regents (board) of the University of Texas System (UT System) to conform the names of the Center for Border Economic and Enterprise Development (center) and other components or programs operated by or in connection with A&M on the effective date of this Act to reflect the change of the name of that university made by this Act. SECTION 2. TRANSFER. (a) Provides that the governance, operation, management, and control of UTI, formerly A&M, along with all right, title, and interest in the land, buildings, facilities, improvements, equipment, supplies, and property comprising that institution, are transferred from the board of the Texas A&M System (A&M System) to the board of the UT System. (b) Provides that the transfer made by this section includes the center and all other components or programs operated by or in connection with the A&M on the effective date of this Act. SECTION 3. POWERS AND DUTIES. Requires the board of UT System to undertake to govern, operate, manage, and control UTI and all land, buildings, facilities, improvements, equipment, supplies, and property comprising that institution pursuant to the powers, duties, and responsibilities conferred by law on the board of the UT System for the governance, operation, management, and control of component institutions comprising the system. SECTION 4. APPROPRIATIONS. Transfers appropriations made for the use and benefit of UTI under the governance of the board of the A&M System to the board of UT System for the use and benefit of that institution. Requires other funds held for the use and benefit of UTI to continue to be available for the use and benefit of that institution notwithstanding the change in governance made by this Act. SECTION 5. CONTRACTS AND WRITTEN OBLIGATIONS. Provides that all contracts and written obligations, including bonds, entered into by the board of the A&M System for and on behalf of UTI are ratified, confirmed, and validated. Provides that the board of UT System is substituted for and stands and acts in the place of the board of the A&M System in those contracts and written obligations. Requires UT System to deposit a certain part of the revenue to the credit of the A&M System. SECTION 6. EMPLOYEE INSURANCE AND OTHER BENEFITS. Provides that any contract or other agreement with a provider of insurance or employee benefits that provides coverage for employees of A&M is not void nor does it terminate on the effective date of this Act. Provides that any such contract remains in full force and effect until its date of expiration unless it terminates before the expiration date in accordance with its terms. Provides that all persons for whom the insurance is provided on the effective date of this Act are covered by the insurance in accordance with the terms of those agreements until the respective dates of termination or expiration of those agreements. Requires the persons covered by the agreements who are employees of UT System on the respective termination or expiration dates of those agreements to be included in any similar agreements that relate to other employees of UT System and are in effect on the termination or expiration dates. SECTION 7. EFFECT OF TRANSFER ON STUDENTS AND EMPLOYEES. Provides the transfer of governance, operation, management, and control of UT from the board of the A&M System to the board of UT System does not effect the credit hours earned by students at that institution before the effective date of this Act or the employment status on the effective date of this Act of the administration, faculty, or support staff of UTI. SECTION 8. Amends Section 55.1712, Education Code, as follows: Sec. 55.1712. THE UNIVERSITY OF TEXAS--INTERNATIONAL. Makes conforming changes. SECTION 9. Amends Section 55.1713(a), Education Code, to delete the authority of A&M System to issue $36 million in bonds for Texas A&M International University. SECTION 10. Amends Section 61.0592, Education Code, as follows: Sec. 61.0592. New heading: UPPER-LEVEL TRANSITION FUNDING FOR THE UNIVERSITY OF TEXAS--INTERNATIONAL. Makes conforming changes. SECTION 11. Amends Section 62.021(a), Education Code, to make conforming changes. SECTION 12. Amends Section 69.22(e), Education Code, to make a conforming change. SECTION 13. Amends Section 77.36(e), Education Code, to make a conforming change. SECTION 14. Amends Title 3C, Education Code, by adding Chapter 79, as follows: CHAPTER 79. THE UNIVERSITY OF TEXAS--INTERNATIONAL Sec. 79.001. ESTABLISHMENT; SCOPE. (a) Provides that UTI is a coeducational institution of higher education located in the city of Laredo. Provides that the institution is a component institution of UT System and is under the management and control of the board of UT System. (b) Provides that the board has the same powers and duties concerning UTI as are conferred on it by statute concerning UT-at Austin. (c) Authorizes the institution to teach undergraduate or graduate level courses. Sec. 79.002. COURSES AND DEGREES; RULES; JOINT APPOINTMENTS. (a) Authorizes the board, with the approval of the Texas Higher Education Coordinating Board (coordinating board), to prescribe courses leading to customary degrees as are offered at leading American educational institutions and to award those degrees. (b) Authorizes those degrees offered by the institution to include baccalaureate, master's, and doctoral degrees and their equivalents. (c) Prohibits a new department, school, or degree program from being instituted without the prior approval of the coordinating board. (d) Requires the board to adopt rules for the operation, control, and management of UT as may be necessary for the institution to be a first-class institution of higher education. (e) Authorizes the board to make joint faculty appointments in UTI and in other institutions under its governance. Requires the salary of a person who receives a joint appointment to be apportioned to the appointing institution on the basis of services rendered. (f) Authorizes the board, with the approval of the coordinating board, to contract with the governing board on another general academic teaching institution as defined by Section 61.003 or with the governing board of a college of university in the United States or Canada to offer joint degree programs. Sec. 79.003. GRADUATE SCHOOL OF INTERNATIONAL TRADE. Requires a graduate school of international trade to be established at UTI, subject to the approval of the coordinating board. Sec. 79.004. CENTER FOR BORDER ECONOMIC AND ENTERPRISE DEVELOPMENT. (a) Requires the board to establish a center for border economic and enterprise development at UTI. (b) Authorizes the center established under this section to develop and manage an economic database concerning the Texas-Mexico border (border); perform economic development planning and research; provide technical assistance to industrial and governmental entities; and in cooperation with other state agencies, coordinate economic and enterprise development planning activities of state agencies to ensure that the economic needs of the border are integrated within a comprehensive state economic development plan. (c) Authorizes the center to offer seminars and conduct conferences and other educational programs concerning the border economy and economic and enterprise development within the state. (d) Requires the center established under this section to cooperate fully with similar programs operated by the University of Texas at El Paso, the University of Texas--Pan American, and other institutions of higher education. SECTION 15. Amends Section 481.060(b), Government Code, to make a conforming change. SECTION 16. Repealer: Chapter 87F, Education Code, (Texas A&M International System). SECTION 17. Effective date: September 1, 1995. SECTION 18. Emergency clause.