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As a consolation prize, the Longhorns will play the University of Michigan in the Cheez-It Citrus Bowl on Dec. 31 in Orlando.
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The Select Committees on Civil Discourse and Freedom of Speech in Higher Education were formed days after Kirk's assassination on a Utah college campus. Members assembled Thursday in Austin for their first meeting to assess state free speech laws.
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University officials dispute the faculty council's conclusion. Melissa McCoul lost her job after a video of a classroom debate went viral.
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Some students and professors say recent changes and scandals chill speech at universities. Others argue that conservative opinions can now be shared more freely.
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The new law, called the "Campus Protection Act," requires student groups to get the university's permission before inviting guest speakers to campus, among other restrictions. Students have raised concerns that these changes limit their free speech.
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Members of the University Democrats said the new state law disrupts their ability to invite guest speakers and volunteer voter registrars to campus.
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Gov. Greg Abbott called for a student to be expelled for celebrating Kirk's death. Legal experts say the student's speech is likely constitutionally protected.
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The state isn't providing schools with guidance and advocates say students who still qualify for lower rates are being asked to pay thousands more.
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While other universities move to preserve the advisory bodies, Texas State will abolish them under a new state law that curtails faculty's influence on campuses.
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The directive comes after a court rescinded undocumented students' eligibility for in-state tuition. It's unclear what information schools might ask from students and how their immigration data will be protected.