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Regular Session, 2011
HOUSE BILL NO. 537
BY REPRESENTATIVE TUCKER AND SENATOR APPEL
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
AN ACT1
To amend and reenact R.S. 17:3217, to enact R.S. 17:3230 and Part III-A of Chapter 26 of2
Title 17 of the Louisiana Revised Statutes of 1950, to be comprised of R.S. 17:3241,3
and to repeal R.S. 17:3215(2), relative to postsecondary education; to provide for the4
transfer of the University of New Orleans to the University of Louisiana System; to5
provide relative to the transfer of the facilities, resources, funds, obligations, and6
functions of the institution and related foundations; to provide for the transition7
responsibilities of the impacted institution and management boards and the division8
of administration; to provide for cooperative agreements; to provide relative to9
accreditation issues; to provide relative to funding; to provide relative to employees;10
to provide for effectiveness; and to provide for related matters.11
Be it enacted by the Legislature of Louisiana:12
Section 1. R.S. 17:3217 is hereby amended and reenacted and R.S. 17:3230 and Part13
III-A of Chapter 26 of Title 17 of the Louisiana Revised Statutes of 1950, comprised of R.S.14
17:3241, are hereby enacted to read as follows:15
§3217. University of Louisiana system System16
The University of Louisiana system System is composed of the institutions17
under the supervision and management of the Board of Trustees for State Colleges18
and Universities Board of Supervisors for the University of Louisiana System as19
follows:20
(1) Grambling State University at Grambling.21
(2) Louisiana Tech University at Ruston.22
(3) McNeese State University at Lake Charles.23
(4) Nicholls State University at Thibodaux.24 ENROLLEDHB NO. 537
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(5) Northeast Louisiana University of Louisiana at Monroe.1
(6)(5) Northwestern State University of Louisiana at Natchitoches.2
(7)(6) Southeastern Louisiana University at Hammond.3
(8) University of Southwestern Louisiana at Lafayette.4
(7) The University of Louisiana at Lafayette.5
(8) The University of Louisiana at Monroe.6
(9) The University of New Orleans.7
(9) (10) Any other college, university, school, institution, or program now8
or hereafter under the supervision and management of the Board of Trustees for State9
Colleges and Universities Board of Supervisors for the University of Louisiana10
System.11
* * *12
§3230. The University of New Orleans; transfer to the University of Louisiana13
System14
A.(1) Not later than August 1, 2011, the chancellor of the University of New15
Orleans shall submit a letter to the president of the Southern Association for Colleges16
and Schools, Commission on Colleges, stating his intent for a change in governance17
for the institution from the Board of Supervisors of Louisiana State University and18
Agricultural and Mechanical College to the Board of Supervisors for the University19
of Louisiana System.20
(2) The chancellor, faculty, and administration of the University of New21
Orleans shall take every action necessary to efficiently and expeditiously comply22
with all established time lines, requirements, and procedures to ensure that the23
requested change of governance may be effected immediately upon receipt of24
commission approval.25
B.(1) Pursuant to the authority granted to the legislature by Article VIII,26
Section 5(D)(3) of the Constitution of Louisiana to transfer an institution from one27
board to another by law enacted by two-thirds of the elected members of each house,28
the University of New Orleans, and the assets, funds, obligations, liabilities,29
programs, and functions related thereto, are hereby transferred to the University of30 ENROLLEDHB NO. 537
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Louisiana System and shall be under the management and supervision of the Board1
of Supervisors for the University of Louisiana System.2
(2) The provisions of this Subsection shall become effective immediately3
upon receipt of approval from the Southern Association for Colleges and Schools,4
Commission on Colleges, for the requested change in governance.5
C. The Board of Supervisors for the University of Louisiana System shall6
develop policies and procedures to resolve issues related to the status and tenure of7
employees of the University of New Orleans which may arise from the transfer of8
the institution to the University of Louisiana System.9
D. The Board of Supervisors of Louisiana State University and Agricultural10
and Mechanical College shall:11
(1) Continue to exercise its authority to supervise and manage the University12
of New Orleans until such time as the Southern Association for Colleges and13
Schools, Commission on Colleges, grants approval for the requested change in14
governance and transfer of the University of New Orleans to the University of15
Louisiana System.16
(2)(a) Work cooperatively and collaboratively with the Board of Supervisors17
for the University of Louisiana System to ensure that the requested transfer may be18
effected immediately upon receipt of commission approval for the change in19
governance.20
(b) Prior to receipt of such approval, enter into agreements to transfer as21
many administrative and supervisory functions as possible with respect to the22
University of New Orleans to the University of Louisiana System without adversely23
impacting the accreditation status of the institution.24
(3) Upon receipt of such approval, immediately transfer all assets, funds,25
facilities, property, obligations, liabilities, programs, and functions relative to the26
University of New Orleans to the University of Louisiana System.27
E. The Board of Supervisors of Louisiana State University and Agricultural28
and Mechanical College shall not:29
(1) Interfere with, or impede in any way, the processes to transfer the30 ENROLLEDHB NO. 537
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University of New Orleans to the University of Louisiana System.1
(2) Sell, transfer, or otherwise remove any asset or thing of value, movable2
or immovable, tangible or intangible, attributable to or owned by the University of3
New Orleans, or owned, leased by, or operated by any foundation related to such4
institution. In addition, access to any asset leased to any foundation related to the5
University of New Orleans shall not be restricted or denied.6
(3) Incur, transfer, or assign any debt or other responsibility or obligation to7
the University of New Orleans that is not properly attributable to the institution.8
(4)(a) Disproportionately reduce or reallocate the level of funding that would9
otherwise be allocated to the University of New Orleans pursuant to the10
postsecondary education funding formula.11
(b) Until such time as the University of New Orleans is transferred to the12
University of Louisiana System, impose any budget reductions or changes in funding13
allocations upon the institution without prior review and approval from the Joint14
Legislative Committee on the Budget.15
(5) Take any personnel action with regard to any instructional or16
administrative employee of the University of New Orleans without the prior approval17
of the Board of Supervisors for the University of Louisiana System.18
F. The commissioner of administration shall ensure that sufficient funds and19
resources are available to fully effect the transfer of the University of New Orleans20
to the University of Louisiana System. Such funding and resources shall not impact21
the Board of Regents' formula for the equitable distribution of funds to institutions22
of postsecondary education.23
G.(1) The University of New Orleans, pursuant to their agreement with the24
University of New Orleans Foundation, shall reimburse the state for the purchase of25
available insurance for indemnification and costs which may arise from the transfer;26
provided however, that the state of Louisiana shall indemnify and hold harmless the27
Board of Supervisors of Louisiana State University and Agricultural and Mechanical28
College and the Board of Supervisors for the University of Louisiana System for any29
liability and costs which may result from the transfer of existing contracts, financing,30 ENROLLEDHB NO. 537
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or immovable property.1
(2) Effective beginning with the 2011-2012 Fiscal Year, any and all funds2
previously paid by the University of New Orleans to the Board of Supervisors of3
Louisiana State University and Agricultural and Mechanical College shall be paid4
instead to the Board of Supervisors for the University of Louisiana System; however,5
the total amount of such payments shall not be less than that paid during the 2010-6
2011 Fiscal Year.7
H. The legislature shall appropriate sufficient funds to the Board of8
Supervisors of Louisiana State University and Agricultural and Mechanical College9
and the Board of Supervisors for the University of Louisiana System to fully effect10
the transfer of the University of New Orleans to the University of Louisiana System.11
* * *12
PART III-A. POSTSECONDARY EDUCATION DELIVERY SYSTEM FOR13
THE NEW ORLEANS REGION14
§3241. Legislative intent; goals15
A. It is the intent of the legislature that a comprehensive, integrated regional16
delivery system be provided for the delivery of public postsecondary education17
services in the New Orleans region which system will:18
(1) Provide a world class educational environment that will meet the19
academic needs and interests of every student, while providing each student with the20
support, assistance, and guidance necessary to attain his or her educational goals and21
aspirations.22
(2) Ensure that students who are academically unprepared are provided the23
educational resources they need to have a reasonable chance for success in their24
academic pursuits.25
(3) Raise the educational attainment of the population, improve the quality26
of life, and contribute to the economic well being of the New Orleans region.27
(4) Make optimal use of facilities, faculties, and other academic and fiscal28
resources associated with the public postsecondary institutions in the region.29
B. The legislature finds that these goals will best be accomplished through30 ENROLLEDHB NO. 537
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the following actions:1
(1) The Board of Regents shall adopt by not later than February 1, 2012, a2
written plan of action including time lines, deadlines, requirements, and procedures3
for achieving the goals specified in Subsection A of this Section as such goals relate4
to the powers, duties, functions, and responsibilities of the board provided by Article5
VIII, Section 5, of the Constitution of Louisiana and other applicable law. The board6
shall submit copies of the adopted action plan to the House Committee on Education7
and the Senate Committee on Education.8
(2) The Board of Supervisors of Southern University and Agricultural and9
Mechanical College, the Board of Supervisors for the University of Louisiana10
System, and the Board of Supervisors of Community and Technical Colleges each11
shall adopt by not later than February 1, 2012, a written plan of action including time12
lines, deadlines, requirements, and procedures for achieving the goals specified in13
Subsection A of this Section as they relate to the powers, duties, functions, and14
responsibilities of the boards provided by Article VIII, Section 5(E), of the15
Constitution of Louisiana and other applicable law. Each board also shall submit16
copies of its adopted action plan to the House Committee on Education and the17
Senate Committee on Education.18
Section 2. R.S. 17:3215(2) is hereby repealed.19
Section 3.(A) This Act is not intended to nor shall it be construed to impair the20
contractual or other obligations of any agency, office, board, commission, department, or21
political subdivision, or of the state as a result of the transfers of obligations in accordance22
with this Act. Upon the effective date of the transfer of the University of New Orleans, all23
such obligations of the Board of Supervisors of Louisiana State University and Agricultural24
and Mechanical College related to the University of New Orleans shall be deemed to be25
obligations of the Board of Supervisors for the University of Louisiana System to the same26
extent as if originally incurred by it.27
(B) All funds and revenues previously dedicated by authority of the constitution and28
laws of this state to the payment of any bonds related to the University of New Orleans shall29
continue to be collected and dedicated to such payments unless and until other provision is30 ENROLLEDHB NO. 537
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made for such payments in accordance with law. Upon the effective date of the transfer of1
the University of New Orleans, all acts relating to such bonds by the Board of Supervisors2
of Louisiana State University and Agricultural and Mechanical College shall be deemed to3
be the acts of the Board of Supervisors for the University of Louisiana System in the same4
manner and to the same extent as if originally so done.5
(C) No provision of this Act shall preclude a Memorandum of Understanding (MOU)6
under which a bonded indebtedness obligation of the Board of Supervisors of Louisiana7
State University and Agricultural and Mechanical College existing on the effective date of8
this Act would remain in force after an agreement that the Board of Supervisors for the9
University of Louisiana System would be responsible for all payments, costs, and other10
covenants contained in said bonded indebtedness. If the maintenance of bonded indebtedness11
by the Board of Supervisors of Louisiana State University and Agricultural and Mechanical12
College for properties or assets to be transferred to the Board of Supervisors for the13
University of Louisiana System is advantageous to the state of Louisiana, then the Board of14
Supervisors of Louisiana State University and Agricultural and Mechanical College shall15
make every effort to maintain such bonded indebtedness under a Memorandum of16
Understanding as described herein.17
(D) The provisions of this Section shall have the full force and effect of law.18
Section 4. This Act shall become effective upon signature by the governor or, if not19
signed by the governor, upon expiration of the time for bills to become law without signature20
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If21
vetoed by the governor and subsequently approved by the legislature, this Act shall become22
effective on the day following such approval.23
SPEAKER OF THE HOUSE OF REPRESENTATI VES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED: