By: Springer, Perry, Seliger S.B. No. 447
(In the Senate - Filed January 26, 2021; March 9, 2021, read
first time and referred to Committee on Higher Education;
March 29, 2021, reported favorably by the following vote: Yeas 8,
Nays 0; March 29, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of Midwestern State University to the
Texas Tech University System, to certain fees charged by that
system's governing board, and to mandatory venue for actions
brought against that system or its institution, officers, or
employees.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. AMENDMENT. Chapter 109, Education Code, is
amended by adding Subchapter E to read as follows:
SUBCHAPTER E. MIDWESTERN STATE UNIVERSITY
Sec. 109.201. ESTABLISHMENT; SCOPE. (a) Midwestern State
University is a general academic teaching institution located in
the city of Wichita Falls.
(b) The university is a component of the Texas Tech
University System and is under the management and control of the
board of regents of the Texas Tech University System. The board of
regents has the same powers and duties concerning Midwestern State
University as are conferred on the board by statute concerning
Texas Tech University.
Sec. 109.202. COURSES AND DEGREES; ADMINISTRATION.
(a) The university shall offer undergraduate-level and
graduate-level programs.
(b) The board of regents may approve 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. 109.203. UNIVERSITY OF THE FIRST RANK. The board of
regents shall build and operate the university as a public liberal
arts university of the first rank to offer the university's
students, consistent with the university's mission, preparation
for excellence in a variety of careers and exploration of a variety
of interests. The university shall be equipped as necessary to do
its work as well as comparable public institutions of higher
education in this state.
Sec. 109.204. UNIVERSITY MUSEUM. The Texas Higher
Education Coordinating Board shall include in the funding formula
applicable to the university funding for the operation and
maintenance of the museum acquired by the university in accordance
with former Section 103.11.
Sec. 109.205. 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; ABOLITION
OF BOARD OF REGENTS. The governance, control, management, and
property of Midwestern State University are transferred from the
board of regents of Midwestern State University to the board of
regents of the Texas Tech University System. The transfer is
governed by Sections 3 through 8 of this Act. Following the
transfer, the board of regents of Midwestern State University is
abolished.
SECTION 3. POWERS AND DUTIES; RULES AND POLICIES.
(a) When the transfer takes effect, the board of regents of the
Texas Tech University System shall govern, operate, manage, and
control Midwestern State University and all land, buildings,
facilities, improvements, equipment, supplies, and property
belonging to and constituting Midwestern State University under the
powers and duties conferred by law on the board of regents.
(b) Midwestern State University may continue to award
degrees in the same disciplines and of the same academic standing
after the transfer authorized by this Act as those in which degrees
were awarded by the university before this Act, subject to the
authority of the Texas Higher Education Coordinating Board
regarding existing degree programs.
(c) Rules and policies adopted by the board of regents of
Midwestern State University 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 Tech University System. The board of regents of the Texas
Tech 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 Midwestern State
University or the Texas Public Finance Authority for and on behalf
of Midwestern State University, including bonds, are considered
ratified, confirmed, and validated by the board of regents of the
Texas Tech University System on the effective date of the transfer.
In those contracts and written obligations, the board of regents of
the Texas Tech University System is substituted for and stands and
acts in the place of the board of regents of Midwestern State
University or the Texas Public Finance Authority, as applicable, to
the extent permitted by law.
SECTION 5. TUITION AND FEES. The tuition and fees
authorized by the board of regents of Midwestern State University
before the transfer of governance under this Act remain in effect
until the board of regents of the Texas Tech University System
authorizes a different amount of tuition and fees for the
university as provided by law.
SECTION 6. EFFECT OF TRANSFER ON STUDENTS AND EMPLOYEES.
(a) The transfer of the governance of Midwestern State University
under this Act does not affect the status of any student of the
university enrolled at the university when the transfer takes
effect.
(b) The transfer of the governance of Midwestern State
University under this Act does not affect the employment status or
accrued benefits of any person employed by the university when the
transfer takes effect.
SECTION 7. 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 Midwestern State
University under the governance of the board of regents of the
university are transferred to the board of regents of the Texas Tech
University System for the use and benefit of the university. Other
funds held for the use and benefit of Midwestern State University
shall continue to be available for the use and benefit of the
university notwithstanding the change in governance made by this
Act.
SECTION 8. LEGISLATIVE INTENT; ROLE OF COORDINATING BOARD.
It is the intent of the legislature that the transfer of the
governance of Midwestern State University from the board of regents
of the university to the board of regents of the Texas Tech
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 9. AMENDMENT. Section 54.508(a), Education Code,
is amended to read as follows:
(a) The board of regents of the Texas Tech University System
may charge each student registered at a component institution of
the Texas Tech University System a medical services fee not to
exceed $100 for each semester or [of the regular] term [or 12-week
summer session and not to exceed $50 for each six-week or shorter
term of the summer session].
SECTION 10. AMENDMENT. Section 54.509, Education Code, is
amended by amending Subsections (a) and (b) and adding Subsection
(e) to read as follows:
(a) If approved by student vote, the board of regents of the
Texas Tech University System may charge each student enrolled at a
component institution of the Texas Tech University System a
recreation fee not to exceed $150 [$100] per semester or $75 [$50]
per six-week summer term to be used to purchase equipment for and to
finance, construct, operate, renovate, and maintain the student
recreation facilities and programs at the institution.
(b) The fee may not be increased by more than 10 percent from
one academic year to the next unless the increase is approved by:
(1) a majority of students voting on the issue in a
general student election called for that purpose; or
(2) a majority vote of the student government at the
institution.
(e) The board of regents may pledge the fees imposed under
this section to pay obligations issued for authorized purposes
pursuant to the revenue financing system of the Texas Tech
University System.
SECTION 11. AMENDMENT. Section 55.13(c), Education Code,
is amended to read as follows:
(c) Notwithstanding any other provision of this section,
with respect to all bonds authorized to be issued by [Midwestern
State University or] Texas Southern University, the Texas Public
Finance Authority shall exercise the authority of a board to issue
bonds on behalf of that university [those institutions], in the
manner provided by this subchapter, including the authority to
issue refunding bonds under Section 55.19. In connection with the
issuance of bonds under this chapter, the Texas Public Finance
Authority has all the rights and duties granted or assigned to and
is subject to the same conditions as a board under this chapter.
SECTION 12. AMENDMENT. Subchapter B, Chapter 55, Education
Code, is amended by adding Section 55.17893 to read as follows:
Sec. 55.17893. MIDWESTERN STATE UNIVERSITY. (a) In
addition to the other authority granted by this subchapter, the
board of regents of the Texas Tech University System may issue bonds
in accordance with this subchapter and in accordance with a system
wide revenue financing program adopted by the board in the
aggregate principal amounts not to exceed the amounts previously
authorized for Midwestern State University by Sections 55.1727,
55.1737, 55.1757, and 55.1787, 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 55.1727, 55.1737, 55.1757, or
55.1787 may be used only at Midwestern State University for the
purposes for which the bonds were authorized to be issued for the
university under Section 55.1727, 55.1737, 55.1757, or 55.1787, 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 Tech University System. 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 Tech
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.
(e) The board of regents of the Texas Tech University System
may issue refunding bonds under Chapter 1207, Government Code, to
refund all or any part of the outstanding bonds, notes, or other
general or special obligations issued by or for the benefit of
Midwestern State University, including obligations previously
issued by the Texas Public Finance Authority. For purposes of
Chapter 1207, Government Code, and in connection with the issuance
of any such refunding bonds, the board of regents of the Texas Tech
University System shall be considered the "issuer" of the
outstanding bonds, notes, or obligations of Midwestern State
University which are being refunded.
SECTION 13. 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) [$4,933,200 to Midwestern State University;
[(2)] to the following component institutions of the
University of North Texas System:
(A) $37,346,563 to the University of North Texas;
(B) $15,125,502 to the University of North Texas
Health Science Center at Fort Worth; and
(C) $3,354,441 to the University of North Texas
at Dallas;
(2) [(3)] $11,277,793 to Stephen F. Austin State
University;
(3) [(4)] to the following component institutions of
the Texas State University System:
(A) $13,141,181 to Lamar University;
(B) $2,553,130 to the Lamar Institute of
Technology;
(C) $1,488,396 to Lamar State College--Orange;
(D) $2,217,102 to Lamar State College--Port
Arthur;
(E) $18,236,811 to Sam Houston State University;
(F) $37,606,478 to Texas State University;
(G) $2,151,723 to Sul Ross State University; and
(H) $472,890 to Sul Ross State University-Rio
Grande College;
(4) [(5)] $11,719,335 to Texas Southern University;
(5) [(6)] to the following component institutions of
the Texas Tech University System:
(A) $49,874,746 to Texas Tech University;
(B) $21,652,392 to Texas Tech University Health
Sciences Center;
(C) $6,792,999 to Angelo State University; [and]
(D) $5,557,572 to Texas Tech University Health
Sciences Center--El Paso; and
(E) $4,933,200 to Midwestern State University;
(6) [(7)] $14,554,133 to Texas Woman's University;
(7) [(8)] to the following component institutions of
the University of Houston System:
(A) $54,514,004 to the University of Houston;
(B) $3,542,817 to the University of
Houston--Victoria;
(C) $7,726,043 to the University of
Houston--Clear Lake; and
(D) $10,828,344 to the University of
Houston--Downtown;
(8) [(9)] to the following component institutions of
The Texas A&M University System:
(A) $11,478,824 to Texas A&M University--Corpus
Christi;
(B) $7,462,394 to Texas A&M International
University;
(C) $8,858,060 to Texas A&M
University--Kingsville;
(D) $7,446,495 to West Texas A&M University;
(E) $11,123,859 to Texas A&M
University--Commerce; and
(F) $2,050,273 to Texas A&M
University--Texarkana; and
(9) [(10)] $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 14. AMENDMENT. Subchapter A, Chapter 109,
Education Code, is amended by adding Section 109.005 to read as
follows:
Sec. 109.005. MANDATORY VENUE. (a) Venue for a suit filed
against the board or a member of the board in the member's official
capacity is in Lubbock County.
(b) Venue for a suit filed against the Texas Tech University
System, any component of the Texas Tech University System, or any
officer or employee of the Texas Tech University System or
component thereof is in the county in which the primary office of
the chief executive officer of the system or component, as
applicable, is located.
(c) This section does not waive any defense to or immunity
from suit or liability that may be asserted by an entity or
individual described by this section.
(d) In case of a conflict between this section and any other
law, this section controls.
SECTION 15. AMENDMENT. Section 1232.101(a), Government
Code, is amended to read as follows:
(a) With respect to all bonds authorized to be issued by or
on behalf of the Texas Military Department, Parks and Wildlife
Department, Texas Agricultural Finance Authority, Texas Low-Level
Radioactive Waste Disposal Authority, [Midwestern State
University,] and Texas Southern University, the authority has the
exclusive authority to act on behalf of those entities in issuing
bonds on their behalf. In connection with those issuances and with
the issuance of refunding bonds on behalf of those entities, the
authority is subject to all rights, duties, and conditions
surrounding issuance previously applicable to the issuing entity
under the statute authorizing the issuance. A reference in an
authorizing statute to the entity on whose behalf the bonds are
being issued applies equally to the authority in its capacity as
issuer on behalf of the entity.
SECTION 16. AMENDMENT. Section 501.022, Labor Code, is
amended by amending Subsection (a) and adding Subsection (g) to
read as follows:
(a) An eligible employee of Texas Tech University, Texas
Tech University Health Sciences Center, Angelo State University,
Texas Tech University System Administration, Texas Tech University
Health Sciences Center at El Paso, Midwestern State University, or
another agency under the direction and control of the board of
regents of the Texas Tech University System is entitled to
participate in the workers' compensation program for state
employees provided under this chapter.
(g) For purposes of this chapter, Midwestern State
University is a state agency and shall act in the capacity of
employer.
SECTION 17. TRANSITION. Section 109.005, Education Code,
as added by this Act, applies only to an action brought against the
board of regents of the Texas Tech University System or a member of
that board in the member's official capacity, the Texas Tech
University System, a component institution of that system, or an
officer or employee of that system or a component institution
thereof on or after the effective date of this Act.
SECTION 18. REPEALER. The following provisions of the
Education Code are repealed:
(1) Section 54.241(h);
(2) Sections 54.5082, 54.518, 54.5441, 54.5442,
55.1727, 55.1737, 55.1757, and 55.1787; and
(3) Chapter 103.
SECTION 19. EFFECTIVE DATE. This Act takes effect
September 1, 2021.
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