HBA-KMH S.B. 1651 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1651 By: Jackson Higher Education 5/5/1999 Engrossed BACKGROUND AND PURPOSE Currently, the Texas Chiropractic College (TCC) is operated by a nonprofit corporation. S.B. 1651 establishes TCC as a public institution of higher education. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the governing board of the institution of higher education to which Texas Chiropractic College is transferred in SECTION 3 (Powers and Duties; Rules and Policies) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. DEFINITIONS. Defines "governing board," "institution of higher education," and "new institution." SECTION 2. TRANSFER OF GOVERNANCE. Requires the coordinating board, if there is sufficient interest to assist TCC and the institution in the transition process. Provides that TCC in its entirety is transferred to the governing board of the institution selected by the coordinating board under this section if the board of trustees of TCC and the governing board of the institution both agree to the transfer. Provides that the transfer is effective on September 1 following the coordinating board's approval, and is governed by SECTIONS 3 through 8 of this Act. Requires the name of the new institution to be determined by the governing board of the institution subject to the approval of the coordinating board. SECTION 3. POWERS AND DUTIES; RULES AND POLICIES. (a) Requires the governing board of the institution to which TCC is transferred under this Act to undertake to govern, operate, manage, and control the new institution in its entirety. Authorizes the governing board, in undertaking the new institution, to use powers, duties, and responsibilities conferred to the board. (b) Authorizes the new institution to continue to award degrees in the same disciplines and of the same academic standing as TCC, subject to the continuing review of the coordinating board. Provides that a proposal for a new degree program at the new institution is subject to the same approval process that applies to other state-supported institutions. (c) Provides that the rules and policies adopted by the board of trustees of TCC that are in effect when the transfer takes effect are continued in effect until adopted, repealed, or superseded by the governing board of the institution to which TCC is transferred. Authorizes the governing board of the institution to which TCC is transferred, to adopt rules and policies applicable to the new institution in anticipation of the transfer. SECTION 4. CONTRACTS AND WRITTEN OBLIGATIONS. Provides that a contract or other written obligation entered into by the board of trustees of TCC for the benefit of, or on behalf of, the college is ratified, confirmed, and validated, and that in such an obligation the governing board of the institution to which TCC is transferred is substituted for and stands in the place of the board of trustees to the extent allowed under the law or the contract. SECTION 5. EFFECT ON EMPLOYEES. Requires that an employee of TCC, for purposes of determining employment benefits, be treated in the same manner as a new employee of the institution upon transfer of TCC to the institution. Provides an exemption to require that the employee be given credit for years of service at TCC for the purpose of accruing annual leave as a state employee. SECTION 6. TRANSFER OF FUNDING. Requires funds that on the effective date of the transfer have been dedicated to or held for transfer to the governing board of the institution to which TCC is transferred, to be used for the benefit of the new institution. SECTION 7. EFFECT ON STUDENTS. (a) Provides that the transfer of TCC to the institution does not affect the credit hours earned by a student enrolled at TCC before the effective date of the transfer. (b) Provides that the tuition rate charged by TCC during the academic year of the transfer remains in effect following the transfer of TCC under SECTION 2. Prohibits the tuition rate from being decreased. Provides that the tuition rate is subject to annual increases by the governing board of the institution. SECTION 8. LEGISLATIVE INTENT. Sets out legislative intent as follows: (1) The effect of this Act is to transfer the governance of TCC to the governing board of an institution of higher education that entered into an agreement under SECTION 2 of this Act. (2) This Act does not create an institution of higher education entitled to funds under Sections 17 (Higher education; appropriations and funding) or 18 (Texas A&M University System; University of Texas System; bonds and notes payable out of available university fund), Article VII, Texas Constitution. (3) On or after the effective date of this Act, the new institution is not eligible to receive funds under Section 17 or 18, Article VII, Texas Constitution. SECTION 9. AMENDMENT. Amends Subtitle F, Title 3, Education Code, by adding Chapter 114, as follows: CHAPTER 114. CHIROPRACTIC COLLEGE Sec. 114.001. CHIROPRACTIC COLLEGE. (a) Provides that the chiropractic college formerly constituting TCC is now a component of the higher education institution to which TCC was transferred and is under the management and control of the governing board of that institution. (b) Provides that the governing board has the same powers and duties concerning the institution as are conferred on it by law a component institution of the institution of higher education. Sec. 114.002. POWERS OF THE BOARD. Authorizes the governing board to take certain specified actions. Provides that the salary of a person who received a joint appointment under this section must be apportioned among the institutions to which the individual is appointed on the basis of the services rendered. SECTION 10. NOTICE. Requires the governing board of the institution to which TCC is transferred to publish notice of the transfer in the Texas Register, as soon as is practicable after agreeing to the transfer. SECTION 11. CONTINGENT EFFECT. Provides that the transfer of TCC as provided by this Act takes effect and applies beginning on the September 1 date next following the date of the approval of the transfer. Provides that if the transfer is not agreed to and approved under SECTION 2, SECTION 9 has no effect. SECTION 12. EFFECTIVE DATE. Provides that SECTIONS 1 through 8 and SECTION 10 take effect immediately. SECTION 13. IMPLEMENTATION OF ACT CONTINGENT ON APPROPRIATION. Provides that this Act takes effect only if a specific appropriation for the implementation of this Act is provided in H.B. 1 (General Appropriations Act), Acts of the 76th Legislature, Regular Session, 1999. SECTION 14. EMERGENCY. Emergency clause.