By Ellis S.B. No. 1039 77R4413 QS-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the provision of certain higher education coursework 1-3 through an online college. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 51, Education Code, is amended by adding 1-6 Subchapter V to read as follows: 1-7 SUBCHAPTER V. CORE CURRICULUM ONLINE 1-8 Sec. 51.821. DEFINITIONS. In this subchapter: 1-9 (1) "Administrator" means the higher education entity 1-10 selected by the Telecommunications Infrastructure Fund Board under 1-11 Section 51.825. 1-12 (2) "Coordinating board" means the Texas Higher 1-13 Education Coordinating Board. 1-14 (3) "Distance learning" means an instruction, 1-15 learning, or training resource, including video, data, voice, or 1-16 electronic information, that is: 1-17 (A) used by an institution of higher education 1-18 predominantly for instruction, learning, or training; and 1-19 (B) transmitted from a site to one or more other 1-20 sites by a telecommunications service. 1-21 (4) "Institution of higher education" has the meaning 1-22 assigned by Section 61.003. 1-23 (5) "Online college" means the Core Curriculum Online. 1-24 Sec. 51.822. CORE CURRICULUM ONLINE. (a) The administrator 2-1 shall develop and operate an online college known as the Core 2-2 Curriculum Online. 2-3 (b) The administrator shall provide all courses in the 2-4 state's core curriculum through the online college using the 2-5 Internet and other distance learning techniques. 2-6 (c) The administrator may provide other courses through the 2-7 online college on behalf of an institution of higher education. 2-8 (d) From any revenue available to implement this subchapter, 2-9 the administrator may award grants to institutions of higher 2-10 education to fund the development of core curriculum courses to be 2-11 offered through the online college. 2-12 (e) The administrator may not award degrees through the 2-13 online college. 2-14 Sec. 51.823. ONLINE COURSES. (a) An institution of higher 2-15 education may develop and offer a course through the online 2-16 college. 2-17 (b) An institution of higher education that otherwise offers 2-18 a course online is not required to make that course available 2-19 through the online college. 2-20 (c) An institution of higher education shall accept the 2-21 transfer of credit for each course successfully completed by the 2-22 transferring student in the core curriculum offered through the 2-23 online college. The institution is not required to accept the 2-24 transfer of credit for any other course offered through the online 2-25 college. 2-26 Sec. 51.824. STUDENT ENROLLMENT. A student may enroll in a 2-27 course provided through the online college only if the student is 3-1 enrolled in an institution of higher education. 3-2 Sec. 51.825. SELECTION OF ADMINISTRATOR. (a) Based on a 3-3 recommendation by the coordinating board, the Telecommunications 3-4 Infrastructure Fund Board shall select an administrator to develop 3-5 and operate the online college. If the Telecommunications 3-6 Infrastructure Fund Board makes a selection inconsistent with the 3-7 recommendation of the coordinating board, the Telecommunications 3-8 Infrastructure Fund Board shall provide to the coordinating board a 3-9 written statement explaining in detail the reasons for its 3-10 selection. 3-11 (b) The coordinating board shall solicit applications to 3-12 serve as administrator, including proposals for the online college, 3-13 from any institution of higher education, university system, or 3-14 consortium of institutions of higher education or university 3-15 systems. 3-16 (c) The coordinating board shall evaluate the applications 3-17 and make a recommendation based on the following factors: 3-18 (1) the applicant's ability to develop and operate a 3-19 distance learning program efficiently and cost-effectively; 3-20 (2) the applicant's commitment to the goal of greater 3-21 access to higher education through use of the Internet and other 3-22 distance learning techniques; and 3-23 (3) any other factor that the coordinating board 3-24 considers relevant. 3-25 Sec. 51.826. REVENUE ALLOCATION. (a) For core curriculum 3-26 courses provided through the online college, the coordinating board 3-27 shall develop a mechanism for setting tuition rates that recognizes 4-1 the different amounts of tuition charged by participating 4-2 institutions of higher education to students enrolled at those 4-3 institutions. 4-4 (b) Revenue, including tuition, generated by the online 4-5 college shall be divided between the online college and the 4-6 institutions of higher education that offer courses through the 4-7 online college. The coordinating board shall determine the 4-8 relative proportions of revenue to allocate to the online college 4-9 and the institutions. 4-10 (c) An institution of higher education may receive formula 4-11 funding based on the number of students enrolled in any course 4-12 offered by the institution through the online college. 4-13 (d) The coordinating board shall conduct a study evaluating 4-14 the actual costs of providing online instruction in this state and 4-15 the adequacy of a formula funding mechanism regarding that 4-16 instruction. The coordinating board shall report the results of 4-17 the study to the legislature not later than September 1, 2004, and 4-18 shall include in the report any recommendations for improving the 4-19 funding of online instruction in this state. This subsection 4-20 expires January 1, 2005. 4-21 SECTION 2. Section 61.059, Education Code, is amended by 4-22 adding Subsection (n) to read as follows: 4-23 (n) The board shall include in a formula under this section 4-24 funding based on the number of students enrolled in a course 4-25 offered by an institution of higher education through the online 4-26 college established under Subchapter V, Chapter 51, and shall make 4-27 its formula funding recommendation for that institution 5-1 accordingly. 5-2 SECTION 3. (a) The administrator selected under Subchapter 5-3 V, Chapter 51, Education Code, as added by this Act, shall provide 5-4 core curriculum courses through the online college described by 5-5 that subchapter beginning with the 2002-2003 academic year. 5-6 (b) For the state fiscal biennium beginning September 1, 5-7 2001, the legislature may appropriate money from the 5-8 telecommunications infrastructure fund to implement Subchapter V, 5-9 Chapter 51, Education Code, as added by this Act. The legislature 5-10 may not appropriate money for that purpose for any period occurring 5-11 after the state fiscal biennium beginning September 1, 2001. 5-12 SECTION 4. This Act takes effect immediately if it receives 5-13 a vote of two-thirds of all the members elected to each house, as 5-14 provided by Section 39, Article III, Texas Constitution. If this 5-15 Act does not receive the vote necessary for immediate effect, this 5-16 Act takes effect September 1, 2001.