MMA S.B. 572 75(R)BILL ANALYSIS HIGHER EDUCATION S.B. 572 By: Fraser (Hupp) 5-8-97 Committee Report (Amended) BACKGROUND Currently, the University of Central Texas (UCT) is an upper-level private institution offering courses to students who can afford private tuition. Nearly ninety percent of all Texans live within a one hour commute of an uncapped public university. However, the 750,000 residents of Central Texas around Bell County are not within a one hour commute of an uncapped public university. In addition, the UCT is a non-traditional campus without on-campus residencies or expensive athletic programs. These factors keep spending to a minimum. PURPOSE S.B. 572 would allow the transfer of governance of the UCT to the board of regents of the Texas A&M University System. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant additional rulemaking authority to the board of regents of Texas A&M University System in SECTION 2 [Subsection (c)] and in SECTION 8 [Subchapter J, Section 87.822, Subsection (a)(5)]. SECTION BY SECTION ANALYSIS SECTION 1. TRANSFER OF GOVERNANCE. Allows the organization, control, management and property of the University of Central Texas (UCT) to be transferred to the board of regents of The Texas A&M University System (TAMUS). The board of regents of both entities must agree and the Texas Higher Education Coordinating Board (THECB) must approve the transfer by August 31, 1997. If the transfer is agreed upon and approved within the time provided, it will be governed by Sections 2 through 7 of this Act and will be effective on September 1, 1997. Once the transfer takes effect, the institution shall be known as the Public University for Central Texas (PUCT) until the board of regents assigns the institution a different name. SECTION 2. POWERS AND DUTIES; RULES AND POLICIES. (a) The board of regents of the TAMUS shall undertake to govern, operate, manage and control the PUCT including all its assets under the same authority given by law to the board of regents to govern TAMUS component institutions. (b) Authorizes PUCT to continue to award degrees as before the transfer, and new degree programs will require the same approval process as other public institutions of higher education. (c) States that rules and policies under the UCT still apply until adopted, repealed or superseded by the TAMUS board of regents, who may also adopt additional rules and policies applicable to the transfer. SECTION 3. CONTRACTS AND WRITTEN OBLIGATIONS. Contains a standard provision that validates all UCT contracts and written obligations of every kind and states that the board of regents of the TAMUS will act in place of the board of regents of the UCT. SECTION 4. EFFECT OF TRANSFER ON EMPLOYEES. Contains a standard provision that the transfer does not affect employment status or benefits of the employees at UCT, and shall receive credit for prior service at UCT. SECTION 5. CURRENT FUNDING. States that all funds dedicated for the use and benefit of UCT are transferred to TAMUS board of regents for the use and benefit of PUCT. SECTION 6. EFFECT OF TRANSFER ON STUDENTS. States that the transfer does not affect student credit hours earned before the effective date of this Act. SECTION 7. LEGISLATIVE INTENT. States that it is the legislature's intent is to transfer governance. This Act does not create an institution of higher education entitled to funds under Section 17 or 18, Article VII, Texas Constitution, and will not be eligible to receive these funds until otherwise provided by law. SECTION 8. AMENDMENT. If the transfer authorized by Section 1 takes effect, Chapter 87, Education Code, is amended by adding Subchapter J to read as follows: SUBCHAPTER J. PUBLIC UNIVERSITY FOR CENTRAL TEXAS Sec. 87.821. PUBLIC UNIVERSITY FOR CENTRAL TEXAS. (a) States that this institution is a coeducational upper-level institution in Killeen and under governance of the board of regents of TAMUS. (b) States that the board has the same powers and duties concerning the PUCT as are given by law regarding other component institutions of TAMUS. (c) Mandates the acceptance of only junior, senior and graduate-level students. Sec. 87.822. POWERS OF BOARD OF REGENTS. (a) Allows the board to: (1) prescribe courses leading to degrees which are customarily offered in leading national upper-level educational institutions; (2) award the degrees described in Subdivision (1); (3) enter into an affiliation or coordination agreement with an entity as necessary or desirable to provide a first-class institution; (4) make joint appointments with another institution within TAMUS; and (5) adopt rules necessary for operation, control, and management of the institution, including rules governing the number of students admitted to any program. (b) States that salaries of joint appointees under Subsection (a)(4) must be apportioned among the institutions, on the basis of services rendered. SECTION 9. REPEALER. Repeals Chapter 1255, Acts of the 71st Legislature, Regular Session, 1989, as amended by Chapter 37, Acts of the 71st legislature, 1st Called Session, 1989, and Chapter 800, Acts of the 72nd legislature, Regular Session, 1991. SECTION 10. Emergency clause. EXPLANATION OF AMENDMENTS COMMITTEE AMENDMENT NO.1 This amendment gives the board of regents of both institutions and the Texas Higher Education Coordinating Board another year to approve the transfer by changing the year from 1997 to 1998. COMMITTEE AMENDMENT NO.2 This amendment would amend SECTIONS 1-7 by inserting immediately after a reference to The Texas A&M University System language that would include another university system as a transfer option. Also amends SECTION 8 to make the amendment contingent upon transferring UCT to The Texas A&M University System. The amendment would also add a new SECTION to the measure that would amend the Education Code to provide for the transfer to another university system. The new SECTION would read as follows: SECTION _______. AMENDMENT. States that the transfer would be effective September 1, 1997 and that if the transfer is to a university system other than the Texas A&M University System, Title 3 of the Education Code would be amended as follows: CHAPTER 115. PUBLIC UNIVERSITY FOR CENTRAL TEXAS Sec. 115.001. PUBLIC UNIVERSITY FOR CENTRAL TEXAS. (a) States that this institution is a coeducational upper-level institution in Killeen and under governance of the board of regents of the university system to which that institution was transferred pursuant to an Act of the 75th Legislature, Regular Session, 1997. (b) States that the board has the same powers and duties concerning the PUCT as are given by law regarding other component institutions of the university system. (c) Mandates the acceptance of only junior, senior and graduate-level students. Sec.115.002. POWERS OF BOARD OF REGENTS. (a) Allows the board to: (1) prescribe courses leading to degrees which are customarily offered in leading national upper-level educational institutions; (2) award the degrees described in Subdivision (1); (3) enter into an affiliation or coordination agreement with an entity as necessary or desirable to provide a first-class institution; (4) make joint appointments with another institution within the same university system; and (5) adopt rules necessary for operation, control, and management of the institution, including rules governing the number of students admitted to any program. (b) States that salaries of joint appointees under Subsection (a)(4) must be apportioned among the institutions, on the basis of services rendered.