Opinion No.
Background
- UNT System's Board of Regents controls endowment funds held and managed at each component institution, totaling at least $25 million in book value.
- The Board asks whether 51.0031(c) may apply to funds under its control at other component institutions not individually meeting $25 million, and to funds at the System level.
- System comprises the University of North Texas, UNT Health Science Center, UNT at Dallas, and UNT Dallas College of Law, all under a single governing board.
- Definitions in the Education Code show a University System is an association of public senior colleges/universities under policy direction of one board; component institutions lack separate governing boards.
- Chapter 105 places organization, control, and management of the System with a single board, and 51.352(b) contemplates a governing board providing policy direction for each institution under its management.
- Conclusion: the System, not its individual component institutions, is the entity that must satisfy the $25 million threshold when applying 51.0031(c).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 51.0031(c) apply to the System aggregate or to component institutions? | System aggregate must meet $25 million threshold. | Text and structure show System board governs all components; aggregate view appropriate. | System aggregate must meet threshold; may invest under 51.0031(c). |
| Is the UNT Board of Regents a 'governing board' under 51.0031(c)? | Board fits the definition of governing board for public senior colleges/universities. | Same understanding; Board has policy direction over System and components. | Board is a governing board within the scope of 51.0031(c). |
| Who must meet the $25 million threshold—the System or component institutions individually? | Aggregate System funds suffice to meet threshold. | System's governance structure shows aggregate threshold governs. | System, considered in the aggregate, must meet the threshold. |
Key Cases Cited
- R.R. Comm'n of Tex. v. Tex. Citizens for a SafeFuture Clean Water, 336 S.W.3d 619 (Tex. 2011) (textual clarity governs statutory intent)
- Entergy GulfStates, Inc. v. Summers, 282 S.W.3d 433 (Tex. 2009) (text governs interpretation when text clear)