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A BILL TO BE ENTITLED
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AN ACT
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relating to the review, funding, and continuation of degree and |
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certificate programs at public institutions of higher education |
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based on certain performance standards. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 61.0512(d), (e), and (f), Education |
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Code, are amended to read as follows: |
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(d) The board shall [may] review the number of degrees or |
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certificates awarded through a degree or certificate program every |
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five [four] years or more frequently, at the board's discretion. |
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(e) Subject to Section 61.05123(d), the [The] board shall |
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review each degree or certificate program offered by an institution |
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of higher education at least every five [10] years after a new |
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program is established using the criteria prescribed by Subsection |
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(c). |
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(f) Except as provided by Section 61.05123(f), the [The] |
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board may not order the consolidation or elimination of any degree |
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or certificate program offered by an institution of higher |
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education but may, based on the board's review under Subsections |
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(d) and (e), recommend such action to an institution's governing |
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board. If an institution's governing board does not accept |
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recommendations to consolidate or eliminate a degree or certificate |
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program, the university system or, where a system does not exist, |
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the institution, must identify the programs recommended for |
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consolidation or elimination on the next legislative |
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appropriations request submitted by the system or institution. |
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SECTION 2. Subchapter C, Chapter 61, Education Code, is |
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amended by adding Section 61.05123 to read as follows: |
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Sec. 61.05123. PROGRAM PERFORMANCE STANDARDS. (a) In |
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reviewing a degree or certificate program under Section 61.0512(e), |
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the board shall first determine using the most recent data |
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available from the Texas Workforce Commission, institutions of |
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higher education, the federal government, and any other reliable |
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source the median student loan debt as a percentage of median annual |
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earnings for program graduates the following number of years after |
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graduation: |
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(1) for an undergraduate program, two years; |
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(2) for a master's program or equivalent, three years; |
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and |
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(3) for a doctoral program or equivalent, five years. |
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(b) In determining the median student loan debt as a |
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percentage of median annual earnings for program graduates under |
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Subsection (a), the board may not consider, to the extent |
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practicable, program graduates who enrolled in a more advanced |
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degree or certificate program not later than two years after |
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graduation. |
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(c) The board shall assign a performance rating of: |
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(1) "reward" to a program with a debt as a percentage |
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of earnings value of 75 percent or less; |
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(2) "monitor" to a program with a debt as a percentage |
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of earnings value of more than 75 percent but not more than 100 |
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percent; |
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(3) "sanction" to a program with a debt as a percentage |
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of earnings value of more than 100 percent but not more than 125 |
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percent; and |
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(4) "sunset" to a program with a debt as a percentage |
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of earnings value of more than 125 percent. |
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(d) A degree or certificate program that receives a "reward" |
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performance rating is exempt from the portion of the review under |
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Section 61.0512(e) using the criteria prescribed by Section |
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61.0512(c). |
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(e) An institution of higher education may not use for a |
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degree or certificate program that receives a "sanction" or |
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"sunset" performance rating money appropriated for formula funding |
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increases, institutional enhancements, or exceptional items for |
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the first state fiscal biennium that begins after the program |
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receives the performance rating. |
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(f) Except as provided by Subsection (g), an institution of |
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higher education that receives notice from the board that a degree |
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or certificate program offered by the institution has received a |
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"sunset" performance rating: |
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(1) may not enroll new students in the program after |
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receipt of notice; |
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(2) shall: |
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(A) permit each student enrolled in the program |
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immediately before receipt of notice to complete the program; and |
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(B) inform each student enrolled in the program |
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regarding the rating and the ramifications of that rating; and |
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(3) after each student enrolled in the program |
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immediately before receipt of the notice graduates or leaves the |
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program, shall consolidate or eliminate the program, as required by |
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the board in the notice. |
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(g) If the prohibitions and requirements for a degree or |
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certificate program under Subsection (f) would result in a course |
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necessary to fulfill an institution of higher education's core |
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curriculum under Section 61.822 no longer being offered at the |
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institution, Subsection (f) and Section 61.054 do not apply to the |
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program to the extent necessary for the institution to offer that |
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course. If this subsection applies to more than one program at the |
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institution with respect to the same course, the board shall select |
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one of those programs to be exempt under this subsection. |
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(h) The board shall adopt rules necessary to implement this |
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section. |
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SECTION 3. Section 61.054, Education Code, is amended to |
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read as follows: |
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Sec. 61.054. EXPENDITURES FOR PROGRAMS DISAPPROVED BY |
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BOARD. No funds appropriated to any institution of higher |
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education may be expended for any program that [which] has been |
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disapproved by the board under this subchapter or, subject to |
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Section 61.05123(g), received a "sunset" performance rating under |
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Section 61.05123, unless the program is subsequently specifically |
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approved by the legislature. |
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SECTION 4. This Act takes effect September 1, 2025. |