By: Morrison (Senate Sponsor - Shapiro) H.B. No. 3790
         (In the Senate - Received from the House May 15, 2009;
  May 21, 2009, read first time and referred to Committee on Higher
  Education; May 25, 2009, reported adversely, with favorable
  Committee Substitute by the following vote:  Yeas 4, Nays 0;
  May 25, 2009, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 3790 By:  Duncan
 
 
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 an undergraduate 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 as follows:
               (1)  50 percent 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); and
               (2)  the remaining 50 percent in proportion to the
  average number of degrees awarded annually by each institution in
  the three most recent 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 as follows:
               (1)  50 percent in proportion to the increase, if any,
  in the average number of student transfers described by Subsection
  (g) from each institution that occur each year plus the average
  number of degrees and certificates awarded annually by the
  institution in the two most recent fiscal years from the average
  number of student transfers described by Subsection (g) from the
  institution that occur each year plus the average number of degrees
  and certificates awarded annually by the 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); and
               (2)  the remaining 50 percent in proportion to the
  average number of student transfers described by Subsection (g)
  from each institution that occur each year plus the average number
  of degrees and certificates awarded annually by the institution in
  the three most recent 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:
               (1)  certificate awarded in a Level 1 certificate
  program that the board determines does not merit funding under this
  section; or
               (2)  degree or certificate awarded 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 as follows:
               (1)  50 percent 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); and
               (2)  the remaining 50 percent in proportion to the
  average number of degrees and certificates awarded by, and medical
  residencies completed at, each institution annually in the three
  most recent 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.  RULES. The board shall adopt rules for the
  administration of this subchapter.
         Sec. 61.9805.  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.
         Sec. 61.9806.  FEASIBILITY STUDY REGARDING DISTRIBUTION OF
  INCENTIVE FUNDS BASED ON STUDENT ACHIEVEMENT DATA; REPORT. (a) The
  board shall conduct a study to determine the feasibility of using
  student achievement data as criteria for the distribution of
  incentive funds to institutions of higher education. The board's
  study may include an evaluation of:
               (1)  the types of student achievement data available;
               (2)  differences in degree programs and student
  achievement data across degree programs;
               (3)  differences in student achievement data across
  types of institutions of higher education;
               (4)  standards for measuring student achievement; and
               (5)  any other factors the board considers appropriate.
         (b)  Not later than December 1, 2010, the board shall submit
  to the governor, lieutenant governor, speaker of the house of
  representatives, and the presiding officer of each legislative
  standing committee with primary jurisdiction over higher education
  a written report regarding the board's findings under the study.
         (c)  This section expires September 1, 2011.
         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.  The Texas Higher Education Coordinating Board
  shall conduct a study of whether bilingual education is a critical
  field for the purposes of Subchapter FF, Chapter 61, Education
  Code, as added by this Act.
         SECTION 5.  This Act does not make an appropriation. This
  Act takes effect only if a specific appropriation for the
  implementation of this Act is provided in a general appropriations
  act of the 81st Legislature.
         SECTION 6.  This Act takes effect September 1, 2009.
 
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