TITLE 19.EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 1. AGENCY ADMINISTRATION

Subchapter D. STANDARDS OF CONDUCT

19 TAC §§1.60 - 1.67

The Texas Higher Education Coordinating Board adopts new §§1.60 - 1.67 concerning Agency Administration (Standards of Conduct) with changes to §1.64 of the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1625). §§1.60, 1.61, 1.62, 1.63, 1.65, 1.66, 1.67 are being adopted without changes and will not be republished. Specifically, these new rules govern all aspects of conduct of the Board and its employees in these relationships, including the administration and investment of funds received for the benefit of the Board, the use of an employee or property by the donor or organization, service by an officer or employee of the Board as an officer or director of the donor or organization, and monetary enrichment of an officer or employee of the agency of the donor or organization.

There were no comments received concerning the new rules, however, it was suggested that the Board may wish to authorize the Chair of the Board, instead of the Commissioner, to cooperatively appoint a board of directors for a private organization formed under §1.64. Section 1.64 has been changed to reflect that suggestion.

The new rules are adopted under Texas Education Code, §61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, Texas Education Code, §61.038, which authorizes the Board to accept donations, and Texas Government Code, §2255.001, which authorizes a state agency to adopt rules governing the relationship between a donor or organization, and the agency and its employees.

§1.64.Organizing a Private Organization That Exists To Further the Duties and Purposes of the Board.

(a)

The Chair of the Board and the membership of a private organization covered by these sections may cooperatively appoint a board of directors for the organization. The Chair of the Board shall be a non-voting member. Board employees may hold office and vote provided there is no conflict of interest in accordance with all federal and state laws and Board policies. This provision applies to the employee's spouse and children.

(b)

As an alternative to the method described in subsection (a) of this section, the private organization may decide not to have its board cooperatively appointed.

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 1, 2001.

TRD-200102472

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Chapter 13. FINANCIAL PLANNING

Subchapter A. GENERAL PROVISIONS

19 TAC §§13.1 - 13.3

The Texas Higher Education Coordinating Board adopts the repeal of §§13.1 - 13.3 concerning financial planning for public institutions of higher education (General Provisions) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1627). The rules are being repealed and new rules are being written that would simplify and streamline financial planning procedures and that would incorporate existing standards into the rules.

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

The repeal of the rules is adopted under the Texas Education Code, §§61.059b, 61.065, 51.005 and 51.0051 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning financial planning for public institutions of higher education (General Provisions).

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 1, 2001.

TRD-200102482

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter A. DEFINITIONS

19 TAC §13.1

The Texas Higher Education Coordinating Board adopts new §13.1 concerning financial planning for public institutions of higher education (Definitions) with changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1627). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules. Specifically, the new rules will provide definitions used in Chapter 13.

There were no comments received concerning the new rules.

The new rules are adopted under Texas Education Code, §61.059b, which provides the Texas Higher Education Coordinating Board the authority to review and revise funding formulas; Texas Education Code, §61.065, which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and Texas Education Code, §51.005 and §51.0051, which provides the Coordinating Board with the authority to approve the form of reports.

§13.1.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Auxiliary Enterprise -- Activities providing a service to students, faculty, or staff for a fee directly related to, although not necessarily equal to, the cost of the service.

(2)

Available University Fund (AUF) -- A fund established in Article 7 of the Constitution to receive all interest and earnings of the Permanent University Fund and used to pay the debt service on PUF-backed bonds.

(3)

Board or Coordinating Board -- The Texas Higher Education Coordinating Board.

(4)

Current Operating Funds -- Unrestricted (appropriated) funds, designated funds, restricted funds, and auxiliary enterprise funds.

(5)

Functional categories -- Instruction, research, public service, academic support, student service, institutional support, operation and maintenance of plant, and hospital as defined by NACUBO.

(6)

General Revenue (GR) -- State tax revenue

(7)

Governmental Accounting Standards Board (GASB) -- An entity created by the Financial Accounting Foundation to set accounting standards for governmental entities including public institutions of higher education.

(8)

Higher Education Assistance Fund (HEAF) -- A fund established in Article 7 of the Constitution to fund capital improvements and capital equipment for institutions not included in the Permanent University Fund.

(9)

Institutional Funds -- Fees, gifts, grants, contracts, and patient revenue, not appropriated by the legislature.

(10)

Local Funds -- Tuition, certain fees, and other educational general revenue appropriated by the legislature.

(11)

National Association of College and University Business Officers (NACUBO) -- Provides guidance in business operations of higher education institutions.

(12)

Permanent University Fund (PUF) -- A fund established in Article 7 of the Constitution to fund capital improvements and capital equipment at certain institutions of higher education.

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 1, 2001.

TRD-200102473

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter B. FORMULA FUNDING

19 TAC §§13.20 - 13.24

The Texas Higher Education Coordinating Board adopts new §13.20 - 13.24 concerning financial planning for public institutions of higher education (Formula Funding) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1628). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules. Specifically, the new rules will provide guidelines for updating formula funding recommendations.

There were no comments received concerning the new rules.

The new rules are adopted under Texas Education Code, §61.059b, which provides the Texas Higher Education Coordinating Board the authority to review and revise funding formulas; Texas Education Code, §61.065, which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and Texas Education Code, §51.005 and §51.0051, which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102474

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter B. PROCEDURES FOR CERTIFICATION OF ADEQUACY OF FUNDING

19 TAC §§13.21 - 13.23

The Texas Higher Education Coordinating Board adopts the repeal of §§13.21 - 13.23 concerning financial planning for public institutions of higher education (Procedures for Certification of Adequacy of Funding) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1630). The rules are being repealed and new rules are being written that would simplify and streamline financial planning procedures and that would incorporate existing standards into the rules.

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

The repeal of the rules is adopted under the Texas Education Code, §§ 61.059b, 61.065, 51.005 and 51.0051 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning financial planning for public institutions of higher education (Procedures for Certification of Adequacy of Funding).

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 1, 2001.

TRD-200102483

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter C. BUDGETS

19 TAC §§13.40 - 13.47

The Texas Higher Education Coordinating Board adopts new §§13.40 - 13.47 concerning financial planning for public institutions of higher education (Budgets) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1630). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

There were no comments received concerning the new rules.

The new rules are adopted under the Texas Education Code, §61.059b which provides the Coordinating Board authority to review and revise funding formulas; §61.065 which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and §51.005 and 51.0051 which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102475

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter C. APPROVAL OF TUITION REVENUE BONDS AND PLEDGE

19 TAC §§13.41 - 13.47

The Texas Higher Education Coordinating Board adopts the repeal of §§13.41 - 13.47 concerning financial planning for public institutions of higher education (Approval of Tuition Revenue Bonds and Pledge) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1631). The rules are being repealed and new rules are being written that would simplify and streamline financial planning procedures and that would incorporate existing standards into the rules.

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

The repeal of the rules is proposed under the Texas Education Code, §§ 61.059b, 61.065, 51.005 and 51.0051 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning financial planning for public institutions of higher education (Approval of Tuition Revenue Bonds and Pledge).

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 1, 2001.

TRD-200102484

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter D. FINANCIAL REPORTING

19 TAC §§13.60 - 13.62

The Texas Higher Education Coordinating Board adopts new §§13.60 - 13.62 concerning financial planning for public institutions of higher education (Financial Reporting) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1632). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

There were no comments received concerning the new rules.

The new rules are proposed under the Texas Education Code, §61.059b which provides the Coordinating Board authority to review and revise funding formulas; §61.065 which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and §51.005 and §51.0051 which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102476

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter D. PROCEDURES AND CRITERIA FOR FUNDING OF FAMILY PRACTICE RESIDENCY PROGRAMS

19 TAC §§13.61 - 13.67

The Texas Higher Education Coordinating Board adopts the repeal of §§13.61 - 13.67 concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding of Family Practice Residency Programs) without changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1632). The rules are being repealed and new rules are being re-written that would simplify and streamline financial planning procedures and incorporate existing standards into the rules.

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

The repeal of the rules is adopted under the Texas Education Code, §§ 61.059b, 61.065, 51.005 and 51.0051 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding of Family Practice Residency Programs).

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 1, 2001.

TRD-200102485

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter E. TUITION REBATES FOR CERTAIN UNDERGRADUATES

19 TAC §§13.80 - 13.87

The Texas Higher Education Coordinating Board adopts new §§13.80 - 13.87 concerning financial planning for public institutions of higher education (Tuition Rebates for Certain Undergraduates) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1633). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules. Specifically, the new rules include minor modifications to existing rules regarding tuition rebates to make them consistent with current policies.

There were no comments received concerning the new rules.

The new rules are adopted under the Texas Education Code, §61.059b which provides the Coordinating Board authority to review and revise funding formulas; §61.065 which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and §51.005 and 51.0051 which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102477

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter E. PROCEDURES AND CRITERIA FOR FUNDING GRADUATE MEDICAL EDUCATION PROGRAMS

19 TAC §§13.81 - 13.85

The Texas Higher Education Coordinating Board adopts the repeal of §§13.81 - 13.85 concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding Graduate Medical Education Programs) without changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1634). The rules are being repealed and new rules are being written that would simplify and streamline financial planning procedures and that would incorporate existing standards into the rules.

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

The repeal of the rules is adopted under the Texas Education Code, §§ 61.059b, 61.065, 51.005 and 51.0051 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding Graduate Medical Education Programs).

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 1, 2001.

TRD-200102486

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter F. TUITION REBATES FOR CERTAIN UNDERGRADUATES

19 TAC §§13.91 - 13.98

The Texas Higher Education Coordinating Board adopts the repeal of §§13.91 - 13.98 concerning financial planning for public institutions of higher education (Tuition Rebates for Certain Undergraduates) without changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1635). The rules are being repealed and new rules are being written that would simplify and streamline financial planning procedures and that would incorporate existing standards into the rules.

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

The repeal of the rules is adopted under the Texas Education Code, §§ 61.059b, 61.065, 51.005 and 51.0051 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning financial planning for public institutions of higher education (Tuition Rebates for Certain Undergraduates).

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 1, 2001.

TRD-200102487

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter F. FORMULA FUNDING AND TUITION CHARGED FOR EXCESS CREDIT HOURS OF UNDERGRADUATE STUDENTS

19 TAC §§13.100 - 13.106

The Texas Higher Education Coordinating Board adopts new §§13.100 - 13.106 concerning financial planning for public institutions of higher education (Formula Funding and Tuition Charged for Excess Credit Hours of Undergraduate Students) without changes to the proposed text as published in the February 23, 2001 issue of the Texas Register (26 TexReg 1635). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

There were no comments received concerning the new rules.

The new rules are adopted under the Texas Education Code, §61.059b which provides the Coordinating Board authority to review and revise funding formulas; §61.065 which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and §51.005 and 51.0051 which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102478

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter G. FORMULA FUNDING AND TUITION CHARGED FOR EXCESS CREDIT HOURS OF UNDERGRADUATE STUDENTS

19 TAC §§13.110 - 13.116

The Texas Higher Education Coordinating Board adopts the repeal of §§13.110 - 13.116 concerning financial planning for public institutions of higher education (Formula Funding and Tuition Charged for Excess Credit Hours of Undergraduate Students) without changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1637). The rules are being repealed and new rules are being written that would simplify and streamline financial planning procedures and that would incorporate existing standards into the rules.

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

The repeal of the rules is adopted under the Texas Education Code, §§ 61.059b, 61.065, 51.005 and 51.0051 which provides the Texas Higher Education Coordinating Board with the authority to adopt rules concerning financial planning for public institutions of higher education (Formula Funding and Tuition Charged for Excess Credit Hours of Undergraduate 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 May 1, 2001.

TRD-200102488

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter G. PROCEDURES FOR CERTIFICATION OF ADEQUACY OF FUNDING

19 TAC §§13.120 - 13.125

The Texas Higher Education Coordinating Board adopts new §§13.120 - 13.125, concerning financial planning for public institutions of higher education (Procedures for Certification of Adequacy of Funding) without changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1637). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules. Specifically, the new rules includes minor modifications to existing rules regarding certification of adequacy of financing to make them consistent with current policies.

There were no comments concerning the new rules.

The new rules are adopted under the Texas Education Code, §61.059b which provides the Coordinating Board authority to review and revise funding formulas; §61.065 which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and §51.005 and 51.0051 which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102479

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter H. PROCEDURES AND CRITERIA FOR FUNDING OF FAMILY PRACTICE RESIDENCY PROGRAMS

19 TAC §§13.140 - 13.146

The Texas Higher Education Coordinating Board adopts new §§13.140 - 13.146, concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding of Family Practice Residency Programs) without changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1638). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

There were no comments received concerning the new rules.

The new rules are adopted under the Texas Education Code, §61.059b which provides the Coordinating Board authority to review and revise funding formulas; §61.065 which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and §51.005 and 51.0051 which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102480

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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


Subchapter I. PROCEDURES AND CRITERIA FOR FUNDING GRADUATE MEDICAL EDUCATION PROGRAMS

19 TAC §§13.160 - 13.164

The Texas Higher Education Coordinating Board adopts new §§13.160 - 13.164, concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding Graduate Medical Education Programs) without changes to the proposed text as published in the February 23, 2001, issue of the Texas Register (26 TexReg 1640). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

There were no comments received concerning the new rules.

The new rules are adopted under the Texas Education Code, §61.059b which provides the Coordinating Board authority to review and revise funding formulas; §61.065 which authorizes the Board to prescribe and update a uniform system of reporting by institutions and to evaluate the informational requirements of the State; and §51.005 and 51.0051 which provides the Coordinating Board with the authority to approve the form of reports.

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 1, 2001.

TRD-200102481

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Effective date: May 21, 2001

Proposal publication date: February 23, 2001

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