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A BILL TO BE ENTITLED
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AN ACT
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relating to performance incentive funding for institutions of |
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higher education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 61, Education Code, is amended by adding |
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Subchapter EE to read as follows: |
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SUBCHAPTER EE. PERFORMANCE INCENTIVE FUNDING |
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Sec. 61.9801. PERFORMANCE INCENTIVE FUNDING FOR CERTAIN |
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GENERAL ACADEMIC TEACHING INSTITUTIONS. (a) This section applies |
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only to general academic teaching institutions other than public |
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state colleges. |
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(b) In this section: |
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(1) "Advanced degree" means a graduate or professional |
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degree for which a baccalaureate degree is usually required as a |
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prerequisite to admission into the degree program. |
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(2) "At-risk student" means a student of an |
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institution to which this section applies: |
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(A) whose score on the Scholastic Assessment Test |
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or the American College Test is less than the national mean score of |
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students' scores on that test; |
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(B) who has been awarded a grant under the |
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federal Pell Grant program; |
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(C) who was 20 years of age or older but younger |
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than 60 years of age on the date the student initially enrolled in |
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the institution; |
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(D) who initially enrolled in the institution for |
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less than 12 semester credit hours during a fall or spring semester; |
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(E) who did not receive a high school diploma but |
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received a high school equivalency certificate; |
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(F) who may not be claimed by any other person as |
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a dependent for federal income tax purposes but may claim at least |
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one other person as a dependent for federal income tax purposes; or |
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(G) who is a single parent. |
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(3) "Critical field" means a field of study designated |
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as a critical field under Subsection (c). |
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(c) Except as otherwise provided under Subdivision (2), the |
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fields of engineering, computer science, mathematics, physical |
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science, allied health, nursing, and teaching certification in the |
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field of science or mathematics are critical fields. Beginning |
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September 1, 2010, the board, based on the board's determination of |
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those fields of study in which the support and development of |
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postsecondary education programs at the bachelor's degree or |
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advanced degree level are most critically necessary for serving the |
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needs of this state, by rule may: |
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(1) designate as a critical field a field of study that |
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is not currently designated by this subsection or by the board as a |
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critical field; or |
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(2) remove a field of study from the list of fields |
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currently designated by this subsection or by the board as critical |
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fields. |
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(d) Except as otherwise provided by rules adopted under |
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Section 91.9806, for each state fiscal year, the board shall |
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distribute any performance incentive funds appropriated by the |
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legislature for the purposes of this section, and any other funds |
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made available for the purposes of this section, to institutions to |
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which this section applies in proportion to the number of points |
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assigned to each institution under the tables prescribed by |
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Subsections (f) and (g). |
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(e) A number of points is assigned in accordance with |
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Subsections (f) and (g) only on the basis of a degree awarded during |
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the state fiscal year preceding the year for which the distribution |
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of funds under this section is made. Points may not be assigned for |
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any degree awarded to an international student. |
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(f) A number of points is assigned for a bachelor's degree |
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awarded to a student by an institution to which this section applies |
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according to the following table: |
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Non-critical Field/Not At-Risk |
1.0 |
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Non-critical Field/At-Risk |
2.0 |
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Critical Field/Not At-Risk |
2.0 |
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Critical Field/At-Risk |
3.0 |
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(g) A number of points is assigned for an advanced degree |
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awarded to a student by an institution to which this section applies |
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based on the type of advanced degree awarded according to the |
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following table: |
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TYPE OF DEGREE AWARDED |
POINTS |
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Sec. 61.9802. PERFORMANCE INCENTIVE FUNDING FOR COMMUNITY |
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COLLEGES, PUBLIC TECHNICAL INSTITUTES, AND PUBLIC STATE COLLEGES. |
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(a) This section applies only to the following institutions of |
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higher education: |
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(1) community colleges; |
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(2) public technical institutes; and |
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(3) public state colleges. |
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(b) In this section: |
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(1) "At-risk student" means a student of an |
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institution to which this section applies: |
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(A) who graduated from high school with a |
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cumulative grade point average of less than 2.5 on the grading scale |
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established by the board by rule under Section 51.807; |
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(B) who has been awarded a grant under the |
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federal Pell Grant program; |
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(C) who was 20 years of age or older but younger |
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than 60 years of age on the date the student enrolled in the |
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institution for the first time; |
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(D) who initially enrolled in the institution for |
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less than 12 semester credit hours during a fall or spring semester; |
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(E) who did not receive a high school diploma but |
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received a high school equivalency certificate; |
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(F) who may not be claimed by any other person as |
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a dependent for federal income tax purposes but may claim at least |
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one other person as a dependent for federal income tax purposes; or |
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(G) who is a single parent. |
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(2) "Critical field" means a field of study designated |
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as a critical field under Subsection (c). |
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(c) Except as otherwise provided under Subdivision (2), the |
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fields of engineering, technology, computer science, mathematics, |
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physical science, allied health, and nursing are critical fields. |
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Beginning September 1, 2010, the board, based on the board's |
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determination of those fields of study in which the support and |
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development of postsecondary education programs at the |
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lower-division level are most critically necessary for serving the |
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needs of this state, by rule may: |
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(1) designate as a critical field a field of study that |
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is not currently designated by this subsection or by the board as a |
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critical field; or |
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(2) remove a field of study from the list of fields |
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currently designated by this subsection or by the board as critical |
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fields. |
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(d) Except as otherwise provided by rules adopted under |
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Section 61.9806, for each state fiscal year, the board shall |
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distribute any performance incentive funds appropriated by the |
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legislature for the purposes of this section, and any other funds |
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made available for the purposes of this section, to institutions to |
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which this section applies in proportion to the number of points |
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assigned to each institution under the tables prescribed by |
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Subsections (f) and (g). |
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(e) A number of points is assigned in accordance with |
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Subsections (f) and (g) only on the basis of a degree or certificate |
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awarded or a student transfer made during the state fiscal year |
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preceding the year for which the distribution of funds under this |
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section is made. Points may not be assigned for any degree or |
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certificate awarded: |
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(1) in a program on a topic or at a level that the board |
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determines does not merit funding under this section; or |
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(2) to an international student. |
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(f) A number of points is assigned for an associate degree |
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or certificate awarded to a student by an institution to which this |
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section applies according to the following tables: |
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TABLE 1 |
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Associate Degree/Non-critical Field/Not At-Risk |
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2.0 |
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Associate Degree/Non-critical Field/At-Risk |
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4.0 |
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Associate Degree/Critical Field/Not At-Risk |
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4.0 |
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Associate Degree/Critical Field/At-Risk |
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6.0 |
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TABLE 2 |
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Certificate Program/Non-critical Field/Not At-Risk |
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1.0 |
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Certificate Program/Non-critical Field/At-Risk |
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2.0 |
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Certificate Program/Critical Field/Not At-Risk |
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2.0 |
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Certificate Program/Critical Field/At-Risk |
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3.0 |
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(g) A number of points is assigned to an institution to |
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which this section applies for each student of the institution who, |
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in the preceding state fiscal year, completed at least 30 semester |
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credit hours at the institution with a grade point average of at |
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least 2.5 on the grading scale established by the board under |
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Section 51.807 before transferring to a general academic teaching |
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institution other than a public state college and determined |
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according to the following table: |
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POINTS PER TRANSFER STUDENT |
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Sec. 61.9803. PERFORMANCE INCENTIVE FUNDING FOR MEDICAL AND |
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DENTAL UNITS. (a) This section applies only to medical and dental |
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units. |
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(b) Except as otherwise provided by rules adopted under |
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Section 61.9806, for each state fiscal year, the board shall |
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distribute any performance incentive funds appropriated by the |
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legislature for the purposes of this section, and any other funds |
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made available for the purposes of this section, to institutions to |
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which this section applies in proportion to the number of points |
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assigned to each institution under the table prescribed by |
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Subsection (d). |
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(c) A number of points is assigned in accordance with |
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Subsection (d) only on the basis of a degree awarded or a first |
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residency completed during the state fiscal year preceding the year |
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for which the distribution of funds under this section is made. |
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Points may not be assigned for any degree awarded to an |
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international student. |
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(d) A number of points is assigned for a degree awarded to a |
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student by an institution to which this section applies based on the |
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type of degree awarded or a first residency completed according to |
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the following table: |
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TYPE OF DEGREE |
POINTS PER DEGREE |
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First Residency Completed |
1.0 |
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Sec. 61.9804. RULES. The board shall adopt rules for the |
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administration of this subchapter. |
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Sec. 61.9805. REPORT BY INSTITUTIONS TO BOARD. Not later |
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than September 1 of each year, each institution of higher education |
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shall compile and submit to the board, in accordance with rules |
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adopted by the board, a report that includes the following data |
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regarding each student who was awarded a degree or certificate by |
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the institution, completed a first residency with the institution, |
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or transferred from the institution to a general academic teaching |
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institution other than a public state college, during the preceding |
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state fiscal year: |
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(1) the student's scores on the Scholastic Assessment |
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Test and American College Test; |
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(2) the student's cumulative high school grade point |
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average; |
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(3) the number of semester credit hours completed by |
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the student at the institution; |
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(4) the student's grade point average on all |
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coursework completed at the institution using the grading scale |
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established by the board by rule under Section 51.807; |
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(5) whether the student received a grant under the |
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federal Pell Grant program; |
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(6) the age of the student on the date the student |
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initially enrolled in the institution; |
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(7) whether the student initially enrolled in the |
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institution for less than 12 semester credit hours during a fall or |
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spring semester; |
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(8) whether the student is an international student; |
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(9) whether any degree or certificate awarded to the |
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student by the institution is in a field designated as a critical |
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field under Section 61.9801 or Section 61.9802; |
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(10) whether the student did not receive a high school |
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diploma but received a high school equivalency certificate; |
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(11) whether the student may not be claimed by any |
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other person as a dependent for federal income tax purposes but may |
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claim at least one other person as a dependent for federal income |
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tax purposes; |
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(12) whether the student is a single parent; and |
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(13) any other information required by the board. |
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Sec. 61.9806. ADJUSTMENT OF FUNDING BASED ON QUALITY OF |
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DEGREES AND CERTIFICATES AWARDED. (a) The board, in consultation |
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with institutions of higher education to which this subchapter |
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applies, by rule shall develop and adopt as an additional criteria |
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by which points are assigned under Sections 61.9801, 61.9802, and |
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61.9803, or for which the points assigned under those sections are |
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adjusted, a methodology designed to assess the quality of the |
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degrees and certificates for which points are assigned under this |
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subchapter. |
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(b) The methodology adopted under this section must: |
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(1) be designed to promote the maintenance or |
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enhancement of the quality of degrees and certificates awarded by |
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the institutions; and |
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(2) include minimum standards of quality that a degree |
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or certificate awarded by an institution must satisfy in order to |
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qualify for an assignment of points under this subchapter. |
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(c) The minimum standards required under Subsection (b)(2) |
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may be established per graduate, per department, per institution, |
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or based on any other unit of measurement the board considers |
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appropriate. |
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(d) The board may consider for purposes of this section the |
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following indicators to measure the quality of degrees or |
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certificates: |
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(1) end-of-degree and end-of-certificate |
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examinations, except that the board may not require a student's |
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performance on such an examination authorized by the board to be |
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used for purposes of this section to be used to determine the |
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student's eligibility for graduation; |
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(2) a peer review process; |
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(3) accreditation status; and |
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(4) any other factor the board considers appropriate. |
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(e) Not later than January 31 of each even-numbered year, |
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the board shall adopt the methodology required by this section |
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applicable to the distribution of funds under this subchapter in |
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the state fiscal biennium that begins in the following odd-numbered |
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year. Upon adoption, the board shall submit a copy of the |
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methodology to the governor, lieutenant governor, speaker of the |
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house of representatives, chair of the senate finance committee, |
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chair of the house committee on appropriations, and members of each |
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legislative standing committee or subcommittee with higher |
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education oversight responsibility. |
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(f) The board shall adopt rules for the administration of |
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this section. |
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Sec. 61.9807. REPORT TO BOARD AND LEGISLATURE BY EDUCATION |
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RESEARCH CENTER REGARDING EVALUATION OF POINT ASSIGNMENTS. Each |
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state fiscal biennium, the board shall provide for the evaluation |
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by an education research center established under Section 1.005 of |
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the points assigned under Sections 61.9801, 61.9802, and 61.9803 or |
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under rules adopted by the board under Section 61.9806. Not later |
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than November 1 of each even-numbered year, the education research |
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center shall submit to the board and the legislature a written |
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report regarding the center's evaluation under this section, |
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including any recommendations for changes to the points assigned |
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under those sections. |
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SECTION 2. Section 61.0591, Education Code, is repealed. |
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SECTION 3. The Texas Higher Education Coordinating Board |
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shall adopt rules relating to the administration of Subchapter EE, |
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Chapter 61, Education Code, as added by this Act, as soon as |
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practicable after the effective date of this Act. |
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SECTION 4. This Act takes effect September 1, 2008. |