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adopted, repealed or superseded by the TAMUS board of regents, who may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.