(a) In this section:
(1) “Contract” means an agreement between an institution of higher education or its authorized agent and a faculty member that establishes the terms of the faculty member’s employment, including the faculty member’s responsibilities and salary, for an academic year.
(2) “Faculty member” means a person who is employed full time by an institution of higher education as a member of the faculty whose primary duties include teaching or research. The term does not include:
(A) a person employed in the classified personnel system of the institution or a person employed in a similar type of position if the institution does not have a classified personnel system;
(B) a person who holds faculty rank but who spends a majority of the person’s time for the institution engaged in managerial or supervisory activities, including a chancellor, vice chancellor, president, vice president, provost, associate or assistant provost, dean, or associate or assistant dean.
(3) “Institution of higher education” has the meaning assigned by § 61.003.
(b) Except as provided in Subsection (c), an institution of higher education that determines it is in its best interest to reappoint a faculty member for the next academic year shall offer the faculty member a written contract for that academic year not later than 30 days before the first day of the academic year.

(c) For the purposes of this section, an institution of higher education is not required to provide an annual contract to tenure or tenure-track faculty, but must provide tenure and tenure-track faculty with any written notification required in the institution’s tenure policy of a change in a term of employment according to the policies of the institution, but no later than the 30th day prior to the change.
(d) If the institution of higher education is unable to comply with Subsection (b), the institution shall:
(1) provide the faculty member with written notification that the institution is unable to comply with Subsection (b);
(2) include in the written notification reasons for its inability to comply with Subsection (b); and
(3) specify in the written notification a time by which it will offer a written contract to the faculty member for the applicable academic year.
(e) If the institution does not offer the faculty member a written contract before the 61st day after the first day of the academic year and the institution retains the faculty member for that academic year without a written contract, the institution must retain the faculty member for that academic year under terms and conditions, including terms governing the faculty member’s compensation, that are at least as favorable to the faculty member’s employment for the preceding academic year, unless the institution and the faculty member subsequently enter into a different written contract.
(f) This section does not prohibit an institution of higher education from entering into a contract with a faculty member for a period longer than an academic year.
(g) Nothing in this section shall be deemed to provide a faculty member who does not hold tenure additional rights, privileges, or remedies or to provide an expectation of continued employment beyond the period of a faculty member’s current contract.