1-1     By:  Fraser                                            S.B. No. 572

 1-2           (In the Senate - Filed February 12, 1997; February 18, 1997,

 1-3     read first time and referred to Committee on Finance;

 1-4     April 22, 1997, reported favorably by the following vote:  Yeas 12,

 1-5     Nays 0; April 22, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the transfer of the University of Central Texas to The

 1-9     Texas A&M University System.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  TRANSFER OF GOVERNANCE.  The University of

1-12     Central Texas, a Texas nonprofit corporation, including the

1-13     organization, control, management, and property of that

1-14     institution, is transferred to the board of regents of The Texas

1-15     A&M University System if the board of regents of the University of

1-16     Central Texas and the board of regents of The Texas A&M University

1-17     System agree to the transfer and the Texas Higher Education

1-18     Coordinating Board approves the transfer not later than August 31,

1-19     1997.  If the board of regents of the University of Central Texas

1-20     and the board of regents of The Texas A&M University System agree

1-21     to the transfer and the Texas Higher Education Coordinating Board

1-22     approves the transfer in the time provided, the transfer is

1-23     effective September 1, 1997, and is governed by Sections 2 through

1-24     7 of this Act.  When the transfer takes effect, the institution

1-25     shall be known as the Public University for Central Texas until the

1-26     board of regents assigns the institution a different name.

1-27           SECTION 2.  POWERS AND DUTIES; RULES AND POLICIES.  (a)  The

1-28     board of regents of The Texas A&M University System shall undertake

1-29     to govern, operate, manage, and control the Public University for

1-30     Central Texas and all land, buildings, facilities, improvements,

1-31     equipment, supplies, and property belonging to and comprising that

1-32     institution under the powers, duties, and responsibilities

1-33     conferred by law on the board of regents of The Texas A&M

1-34     University System for the governance, operation, management, and

1-35     control of component institutions comprising that system.

1-36           (b)  The university may continue to award degrees in the same

1-37     disciplines and of the same academic standing as the University of

1-38     Central Texas.  New degree programs at the university are subject

1-39     to the approval process applicable to other public institutions of

1-40     higher education.

1-41           (c)  Rules and policies adopted by the board of regents of

1-42     the University of Central Texas to govern that institution that are

1-43     in effect when the transfer takes effect are continued in effect

1-44     until adopted, repealed, or superseded by the board of regents of

1-45     The Texas A&M University System.  The board of regents of The Texas

1-46     A&M University System may adopt rules and policies applicable to

1-47     the Public University for Central Texas in anticipation of the

1-48     transfer authorized by this Act.

1-49           SECTION 3.  CONTRACTS AND WRITTEN OBLIGATIONS.  Contracts and

1-50     written obligations of every kind and character entered into by the

1-51     board of regents of the University of Central Texas for and on

1-52     behalf of the University of Central Texas are ratified, confirmed,

1-53     and validated by the board of regents of The Texas A&M University

1-54     System by that board's agreement to accept the transfer authorized

1-55     by Section 1 of this Act.  In those contracts and written

1-56     obligations, the board of regents of The Texas A&M University

1-57     System is substituted for and stands and acts in the place of the

1-58     board of regents of the University of Central Texas to the extent

1-59     permitted by law.

1-60           SECTION 4.  EFFECT OF TRANSFER ON EMPLOYEES.  For purposes of

1-61     employment benefits, a person who is an employee of the University

1-62     of Central Texas as of the effective date of the transfer shall be

1-63     treated the same as any other new employee of The Texas A&M

1-64     University System except that each employee shall be given credit

 2-1     for all prior years of service at the University of Central Texas

 2-2     for the purpose of annual leave accrual rates as state employees.

 2-3           SECTION 5.  CURRENT FUNDING.  All funds that, on the

 2-4     effective date of the transfer, have been dedicated to or are held

 2-5     for the use and benefit of the University of Central Texas under

 2-6     the governance of the board of regents of that institution are

 2-7     transferred to the board of regents of The Texas A&M University

 2-8     System for the use and benefit of the Public University for Central

 2-9     Texas.

2-10           SECTION 6.  EFFECT OF TRANSFER ON STUDENTS.  The transfer of

2-11     governance, operation, management, and control of the University of

2-12     Central Texas to the board of regents of The Texas A&M University

2-13     System does not affect the credit hours earned by students at the

2-14     University of Central Texas before the effective date of this Act.

2-15           SECTION 7.  LEGISLATIVE INTENT. It is the intent of the

2-16     legislature that the effect of this Act is to transfer governance

2-17     of the existing University of Central Texas from the board of

2-18     regents of the nonprofit corporation to the board of regents of The

2-19     Texas A&M University System.  This Act does not create an

2-20     institution of higher education entitled to funds under Sections 17

2-21     and 18, Article VII, Texas Constitution.  On and after the

2-22     effective date of the transfer, the Public University for Central

2-23     Texas is not eligible to receive funds under Section 17 or 18,

2-24     Article VII, Texas Constitution, until otherwise provided by law.

2-25           SECTION 8.  AMENDMENT.  If the transfer authorized by Section

2-26     1 of this Act takes effect, effective September 1, 1997, Chapter

2-27     87, Education Code, is amended by adding Subchapter J to read as

2-28     follows:

2-29             SUBCHAPTER J.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS

2-30           Sec. 87.821.  PUBLIC UNIVERSITY FOR CENTRAL TEXAS.  (a)  The

2-31     Public University for Central Texas is a coeducational upper-level

2-32     educational institution located in the city of Killeen.  The

2-33     institution is a component institution of The Texas A&M University

2-34     System and is under the management and control of the board of

2-35     regents of The Texas A&M University System.

2-36           (b)  The board of regents has the same powers and duties

2-37     concerning the Public University for Central Texas as are conferred

2-38     on the board by law concerning Texas A&M University.

2-39           (c)  The institution may accept only junior, senior, and

2-40     graduate-level students.

2-41           Sec. 87.822.  POWERS OF BOARD OF REGENTS.  (a)  The board

2-42     may:

2-43                 (1)  prescribe courses leading to degrees customarily

2-44     offered in leading American upper-level educational institutions;

2-45                 (2)  award the degrees described by Subdivision (1);

2-46                 (3)  enter into an affiliation or coordination

2-47     agreement with an entity if reasonably necessary or desirable for

2-48     the operation of a first class upper-level educational institution;

2-49                 (4)  make joint appointments in the Public University

2-50     for Central Texas and another institution within The Texas A&M

2-51     University System; and

2-52                 (5)  adopt rules for the operation, control, and

2-53     management of the institution as necessary for the operation of a

2-54     first class upper-level educational institution, including rules

2-55     governing the number of students that may be admitted to any

2-56     program at the institution.

2-57           (b)  The salary of a person who receives a joint appointment

2-58     under Subsection (a)(4) must be apportioned among the institutions

2-59     to which the individual is appointed on the basis of the services

2-60     rendered.

2-61           SECTION 9.  REPEALER.  Chapter 1255, Acts of the 71st

2-62     Legislature, Regular Session, 1989, as amended by Chapter 37, Acts

2-63     of the 71st Legislature, 1st Called Session, 1989, and Chapter 800,

2-64     Acts of the 72nd Legislature, Regular Session, 1991, is repealed.

2-65           SECTION 10.  EMERGENCY.  The importance of this legislation

2-66     and the crowded condition of the calendars in both houses create an

2-67     emergency and an imperative public necessity that the

2-68     constitutional rule requiring bills to be read on three several

2-69     days in each house be suspended, and this rule is hereby suspended,

 3-1     and that this Act take effect and be in force from and after its

 3-2     passage, and it is so enacted.

 3-3                                  * * * * *