By: Nichols  S.B. No. 1055          (In the Senate - Filed February 21, 2023; March 3, 2023,   read first time and referred to Subcommittee on Higher Education;   April 11, 2023, reported adversely, with favorable Committee   Substitute from Committee on Education by the following vote:  Yeas   12, Nays 0; April 11, 2023, sent to printer.)Click here to see the committee vote     COMMITTEE SUBSTITUTE FOR S.B. No. 1055 By:  Springer     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 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.          (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 in a group benefits   insurance program of Stephen F. Austin State University under   Chapter 1551, Insurance Code, or who would be eligible to   participate in that program at a future date as a retiree, is   eligible to participate in the uniform benefits insurance program   of The University of Texas System under Chapter 1601, Insurance   Code, 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. On behalf of those   participants under Chapter 1551, Insurance Code, who become   participants under Chapter 1601, Insurance Code, the Employees   Retirement System of Texas shall transfer to The University of   Texas System a lump sum actuarially determined to preserve existing   equities within the respective insurance programs. The systems   shall agree on the amount and the date of the transfer.          (i)  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.     * * * * *