81R14093 KSD-D
 
  By: Morrison H.B. No. 3790
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to performance incentive funding for public institutions
  of higher education and to recognition of certain student
  achievement on degree completion.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 61, Education Code, is amended by adding
  Subchapter FF to read as follows:
  SUBCHAPTER FF.  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
  (SAT) or the American College Test (ACT) 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 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).
         (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, 2011, 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 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 increase, if any, in the average number
  of degrees awarded annually by each institution in the two most
  recent fiscal years from the average number of degrees awarded
  annually by that institution in the two fiscal years immediately
  preceding those fiscal years, using the weights assigned to each
  degree under the table prescribed by Subsection (e).
         (e)  A number of points is assigned for each degree awarded
  by an eligible institution, other than a degree awarded to an
  international student, according to the following table:
 
POINTS
 
Noncritical Field/Not At-Risk Student 1.0
 
Noncritical Field/At-Risk Student 2.0
 
Critical Field/Not At-Risk Student 2.0
 
Critical Field/At-Risk Student 3.0
         Sec. 61.9802.  PERFORMANCE INCENTIVE FUNDING FOR PUBLIC
  JUNIOR COLLEGES, PUBLIC TECHNICAL INSTITUTES, AND PUBLIC STATE
  COLLEGES.  (a) This section applies only to the following
  institutions of higher education:
               (1)  public junior colleges;
               (2)  public 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 a four-point
  scale or the equivalent;
                     (B)  who has been awarded a grant under the
  federal Pell Grant program;
                     (C)  who was 20 years of age or older 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).
         (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, 2011, 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)  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 increase, if any, in the average number
  of student transfers described by Subsection (g) and degrees and
  certificates awarded annually by each institution in the two most
  recent fiscal years from the average number of student transfers
  described by Subsection (g) and degrees and certificates awarded
  annually by that institution in the two fiscal years immediately
  preceding those fiscal years, using the weights assigned to each
  student transfer or degree or certificate under the table
  prescribed by Subsection (h).
         (e)  Points may not be assigned under Subsection (h) 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.
         (f)  Points may not be assigned under Subsection (h) for both
  a student's certificate or degree and the student's transfer.
  Points must be assigned for the student only in the category under
  Subsection (h) in which the highest number of points will be
  assigned for the student.
         (g)  Points may be assigned for a student transfer under
  Subsection (h) only for a student of the institution who completed
  at least 30 but not more than 70 semester credit hours at the
  institution with a grade point average of at least 2.5 on a
  four-point scale or the equivalent before transferring to a general
  academic teaching institution other than a public state college.
         (h)  A number of points is assigned for each degree awarded
  or student transfer by an eligible institution according to the
  following table:
 
POINTS
 
Level 1 Certificate/Noncritical Field/Not 1.0
 
At-Risk Student 1.0
 
Level 1 Certificate/Noncritical 1.5
 
Field/At-Risk Student 1.5
 
Level 1 Certificate/Critical Field/Not 1.5
 
At-Risk Student 1.5
 
Level 1 Certificate/Critical Field/At-Risk 2.0
 
Student 2.0
 
Level 2 Certificate/Noncritical Field/Not 1.5
 
At-Risk Student 1.5
 
Level 2 Certificate/Noncritical 2.0
 
Field/At-Risk Student 2.0
 
Level 2 Certificate/Critical Field/Not 2.0
 
At-Risk Student 2.0
 
Level 2 Certificate/Critical Field/At-Risk 2.5
 
Student 2.5
 
Associate's Degree/Noncritical Field/Not 2.0
 
At-Risk Student 2.0
 
Associate's Degree/Noncritical Field/At-Risk 2.5
 
Student 2.5
 
Associate's Degree/Critical Field/Not 2.5
 
At-Risk Student 2.5
 
Associate's Degree/Critical Field/At-Risk 3.0
 
Student 3.0
 
Student Transfer 2.0
         Sec. 61.9803.  PERFORMANCE INCENTIVE FUNDING FOR MEDICAL AND
  DENTAL UNITS. (a) This section applies only to medical and dental
  units.
         (b)  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 increase, if any, in the average number
  of degrees and certificates awarded by, and medical residencies
  completed at, each institution annually in the two most recent
  fiscal years from the average number of degrees and certificates
  awarded by, and medical residencies completed at, that institution
  annually in the two fiscal years immediately preceding those fiscal
  years, using the weights assigned to each degree, certificate, or
  medical residency completion under the table prescribed by
  Subsection (c).
         (c)  A number of points is assigned for each degree or
  certificate awarded by, or medical residency completed at, an
  eligible institution, other than a degree or certificate awarded to
  or a medical residency completed by an international student,
  according to the following table:
 
TYPE OF DEGREE OR CERTIFICATE POINTS  
 
Certificate requiring 30-60 Semester Credit Hours 0.5  
 
Bachelor's or Master's 1.0  
 
Doctoral following a Master's 1.0  
 
Doctoral following a Bachelor's 2.0  
 
Medical or Dental 2.0  
 
Completed Medical Residency 2.0  
         Sec. 61.9804.  TEXAS ACADEMIC EXCELLENCE AWARD PROGRAM. (a)
  In this section:
               (1)  "At-risk student" includes any student who is an
  at-risk student under Section 61.9801 or 61.9802.
               (2)  "Critical field" includes any field of study
  designated as a critical field under Section 61.9801 or 61.9802.
               (3)  "End-of-degree examination" means an examination
  approved by the board for purposes of this section as an effective
  measure of the knowledge, skill, proficiency, and understanding
  achieved by a student on completion of a degree program.
               (4)  "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.
         (b)  The board shall administer the Texas Academic
  Excellence Award Program, under which the board annually:
               (1)  presents a Texas Academic Excellence Award to each
  graduate of an institution of higher education whose licensing
  examination score or end-of-degree examination score exceeds the
  national average of students' scores on that examination or, if the
  examination is not administered nationally, exceeds the statewide
  average of students' scores on that examination; and
               (2)  provides funds to the institutions of higher
  education from which the award recipients graduated in accordance
  with Subsection (c).
         (c)  For each state fiscal year, the board shall distribute
  any funds appropriated by the legislature for the purposes of this
  subsection, and any other funds made available for purposes of this
  subsection, to the institutions of higher education from which the
  Texas Academic Excellence Award recipients for that year graduated,
  in proportion to the number of degrees awarded by each institution
  to students receiving the award for that year, weighted according
  to the weights assigned to the degrees under the table prescribed by
  Section 61.9801(e), 61.9802(h), or 61.9803(c), as applicable,
  including any additional weights assigned to students who are
  at-risk students or who graduated with a degree in a critical field.
         (d)  The board shall hire consultants to assist the board in
  determining which end-of-degree examinations to approve for
  purposes of this section.
         Sec. 61.9805.  RULES. The board shall adopt rules for the
  administration of this subchapter.
         Sec. 61.9806.  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 medical 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 (SAT) and American College Test (ACT);
               (2)  for a student who transferred from the institution
  without completing a degree or certificate, the number of semester
  credit hours completed by the student at the institution;
               (3)  the student's grade point average on all course
  work completed at the institution;
               (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 or certificate awarded to the
  student by the institution is in a field designated as a critical
  field under Section 61.9801 or Section 61.9802; and
               (9)  any other information required by the board.
         Sec. 61.9807.  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 June 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 FF,
  Chapter 61, Education Code, as added by this Act, as soon as
  practicable after the effective date of this Act.
         SECTION 4.  Section 61.9804, Education Code, as added by
  this Act, applies beginning with licensing examinations and
  end-of-degree examinations administered on or after September 1,
  2011.
         SECTION 5.  This Act takes effect September 1, 2009.