|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to the sale of facilities of public institutions of higher |
|
education to real estate investment trusts. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Chapter 55, Education Code, is amended by adding |
|
Subchapter D to read as follows: |
|
SUBCHAPTER D. SALE OF INSTITUTION OR JUNIOR COLLEGE FACILITIES TO |
|
REAL ESTATE INVESTMENT TRUST |
|
Sec. 55.501. SALE OF INSTITUTION OR JUNIOR COLLEGE |
|
FACILITIES TO REAL ESTATE INVESTMENT TRUST AUTHORIZED. An |
|
institution of higher education or junior college district may sell |
|
a facility owned by the institution or junior college district to a |
|
real estate investment trust as provided by this subchapter. |
|
Sec. 55.502. CONCURRENT AGREEMENTS. (a) Concurrent with |
|
the sale of a facility under this subchapter, an institution of |
|
higher education or junior college district must enter into: |
|
(1) a lease with the real estate investment trust |
|
purchasing the facility under which the institution or district may |
|
use the facility as provided by Subsection (c); and |
|
(2) a contract with the investment trust or another |
|
entity for the trust or other entity to manage, maintain, and, as |
|
necessary, improve the facility. |
|
(b) A lease under Subsection (a)(1) must be for a term of at |
|
least 20 years. A contract under Subsection (a)(2) for a facility |
|
must be for the same term as the lease relating to that facility. |
|
(c) A lease under Subsection (a)(1) must provide that, for |
|
the duration of the lease: |
|
(1) during hours when the institution of higher |
|
education or junior college district offers classes, the facility |
|
must be used for educational purposes; and |
|
(2) at times other than during class hours, the |
|
facility may be used for other purposes as determined by the trust |
|
managers of the real estate investment trust. |
|
Sec. 55.503. NOTICE OF PROPOSED SALE; PROPOSAL. (a) Except |
|
as provided by Section 55.504, before selling a facility to a real |
|
estate investment trust under this subchapter or executing a lease |
|
or contract in connection with the sale, the governing board of an |
|
institution of higher education or junior college district shall: |
|
(1) determine which facility is proposed to be sold; |
|
(2) determine the terms on which the board will |
|
consider selling the facility; |
|
(3) publish a notice to prospective purchasers |
|
requesting sealed written proposals from prospective purchasers to |
|
purchase the facility; and |
|
(4) make a formal determination as to which sealed |
|
written proposal is most advantageous to the institution or |
|
district and accept that proposal or reject all proposals if the |
|
governing board considers it advisable to do so. |
|
(b) A notice under Subsection (a)(3) must be published at |
|
least two weeks before the date set for receiving proposals in a |
|
real estate journal and in at least two newspapers of general |
|
circulation in the county in which the institution of higher |
|
education is located or in the junior college district, as |
|
applicable. The notice must include: |
|
(1) the terms of sale and the matters to be addressed |
|
by concurrent agreements required under Section 55.502 that will be |
|
considered; and |
|
(2) the time and date by which, and place where, the |
|
proposals must be received. |
|
(c) A proposal submitted by a real estate investment trust |
|
under this section must include proposals relating to the terms of |
|
each concurrent agreement required by Section 55.502. |
|
Sec. 55.504. UNSOLICITED PROPOSALS BY REAL ESTATE |
|
INVESTMENT TRUSTS. (a) A real estate investment trust may make an |
|
unsolicited proposal to an institution of higher education or |
|
junior college district to purchase a facility owned by the |
|
institution or district under this subchapter. A proposal |
|
submitted by a real estate investment trust under this subsection |
|
must include proposals relating to the terms of each concurrent |
|
agreement required by Section 55.502. |
|
(b) Before an institution of higher education or junior |
|
college district may accept a proposal received under Subsection |
|
(a), the institution or district must: |
|
(1) publish a notice of the proposed sale and a request |
|
for competing sealed written proposals; |
|
(2) evaluate any competing proposals submitted; and |
|
(3) make a formal determination as to whether a |
|
competing proposal is more advantageous to the institution or |
|
district than the unsolicited proposal. |
|
(c) A notice under Subsection (b) must include: |
|
(1) the terms of sale and the matters to be addressed |
|
by concurrent agreements required under Section 55.502 that are |
|
contained in the unsolicited proposal; and |
|
(2) the time and date by which, and place where, the |
|
competing proposals must be received. |
|
(d) A notice under Subsection (b) must be published in the |
|
manner required by Section 55.503(b) for a notice under Section |
|
55.503(a)(3). |
|
Sec. 55.505. PURCHASE BY REAL ESTATE INVESTMENT TRUST OF |
|
FACILITIES OF MORE THAN ONE INSTITUTION OR JUNIOR COLLEGE DISTRICT. |
|
A real estate investment trust may purchase facilities from any |
|
combination of institutions of higher education and junior college |
|
districts. |
|
Sec. 55.506. MANAGEMENT OF TRUST. (a) Notwithstanding |
|
Chapter 200, Business Organizations Code, or the Texas Real Estate |
|
Investment Trust Act (Article 6138A, Vernon's Texas Civil |
|
Statutes): |
|
(1) if a real estate investment trust is established |
|
to purchase a facility of an institution of higher education or |
|
junior college district under this subchapter, the certificate of |
|
formation of the real estate investment trust must provide that: |
|
(A) the governing board of each institution of |
|
higher education or junior college district participating in the |
|
sale is entitled to appoint two members of the board to act as trust |
|
managers of the real estate investment trust for the duration of the |
|
lease required by Section 55.502(a)(1); and |
|
(B) the requirement of Paragraph (A) may not be |
|
altered by amending the certificate of formation or bylaws; and |
|
(2) if an existing real estate investment trust seeks |
|
to purchase a facility of an institution of higher education or |
|
junior college district under Section 55.504, the certificate of |
|
formation or bylaws of the real estate investment trust must be |
|
amended to provide that if the purchase is completed, the governing |
|
board of each institution of higher education or junior college |
|
district participating in the sale is entitled to appoint two |
|
members of the board to act as trust managers of the real estate |
|
investment trust for the duration of the lease required by Section |
|
55.502(a)(1). |
|
(b) Any compensation paid by a real estate investment trust |
|
to a member of a governing board of an institution of higher |
|
education or junior college district for service as a trust manager |
|
is the property of the institution or junior college district, as |
|
applicable. |
|
SECTION 2. This Act takes effect September 1, 2007. |