AN ACT

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

 1-2     Texas A&M University System or other 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 or of another university system as defined by

 1-9     Section 61.003, Education Code, if the board of regents of the

1-10     University of Central Texas and the board of regents of The Texas

1-11     A&M University System or other university system agree to the

1-12     transfer and the Texas Higher Education Coordinating Board approves

1-13     the transfer not later than August 31, 1998.  If the board of

1-14     regents of the University of Central Texas and the board of regents

1-15     of The Texas A&M University System or other university system agree

1-16     to the transfer and the Texas Higher Education Coordinating Board

1-17     approves the transfer in the time provided, the transfer is

1-18     effective September 1, 1998, and is governed by Sections 2 through

1-19     7 of this Act.  When the transfer takes effect, the institution

1-20     shall be known as the Public University for Central Texas until the

1-21     board of regents assigns the institution a different name.

1-22           SECTION 2.  POWERS AND DUTIES; RULES AND POLICIES.  (a)  The

1-23     board of regents of The Texas A&M University System or other

 2-1     university system to which the university is transferred under

 2-2     Section 1 of this Act shall undertake to govern, operate, manage,

 2-3     and control the Public University for Central Texas and all land,

 2-4     buildings, facilities, improvements, equipment, supplies, and

 2-5     property belonging to and comprising that institution under the

 2-6     powers, duties, and responsibilities conferred by law on the board

 2-7     of regents of The Texas A&M University System or other university

 2-8     system for the governance, operation, management, and control of

 2-9     component institutions comprising that system.

2-10           (b)  The university may continue to award degrees in the same

2-11     disciplines and of the same academic standing as the University of

2-12     Central Texas.  New degree programs at the university are subject

2-13     to the approval process applicable to other public institutions of

2-14     higher education.

2-15           (c)  Rules and policies adopted by the board of regents of

2-16     the University of Central Texas to govern that institution that are

2-17     in effect when the transfer takes effect are continued in effect

2-18     until adopted, repealed, or superseded by the board of regents of

2-19     The Texas A&M University System or other university system to which

2-20     the university is transferred under Section 1 of this Act.  The

2-21     board of regents of The Texas A&M University System or other

2-22     university system may adopt rules and policies applicable to the

2-23     Public University for Central Texas in anticipation of the transfer

2-24     authorized by this Act.

2-25           SECTION 3.  CONTRACTS AND WRITTEN OBLIGATIONS.  Contracts and

 3-1     written obligations of every kind and character entered into by the

 3-2     board of regents of the University of Central Texas for and on

 3-3     behalf of the University of Central Texas are ratified, confirmed,

 3-4     and validated by the board of regents of The Texas A&M University

 3-5     System or other university system to which the university is

 3-6     transferred under Section 1 of this Act by that board's agreement

 3-7     to accept the transfer authorized by Section 1 of this Act.  In

 3-8     those contracts and written obligations, the board of regents of

 3-9     The Texas A&M University System or other university system is

3-10     substituted for and stands and acts in the place of the board of

3-11     regents of the University of Central Texas to the extent permitted

3-12     by law.

3-13           SECTION 4.  EFFECT OF TRANSFER ON EMPLOYEES.  For purposes of

3-14     employment benefits, a person who is an employee of the University

3-15     of Central Texas as of the effective date of the transfer shall be

3-16     treated the same as any other new employee of The Texas A&M

3-17     University System or other university system to which the

3-18     university is transferred under Section 1 of this Act except that

3-19     each employee shall be given credit for all prior years of service

3-20     at the University of Central Texas for the purpose of annual leave

3-21     accrual rates as state employees.

3-22           SECTION 5.  CURRENT FUNDING.  All funds that, on the

3-23     effective date of the transfer, have been dedicated to or are held

3-24     for the use and benefit of the University of Central Texas under

3-25     the governance of the board of regents of that institution are

 4-1     transferred to the board of regents of The Texas A&M University

 4-2     System or other university system to which the university is

 4-3     transferred under Section 1 of this Act for the use and benefit of

 4-4     the Public University for Central Texas.

 4-5           SECTION 6.  EFFECT OF TRANSFER ON STUDENTS.  The transfer of

 4-6     governance, operation, management, and control of the University of

 4-7     Central Texas to the board of regents of The Texas A&M University

 4-8     System or other university system to which the university is

 4-9     transferred under Section 1 of this Act does not affect the credit

4-10     hours earned by students at the University of Central Texas before

4-11     the effective date of this Act.

4-12           SECTION 7.  LEGISLATIVE INTENT.  It is the intent of the

4-13     legislature that the effect of this Act is to transfer governance

4-14     of the existing University of Central Texas from the board of

4-15     regents of the nonprofit corporation to the board of regents of The

4-16     Texas A&M University System or other university system to which the

4-17     university is transferred under Section 1 of this Act.  This Act

4-18     does not create an institution of higher education entitled to

4-19     funds under Sections 17 and 18, Article VII, Texas Constitution.

4-20     On and after the effective date of the transfer, the Public

4-21     University for Central Texas is not eligible to receive funds under

4-22     Section 17 or 18, Article VII, Texas Constitution, until otherwise

4-23     provided by law.

4-24           SECTION 8.  AMENDMENT.  If the transfer authorized by Section

4-25     1 of this Act takes effect and the transfer is made to The Texas

 5-1     A&M University System, effective September 1, 1998, Chapter 87,

 5-2     Education Code, is amended by adding Subchapter J to read as

 5-3     follows:

 5-4             SUBCHAPTER J.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS

 5-5           Sec. 87.821.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS.  (a)  The

 5-6     Public University for Central Texas is a coeducational upper-level

 5-7     educational institution located in the city of Killeen.  The

 5-8     institution is a component institution of The Texas A&M University

 5-9     System and is under the management and control of the board of

5-10     regents of The Texas A&M University System.

5-11           (b)  The board of regents has the same powers and duties

5-12     concerning the Public University for Central Texas as are conferred

5-13     on the board by law concerning Texas A&M University.

5-14           (c)  The institution may accept only junior, senior, and

5-15     graduate-level students.

5-16           Sec. 87.822.  POWERS OF BOARD OF REGENTS.  (a)  The board

5-17     may:

5-18                 (1)  prescribe courses leading to degrees customarily

5-19     offered in leading American upper-level educational institutions;

5-20                 (2)  award the degrees described by Subdivision (1);

5-21                 (3)  enter into an affiliation or coordination

5-22     agreement with an entity if reasonably necessary or desirable for

5-23     the operation of a first-class upper-level educational institution;

5-24                 (4)  make joint appointments in the Public University

5-25     for Central Texas and another institution within The Texas A&M

 6-1     University System; and

 6-2                 (5)  adopt rules for the operation, control, and

 6-3     management of the institution as necessary for the operation of a

 6-4     first-class upper-level educational institution, including rules

 6-5     governing the number of students that may be admitted to any

 6-6     program at the institution.

 6-7           (b)  The salary of a person who receives a joint appointment

 6-8     under Subsection (a)(4) must be apportioned among the institutions

 6-9     to which the individual is appointed on the basis of the services

6-10     rendered.

6-11           SECTION 9.  AMENDMENT.  If the transfer authorized by Section

6-12     1 of this Act takes effect and that transfer is made to a

6-13     university system other than The Texas A&M University System,

6-14     effective September 1, 1998, Subtitle F, Title 3, Education Code,

6-15     is amended by adding Chapter 115 to read as follows:

6-16              CHAPTER 115.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS

6-17           Sec. 115.001.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS.  (a)  The

6-18     Public University for Central Texas is a coeducational upper-level

6-19     educational institution located in the city of Killeen.  The

6-20     institution is a component institution of higher education of the

6-21     university system to which that institution was transferred

6-22     pursuant to an Act of the 75th Legislature, Regular Session, 1997,

6-23     and is under the management and control of the board of regents of

6-24     that university system.

6-25           (b)  The board of regents has the same powers and duties

 7-1     concerning the Public University for Central Texas as are conferred

 7-2     on the board by law concerning other component institutions of the

 7-3     university system.

 7-4           (c)  The institution may accept only junior, senior, and

 7-5     graduate-level students.

 7-6           Sec. 115.002.  POWERS OF BOARD OF REGENTS.  (a)  The board

 7-7     may:

 7-8                 (1)  prescribe courses leading to degrees customarily

 7-9     offered in leading American upper-level educational institutions;

7-10                 (2)  award the degrees described by Subdivision (1);

7-11                 (3)  enter into an affiliation or coordination

7-12     agreement with an entity if reasonably necessary or desirable for

7-13     the operation of a first-class upper-level educational institution;

7-14                 (4)  make joint appointments in the Public University

7-15     for Central Texas and another institution within the same

7-16     university system; and

7-17                 (5)  adopt rules for the operation, control, and

7-18     management of the institution as necessary for the operation of a

7-19     first-class upper-level educational institution, including rules

7-20     governing the number of students who may be admitted to any program

7-21     at the institution.

7-22           (b)  The salary of a person who receives a joint appointment

7-23     under Subsection (a)(4) must be apportioned among the institutions

7-24     to which the individual is appointed on the basis of the services

7-25     rendered.

 8-1           SECTION 10.  REPEALER.  Chapter 1255, Acts of the 71st

 8-2     Legislature, Regular Session, 1989, as amended by Chapter 37, Acts

 8-3     of the 71st Legislature, 1st Called Session, 1989, and Chapter 800,

 8-4     Acts of the 72nd Legislature, Regular Session, 1991, is repealed.

 8-5           SECTION 11.  EMERGENCY.  The importance of this legislation

 8-6     and the crowded condition of the calendars in both houses create an

 8-7     emergency and an imperative public necessity that the

 8-8     constitutional rule requiring bills to be read on three several

 8-9     days in each house be suspended, and this rule is hereby suspended,

8-10     and that this Act take effect and be in force from and after its

8-11     passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 572 passed the Senate on

         April 25, 1997, by the following vote:  Yeas 27, Nays 0; and that

         the Senate concurred in House amendments on May 27, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 572 passed the House, with

         amendments, on May 25, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor