19 TAC §17.46
The Texas Higher Education Coordinating Board adopts amendments
to Chapter 17, Subchapter B, §17.46, concerning Application for Approval
of New Construction and Major Repair and Rehabilitation (Special Approval
Procedures) with changes to the proposed text as published in the March 12,
1999, issue of the
Texas Register
(24 TexReg
1722). The proposed amendments provide special approval procedures for four
types of Campus Planning projects. The proposed amendments would extend these
special approval procedures to one additional type of project - projects funded
with tuition revenue bonds. The proposed amendments specify criteria that
governing boards will certify prior to consideration of approval by the Commissioner.
Comments regarding the proposed amendments were received from the following
institutions: Texas A&M University System, Texas A&M University, The
University of Texas System, The University of Texas Health Science Center
at Houston, The University of Texas M.D. Anderson Cancer Center, The University
of Texas Health Science Center at San Antonio, The University of Texas at
Brownsville, Texas Tech University, and The University of Texas at Austin.
Comments were received on the criteria to be certified in order for facilities
projects to qualify for Commissioner review under §17.46 (e). Comments
were made regarding the following specific criteria: Comments regarding Construction
cost. Although not included in the rules, the Board standard for construction
cost is the maximum cost for the project, as specified by the R.S. Means Company,
Inc. Square Foot Costs. Institutional representatives stated this publication
does not adequately represent facilities costs for Texas public higher education
institutions, especially if used as an absolute indicator for cost. A suggestion
was made to expand the criteria to allow certification that variances have
been reviewed and are considered reasonable due to factors specific to the
project. Agency's response: In lieu of a better suggestion, the R.S. Means
Company, Inc. Square Foot Costs will be used as the current standard. Staff
will include analyses of specific features that increase the costs of projects.
Comments regarding Gift funds: Institutional representatives suggested that
this criterion be relevant to private gift and grant funds only, not for gifts
and grants from established foundations or trusts. Agency's response: The
wording has been changed to apply to private gift and grants only. Comments
regarding Student fees: Comments stated that there is ambiguity in the definition
of student fees. The legislature requires student approval to be obtained
on certain types of student fees. Comments suggested the criteria apply only
to these types of student fees. Agency's response: The language has been changed
to apply to only student fees for which student approval is required prior
to an increase is made. Comments regarding Privatization: Institutional representatives
suggested that the external review of the feasibility of privatization should
not be required. External reviews are time consuming and costly, and the work
can be done internally. Agency's response: The language has been changed to
require that privatization be considered but eliminating a requirement for
an external review. Comments regarding Flood plain: Comments suggested expanding
the criteria to allowing certification that if facilities are in the 100-year
flood plain, they meet requirements established by local building authorities
and the FEMA (Federal Emergency Management Agency). Agency's response: The
language has been changed to require that projects in the 100-year flood plain
meet requirements established by the Texas Natural Resources Conservation
Commission and the FEMA (Federal Emergency Management Administration). Comments
regarding Master Plan: Institutional representatives stated that the acquisition
of land should not be telegraphed far in advance, and this criterion doesn't
allow them to take advantage of opportunities that arise. Agency's response:
Wording was changed to clarify this refers to long range campus master plans,
in which institutions delineate the campus boundary and general areas in which
land will be purchased and the campus expanded. Comments regarding Project
Ranking: Comments suggested that ranking on campus master plans is unworkable
and that the criteria be expanded to allow institution to explain the reason
for submitting out-of-sequence project. Agency's response: The wording was
changed to eliminate project ranking and to state that a project not on the
Master Plan may be considered if it is an emergency that careful planning
could not have foreseen. Comments regarding Certification by Board of Regents:
Allow Board of Regents to delegate authority to Chancellor. Agency's response:
(No change.)s were needed. Changes were made accordingly as a result of the
comments listed above.
The amendments to the rules are adopted under Texas Education
Code, Section 61.058 which provides the Texas Higher Education Coordinating
Board with the authority to adopt rules concerning Application for Approval
of New Construction and Major Repair and Rehabilitation (Special Approval
Procedures).
§17.46.Special Approval Procedure.
(a)
The Coordinating Board authorizes the Campus Planning Committee
to review and approve the following types of projects:
(1)-(2)
(No change.)
(3)
Major repair and rehabilitation of existing education
and general buildings that will not add educational and general space with
a total projected project cost of $5 million or more; and
(4)
(No change.)
(b)
(No change.)
(c)
The Coordinating Board authorizes the Commissioner to review
and approve the following types of projects on certification by the proposing
institution's governing board that Coordinating Board-approved criteria are
met:
(1)
(No change.)
(2)
major repair and rehabilitation of existing education
and general buildings that will not add educational and general space with
a total projected project cost of less than $5 million; and
(3)
gifts, purchase or acquisition of real property having
a value of less than $300,000; and
(4)
construction of new educational and general space
having a value of less than $1 million; and
(5)
projects funded more than 50 percent with tuition
revenue bond proceeds.
(d)
(No change.)
(e)
The Commissioner shall consider projects for approval after
certification by the Governing Board that the following criteria are met,
where applicable. If the governing board cannot make the appropriate certification,
projects shall be referred to the Campus Planning Committee for its consideration.
(1)
Board standards regarding space need are met.
(2)
Board standards regarding construction cost and efficiency
are met.
(3)
Board standards regarding deferred maintenance are
met, or the project will reduce campus deferred maintenance by an amount
equal to no less than 50% of project costs.
(4)
If the project financing involves private gift and
grant funds, these funds are either in-hand or the governing board has committed
an alternative source of funds, should the primary source of funds not be
forthcoming, or has agreed to forego the project.
(5)
If the project will cause an increase in student fees,
such increases have been executed in accordance with the applicable laws
concerning approval by the student body.
(6)
If the project involves construction of a dormitory,
bookstore, food service facility, or other facility for which privatization
may be a viable alternative, the governing board has considered the feasibility
of privatization of both construction and operation of the facility.
(7)
The project will comply with the minimum flood plain
management standards established by the Texas Natural Resources Conservation
Commission and the Federal Emergency Management Administration (FEMA).
(8)
If the project includes the acquisition of real property,
appropriate consideration has been given to the effect of the acquisition
on residential neighborhoods.
(9)
If the project includes the acquisition of real property,
the acquisition is included in the institution's long-range campus master
plan.
(10)
The project is included in the institution's most
recently submitted Campus Master Plan (MP1) or is an opportunity or emergency
that could not have been foreseen at the time the MP1 was submitted.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of the Secretary of State on May
25, 1999.
TRD-9903095
James McWhorter
Assistant Commissioner for Administration
Texas Higher Education Coordinating Board
Effective date: June 14, 1999
Proposal publication date: March 12, 1999
For further information, please call: (512) 483-6162