1-1 By: Swinford (Senate Sponsor - Bivins) H.B. No. 2507 1-2 (In the Senate - Received from the House May 8, 1995; 1-3 May 9, 1995, read first time and referred to Committee on 1-4 Education; May 10, 1995, reported favorably by the following vote: 1-5 Yeas 10, Nays 0; May 10, 1995, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the lease of the Amarillo campus of the Texas State 1-9 Technical College System to Amarillo College. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. DEFINITIONS. In this Act: 1-12 (1) "College" means Amarillo College. 1-13 (2) "System" means the Texas State Technical College 1-14 System. 1-15 SECTION 2. LEASE AND TRANSFER AGREEMENT. (a) Before July 1-16 1, 1995, the board of regents of the Texas State Technical College 1-17 System shall enter into an agreement with the board of trustees of 1-18 Amarillo College to lease to the board of trustees of Amarillo 1-19 College for the consideration described in Subsection (d) the 1-20 Amarillo campus of the system located in the city of Amarillo, 1-21 Potter County, except the following parts of the campus: (1) the 1-22 part that lies west of B Avenue; (2) the part that lies north of 1-23 27th Street and its eastward extension known as 9th Street; and 1-24 (3) the part that lies east of K Avenue and north of Hospital 1-25 Drive and its eastward extension, including the former landfill of 1-26 the air base formerly situated on the property. 1-27 (b) The initial term of the lease shall be for a period of 1-28 20 years, beginning not later than September 1, 1995, and the lease 1-29 shall authorize the college to terminate the lease, on 180 days' 1-30 written notice, on September 1, 1997, or on each successive second 1-31 anniversary of that date. 1-32 (c) In addition to the lease of the described property, 1-33 before September 1, 1995, in the lease agreement or a separate 1-34 agreement the system shall transfer to the college all right, 1-35 title, and interest in the equipment, supplies, and other personal 1-36 property used by the system in the 1994-1995 academic year in the 1-37 operation of the system's programs on the leased property. 1-38 Notwithstanding this requirement, the college may agree to the 1-39 system's retaining any personal property, including any library 1-40 holdings that duplicate Amarillo College library holdings. 1-41 (d) In consideration of the lease and transfer described by 1-42 this section, the college shall agree to undertake, beginning with 1-43 the 1995-1996 academic year, operation of all programs operated by 1-44 or in connection with the campus during the 1994-1995 academic 1-45 year. The college shall operate through the 1995-1996 academic 1-46 year those programs that have continuing enrollment, but thereafter 1-47 may discontinue a program operated by or in connection with that 1-48 campus. 1-49 (e) The agreement shall provide for the transfer to the 1-50 college of system employees on the campus, but the college is not 1-51 required to retain all employees of the system or to employ those 1-52 retained in positions of the same title that the employees held 1-53 under the system. 1-54 SECTION 3. POWERS AND DUTIES. The board of trustees of the 1-55 college may govern, operate, manage, and control the leased campus 1-56 and all leased land, buildings, facilities, and improvements, and 1-57 all transferred personal property, pursuant to the powers, duties, 1-58 and responsibilities conferred by law on the board of trustees of 1-59 the college for the governance, operation, management, and control 1-60 of the college. 1-61 SECTION 4. APPROPRIATIONS AND FEDERAL FUNDS; BOND REPAYMENT. 1-62 (a) Implementation of the lease and transfer agreement is 1-63 contingent on certification by the Texas Public Finance Authority 1-64 that the legislature has appropriated for the fiscal year ending 1-65 August 31, 1996, an amount sufficient to establish an escrow for 1-66 defeasance of the Amarillo campus portion of the Texas State 1-67 Technical College System Building Revenue and Refunding Bonds, 1-68 Series 1992. 2-1 (b) The legislature may appropriate money to the college in 2-2 support of the lease and transfer agreement, including operation of 2-3 the leased campus and the operation of the former system programs 2-4 on the leased campus, and that money is in addition to junior 2-5 college formula funding for the college. 2-6 (c) Appropriations made to the system for the use and 2-7 benefit of the programs operated on the Amarillo campus for the 2-8 biennium ending August 31, 1997, are transferred to the college for 2-9 the use and benefit of programs operated on that campus. 2-10 (d) Any federal technical-vocational education money 2-11 designated for the 1995-1996 academic year for the system's 2-12 Amarillo campus, including a Perkins allocation or a continuing 2-13 Perkins discretionary grant, shall be transferred to the college 2-14 for the benefit of the campus. 2-15 SECTION 5. CONTRACTS AND WRITTEN OBLIGATIONS; ACCOUNTS 2-16 PAYABLE. (a) Except as provided by Subsection (b) of this 2-17 section, contracts and written obligations of every kind and 2-18 character entered into by the board of regents of the system for 2-19 and on behalf of the system's Amarillo campus are ratified, 2-20 confirmed, and validated and remain the responsibility of the 2-21 system except to the extent assumed by the college in the lease and 2-22 transfer agreement or another agreement. In those contracts and 2-23 obligations expressly assumed by the college, the board of trustees 2-24 of the college is substituted for and stands and acts in the place 2-25 of the board of regents of the system. 2-26 (b) Bonds issued by or on behalf of the system for 2-27 constructing, improving, renovating, enlarging, or equipping 2-28 property, buildings, structures, facilities, roads, or related 2-29 infrastructure of the system's Amarillo campus remain the 2-30 obligation of the system. 2-31 (c) The system shall transfer to the college all money 2-32 applicable to the fall quarter, 1995, that the system collects 2-33 prior to the effective date of the lease and transfer agreement, 2-34 including receipts from tuition, fees, and auxiliary services and 2-35 accounts receivable for those purposes. 2-36 SECTION 6. LIABILITIES. (a) Except as otherwise provided 2-37 by this Act, any liability pertaining to the system's Amarillo 2-38 campus before the effective date of the lease and transfer 2-39 agreement, including leave of employees and employees' pay due 2-40 September 1, 1995, remains the responsibility of the system. 2-41 (b) Any future liabilities, whether strict or based on 2-42 negligence or on any other theory, that result from contamination 2-43 or other conditions present at the system's Amarillo campus before 2-44 the effective date of the lease or from any actions or omissions of 2-45 the system before the effective date of the lease remain the 2-46 responsibility of the system. 2-47 SECTION 7. EMPLOYEE INSURANCE AND OTHER BENEFITS. Any 2-48 contract or other agreement with a provider of insurance or 2-49 employee benefits that provides coverage for employees of the 2-50 system's Amarillo campus is not void nor does it terminate as a 2-51 result of this Act. Any such contract or agreement remains in full 2-52 force and effect as a contract or agreement of the college for the 2-53 employees transferred to the college until its date of expiration 2-54 unless it terminates before the expiration date in accordance with 2-55 its terms. All persons for whom the insurance or benefits are 2-56 provided are covered by the insurance or benefits in accordance 2-57 with the terms of those agreements until the respective dates of 2-58 termination or expiration of those agreements. The persons covered 2-59 by the agreements who are employees of the college on the 2-60 respective termination or expiration dates of those agreements 2-61 shall be included in any similar agreements that relate to other 2-62 employees of the college and that are in effect on the termination 2-63 or expiration dates. Money appropriated for provision of 2-64 insurance or benefits to the transferred employees shall be made 2-65 available to the college for the purpose for which the money is 2-66 appropriated. 2-67 SECTION 8. EFFECT ON STUDENTS. (a) This Act and the 2-68 agreement described by this Act do not affect the credit hours 2-69 earned by students at the system's Amarillo campus before the 2-70 effective date of this Act. 3-1 (b) Notwithstanding other law, until September 1, 2000, the 3-2 college may collect from students enrolled in programs on the 3-3 campus tuition and fees applicable to similar programs of the 3-4 system and may determine the residency of those students in 3-5 accordance with the law applicable to system students. 3-6 SECTION 9. EMERGENCY. The importance of this legislation 3-7 and the crowded condition of the calendars in both houses create an 3-8 emergency and an imperative public necessity that the 3-9 constitutional rule requiring bills to be read on three several 3-10 days in each house be suspended, and this rule is hereby suspended, 3-11 and that this Act take effect and be in force from and after its 3-12 passage, and it is so enacted. 3-13 * * * * *