85R5707 KSD-D
 
  By: Alvarado H.B. No. 1737
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a requirement that the governing board of a public
  institution of higher education obtain prior approval from the
  Texas Higher Education Coordinating Board before making certain
  land purchases.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.05715 to read as follows:
         Sec. 61.05715.  BOARD APPROVAL REQUIRED FOR CERTAIN LAND
  PURCHASES. (a) Notwithstanding any other provision of this chapter
  or other law, the governing board of an institution of higher
  education may purchase land for the use of the institution that is
  outside of the service region of the institution only if the
  governing board obtains prior approval for the purchase from the
  board.
         (b)  The board by rule shall define the service region for
  each institution of higher education for purposes of this section
  so that all the geographic territory of this state is included in at
  least one service region. In defining the service region for an
  institution, the board shall include areas:
               (1)  that are in geographic proximity to the
  institution;
               (2)  in which the institution's students predominantly
  reside while attending the institution;
               (3)  in which the faculty and staff of the institution
  primarily reside;
               (4)  in which the institution is a primary contributor
  to serving local educational and workforce demand; and
               (5)  that otherwise directly benefit by virtue of
  proximity to the institution.
         (c)  The board may approve a purchase by a governing board of
  an institution of higher education of land for the use of the
  institution that is outside of the service region of the
  institution only if the board determines that:
               (1)  the intended use of the land is consistent with the
  institution's mission and the goals of the state's master plan for
  the delivery of higher education in this state and does not
  unnecessarily duplicate other programs and resources; and
               (2)  the region in which the land is located is not
  adequately served by other institutions of higher education with
  respect to the intended use of the land.
         (d)  The board shall adopt rules for the administration of
  this section, including rules prescribing the procedure by which
  the governing board of an institution of higher education may seek
  approval for a land purchase described by this section.
         (e)  This section does not apply to the purchase of permanent
  university fund land assets.
         SECTION 2.  The Texas Higher Education Coordinating Board
  shall adopt rules required by Section 61.05715, Education Code, as
  added by this Act, as soon as practicable following the effective
  date of this Act, but not later than December 1, 2017.
         SECTION 3.  The change in law made by this Act applies only
  to a contract for the purchase of land entered into on or after
  January 1, 2018. A contract for the purchase of land entered into
  before that date is governed by the law in effect on the date the
  contract is entered into, and the former law is continued in effect
  for that purpose.
         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, 2017.