By: Zaffirini, Van de Putte, Watson S.B. No. 1234
relating to a master plan for higher education in this state.
       SECTION 1.  Subsections (a-1) and (a-2), Section 61.051,
Education Code, are amended to read as follows:
       (a-1)  To ensure that students enrolled at institutions of
higher education are sufficiently prepared to meet the challenges
associated with participation in the public affairs of the state
and in the global economy, the [The] board shall develop a
[five-year] master plan for higher education in this state for a
period of years determined by the board. The [five-year] plan must 
[shall] take into account the resources of private or independent 
institutions of higher education in this state and must include:
             (1)  reexamination of the purposes, needs, and goals of
higher education in this state;
             (2)  consideration of methods for defining the roles
and missions of institutions of higher education in a way that is
consistent with this state's needs and goals;
             (3)  consideration of more effective methods for
funding higher education;
             (4)  consideration of methods for establishing a
coherent long-term student financial aid strategy that takes into
account both student financial need and student achievement;
             (5)  recommendations for strengthening collaboration
between two-year and four-year institutions of higher education;
             (6)  recommendations for developing and reinforcing
long-term collaboration between and among primary, secondary, and
postsecondary educational institutions;
             (7)  consideration of:
                   (A)  the state's current and needed allocation of
resources for medical education, including graduate medical
                   (B)  the current and needed geographic
distribution of those resources; and
                   (C)  the value of associating a medical school
with a general academic teaching institution;
             (8)  in consultation with the state demographer and at
least one general academic teaching institution, medical and dental
unit, private or independent institution of higher education, and
public junior college, assessment of:
                   (A)  the number of new faculty members needed to
achieve the goals of the master plan, and the academic disciplines
in which the new faculty members are or will be needed;
                   (B)  the number of qualified persons available to
serve as faculty members in this state and throughout the nation and
the demand for the services of those persons in this state and
throughout the nation; and
                   (C)  the capacity of public and private
institutions of higher education in this state to prepare persons
who are qualified to serve as faculty members at institutions in
this state and across a broad spectrum of academic disciplines;
             (9)  identification of appropriate incentives,
including concurrent enrollment and dual credit, and requirements
to facilitate seamless student transitions between and among high
schools, public junior colleges, public technical institutes,
public state colleges, general academic teaching institutions, and
medical and dental units;
             (10)  consideration of concerns regarding the current
and projected student enrollment and enrollment capacity of The
University of Texas at Austin and Texas A&M University and of
methods for ensuring that those institutions maintain
competitiveness with other public and private flagship
institutions of higher education;
             (11)  consideration of the value of creating additional
four-year flagship public research institutions of higher
education, including consideration of methods for:
                   (A)  selecting the location of those
institutions; and
                   (B)  ensuring that those institutions admit a
qualified and diverse student body;
             (12)  analysis of alternative methods of funding
institutions of higher education, with emphasis on the research
components of those institutions; and
             (13)  consideration of whether to add new components to
the TEXAS Grant program and other state financial aid programs for
higher education, including a component that specifically
addresses the needs of students at the preschool and primary and
secondary school levels, ensures that those students commit to and
succeed in postsecondary education, and includes a work-study
       (a-2)  The board shall periodically review and revise the
[five-year] master plan developed under Subsection (a-1). As a
specific element of its review, the board shall identify and
analyze the degree to which the plan reflects the continuing higher
education needs of this state, as well as any policy changes
necessary to improve overall implementation of the plan and the
fiscal impact of those changes. The board shall establish
procedures for monitoring the board's implementation of the plan,
including an analysis of the degree to which its current activities
support implementation of the plan and any change in board rules or
practices necessary to improve implementation of the plan. The
board shall identify additional strategies necessary to achieve the
goals of the plan, emphasizing implementation by institutions of
higher education and specific recommendations for the different
regions of the state. The board shall notify each institution of
higher education of all strategies for implementing the plan.
       SECTION 2.  Subsections (a) and (i-1), Section 61.059,
Education Code, are amended to read as follows:
       (a)  To finance a system of higher education and to secure an
equitable distribution of state funds deemed to be available for
higher education, the board shall perform the functions described
in this section. Funding policies shall:
             (1)  allocate resources efficiently and provide
incentives for programs of superior quality and for institutional
             (2)  provide incentives for supporting the [five-year]
master plan developed and revised under Section 61.051; and
             (3)  discourage unnecessary duplication of course
offerings between institutions and unnecessary construction on any
       (i-1)  Not later than January 1 of each odd-numbered year,
the board shall make and submit to the legislature findings and
recommendations regarding the degree to which the current higher
education funding system, including formula funding and any other
transfers of legislative appropriations to institutions of higher
education, supports the implementation of the [five-year] master
plan developed and revised under Section 61.051. The board may
include its findings and recommendations in the biennial report
submitted to the legislature under Section 61.051. In its
findings, the board must:
             (1)  identify funding incentives that would encourage
implementation of the [five-year] master plan by institutions of
higher education; and
             (2)  assess the accountability of institutions of
higher education with respect to legislative appropriations to
evaluate institutional allocation of financial resources in
accordance with the [five-year] master plan.
       SECTION 3.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.