|  | 
|  | 
|  | 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: | 
|  |  | 
|  | 
| 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: | 
|  |  | 
|  | 
| Level 1 Certificate/Noncritical Field/Not |  | 1.0 |  |  | 
|  |  | 
|  | 
| Level 1 Certificate/Noncritical |  | 1.5 |  |  | 
|  | 
| Field/At-Risk Student |  | 1.5 |  |  | 
|  | 
| Level 1 Certificate/Critical Field/Not |  | 1.5 |  |  | 
|  |  | 
|  | 
| Level 1 Certificate/Critical Field/At-Risk |  | 2.0 |  |  | 
|  |  | 
|  | 
| Level 2 Certificate/Noncritical Field/Not |  | 1.5 |  |  | 
|  |  | 
|  | 
| Level 2 Certificate/Noncritical |  | 2.0 |  |  | 
|  | 
| Field/At-Risk Student |  | 2.0 |  |  | 
|  | 
| Level 2 Certificate/Critical Field/Not |  | 2.0 |  |  | 
|  |  | 
|  | 
| Level 2 Certificate/Critical Field/At-Risk |  | 2.5 |  |  | 
|  |  | 
|  | 
| Associate's Degree/Noncritical Field/Not |  | 2.0 |  |  | 
|  |  | 
|  | 
| Associate's Degree/Noncritical Field/At-Risk |  | 2.5 |  |  | 
|  |  | 
|  | 
| Associate's Degree/Critical Field/Not |  | 2.5 |  |  | 
|  |  | 
|  | 
| Associate's Degree/Critical Field/At-Risk |  | 3.0 |  |  | 
|  |  | 
|  |  | 
|  | 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 |  |  | 
|  |  | 
|  | 
| 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. |