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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 public institutions |
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of higher education and to recognition of certain student |
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achievement on degree completion. |
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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 FF to read as follows: |
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SUBCHAPTER FF. 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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(SAT) or the American College Test (ACT) is less than the national |
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mean score of 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 on the date |
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the student initially enrolled in 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, 2011, 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) For each state fiscal year, the board shall distribute |
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any performance incentive funds appropriated by the legislature for |
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the purposes of this section, and any other funds made available for |
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the purposes of this section, to institutions to which this section |
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applies as follows: |
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(1) 50 percent in proportion to the increase, if any, |
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in the average number of degrees awarded annually by each |
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institution in the two most recent fiscal years from the average |
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number of degrees awarded annually by that institution in the two |
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fiscal years immediately preceding those fiscal years, using the |
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weights assigned to each degree under the table prescribed by |
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Subsection (e); and |
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(2) the remaining 50 percent in proportion to the |
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average number of degrees awarded annually by each institution in |
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the three most recent fiscal years, using the weights assigned to |
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each degree under the table prescribed by Subsection (e). |
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(e) A number of points is assigned for each degree awarded |
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by an eligible institution, other than a degree awarded to an |
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international student, according to the following table: |
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| Noncritical Field/Not At-Risk Student |
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1.0 |
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| Noncritical Field/At-Risk Student |
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2.0 |
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| Critical Field/Not At-Risk Student |
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2.0 |
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| Critical Field/At-Risk Student |
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3.0 |
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Sec. 61.9802. PERFORMANCE INCENTIVE FUNDING FOR PUBLIC |
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JUNIOR COLLEGES, PUBLIC TECHNICAL INSTITUTES, AND PUBLIC STATE |
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COLLEGES. (a) This section applies only to the following |
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institutions of higher education: |
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(1) public junior 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 a four-point |
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scale or the equivalent; |
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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 on the date |
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the student enrolled in the 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, 2011, 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) For each state fiscal year, the board shall distribute |
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any performance incentive funds appropriated by the legislature for |
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the purposes of this section, and any other funds made available for |
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the purposes of this section, to institutions to which this section |
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applies as follows: |
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(1) 50 percent in proportion to the increase, if any, |
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in the average number of student transfers described by Subsection |
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(g) from each institution that occur each year plus the average |
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number of degrees and certificates awarded annually by the |
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institution in the two most recent fiscal years from the average |
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number of student transfers described by Subsection (g) from the |
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institution that occur each year plus the average number of degrees |
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and certificates awarded annually by the institution in the two |
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fiscal years immediately preceding those fiscal years, using the |
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weights assigned to each student transfer or degree or certificate |
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under the table prescribed by Subsection (h); and |
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(2) the remaining 50 percent in proportion to the |
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average number of student transfers described by Subsection (g) |
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from each institution that occur each year plus the average number |
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of degrees and certificates awarded annually by the institution in |
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the three most recent fiscal years, using the weights assigned to |
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each student transfer or degree or certificate under the table |
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prescribed by Subsection (h). |
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(e) Points may not be assigned under Subsection (h) for any |
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degree or 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) Points may not be assigned under Subsection (h) for both |
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a student's certificate or degree and the student's transfer. |
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Points must be assigned for the student only in the category under |
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Subsection (h) in which the highest number of points will be |
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assigned for the student. |
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(g) Points may be assigned for a student transfer under |
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Subsection (h) only for a student of the institution who completed |
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at least 30 but not more than 70 semester credit hours at the |
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institution with a grade point average of at least 2.5 on a |
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four-point scale or the equivalent before transferring to a general |
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academic teaching institution other than a public state college. |
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(h) A number of points is assigned for each degree awarded |
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or student transfer by an eligible institution according to the |
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following table: |
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| Level 1 Certificate/Noncritical Field/Not |
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1.0 |
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| Level 1 Certificate/Noncritical |
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1.5 |
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| Field/At-Risk Student |
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1.5 |
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| Level 1 Certificate/Critical Field/Not |
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1.5 |
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| Level 1 Certificate/Critical Field/At-Risk |
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2.0 |
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| Level 2 Certificate/Noncritical Field/Not |
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1.5 |
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| Level 2 Certificate/Noncritical |
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2.0 |
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| Field/At-Risk Student |
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2.0 |
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| Level 2 Certificate/Critical Field/Not |
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2.0 |
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| Level 2 Certificate/Critical Field/At-Risk |
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2.5 |
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| Associate's Degree/Noncritical Field/Not |
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2.0 |
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| Associate's Degree/Noncritical Field/At-Risk |
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2.5 |
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| Associate's Degree/Critical Field/Not |
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2.5 |
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| Associate's Degree/Critical Field/At-Risk |
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3.0 |
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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) For each state fiscal year, the board shall distribute |
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any performance incentive funds appropriated by the legislature for |
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the purposes of this section, and any other funds made available for |
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the purposes of this section, to institutions to which this section |
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applies as follows: |
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(1) 50 percent in proportion to the increase, if any, |
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in the average number of degrees and certificates awarded by, and |
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medical residencies completed at, each institution annually in the |
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two most recent fiscal years from the average number of degrees and |
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certificates awarded by, and medical residencies completed at, that |
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institution annually in the two fiscal years immediately preceding |
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those fiscal years, using the weights assigned to each degree, |
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certificate, or medical residency completion under the table |
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prescribed by Subsection (c); and |
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(2) the remaining 50 percent in proportion to the |
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average number of degrees and certificates awarded by, and medical |
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residencies completed at, each institution annually in the three |
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most recent fiscal years, using the weights assigned to each |
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degree, certificate, or medical residency completion under the |
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table prescribed by Subsection (c). |
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(c) A number of points is assigned for each degree or |
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certificate awarded by, or medical residency completed at, an |
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eligible institution, other than a degree or certificate awarded to |
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or a medical residency completed by an international student, |
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according to the following table: |
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| TYPE OF DEGREE OR CERTIFICATE |
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POINTS |
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| Certificate requiring 30-60 Semester Credit Hours |
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0.5 |
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| Bachelor's or Master's |
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1.0 |
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| Doctoral following a Master's |
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1.0 |
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| Doctoral following a Bachelor's |
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2.0 |
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| Completed Medical Residency |
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2.0 |
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Sec. 61.9804. TEXAS ACADEMIC EXCELLENCE AWARD PROGRAM. (a) |
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In this section: |
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(1) "At-risk student" includes any student who is an |
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at-risk student under Section 61.9801 or 61.9802. |
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(2) "Critical field" includes any field of study |
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designated as a critical field under Section 61.9801 or 61.9802. |
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(3) "End-of-degree examination" means an examination |
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approved by the board for purposes of this section as an effective |
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measure of the knowledge, skill, proficiency, and understanding |
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achieved by a student on completion of a degree program. |
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(4) "Licensing examination" means an examination |
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required for the issuance of a professional or occupational |
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license, except that in regard to an examination required for a |
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medical license, the term applies only to the first two sittings by |
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a student for any examination administered or accepted for that |
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purpose under Subtitle B, Title 3, Occupations Code. |
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(b) The board shall administer the Texas Academic |
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Excellence Award Program, under which the board annually: |
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(1) presents a Texas Academic Excellence Award to each |
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graduate of an institution of higher education whose licensing |
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examination score or end-of-degree examination score exceeds the |
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national average of students' scores on that examination or, if the |
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examination is not administered nationally, exceeds the statewide |
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average of students' scores on that examination; and |
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(2) provides funds to the institutions of higher |
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education from which the award recipients graduated in accordance |
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with Subsection (c). |
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(c) For each state fiscal year, the board shall distribute |
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any funds appropriated by the legislature for the purposes of this |
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subsection, and any other funds made available for purposes of this |
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subsection, to the institutions of higher education from which the |
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Texas Academic Excellence Award recipients for that year graduated, |
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in proportion to the number of degrees awarded by each institution |
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to students receiving the award for that year, weighted according |
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to the weights assigned to the degrees under the table prescribed by |
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Section 61.9801(e), 61.9802(h), or 61.9803(c), as applicable, |
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including any additional weights assigned to students who are |
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at-risk students or who graduated with a degree in a critical field. |
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(d) The board shall hire consultants to assist the board in |
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determining which end-of-degree examinations to approve for |
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purposes of this section. |
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Sec. 61.9805. RULES. The board shall adopt rules for the |
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administration of this subchapter. |
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Sec. 61.9806. 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 medical residency with the |
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institution, or transferred from the institution to a general |
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academic teaching institution other than a public state college, |
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during the preceding state fiscal year: |
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(1) the student's scores on the Scholastic Assessment |
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Test (SAT) and American College Test (ACT); |
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(2) for a student who transferred from the institution |
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without completing a degree or certificate, the number of semester |
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credit hours completed by the student at the institution; |
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(3) the student's grade point average on all course |
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work completed at the institution; |
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(4) whether the student received a grant under the |
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federal Pell Grant program; |
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(5) the age of the student on the date the student |
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initially enrolled in the institution; |
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(6) 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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(7) whether the student is an international student; |
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(8) 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; and |
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(9) any other information required by the board. |
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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. |
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Not later than June 1 of each even-numbered year, the education |
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research center shall submit to the board and the legislature a |
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written report regarding the center's evaluation under this |
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section, including any recommendations for changes to the points |
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assigned 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 FF, |
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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. Section 61.9804, Education Code, as added by |
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this Act, applies beginning with licensing examinations and |
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end-of-degree examinations administered on or after September 1, |
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2011. |
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SECTION 5. This Act takes effect September 1, 2009. |