TITLE 19.EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 1. AGENCY ADMINISTRATION

Subchapter A. GENERAL PROVISIONS

19 TAC §1.8

The Texas Higher Education Coordinating Board adopts amendments to §1.8 of Board rules, concerning Historically Underutilized Business (HUB) Program without changes to the proposed text as published in the May 18, 2001, issue of the Texas Register (26 TexReg 3594).

The amendments to the rule will incorporate by reference the rules adopted by the General Services Commission in 1 Texas Administrative Code, §§111.11 - 111.28.

The purpose of the amendments to the rule is to comply with the Texas Government Code, Title 10, Subtitle D, Chapter 2161, §21.61.003, which requires state agencies to adopt General Services Commission (GSC) rules governing their HUB program for construction projects and purchases of goods and services paid for with state-appropriated funds. The amendments to the rule conforms to Senate Bill 178, 76th Legislature, which amended Chapter 2161 of the Texas Government Code and directed state agencies to adopt the General Services Commission's rules regarding historically underutilized businesses (HUB) as the agency's own rules.

There were no comments received in response to the proposed amendments.

The amendments to the rule are adopted under the Government Code, §2161.003, which requires the board to adopt the rules promulgated by the General Services Commission under Government Code, §2161.002.

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 July 25, 2001.

TRD-200104296

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: May 18, 2001

For further information, please call: (512) 427-6162


Chapter 5. PROGRAM DEVELOPMENT

Subchapter A. GENERAL PROVISIONS

19 TAC §5.11

Texas Higher Education Coordinating Board adopts amendments to §5.11 concerning the Common Admission Application without changes to the proposed text as published in the May 18, 2001 issue of the Texas Register (26 TexReg 3595). Specifically, these amendments provide for changing the method of allocating the cost of the electronic common application among the participating institutions.

There were no comments received in response to the proposed amendments.

The amendments to the rule are adopted under the Texas Education Code, §51.763, which provides that the governing board of a university system shall adopt a common admission application form and allow each applicant to apply electronically.

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 July 30, 2001.

TRD-200104385

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 19, 2001

Proposal publication date: May 18, 2001

For further information, please call: (512) 427-6162


Subchapter T. TOBACCO LAWSUIT SETTLEMENT FUNDS

19 TAC §5.421

The Texas Higher Education Coordinating Board adopts amendments to §5.421 concerning the Permanent Fund for Minority Health Research and Education without changes to the proposed text as published in the May 18, 2001, issue of the Texas Register (26 TexReg 3596).

Specifically, these amendments clarify the legislative intent by expressly including designation as a Historically Black or Hispanic serving institution as a criterion for award of grant funds.

There were no comments received in response to the proposed amendments.

The amendments to the rule are adopted under Texas Education Code §63.302, which directs the Coordinating Board to adopt rules for the award of grants from investment returns of the Permanent Fund.

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 July 25, 2001.

TRD-200104297

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: May 18, 2001

For further information, please call: (512) 427-6162


Chapter 17. CAMPUS PLANNING

Subchapter A. GENERAL PROVISIONS

19 TAC §§17.1 - 17.7

The Texas Higher Education Coordinating Board adopts new §§17.1 - 17.7 concerning Campus Planning (General Provisions). Sections 17.1, 17.3, 17.4, 17.6, and 17.7 are adopted with changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1641). Section 17.2 and §17.5 are being adopted without changes and will not be republished.

Existing Board rules concerning campus planning procedures were developed over a number of years and were amended numerous times. The new rules principally restructure the existing rules to streamline them, increase readability, and document existing practices. Specifically, the new rules establish standards for construction projects, processes for updating space projection models used by the Board, the use of eminent domain in the acquisition of real property, and reporting requirements.

Comments were received during the comment period and changes were made accordingly. Some minor changes were made due to staff comments to clarify the intent and improve the accuracy of the sections. Details of the comments and changes are described in the summary of comments that follow.

Comment: The Campus Planning Committee recommended that the Commissioner be allowed to reapprove projects originally approved by the Commissioner but not other projects that have been approved by the Committee or Board.

Response: The staff agrees and has amended §17.4(b)(1) accordingly. Section 17.4(b)(2) limitations on previously approved projects have been moved to §17.10(b).

Comment: The staff recommends that §17.4(b)(1) and (5), and (c) be renumbered, and the remaining subsections in §17.4 be renumbered for clarity and consistency.

Response: The sections have been amended accordingly.

The following comments were submitted by the University of Texas System:

Comment: Revise §17.1(c) to be consistent with the authority granted by Texas Education Code, §61.0572 to approve lease-purchase arrangements but not lease arrangements.

Response: The staff agrees and has amended the section accordingly.

Comment: Revise §17.2(6) to use the deferred maintenance definition recommended by THECB Building Condition Advisory Committee or specify that preventative maintenance be included only if it is deferred and exceeds $10,000.

Response: The staff disagrees. The definition proposed is in common use. While a dollar limitation is used in reporting requirements, it is not appropriate in the definition. No changes were made as a result of this comment.

Comment: Revise §17.3 to be consistent with the authority granted by Texas Education Code, §61.0572 in regards to lease-purchase arrangements.

Response: The staff agrees and has amended the section accordingly.

Comment: Revise §17.4(a) to include projects specifically approved by the legislature and projects financed by bonds issued under certain statutory provisions.

Response: The staff agrees and has amended the section accordingly.

Comment: Revise §17.4(a)(4) to delete quoted text, "and further that".

Response: The staff agrees and has amended the section accordingly.

Comment: Revise §17.4(b) to specifically recognize certification by the proposing institution's governing board or its duly appointed delegate that Board-approved criteria are met.

Response: The staff disagrees. The proposed change is not necessary. No changes were made as a result of this comment.

Comment: Add a provision to §17.4(b)(1)(D) in regards to eminent domain proceedings that authorizes the institution to pay damages assessed by the special commissioners court without seeking further approval from the Board or its delegate and to promptly report to the Board the amount of damages awarded.

Response: The staff agrees that this would be a desirable change to the current policy and the section was modified accordingly.

Comment: Delete §17.4(b)(5) relating to construction of new E&G space having a value of less than $1 million.

Response: The staff agrees and the section has been deleted accordingly.

Comment: Revise §17.4(b)(6) to be consistent with the provisions of Texas Education Code, §61.058 in regards to the review of projects financed by more than 50% with bonds issued under certain statutory provisions.

Response: The staff agrees. §17.4(b)(6) has been deleted and §17.4 was revised to clarify that the Commissioner shall evaluate these types of projects but not approve them.

Comment: Revise §17.6 to include a statement for flexibility, in appropriate circumstances, if a project does not meet the Board's standards.

Response: The staff disagrees. No changes were made as a result of this comment.

Comment: Revise §17.6(1) and §17.42 to reflect that the Board's space projection models should forecast space needs five years out to allow time for a project's programming, design, and construction.

Response: The staff disagrees. Infrastructure formula funding is based on the space projection model, and funding infrastructure based on future needs would be inappropriate. Forecast growth is considered in construction needs decisions. No changes were made as a result of this comment.

Comment: Revise §17.6(1) and §17.42 in regards to the Board's standard for space needs to exclude Board review of projects with clinical care facilities to be consistent with Texas Education Code, §61.0572 and the exclusion of clinical and research facilities as in Texas Education Code, §61.0572(d)(2).

Response: The staff agrees and §17.6(1) was revised accordingly and §17.4(a)(5) specifically excludes the Board's approval authority for gifts, grants, or lease-purchase arrangements intended for clinical and research facilities. Section 17.42 relates to the Board's space-planning models not project reviews. No changes were made to §17.42.

Comment: Revise §17.6(2) in regards to the Board's standard for square foot construction cost to be less that the highest cost reported to R. S. Mean's or the 80th percentile of projects approved by the Board (adjusted for inflation), whichever is greater.

Response: The staff agrees and has amended the section accordingly.

Comment: Reconsider the Board's standard set out in §17.6(4). Consider raising the deferred maintenance ratio to replacement cost to 0.10 with a goal of 0.05 or use a building condition assessment in lieu of a ratio.

Response: The staff disagrees. The Board's 0.05 standard for deferred maintenance costs to replacement values follows a national standard. No changes were made as a result of this comment.

Comment: Revise §17.7(5) to remove the sentence that the Board may waive any rule or standard should it determine that a project may be in the best interest of the institution and the State to do so, and place the statement to §17.1 so that it applies to all projects under the Board's consideration.

Response: The staff disagrees. Section 17.7 is a policy that the Board adopted October 2000 that relates specifically to funding the construction of intercollegiate athletic activities. The Board's review, approval, and disapproval of all construction projects and real property acquisitions are based on standards set out in Texas Education Code, §61.0572 to assure the efficient use of construction funds and the orderly development of physical plants and to carry out its duties prescribed in Texas Education Code, §61.058. No changes were made as a result of this comment.

The new rules are adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §61.0572 and §61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

§17.1.Authority, Scope, and Purpose.

(a) Authority. Authority for this chapter is provided in the Texas Education Code, Chapter 61, Subchapter C, Powers and Duties of the Texas Higher Education Coordinating Board. These rules establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants to accommodate projected college student enrollments, as prescribed in the Texas Education Code, §61.0572 and §61.058.

(b) Scope. Unless otherwise noted, this chapter applies to all Texas public institutions of higher education as defined in Texas Education Code, §61.058, except community colleges.

(c) Purpose. This chapter provides guidance to the public and to public institutions of higher education related to procedures of the Texas Higher Education Coordinating Board for: approval or disapproval of construction projects, property acquisitions, or lease-purchase arrangements; assuring maximum use of facilities; and developing standards and policies for management of physical plants designed to streamline operations and improve accountability.

§17.3.Governing Board Approval Required.

The Coordinating Board shall not consider for review any construction project, real property acquisition, or lease-purchase space that shall be added to an institution's facilities inventory if it has not been approved by the appropriate board of regents.

§17.4.Delegation of Authority.

(a) The following types of projects are exempt from Coordinating Board approval:

(1) New construction projects costing less than $1 million;

(2) Major R&R projects costing less than $2 million;

(3) Projects at The University of Texas at Austin, Texas A&M University, and Prairie View A&M University financed more than 50% with Permanent University Fund bond proceeds or Available University Fund funds;

(4) Construction, repair, or rehabilitation of privately owned buildings and facilities on land leased from an institution if the construction, repair, or rehabilitation is financed entirely from funds not under the control of the institution.

(5) Gifts, grants, or lease-purchase arrangements intended for clinical or research facilities.

(6) New construction or major repair and rehabilitation projects specifically approved by the legislature.

(b) The Board authorizes the Commissioner to review or approve the following types of projects on certification by the proposing institution's governing board that Board-approved criteria are met:

(1) Projects previously reviewed or approved by the Commissioner but requiring re-consideration under the provisions of §17.10 (b) of this title (relating to New Construction and Repair and Rehabilitation Projects), providing they continue to be eligible for Commissioner approval.

(2) Auxiliary enterprise projects being acquired, constructed, or renovated without the use of state general revenue funds and with a total projected cost of less than $10 million;

(3) Major R&R of existing E&G buildings or facilities that will not add E&G space with a total projected cost of less than $5 million;

(4) Gifts, purchase or acquisition of real property having a value of less than $300,000; and

(5) Projects funded more than 50% with tuition revenue bond proceeds. If the project does not meet Board standards, the Board shall notify the governor, lieutenant governor, the speaker of the House of Representatives, and the Legislative Budget Board.

(c) Board authorized criteria referenced in §17.4(b)(1) of this title (relating to Delegation of Authority) include the following:

(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 the project cost.

(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 shall 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 shall be 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 report) or is an opportunity or emergency that could not have been foreseen.

(d) The Coordinating Board authorizes the Campus Planning Committee to approve the following types of projects:

(1) Gifts, purchase or acquisition of real property having a value of $300,000 to $5 million;

(2) Construction of new E&G space having a value of $1 million to $5 million;

(3) Major R&R of existing E&G buildings or facilities that will not add E&G space with a project cost of $5 million or more; and

(4) Auxiliary enterprise projects costing between $10 million and $20 million.

(5) Projects previously approved but requiring re-approval under the provisions of §17.10 (b) of this title (relating to New Construction and Repair and Rehabilitation Projects), and not eligible for re-approval by the Commissioner.

(e) In making their decisions, the Commissioner and the Campus Planning Committee shall be guided by their judgment as to whether or not the full Board would approve the project, were it being brought to the Board.

(f) The Commissioner may refer projects to the Campus Planning Committee or the Board. The Campus Planning Committee may refer projects to the Board.

(g) Decisions of the Campus Planning Committee are final. Decisions of the Commissioner may be appealed to the Board.

(h) The following types of projects shall be approved by the Board:

(1) Gifts, purchase or acquisition of real property having a value over $5 million;

(2) Construction of new E&G space having a value over $5 million;

(3) Auxiliary enterprise projects costing more than $20 million.

(4) Any project referred to the Board by the Campus Planning Committee or the Commissioner.

§17.6.Coordinating Board Standards.

The following basic standards shall apply to all projects considered by the Board, Campus Planning Committee, or the Commissioner.

(1) Space Need--The project shall not create a campus space surplus, as determined by the Coordinating Board's space projection models, §17.42 of this title (relating to Space Projection Models).

(2) Cost--The construction building cost per gross square foot shall be less than the highest actual construction cost per gross square foot reported to R. S. Means or the 80th percentile of projects approved by THECB (adjusted for inflation), whichever is greater. The proposed purchase price of real property acquisitions should not exceed the highest appraised amount.

(3) Efficiency--The ratio of NASF to GSF in a building or facility shall be 0.60 or greater.

(4) Deferred Maintenance--The ratio of campus-deferred maintenance costs to replacement cost shall be 0.05 or less.

(5) Critical Deferred Maintenance--There shall be a plan in place to address any critical deferred maintenance reported on the master plan.

§17.7.Intercollegiate Athletic Funded Projects.

The following shall apply to Board consideration of projects that support intercollegiate athletics at Texas public universities. It does not apply to projects exempt from Board approval, §17.1 and §17.4 of this title (relating to General Provisions).

(1) Where a facility is used for both intercollegiate athletics and educational and general purposes, the cost of the facility should be appropriately prorated.

(2) This policy limits the use of student fees for financing construction projects that support intercollegiate athletics to no more than 50% of the total project cost at Texas institutions that participate in the Bowl Championship Series and to 75% of the total project cost at other universities.

(3) For institutions participating in the NCAA Football Bowl Championship Series, Board approval of projects supporting intercollegiate athletics shall normally be conditional upon a finding that no more than 50% of the financing is derived, directly or indirectly from students.

(4) For institutions not participating in the NCAA Football Bowl Championship Series, Board approval of projects supporting intercollegiate athletics shall normally be conditional upon a finding that no more than 75% of the financing is derived, directly or indirectly, from students.

(5) The Board may waive any of the above conditions, should it determine that it is in the best interest of the affected institution and the State to do so.

(6) In making its findings, the Board may consider the total allocation of revenue supporting intercollegiate athletics.

(7) Definitions. The following words and terms shall have the following meaning, unless the context clearly indicates otherwise.

(A) Intercollegiate athletic facilities--Any facility for the purpose of supporting intercollegiate athletics, including stadiums, arenas, multi-purpose centers, playing fields, locker rooms, coaches' office, etc.

(B) Financing directly derived from students--Funds resulting from the collection of fees or other charges to students, such as designated tuition, student activities fees, housing revenue, bookstore or student union revenue, etc. Bond proceeds for which one or more of these sources provides debt service shall also be considered financing directly derived from students.

(C) Financing indirectly derived from students--Funds generated from funds accumulated from students, primarily interest on funds accumulated directly from students.

(D) Non-student sources--Funds generated from athletic department operations, gifts and grants, facility usage fees, related revenue, and appropriated funds.

(E) NCAA Football Bowl Championship Series--A program of the NCAA under which certain NCAA Division I-A football universities share proceeds of college bowl games.

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 July 25, 2001.

TRD-200104298

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter A. CRITERIA FOR APPROVAL OF NEW CONSTRUCTION AND MAJOR REPAIR AND REHABILITATION

19 TAC §§17.21 - 17.27, 17.31, 17.33

The Texas Higher Education Coordinating Board adopts the repeal of §§17.21 - 17.27, 17.31 and 17.33 concerning Campus Planning (Criteria for Approval of New Construction and Major Repair and Rehabilitation) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1641). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The rules are being repealed to restructure the existing rules to increase readability.

There were no comments on the repeal of the rules.

The repeal of the rules is adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §61.0572 and §61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

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 July 25, 2001.

TRD-200104303

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter B. NEW CONSTRUCTION AND REPAIR AND REHABILITATION PROJECTS

19 TAC §17.10, §17.11

The Texas Higher Education Coordinating Board adopts new §17.10 and §17.11 concerning Campus Planning (New Construction and Repair and Rehabilitation Projects) with changes to §17.10 of the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1644). Section 17.11 is being adopted without changes and will not be republished. Existing Board rules concerning campus planning procedures were developed over a number of years and were amended numerous times. The new rules principally restructure the existing rules to streamline them, increase readability, and document existing practices. Specifically, the new rules establish standards for construction projects, processes for updating space projection models used by the Board, the use of eminent domain in the acquisition of real property, and reporting requirements.

No comments were received in response to the proposed rules.

The new rules are adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §61.0572 and §61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

§17.10.Evaluation Considerations.

(a) Subject to the provisions of §17.1 and §17.4 of this title (relating to General Provisions), the Board shall approve or disapprove all new construction and repair and rehabilitation of all buildings and facilities at institutions of higher education financed from any source.

(b) Previously approved projects must be re-approved if:

(1) the total cost of a project exceeds cost estimates by more than 10%, or

(2) gross square footage is changed by more than 10%, or

(3) contracts on the project have not been let within 18 months from its final approval date, or

(4) any change in the funding source of an approved project.

(c) The Board's consideration and determination shall be limited to the purpose for which the new or remodeled buildings are to be used to assure conformity with approved space utilization standards and the institution's approved programs and role and mission if the cost of the project is not more than $2,000,000.

(d) The Board shall consider the purpose for which the new or remodeled buildings are to be used and cost factors and the financial implications of the project to the state if the total cost is in excess of $2,000,000.

(e) The Board shall consider the extent to which each of the standards in §17.6 of this title (relating to Coordinating Board Standards) is met.

(f) The Board shall ascertain that standards and specifications for new construction, repair and rehabilitation of all buildings and facilities are in accordance with Article 9102, Revised Statutes.

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 July 25, 2001.

TRD-200104299

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter B. APPLICATION FOR APPROVAL OF NEW CONSTRUCTION AND MAJOR REPAIR AND REHABILITATION

19 TAC §§17.41 - 17.46

The Texas Higher Education Coordinating Board adopts the repeal of §§17.41 through 17.46 concerning Campus Planning (Application for Approval of New Construction and Major Repair and Rehabilitation) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1644). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The rules are being repealed to restructure the existing rules to increase readability.

There were no comments received regarding the repeal of the rules

The repeal of the rules is adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §§61.0572 and 61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

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 July 25, 2001.

TRD-200104304

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter C. REAL PROPERTY ACQUISITION PROJECTS

19 TAC §§17.20 - 17.24

The Texas Higher Education Coordinating Board adopts new §§17.20 - 17.24 concerning Campus Planning (Real Property Acquisition Projects) with changes to §17.24 of the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1645). Sections 17.20 - 17.23 are being adopted without changes and will not be republished. Existing Board rules concerning campus planning procedures were developed over a number of years and were amended numerous times. The new rules principally restructure the existing rules to streamline them, increase readability, and document existing practices. Specifically, the new rules establish standards for construction projects, processes for updating space projection models used by the Board, the use of eminent domain in the acquisition of real property, and reporting requirements.

No comments were received in response to the proposed rules.

The new rules are adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §61.0572 and §61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

§17.24.Eminent Domain.

Coordinating Board approval of acquisitions in which eminent domain may be necessary shall be obtained prior to the commencement of eminent domain proceedings. The institution shall provide to the Coordinating Board evidence of efforts made to reach an agreement with the property's owner and an estimate of the projected legal costs associated with the eminent domain proceeding. In the event the court establishes a purchase price 10% higher than that approved by the Board, the institution shall promptly report the amount to the Board, but it is not necessary to seek reapproval.

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 July 25, 2001.

TRD-200104300

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter C. REQUESTING COORDINATING BOARD ENDORSEMENT OF REAL PROPERTY ACQUISITIONS

19 TAC §§17.61 - 17.68

The Texas Higher Education Coordinating Board adopts the repeal of §§17.61 through 17.68 concerning Campus Planning (Requesting Coordinating Board Endorsement of Real Property Acquisitions) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1645). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The rules are being repealed to restructure the existing rules to increase readability.

There were no comments received regarding the repeal of the rules.

The repeal of the rules is adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §§61.0572 and 61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

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 July 25, 2001.

TRD-200104305

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter D. LEASED SPACE

19 TAC §17.30, §17.31

The Texas Higher Education Coordinating Board adopts new §17.30 and §17.31 concerning Campus Planning (Leased Space) with changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1647). Existing Board rules concerning campus planning procedures were developed over a number of years and were amended numerous times. The new rules principally restructure the existing rules to streamline them, increase readability, and document existing practices. Specifically, the new rules establish standards for construction projects, processes for updating space projection models used by the Board, the use of eminent domain in the acquisition of real property, and reporting requirements.

No comments were received in response to the proposed rules.

The new rules are adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §61.0572 and §61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

§17.30.Limitations.

The Board shall review and approve as an addition to an institution's E&G buildings and facilities inventory any improved real property acquired by gifts or lease-purchase if:

(1) the institution requests to place the improved real property on its E&G buildings and facilities inventory; and

(2) the value of the improved real property is more than $300,000 at the time the institution requests the property to be added to the E&G buildings and facilities inventory.

§17.31.Evaluation Considerations.

The Board shall ascertain that provisions of Chapter 17, Subchapters A through C are followed in regards to lease-purchase space acquired by an institution.

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 July 25, 2001.

TRD-200104301

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter D. AUDITS OF EDUCATIONAL AND GENERAL FACILITIES

19 TAC §17.81

The Texas Higher Education Coordinating Board adopts the repeal of §17.81 concerning Campus Planning (Audits of Educational and General Facilities) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1647). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The rules are being repealed to restructure the existing rules to increase readability.

There were no comments received regarding the repeal of the rules.

The repeal of the rules is adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §§61.0572 and 61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

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 July 25, 2001.

TRD-200104306

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Subchapter E. INSTITUTIONAL REPORTING

19 TAC §§17.40 - 17.42

The Texas Higher Education Coordinating Board adopts new §§17.40 - 17.42 concerning Campus Planning (Institutional Reporting) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1648). Existing Board rules concerning campus planning procedures were developed over a number of years and were amended numerous times. The new rules principally restructure the existing rules to streamline them, increase readability, and document existing practices. Specifically, the new rules establish standards for construction projects, processes for updating space projection models used by the Board, the use of eminent domain in the acquisition of real property, and reporting requirements.

Comments were received during the comment period.

Comment: Revise §17.6(1) and §17.42 to reflect that the Board's space projection models should forecast space needs five years out to allow time for a project's programming, design, and construction.

Response: The staff disagrees. Infrastructure formula funding is based on the space projection model, and funding infrastructure based on future needs would be inappropriate. Forecast growth is considered in construction needs decisions. No changes were made as a result of this comment.

Comment: Revise §17.6(1) and §17.42 in regards to the Board's standard for space needs to exclude Board review of projects with clinical care facilities to be consistent with Texas Education Code, §61.0572 and the exclusion of clinical and research facilities as in Texas Education Code, §61.0572(d)(2).

Response: The staff agrees and §17.6(1) was revised accordingly and §17.4(a)(5) specifically excludes the Board's approval authority for gifts, grants, or lease-purchase arrangements intended for clinical and research facilities. Section 17.42 relates to the Board's space-planning models not project reviews. No changes were made to §17.42.

The new rules are adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, §61.0572 and §61.058, which provides the Board the authority to establish and enforce standards to assure efficient use of construction funds and the orderly development of physical plants.

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 July 25, 2001.

TRD-200104302

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 14, 2001

Proposal publication date: February 23, 2001

For further information, please call: (512) 427-6162


Chapter 21. STUDENT SERVICES

Subchapter A. GENERAL PROVISIONS

19 TAC §21.3

Texas Higher Education Coordinating Board adopts amendments to §21.3 concerning Loan Repayment Deferral and Loan Forgiveness for Emergency Tuition Loans made under the Texas Education Code, §56.051 without changes to the proposed text as published in the May 18, 2001 issue of the Texas Register (26 TexReg 3596). Specifically, these amendments will clarify that the loans are for both tuition and fees and that institutions are required to offer deferrals to students who would otherwise be deprived of an education due to a lack of financial ability. In addition, the amendments will clarify the dates when repayment must begin if a deferral is granted and clarify that institutions are required to forgive emergency loans to individuals who meet the forgiveness criteria outlined in Board rules.

There were no comments received in response to the proposed amendments.

The amendments to the rule are adopted under the Texas Education Code, §56.051, which provides the Coordinating Board with the authority to adopt rules under which each institution of higher education may establish an emergency loan program under which students are loaned money to pay tuition and fees.

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 July 30, 2001.

TRD-200104386

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 19, 2001

Proposal publication date: May 18, 2001

For further information, please call: (512) 427-6162


Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter A. GENERAL PROVISIONS FOR ALL GRANT AND SCHOLARSHIP PROGRAMS DESCRIBED IN THIS CHAPTER

19 TAC §22.6

Texas Higher Education Coordinating Board adopts amendments to §22.6 concerning the General Provisions for all Grant and Scholarship Programs Described in Chapter 22 without changes to the proposed text as published in the May 18, 2001 issue of the Texas Register (26 TexReg 3597). Specifically, these amendments will allow for increased efficiency in awarding grant monies to eligible students by allowing for flexibility in setting reallocation dates and by allowing certain financial aid programs to be administered as campus-based programs whereby all awarding and adjustments would be handled locally at the institution of higher education.

There were no comments received in response to the proposed amendments.

The amendments to the rule are adopted under the Texas Education Code, §56.051, which provides the Coordinating Board with the authority to adopt rules under which each institution of higher education may establish an emergency loan program under which students are loaned money to pay tuition and fees.

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 July 30, 2001.

TRD-200104387

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 19, 2001

Proposal publication date: May 18, 2001

For further information, please call: (512) 427-6162


Subchapter I. PROVISIONS FOR THE FIFTH-YEAR ACCOUNTING STUDENT SCHOLARSHIP PROGRAM

19 TAC §22.163

Texas Higher Education Coordinating Board adopts amendments to §22.163 concerning the Fifty-Year Accounting Student Scholarship Program without changes to the proposed text as published in the May 18, 2001 issue of the Texas Register (26 TexReg 3598). Specifically, these amendments provide for changing the method of allocating the cost of the electronic common application among the participating institutions.

There were no comments received in response to the proposed amendments.

The amendments to the rule are adopted under the Texas Education Code, §61.751, which provides the Coordinating Board with the authority to establish and administer scholarships for fifth-year accounting students.

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 July 30, 2001.

TRD-200104388

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: August 19, 2001

Proposal publication date: May 18, 2001

For further information, please call: (512) 427-6162