§3230.1. The University of New Orleans; transfer to the Louisiana State University System

            A.(1) Not later than August 1, 2025, the president of the University of New Orleans shall submit a letter to the president of the Southern Association for Colleges and Schools, Commission on Colleges, stating her intent for a change in governance for the institution from the Board of Supervisors for the University of Louisiana System to the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College.

            (2) The president, faculty, and administration of the University of New Orleans shall take every action necessary to efficiently and expeditiously comply with all established timelines, requirements, and procedures to ensure that the requested change of governance may be effected immediately upon receipt of commission approval.

            B.(1) Pursuant to the authority granted to the legislature by Article VIII, Section 5(D)(3) of the Constitution of Louisiana to transfer an institution from one board to another by law enacted by two-thirds of the elected members of each house, the University of New Orleans, and the assets, funds, obligations, liabilities, programs, and functions related thereto, are hereby transferred to the Louisiana State University System, and shall be under the management and supervision of the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College.

            (2) The provisions of this Subsection shall become effective immediately upon receipt of approval from the Southern Association for Colleges and Schools, Commission on Colleges, for the requested change in governance.

            C. The Board of Supervisors of Louisiana State University and Agricultural and Mechanical College shall develop policies and procedures to resolve issues related to the status and tenure of employees of the University of New Orleans which may arise from the transfer of the institution to the Louisiana State University System, and shall take necessary actions to support the transition, including but not limited to:

            (1) The formation of a transition team comprised of stakeholders from the Greater New Orleans region and members of the House and Senate committees on education.

            (2) Development of a comprehensive transition plan informed by external assessments of finances, academic programs, and facilities as appropriate, to improve the academic, operational, and fiscal performance of the University of New Orleans, and present the plan to the Board of Regents and the House and Senate committees on education no later than April 1, 2026.

            D. The Board of Supervisors for the University of Louisiana System shall:

            (1) Continue to exercise its authority to supervise and manage the University of New Orleans until such time as the Southern Association for Colleges and Schools, Commission on Colleges, grants approval for the requested change in governance and transfer of the University of New Orleans to the Louisiana State University System.

            (2)(a) Work cooperatively and collaboratively with the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College to ensure that the requested transfer may be effected immediately upon receipt of commission approval for the change in governance.

            (b) Prior to receipt of such approval, enter into agreements to transfer as many administrative and supervisory functions as possible with respect to the University of New Orleans to the Louisiana State University System, without adversely impacting the accreditation status of the institution.

            (3) Prior to receipt of such approval, continue to balance the University of New Orleans' budget in close collaboration with the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, with a view to strengthening the fiscal health of the University of New Orleans.

            (4) Upon receipt of such approval, immediately transfer all assets, funds, facilities, property, obligations, liabilities, programs, and functions relative to the University of New Orleans to the Louisiana State University System.

            E. The Board of Supervisors for the University of Louisiana System shall not:

            (1) Interfere with, or impede in any way, the processes to transfer the University of New Orleans to the Louisiana State University System.

            (2) Sell, transfer, or otherwise remove any asset or thing of value, movable or immovable, tangible or intangible, attributable to or owned by the University of New Orleans, or owned, leased by, or operated by any foundation related to such institution. In addition, access to any asset leased to any foundation related to the University of New Orleans shall not be restricted or denied.

            (3) Incur, transfer, or assign any debt or other responsibility or obligation to the University of New Orleans that is not properly attributable to the institution.

            (4)(a) Disproportionately reduce or reallocate the level of funding that would otherwise be allocated to the University of New Orleans pursuant to the postsecondary education funding formula.

            (b) Until such time as the University of New Orleans is transferred to the Louisiana State University System, impose any budget reductions or changes in funding allocations upon the institution without prior review of the Board of Regents and approval from the Joint Legislative Committee on the Budget.

            F. The commissioner of administration shall:

            (1) Ensure that sufficient funds and resources are available to fully effect the transfer of the University of New Orleans to the Louisiana State University System. Such funding and resources shall not impact the Board of Regents' formula for the equitable distribution of funds to institutions of postsecondary education.

            (2) Purchase available insurance for indemnification and costs which may arise from the transfer; provided however, that the commissioner of administration shall indemnify and hold harmless the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College and the Board of Supervisors for the University of Louisiana System for any liability and costs which may result from the transfer of existing contracts, financing, or immovable property.

            G. Upon the date of transfer, any and all funds previously paid by the University of New Orleans to the Board of Supervisors for the University of Louisiana System shall be paid instead to the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College; however, the total amount of such payments shall not be less than that paid during the 2024-2025 Fiscal Year.

            H. The legislature shall appropriate sufficient funds to the Board of Supervisors of Louisiana State University and Agricultural and Mechanical College and the Board of Supervisors for the University of Louisiana System to fully effect the transfer of the University of New Orleans to the Louisiana State University System. The legislature may place reasonable conditions on the granting of transition funding, such as the receipt of a comprehensive transition plan or demonstration of benchmarks reached.

            Acts 2025, No. 447, §1, eff. June 20, 2025.