S.B. No. 1055
 
 
 
 
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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1055 passed the Senate on
  April 17, 2023, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1055 passed the House on
  April 26, 2023, by the following vote:  Yeas 148, Nays 0.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor