SRC-ARR S.B. 1601 76(R) BILL ANALYSIS Senate Research Center S.B. 1601 76R5869 CAG-DBy: Shapiro Higher Education 4/16/1999 As Filed DIGEST According to the Texas Higher Education Coordinating Board (board) study in 1985, an estimated 30 percent of students entering college could not read, write, or compute well enough to perform effectively in college, and consequently, some of those students were dropping out. In 1987, the legislature created the Texas Academic Skills Program (TASP) as an early assessment and academic support program for all students entering public higher education institutions in the state. As part of the TASP statute, Texas colleges and universities must offer remedial classes for students who do not pass one or more sections of the test. Remedial education is not producing the desired outcomes because colleges have no incentives to improve the programs based on current funding methods. S.B. 1601 would require the board to allocate all general revenue appropriations for remedial education to higher education institutions using a performance-based funding approach. PURPOSE As proposed, S.B. 1601 sets forth the operation of and the method for funding developmental education programs provided by institutions of higher education. RULEMAKING AUTHORITY Rulemaking authority is granted to the Texas Higher Education Coordinating Board in SECTION 1 (Section 51.3062(b), Chapter 51F, Education Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 51F, Education Code, by adding Sections 51.3062 and 51.3063, as follows: Sec. 51.3062. REGULATION OF DEVELOPMENTAL EDUCATION PROGRAMS. Defines "board" and "institution of higher education." Requires the Texas Higher Education Coordinating Board (board ) to adopt rules that ensure the program quality and effectiveness of developmental education programs offered by an institution of higher education under Section 51.306. Sets forth requirements for the rules. Requires the board to regularly evaluate the rules to ensure that effective developmental education programs are being provided by an institution and that an institution's programs reflect any effective educational strategy of developmental education best practices identified by the board. Requires the board to report annually to the legislature and the comptroller information relating to the effectiveness of developmental education programs, including the number of students at each institution who complete a developmental education program under Section 51.306. Sec. 51.3063. FUNDING FORMULAS FOR DEVELOPMENTAL EDUCATION PROGRAMS. Defines "board" and "institution of higher education." Requires the board in the same manner as the board develops and proposes formulas under Section 61.059, to develop formulas recommending institutional funding for developmental education programs described in Section 51.306(f). Sets forth required provisions for the board in developing a formula under this section. SECTION 2. Requires the Texas Higher Education Coordinating Board to adopt rules and design any funding formula, provided by this Act, not later than March 1, 2000, and submit the final report as added by this Act, not later than February 1, 2000. SECTION 3. Emergency clause. Effective date: upon passage.