Kentucky legislation that has restructured the business management of the state's public colleges and universities is discussed. Attention is directed to: conditions in Kentucky prior to the passage of H.B. 622; the events surrounding the development of the legislation; the effects of the legislation on Kentucky's eight universities and 13 community colleges; conditions that could jeopardize the effects of the legislation; and the implication for other states of Kentucky's changes. After reviewing conditions in universities management that were common in Kentucky, the following areas affected by the legislation are examined: purchasing, capital construction, accounting and auditing, payroll, and affiliated corporations and foundations. It is noted that one effect of H.B. 622 has been the increasing decentralization of higher education administration. Institutional governing boards rather than the state department of finance are now accountable for institutional operations. Another effect of the legislation is that state officials have reassessed their views concerning the ability of institutions to manage their own operations. Prerequisites for passage of H.B. 622 are addressed, and an important implication is cited as "the value of cooperation among the various sectors of state higher education." (SW)