By:  Fraser                                            S.B. No. 572

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the transfer of the University of Central Texas to The

 1-2     Texas A&M University System.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  TRANSFER OF GOVERNANCE.  The University of

 1-5     Central Texas, a Texas nonprofit corporation, including the

 1-6     organization, control, management, and property of that

 1-7     institution, is transferred to the board of regents of The Texas

 1-8     A&M University System if the board of regents of the University of

 1-9     Central Texas and the board of regents of The Texas A&M University

1-10     System agree to the transfer and the Texas Higher Education

1-11     Coordinating Board approves the transfer not later than August 31,

1-12     1997.  If the board of regents of the University of Central Texas

1-13     and the board of regents of The Texas A&M University System agree

1-14     to the transfer and the Texas Higher Education Coordinating Board

1-15     approves the transfer in the time provided, the transfer is

1-16     effective September 1, 1997, and is governed by Sections 2 through

1-17     7 of this Act.  When the transfer takes effect, the institution

1-18     shall be known as the Public University for Central Texas until the

1-19     board of regents assigns the institution a different name.

1-20           SECTION 2.  POWERS AND DUTIES; RULES AND POLICIES.  (a)  The

1-21     board of regents of The Texas A&M University System shall undertake

1-22     to govern, operate, manage, and control the Public University for

1-23     Central Texas and all land, buildings, facilities, improvements,

 2-1     equipment, supplies, and property belonging to and comprising that

 2-2     institution under the powers, duties, and responsibilities

 2-3     conferred by law on the board of regents of The Texas A&M

 2-4     University System for the governance, operation, management, and

 2-5     control of component institutions comprising that system.

 2-6           (b)  The university may continue to award degrees in the same

 2-7     disciplines and of the same academic standing as the University of

 2-8     Central Texas.  New degree programs at the university are subject

 2-9     to the approval process applicable to other public institutions of

2-10     higher education.

2-11           (c)  Rules and policies adopted by the board of regents of

2-12     the University of Central Texas to govern that institution that are

2-13     in effect when the transfer takes effect are continued in effect

2-14     until adopted, repealed, or superseded by the board of regents of

2-15     The Texas A&M University System.  The board of regents of The Texas

2-16     A&M University System may adopt rules and policies applicable to

2-17     the Public University for Central Texas in anticipation of the

2-18     transfer authorized by this Act.

2-19           SECTION 3.  CONTRACTS AND WRITTEN OBLIGATIONS.  Contracts and

2-20     written obligations of every kind and character entered into by the

2-21     board of regents of the University of Central Texas for and on

2-22     behalf of the University of Central Texas are ratified, confirmed,

2-23     and validated by the board of regents of The Texas A&M University

2-24     System by that board's agreement to accept the transfer authorized

2-25     by Section 1 of this Act.  In those contracts and written

 3-1     obligations, the board of regents of The Texas A&M University

 3-2     System is substituted for and stands and acts in the place of the

 3-3     board of regents of the University of Central Texas to the extent

 3-4     permitted by law.

 3-5           SECTION 4.  EFFECT OF TRANSFER ON EMPLOYEES.  For purposes of

 3-6     employment benefits, a person who is an employee of the University

 3-7     of Central Texas as of the effective date of the transfer shall be

 3-8     treated the same as any other new employee of The Texas A&M

 3-9     University System except that each employee shall be given credit

3-10     for all prior years of service at the University of Central Texas

3-11     for the purpose of annual leave accrual rates as state employees.

3-12           SECTION 5.  CURRENT FUNDING.  All funds that, on the

3-13     effective date of the transfer, have been dedicated to or are held

3-14     for the use and benefit of the University of Central Texas under

3-15     the governance of the board of regents of that institution are

3-16     transferred to the board of regents of The Texas A&M University

3-17     System for the use and benefit of the Public University for Central

3-18     Texas.

3-19           SECTION 6.  EFFECT OF TRANSFER ON STUDENTS.  The transfer of

3-20     governance, operation, management, and control of the University of

3-21     Central Texas to the board of regents of The Texas A&M University

3-22     System does not affect the credit hours earned by students at the

3-23     University of Central Texas before the effective date of this Act.

3-24           SECTION 7.  LEGISLATIVE INTENT.  It is the intent of the

3-25     legislature that the effect of this Act is to transfer governance

 4-1     of the existing University of Central Texas from the board of

 4-2     regents of the nonprofit corporation to the board of regents of The

 4-3     Texas A&M University System.  This Act does not create an

 4-4     institution of higher education entitled to funds under Sections 17

 4-5     and 18, Article VII, Texas Constitution.  On and after the

 4-6     effective date of the transfer, the Public University for Central

 4-7     Texas is not eligible to receive funds under Section 17 or 18,

 4-8     Article VII, Texas Constitution, until otherwise provided by law.

 4-9           SECTION 8.  AMENDMENT.  If the transfer authorized by Section

4-10     1 of this Act takes effect, effective September 1, 1997, Chapter

4-11     87, Education Code, is amended by adding Subchapter J to read as

4-12     follows:

4-13             SUBCHAPTER J.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS

4-14           Sec. 87.821.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS.  (a)  The

4-15     Public University for Central Texas is a coeducational upper-level

4-16     educational institution located in the city of Killeen.  The

4-17     institution is a component institution of The Texas A&M University

4-18     System and is under the management and control of the board of

4-19     regents of The Texas A&M University System.

4-20           (b)  The board of regents has the same powers and duties

4-21     concerning the Public University for Central Texas as are conferred

4-22     on the board by law concerning Texas A&M University.

4-23           (c)  The institution may accept only junior, senior, and

4-24     graduate-level students.

4-25           Sec. 87.822.  POWERS OF BOARD OF REGENTS.  (a)  The board

 5-1     may:

 5-2                 (1)  prescribe courses leading to degrees customarily

 5-3     offered in leading American upper-level educational institutions;

 5-4                 (2)  award the degrees described by Subdivision (1);

 5-5                 (3)  enter into an affiliation or coordination

 5-6     agreement with an entity if reasonably necessary or desirable for

 5-7     the operation of a first class upper-level educational institution;

 5-8                 (4)  make joint appointments in the Public University

 5-9     for Central Texas and another institution within The Texas A&M

5-10     University System; and

5-11                 (5)  adopt rules for the operation, control, and

5-12     management of the institution as necessary for the operation of a

5-13     first class upper-level educational institution, including rules

5-14     governing the number of students that may be admitted to any

5-15     program at the institution.

5-16           (b)  The salary of a person who receives a joint appointment

5-17     under Subsection (a)(4) must be apportioned among the institutions

5-18     to which the individual is appointed on the basis of the services

5-19     rendered.

5-20           SECTION 9.  REPEALER.  Chapter 1255, Acts of the 71st

5-21     Legislature, Regular Session, 1989, as amended by Chapter 37, Acts

5-22     of the 71st Legislature, 1st Called Session, 1989, and Chapter 800,

5-23     Acts of the 72nd Legislature, Regular Session, 1991, is repealed.

5-24           SECTION 10.  EMERGENCY.  The importance of this legislation

5-25     and the crowded condition of the calendars in both houses create an

 6-1     emergency and an imperative public necessity that the

 6-2     constitutional rule requiring bills to be read on three several

 6-3     days in each house be suspended, and this rule is hereby suspended,

 6-4     and that this Act take effect and be in force from and after its

 6-5     passage, and it is so enacted.