Amend CSSB 286 (house committee report) by adding the following appropriately numbered SECTION to the bill and by renumbering existing SECTIONS of the bill as follows: SECTION _____. (a) The purpose of this section is to provide for assessment of the readiness of entering college students to: (1) enroll in freshman-level academic coursework; and (2) by providing advising and educational support necessary for success in college, assist students who are not yet ready to enroll in that coursework. (b) Subchapter F, Chapter 51, Education Code, is amended by adding Section 51.3062 to read as follows: Sec. 51.3062. SUCCESS INITIATIVE. (a) The definitions provided by Section 61.003 apply to this section. (b) An institution of higher education shall assess the academic skills of each entering undergraduate student to determine the student's readiness to enroll in freshman-level academic coursework. An institution may not use the assessment or the results of the assessment as a condition of admission to the institution. (c) The board shall designate an instrument for use by institutions of higher education in assessing students under this section. (d) If practical and feasible, not later than September 1, 2005, the board shall designate the exit-level assessment instrument required under Section 39.023 as the primary assessment instrument under this section. This subsection expires September 1, 2006. (e) As the board considers necessary, the board may designate additional assessment instruments for use by institutions of higher education under this section. (f) An assessment instrument designated by the board for use under this section must be diagnostic in nature and designed to assess a student's readiness to perform freshman-level academic coursework. The board shall prescribe standards for the assessment instrument or instruments that reflect that student readiness. An institution of higher education may adopt more stringent assessment standards with respect to student readiness. (g) Each institution of higher education shall establish a program to advise students regarding coursework and other means by which students can develop the academic skills required to successfully complete college-level work. (h) If a student fails to meet the assessment standards described by Subsection (f), the institution of higher education shall work with the student to develop a plan to assist the student in becoming ready to perform freshman-level academic coursework. The plan must be designed on an individual basis to provide the best opportunity for each student to attain that readiness. (i) The institution of higher education may refer a student to developmental coursework as considered necessary by the institution to address a student's deficiencies in the student's readiness to perform freshman-level academic coursework, except that the institution may not require enrollment in developmental coursework with respect to a student previously determined by any institution of higher education to have met college-readiness standards. (j) A student may retake an assessment instrument at any time to determine readiness to perform freshman-level academic coursework. (k) An institution of higher education shall determine when a student is ready to perform freshman-level academic coursework. The determination may include requiring a student to retake an assessment instrument or other means of evaluating student readiness. The institution must make its determination on an individual basis according to the needs of the student. (1) The legislature shall appropriate money for approved non-degree-credit developmental courses, except that legislative appropriations may not be used for developmental coursework taken by a student in excess of: (1) 18 semester credit hours, for a general academic teaching institution; and (2) 27 semester credit hours, for a public junior college, public technical institute, or public state college. (m) The board may develop formulas to supplement the funding of developmental academic programs by institutions of higher education, including formulas for supplementing the funding of non-course-based programs. The board may develop a performance funding formula by which institutions may receive additional funding for each student who completes the Success Initiative established under this section and then successfully completes college coursework. The legislature may appropriate the money required to provide the additional funding under those formulas. (n) Each institution of higher education shall report annually to the board on the success of its students and the effectiveness of its Success Initiative. (o) The board shall evaluate the effectiveness of the Success Initiative on a statewide basis and with respect to each institution of higher education. (p) A student who has achieved a score set by the board on the Scholastic Assessment Test (SAT) or the American College Test (ACT) is exempt from the requirements of this section. An exemption under this subsection is effective for the five-year period following the date a student takes the test and achieves the standard set by the board. (q) A student who has achieved a score set by the board on an exit-level assessment instrument required under Section 39.023 is exempt from the requirements of this section. The exemption is effective for the three-year period following the date a student takes the assessment instrument and achieves the standard set by the board. This subsection does not apply during any period for which the board designates the exit-level assessment instrument required under Section 39.023 as the primary assessment instrument under this section, except that the three-year period described by this subsection remains in effect for students who qualify for an exemption under this section before that period. (r) This section does not apply to: (1) a student who has graduated with an associate or baccalaureate degree from an institution of higher education; (2) a student who transfers to an institution of higher education from a private or independent institution of higher education or an accredited out-of-state institution of higher education and who has satisfactorily completed college-level coursework; (3) a student who is enrolled in a certificate program of one year or less at a public junior college, a public technical institute, or a public state college; or (4) a student who is serving on active duty as a member of the Armed Forces of the United States. (s) An institution of higher education may exempt a non-degree-seeking or non-certificate-seeking student from the requirements of this section. (c) Sections 51.306 and 51.3061, Education Code, are repealed. (d) The Texas Higher Education Coordinating Board shall adopt rules for the administration of Section 51.3062, Education Code, as added by this Act, as soon as practicable after this Act takes effect. For that purpose, the board may adopt the initial rules in the manner provided by law for emergency rules.