By: Seliger, Eltife S.B. No. 496
      West
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the Texas Higher Education
  Coordinating Board to review and approve capital projects and
  purchases of real property at public institutions of higher
  education in this state.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsections (b), (d), and (e), Section 61.0572,
  Education Code, are amended to read as follows:
         (b)  The board shall:
               (1)  determine formulas for space utilization in all
  educational and general buildings and facilities at institutions of
  higher education;
               (2)  devise and promulgate methods to assure maximum
  daily and year-round use of educational and general buildings and
  facilities, including but not limited to maximum scheduling of day
  and night classes and maximum summer school enrollment;
               (3)  consider plans for selective standards of
  admission when institutions of higher education approach capacity
  enrollment;
               (4)  require, and assist the public technical
  institutes, public senior colleges and universities, medical and
  dental units, and other agencies of higher education in developing
  long-range campus master plans for campus development; and
               (5)  [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;
               [(6)     develop and publish standards, rules, and
  regulations to guide the institutions and agencies of higher
  education in making application for the approval of new
  construction and major repair and rehabilitation of all buildings
  and facilities regardless of proposed use; and
               [(7)]  ascertain that the board's standards and
  specifications for new construction, repair, and rehabilitation of
  all buildings and facilities are in accordance with Chapter 469,
  Government Code [Article 9102, Revised Statutes].
         (d) [(1)]  The board[, for purposes of state funding,] may
  review purchases of [and approve as an addition to an institution's
  educational and general buildings and facilities inventory any]
  improved real property added to an institution's educational and
  general buildings and facilities inventory [acquired by gifts or
  lease-purchase only if:
                     [(A)     the institution requests to place the
  improved real property on its educational and general buildings and
  facilities inventory; and
                     [(B)     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 educational and general buildings and
  facilities inventory.
               [(2)     This subsection does not apply to gifts, grants,
  or lease-purchase arrangements intended for clinical or research
  facilities.
         [(e)     Approval of the board is not required to acquire real
  property that is financed by bonds issued under Section 55.17(e)(3)
  or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174,
  55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
  55.17721, except that the board shall review all real property to be
  financed by bonds issued under those sections] to determine whether
  the property meets the standards adopted by the board for cost,
  efficiency, and space use, but the purchase of the improved real
  property is not contingent on board review.  If the property does
  not meet those standards, the board shall notify the governor, the
  lieutenant governor, the speaker of the house of representatives,
  and the Legislative Budget Board.  This subsection does not impair
  the board's authority to collect data relating to the improved real
  property that is added each year to the educational and general
  buildings and facilities inventory of institutions of higher
  education.
         SECTION 2.  Subsections (a) and (b), Section 61.058,
  Education Code, are amended to read as follows:
         (a)  This section does not apply to [Except as provided by
  Subsection (b) of this section, 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 provided that:
                     [(A)     the board's consideration and determination
  shall be limited to the purpose for which the new or remodeled
  buildings are to be used to assure conformity with approved space
  utilization standards and the institution's approved programs and
  role and mission if the cost of the project is not more than
  $4,000,000, but the board may consider cost factors and the
  financial implications of the project to the state if the total cost
  is in excess of $4,000,000;
                     [(B)     the requirement of approval for new
  construction applies only to projects the total cost of which is in
  excess of $4,000,000;
                     [(C)     the requirement of approval for major repair
  and rehabilitation of buildings and facilities applies only to a
  project the total cost of which is more than $4,000,000;
                     [(D)     the requirement of approval or disapproval
  by the board does not apply to any new construction or major repair
  and rehabilitation project that is specifically approved by the
  legislature;
                     [(E)     the requirement of approval by the board
  does not apply to a junior college's construction, repair, or
  rehabilitation financed entirely with funds from a source other
  than the state, including funds from ad valorem tax receipts of the
  college, gifts, grants, and donations to the college, and student
  fees; and
                     [(F)     the requirement of approval by the board
  does not apply to construction, repair, or rehabilitation of
  privately owned buildings and facilities located on land leased
  from an institution of higher education if the construction,
  repair, or rehabilitation is financed entirely from funds not under
  the control of the institution, and provided further that:
                           [(i)  the] buildings and facilities that are
  to be used exclusively for auxiliary enterprises[;] and
                           [(ii)  the buildings and facilities] will
  not require appropriations from the legislature for operation,
  maintenance, or repair [unless approval by the board has been
  obtained].
         (b)  The [This section does not apply to construction,
  repair, or rehabilitation financed by bonds issued under Section
  55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174,
  55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
  55.17721, except that the] board may [shall] review all
  construction, repair, or rehabilitation of buildings and
  facilities at institutions of higher education [to be financed by
  bonds issued under those sections] to determine whether the
  construction, rehabilitation, or repair meets the standards
  adopted by board rule for cost, efficiency, and space use, but the
  construction, rehabilitation, or repair is not contingent on board
  review.  If the construction, rehabilitation, or repair does not
  meet those standards, the board shall notify the governor, the
  lieutenant governor, the speaker of the house of representatives,
  and the Legislative Budget Board.  This subsection does not impair
  the board's authority to collect data relating to the construction,
  repair, or rehabilitation of buildings and facilities occurring
  each year at institutions of higher education.
         SECTION 3.  The following provisions of the Education Code
  are repealed:
               (1)  Section 61.0573; and
               (2)  Subsection (c), Section 61.058.
         SECTION 4.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2013.