S.B. No. 1796

AN ACT

relating to the approval of certain construction, repair, or rehabilitation projects at public institutions of higher education in this state.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 61.058, Education Code, is amended by amending Subsection (a) and adding Subsection (c) to read as follows:

(a) 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 [$2,000,000], 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 [$2,000,000];

(B) the requirement of approval for new construction applies only to projects the total cost of which is in excess of $4,000,000 [$1,000,000];

(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 [$2,000,000];

(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 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.

(c) As necessary to ensure that the board is required to approve only substantial construction, repair, or rehabilitation projects at institutions of higher education, for all projects described by Subsection (a)(B) or (a)(C) the board by rule may increase the total cost threshold required for board approval under this section.

SECTION 2. The change in law made by this Act in amending Section 61.058, Education Code, applies only to a project for which an institution of higher education submits an initial application for approval on or after the effective date of this Act. A project for which an institution of higher education submits an initial application for approval before the effective date of this Act is covered by the law in effect when the institution submitted the initial application, and the former law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2009.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 1796 passed the Senate on April 23, 2009, by the following vote: Yeas 30, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 1796 passed the House on May 19, 2009, by the following vote: Yeas 142, Nays 3, one present not voting.

______________________________ Chief Clerk of the House

Approved:

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Date

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Governor