(a) The board shall establish and maintain coeducational lower-division institutions of higher education as separate accredited degree-granting institutions in the counties of Jefferson and Orange, to be known as Lamar State College– Port Arthur and Lamar State College– Orange, to teach only freshman- and sophomore-level courses.
(b) The board may acquire, construct, or otherwise make provision for adequate physical facilities for use by Lamar State College– Port Arthur and Lamar State College– Orange and may accept and administer, on terms and conditions satisfactory to the board, grants or gifts of money or property tendered by any reason for the use and benefit of the school.

(c) The board with approval of the Texas Higher Education Coordinating Board may prescribe courses leading to customary degrees. The board may make other rules and regulations for the operation, control, and management of Lamar State College– Port Arthur and Lamar State College– Orange as are necessary for each institution to be a first-class institution for freshman and sophomore students.
(d) Nothing in this section shall be construed to limit the powers of the board as conferred by law.
(e) For Lamar State College– Port Arthur and Lamar State College– Orange, the board may expend funds allocated to Lamar University under Chapter 62 for any of the purposes listed in § 17, Article VII, Texas Constitution, in the same manner and under the same circumstances as expenditures for those purposes for other separate degree-granting institutions.
(f) A reference in state law to Lamar University at Port Arthur means Lamar State College–Port Arthur. A reference in state law to Lamar University at Orange means Lamar State College–Orange.