(1) Organizations of the character designated in Section 37-111-1 shall not be required to adhere to any rule or regulation promulgated by the State Board of Institutions of Higher Learning or any college or university under the board's authority that requires such organization to accept into membership a person who has had or in the process of having gender reassignment surgery, gender transition or any gender transition procedures.

(2) The State Board of Institutions of Higher Learning and any college or university under its authority shall not penalize or in any manner negatively change the benefits or resources of an organization of the character designated in Section 37-111-1 because the organization chooses not to accept into its membership any person who has had or is in the process of having gender reassignment surgery, gender transition or gender transition procedures.