80R1901 KSD-D
 
  By: Shapiro S.B. No. 1029
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to performance incentive funding for institutions of
higher education.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Chapter 61, Education Code, is amended by adding
Subchapter EE to read as follows:
SUBCHAPTER EE.  PERFORMANCE INCENTIVE FUNDING
       Sec. 61.9801.  PERFORMANCE INCENTIVE FUNDING FOR CERTAIN
GENERAL ACADEMIC TEACHING INSTITUTIONS. (a) This section applies
only to general academic teaching institutions other than public
state colleges.
       (b)  In this section:
             (1)  "Advanced degree" means a graduate or professional
degree for which a baccalaureate degree is usually required as a
prerequisite to admission into the degree program.
             (2)  "At-risk student" means a student of an
institution to which this section applies:
                   (A)  whose score on the Scholastic Assessment Test
or the American College Test is less than the national mean score of
students' scores on that test;
                   (B)  who has been awarded a grant under the
federal Pell Grant program;
                   (C)  who was 20 years of age or older but younger
than 60 years of age on the date the student initially enrolled in
the institution;
                   (D)  who initially enrolled in the institution for
less than 12 semester credit hours during a fall or spring semester;
                   (E)  who did not receive a high school diploma but
received a high school equivalency certificate;
                   (F)  who may not be claimed by any other person as
a dependent for federal income tax purposes but may claim at least
one other person as a dependent for federal income tax purposes; or
                   (G)  who is a single parent.
             (3)  "Critical field" means a field of study designated
as a critical field under Subsection (c).
             (4)  "Major field test":
                   (A)  means an examination or other assessment that
is:
                         (i)  designed to measure the basic knowledge
and understanding achieved by a student in a major field of study;
and
                         (ii)  approved by the board for purposes of
this section; and
                   (B)  includes any examination required for the
issuance of a professional or occupational license directly related
to the student's field of study.
       (c)  Except as otherwise provided under Subdivision (2), the
fields of engineering, computer science, mathematics, physical
science, allied health, nursing, and teaching certification in the
field of science or mathematics are critical fields. Beginning
September 1, 2010, the board, based on the board's determination of
those fields of study in which the support and development of
postsecondary education programs at the bachelor's degree or
advanced degree level are most critically necessary for serving the
needs of this state, by rule may:
             (1)  designate as a critical field a field of study that
is not currently designated by this subsection or by the board as a
critical field; or
             (2)  remove a field of study from the list of fields
currently designated by this subsection or by the board as critical
fields.
       (d)  For purposes of this section, a student's assessment
score percentage on a major field test is computed by dividing a
student's score on the test by:
             (1)  the national average of students' scores on that
test; or
             (2)  the statewide average of students' scores on that
test if the test is not administered nationally.
       (e)  For each state fiscal year, the board shall distribute
any performance incentive funds appropriated by the legislature for
the purposes of this section, and any other funds made available for
the purposes of this section, to institutions to which this section
applies in proportion to the number of points assigned to each
institution under the tables prescribed by Subsections (g) and (h).
       (f)  A number of points is assigned in accordance with
Subsections (g) and (h) only on the basis of a degree awarded or a
performance on a major field test taken during the state fiscal year
preceding the year for which the distribution of funds under this
section is made. Points may not be assigned for any degree awarded
to an international student.
       (g)  A number of points is assigned for a bachelor's degree
awarded to a student by an institution to which this section applies
based on the student's performance on a major field assessment and
determined according to the following table:
ASSESSMENT NON-CRITICAL FIELD/NOT AT-RISK NON-CRITICAL FIELD/ AT-RISK CRITICAL FIELD/NOT AT-RISK CRITICAL FIELD/ AT-RISK
SCORE NON-CRITICAL FIELD/NOT AT-RISK NON-CRITICAL FIELD/ AT-RISK CRITICAL FIELD/NOT AT-RISK CRITICAL FIELD/ AT-RISK
PERCENTAGE NON-CRITICAL FIELD/NOT AT-RISK NON-CRITICAL FIELD/ AT-RISK CRITICAL FIELD/NOT AT-RISK CRITICAL FIELD/ AT-RISK
Below 70% 0 0 0 0
70%-79% 1.0 2.0 2.0 3.0
80%-89% 1.1 2.1 2.1 3.1
90%-99% 1.2 2.2 2.2 3.2
100%-109% 1.3 2.3 2.3 3.3
110%-119% 1.4 2.4 2.4 3.4
120%-129% 1.5 2.5 2.5 3.5
Above 129% 1.6 2.6 2.6 3.6
       (h)  A number of points is assigned for an advanced degree
awarded to a student by an institution to which this section applies
based on the type of advanced degree awarded and determined
according to the following table:
TYPE OF DEGREE AWARDED POINTS
Master's 1.0
Doctoral 1.0
Professional 1.0
       Sec. 61.9802.  PERFORMANCE INCENTIVE FUNDING FOR COMMUNITY
COLLEGES, PUBLIC TECHNICAL INSTITUTES, AND PUBLIC STATE COLLEGES.  
(a) This section applies only to the following institutions of
higher education:
             (1)  community colleges;
             (2)  public state technical institutes; and
             (3)  public state colleges.
       (b)  In this section:
             (1)  "At-risk student" means a student of an
institution to which this section applies:
                   (A)  who graduated from high school with a
cumulative grade point average of less than 2.5 on the grading scale
established by the board by rule under Section 51.807;
                   (B)  who has been awarded a grant under the
federal Pell Grant program;
                   (C)  who was 20 years of age or older but younger
than 60 years of age on the date the student enrolled in the
institution for the first time;
                   (D)  who initially enrolled in the institution for
less than 12 semester credit hours during a fall or spring semester;
                   (E)  who did not receive a high school diploma but
received a high school equivalency certificate;
                   (F)  who may not be claimed by any other person as
a dependent for federal income tax purposes but may claim at least
one other person as a dependent for federal income tax purposes; or
                   (G)  who is a single parent.
             (2)  "Critical field" means a field of study designated
as a critical field under Subsection (c).
             (3)  "General education test" means a test designated
as a general education test under Subsection (d).
       (c)  Except as otherwise provided under Subdivision (2), the
fields of engineering, technology, computer science, mathematics,
physical science, allied health, and nursing are critical fields.
Beginning September 1, 2010, the board, based on the board's
determination of those fields of study in which the support and
development of postsecondary education programs at the
lower-division level are most critically necessary for serving the
needs of this state, by rule may:
             (1)  designate as a critical field a field of study that
is not currently designated by this subsection or by the board as a
critical field; or
             (2)  remove a field of study from the list of fields
currently designated by this subsection or by the board as critical
fields.
       (d)  Except as otherwise provided under Subdivision (2), the
Measure of Academic Proficiency and Progress developed by the
Education Testing Network Service, the California Critical
Thinking and Skills Test, the College Basic Academic Subjects
Examination developed by the Assessment Resource Center of the
University of Missouri-Columbia, the Collegiate Assessment of
Academic Proficiency, WorkKeys, and an examination required for the
issuance of a professional or occupational license are general
education tests. The board, based on the board's determination of
those tests that adequately reflect a lower-division student's
general education knowledge and skills, by rule may:
             (1)  designate as a general education test a test or
other assessment instrument that is not currently designated by
this subsection or by the board as a general education test; or
             (2)  after September 1, 2010, remove a test or other
assessment instrument from the list of tests and assessment
instruments currently designated by this subsection or by the board
as general education tests.
       (e)  For purposes of this section, a student's assessment
score percentage on a general education test is computed by
dividing a student's score on the test by:
             (1)  the national average of students' scores on that
test; or
             (2)  the statewide average of students' scores on that
test if the test is not administered nationally.
       (f)  For each state fiscal year, the board shall distribute
any performance incentive funds appropriated by the legislature for
the purposes of this section, and any other funds made available for
the purposes of this section, to institutions to which this section
applies in proportion to the number of points assigned to each
institution under the tables prescribed by Subsections (h) and (i).
       (g)  A number of points is assigned in accordance with
Subsections (h) and (i) only on the basis of a degree or certificate
awarded, a performance on a general education test taken, or a
student transfer made during the state fiscal year preceding the
year for which the distribution of funds under this section is made.
Points may not be assigned for any degree or certificate awarded:
             (1)  in a program on a topic or at a level that the board
determines does not merit funding under this section; or
             (2)  to an international student.
       (h)  A number of points is assigned for an associate's degree
or certificate awarded to a student by an institution to which this
section applies based on the student's performance on a general
education test and determined according to the following tables:
TABLE 1
ASSESSMENT CERTIFICATE PROGRAM/ NON-CRITICAL FIELD/NOT AT-RISK CERTIFICATE PROGRAM/ NON-CRITICAL FIELD/ AT-RISK CERTIFICATE PROGRAM/ CRITICAL FIELD/NOT AT-RISK CERTIFICATE PROGRAM/ CRITICAL FIELD/ AT-RISK
SCORE CERTIFICATE PROGRAM/ NON-CRITICAL FIELD/NOT AT-RISK CERTIFICATE PROGRAM/ NON-CRITICAL FIELD/ AT-RISK CERTIFICATE PROGRAM/ CRITICAL FIELD/NOT AT-RISK CERTIFICATE PROGRAM/ CRITICAL FIELD/ AT-RISK
PERCENTAGE CERTIFICATE PROGRAM/ NON-CRITICAL FIELD/NOT AT-RISK CERTIFICATE PROGRAM/ NON-CRITICAL FIELD/ AT-RISK CERTIFICATE PROGRAM/ CRITICAL FIELD/NOT AT-RISK CERTIFICATE PROGRAM/ CRITICAL FIELD/ AT-RISK
Below 70% 0 0 0 0
70%-79% 1.0 2.0 2.0 3.0
80%-89% 1.1 2.1 2.1 3.1
90%-99% 1.2 2.2 2.2 3.2
100%-109% 1.3 2.3 2.3 3.3
110%-119% 1.4 2.4 2.4 3.4
120%-129% 1.5 2.5 2.5 3.5
Above 129% 1.6 2.6 2.6 3.6
ASSESSMENT ASSOCIATE'S DEGREE/ NON-CRITICAL FIELD/NOT AT-RISK ASSOCIATE'S DEGREE/ NON-CRITICAL FIELD/ AT-RISK ASSOCIATE'S DEGREE/ CRITICAL FIELD/NOT AT-RISK ASSOCIATE'S DEGREE/ CRITICAL FIELD/ AT-RISK
SCORE ASSOCIATE'S DEGREE/ NON-CRITICAL FIELD/NOT AT-RISK ASSOCIATE'S DEGREE/ NON-CRITICAL FIELD/ AT-RISK ASSOCIATE'S DEGREE/ CRITICAL FIELD/NOT AT-RISK ASSOCIATE'S DEGREE/ CRITICAL FIELD/ AT-RISK
PERCENTAGE ASSOCIATE'S DEGREE/ NON-CRITICAL FIELD/NOT AT-RISK ASSOCIATE'S DEGREE/ NON-CRITICAL FIELD/ AT-RISK ASSOCIATE'S DEGREE/ CRITICAL FIELD/NOT AT-RISK ASSOCIATE'S DEGREE/ CRITICAL FIELD/ AT-RISK
Below 70% 0 0 0 0
70%-79% 2.0 4.0 4.0 6.0
80%-89% 2.1 4.1 4.1 6.1
90%-99% 2.2 4.2 4.2 6.2
100%-109% 2.3 4.3 4.3 6.3
110%-119% 2.4 4.4 4.4 6.4
120%-129% 2.5 4.5 4.5 6.5
Above 129% 2.6 4.6 4.6 6.6
       (i)  A number of points is assigned to an institution to
which this section applies for each student of the institution who,
in the preceding state fiscal year, completed at least 30 semester
credit hours at the institution with a grade point average of at
least 2.5 on the grading scale established by the board under
Section 51.807 before transferring to a general academic teaching
institution other than a public state college and determined
according to the following table:
POINTS PER TRANSFER STUDENT
Not At-Risk 2.0
At-Risk 4.0
       Sec. 61.9803.  PERFORMANCE INCENTIVE FUNDING FOR MEDICAL AND
DENTAL UNITS. (a) This section applies only to medical and dental
units.
       (b)  In this section, "licensing examination" means an
examination required for the issuance of a professional or
occupational license, except that in regard to an examination
required for a medical license, the term applies only to the first
two sittings by a student for any examination administered or
accepted for that purpose under Subtitle B, Title 3, Occupations
Code.
       (c)  For purposes of this section, a student's licensing
examination percentage is computed by dividing a student's score on
the examination by:
             (1)  the national average of students' scores on that
examination; or
             (2)  the statewide average of students' scores on that
examination if the examination is not administered nationally.
       (d)  For each state fiscal year, the board shall distribute
any performance incentive funds appropriated by the legislature for
the purposes of this section, and any other funds made available for
the purposes of this section, to institutions to which this section
applies in proportion to the number of points assigned to each
institution under the tables prescribed by Subsections (f) and (g).
       (e)  A number of points is assigned in accordance with
Subsections (f) and (g) only on the basis of a degree awarded, a
first-year residency completed, or a performance on a licensing
examination taken during the state fiscal year preceding the year
for which the distribution of funds under this section is made.
Points may not be assigned for any degree awarded to an
international student.
       (f)  A number of points is assigned for a bachelor's degree
in an allied health field or nursing or a professional degree
awarded to a student by an institution to which this section applies
based on the student's performance on a licensing examination and
determined according to the following table:
LICENSING ALLIED HEALTH OR NURSING BACHELOR'S DEGREE PROFESSIONAL DEGREE
EXAMINATION ALLIED HEALTH OR NURSING BACHELOR'S DEGREE PROFESSIONAL DEGREE
PERCENTAGE ALLIED HEALTH OR NURSING BACHELOR'S DEGREE PROFESSIONAL DEGREE
Below 70% 0 0
70%-79% 1.0 1.0
80%-89% 1.1 1.1
90%-99% 1.2 1.2
100%-109% 1.3 1.3
110%-119% 1.4 1.4
120%-129% 1.5 1.5
Above 129% 1.6 1.6
       (g)  A number of points is assigned for a degree awarded to a
student by an institution to which this section applies, other than
a bachelor's degree in an allied health field or nursing, based on
the type of degree awarded and determined according to the
following table:
TYPE OF DEGREE POINTS PER DEGREE
Bachelor's, other than Allied 1.0
Health or Nursing 1.0
Master's 1.0
Doctoral 1.0
First-Year Completed Residency 1.0
       Sec. 61.9804.  RULES. The board shall adopt rules for the
administration of this subchapter.
       Sec. 61.9805.  REPORT BY INSTITUTIONS TO BOARD. Not later
than September 1 of each year, each institution of higher education
shall compile and submit to the board, in accordance with rules
adopted by the board, a report that includes the following data
regarding each student who was awarded a degree or certificate by
the institution, completed a first-year residency with the
institution, or transferred from the institution to a general
academic teaching institution other than a public state college,
during the preceding state fiscal year:
             (1)  the student's scores on the Scholastic Assessment
Test and American College Test;
             (2)  the number of semester credit hours completed by
the student at the institution;
             (3)  the student's grade point average on all
coursework completed at the institution using the grading scale
established by the board by rule under Section 51.807;
             (4)  whether the student received a grant under the
federal Pell Grant program;
             (5)  the age of the student on the date the student
initially enrolled in the institution;
             (6)  whether the student initially enrolled in the
institution for less than 12 semester credit hours during a fall or
spring semester;
             (7)  whether the student is an international student;
             (8)  whether any degree awarded to the student by the
institution is in a field designated as a critical field under
Section 61.9801 or Section 61.9802;
             (9)  the student's score on any major field test, as
defined by Section 61.9801, or general education test, as defined
by Section 61.9802, taken by the student;
             (10)  the national average of students' scores on each
test described by Subdivision (9) or the statewide average of
students' scores on that test if the test is not administered
nationally; and
             (11)  any other information required by the board.
       Sec. 61.9806.  PASSING SCORE ON MAJOR FIELD TEST OR GENERAL
EDUCATION TEST NOT REQUIRED FOR GRADUATION. This subchapter does
not require any student to receive a passing score on a major field
test, as defined by Section 61.9801, or a general education test, as
defined by Section 61.9802, as a prerequisite to graduating from an
institution of higher education.
       Sec. 61.9807.  PAYMENT BY INSTITUTION OF COST OF MAJOR FIELD
TEST OR GENERAL EDUCATION TEST. An institution of higher education
that administers a major field test as defined by Section 61.9801,
or a general education test as defined by Section 61.9802, to a
student for purposes of this subchapter shall pay for the cost of
the test, unless the test is an examination required for the
issuance of a professional or occupational license.
       Sec. 61.9808.  REPORT OF GRE, GMAT, LSAT, OR MCAT SCORE TO
INSTITUTIONS BY ADMINISTERING ENTITY. (a) An entity that
administers to a person in this state a Graduate Record Examination
(GRE), the Graduate Management Admissions Test (GMAT), the Law
School Admissions Test (LSAT), or the Medical College Admission
Test (MCAT) shall report the person's score on the examination to:
             (1)  any institution of higher education in which the
person is enrolled on the date the person registered for the
examination; and
             (2)  any institution of higher education from which the
person has been awarded a degree or certificate.
       (b)  For purposes of this section, a person who registers for
an examination described by Subsection (a) in this state shall
report to the entity administering the examination at the time of
the person's registration the name of any institution of higher
education:
             (1)  in which the person is enrolled on the date of the
person's registration; or
             (2)  from which the person has been awarded a degree or
certificate.
       (c)  The board shall prescribe procedures and take other
actions the board considers appropriate to promote compliance with
this section.
       Sec. 61.9809.  REPORT OF GRE, GMAT, LSAT, OR MCAT SCORES ON
TRANSCRIPTS BY INSTITUTIONS. An institution of higher education
that receives an examination score for a student or graduate of the
institution on an examination under Section 61.9808 shall include
the student's score on the student's transcript.
       Sec. 61.9810.  REPORT TO BOARD AND LEGISLATURE BY EDUCATION
RESEARCH CENTER REGARDING EVALUATION OF POINT ASSIGNMENTS. Each
state fiscal biennium, the board shall provide for the evaluation
by an education research center established under Section 1.005 of
the points assigned under Sections 61.9801, 61.9802, and 61.9803.
Not later than November 1 of each even-numbered year, the education
research center shall submit to the board and the legislature a
written report regarding the center's evaluation under this
section, including any recommendations for changes to the points
assigned under those sections.
       SECTION 2.  Section 61.0591, Education Code, is repealed.
       SECTION 3.  The Texas Higher Education Coordinating Board
shall adopt rules relating to the administration of Subchapter EE,
Chapter 61, Education Code, as added by this Act, as soon as
practicable after the effective date of this Act.
       SECTION 4.  Sections 61.9808 and 61.9809, Education Code, as
added by this Act, apply only to an examination score of a person
who registers for the examination on or after the effective date of
this Act. An examination score of a person who registers for the
examination before the effective date of this Act is covered by the
law in effect immediately before that date, and the former law is
continued in effect for that purpose.
       SECTION 5.  This Act takes effect September 1, 2008.