Bill Text: TX SB1055 | 2023-2024 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the creation of a new university in Nacogdoches, Texas, within The University of Texas System and the allocation of the annual constitutional appropriation to certain agencies and institutions of higher education; abolishing Stephen F. Austin State University.

Spectrum: Moderate Partisan Bill (Republican 7-1)

Status: (Passed) 2023-05-10 - See remarks for effective date [SB1055 Detail]

Download: Texas-2023-SB1055-Engrossed.html

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By: Nichols, Zaffirini S.B. No. 1055

A BILL TO BE ENTITLED
AN ACT
relating to the creation of a new university in Nacogdoches, Texas,
within The University of Texas System and the allocation of the
annual constitutional appropriation to certain agencies and
institutions of higher education; abolishing Stephen F. Austin
State University.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. AMENDMENT TO EDUCATION CODE. Subtitle C, Title
3, Education Code, is amended by adding Chapter 80 to read as
follows:
CHAPTER 80. STEPHEN F. AUSTIN STATE UNIVERSITY, A MEMBER OF THE
UNIVERSITY OF TEXAS SYSTEM
Sec. 80.01. DEFINITIONS. In this chapter:
(1) "Board" means the board of regents of The
University of Texas System.
(2) "University" means the university established
under this chapter as Stephen F. Austin State University, a member
of The University of Texas System.
Sec. 80.02. REFERENCE TO STEPHEN F. AUSTIN STATE
UNIVERSITY. A reference in law to Stephen F. Austin State
University means Stephen F. Austin State University, a member of
The University of Texas System.
Sec. 80.03. ESTABLISHMENT; SCOPE. (a) Stephen F. Austin
State University, a member of The University of Texas System, is a
general academic teaching institution in Nacogdoches, Texas, under
the governance, management, and control of the board of regents of
The University of Texas System.
(b) As necessary to achieve the maximum operating
efficiency of the university, the board shall provide for the
organization, administration, and location of the university and of
the colleges, schools, and other institutions and entities of the
university.
(c) The authority of the board under this section to achieve
the maximum operating efficiency of the university and to provide
for the organization, administration, and location of the
university and of the colleges, schools, and other institutions and
entities of the university prevails over other law.
Sec. 80.04. COURSES AND DEGREES. (a) The board may
prescribe courses leading to customary degrees offered at leading
American universities and may award those degrees, including
bachelor's, master's, and doctoral degrees and their equivalents.
(b) The board shall award degrees in the name of the
university.
(c) A degree program may not be instituted without the prior
approval of the Texas Higher Education Coordinating Board, except
that the university may offer any degree program previously
approved for Stephen F. Austin State University or expressly
authorized by this chapter or other law.
Sec. 80.05. UNIVERSITY OF THE FIRST CLASS. The board shall
make any other rules and regulations for the operation, control,
and management of the university as may be necessary for the conduct
of the university as a university of the first class.
Sec. 80.06. FACILITIES. The board shall provide for
adequate physical facilities for use by the university.
Sec. 80.07. GIFTS AND GRANTS. The board may solicit,
accept, and administer, on terms and conditions acceptable to the
board, gifts, grants, or donations of any kind and from any source
for use by the university.
Sec. 80.08. JOINT APPOINTMENTS. The board may make joint
faculty appointments to positions in the university and to
positions in other institutions under the governance of the board.
Sec. 80.09. PARTICIPATION IN PERMANENT UNIVERSITY FUND.
The legislature finds that the university is an institution of
higher education "created at a later date" for purposes of Section
18(c), Article VII, Texas Constitution. Accordingly, the
university is entitled to participate in the funding provided by
Section 18, Article VII, Texas Constitution, to the same extent as
similar component institutions of The University of Texas System.
SECTION 2. STEPHEN F. AUSTIN STATE UNIVERSITY ABOLISHED.
(a) Stephen F. Austin State University is abolished on September
1, 2023, or on an alternate date the board of regents of The
University of Texas System determines appropriate to achieve the
maximum operating efficiency of the system. A designated alternate
date must be entered into the minutes of the board.
(b) The board of regents of The University of Texas System
shall provide to the secretary of state written notice of its action
under Subsection (a) of this section. Effective on the date the
board designates for the abolition of Stephen F. Austin State
University, Chapter 101, Education Code, is repealed.
(c) The board of regents of The University of Texas System
may not act under Subsection (a) of this section to abolish Stephen
F. Austin State University earlier than the date on which Stephen F.
Austin State University, a member of The University of Texas
System, begins operation.
(d) The board of regents of Stephen F. Austin State
University shall take all actions necessary to facilitate the
operation of Stephen F. Austin State University, a member of The
University of Texas System, and the orderly winding up of the
affairs of Stephen F. Austin State University. For that purpose,
the board of regents of Stephen F. Austin State University may
transfer management and control of Stephen F. Austin State
University to the board of regents of The University of Texas
System.
(e) On the date Stephen F. Austin State University is
abolished as provided by this Act, the terms of office of members of
the board of regents of Stephen F. Austin State University expire.
SECTION 3. UNIVERSITY CREATED; TRANSITION PROVISIONS. (a)
Stephen F. Austin State University, a member of The University of
Texas System, is created within The University of Texas System. As
provided by Chapter 80, Education Code, as added by this Act, the
board of regents of The University of Texas System shall establish
the university as a general academic teaching institution offering
the degrees authorized by that chapter.
(b) Stephen F. Austin State University, a member of The
University of Texas System, shall begin operating on a date the
board of regents of The University of Texas System determines
appropriate to achieve the maximum operating efficiency of the
system. The designated date must be entered into the minutes of the
board.
(c) In recognition of the abolition of Stephen F. Austin
State University as authorized by this Act, the board of regents of
The University of Texas System shall facilitate the employment at
Stephen F. Austin State University, a member of The University of
Texas System, of as many faculty and staff of the abolished
university as is prudent and practical, subject to the following:
(1) a person who is tenured faculty of Stephen F.
Austin State University on the date of the university's abolition
is entitled to tenure at Stephen F. Austin State University, a
member of The University of Texas System; and
(2) a person who is in a tenure-track teaching
position at Stephen F. Austin State University on the date of the
university's abolition is entitled to a tenure-track position at
Stephen F. Austin State University, a member of The University of
Texas System, and must be considered for tenure on the same schedule
governing the position at Stephen F. Austin State University.
(d) A student admitted to or enrolled at Stephen F. Austin
State University on the date of abolition is entitled to admission
to Stephen F. Austin State University, a member of The University of
Texas System, and the board of regents of The University of Texas
System shall take actions necessary to facilitate that admission
and the appropriate transfer of credits.
(e) On the date Stephen F. Austin State University is
abolished as provided by this Act, all money, property, and
facilities under the management and control of the board of regents
of Stephen F. Austin State University are transferred to the
management and control of the board of regents of The University of
Texas System for the use and benefit of Stephen F. Austin State
University, a member of The University of Texas System.
(f) On the date Stephen F. Austin State University is
abolished as provided by this Act, the board of regents of The
University of Texas System is substituted in contracts and other
obligations for the board of regents of Stephen F. Austin State
University. Contracts and written obligations of every kind and
character entered into by the board of regents of Stephen F. Austin
State University or the Texas Public Finance Authority for and on
behalf of Stephen F. Austin State University, including bonds, are
considered ratified, confirmed, and validated by the board of
regents of The University of Texas System. In those contracts and
written obligations, the board of regents of The University of
Texas System is substituted for and stands and acts in the place of
the board of regents of Stephen F. Austin State University or the
Texas Public Finance Authority, as applicable, to the extent
permitted by law. To the extent that Stephen F. Austin State
University has authorized but unissued bonding authority under
Section 55.1797, Education Code, the board of regents of The
University of Texas System may issue bonds in that amount and for
the same purposes under the systemwide revenue financing program
for the benefit of Stephen F. Austin State University, a member of
The University of Texas System.
(g) For Stephen F. Austin State University, a member of The
University of Texas System, the board of regents of The University
of Texas System may impose and collect any fee authorized by prior
law for Stephen F. Austin State University, as that law existed at
the time the university was abolished, as determined by the board
and subject to the limitations provided by the prior law
authorizing the fee. The abolition of Stephen F. Austin State
University does not affect any pledge of revenue from a fee made by
or on behalf of the university to pay obligations issued in
connection with facilities for which the fee was imposed and the
obligations were issued.
(h) A person who is a participant or is eligible to
participate in a group benefits insurance program of Stephen F.
Austin State University under Chapter 1551, Insurance Code, or who
would be eligible to participate at a future date as a retiree, on
the date Stephen F. Austin State University is abolished, as
authorized by this Act, is eligible to participate as an employee,
current retiree, or vested former employee of Stephen F. Austin
State University, a member of The University of Texas System, or as
a dependent or surviving dependent, as if all benefits-eligible
service credit had been earned in a benefits-eligible position at
Stephen F. Austin State University, a member of The University of
Texas System. A person who is eligible under this subsection for
the uniform insurance benefits under Chapter 1601, Insurance Code,
is not eligible to participate in a group benefits insurance
program under Chapter 1551, Insurance Code.
(i) The Employees Retirement System of Texas, Stephen F.
Austin State University, and The University of Texas System shall
take all actions necessary to implement Subsection (h). For that
purpose:
(1) the Employees Retirement System of Texas shall
provide to The University of Texas System the information,
including protected health information to the extent authorized by
law, necessary for payment activities and plan operations,
including health plan operations, of the uniform insurance benefits
under Chapter 1601, Insurance Code; and
(2) Stephen F. Austin State University and The
University of Texas System shall ensure that the Employees
Retirement System of Texas receives full contributions for each
month in which employees of Stephen F. Austin State University are
covered by the group benefits insurance program under Chapter 1551,
Insurance Code.
(j) An employee of Stephen F. Austin State University who is
participating in the deferred compensation plan under Subchapter C,
Chapter 609, Government Code, on the date the university is
abolished, as authorized by this Act, is considered to have
terminated employment on that date for purposes of the deferred
compensation plan.
(k) For Stephen F. Austin State University, a member of The
University of Texas System, the board of regents of The University
of Texas System shall seek the inclusion of the university
initially in the same athletic conferences, and participation in
the same National Collegiate Athletic Association division, as
Stephen F. Austin State University immediately before its
abolition.
SECTION 4. AMENDMENT. Section 59.06, Education Code, is
amended to read as follows:
Sec. 59.06. LIMITATION ON APPROPRIATED FUNDS. Funds
appropriated by the legislature to The University of Texas System,
The Texas A&M University System, the Texas Tech University System,
the Texas State University System, the University of Houston
System, [Stephen F. Austin State University,] or the University of
North Texas System from the General Revenue Fund may not be used to
establish or maintain the fund, to purchase insurance, or to employ
private legal counsel.
SECTION 5. AMENDMENT. Section 62.021(a), Education Code,
is amended to read as follows:
(a) In each state fiscal year beginning with the state
fiscal year ending August 31, 2021, an eligible institution is
entitled to receive an amount allocated in accordance with this
section from the funds appropriated for that year by Section 17(a),
Article VII, Texas Constitution. The comptroller shall distribute
funds allocated under this subsection only on presentation of a
claim and issuance of a warrant in accordance with Section 403.071,
Government Code. An eligible institution may not present a claim to
be paid from any funds allocated under this subsection before the
delivery of goods or services described in Section 17, Article VII,
Texas Constitution, except for the payment of principal or interest
on bonds or notes or for a payment for a book or other published
library material as authorized by Section 2155.386, Government
Code. The allocation of funds under this subsection is made in
accordance with an equitable formula consisting of the following
elements: space deficit, facilities condition, institutional
complexity, and a separate allocation for the Texas State Technical
College System. The annual amounts allocated by the formula are as
follows:
(1) to the following component institutions of the
University of North Texas System:
(A) $38,473,304 [$37,346,563] to the University
of North Texas;
(B) $15,581,837 [$15,125,502] to the University
of North Texas Health Science Center at Fort Worth; and
(C) $3,455,644 [$3,354,441] to the University of
North Texas at Dallas;
(2) [$11,277,793 to Stephen F. Austin State
University;
[(3)] to the following component institutions of the
Texas State University System:
(A) $13,537,649 [$13,141,181] to Lamar
University;
(B) $2,630,158 [$2,553,130] to the Lamar
Institute of Technology;
(C) $1,533,301 [$1,488,396] to Lamar State
College--Orange;
(D) $2,283,992 [$2,217,102] to Lamar State
College--Port Arthur;
(E) $18,787,013 [$18,236,811] to Sam Houston
State University;
(F) $38,741,061 [$37,606,478] to Texas State
University;
(G) $2,216,640 [$2,151,723] to Sul Ross State
University; and
(H) $487,157 [$472,890] to Sul Ross State
University-Rio Grande College;
(3) $12,072,906 [(4) $11,719,335] to Texas Southern
University;
(4) [(5)] to the following component institutions of
the Texas Tech University System:
(A) $51,379,461 [$49,874,746] to Texas Tech
University;
(B) $22,305,642 [$21,652,392] to Texas Tech
University Health Sciences Center;
(C) $6,997,943 [$6,792,999] to Angelo State
University;
(D) $5,725,243 [$5,557,572] to Texas Tech
University Health Sciences Center--El Paso; and
(E) $5,082,034 [$4,933,200] to Midwestern State
University;
(5) $14,993,229 [(6) $14,554,133] to the component
institutions of the Texas Woman's University System, allocated as
determined by the board of regents of the system;
(6) [(7)] to the following component institutions of
the University of Houston System:
(A) $56,158,685 [$54,514,004] to the University
of Houston;
(B) $3,649,703 [$3,542,817] to the University of
Houston--Victoria;
(C) $7,959,137 [$7,726,043] to the University of
Houston--Clear Lake; and
(D) $11,155,034 [$10,828,344] to the University
of Houston--Downtown;
(7) [(8)] to the following component institutions of
The Texas A&M University System:
(A) $11,825,139 [$11,478,824] to Texas A&M
University--Corpus Christi;
(B) $7,687,534 [$7,462,394] to Texas A&M
International University;
(C) $9,125,307 [$8,858,060] to Texas A&M
University--Kingsville;
(D) $7,671,155 [$7,446,495] to West Texas A&M
University;
(E) $11,459,464 [$11,123,859] to Texas A&M
University--Commerce; and
(F) $2,112,129 [$2,050,273] to Texas A&M
University--Texarkana; and
(8) [(9)] $8,662,500 to the Texas State Technical
College System Administration and the following component
campuses, but not its extension centers or programs:
(A) Texas State Technical College-Harlingen;
(B) Texas State Technical College--Marshall;
(C) Texas State Technical College--West Texas;
(D) Texas State Technical College--Waco;
(E) Texas State Technical College--Fort Bend;
and
(F) Texas State Technical College--North Texas.
SECTION 6. AMENDMENT. Section 65.02(a), Education Code, is
amended to read as follows:
(a) The University of Texas System is composed of the
following institutions and entities:
(1) The University of Texas at Arlington[, including:
[(A) The University of Texas Institute of Urban
Studies at Arlington; and
[(B) The University of Texas School of Nursing at
Arlington];
(2) The University of Texas at Austin[, including:
[(A) The University of Texas Marine Science
Institute;
[(B) The University of Texas McDonald
Observatory at Mount Locke; and
[(C) The University of Texas School of Nursing at
Austin];
(3) The University of Texas at Dallas;
(4) The University of Texas at El Paso[, including The
University of Texas School of Nursing at El Paso];
(5) The University of Texas [of the] Permian Basin;
(6) The University of Texas at San Antonio[, including
the University of Texas Institute of Texan Cultures at San
Antonio];
(7) The University of Texas Southwestern Medical
Center[, including:
[(A) The University of Texas Southwestern
Medical School at Dallas;
[(B) The University of Texas Southwestern
Graduate School of Biomedical Sciences at Dallas; and
[(C) The University of Texas Southwestern Allied
Health Sciences School at Dallas];
(8) The University of Texas Medical Branch at
Galveston[, including:
[(A) The University of Texas Medical School at
Galveston;
[(B) The University of Texas Graduate School of
Biomedical Sciences at Galveston;
[(C) The University of Texas School of Allied
Health Sciences at Galveston;
[(D) The University of Texas Marine Biomedical
Institute at Galveston;
[(E) The University of Texas Hospitals at
Galveston; and
[(F) The University of Texas School of Nursing at
Galveston];
(9) The University of Texas Health Science Center at
Houston[, including:
[(A) The University of Texas Medical School at
Houston;
[(B) The University of Texas Dental Branch at
Houston;
[(C) The University of Texas Graduate School of
Biomedical Sciences at Houston;
[(D) The University of Texas School of Health
Information Sciences at Houston;
[(E) The University of Texas School of Public
Health at Houston;
[(F) The University of Texas Speech and Hearing
Institute at Houston; and
[(G) The University of Texas School of Nursing at
Houston];
(10) The University of Texas Health Science Center at
San Antonio[, including:
[(A) The University of Texas Medical School at
San Antonio;
[(B) The University of Texas Dental School at San
Antonio;
[(C) The University of Texas Graduate School of
Biomedical Sciences at San Antonio;
[(D) The University of Texas School of Allied
Health Sciences at San Antonio; and
[(E) The University of Texas School of Nursing at
San Antonio];
(11) The University of Texas M. D. Anderson Cancer
Center[, including:
[(A) The University of Texas M. D. Anderson
Hospital;
[(B) The University of Texas M. D. Anderson Tumor
Institute; and
[(C) The University of Texas M. D. Anderson
Science Park]; [and]
(12) Stephen F. Austin State University, a member of
The University of Texas System;
(13) The University of Texas at Tyler; and
(14) The University of Texas Rio Grande Valley [The
University of Texas Health Science Center--South Texas, including
The University of Texas Medical School--South Texas, if established
under Subchapter N, Chapter 74].
SECTION 7. EFFECTIVE DATE. (a) Except as otherwise
provided by this section, this Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act has no effect.
(b) Section 62.021(a), Education Code, as amended by this
Act, takes effect September 1, 2023.