HBA-KMH S.B. 1651 76(R)BILL ANALYSIS


Office of House Bill AnalysisS.B. 1651
By: Jackson
Higher Education
5/6/1999
Committee Report (Amended)


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effect until adopted, repealed, or superseded by the governing board of the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.  Provides that
if no specific appropriation is provided in H.B.1, the General
Appropriations Act, this Act has no effect. 

SECTION 14.  EMERGENCY.  Emergency clause.

EXPLANATION OF AMENDMENTS

Committee Amendment No.  1

The amendment modifies SECTION 2 to clarify that the provisions of the
SECTION apply to "a particular institution," rather than "an institution."
Additionally, the amendment modifies SECTION 2 to further provide that the
Texas Higher Education Coordinating Board is required to review and
authorized to approve the transition, as well as being required to assist
the Texas Chiropractic College and the institution of higher education in
the transition process, if there is sufficient interest among the parties
for the transition.  Furthermore, the amendment clarifies that the transfer
set forth in this SECTION is to the governing board of the institution of
higher education as approved, rather than selected, by the Texas Higher
Education Coordinating Board under this SECTION.