PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD
SUBCHAPTER D. RULES APPLYING TO NEW CONSTRUCTION AND ADDITION PROJECTS
The Texas Higher Education Coordinating Board adopts amendments to §17.30, concerning rules applying to new construction and addition projects, with changes to the proposed text as published in the February 13, 2009, issue of the Texas Register (34 TexReg 924). Specifically, the purpose of the amendments will revise the project standard for construction costs and add the utilization standard. The change in the construction cost standard would replace the criteria from a range of projects approved in the past five years, to the standard of construction costs not to exceed the mean plus one standard deviation above the mean of construction costs for the projects approved in the past seven years. The new standard for utilization is replacing the guideline of classroom and class laboratories. The utilization standard will be the combination of three factors: room demand, hours per week of use, and percent of student stations filled.
The following comments were received regarding the amendments:
Comment: A comment was received from the Utilization Working Group regarding the actions required of an institution not in compliance with the standard regarding the Space Usage Efficiency (SUE). It was requested that §17.30(2)(D)(iv)(II) be deleted or be changed to read "a demonstration that significant improvement will be made to the SUE as a result of this project".
Response: Staff agrees with the comments and the deletion of this paragraph was made accordingly.
The amendments are adopted under the Texas Education Code, §§51.927, 61.027, 61.0572, and 61.058.
§17.30.Standards for New Construction and/or Addition Projects.
To obtain Board approval for a new construction and/or addition project, an institution shall demonstrate that the project complies with the following standards:
(1) Institutional Standards.
(A) Deferred Maintenance.
(i) The Board standard for deferred maintenance shall be the ratio of campus deferred maintenance costs to replacement value of 5 percent or less.
(ii) If the ratio of campus deferred maintenance costs to replacement value is more than 5 percent, a project may be approved if the institution demonstrates that:
(I) the project is intended to reduce the deferred maintenance on the campus, or
(II) the institution has demonstrated a reduction in its deferred maintenance to replacement value ratio 10 percent or more for the immediate prior three years.
(iii) Alternatively, if the deferred maintenance to replacement value ratio is greater than 5 percent, a project may be approved if the institution:
(I) submits a written plan on a form specified by the Board for substantial progress toward meeting the standard; and
(II) provides the Board with a statement signed by the president of the institution, regarding its ability to support and maintain the proposed facility while continuing to address current institutional facility maintenance needs. The president of the institution may not delegate this authority.
(B) Critical Deferred Maintenance.
(i) The Board standard for critical deferred maintenance is zero.
(ii) If the critical deferred maintenance is greater than zero, a project may be approved if the institution:
(I) Develops an acceptable plan in place to address any critical deferred maintenance reported on the master plan; and
(II) the institution shall demonstrate progress towards meeting the plan goals; and
(III) the institution shall provide the Board with a statement signed by the president of the institution regarding its ability to support and maintain the proposed facility while continuing to address current institutional facility maintenance needs. The president of the institution may not delegate this authority.
(2) Project Standards. The institution shall demonstrate that a new construction or addition project complies with the following project standards:
(A) Space Need--The project shall not create a campus space surplus, or add to an existing surplus, as determined by the Board's space projection model report, required by §17.100 of this title (relating to Board Reports).
(i) If the institution has a predicted surplus of space in the current Space Projection Model report and the project is required to accommodate future predicted enrollment growth, the Board may consider a written plan from the institution, on a form specified by the Board, for substantial progress toward meeting the standard. The plan must include:
(I) an explanation of the expected growth and how the predicted growth will impact the institution;
(II) a demonstration of progress towards eliminating the surplus;
(III) a statement regarding the ability of the institution to support and maintain the proposed facility while continuing to address current institutional facility needs; and
(IV) a demonstration that, upon completion of the project, the institution will comply with the Board standard and eliminate the space surplus.
(V) The plan shall be signed by the president of the institution. The president of the institution may not delegate this authority within the requesting institution.
(ii) If more than one project is submitted for an agenda, all projects submitted for the current agenda will be considered in the determination of a campus surplus or deficit.
(B) Cost--The construction building cost per gross square foot shall not exceed one standard deviation above the mean of similar projects approved by the Board within the last seven years, adjusted for inflation as described in the Board's Construction Cost report, §17.100 of this title (relating to Board Reports). The estimated construction cost of the project will be adjusted by the future inflation factor based on the projected timeline of the construction midpoint. If the construction cost per gross square foot exceeds one standard deviation above the mean of similarly approved projects, as published periodically by the Coordinating Board the institution shall demonstrate that the higher cost is due to market conditions or other circumstances that warrant the higher cost.
(C) Efficiency--The ratio of NASF to GSF for the space in projects for classrooms and general purpose facilities shall be 0.60 or greater. Where the following specialized space is predominant in the project, the ratios of NASF to GSF shall be as follows:
(i) Office space: 0.65 or greater;
(ii) Clinical facility; 0.50 or greater;
(iii) Diagnostic support laboratories: 0.50 or greater; and
(iv) Technical research buildings: 0.50 or greater; and
(v) Parking structure:
(I) 400 Square Feet per parking space for automobile facilities;
(II) 500 Square Feet per parking space for boathouses; and
(III) 3,000 Square Feet per parking space for airplanes.
(IV) If the parking structure does not meet this standard, the project may be approved if the institution demonstrates that the lower efficiency is due to the shape of the available land or site or other conditions that warrant the lower efficiency.
(vi) For mixed-use facilities, the ratio of NASF to GSF shall be calculated for each space type and considered separately.
(D) Usage Efficiency--The use of existing classroom and class laboratory facilities will be considered when the project includes Education & General (E&G) square footage.
(i) Classroom usage efficiency--
(I) A score of 75 points or higher is considered as meeting the standard.
(II) The classroom score will determine compliance for projects involving the following facility types: classroom, general; auditorium/theater; other facility types that appear, as determined by the Texas Higher Education Coordinating Board (THECB) staff, to contain classrooms or similar space.
(III) The approval authority as specified in THECB Board rules has the discretion to consider classroom score in considering approval for projects related to any facility type.
(ii) Class laboratory usage efficiency--
(I) A score of 75 points or higher is considered as meeting the standard.
(II) The class laboratory score will determine compliance for projects involving facility type laboratory, general and other facility types that appear, as determined by the THECB staff, to contain class laboratories or similar space
(III) The approval authority as specified in THECB Board rules has the discretion to consider class laboratory score in considering approval for projects related to any facility type.
(iii) Overall usage efficiency--
(I) Overall score is a function of the classroom and class laboratory scores. A combined score of 150 or higher, as determined by summing the classroom and class laboratory scores, is considered as meeting the overall standard.
(II) The overall score will determine compliance for projects involving the following facility types: athletic; library/study facilities; office, general; office, high rise; office, technology; physical plant; student center; other; and projects that, at the discretion of the THECB staff, cannot clearly be classified in a single category of facility type.
(III) The approval authority as specified in THECB Board rules has the discretion to consider the overall score in considering approval for projects related to all facility types.
(iv) Non-compliance--If an institution is not in compliance with any standard outlined in clauses (i) - (iii) of this subparagraph, the Board may approve the project if the institution has submitted a written plan of action, on a form specified by the Board, for substantial progress toward meeting the standard. The plan must include:
(I) An explanation of the factors influencing the current utilization score and the expected growth and how the plan of action will improve institutional performance.
(II) The plan shall be signed by the president of the institution. The president of the institution may not delegate this authority within the requesting institution.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 4, 2009.
TRD-200901676
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Effective date: May 24, 2009
Proposal publication date: February 13, 2009
For further information, please call: (512) 427-6114
The Texas Higher Education Coordinating Board adopts the repeal of §17.31, concerning rules applying to new construction and addition projects, without changes to the proposed text as published in the February 13, 2009, issue of the Texas Register (34 TexReg 925). Specifically, the purpose of the repeal will delete the additional guideline section. The change in the construction cost standard would replace the criteria from a range of projects approved in the past five years, to the standard of construction costs not to exceed the mean plus one standard deviation above the mean of construction costs for the projects approved in the past seven years. The new standard for utilization is replacing the guideline of classroom and class laboratories. The utilization standard will be the combination of three factors: room demand, hours per week of use, and percent of student stations filled.
There were no comments received regarding the repeal of this section.
The repeal is adopted under the Texas Education Code, §§51.927, 61.027, 61.0572, and 61.058.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 4, 2009.
TRD-200901677
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Effective date: May 24, 2009
Proposal publication date: February 13, 2009
For further information, please call: (512) 427-6114
The Texas Higher Education Coordinating Board adopts amendments to §17.100, concerning rules applying to Campus Planning Board Reports, without changes to the proposed text as published in the February 13, 2009, issue of the Texas Register (34 TexReg 926). Specifically, the purpose of the amendments is to address the definition of construction costs for the Board report. The change in the construction cost report replaces the average cost with the mean and mean plus one standard deviation above the mean on the report for the projects approved in the past seven, instead of five years. The rule change also adds adjustments for the region of the state where the project is located and the future inflation factor. The rule change modifies the report to include only costs of new construction/additions and repair and renovation only. The separate calculation of parking construction and housing costs is eliminated and continues to be included in the report as a facility type.
No comments were received regarding the amendments.
The amendments are adopted under the Texas Education Code, §§51.927, 61.027, 61.0572, and 61.058.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 4, 2009.
TRD-200901678
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Effective date: May 24, 2009
Proposal publication date: February 13, 2009
For further information, please call: (512) 427-6114
SUBCHAPTER A. GENERAL PROVISIONS
The Texas Higher Education Coordinating Board (Coordinating Board) adopts new §21.8, concerning General Provisions, without changes to the proposed text as published in the February 20, 2009, issue of the Texas Register (34 TexReg 1167). Specifically, new §21.8 provides a general definition of student financial need. Certain sections of the Texas Education Code, such as §56.011(b) regarding set-asides from designated tuition, indicate institutions are to award funds to students who "must establish financial need in accordance with rules and procedures established by the Texas Higher Education Coordinating Board." Currently, the term "financial need" is defined in Coordinating Board rules for individual financial aid programs, but there is no generic definition in our rules of "student financial need." New §21.8 provides this definition.
No comments were received regarding the new section.
The new section is adopted under the Texas Education Code, §56.011(b) and §56.012(b), which gives the Coordinating Board the authority to adopt rules that will provide for the efficient and uniform application of this section.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 4, 2009.
TRD-200901679
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Effective date: May 24, 2009
Proposal publication date: February 20, 2009
For further information, please call: (512) 427-6114
The Texas Higher Education Coordinating Board adopts new §§21.2200 - 21.2207, concerning the Children's Medicaid Loan Repayment Program. Sections 21.2200, 21.2201 and 21.2203 - 21.2206 are adopted with changes to the proposed text as published in the February 20, 2009, issue of the Texas Register (34 TexReg 1168). Sections 21.2202 and 21.2207 are being adopted without changes and will not be republished.
Specifically, House Bill 15, 80th Texas Legislature, Regular Session, instructs the Texas Health and Human Services Commission (HHSC) to develop a plan (contingent on applicable approval by the federal judiciary and pursuant to the Joint Motion in Frew v. Hawkins), that details the proposed expenditure of funds in a manner that addresses the requirements of the Consent Decree, the Joint Motion, and the judicially-approved Correction Action Plans in Frew v. Hawkins, to the extent those judicially-approved Corrective Action Plans supersede the Joint Motion. The Frew expenditure plan was approved by the Governor's Office of Budget, Planning, and Policy and the Legislative Budget Board (LBB) in October 2007. The Frew expenditure plan included Appendix D, Strategic Initiatives Received from Public Stakeholders, which indicates to achieve the objective of increasing participation of medical and dental providers who serve children in the Texas Medicaid program, HHSC should fund or establish well-structured loan repayment programs with a particular emphasis on primary care. The Texas Health and Human Services Commission is currently drafting a Memorandum of Understanding, under which the Texas Higher Education Coordinating Board (THECB) will serve as a fiscal disbursing agent for the program. To qualify, participants must meet specified targets for Medicaid services to children. The program anticipates enrolling up to 300 physicians and dentists per year. Once the program is fully implemented, HHSC anticipates that it will provide loan repayments for up to 1,200 physicians and dentists per year. Each doctor will be eligible for up to $140,000 in loan repayments over four years if he or she meets targets for services provided to Medicaid eligible children. The loan repayment program is expected to cost about $300,000 in state funding in fiscal year 2010, with the cost growing to $42.6 million a year once the program achieves the maximum number of participants after four years. The new sections establish definitions and identify the eligibility requirements for provider, education loan, and lender or holder of loan.
The following comments were received regarding the new sections:
Comment: The Texas Health and Human Services Commission made several comments, including (1) that the name of the program has been changed; (2) that certain revisions would enhance clarity; and (3) that dentists as well as doctors need to be specifically included.
Response: The Board agreed with and adopted all recommendations made by HHSC.
The new sections are adopted under the Texas Education Code, §61.027, which provides the Coordinating Board with general rulemaking authority, Article III of the General Appropriations Act of the 80th Texas Legislature, and House Bill 15, §19 and §20, 80th Texas Legislature.
§21.2200.Authority and Purpose.
(a) Authority. Authority for this subchapter is provided in House Bill 15, §19 and §20, 80th Legislature, Regular Session, 2007.
(b) Purpose. The purpose of the Children's Medicaid Loan Repayment Program is to increase access to health care for Medicaid-enrolled beneficiaries under the age of 21 by encouraging qualified primary care, specialty, and subspecialty physicians and dentists to participate in the Medicaid program.
§21.2201.Administration.
The Texas Higher Education Coordinating Board, or its successor or successors, shall enter into an agreement with the Texas Health and Human Services Commission (HHSC) and/or the Texas Department of State Health Services (DSHS) to administer the disbursement processes of the Children's Medicaid Loan Repayment Program. The agreement shall describe the respective roles and responsibilities of the Coordinating Board, the Texas Health and Human Services Commission and the Texas Department of State Health Services, including application review and selection, compliance monitoring, dissemination of information, and funds disbursement.
§21.2203.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
(1) Board--The Texas Higher Education Coordinating Board.
(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.
(3) DSHS--The Texas Department of State Health Services.
(4) HHSC--The Texas Health and Human Services Commission.
(5) Medicaid--The State and Federal cooperative venture that provides medical coverage to eligible needy persons.
(6) Program--The Children's Medicaid Loan Repayment Program.
(7) Service period--A twelve-month period during which a physician or dentist qualifies for repayment of education loans.
§21.2204.Provider Eligibility Requirements.
Applicants must:
(1) have an outstanding eligible education loan;
(2) ensure that an application has been received by DSHS by the established deadline;
(3) hold an unrestricted license from the Texas Medical Board or the Texas State Board of Dental Examiners;
(4) if practicing in a specialty or subspecialty, be certified by or be eligible to sit for the applicable specialty or subspecialty board;
(5) have a Medicaid provider number;
(6) not, at the time of application or at any time during which the recipient is fulfilling his or her obligation under the Program, be fulfilling another service obligation to provide medical or dental services in the same eligible area or facility;
(7) fulfill the four-year service obligation in the Children's Medicaid Loan Repayment Program before qualifying for loan repayment through any other state loan repayment program; and
(8) provide eligible services for four consecutive years and meet the target number of Medicaid visits by children under the age of 21 for each 12-month period as indicated on the following table:
§21.2205.Eligible Education Loan.
To be eligible for repayment, an education loan must:
(1) have been made for undergraduate, graduate, medical or dental education at an accredited institution in the United States;
(2) not have been made during residency;
(3) not be from a loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a spouse or other relative;
(4) not have an existing service obligation;
(5) not be subject to repayment through another student loan repayment or loan forgiveness program; and
(6) not be consolidated with non-education loans or with loans obtained by someone other than the provider applying for loan repayment.
§21.2206.Eligible Lender or Holder.
The Board shall retain the right of determining eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate, graduate, medical or dental education.
(1) An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, pension fund, private foundation, or insurance company.
(2) An eligible lender or holder shall not be any private individual.
This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of the Secretary of State on May 4, 2009.
TRD-200901680
Bill Franz
General Counsel
Texas Higher Education Coordinating Board
Effective date: May 24, 2009
Proposal publication date: February 20, 2009
For further information, please call: (512) 427-6114