82R8527 KSD-D By: Morrison H.B. No. 2556 A BILL TO BE ENTITLED AN ACT relating to the transfer of the University of Houston--Victoria to The Texas A&M University System. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. AMENDMENT. Chapter 87, Education Code, is amended by adding Subchapter M to read as follows: SUBCHAPTER M. TEXAS A&M UNIVERSITY--VICTORIA Sec. 87.881. ESTABLISHMENT; SCOPE. (a) Texas A&M University--Victoria is a general academic teaching institution located in the city of Victoria. (b) The university is a component institution of The Texas A&M University System and is under the management and control of the board of regents of The Texas A&M University System. The board of regents has the same powers and duties concerning Texas A&M University--Victoria as are conferred on the board by statute concerning Texas A&M University. Sec. 87.882. COURSES AND DEGREES; ADMINISTRATION. (a) The university shall offer undergraduate and graduate level programs. (b) The board of regents may prescribe courses leading to appropriate degrees and adopt other rules necessary for the operation and management of the university. (c) The university is subject to the authority of the Texas Higher Education Coordinating Board. Sec. 87.883. GIFTS AND GRANTS. The board of regents may solicit, accept, and administer gifts and grants for the use and benefit of the university. SECTION 2. TRANSFER OF GOVERNANCE OF UNIVERSITY. The governance, control, management, and property of the University of Houston--Victoria are transferred from the board of regents of the University of Houston System to the board of regents of The Texas A&M University System. The transfer is governed by Sections 3 through 7 of this Act. SECTION 3. POWERS AND DUTIES; RULES AND POLICIES. (a) When the transfer takes effect, the board of regents of The Texas A&M University System shall govern, operate, manage, and control the University of Houston--Victoria and all land, buildings, facilities, improvements, equipment, supplies, and property belonging to and constituting the University of Houston--Victoria under the powers and duties conferred by law on the board of regents. (b) Rules and policies adopted by the board of regents of the University of Houston System to govern the university that are in effect when the transfer takes effect are continued in effect until adopted, repealed, or superseded by the board of regents of The Texas A&M University System. The board of regents of The Texas A&M University System may adopt rules and policies applicable to the university in anticipation of the transfer authorized by this Act. SECTION 4. CONTRACTS AND WRITTEN OBLIGATIONS, INCLUDING BONDS. Contracts and written obligations of every kind and character entered into by the board of regents of the University of Houston System for and on behalf of the University of Houston--Victoria, including bonds, are considered ratified, confirmed, and validated by the board of regents of The Texas A&M University System on the effective date of the transfer. In those contracts and written obligations, the board of regents of The Texas A&M University System is substituted for and stands and acts in the place of the board of regents of the University of Houston System to the extent permitted by law. SECTION 5. EFFECT OF TRANSFER ON STUDENTS AND EMPLOYEES. (a) The transfer of the governance of the University of Houston--Victoria under this Act does not affect the status of any student of the university. (b) The transfer of the governance of the University of Houston--Victoria under this Act does not affect the employment status or accrued benefits of a person employed by the university when the transfer takes effect. SECTION 6. CURRENT FUNDING. All funds that, on the effective date of the transfer, have been appropriated or dedicated to or are held for the use and benefit of the University of Houston--Victoria under the governance of the board of regents of the University of Houston System are transferred to the board of regents of The Texas A&M University System for the use and benefit of Texas A&M University--Victoria. SECTION 7. LEGISLATIVE INTENT; ROLE OF COORDINATING BOARD. It is the intent of the legislature that the transfer of the governance of the University of Houston--Victoria from the board of regents of the University of Houston System to the board of regents of The Texas A&M University System be made without disrupting the students, faculty, staff, or programs of the university. If those boards of regents are unable to agree as to any matter relating to the transfer, the Texas Higher Education Coordinating Board on application of either board of regents shall resolve the disagreement consistent with the intent of this section and the provisions of this Act as the coordinating board determines is in the best interest of this state and the institutions under the governance of the boards of regents. The coordinating board may issue any orders or take any other action the coordinating board considers appropriate to enforce this section or to facilitate the transfer consistent with this Act and the intent of the legislature. SECTION 8. AMENDMENT. Section 55.1723(a), Education Code, is amended to read as follows: (a) In addition to the other authority granted by this subchapter, the board of regents of the University of Houston System may acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, facilities, roads, or related infrastructure for the following institutions to be financed by the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board in an aggregate principal amount not to exceed the following amounts: (1) the University of Houston, $12 million; and (2) the University of Houston--Downtown, $7.5 million[; and [(3) the University of Houston--Victoria, $10 million]. SECTION 9. AMENDMENT. Section 55.1733(a), Education Code, is amended to read as follows: (a) In addition to the other authority granted by this subchapter, the board of regents of the University of Houston System may issue in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board bonds for the following institutions not to exceed the following aggregate principal amounts to finance projects specified as follows: (1) the University of Houston, $51 million to construct science and engineering research and classroom facilities; (2) the University of Houston--Downtown, $18,232,500 to construct a classroom building; and (3) the University of Houston--Clear Lake, $30,918,750 to construct a student services and classroom building[; and [(4) the University of Houston--Victoria, $2,805,000 to remodel the University West facility, acquire and renovate a facility services building, and renovate and expand a facility for the center for community initiatives]. SECTION 10. AMENDMENT. Section 55.1753(a), Education Code, is amended to read as follows: (a) In addition to the other authority granted by this subchapter, the board of regents of the University of Houston System may acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for the following institutions, to be financed through the issuance of bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board, in aggregate principal amounts not to exceed the following: (1) the University of Houston, $57,600,000 for renovation of science laboratories; (2) the University of Houston--Clear Lake, $10,604,808 for Arbor Building renovations and additions; and (3) the University of Houston--Downtown, $31,626,000 for a classroom building at Shea Street[; and [(4) the University of Houston--Victoria: [(A) $22,900,000 for an academic building at the University of Houston System Center at Sugar Land; [(B) $6,719,400 for regional economic development; and [(C) $1,800,000 for allied health facilities]. SECTION 11. AMENDMENT. Subchapter B, Chapter 55, Education Code, is amended by adding Section 55.17812 to read as follows: Sec. 55.17812. TEXAS A&M UNIVERSITY--VICTORIA. (a) In addition to the other authority granted by this subchapter, the board of regents of The Texas A&M University System may issue bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board in the aggregate principal amounts not to exceed the amounts previously authorized for the University of Houston--Victoria by Sections 55.1723, 55.173, 55.1733, and 55.1753, as those sections existed immediately before this section took effect, less any portion of those amounts for which bonds were issued under those sections for the university before the date this section took effect. Subject to Subsection (d), bonds issued under this section for an amount previously authorized by Section 55.1723, 55.173, 55.1733, or 55.1753 may be used only at Texas A&M University--Victoria for the purposes for which the bonds for the University of Houston--Victoria were authorized to be issued under Section 55.1723, 55.173, 55.1733, or 55.1753, as applicable. (b) The board may pledge irrevocably to the payment of those bonds all or any part of the revenue funds of an institution, branch, or entity of The Texas A&M University System, including student tuition charges. The amount of a pledge made under this subsection may not be reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding. (c) If sufficient funds are not available to the board to meet its obligations under this section, the board may transfer funds among institutions, branches, and entities of The Texas A&M University System to ensure the most equitable and efficient allocation of available resources for each institution, branch, or entity to carry out its duties and purposes. (d) Any portion of the proceeds of bonds authorized by this section for one or more specified projects that is not required for the specified projects may be used to renovate existing structures and facilities at the university. SECTION 12. AMENDMENT. Section 62.021, Education Code, is amended to read as follows: Sec. 62.021. ALLOCATIONS. (a) In each state fiscal year beginning with the state fiscal year ending August 31, 2011, 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) $3,559,433 to Midwestern State University; (2) $27,846,476 to the University of North Texas; (3) $8,771,265 to the University of North Texas Health Science Center at Fort Worth; (4) $12,311,123 to The University of Texas--Pan American; (5) $5,057,420 to The University of Texas at Brownsville; (6) $8,425,937 to Stephen F. Austin State University; (7) to the following component institutions of the Texas State University System: (A) $8,330,933 to Lamar University; (B) $2,332,463 to the Lamar Institute of Technology; (C) $1,235,752 to Lamar State College--Orange; (D) $1,244,694 to Lamar State College--Port Arthur; (E) $11,893,110 to Sam Houston State University; (F) $21,863,258 to Texas State University--San Marcos; (G) $1,625,061 to Sul Ross State University; and (H) $445,380 to Sul Ross State University-Rio Grande College; (8) $8,894,700 to Texas Southern University; (9) to the following component institutions of the Texas Tech University System: (A) $23,936,088 to Texas Tech University; (B) $16,973,569 to Texas Tech University Health Sciences Center; and (C) $3,743,027 to Angelo State University; (10) $10,169,695 to Texas Woman's University; (11) to the following component institutions of the University of Houston System: (A) $35,885,768 to the University of Houston; (B) [$2,393,921 to the University of Houston--Victoria; [(C)] $5,214,167 to the University of Houston--Clear Lake; and (C) [(D)] $7,435,238 to the University of Houston--Downtown; (12) to the following component institutions of The Texas A&M University System: (A) $7,139,067 to Texas A&M University--Corpus Christi; (B) $3,796,436 to Texas A&M International University; (C) $5,046,885 to Texas A&M University--Kingsville; (D) $4,652,995 to West Texas A&M University; (E) $5,193,232 to Texas A&M University--Commerce; [and] (F) $1,307,907 to Texas A&M University--Texarkana; and (G) $2,393,921 to Texas A&M University--Victoria; and (13) $5,775,000 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; and (D) Texas State Technical College--Waco. SECTION 13. REPEALER. The following provisions of the Education Code are repealed: (1) Section 55.173; and (2) Subchapter G, Chapter 111. SECTION 14. EFFECTIVE DATE. This Act takes effect September 1, 2011.