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.