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 proposes new §§1.60 -- 1.67 concerning Agency Administration (Standards of Conduct). Specifically, these new sections 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.

Jan Greenberg, General Counsel, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the new rules as proposed.

Ms. Greenberg has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering the new rules will be the new opportunities and methods available to the Board in carrying out its duties. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed 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.

The new rules affect Texas Government Code, §2255.001.

§1.60.Scope and Purpose.

(a)

This subchapter establishes the criteria, procedures, and standards of conduct governing the relationship between the Texas Higher Education Coordinating Board (Board) and its officers and employees with private donors and private organizations that exist to further the duties and purposes of the Board.

(b)

The purpose of this subchapter is to comply with the provisions of Texas Government Code, §2255.001.

§1.61.Definitions.

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

(1)

Commissioner -- The Commissioner of the Texas Higher Education Coordinating Board.

(2)

Board -- The Texas Higher Education Coordinating Board

(3)

Donation -- A contribution of anything of value (financial or in-kind gifts such as goods or services) given to the Board for public higher education purposes or to a private organization that exists to further the duties or functions of the Board. The Board may not accept donations of real property (real estate) without the express permission and authorization of the legislature.

(4)

Employee -- A regular, acting, exempt, full-time or part-time employee of the Board.

(5)

Private donor -- One or more persons or private organizations which give a donation to the Board for higher education purposes or to a private organization which exists to further the duties and purposes of the Board.

(6)

Private organization -- A private organization that exists to further the purposes and duties of the Board.

§1.62.Donations by Private Donors to the Board.

(a)

A private donor may make donations to the Board to be spent for specified or unspecified public higher education purposes. If the donor specifies the purpose, the Board must expend the donation only for that purpose.

(b)

All donations shall be expended in accordance with the provisions of the State Appropriations Act and shall be deposited in the state treasury unless exempted by specific statutory authority.

(c)

All donations shall be coordinated through the Commissioner.

(d)

The Board may not transfer a private donation to a foundation or private/public development fund without specific written permission from the donor and the written approval of the Commissioner.

§1.63.Donations by a Private Donor to a Private Organization That Exists To Further the Purposes and Duties of the Board.

(a)

A private donor may make donations to a private organization that exists to further the purposes and duties of the Board.

(b)

The private organization shall administer and use the donation in accordance with the provisions in the memorandum of understanding between the private organization and the Board, as described in §1.65(c) of this title (relating to Relationship between a Private Organization and the Board).

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

(a)

The Commissioner and the membership of a private organization covered by these sections may cooperatively appoint a board of directors for the organization. The Commissioner 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.

§1.65.Relationship between a Private Organization and the Board.

(a)

The Board may provide to a private organization covered by these sections:

(1)

fundraising and solicitation assistance;

(2)

staff services to coordinate activities;

(3)

administrative and clerical services;

(4)

office and meeting space;

(5)

training; and

(6)

other miscellaneous services as needed to further the duties and purposes of the Board.

(b)

The private organization may provide:

(1)

postage;

(2)

printing, including letterhead and newsletters;

(3)

special event insurance;

(4)

recognition of donors; and

(5)

bond and liability insurance for organization officers.

(c)

The private organization and the Board shall enter into a memorandum of understanding (MOU) which contains specific provisions regarding:

(1)

the relationship between the private organization and the Board, and a mechanism for solving any conflicts or disputes;

(2)

fundraising and solicitation;

(3)

the use of all funds and other donations from fundraising or solicitation, less legitimate expenses as described in the MOU, for the benefit of the Board;

(4)

the maintenance by the private organization of receipts and documentation of all funds and other donations received, including furnishing such records to the Board; and

(5)

the furnishing to the Board of any audit of the private organization by the Internal Revenue Service or a private firm.

§1.66.Standards of Conduct Between Board Employees and Private Donors.

(a)

A Board officer or employee shall not accept or solicit any gift, favor, or service from a private donor that might reasonably tend to influence his/her official conduct.

(b)

An officer or employee shall not accept employment or engage in any business or professional activity with a private donor which the officer or employee might reasonably expect would require or induce him/her to disclose confidential information acquired by reason of his/her official position.

(c)

An officer or employee shall not accept other employment or compensation from a private donor that would reasonably be expected to impair the officer or employee's independence of judgment in the performance of his/her official position.

(d)

An officer or employee shall not make personal investments in association with a private donor that could reasonably be expected to create a substantial conflict between the officer or employee's private interest and the interest of the Board.

(e)

An officer or employee shall not solicit, accept, or agree to accept any benefits for having exercised his/her official powers on behalf of a private donor or performed his official duties in favor of private donor.

(f)

An officer or employee who has policy direction over the Board and who serves as an officer or director of a private donor shall not vote on any measure, proposal, or decision pending before the private donor if the Board might reasonably be expected to have an interest in such measure, proposal, or decision.

(g)

An officer or employee shall not authorize a private donor to use property of the Board unless the property is used in accordance with a contract or memorandum of understanding between the Board and the private donor, or the Board is otherwise compensated for the use of the property.

§1.67.Miscellaneous.

The relationship between a private donor and a private organization and the Board, including fundraising and solicitation activities, is subject to all applicable federal and state laws, rules and regulations, and local ordinances governing each entity and its employees.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100831

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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


Chapter 13. FINANCIAL PLANNING

Subchapter A. GENERAL PROVISIONS

19 TAC §§13.1 - 13.3

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§13.1 - 13.3 concerning financial planning for public institutions of higher education (General Provisions). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal of the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of rules will be the continued financial accountability of public higher education institutions. There will be no effect on state and local government or small businesses. There is no anticipated economic cost to the persons who are required to comply with the proposed repeal.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas, 78711.

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 (General Provisions).

The repeal of the rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.1.Formulas.

§13.2.Financial Reporting System for Public Junior Colleges.

§13.3.Financial Reporting System for Public Senior Colleges.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100815

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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


Subchapter A. DEFINITIONS

19 TAC §13.1

Texas Higher Education Coordinating Board proposes new §13.1, concerning financial planning for public institutions of higher education (Definitions). The new rule will simplify and streamline financial planning procedures and will incorporate existing standards into the rule. Specifically the new rule will provide definitions used in Chapter 13.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rule is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rule as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rule is in effect, the public benefit anticipated as a result of administering these new rule will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rule as proposed. There is no impact on local employment.

Comments on the proposed new rule may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

The new rule is 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.

The new rule affects the Texas Education Code, §§51.005, 51.0051, and 61.065.

§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.

(9)

Institutional Funds--Fees, gifts, grants, contracts, and patient revenue, improvements and capital equipment for institutions not included in the Permanent University Fund are 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 proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100822

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§13.20 - 13.24 concerning financial planning for public institutions of higher education (Formula Funding). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.20.Purpose.

The purpose of this subchapter is to establish procedures for making formula funding recommendations to the Governor and the Legislature and to inform the public and institutions of those procedures.

§13.21.Authority.

Texas Education Code, §61.059(b) directs the Texas Higher Education Coordinating Board to review and revise formulas for use of the Governor and the Legislative Budget Board in making appropriations recommendations.

§13.22.Community and Technical College Formulas.

(a)

Formula Advisory Committee.

(1)

Not later than September 1 of each odd-numbered year, the Commissioner shall appoint an advisory committee to review the funding formulas used by the Governor and the Legislature for making appropriations to community and technical colleges.

(2)

The formula advisory committee appointed by the Commissioner shall consist of senior administrators at Texas public community or technical colleges, members of the faculty, and members of the general public.

(3)

The committee shall elect its own chair and vice chair.

(4)

Meetings of the committee shall be open to the public. The committee shall publish minutes of all meetings, and the minutes shall be public documents.

(5)

The committee shall provide an opportunity for institutions, the general public and other interested persons to provide testimony.

(6)

The committee shall make its recommendations to the Commissioner no later than the February 1 of the year following its appointment.

(b)

All-Funds Expenditure Study.

(1)

The Board shall conduct a study of expenditures at community colleges, Texas State Technical College, and Texas State University System two-year institutions each year.

(2)

The study shall encompass all expenditures made by these institutions for instruction and administration from all sources of funds including appropriated general revenue, tuition and fees, contract instruction, other educational and general revenue, and local tax revenue, but not including restricted gifts and grants.

(3)

Each college shall report total instructional expenditures and contact hours for each instructional discipline included on a list provided by the Coordinating Board and total expenditures for administration, including institutional support, student services, library, instructional administration, organized activities, and staff benefits not paid by the state excluding physical plant employees.

(4)

From this information, the Board shall calculate median costs for each instructional discipline.

(c)

Community and Technical College Formula Recommendation.

(1)

At the quarterly meeting of the Coordinating Board in April of even-number years, the Commissioner shall recommend a funding formula for the next biennium for community and technical colleges. The Commissioner shall also report the recommendations of the formula advisory committee.

(2)

In making recommendations, the Commissioner shall consider the results of the all funds expenditure study, the financial needs of affected institutions, funding provided for equivalent courses in general academic institutions and for peer institutions in other states, and other factors as appropriate.

(3)

The Commissioner shall recommend a general revenue appropriation for instruction and administration for community colleges and the Texas State Technical College System and two-year colleges in the Texas State University System. The Legislative Budget Board staff converts the general revenue formula for Texas State Technical College System and two-year colleges in the Texas State University System into an all funds appropriation based on their estimated educational and general income.

(4)

After adoption, the Commissioner shall transmit the Board's recommendations to the Governor and the Legislative Budget Board no later than May 30 of each even-numbered year.

§13.23.General Academic Institution Formulas.

(a)

Formula Advisory Committee.

(1)

Not later than September 1 of each odd-numbered year, the Commissioner shall appoint an advisory committee to review the funding formulas used by the Governor and the Legislature for making appropriations to general academic institutions.

(2)

The formula advisory committee appointed by the Commissioner shall consist of senior administrators at Texas general academic institutions, members of the faculty, and members of the general public.

(3)

The committee shall elect its own chair and vice chair.

(4)

Meetings of the committee shall be open to the public. The committee shall publish minutes of all meetings, and the minutes shall be public documents.

(5)

The committee shall provide an opportunity for institutions, the general public and other interested persons to provide testimony.

(6)

The formula advisory committee may appoint two study committees, one for the instructional and operations formula and another for the infrastructure formula. The study committees may include members from the formula advisory committees and other institutional representatives as appropriate. The infrastructure study committee will include at least one representative from the Texas State Technical College System or the two-year colleges in the Texas State University System.

(7)

The formula study committees shall make their recommendations to the formula advisory committee no later than the January 15 of the year following its appointment.

(8)

The formula advisory committee shall make its recommendations to the Commissioner no later than the February 1 of the year following its appointment.

(b)

General Academic Institution Formula Recommendation.

(1)

At the quarterly meeting of the Coordinating Board in April of even-number years, the Commissioner shall recommend a funding formula for the next biennium for general academic institutions. The Commissioner shall also report the recommendations of the formula advisory committee.

(2)

In making recommendations, the Commissioner shall consider the financial needs of affected institutions, funding levels at peer institutions in other states, and other factors as appropriate.

(3)

The Commissioner shall recommend an all funds appropriation.

(4)

After adoption, the Commissioner shall transmit the Board's recommendations to the Governor and the Legislative Budget Board no later than May 30 of each even-numbered year.

§13.24.Health-Related Institution Formulas.

(a)

Formula Advisory Committee.

(1)

Not later than September 1 of each odd-numbered year, the Commissioner shall appoint an advisory committee to review the funding formulas used by the Governor and the Legislature for making appropriations to health-related institutions.

(2)

The formula advisory committee appointed by the Commissioner shall consist of one representative of each public health-related institution.

(3)

The committee shall elect its own chair and vice chair.

(4)

Meetings of the committee shall be open to the public. The committee shall publish minutes of all meetings, and the minutes shall be public documents.

(5)

The committee shall provide an opportunity for institutions, the general public and other interested persons to provide testimony.

(6)

The formula advisory committee may appoint two study committees, one for the instructional and operations formula and another for the infrastructure formula. The study committees may include members from the formula advisory committees and other institutional representatives as appropriate.

(7)

The formula study committees shall make their recommendations to the formula advisory committee no later than the January 15 of the year following its appointment.

(8)

The formula advisory committee shall make its recommendations to the Commissioner no later than the February 1 of the year following its appointment.

(b)

Health-Related Institution Formula Recommendation.

(1)

At the quarterly meeting of the Coordinating Board in April of even-number years, the Commissioner shall recommend a funding formula for the next biennium for health-related institutions. The Commissioner shall also report the recommendations of the formula advisory committee.

(2)

In making recommendations, the Commissioner shall consider the financial needs of affected institutions, funding provided for equivalent courses in general academic institutions, funding levels at peer institutions in other states, and other factors as appropriate.

(3)

The Commissioner shall recommend an all funds appropriation.

(4)

After adoption, the Commissioner shall transmit the Board's recommendations to the Governor and the Legislative Budget Board no later than May 30 of each even-numbered years.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100823

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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


Subchapter B. PROCEDURES FOR CERTIFICATION OF ADEQUACY OF FUNDING

19 TAC §§13.21 - 13.23

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§13.21 - 13.23 concerning financial planning for public institutions of higher education (Procedures for Certification of Adequacy of Funding). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal of the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of rules will be the continued financial accountability of public higher education institutions. There will be no effect on state and local government or small businesses. There is no anticipated economic cost to the persons who are required to comply with the proposed repeal.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas, 78711.

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 (Procedures for Certification of Adequacy of Funding).

The repeal of the rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.21.Statement on Funding.

§13.22.Statement on Effect to Existing Programs.

§13.23.Format for Certification Statement.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100816

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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


Subchapter C. BUDGETS

19 TAC §§13.40 - 13.47

The Texas Higher Education Coordinating Board proposes new §§13.40 - 13.47 concerning financial planning for public institutions of higher education (Budgets). 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 uniform budget preparation.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.40.Purpose.

Provide guidelines for uniform budget preparation, timeline for submission, and distribution of approved budgets.

§13.41.Authority.

The Texas Education Code, §61.065 authorizes the board to evaluate the informational requirements of the state for purposes of simplifying reports.

§13.42.Budget Approval.

(a)

The governing board of each institution shall approve an itemized current operating budget on or before September 1 of each year.

(b)

The governing boards of The University of Texas System and the Texas A&M University System shall approve Permanent University Fund (PUF) and Available University (AUF) budgets on or before September 1 of each year.

(c)

The governing board of each institution eligible to receive HEAF appropriations shall approve a HEAF budget on or before September 1 of each year.

§13.43.Distribution of Budgets.

Copies of the current operating funds, PUF/AUF, and HEAF budget shall be furnished to the Board for distribution to the Governor's Budget and Planning Office, Legislative Budget Board, and Legislative Reference Library. Copies shall be maintained in the institution's library.

§13.44.Salaries and Emoluments.

The community colleges' budgets shall include salaries and emoluments for faculty and staff listed by position.

§13.45.Format of Current Operating Funds Budgets.

The operating budgets shall:

(1)

include general revenue, local funds, and estimated institutional funds;

(2)

include detail by department for current and prior year;

(3)

include a summary by functional categories for current and prior year;

(4)

include a summary of the instructional budget by college or school for the current and preceding year; and

(5)

include a summary by amount and method of finance for each listed informational item in the general appropriation act.

§13.46.Format for PUF/AUF Budget.

The PUF/AUF budget shall:

(1)

include all projects approved for funding with PUF bonds by component institution and

(2)

include all debt service payments on PUF-backed bonds by component institution.

§13.47.Format for HEAF Budget.

The HEAF budget shall:

(1)

include all projects approved for funding with HEAF bonds by component institution,

(2)

include all debt service payments on HEAF-backed bonds by component institution, and

(3)

include all capital equipment and library books to be purchased during the fiscal year with HEAF funds.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100824

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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


Subchapter C. APPROVAL OF TUITION REVENUE BONDS AND PLEDGE

19 TAC §§13.41 - 13.47

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§13.41 - 13.47 concerning financial planning for public institutions of higher education (Approval of Tuition Revenue Bonds and Pledge). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal of the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of rules will be the continued financial accountability of public higher education institutions. There will be no effect on state and local government or small businesses. There is no anticipated economic cost to the persons who are required to comply with the proposed repeal.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas, 78711.

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).

The repeal of the rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.41.Purpose.

§13.42.Incorporation by Reference.

§13.43.Definitions.

§13.44.Application for Approval of Revenue Bonds.

§13.45.Required Filing of Official Notice of Sale and Prospectus.

§13.46.Required Transcript of Proceedings.

§13.47.Required Financial Reporting.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100817

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§13.60 - 13.62 concerning financial planning for public institutions of higher education (Financial Reporting). 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 financial reporting.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.60.Purpose.

The purpose of this subchapter is to ensure uniformity and a true and full accounting of all financial transactions for all institutions of higher education.

§13.61.Authority.

The Texas Education Code, §61.065 authorizes the Texas Higher Education Coordinating Board and the Comptroller of Public Accounts to prescribe uniform financial reporting guidelines.

§13.62.Community Colleges.

(a)

The Coordinating Board staff shall annually review and update the financial reporting manual with advice from community college business officers and the college's independent auditors.

(b)

The financial reporting manual shall be in compliance with the Governmental Accounting Standards Board's pronouncements.

(c)

The community colleges shall submit their audited annual financial reports to the Coordinating Board by January 1st of each year.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100825

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes 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). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal of the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of rules will be the continued financial accountability of public higher education institutions. There will be no effect on state and local government or small businesses. There is no anticipated economic cost to the persons who are required to comply with the proposed repeal.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas, 78711.

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 (Procedures and Criteria for Funding of Family Practice Residency Programs).

The repeal of the rules affect the Texas Education Code, Section 51.005, 51.0051, and 61.065.

§13.61.Types of Grants.

§13.62.Requirements for a Family Practice Residency Operational Grant.

§13.63.Requirements for a Support Grant.

§13.64.Requirements for a Rural Rotations Reimbursement Grant.

§13.65.Requirements for a Public Health Rotation Reimbursement Grant.

§13.66.Review of Family Practice Residency Operational Grant Applications and Support Grant Applications.

§13.67.Amount of Family Practice Operational Grants and Support Grants.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100818

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§13.80 - 13.87 concerning financial planning for public institutions of higher education (Tuition Rebates for Certain Undergraduates). 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 tuition rebates to make them consistent with current policies.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.80.Purpose.

The purpose of this program is to provide tuition rebates that will provide a financial incentive for students to prepare for university studies while completing their high school work, avail themselves of academic counseling, make early career decisions, and complete their baccalaureate studies with as few courses outside the degree plan as possible. Minimizing the number of courses taken by students results in financial savings to students, parents, and the state.

§13.81.Authority.

The program is authorized by Texas Education Code, §54.0065.

§13.82.Eligible Students.

To be eligible for rebates under this program, students must meet all of the following conditions:

(1)

they must have enrolled for the first time in an institution of higher education in the fall 1997 semester or later,

(2)

they must be requesting a rebate for work related to a first baccalaureate degree received from a Texas public university,

(3)

they must have been a resident of Texas, must have attempted all coursework at a Texas public institution of higher education, and have been entitled to pay resident tuition at all times while pursuing the degree, and

(4)

they must have attempted no more than three hours in excess of the minimum number of semester credit hours required to complete the degree under the catalog under which they were graduated. Hours attempted include transfer credits, course credit earned exclusively by examination, courses that are dropped after the official census date, for-credit developmental courses, optional internship and cooperative education courses, and repeated courses. Courses dropped for reasons that are determined by the institution to be totally beyond the control of the student shall not be counted. For students concurrently earning a baccalaureate degree and a Texas teaching certificate, required teacher education courses shall not be counted to the extent that they are over and above the free electives allowed in the baccalaureate degree program.

§13.83.Affected Institutions.

(a)

All Texas public baccalaureate-granting general academic universities are required to offer rebates to eligible students.

(b)

All Texas public institutions of higher education are required to notify students of the existence of the tuition rebate program and provide course enrollment opportunities (see §13.85 of this title, relating to Responsibilities of Institutions).

§13.84.Amount of Tuition Rebates.

(a)

The amount of tuition to be rebated to a student under this program is $1,000, unless the total amount of undergraduate tuition paid by the student to the institution awarding the degree was less than $1,000, in which event the amount of tuition to be rebated is an amount equal to the amount of undergraduate tuition paid by the student to the institution.

(b)

A student who paid the institution awarding the degree an amount of undergraduate tuition less than $1,000 may qualify for an increase in the amount of the rebate, not to exceed a total rebate of $1,000, for any amount of undergraduate tuition the student paid to other Texas public institutions of higher education by providing the institution awarding the degree with proof of the total amount of that tuition paid to other institutions.

(c)

Tuition rebates shall be reduced by the amount of any outstanding student loan, including an emergency loan, owed to or guaranteed by this state, including the Texas Guaranteed Student Loan Corporation. If a student has more than one outstanding student loan, the institution shall apply the amount of the rebate to the loans as directed by the student. If the student fails to provide timely instructions on the application of the amount, the institution shall apply the amount of the rebate to retire the loans with the highest interest rates first.

§13.85.Responsibilities of Institutions.

Affected institutions have the following responsibilities associated with this program:

(1)

All Texas public institutions of higher education, including community and technical colleges, shall include information regarding this program in the institution's catalog.

(2)

If requested by potentially eligible students, public institutions of higher education are required to provide these students opportunities to enroll during each fall and spring semester in the equivalent of at least 12 semester credit hours that apply toward their degrees. Institutions are not required to provide students with the opportunity to enroll in specific courses or specific sections. Community and Technical Colleges will comply to the extent that courses for the current semester are being offered that apply to the student's university degree program. The requirement may be met by allowing substitutions for required courses or by allowing concurrent enrollment in courses from another institution, so long as the courses are taught on the students' home campus and the student incurs no financial penalty.

(3)

Texas public universities are required to provide students with appropriate forms and instructions for requesting tuition reimbursement at the time that students apply for baccalaureate degrees.

(4)

Institutions are required to provide tuition rebates to students who apply for them within 60 days after graduation or provide the student with a statement explaining the reason the student is ineligible for the rebate.

(5)

Institutions are required to provide a dispute resolution process to resolve disputes related to local administration of the program.

(6)

Disputes related to lower division credit transfer should be resolved in accordance with Coordinating Board rules, Chapter 5, §5.393 of this title (relating to Transfer of Lower Division Course Credit).

(7)

Institutions may adopt policies and procedures for administering the program. For example, institutions may require students to declare their intent to qualify for a tuition rebate early in their careers or register prior to the beginning of the semester.

§13.86.Responsibilities of Students.

(a)

Students desiring to qualify for tuition rebates are responsible for complying with all university rules and regulations related to administration of the program.

(b)

Students desiring to qualify for tuition rebates are solely responsible for enrolling only in courses that will qualify them for the rebates.

(c)

A student who has transferred from another institution of higher education is responsible for providing to the institution awarding the degree official transcripts from all institutions attended by the student.

(d)

Students must apply for rebates prior to receiving their baccalaureate degrees on forms provided by the institution and must keep the institution apprized of their addresses for at least 60 days after their graduation date.

§13.87.Source of Funding.

Tuition rebates shall be paid from institutional local funds. However, the enabling legislation provides that the Legislature shall account in the General Appropriations Act for the rebates in a way that provides a corresponding increase in the general revenue funds appropriated to the institution.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100826

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes 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). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal of the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of rules will be the continued financial accountability of public higher education institutions. There will be no effect on state and local government or small businesses. There is no anticipated economic cost to the persons who are required to comply with the proposed repeal.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas, 78711.

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 (Procedures and Criteria for Funding Graduate Medical Education Programs).

The repeal of the rules affect the Texas Education Code, Section 51.005, 51.0051, and 61.065.

§13.81.Purpose.

§13.82.Grants or Formula Distributions.

§13.83.Eligibility.

§13.84.Award of Funds.

§13.85.Advisory Committee.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100819

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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


Subchapter F. TUITION REBATES FOR CERTAIN UNDERGRADUATES

19 TAC §§13.91 - 13.98

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§13.91 - 13.98 concerning financial planning for public institutions of higher education (Tuition Rebates for Certain Undergraduates). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal of the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of rules will be the continued financial accountability of public higher education institutions. There will be no effect on state and local government or small businesses. There is no anticipated economic cost to the persons who are required to comply with the proposed repeal.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas, 78711.

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 (Tuition Rebates for Certain Undergraduates).

The repeal of the rules affect the Texas Education Code, Section 51.005, 51.0051, and 61.065.

§13.91.Purpose.

§13.92.Authority.

§13.93.Eligible Students.

§13.94.Affected Institutions.

§13.95.Amount of Tuition Rebates.

§13.96.Responsibilities of Institutions.

§13.97.Responsibilities of Students.

§13.98.Source of Funding.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100820

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes 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). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.100.Purpose.

This subchapter provides financial incentives for institutions to facilitate the progress of undergraduate students through their academic programs and incentives for students to complete their degree programs expeditiously. Rules contained in this subchapter clarify the enabling legislation, define responsibilities of institutions and the Coordinating Board in implementing the statute, and ensure that students are adequately informed.

§13.101.Authority.

These rules relate to the Texas Education Code, §§54.068 and 61.0595. §54.068 specifies the tuition that may be charged to students with excess hours. §61.0595 specifies the fundability of undergraduate credit hours.

§13.102.Definitions.

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

(1)

Remedial and developmental courses -- courses designed to correct academic deficiencies and bring students' skills to an appropriate level for entry into college.

(2)

Technical courses -- workforce education courses offered for semester or quarter credit hours and associated with applied associate degree or workforce certificate programs.

(3)

Workforce education courses -- courses offered by two-year institutions for the primary purpose of preparing students to enter the workforce rather than academic transfer. Includes both technical courses and continuing education courses.

(4)

Hours -- quarter credit hours or semester credit hours.

§13.103.Affected Students.

(a)

The limitation on funding of excess undergraduate credit hours applies only to hours generated by students who initially enroll as undergraduates in an institution of higher education in the 1999 fall semester or in a subsequent term. If a student has been enrolled as an undergraduate student in any public or private institution of higher education during any term prior to the 1999 fall semester, the student's credit hours are exempt.

(b)

Hours generated by non-resident students paying tuition at the rate provided for Texas residents are subject to the same limitations as hours generated by resident students.

§13.104.Limitation on Formula Funding.

Funding of excess undergraduate credit hours is limited as follows:

(1)

Universities and health-related institutions may not submit for formula funding hours attempted by an undergraduate student who has previously attempted 45 or more semester credit hours or its quarter hour equivalent beyond the minimum number of hours required for completion of the degree program in which the student is enrolled.

(2)

An undergraduate student at a four-year institution who is not enrolled in a degree program is considered to be enrolled in a degree program requiring a minimum of 120 semester credit hours.

(3)

Students who enroll on a temporary basis in a university or health-related institution and are also enrolled in a private or independent institution of higher education or an out-of-state institution of higher education are considered to be enrolled in a degree program requiring a minimum of 120 semester credit hours.

(4)

For the purposes of the undergraduate limit, an undergraduate student who has entered into a master's or professional degree program without first completing an undergraduate degree is considered to no longer be an undergraduate student after having completed the equivalent of a bachelor's degree or all of the course work normally taken during the first four years of undergraduate course work in the student's degree program.

(5)

For the purposes of the undergraduate limit, students are treated for funding purposes as having whatever major they had on the official census day of the term in question. If a student changes majors during a term, that act does not retroactively change their eligibility under the limit.

(6)

The following types of credit hours are exempt and do not count toward the limit:

(A)

hours earned by the student before receiving a baccalaureate degree that has been previously awarded to the student;

(B)

hours earned through examination or similar method without registering for a course;

(C)

hours from remedial and developmental courses, technical courses, workforce education courses, or other courses that would not generate academic credit that could be applied to a degree at the institution;

(D)

hours earned by the student at a private institution or an out-of-state institution; and

(E)

any hours not eligible for formula funding.

§13.105.Tuition Charged to Affected Students.

An institution of higher education may charge a higher tuition rate, not to exceed the rate charged to nonresident undergraduate students, to an undergraduate student whose hours can no longer be submitted for formula funding because of the funding limit defined in §13.104 of this title (relating to Limitation on Formula Funding).

§13.106.Responsibilities of Institutions.

(a)

The Coordinating Board will maintain a database indicating the number of hours an eligible undergraduate student has accumulated toward the limit. Institutions are required to report to the Coordinating Board all information required to comply with the Texas Education Code, §§54.060 and 61.0595, to check every term on the progress of eligible students toward the limit, and to cooperate with the Coordinating Board in the administration of the limit.

(b)

Each community and technical college, Lamar state college, university, and health-related institution shall publish in its catalog information about the limit on undergraduate credit hours. Until this material is included in catalogs, each institution shall inform undergraduate students initially enrolling at the institution in writing of the limit.

(c)

Community and technical colleges and the Lamar state colleges shall inform each affected undergraduate student of the individual's progress toward the limit when the student has accumulated 70 or more semester credit hours toward the limit.

(d)

Universities and health-related institutions shall inform each affected undergraduate student of the individual's progress toward the limit and of the institution's tuition policy for students who exceed the limit as soon as the student has accumulated 120 or more semester credit hours toward the limit.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100827

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes 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). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the repeal of the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of rules will be the continued financial accountability of public higher education institutions. There will be no effect on state and local government or small businesses. There is no anticipated economic cost to the persons who are required to comply with the proposed repeal.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas, 78711.

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 (Formula Funding and Tuition Charged for Excess Credit Hours of Undergraduate Students).

The repeal of the rules affect the Texas Education Code, Section 51.005, 51.0051, and 61.065.

§13.110.Purpose.

§13.111.Authority.

§13.112.Definitions.

§13.113.Affected Students.

§13.114.Limitation on Formula Funding.

§13.115.Tuition Charged to Affected Students.

§13.116.Responsibilities of Institutions.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100821

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§13.120 - 13.125 concerning financial planning for public institutions of higher education (Procedures for Certification of Adequacy of Funding). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.120.Purpose.

This subchapter describes the procedure by which institutions are to certify to the Coordinating Board that they have adequate funding for proposed new degree and certificate programs, departments, and schools.

§13.121.Authority.

These rules relate to the Texas Education Code, §61.055, which requires that a written certification of adequate financing be made before the Board approves any new department, school, or degree or certificate program.

§13.122.Statement on Funding.

Each request submitted to the Coordinating Board for a new department, school, degree or certificate program or administrative change shall be accompanied by a statement regarding the adequacy of funding from the chief executive officer of the requesting institution.

§13.123.Identification of Sources of Funds.

Sources of funds shall be identified on forms provided by the Division of Universities and Health-Related Institutions as:

(1)

Specific legislative appropriations, where such appropriations can be clearly identified as being appropriated to start a new program for which funds from other sources are not available;

(2)

Funds allocated by the Coordinating Board;

(3)

Funds appropriated by the Legislature for an existing academic program but which are now declared by the institution to be available for the new degree program. The program area or areas from which such funds will be derived must be identified;

(4)

Monies transferred from the Available University Fund. This would apply only for The University of Texas at Austin, Prairie View A&M University, and Texas A&M University;

(5)

Anticipated formula funding generated by enrollments in the program; and/or

(6)

Funds from other sources (e.g., gifts, grants, etc.). The specific source of such funds shall be identified, the reasons for their availability shall be stated, and the length of time such funds will be available shall be indicated.

§13.124.Statement of Effect on Existing Programs.

The request for a new department, school, degree or certificate program, or administrative change shall also include a statement by the chief executive officer of the requesting institution certifying that the requested program or change will not reduce the effectiveness or quality of existing programs, departments or schools.

§13.125.Format and Transmission of Certification Statements.

(a)

The letter of certification shall be addressed to the Assistant Commissioner for Universities and Health-Related Institutions, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711.

(b)

The letter of certification shall contain the following statements:

(1)

I hereby certify that adequate funding is available for the (new department) (school) (degree program) (certificate program) (administrative change) proposed in the attached request.

(2)

I further certify that the establishment of the requested (new department) (school) (degree program) (certificate program) (administrative change) will not reduce the effectiveness or quality of existing programs, departments, or schools at this institution.

(c)

The letter of certification shall be signed by the chief executive officer of the institution.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100828

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§13.140 - 13.146 concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding of Family Practice Residency Programs). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.140.Types of Grants.

Medical schools, licensed hospitals, or nonprofit corporations may apply for a Family Practice Residency Operational Grant, a Support Grant, a Rural Rotations Reimbursement, and a Public Health Rotation Reimbursement Grant.

(1)

A Family Practice Residency Operational Grant is defined as a grant to support an ongoing family practice residency program and expansions of ongoing family practice residency programs.

(2)

A Support Grant is defined as a grant to support an ongoing program that encourages recruitment of medical students to the specialty of family medicine or the development of faculty for Texas family practice residency programs.

(3)

A Rural Rotations Reimbursement Grant is defined as a grant to reimburse Texas family practice residency programs for the costs of providing residents with optional one-month rotations in a rural setting in Texas.

(4)

A Public Health Rotation Reimbursement Grant is defined as a grant to reimburse Texas family practice residency programs for the costs of providing residents with an optional one-month rotation in a public health setting in Texas.

§13.141.Requirements for a Family Practice Residency Operational Grant.

To be considered for a Family Practice Residency Operational Grant, a medical school, licensed hospital, or nonprofit corporation requesting an Operational Grant must at a minimum:

(1)

Show that the program is accredited by the Accreditation Council on Graduate Medical Education (ACGME) or the American Osteopathic Association (AOA) as a family practice residency program;

(2)

Meet the Coordinating Board criteria and financial reporting guidelines for a Family Practice Residency Operational Grant;

(3)

Give evidence that the program has been operational for three or more academic years;

(4)

Give evidence of continuing local support for the program;

(5)

Document expenditures and revenue for the program to substantiate funding needs;

(6)

Submit annual progress reports on the training program to the Coordinating Board that demonstrate the program's efforts to recruit residents likely to practice in underserved areas of the state and the program's encouragement of residents to enter practice in underserved areas of the state.

§13.142.Requirements for a Support Grant.

To be considered for a Support Grant, a medical school, licensed hospital, or nonprofit corporation must:

(1)

Conform to Coordinating Board guidelines for Family Practice Residency Support Grant Programs;

(2)

Give evidence that the program to be funded has been operational for two or more academic years;

(3)

Give evidence of continued need for funding;

(4)

Document expenditures and revenue to substantiate funding needs; and

(5)

Submit annual progress reports to the Coordinating Board.

§13.143.Requirements for a Rural Rotations Reimbursement Grant.

To be reimbursed for a resident's one-month rotation through a rural setting in Texas, a Texas family practice residency program must:

(1)

Submit documentation giving evidence that the program sponsored a resident in a rural rotation that at the time of the rotation conformed to Coordinating Board guidelines concerning family practice residency rural rotations;

(2)

Document expenditures for rural rotations to substantiate the request for reimbursement in accordance with Coordinating board guidelines; and

(3)

Submit progress reports and financial reports on Rural Rotations Grants to the Coordinating Board on an annual basis, to be reviewed by the Family Practice Residency Advisory Committee.

§13.144.Requirements for a Public Health Rotation Reimbursement Grant.

To be reimbursed for a resident's one-month rotation through a public health setting in Texas, a Texas family practice residency program must:

(1)

Submit documentation giving evidence that the program sponsored a resident in a public health setting that, at the time of the rotation, conformed to Coordinating Board guidelines concerning family practice residency public health rotations; and

(2)

Document expenditures for public health rotations to substantiate the request for reimbursement in accordance with Coordinating Board guidelines; and

(3)

Submit progress reports and financial reports on Public Health Rotation Grants to the Coordinating Board on an annual basis, to be reviewed by the Family Practice Residency Advisory Committee.

§13.145.Review of Family Practice Residency Operational Grant Applications and Support Grant Applications.

Programs applying for Family Practice Operational Grants and Support Grants shall be reviewed by the Family Practice Residency Advisory Committee for their viability and their benefit to the state. Programs must be determined to serve the needs of the State of Texas in improving the distribution of health care delivery. The Committee's review shall include the following:

(1)

The ability of the program to meet the requirements set out in this Subchapter and all program guidelines;

(2)

Existing and anticipated costs and funding for currently funded programs and new programs requesting funding;

(3)

The program's performance in:

(A)

better distributing family physicians throughout the state; and

(B)

helping medically underserved areas of Texas; and

(C)

encouraging residents to practice in underserved areas of the state.

§13.146.Amount of Family Practice Operational Grants and Support Grants.

The amount of funds to be allocated for any Family Practice Residency Operational Grant or Support Grant shall be determined by the Coordinating Board, after receiving the recommendation of the Family Practice Residency Advisory Committee. Grants shall be used for operating expenditures as defined by generally acceptable accounting procedures and Coordinating Board guidelines for the program.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100829

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§13.160 - 13.164 concerning financial planning for public institutions of higher education (Procedures and Criteria for Funding Graduate Medical Education Programs). The new rules will simplify and streamline financial planning procedures and will incorporate existing standards into the rules.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering these new rules will be the continued financial accountability of public higher education institutions. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P.O. Box 12788, Capitol Station, Austin, Texas 78711.

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.

The new rules affect the Texas Education Code, §§51.005, 51.0051, and 61.065.

§13.160.Purpose.

The board shall administer a program to support graduate medical education programs, consistent with the needs of the state for graduate medical education and the training of resident physicians. Funds allocated under this provision are to be provided for the training of resident physicians in accredited residency training programs in appropriate fields and specialties, including primary care. The provisions in this subsection are implemented to provide state funds to graduate medical education programs which incur the cost of resident instruction.

§13.161.Grants or Formula Distributions.

The board may make grants or formula distributions to:

(1)

support appropriate graduate medical education programs and activities for which adequate funds are not otherwise available; or

(2)

foster new or expanded graduate medical education programs or activities that the board determines will address the state's needs for graduate medical education.

§13.162.Eligibility.

To receive a Graduate Medical Education grant or formula distribution, an institution or other entity must incur the costs of faculty supervision and education or the stipend costs of resident physicians in accredited clinical residency training programs in this state. The board will consider the costs incurred by medical schools or other entities to support faculty responsible for the education or supervision of resident physicians. Entities eligible to receive funds under this section include the state's eight medical schools, licensed teaching hospitals, or non-profit corporations operating a nationally accredited allopathic or osteopathic residency program. Entities seeking funding under this provision must at a minimum annually:

(1)

Provide evidence that the residency program is accredited by the Accreditation Council on Graduate Medical Education (ACGME) or the American Osteopathic Association (AOA);

(2)

Meet the criteria and financial reporting guidelines for a Graduate Medical Education grant or formula distribution as determined by the Advisory Committee; and

(3)

Provide evidence that the residency program intends to provide continuing operational financial support.

§13.163.Award of Funds.

From funds appropriated for the Graduate Medical Education program, the comptroller of public accounts shall be requested to issue warrants to each institution or other entity determined by the board as eligible to receive a grant or formula distribution from the program in the amount certified by the board. An amount granted to an institution or other entity under this program may be used only to cover expenses related to the education of residents of the particular program or activity for which the award is made in accordance with any conditions imposed by the board and may not otherwise be expended for the general support of the institution or entity.

§13.164.Advisory Committee.

The board shall appoint an advisory committee to advise the board regarding the development and administration of the program, including considering requests for program grants and establishing formulas for distribution of money under the program. Membership of the Advisory Committee is prescribed in the enabling legislation. The Advisory Committee shall:

(1)

Review applications for funding of graduate medical education programs and make recommendations for approval or disapproval of those applications;

(2)

Make recommendations relating to the standards and criteria used for consideration and approval of grants or for the development of formulas for distribution of funding;

(3)

Recommend to the board an allocation of funds among medical schools, licensed hospitals or non-profit corporations that may receive funds under this section; and

(4)

Perform other duties as assigned by the board.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100830

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§17.1 - 17.7 concerning Campus Planning (General Provisions). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The principal change in the proposed new rules is to restructure the existing rules to increase readability. A change is proposed to clarify rules regarding re-approval of projects eligible for Commissioner approval. New rules are proposed to establish standards for construction projects, processes for updating space projection models used by the Board, eminent domain, and reporting requirements. These new rules document existing practices.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the new rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering the new rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed 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.

The new rules affect the Texas Education Code, §61.0579 and §61.058

§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 §§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 arrangements regardless of proposed use; assuring maximum use of facilities; and developing standards and policies for management of physical plants designed to streamline operations and improve accountability.

§17.2. Definitions.

The following words and terms shall have the following meanings, unless the context clearly indicates otherwise.

(1)

Auxiliary enterprise buildings or facilities -- Income generating structures such as dormitories, cafeterias, student union buildings, stadiums, and alumni centers used solely for those purposes.

(2)

Board or Coordinating Board -- The Texas Higher Education Coordinating Board members and the agency.

(3)

Campus Planning Committee -- The members of the Board appointed to oversee facility-related issues.

(4)

Commissioner -- The chief executive officer of the Texas Higher Education Coordinating Board.

(5)

Critical deferred maintenance -- The physical conditions of a building or facility that places its occupants at risk of harm or the facility at risk of not fulfilling its functions.

(6)

Deferred maintenance -- An existing or imminent building maintenance-related deficiency from prior years or the current year that needs to be corrected, or scheduled preventive maintenance tasks that were not preformed because of perceived lower priority status than those funded within the budget.

(7)

Educational and general (E&G) buildings and facilities -- Buildings and facilities associated with teaching, research, or the preservation of knowledge, including the proportional share used for those activities in any building of facility used jointly with auxiliary enterprise, or space that is permanently unassigned.

(8)

Facilities inventory -- A collection of building and room records that reflects the type of space and how it is being used. The records contain codes that are uniformly defined by the Coordinating Board and the United States Department of Education and reported by the institutions on an on-going basis to reflect a current facilities inventory.

(9)

Gross square feet (GSF) -- The sum of all square feet of floor areas within the outside faces of a building's exterior walls.

(10)

Major repair and rehabilitation (R&R) -- Construction upgrades to an existing building, facility, or infrastructure that currently exist on campus. R&R does not add space to a building or facility's overall gross square footage.

(11)

Net assignable square feet (NASF) -- The amount of space that can be used for programs within interior walls of a room. Major room use categories are: classrooms, laboratories, offices, study areas, general use areas, support rooms, health care, residential, and unclassified space (stairways, hallways, corridors). NASF includes auxiliary space and E&G space.

(12)

New construction -- A new building or facility, the addition to an existing building or facility, or new infrastructure that does not currently exist on campus. New construction would add square footage to an institution's physical plant.

(13)

Tuition revenue bond projects -- A project for which an institution has legislative authority to pledge tuition income to finance a construction or land acquisition project.

§17.3. Governing Board Approval Required.

The Coordinating Board shall not consider for review any construction project, real property acquisition, or leased 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, and further that:

(5)

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

(b)

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

(1)

Previously approved projects if:

(A)

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

(B)

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

(C)

contracts on the project have not been let within eighteen months from its final approval date, or

(D)

an award in eminent domain if the award amount exceeds cost estimates by more than 10%.

(E)

any change in the funding source of an approved project.

(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; and

(4)

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

(5)

Construction of new E&G space having a value of less than $1 million; and

(6)

Projects funded more than 50% with tuition revenue bond proceeds. For these projects the criteria includes:

(A)

Board standards regarding space need are met.

(B)

Board standards regarding construction cost and efficiency are met.

(C)

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.

(D)

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.

(7)

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.

(8)

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.

(9)

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.

(10)

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).

(11)

If the project includes the acquisition of real property, appropriate consideration has been given to the effect of the acquisition on residential neighborhoods.

(12)

If the project includes the acquisition of real property, the acquisition shall be included in the institution's long-range campus master plan.

(13)

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.

(c)

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.

(d)

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.

(e)

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

(f)

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

(g)

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.

§17.5.Application Procedures.

(a)

Institutions desiring approval of construction projects or property acquisitions shall apply on forms specified by the Board.

(b)

Project submission schedule:

(1)

Projects to be considered by the Commissioner may be submitted at any time.

(2)

Projects to be considered by the Campus Planning Committee or the Board shall be submitted at least 60 days prior to the regularly scheduled Board meeting at which consideration is desired.

§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 is lower than the maximum estimated cost per gross square foot found in R. S. Means Facilities Construction Costs and lower than the CPI-adjusted construction cost per gross square foot of 75% of similar campus buildings approved by the Coordinating Board and constructed in the past five years. 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 is 0.60 or greater.

(4)

Deferred Maintenance -- The ratio of campus-deferred maintenance costs to replacement cost is 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 proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100796

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§17.21-17.27, 17.31, 17.33, concerning Campus Planning (Criteria for Approval of New Construction and Major Repair and Rehabilitation). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of the rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the proposed repeal. There is no impact on local employment.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The repeals are proposed under Texas Education Code, Section 61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, Sections 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.

The repeal of the rules affect the Texas Education Code, Sections 61.0579 and 61.058.

§17.21.Object.

§17.22.Scope of Coordinating Board Review.

§17.23.Campus Master Plans.

§17.24.New Construction.

§17.25.Major Repair and Rehabilitation.

§17.26.Limitations (Public Junior Colleges).

§17.27.Legislative Limitations.

§17.31.Contracting for Advice on Costs and Construction.

§17.33.Provisions for Review of Projects Previously Approved.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100792

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §17.10 and §17.11 concerning Campus Planning (New Construction and Repair and Rehabilitation Projects). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The principal change in the proposed new rules is to restructure the existing rules to increase readability. A change is proposed to clarify rules regarding re-approval of projects eligible for Commissioner approval. New rules are proposed to establish standards for construction projects, processes for updating space projection models used by the Board, eminent domain, and reporting requirements. These new rules document existing practices.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the new rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering the new rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed 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.

The new rules affect the Texas Education Code, §61.0579 and §61.058

§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)

The Board's consideration and determination shall be limited to the purpose for which the new or remodeling 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.

(c)

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.

(d)

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.

(e)

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.

§17.11.Time Limit on Approval.

Approvals for construction projects are valid for 18 months after project approval. If a contract to complete the work is not fully executed within 18 months, the project must be resubmitted.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100797

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§17.41-17.46 concerning Campus Planning (Application for Approval of New Construction and Major Repair and Rehabilitation). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of the rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the proposed repeal. There is no impact on local employment.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The repeals are proposed under Texas Education Code, Section 61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, Sections 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.

The repeal of the rules affect the Texas Education Code, Sections 61.0579 and 61.058.

§17.41.Object.

§17.42.Application for Project Approval.

§17.43.Compliance with Statutory Building Requirements for Elimination of Architectural Barriers to Persons with Disabilities.

§17.44.Information Required.

§17.45.Energy Conservation Projects.

§17.46.Special Approval Procedure.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100793

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§17.20 - 17.24 concerning Campus Planning (Real Property Acquisition Projects). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The principal change in the proposed new rules is to restructure the existing rules to increase readability. A change is proposed to clarify rules regarding re-approval of projects eligible for Commissioner approval. New rules are proposed to establish standards for construction projects, processes for updating space projection models used by the Board, eminent domain, and reporting requirements. These new rules document existing practices.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the new rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering the new rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed 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.

The new rules affect the Texas Education Code, §§61.0579 and 61.058

§17.20.Additional Application Materials Required.

(a)

Real Property Costing $50,000 or Less. For any real property acquisition costing $50,000 or less, the institution shall describe briefly how it is certain that fair value will be paid for the property. The institution may submit appraisals for this purpose.

(b)

Real Property Costing $50,000 or More. For any acquisition of real property whose cost exceeds $50,000, the institution shall comply with the following procedure:

(1)

On real property proposed to be acquired, the institution shall submit to the Board two appraisal reports issued by appraisers, at least one of which meets one of the following requirements:

(A)

Is a member of the American Institute of Real Estate Appraisers (designated M.A.I., or R.M.);

(B)

Is a senior member of the Society of Real Estate Appraisers (S.R.E.A. and S.R.A.);

(C)

Is a senior member of the American Society of Appraisers with the professional designation in real estate; or

(D)

Is a senior member or appraiser-counselor of the National Association of Independent Fee Appraisers (designated I.F.A.S. or I.F.A.C.).

(2)

The most recent appraisal of the local property tax appraisal district may be used for one of these reports.

(3)

If desired by the institution, appraisal figures shall be held in confidence and not released publicly. The requiring of appraisals in no way requires the institution to release the figures to property owners during the acquisition process, nor does the requirement of appraisals deny the institution the right to settle a purchase at a price below the appraisals.

§17.21.Emergency Requests.

For requests of an emergency nature, Coordinating Board consideration of requests for real property acquisitions may be delegated to the Commissioner or the Campus Planning Committee. The Commissioner or the Campus Planning Committee may act upon such requests between scheduled meetings of the Board or choose to refer it to the Board at its next regularly scheduled meeting.

§17.22.Time Limit on Approval.

Approvals to purchase real property are valid for two years from the date of approval. Property acquisitions not completed in that time must be resubmitted.

§17.23.Property Acquisitions not Approved.

Under Texas Education Code, §61.0572, the Coordinating Board is directed to endorse or delay until the next succeeding session of the legislature has the opportunity to approve or disapprove, the proposed purchase of any real property by an institution of higher education, except a public junior college.

§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.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100798

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§17.61-17.68 concerning Campus Planning (Requesting Coordinating Board Endorsement of Real Property Acquisitions). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of the rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the proposed repeal. There is no impact on local employment.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The repeals are proposed under Texas Education Code, Section 61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, Sections 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.

The repeal of the rules affect the Texas Education Code, Sections 61.0579 and 61.058.

§17.61.Purpose.

§17.62.Real Property Costing $50,000 or Less.

§17.63.Real Property Costing $50,000 or More.

§17.64.Application Form.

§17.65.Procedure for Endorsement of Real Property Acquisition.

§17.66.Real Property Acquired by Gifts or Lease-Purchase.

§17.67.Time Limitation for Endorsement of Land Acquisition.

§17.68.Leased or Rented Real Property.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100794

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§17.30 and 17.31 concerning Campus Planning (Leased Space). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The principal change in the proposed new rules is to restructure the existing rules to increase readability. A change is proposed to clarify rules regarding re-approval of projects eligible for Commissioner approval. New rules are proposed to establish standards for construction projects, processes for updating space projection models used by the Board, eminent domain, and reporting requirements. These new rules document existing practices.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the new rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering the new rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed 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.

The new rules affect the Texas Education Code, §§61.0579 and 61.058

§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)

if 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 space acquired by an institution.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100799

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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


Subchapter D. AUDITS OF EDUCATIONAL AND GENERAL FACILITIES

19 TAC §17.81

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §17.81 concerning Campus Planning (Audits of Educational and General Facilities). 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.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the proposed repeal is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of administering the repeal of the rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the proposed repeal. There is no impact on local employment.

Comments on the proposed repeal of the rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The repeal is proposed under Texas Education Code, Section 61.027, which provides the Texas Higher Education Coordinating Board the authority to adopt rules, and Texas Education Code, Sections 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.

The repeal of the rule affects the Texas Education Code, Sections 61.0579 and 61.058.

§17.81.Periodic Audits of Educational and General Facilities.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100795

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 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 proposes new §§17.40 - 17.42 concerning Campus Planning (Institutional Reporting). Existing Board rules concerning campus planning procedures were developed over a number of years with numerous amendments. The principal change in the proposed new rules is to restructure the existing rules to increase readability. A change is proposed to clarify rules regarding re-approval of projects eligible for Commissioner approval. New rules are proposed to establish standards for construction projects, processes for updating space projection models used by the Board, eminent domain, and reporting requirements. These new rules document existing practices.

Roger W. Elliott, Assistant Commissioner for Finance, Campus Planning, and Research, has determined that for each year of the first five years the new rules are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the new rules as proposed.

Dr. Elliott has also determined that for each year of the first five years the new rules are in effect, the public benefit anticipated as a result of administering the new rules will be more efficient Board meetings and an improved understanding of Board operations related to Campus Planning activities. There will be no effect on small businesses. There is no anticipated economic costs to institutions required to comply with the new rules as proposed. There is no impact on local employment.

Comments on the new rules may be submitted to Dr. Don W. Brown, Commissioner of Higher Education, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed 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.

The new rules affect the Texas Education Code, §§61.0579 and 61.058

§17.40.Required Reports.

All public lower-division institutions and technical colleges, general academic institutions, health-related institutions, and Texas A&M University System service agencies are required to submit current data to the Coordinating Board for the following reports:

(1)

Campus Master Plans.

(A)

The Coordinating Board shall consider projects that are included in campus master plan reports. A project that is not included in the master plan may be considered if the Board determines that the institution, even with careful planning, could not reasonably have foreseen the project need.

(B)

Campus master plans shall include:

(i)

an assessment of an institution's facilities deferred maintenance needs;

(ii)

a plan to address the deferred maintenance needs;

(iii)

the amount the institution plans to designate each fiscal year for the cost of repairs, rehabilitation, and deferred maintenance projects;

(iv)

the funding source for any planned construction or real property acquisition proposal that is not exempt from Board approval;

(v)

a description of the proposals which the institution plans to finance with the Higher Education Assistance Fund or Permanent University Fund (Article VII, §§17 or 18, of the Texas Constitution); and,

(vi)

any proposed new construction, repair and rehabilitation, real property acquisition, or other construction project that may be submitted within the next five years to the Coordinating Board.

(C)

On October 15 of each year institutions must submit an update to its campus master plan on file at the Coordinating Board.

(2)

Reports as required by the Coordinating Board's Educational Data Center.

(3)

Facilities inventory of building and rooms occupied or in the control of an institution in a format specified by the Board. The inventory shall be updated on an on-going basis and is subject to periodic audits.

§17.41.Space Utilization.

The Board shall collect data and promulgate reports designed to inform the public and other state agencies, of the intensity of use of E&G facilities, at the public universities, technical colleges and lower-division institutions. The Board's standards for space utilization are:

(1)

Classroom utilization. The Board's standard for average weekly hours of use of E&G classrooms are 38 hours.

(2)

Class lab utilization. The Board's standard for average weekly hours of use of E&G class laboratories are 25 hours.

§17.42.Space Projection Models.

The Board, in consultation with institutions of higher education shall develop space planning models to estimate the NASF of E&G space need at public lower-division institutions and technical colleges, general academic institutions, health-related institutions, and Texas A&M University System service agencies.

(1)

Use. The Board shall use the models developed under this section to determine the need for space on campuses and as a component of funding formulas for institutions other than community colleges.

(2)

Periodic Review. Each biennium, the Commissioner may convene an advisory committee of institutional representatives to review the model and recommend changes.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on February 7, 2001.

TRD-200100800

Gary Prevost

Acting Assistant Commissioner for Administration

Texas Higher Education Coordinating Board

Proposed date of adoption: April 20, 2001

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