SB37

Regular Session

Relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, a faculty council or senate, training for members of the governing board, and the establishment, powers, and duties of the Texas Higher Education Coordinating Board Office of the Ombudsman.

CriticalImmediate action required

Medium Cost

Effective:2025-09-01

Enforcing Agencies

Texas Higher Education Coordinating Board (Office of the Ombudsman) • Institution Governing Boards • State Auditor's Office • Texas Legislature

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: September 1, 2025
Compliance Deadline: August 31, 2025 (Deadline for Boards to ratify/re-establish Faculty Senates to prevent automatic abolition). General application begins January 1, 2026; first curriculum certification is due January 1, 2027.
Agency Rulemaking: The Texas Higher Education Coordinating Board (THECB) will issue rules regarding the Office of the Ombudsman complaint process in late 2025. Warning: Governance and hiring mandates are self-executing statutes; do not wait for agency guidance to amend bylaws or contracts.

Immediate Action Plan

Immediately Ratify Faculty Senates: Place a "Ratification of Faculty Senate" item on the Board agenda before August 31, 2025, to prevent the body from being legally abolished.
Amend Executive Contracts: Redraft standard employment agreements for all Dean-level positions and above to include Board override provisions.
Establish "Kill List" Workflow: Create a data-driven review process to identify minor degree programs with low enrollment and prepare "specific industry data" defenses for them.
Centralize Grievances: Revise faculty handbooks to ensure the President/Provost retains final authority on grievances, removing binding power from faculty committees.

Operational Changes Required

Contracts

Executive Employment Agreements: All contracts for Provosts, Deans, and Vice Presidents must be amended to include a "Statutory Override" clause pursuant to Sec. 2.01(g), acknowledging the Governing Board’s unilateral right to rescind hiring decisions.
Faculty Tenure & Track Agreements: Review all contracts referencing "Shared Governance." Clauses implying binding faculty votes on curriculum or hiring are now unenforceable; language must be updated to reflect an "advisory only" status.
Vendor Agreements: Review subscriptions with labor market data providers (e.g., Lightcast) to ensure they provide the "specific industry data" required by Sec. 1.03(c) to defend low-enrollment degree programs.

Hiring/Training

Board Member Training: Regents/Trustees must complete new training and sign a sworn statement affirming their understanding of duties. This statement creates a liability record for future fiduciary breach claims.
HR Workflows: Hiring protocols for administration (Deans/VPs) must insert a "Board Review Step" prior to final offer. Offers must be conditional upon Board non-objection.
Search Committees: Committees for CEO/President roles must be restructured to include at least two Board members, with one serving as chair.

Reporting & Record-Keeping

Annual Hiring Report: Prepare a new annual filing for the Governor and Legislature detailing all administration hiring decisions, including Board denials and overturns.
Ombudsman Response Logs: Implement a tracking system for Ombudsman inquiries with strict triggers: 5 days to acknowledge, 30 days for information requests, and 175 days for full resolution.
Faculty Senate Transparency: Establish a workflow to post agendas 7 days in advance, broadcast meetings live, and archive attendance records for all votes.

Fees & Costs

Appropriation Risk: The Office of the Ombudsman has the authority to recommend withholding state appropriations for failure to resolve compliance issues.
Operational Costs: Institutions must absorb costs for new General Education Review Committees and increased data analytics requirements. No new state funding is provided for institutional compliance.

Strategic Ambiguities & Considerations

"Specific Industry Data": The statute requires data to justify low-enrollment programs but fails to define acceptable sources. Until THECB rules clarify, institutions should use conservative, third-party verifiable labor statistics to avoid program elimination.
"Ideological or Political Agendas": Sec. 51.3523 prohibits shared governance bodies from advancing these agendas. The terms are undefined and present a high litigation risk. General Counsels must review all Faculty Senate resolutions to ensure they remain strictly within operational academic policy.
Scope of "General Education": The definition may inadvertently capture First-Year Experience or diversity requirements, subjecting them to rigorous cost-benefit analysis.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsEducation Education--higher Education--higher--faculty Education--higher--general Education--higher--institutions & Programs Governor Education--higher--curriculum Staff Development & Training Excellence In Higher Education, Office of Higher Education Coordinating Board, Texas State Agencies, Boards & Commissions State Agencies, Boards & Commissions--newly Proposed Lieutenant Governor Speaker of the House Office of the Ombudsman, Texas Higher Education Coordinating Board Grievance Procedures

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

Senate Research Center	S.B. 37
89R13937 MM-D	By: Creighton
	Education K-16
	3/18/2025
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

S.B. 37 seeks to address the unchecked authority of faculty senates. The proposal also seeks to bolster the authority, and further define obligations of, university governing boards on matters such as final approval on the hiring of administrative positions and on matters related to academic policies. It proposes the creation of an "Office of Excellence in Higher Education," whose responsibility is to maintain transparency between public institutions of higher education, legislators, and the Texas taxpayer, and to uphold institutions' compliance with state law.

As proposed, S.B. 37 amends current law relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, the powers and duties of a faculty council or senate, training for members of the governing board, and the establishment of the Office of Excellence in Higher Education.

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the faculty council and senate in SECTION 3 (Section 51.3522, Education Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter F, Chapter 51, Education Code, by adding Section 51.315, as follows:

Sec. 51.315. GENERAL EDUCATION REVIEW COMMITTEE. (a) Defines "core curriculum" and "institution of higher education."

(b) Requires the governing board of each institution of higher education to appoint a general education review committee at each institution of higher education under the governing board's control and management to:

(1) annually review the core curriculum at the institution; and

(2) make recommendations regarding maintaining or eliminating courses in the institution's core curriculum.

(c) Authorizes the governing board of the institution of higher education, in appointing the members of the general education review committee under Subsection (b), to consider recommendations from the institution's president.

(d) Authorizes members of an institution of higher education's general education review committee to include local industry partners and tenured faculty of the institution.

(e) Requires the general education review committee of an institution of higher education, in reviewing the institution's core curriculum under Subsection (b)(1), to ensure courses in the curriculum meet certain requirements.

(f) Requires the general education review committee of an institution of higher education to:

(1) identify competencies in addition to successful completion of the core curriculum that the institution is required to require students to demonstrate; and

(2) make recommendations to maintain or eliminate additional competencies required by the institution in accordance with Subdivision (1).

(g) Requires the governing board of an institution of higher education to approve or deny on an individual basis any recommendation made by the institution's general education review committee under Subsection (b)(2).

(h) Requires an institution of higher education to make recommendations made by the institution's general education review committee publicly available on the institution's Internet website for at least 30 business days before the date of a meeting at which the institution's governing board intends to consider the recommendations.

(i) Requires the governing board of each institution of higher education, not later than September 1 of each year, to certify the governing board's compliance with this section to the Office of Excellence in Higher Education established under Chapter 454, Government Code.

(j) Prohibits an institution of higher education from spending money appropriated to the institution for a state fiscal year until the governing board of the institution submits to the legislature and the Texas Higher Education Coordinating Board (THECB) a report certifying the governing board's compliance with this section during the preceding state fiscal year.

SECTION 2. Amends Section 51.352, Education Code, by amending Subsection (d) and adding Subsections (g), (h), (i), and (j), as follows:

(d) Requires each governing board, in addition to powers and duties specifically granted by this code or other law, to:

(1)-(2) makes no changes to these subdivisions;

(3) appoint the president or other chief executive officer of each institution under the board's control and management, rather than appoint the president or other chief executive officer of each institution under the board's control and management and evaluate the chief executive officer of each component institution and assist the officer in the achievement of performance goals;

(4) approve or deny the hiring of an individual for the position of vice president, provost, associate or assistant provost, dean, or a similar leadership position by each institution under the board's control and management;

(5) regularly evaluate the chief executive officer, president, and each individual who holds a leadership position described by Subdivision (4) at each institution under the board's control and management to assist the individual in achieving certain performance goals;

(6) creates this subdivision from existing text and makes no further changes; and

(7) redesignates existing Subdivision (5) as Subdivision (7) and makes no further changes.

(g) Authorizes the governing board of an institution of higher education to overturn any decision made by the administration of a campus under the board's control and management.

(h) Requires the governing board of an institution of higher education to post on the institution's Internet website notice of any meeting at which the board will consider finalists for a position described by Subsection (d)(4) at least 30 business days before the date of the meeting. Requires that the notice include the curriculum vitae for each individual under consideration for the position at the meeting that lists the individual's postsecondary education, teaching experience, significant professional publications, and professional or academic association memberships.

(i) Prohibits an institution of higher education from spending money appropriated to the institution for a state fiscal year until the governing board of the institution submits to the legislature and THECB a report certifying the board's compliance with Subsections (d)(2) (relating to requiring each governing board to appoint the chancellor or other chief executive officer of the system), (3), (4), (5), (6) (relating to requiring each governing board to set campus admission standards consistent with the role and mission of the institution), and (7) (relating to requiring each governing board to ensure that its formal position on matters of importance to the institutions under its governance is made clear to THECB) during the preceding state fiscal year.

(j) Requires the governing board of each institution of higher education to annually submit to the governor, the lieutenant governor, the speaker of the house of representatives, and each member of the legislature a report regarding certain decisions made by the governing board for the applicable academic year.

SECTION 3. Amends Subchapter G, Chapter 51, Education Code, by adding Sections 51.3522, 51.3523, and 51.3524, as follows:

Sec. 51.3522. FACULTY COUNCIL OR SENATE. (a) Defines "faculty council or senate."

(b) Provides that only the governing board of an institution of higher education is authorized to establish a faculty council or senate at the institution. Requires the governing board, before establishing the faculty council or senate, to adopt a policy governing the election of the faculty council's or senate's members that meets certain requirements.

(c) Provides that a faculty council or senate is advisory only. Requires a faculty council or senate to represent the entire faculty of the institution of higher education and advise the institution administration and any system administration regarding matters related to the general welfare of the institution. Prohibits a faculty council or senate from publishing a report on any matter not directly related to the council's or senate's duties.

(d) Requires the governing board of the institution of higher education, the institution administration, and any system administration, before the adoption or implementation of each proposal or recommendation made by the faculty council or senate, to review the proposal or recommendation. Requires the institution, under the direction of the institution's governing board, to have final decision-making authority regarding the adoption or implementation of a proposal or recommendation made by the council or senate.

(e) Provides that service on the faculty council or senate is an additional duty of the faculty member's employment. Provides that members of the faculty council or senate are not entitled to compensation or reimbursement of expenses.

(f) Provides that a member of the faculty council or senate serves a one-year term and is authorized to be reappointed only after the fourth anniversary of the member's most recent term of service.

(g) Requires the president of the institution of higher education, with the advice and consent of the governing board, to appoint a presiding officer, associate presiding officer, and secretary from the members of the faculty council or senate.

(h) Requires the presiding officer appointed under Subsection (g) to preside over meetings of the faculty council or senate and represent the council or senate in official communications with the institution administration and any system administration.

(i) Provides that Chapter 2110 (State Agency Advisory Committees), Government Code, does not apply to a faculty council or senate.

(j) Provides that Chapter 551 (Open Meetings), Government Code, applies to a faculty council or senate. Authorizes a faculty council or senate to meet by telephone conference call or video conference call subject to the requirements of that chapter.

(k) Requires the faculty council or senate to broadcast over the Internet live video and audio, as applicable, of each open meeting of the council or senate if more than 50 percent of the members of the council or senate are in attendance.

(l) Requires the faculty council or senate to adopt rules for establishing a quorum.

(m) Requires that certain information be made available to the public on the institution of higher education's Internet website not later than the seventh day before a meeting of the faculty council or senate, including an agenda for the meeting with sufficient detail to indicate the items on which final action is contemplated, and any curriculum proposals reviewed by the council or senate that will be discussed or voted on at the meeting.

(n) Requires that the names of the members in attendance be recorded at a meeting in which the faculty council or senate conducts business related to a vote of no confidence regarding an institution or system administrator or policies related to curriculum and academic standards.

Sec. 51.3523. ADDITIONAL RESPONSIBILITIES FOR MEMBERS OF GOVERNING BOARD. (a) Requires the governing board of an institution of higher education to approve or deny certain recommendation and postings on an individual basis.

(b) Requires the governing board of an institution of higher education to post on the institution's Internet website notice of each meeting at which a posting or other advertisement for a tenured faculty position in a field other than science, technology, engineering, or mathematics will be considered at least seven business days before the meeting.

Sec. 51.3524. INFORMATION FOR GOVERNING BOARD APPOINTEES. Requires the governor, in appointing members to the governing board of an institution of higher education, to provide to each applicant for appointment certain detailed written information and consider imposing certain strict eligibility requirements.

SECTION 4. Amends Subchapter Z, Chapter 51, Education Code, by adding Section 51.989, as follows:

Sec. 51.989. REVIEW OF MINOR DEGREE AND CERTIFICATE PROGRAMS. (a) Defines "governing board" and "institution of higher education."

(b) Requires the president and provost of an institution of higher education to jointly develop a process for reviewing minor degree and certificate programs offered by the institution to identify programs with low enrollment that may require consolidation or elimination.

(c) Requires that the criteria for review under Subsection (b) include certain minimum amounts of students for different programs.

(d) Provides that a minor degree or certificate program that has operated less than six years at the time the president and provost conduct the review under this section is exempt from that review.

(e) Requires the governing board of an institution of higher education to approve or deny any decision made by the president or provost of the institution to consolidate or eliminate a minor degree or certificate program as a result of the review conducted under this section.

(f) Requires the president and provost of an institution of higher education to conduct a review under this section once every four years.

SECTION 5. Amends Section 61.084, Education Code, by amending Subsection (d) and adding Subsection (i), as follows:

(d) Requires that topics covered by the training program on the official role and duties of the members of governing boards include:

(1)-(8) makes no changes to these subdivisions;

(9) makes a nonsubstantive change to this subdivision;

(10) an overview of the legislature, the General Appropriations Act, and the state budget as those topics relate to the responsibilities of the governing board;

(11) an emphasis on the commitment the members of the governing board are making to the institutions of higher education under the board's control and management and, if applicable, the university system, this state, and taxpayers of this state; and

(12) creates this subdivision from existing text and makes no further changes.

(i) Requires a member of a governing board, on completion of a training program under this section, to provide a sworn statement affirming the member's understanding of the member's duties and responsibilities.

SECTION 6. Amends Section 51.942(c-3), Education Code, as follows:

(c-3) Requires that the policies and procedures adopted by the governing board under Subsection (c-1) (relating to requiring each governing board of an institution of higher education to adopt policies and procedures regarding tenure), in addition to any other provisions adopted by the governing board, include provisions providing certain rules, including that a faculty member is prohibited from being involved in decision-making in a grievance review process or faculty discipline process.

SECTION 7. Amends Subtitle D, Title 4, Government Code, by adding Chapter 454, as follows:

CHAPTER 454.� OFFICE OF EXCELLENCE IN HIGHER EDUCATION

Sec. 454.001. DEFINITIONS. Defines "institution of higher education" and "office."

Sec. 454.002. ESTABLISHMENT. (a) Provides that the Office of Excellence in Higher Education (office) is established to address matters of academic discourse at institutions of higher education in this state.

(b) Provides that the office is administratively attached to THECB.

Sec. 454.003. DIRECTOR. Provides that the director of the office is appointed by the governor with the advice and consent of the senate and serves at the pleasure of the governor.

Sec. 454.004.� POWERS AND DUTIES. (a) Requires the office to serve as an intermediary between the legislature, the public, and institutions of higher education, including by answering questions from the public and the legislature regarding an institution of higher education's obligations to students, faculty, employees, and the public.

(b) Requires the office to be responsible for receiving and, as necessary, investigating reports of noncompliance by institutions of higher education with state law or institution policy. Authorizes the office, in investigating a report of noncompliance regarding an institution received under this section, to request information from the institution or the university system in which the institution is a component, if applicable.

(c) Requires an institution of higher education to respond in writing to the office's written request for information not later than the 30th day after the date the institution receives the request. Requires the office to report an institution that fails to timely respond to a request under this subsection to the governor, the lieutenant governor, and the chair of each standing committee of the legislature with primary jurisdiction over higher education.

(d) Requires the office, based on findings related to an investigation under this section, to submit to the attorney general and the governing board of an institution of higher education that is the subject of an investigation under this section a report that includes the office's final determination regarding the investigation and recommendations for action based on the conclusions of the investigation.

(e) Authorizes the office to require cooperation from an institution of higher education in an investigation under this section and publicize a violation of law by an institution of higher education that is confirmed by an investigation.

Sec. 454.005. ANNUAL REPORT. Requires the office to annually submit a report to the governor, the lieutenant governor, the attorney general, and the chair of each standing committee of the legislature with jurisdiction over higher education regarding:

(1) the number of reports of noncompliance received by the office;

(2) the number of investigations conducted by the office; and

(3) a summary of the results of investigations described by Subdivision (2).

SECTION 8. (a) Provides that, except as provided by Subsection (b) of this section, this Act applies beginning with the 2025�2026 school year.

(b) Provides that Sections 51.315(j) and 51.352(i), Education Code, as added by this Act, apply beginning with money appropriated to a public institution of higher education for the state fiscal year beginning September 1, 2026.

SECTION 9. Requires each general education review committee established at a public institution of higher education in accordance with Section 51.315, Education Code, as added by this Act, to provide the committee's initial recommendations not later than June 1, 2027.

SECTION 10. Provides that a faculty council or senate established at a public institution of higher education before the effective date of this Act is abolished on October 1, 2025, unless the faculty council or senate was established in the manner prescribed by Section 51.3522, Education Code, as added by this Act, or the faculty council's or senate's continuation is ratified by the institution's governing board before that date based on a finding by the governing board that the faculty council or senate meets the requirements of any policy adopted by the governing board under that section..

SECTION 11. Effective date: upon passage or September 1, 2025.

Senate Authors

Sen. Charles CreightonRepublican · Primary Author

Coauthors (6)

House Sponsor

Rep. Matthew ShaheenRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 37

AN ACT

relating to the governance of public institutions of higher

education, including review of curriculum and certain degree and

certificate programs, a faculty council or senate, training for

members of the governing board, and the establishment, powers, and

duties of the Texas Higher Education Coordinating Board Office of

the Ombudsman.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. CURRICULUM AND ACADEMIC PROGRAMS

SECTION 1.01. Subchapter F, Chapter 51, Education Code, is

amended by adding Section 51.315 to read as follows:

Sec. 51.315. GENERAL EDUCATION CURRICULUM REVIEW. (a) In

this section:

(1) "General education curriculum" means a core

curriculum, as that term is defined by Section 61.821, and any other

curriculum or competency all undergraduate students of an

institution of higher education are required to complete before

receiving an undergraduate degree.

(2) "Governing board" and "institution of higher

education" have the meanings assigned by Section 61.003.

(b) At least once every five years, the governing board of

each institution of higher education shall conduct a comprehensive

review of the general education curriculum established by the

institution. In reviewing an institution's general education

curriculum, the governing board shall ensure courses in the

curriculum:

(1) are foundational and fundamental to a sound

postsecondary education;

(2) are necessary to prepare students for civic and

professional life;

(3) equip students for participation in the workforce

and in the betterment of society; and

(4) ensure a breadth of knowledge in compliance with

applicable accreditation standards.

institution of higher education under Subsection (b), the governing

board of the institution shall consider the potential costs the

curriculum may impose on students, including for additional

tuition, fees, and time a student must spend to complete an

undergraduate degree program at the institution.

(d) Each institution of higher education shall annually

submit to the governing board of the institution an update

regarding any changes to the general education curriculum offered

at the institution. The governing board may reserve the right to

overturn any decision made by the institution regarding any changes

to the general education curriculum offered at the institution.

(e) The governing board of an institution of higher

education may appoint a committee to assist the governing board in

carrying out its duties under this section, including by making

recommendations to the governing board. Members of the committee

may include:

(1) faculty employed full time by the institution;

(2) institution administrators;

(3) community leaders;

(4) industry representatives; and

(5) other individuals selected by the governing board.

(f) Not later than January 1 of each year a review is

conducted under this section, the governing board of each

institution of higher education shall certify the governing board's

compliance with this section to the Texas Higher Education

Coordinating Board and each standing legislative committee and

subcommittee with primary jurisdiction over higher education.

SECTION 1.02. Section 51.354, Education Code, is amended to

read as follows:

Sec. 51.354. INSTITUTIONAL AUTHORITY AND RESPONSIBILITY.

(a) The final decision-making authority on matters regarding an

institution of higher education's degree programs and curricula

belongs to the institution. The institution shall make the

decisions on those matters under the direction of the institution's

governing board.

(b) In addition to specific responsibilities imposed by

this code or other law, each institution of higher education has the

general responsibility to serve the public and, within the

institution's role and mission, to:

(1) transmit culture through general education;

(2) extend knowledge;

(3) teach and train students for professions;

(4) provide for scientific, engineering, medical, and

other academic research;

(5) protect intellectual exploration and academic

freedom;

(6) strive for intellectual excellence;

(7) provide educational opportunity for all who can

benefit from postsecondary education and training; and

(8) provide continuing education opportunities.

SECTION 1.03. Subchapter Z, Chapter 51, Education Code, is

amended by adding Section 51.989 to read as follows:

Sec. 51.989. REVIEW OF MINOR DEGREE AND CERTIFICATE

PROGRAMS. (a) In this section, "governing board" and "institution

of higher education" have the meanings assigned by Section 61.003.

(b) The president or chief executive officer of an

institution of higher education shall adopt and implement a process

for reviewing minor degree and certificate programs offered by the

institution to identify programs with low enrollment that may

require consolidation or elimination.

require that minor degree and certificate programs have specific

industry data to substantiate workforce demand to avoid

consideration for consolidation or elimination.

(d) A minor degree or certificate program that has operated

less than five years at the time the president or chief executive

officer of an institution of higher education conducts the review

under this section is exempt from that review.

(e) The governing board of an institution of higher

education shall approve or deny any decision made by the president

or chief executive officer of the institution to consolidate or

eliminate a minor degree or certificate program as a result of the

review conducted under this section.

(f) The president or chief executive officer of an

institution of higher education shall conduct a review under this

section once every five years.

SECTION 1.04. Section 61.052, Education Code, is amended by

adding Subsection (a-1) to read as follows:

(a-1) A governing board may exclude from the comprehensive

list of courses submitted under Subsection (a) courses that were

not taught as an organized class or provided through individual

instruction for the preceding two academic years.

SECTION 1.05. Subchapter C, Chapter 61, Education Code, is

amended by adding Section 61.0522 to read as follows:

Sec. 61.0522. GENERAL EDUCATION CURRICULUM ADVISORY

COMMITTEE. (a) In this section:

(1) "Advisory committee" means the general education

curriculum advisory committee established under this section.

(2) "General education curriculum" has the meaning

assigned by Section 51.315.

(b) The board shall establish an advisory committee to

review the general education curriculum requirements of

institutions of higher education.

chief executive officers, chancellors, and chief academic officers

at all institutions of higher education for representatives to

serve on the advisory committee. The board shall select a number of

representatives determined by the board from those nominated with

nominees drawn equally from two-year and four-year institutions.

(d) The advisory committee shall consider methods for

determining general education curriculum component courses and for

condensing the number of general education curriculum courses

required at institutions of higher education.

(e) Not later than November 1, 2026, the advisory committee

shall produce a report regarding the advisory committee's findings

and recommendations under this section and provide the report to

the board.

(f) Not later than December 31, 2026, the board shall review

the advisory committee's report and submit to the legislature the

board's recommendations for legislative or other action necessary

to implement the findings of the report.

(g) The advisory committee is abolished and this section

expires September 1, 2027.

SECTION 1.06. Not later than January 1, 2027, the governing

board of each public institution of higher education shall:

(1) complete the governing board's initial review in

accordance with Section 51.315, Education Code, as added by this

Act; and

(2) certify compliance with Section 51.315, Education

Code, as added by this Act, as required by Subsection (f) of that

section.

ARTICLE 2. INSTITUTIONAL GOVERNANCE

SECTION 2.01. Section 51.352, Education Code, is amended by

amending Subsection (d) and adding Subsections (g) and (h) to read

as follows:

(d) In addition to powers and duties specifically granted by

this code or other law, each governing board shall:

(1) establish, for each institution under its control

and management, goals consistent with the role and mission of the

institution;

(2) appoint the chancellor or other chief executive

officer of the system, if the board governs a university system;

(3) appoint the president or other chief executive

officer of each institution under the board's control and

management and evaluate the chief executive officer of each

component institution and assist the officer in the achievement of

performance goals;

(4) approve or deny the hiring of an individual for the

position of provost or deputy, associate, or assistant provost by

each institution under the board's control and management;

(5) collaborate with institutions under its control

and management to set campus admission standards consistent with

the role and mission of the institution and considering the

admission standards of similar institutions nationwide having a

similar role and mission, as determined by the coordinating board;

and

(6) [~~(5)~~] ensure that its formal position on matters

of importance to the institutions under its governance is made

clear to the coordinating board when such matters are under

consideration by the coordinating board.

(g) The governing board of an institution of higher

education may overturn any hiring decision for the position of vice

president or dean made by the administration of a campus under the

board's control and management. Action by the governing board

under this subsection shall be implemented by the institution

through appropriate action with respect to the relevant hiring

decision at issue, including rescission of an employment offer,

termination of employment, or termination of an employment

agreement.

(h) The governing board of each institution of higher

education shall annually submit to the governor, the lieutenant

governor, the speaker of the house of representatives, and each

member of the legislature a report regarding decisions made by the

governing board for the applicable academic year on any hiring of

administration in which the board approved or denied the hiring

decision or took action under Subsection (g).

SECTION 2.02. Subchapter G, Chapter 51, Education Code, is

amended by adding Sections 51.3522, 51.3523, and 51.3541 to read as

follows:

Sec. 51.3522. FACULTY COUNCIL OR SENATE. (a) In this

section, "faculty council or senate" means a representative faculty

organization.

(b) Only the governing board of an institution of higher

education may establish a faculty council or senate at the

institution. Before establishing the faculty council or senate,

the governing board must adopt a policy governing the selection of

the faculty council's or senate's members that:

(1) ensures adequate representation of each college

and school of the institution;

(2) requires the members to be faculty members; and

(3) except as otherwise provided by the governing

board, limits the number of members to not more than 60 with at

least two representatives from each college or school, including:

(A) one member appointed by the president or

chief executive officer of the institution; and

(B) the remaining members elected by a vote of

the faculty of the member's respective college or school.

be delegated the final decision-making authority on any matter. A

faculty council or senate shall represent the entire faculty of the

institution of higher education and advise the institution

administration and any system administration regarding matters

related to the general welfare of the institution. A faculty

council or senate may not issue any statement or publish a report

using the institution's official seal, trademark, or resources

funded by the institution on any matter not directly related to the

council's or senate's duties to advise the institution

administration.

(d) Service on the faculty council or senate is an

additional duty of the faculty member's employment. Members of the

faculty council or senate are not entitled to compensation or

reimbursement of expenses for their role as members of the faculty

council or senate unless the expense is on behalf of and approved by

the institution of higher education.

(e) A member of the faculty council or senate appointed by

the president or chief executive officer of the institution of

higher education in accordance with Subsection (b)(3)(A) may serve

up to six consecutive one-year terms and then may only be

reappointed after the second anniversary of the last day of the

member's most recent term. A member of the faculty council or

senate elected by a vote of the faculty of the member's respective

college or school serves a two-year term, staggered in a manner that

allows approximately one-half of the elected members to be elected

each year, and may only be reelected after the second anniversary of

the last day of the member's most recent term.

(f) A faculty member serving on the faculty council or

senate may be immediately removed from the council or senate for

failing to conduct the member's responsibilities within the

council's or senate's parameters, failing to attend council or

senate meetings, or engaging in other similar misconduct. A member

of a faculty council or senate may be removed on recommendation of

the institution's provost and approval by the institution's

president or chief executive officer.

(g) The president or chief executive officer of the

institution of higher education shall appoint a presiding officer,

associate presiding officer, and secretary from the members of the

faculty council or senate.

(h) The presiding officer appointed under Subsection (g)

shall preside over meetings of the faculty council or senate and

represent the council or senate in official communications with the

institution administration and any system administration.

(i) Chapter 2110, Government Code, does not apply to a

faculty council or senate.

(j) The faculty council or senate shall conduct meetings at

which a quorum is present in a manner that is open to the public and

in accordance with procedures prescribed by the president or chief

executive officer of the institution of higher education.

(k) The faculty council or senate shall broadcast over the

Internet live video and audio, as applicable, of each open meeting

of the council or senate if more than 50 percent of the members of

the council or senate are in attendance.

(l) The faculty council or senate shall adopt rules for

establishing a quorum.

(m) The following shall be made available to the public on

the institution of higher education's Internet website not later

than the seventh day before a meeting of the faculty council or

senate:

(1) an agenda for the meeting with sufficient detail

to indicate the items that are to be discussed or that will be

subject to a vote; and

(2) any curriculum proposals reviewed by the council

or senate that will be discussed or voted on at the meeting.

(n) The names of the members in attendance must be recorded

at a meeting in which the faculty council or senate conducts

business related to:

(1) a vote of no confidence regarding an institution

or system administrator; or

(2) policies related to curriculum and academic

standards.

(o) This section may not be construed to limit a faculty

member of an institution of higher education from exercising the

faculty member's right to freedom of association protected by the

United States Constitution or Texas Constitution.

Sec. 51.3523. SHARED GOVERNANCE. (a) In this section,

"governing board" and "institution of higher education" have the

meanings assigned by Section 61.003.

(b) Institutions of higher education in this state shall be

governed by a principle of shared governance, which refers to a

structured decision-making process in which the governing board of

the institution exercises ultimate authority and responsibility

for institutional oversight, financial stewardship, and policy

implementation, while allowing for appropriate consultation with

faculty, administrators,

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


March 19, 2025

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

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	SB37 by Creighton (Relating to the governance of public institutions of higher education, including review of curriculum and certain degree and certificate programs, the powers and duties of a faculty council or senate, training for members of the governing board, and the establishment of the Office of Excellence in Higher Education.), As Introduced

Estimated Two-year Net Impact to General Revenue Related Funds for SB37, As Introduced: a negative impact of ($4,235,960) 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	($2,667,980)
2027	($1,567,980)
2028	($1,567,980)
2029	($1,567,980)
2030	($1,567,980)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from General Revenue Fund 1	Change in Number of State Employees from FY 2025
2026	($2,667,980)	9.0
2027	($1,567,980)	9.0
2028	($1,567,980)	9.0
2029	($1,567,980)	9.0
2030	($1,567,980)	9.0

Fiscal Analysis

The bill would require the governing board of each institution of higher education to appoint a general education review committee at each institution of higher education under the governing board's control and management that would be required to annually review the core curriculum at the institution and make recommendations to the governing board regarding maintaining or eliminating courses in the institution's core curriculum. The bill would establish that only the governing board of an institution of higher education may establish a faculty council or senate at the institution and would establish provisions related to the powers and duties of such. The bill would also establish provisions relating to the review of curriculum and certain minor degree and certificate programs, training for members of a governing board, and the required submission of certain information to the legislature and the Higher Education Coordinating Board before an institution may spend money appropriated to the institution.

The bill would establish the Office of Excellence in Higher Education which would be administratively attached to the Higher Education Coordinating Board and serve as an intermediary between the legislature, the public, and institutions of higher education. The office would be responsible for receiving and, as necessary, investigating reports of noncompliance by institutions of higher education with state law or institution policy and would be required to submit an annual report regarding the number of noncompliance reports received by the office, the number of investigations conducted by the office, and a summary of investigations.

Methodology

It is assumed that costs associated with the creation of the general education review committees, duties of the faculty council or senate, review of creating degree programs, and training of board members could be absorbed within existing resources.

Based on information provided by the Higher Education Coordinating Board, nine FTEs would be necessary for the creation of the Office of Excellence in Higher Education, including one Commissioner of the Office of Excellence, one Legal Secretary, one Legal Assistant, two Attorneys, one Systems Analyst, and three Investigators. The total salary and retirement costs for these FTEs would total approximately$1,201,915 per fiscal year beginning in fiscal year 2026. Other operating expenses, primarily for supplies, travel and training for the FTEs would be approximately $95,519 per year. There would be a one-time construction cost of $100,000 in fiscal year 2026 to house staff.

Technology

The Higher Education Coordinating Board estimates a one-time cost of $1,000,000 in fiscal year 2026 to build out a secure data and tracking system and $270,546 in on-going technology costs.

Local Government Impact

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

Source Agencies:

300 Trusteed Programs Within the Office of the Governor, 302 Office of the Attorney General, 304 Comptroller of Public Accounts, 710 Texas A&M University System Administrative and General Offices, 717 Texas Southern University, 719 Texas State Technical College System Administration, 720 The University of Texas System Administration, 758 Texas State University System, 768 Texas Tech University System Administration, 769 University of North Texas System Administration, 781 Higher Education Coordinating Board, 783 University of Houston System Administration, 966 Howard College, 978 San Jacinto College

LBB Staff:

JMc, FV, LBO, GO, NV

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about SB37

What does Texas SB37 do?

SB37 fundamentally restructures Texas public higher education by centralizing authority with Governing Boards and the Legislature while strictly limiting faculty governance. Public universities and community colleges must immediately overhaul faculty senate bylaws and executive employment contracts to avoid the automatic statutory abolition of governance bodies on September 1, 2025, and the potential withholding of state appropriations for noncompliance. Implementation Timeline Effective Date: September 1, 2025 Compliance Deadline: August 31, 2025 (Deadline for Boards to ratify/re-establish Faculty Senates to prevent automatic abolition).

Who authored SB37?

SB37 was authored by Texas Senator Charles Creighton during the Regular Session.

When was SB37 signed into law?

SB37 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce SB37?

SB37 is enforced by Texas Higher Education Coordinating Board (Office of the Ombudsman), Institution Governing Boards, State Auditor's Office and Texas Legislature.

How urgent is compliance with SB37?

The compliance urgency for SB37 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of SB37?

The cost impact of SB37 is estimated as "medium". This may vary based on industry and implementation requirements.

What topics does SB37 address?

SB37 addresses topics including education, education--higher, education--higher--faculty, education--higher--general and education--higher--institutions & programs.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.