MMA C.S.H.B. 2652 75(R)BILL ANALYSIS HIGHER EDUCATION C.S.H.B. 2652 By: Rangel 4-19-97 Committee Report (Substituted) BACKGROUND Most public universities in Texas require that at least 30 to 36 semester credit hours (SCH) be taken at the institution, and that the last 24 SCH (of the senior year) be taken at the institution to be eligible for a degree from that institution. This means that a student who has accumulated a large number of SCH, but who has not been in residence at the institution for the final 24 SCH, would not be eligible for a degree from that institution. Texas community colleges require between 15 to 30 SCH in residence for a student to receive a degree. There are many students who have accumulated a large number of SCH from accredited institutions, yet for various reasons have been unable to receive a degree because they could not meet the graduation residency requirements. With the passage of this bill, Lone Star College would offer students an opportunity to complete any necessary course work from an institution of their choice (or multiple institutions) and receive a degree. There are three other similar, publicly created, colleges in the country: Regent's College in New York, Thomas Edison College in New Jersey, and Charter Oak College in Connecticut. The Lone Star College would differ from these institutions in three ways: (1) would not offer any courses; (2) no credit would be given for life or work experience; and (3) no testing program for credit would be conducted. PURPOSE C.S.H.B. 2652 would allow the Texas Higher Education Coordinating Board to establish the Lone Star College to offer students a non-traditional means by which they could earn a college degree that is equivalent in quality and rigor to a degree earned at a regionally accredited institution of higher education. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant any additional rulemaking authority to the Texas Higher Education Coordinating Board in SECTION 1 (Sec. 61.910). SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 61, Education Code, by adding Subchapter R, to read as follows: SUBCHAPTER R. LONE STAR COLLEGE Sec. 61.901. ROLE AND PURPOSE. States that the purpose of the Loan Star College is to grant degrees to students who accumulate college credits from one or more institutions, but for some reason, are unable to participate in a traditional university program and may be unable to meet the graduation residency requirements at an institution to obtain a degree. Sec. 61.902. DEFINITIONS. Defines "board of regents," "college," "coordinating board," "designated institution," and "director." Sec. 61.903. ESTABLISHMENT. Authorizes the Texas Higher Education Coordinating Board (THECB) to establish the Lone Star College (college) as a degree-granting institution of higher education. Sec. 61.904. ADMINISTRATION. (a) If THECB establishes the college, it is directed to: (1) designate the governing board of an institution to govern the college; and (2) designate an institution under the designated governing board to operate the college. (b) Requires that the designations under Subsection (a) be approved by the selected governing board. (c) Requires that the president of the designated institution manage the college in accordance with the rules/regulations of the board of regents. Permits the president to employ a director and other staff to administer the college. Sec. 61.905. DEGREES. Authorizes the college, with prior approval of THECB, to offer the following degrees: (1) associate of arts; (2) associate of science; (3) bachelor of arts; (4) bachelor of science; and (5) bachelor of general studies. Sec. 61.906. ADMISSIONS; COURSE WORK. (a) Establishes eligibility for admission to the college if a student: (1) has a high school diploma or its equivalent; (2) has no less than 30 SCH from one or more recognized, regionally accredited public or independent institutions of higher education; (b) Authorizes the college to grant credit toward a degree for a course taken at another institution only if the student was enrolled for instruction and successfully fulfilled the course requirements. Authorizes the director to establish a minimum grade that a student must have received in a course in order to receive credit for the course toward a degree at the college. (c) Mandates the director to: (1) establish a degree plan; (2) determine the courses that the student has completed at other institutions for which credit may be granted toward the student's degree plan; and (3) determine the additional courses the student must complete to obtain a degree. (d) Authorizes a student to complete the required courses at any regionally accredited institution. Requires that in order to receive credit, the student must successfully complete the course with the minimum grade established by the director. Sec. 61.907. PROHIBITIONS ON COLLEGE. Prohibits the college from: (1) offering courses; (2) offering, accepting, granting credit toward a degree for activities not performed in a collegiate setting; or (3) offering, accepting, granting credit toward a degree for: (A) physical education courses; (B) orientation, study skills or developmental/remedial education courses; (C) pre-college-level courses; or (D) other courses determined by board of regents. Sec. 61.908. PROHIBITIONS ON BOARD OF REGENTS. (a) Prohibits the board of regents from: (1) acquiring land or real property for the college; (2) using for the college; (A) funds appropriated to an institution under Section 17, Article VII, Texas Constitution, and allocated under Chapter 62; or (B) funds appropriated to an institution under Section 18, Article VII, Texas Constitution; or (3) incurring debt on behalf of the college. (b) Prohibits the board from establishing a residency requirement for students. Sec. 61.909. ACCREDITATION. Requires the board to seek accreditation for the college not later than August 31, 2003, or else the college will be abolished. Sec. 61.910. RULES. Requires THECB to adopt rules necessary for the administration of this chapter and for the operation, control, and management of the college. Sec. 61.911. REPORT TO COORDINATING BOARD; AUDIT. (a) Mandates the designated institution to report the performance of the college to THECB. The report shall include: (1) detailed financial information relating to the college; (2) the number of students enrolled in and graduated from the college; and (3) other information required by the THECB. (b) Requires the state auditor to audit the books and records of the college at the request of the THECB. Sec. 61.912. FUNDING. (a) Mandates that the board charge a fee from a student registered at the college in an amount sufficient to cover the costs of administration of the college, including the costs of evaluating the student's transcript. (b) Authorizes the THECB to provide administrative support to the institution. (c) Authorizes the board to accept gifts, grants, and donations for the use and benefit to the college. SECTION 2. Effective date: September 1, 1997. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2652 adds language to Sections 61.903 and 61.904 to make the bill permissive. Also, adds Sec. 61.912, which would require the board to collect an administrative fee, allow THECB to provide administrative support and allow the board to accept gifts, grants, and donations for the use and benefit of the college.