Relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.

89(R) HB 5150 - House Committee Report version - Bill Text

89R21155 AND-D

By: Louderback, Lalani

H.B. No. 5150

Substitute the following for H.B. No. 5150:

By: Tinderholt

C.S.H.B. No. 5150

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 8 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. TUITION AND FEES. The tuition and fees

authorized by the board of regents of the University of Houston

System before the transfer of governance under this Act remain in

effect until the board of regents of The Texas A&M 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) All students of the University of Houston--Victoria shall be

considered students of Texas A&M University--Victoria on the

effective date of this Act. The transfer of the governance of the

University of Houston--Victoria under this Act does not otherwise

affect the status of any student of the university.

(b) All employees of the University of Houston--Victoria

shall be considered employees of Texas A&M University--Victoria on

the effective date of this Act. The transfer of the governance of

the University of Houston--Victoria under this Act does not

otherwise affect the employment status or accrued benefits of a

person employed by the university when the transfer takes effect.

SECTION 7. GROUP BENEFITS. (a) A person who is a

participant or is eligible to participate in a group benefits

insurance program of the University of Houston--Victoria under

Chapter 1551, Insurance Code, or who would be eligible to

participate at a future date as a retiree, on the date the transfer

takes effect, as authorized by this Act, is eligible to participate

in the uniform insurance benefits under Chapter 1601, Insurance

Code, as an employee, current retiree, or vested former employee of

Texas A&M University--Victoria, or as a dependent or surviving

dependent, as if all benefits-eligible service credit had been

earned in a benefits-eligible position at Texas A&M

University--Victoria. 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.

(b) The Employees Retirement System of Texas, Texas A&M

University--Victoria, and The Texas A&M University System shall

take all actions necessary to implement Subsection (a) of this

section. For that purpose:

(1) the Employees Retirement System of Texas shall

provide to The Texas A&M University 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;

(2) Texas A&M University--Victoria and The Texas A&M

University System shall ensure that the Employees Retirement System

of Texas receives full contributions for each month in which

employees of Texas A&M University--Victoria are covered by the

group benefits insurance program under Chapter 1551, Insurance

Code; and

(3) the Employees Retirement System of Texas shall

transfer any funds designated for higher education employees under

Chapter 1551, Insurance Code, for the purpose of providing group

benefits coverage for the employees of the University of

Houston--Victoria who will become employees of Texas A&M

University--Victoria to The Texas A&M University System upon the

effective date of this Act.

SECTION 8. 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 9. AMENDMENT. Section 11.179(a), Education Code,

is amended to read as follows:

(a) The board of trustees of a school district may adopt a

policy allowing the consumption, possession, and sale of an

alcoholic beverage at an event held at a performing arts facility

owned by the district if:

(1) the facility is leased to a nonprofit organization

for an event not sponsored or sanctioned by the district; and

(2)
either the board of trustees of the district had

authority to adopt a policy under this section on or before January

1, 2025, or
the district is located in:

(A) a county:

(i) that has a population of not more than

300,000; and

(ii) in which a component university of the

University of Houston System is located; or

(B) a county in which is located a facility

described by Subdivision (1) within two miles of two or more

stadiums with a capacity of at least 40,000 people.

SECTION 10. AMENDMENT. The heading to Section 54.5405,

Education Code, is amended to read as follows:

Sec. 54.5405. STUDENT CENTER FEE;
TEXAS A&M

UNIVERSITY--VICTORIA
[
UNIVERSITY OF HOUSTON-VICTORIA
].

SECTION 11. AMENDMENT. Sections 54.5405(a) and (d),

Education Code, are amended to read as follows:

(a) The board of regents of
The Texas A&M
[
the
] University

[
of Houston
] System may impose on each student enrolled at
Texas A&M

University--Victoria
[
the University of Houston-Victoria
] a

student center fee to be used only for the purpose of financing,

constructing, operating, maintaining, improving, and equipping a

student center at the university. A fee imposed under this section

is in addition to any use or service fee authorized to be imposed

under other law.

(d) Revenue from a fee imposed under this section shall be

deposited to the credit of an account known as the "
Texas A&M

University--Victoria
[
University of Houston-Victoria
] Student

Center Fee Account" under the control of the university's student

fee advisory committee. Annually, the committee shall submit to the

president of the university its recommendation for any change to

the amount of the fee and a complete and itemized budget for the

student center together with a complete report of all student

center activities conducted during the past year and all

expenditures made in connection with those activities. The

president shall submit the budget to the board of regents as part of

the university's institutional budget. The board of regents may

make changes in the budget that the board determines are necessary.

SECTION 12. AMENDMENT. The heading to Section 54.5406,

Education Code, is amended to read as follows:

Sec. 54.5406. HEALTH AND WELLNESS CENTER FEE;
TEXAS A&M

UNIVERSITY--VICTORIA
[
UNIVERSITY OF HOUSTON-VICTORIA
].

SECTION 13. AMENDMENT. Sections 54.5406(a) and (d),

Education Code, are amended to read as follows:

(a) The board of regents of
The Texas A&M
[
the
] University

[
of Houston
] System may charge each student enrolled at
Texas A&M

University--Victoria
[
the University of Houston-Victoria
] a health

and wellness center fee. The fee may be used only for the purpose of

financing, constructing, operating, maintaining, improving, and

equipping a health and wellness center at
Texas A&M

University--Victoria
[
the University of Houston-Victoria
]. A fee

charged under this section is in addition to any use or service fee

authorized to be charged under other law.

(d) Revenue from a fee charged under this section shall be

deposited to the credit of an account known as the
Texas A&M

University--Victoria
[
University of Houston-Victoria
] Health and

Wellness Center Fee Account under the control of the university's

student fee advisory committee. Annually, the committee shall

submit to the president of the university its recommendation for

any change to the amount of the fee and a complete and itemized

budget for the health and wellness center together with a complete

report of all health and wellness center activities conducted

during the past year and all expenditures made in connection with

those activities. The president shall submit the budget to the

board of regents as part of the university's institutional

budget. The board of regents may make changes in the budget that

the board determines are necessary.

SECTION 14. 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 15. 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 16. 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 17. AMENDMENT. Section 55.1783(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 and facilities, including roads and

related infrastructure, for projects 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 for the following institutions or entities, not to exceed

the following aggregate principal amounts for the projects

specified, as follows:

(1) the University of Houston:

(A) $63 million for construction of a health and

biomedical sciences center; and

(B) $54 million for construction of a new

academic building located in Sugar Land, Texas;

(2) the University of Houston--Clear Lake:

(A) $24,624,000 for construction of a health

sciences and classroom building located in Pearland, Texas; and

(B) $54 million for construction of a STEM and

classroom building;

(3) the University of Houston--Downtown, $60 million

for construction of a science and technology building;

[
(4)

the University of Houston--Victoria, $60 million

for academic expansion and land acquisition;
] and

(4)
[
(5)
] the University of Houston System,

$46,832,000 for land acquisition for construction of a building in

the area near Katy, Texas.

SECTION 18. AMENDMENT. Section 55.1793(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 and facilities, including roads and

related infrastructure, for projects 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 for the following institutions, not to exceed the

following aggregate principal amounts for the projects specified,

as follows:

(1) the University of Houston System, $59,897,111 for

construction of a medical research facility;

(2) the University of Houston:

(A) $40 million for construction of the Hobby

School of Public Affairs Building;

(B) $52,409,972 for construction of the IDEA Lab;

and

(C) $52,409,972 for construction of the Sugar

Land Academic Building 2;

(3) the University of Houston--Clear Lake,

$44,922,833 for renovation of the Bayou Building, the Delta

Building, and the Student Services and Classroom Building;
and

(4) the University of Houston--Downtown, $44,922,833

for renovation of existing buildings and other campus

infrastructure upgrades and for the construction of the Police

Department and Criminal Justice Academy Building[
; and

[
(5)

the University of Houston--Victoria, $44,922,833

for renovation of existing buildings and other campus

infrastructure upgrades
].

SECTION 19. 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, 55.1753, 55.1783, and 55.1793, 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, 55.1753, 55.1783, or 55.1793 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, 55.1753, 55.1783, or 55.1793, 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 20. 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 to the University of North Texas;

(B) $15,581,837 to the University of North Texas

Health Science Center at Fort Worth; and

(C) $3,455,644 to the University of North Texas

at Dallas;

(2) to the following component institutions of the

Texas State University System:

(A) $13,537,649 to Lamar University;

(B) $2,630,158 to the Lamar Institute of

Technology;

(C) $1,533,301 to Lamar State College--Orange;

(D) $2,283,992 to Lamar State College--Port

Arthur;

(E) $18,787,013 to Sam Houston State University;

(F) $38,741,061 to Texas State University;

(G) $2,216,640 to Sul Ross State University; and

(H) $487,157 to Sul Ross State University-Rio

Grande College;

(3) $12,072,906 to Texas Southern University;

(4) to the following component institutions of the

Texas Tech University System:

(A) $51,379,461 to Texas Tech University;

(B) $22,305,642 to Texas Tech University Health

Sciences Center;

(C) $6,997,943 to Angelo State University;

(D) $5,725,243 to Texas Tech University Health

Sciences Center--El Paso; and

(E) $5,082,034 to Midwestern State University;

(5) $14,993,229 to the component institutions of the

Texas Woman's University System, allocated as determined by the

board of regents of the system;

(6) to the following component institutions of the

University of Houston System:

(A) $56,158,685 to the University of Houston;

(B) [
$3,649,703 to the University of

Houston--Victoria;

[
(C)
] $7,959,137 to the University of

Houston--Clear Lake; and

(C)
[
(D)
] $11,155,034 to the University of

Houston--Downtown;

(7) to the following component institutions of The

Texas A&M University System:

(A) $11,825,139 to Texas A&M University--Corpus

Christi;

(B) $7,687,534 to Texas A&M International

University;

(C) $9,125,307 to Texas A&M

University--Kingsville;

(D) $7,671,155 to West Texas A&M University;

(E) $11,459,464 to Texas A&M

University--Commerce; [
and
]

(F) $2,112,129 to Texas A&M

University--Texarkana; and

(G)

$3,649,703 to Texas A&M

University--Victoria; and

(8) $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 21. REPEALER. The following provisions of the

Education Code are repealed:

(1) Section 55.173; and

(2) Subchapter G, Chapter 111.

SECTION 22. TRANSITION. Not later than June 1, 2025, the

board of regents of the University of Houston System and the board

of regents of The Texas A&M University System shall enter into a

memorandum of understanding relating to the transfer of the

administration of the University of Houston--Victoria to The Texas

A&M University System as provided by this Act. The memorandum of

understanding must include a transition plan with a timetable and

specific steps, including the methods for the transfer on September

1, 2025, of all powers, duties, obligations, rights, contracts,

leases, records, real or personal property, and unspent and

unobligated appropriations and other funds of the University of

Houston--Victoria to The Texas A&M University System.

SECTION 23. EFFECTIVE DATE. This Act takes effect

September 1, 2025.