The Victoria Region is strategically positioned to become an even stronger leader and economic engine for Texas. Numerous upcoming projects will benefit the entire state�rare earths processed in Victoria will fuel the high-tech centers in Austin, Taylor, Dallas, Houston, and San Antonio, while nuclear technologies tested and implemented here will enhance Texas' role in AI innovation. The region's materials and chemical initiatives present an opportunity for Texas to lead the future of the U.S. industrial sector.

To align the region with these goals, The Texas A&M University System, a world leader in engineering and other STEM fields, has agreed to take over the local university from the University of Houston system. The transition will occur once both systems have signed on to a memorandum of understanding. With the backing of The Texas A&M University System, the Victoria campus will be poised to enable the region, state, and country with enormous economic opportunity.

As proposed, S.B. 2361 amends current law relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the board of regents of The Texas A&M University System in SECTION 1 (Section 87.882, Education Code) and SECTION 3 of this bill.

Rulemaking authority previously granted to the board of regents of the University of Houston System is rescinded in SECTION 20 (Section 111.98, Education Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. AMENDMENT. Amends Chapter 87, Education Code, by adding Subchapter M, as follows:

SUBCHAPTER M. TEXAS A&M UNIVERSITY--VICTORIA

Sec. 87.881. ESTABLISHMENT; SCOPE. (a) Provides that Texas A&M University--Victoria (TAMUV) is a general academic teaching institution located in the city of Victoria.

(b) Provides that TAMUV is a component institution of The Texas A&M University System (TAMU System) and is under the management and control of the board of regents of the TAMU System. Provides that the board of regents has the same powers and duties concerning TAMUV as are conferred on the board by statute concerning Texas A&M University (TAMU).

Sec. 87.882. COURSES AND DEGREES; ADMINISTRATION. (a) Requires TAMUV to offer undergraduate and graduate level programs.

(b) Authorizes the board of regents to prescribe courses leading to appropriate degrees and adopt other rules necessary for the operation and management of TAMUV.

Sec. 87.883. GIFTS AND GRANTS. Authorizes the board of regents to solicit, accept, and administer gifts and grants for the use and benefit of TAMUV.

SECTION 2. TRANSFER OF GOVERNANCE OF UNIVERSITY. Provides that the governance, control, management, and property of The University of Houston--Victoria (UHV) are transferred from the board of regents of the University of Houston System (UH System) to the board of regents of the TAMU System. Provides that the transfer is governed by Sections 3 through 7 of this Act.

SECTION 3. POWERS AND DUTIES; RULES AND POLICIES. (a) Requires the board of regents of the TAMU System, when the transfer takes effect, to govern, operate, manage, and control UHV and all land, buildings, facilities, improvements, equipment, supplies, and property belonging to and constituting UHV under the powers and duties conferred by law on the board of regents.

(b) Provides that rules and policies adopted by the board of regents of the UH System to govern UHV that are in effect when the transfer takes effect are continued in effect until adopted, repealed, or superseded by the board of regents of TAMUV. Authorizes the board of regents of the TAMU System to adopt rules and policies applicable to TAMUV in anticipation of the transfer authorized by this Act.

SECTION 4. CONTRACTS AND WRITTEN OBLIGATIONS, INCLUDING BONDS. Provides that contracts and written obligations of every kind and character entered into by the board of regents of the UH System for and on behalf of UHV, including bonds, are considered ratified, confirmed, and validated by the board of regents of the TAMU System on the effective date of the transfer. Provides that, in those contracts and written obligations, the board of regents of the TAMU System is substituted for and stands and acts in the place of the board of regents of the UH System to the extent permitted by law.

SECTION 5. TUITION AND FEES. Provides that the tuition and fees authorized by the board of regents of the UH System before and transfer of governance under this Act remain in effect until the board of regents of the TAMU System authorizes a different amount of tuition and fees for UHV as provided by law.

SECTION 6. EFFECT OF TRANSFER ON STUDENTS AND EMPLOYEES. (a) Requires all students of UHV to become students of TAMUV on the effective date of this Act. Provides that the transfer of the governance of UHV under this Act does not otherwise affect the status of any student of UHV.

(b) Requires all employees of UHV to become employees of TAMUV on the effective date of this Act. Provides that the transfer of the governance of UHV under this Act does not otherwise affect the employment status or accrued benefits of a person employed by UHV when the transfer takes effect.

SECTION 7. CURRENT FUNDING. Provides that 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 UHV under the governance of the board of regents of the UH System are transferred to the board of regents of the TAMU System for the use and benefit of TAMUV.

SECTION 8. AMENDMENT. Amends the heading to Section 54.5405, Education Code, to read as follows:

Sec. 54.5405. STUDENT CENTER FEE; TEXAS A&M UNIVERSITY--VICTORIA

SECTION 9. AMENDMENT. Amends Sections 54.5405(a) and (d), Education Code, as follows:

(a) Authorizes the board of regents of the TAMU System, rather than the UH System, to impose on each student enrolled at TAMUV, rather than UHV, a student center fee to be used only for the purpose of financing, constructing, operating, maintaining, improving, and equipping a student center at TAMUV.

(d) Makes a conforming change to this subsection.

SECTION 10. AMENDMENT. Amends the heading to Section 54.5406, Education Code, to read as follows:

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

SECTION 11. AMENDMENT. Amends Sections 54.5406(a) and (d), Education Code, to make conforming changes.

SECTION 12. AMENDMENT. Amends Section 55.1723(a), Education Code, as follows:

(a) Deletes existing text authorizing the board of regents of the UH System, in addition to the other authority granted by Subchapter B (Revenue Bonds and Facilities), to acquire, purchase, construct, improve, renovate, enlarge, or equip property, buildings, structures, facilities, roads, or related infrastructure for certain 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 certain amounts, including for UHV, $10 million. Makes nonsubstantive changes.

SECTION 13. AMENDMENT. Amends Section 55.1733(a), Education Code, as follows:

(a) Deletes existing text authorizing the board of regents of the UH System, in addition to the other authority granted by this subchapter, to issue in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board bonds for the certain institutions not to exceed certain aggregate principal amounts to finance certain projects, including for UHV, $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. Makes nonsubstantive changes.

SECTION 14. AMENDMENT. Amends Section 55.1753(a), Education Code, as follows:

(a) Deletes existing text authorizing the board of regents of the UH System, in addition to the other authority granted by this subchapter, to acquire, purchase, construct, improve, renovate, enlarge, or equip facilities, including roads and related infrastructure, for certain 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 certain amounts, including for UHV: $22,900,000 for an academic building at the UH System Center at Sugar Land, $6,719,400 for regional economic development, and $1,800,000 for allied health facilities. Makes nonsubstantive changes.

SECTION 15. AMENDMENT. Amends Section 55.1783(a), Education Code, as follows:

(a) Deletes existing text authorizing the board of regents of the UH System, in addition to the other authority granted by this subchapter, to 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 certain institutions or entities, not to exceed certain aggregate principal amounts for certain projects, including for UHV, $60 million for academic expansion and land acquisition. Makes nonsubstantive changes.

SECTION 16. AMENDMENT. Amends Section 55.1793(a), Education Code, as follows:

(a) Deletes existing text authorizing the board of regents of the UH System, in addition to the other authority granted by this subchapter, to 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 certain institutions, not to exceed certain aggregate principal amounts for certain projects, including for UHV, $44,922,833 for renovation of existing buildings and other campus infrastructure upgrades. Makes nonsubstantive changes.

SECTION 17. AMENDMENT. Amends Subchapter B, Chapter 55, Education Code, by adding Section 55.17812, as follows:

Sec. 55.17812. TEXAS A&M UNIVERSITY--VICTORIA. (a) Authorizes the board of regents of the TAMU System, in addition to the other authority granted by this subchapter, to issue bonds in accordance with this subchapter and in accordance with a systemwide revenue financing program adopted by the board in the aggregate principle amounts not to exceed the amounts previously authorized for UHV by Sections 55.1723 (The University of Houston System), 55.173 (The University of Houston System), 55.1733 (The University of Houston System; Additional Bonds), 55.1753 (University of Houston System; Additional Bonds), 55.1783 (University of Houston System; Additional Bonds), and 55.1793 (University of Houston System; Additional Bonds), 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 UHV before the date this section took effect. Authorizes 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 to be used only at TAMUV for the purposes for which the bonds for UHV were authorized to be issued under Section 55.1723, 55.173, 55.1733, 55.1753, 55.1783, or 55.1793, as applicable.

(b) Authorizes the board to pledge irrevocably to the payment of those bonds all or any part of the revenue funds of an institution, branch, or entity of the TAMU System, including student tuition charges. Prohibits the amount of a pledge made under this subsection from being reduced or abrogated while the bonds for which the pledge is made, or bonds issued to refund those bonds, are outstanding.

(c) Authorizes the board, if sufficient funds are not available to the board to meet its obligations under this section, to transfer funds among institutions, branches, and entities of the TAMU 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) Authorizes 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 to be used to renovate existing structures and facilities at TAMUV.

SECTION 18. AMENDMENT. Amends Section 62.021(a), Education Code, as follows:

(a) Provides that the annual amounts provided by a certain formula are for certain component institutions of the TAMU System, including $3,649,703 to TAMUV. Deletes existing text providing that the annual amounts provided by that formula are for certain components of the UH System, including $3,649,703 to UHV. Makes nonsubstantive changes.

SECTION 19. TRANSITION. Requires the UH System and the TAMU System, not later than June 1, 2025, to enter into a memorandum of understanding relating to the transfer of the administration of UHV to the TAMU System. Requires that the memorandum of understanding include a timetable and specific steps and 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 relating to the transfer of UHV to the TAMU System.

SECTION 20. REPEALER. Repealer: Section 55.173 (The University of Houston System), Education Code.

Repealer: Subchapter G (University of Houston-Victoria), Chapter 111 (The University of Houston), Education Code.

SECTION 21. EFFECTIVE DATE. Effective date: September 1, 2025.

Senate Authors

Sen. Lois KolkhorstRepublican · Primary Author

Joint Authors

Paul Bettencourt (R)

House Sponsors

Rep. AJ LouderbackRepublican · Primary Sponsor

Joint Sponsors

Suleman Lalani (D)

Bill Text(with markup)

S.B. No. 2361

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.

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 and the University of

Houston System, as applicable, 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) 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, retirees, and dependents of Texas A&M

University--Victoria are covered by the group benefits insurance

program under Chapter 1551, Insurance Code.

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

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

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Fiscal NoteView Original

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 2, 2025

TO:	Honorable Brandon Creighton, Chair, Senate Committee on Education K-16

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB2361 by Kolkhorst (Relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB2361, As Introduced: a negative impact of ($5,000,000) through the biennium ending August 31, 2027.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five- Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2026	($2,500,000)
2027	($2,500,000)
2028	$0
2029	$0
2030	$0

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1
2026	($2,500,000)
2027	($2,500,000)
2028	$0
2029	$0
2030	$0

Fiscal Analysis

The bill would transfer the governance, control, management, and property 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. The bill would establish that tuition and fees, contracts and written obligations of every kind, the status of any student of the university enrolled at the university or the employment status or accrued benefits of any person employed by the university, and all funds that, on the effective date of the transfer, have been appropriated to the use of the University of Houston--Victoria are transferred for the use and benefit of Texas A&M University--Victoria.

Not later than June 1, 2025, the University of Houston System and The Texas A&M University System would be required to enter into a memorandum of understanding (MOU) relating to the transfer of the administration of the University of Houston--Victoria to The Texas A&M University System. The memorandum of understanding would be required to include a timetable and specific steps and 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 relating to the transfer of the University of Houston--Victoria to The Texas A&M University System.

Methodology

The Texas A&M University System reports that the costs to the System for the transfer of the institution to be estimated at $5.0 million in additional funding for the 2026-27 biennium. These costs are related to major data systems currently run by University of Houston System, including Human Capital Management, Student Information System, Financial Management System, and Learning Management System, which will all need to be converted.

The Texas A&M University System indicates that other costs could be identified in the future. The University of Houston System has indicated that they expect to incur locally funded costs for the separation of the campus, but the extent of these costs will only become apparent as the process progresses and the transition plan solidifies.

Any changes in fees and bonds after the transfer could have state revenue implications, but any future revenue impact cannot be determined.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 781 Higher Education Coordinating Board, 783 University of Houston System Administration

LBB Staff:

JMc, CMA, LBO, CBR, NV, FV

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Frequently Asked Questions

Common questions about SB2361

What does Texas SB2361 do?

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

Who authored SB2361?

SB2361 was authored by Texas Senator Lois Kolkhorst during the Regular Session.

When was SB2361 signed into law?

SB2361 was signed into law by Governor Greg Abbott on May 27, 2025.

What topics does SB2361 address?

SB2361 addresses topics including education, education--higher, education--higher--finance, education--higher--institutions & programs and education--higher--student fees.

Legislative data provided by LegiScanLast updated: November 25, 2025

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

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