81R2394 JSA-D

By: Shapiro S.B. No. 172

A BILL TO BE ENTITLED

AN ACT

relating to financial incentives and other assistance to develop and maintain excellence in specific programs and fields of study at public institutions of higher education.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 61.059, Education Code, is amended by adding Subsection (o) to read as follows:

(o) In addition to the other funding recommendations required by this section, biennially the board shall determine the amount that the board considers appropriate for purposes of providing funding under Section 61.0596 in the following state fiscal biennium to carry out the purposes of that section and shall make recommendations to the governor and the Legislative Budget Board for funding those programs in that biennium. To the extent the board considers appropriate, the board may include funding to be provided under Section 61.0596 in the formulas established under this section.

SECTION 2. Subchapter C, Chapter 61, Education Code, is amended by adding Section 61.0596 to read as follows:

Sec. 61.0596. INCENTIVE FUNDING FOR EXCELLENCE IN SPECIFIC PROGRAMS AND FIELDS. (a) The board shall administer this section to encourage and assist institutions of higher education to develop and maintain specific programs or fields of study of the highest national rank or recognition for that type of program or field.

(b) From money available for the purpose, the board shall award incentive grants to institutions of higher education the board considers to have demonstrated the greatest commitment to success in developing or improving a designated program or field of study toward attaining the highest national rank or recognition. An institution must use money received under this section to develop, improve, or maintain the quality of the program or field for which the grant is awarded.

(c) An institution of higher education may designate only one program at a time for consideration for new funding under this section. The institution may change its designation with the consent of the board. If the board determines that an institution has met all the applicable benchmarks for the institution's designated program or field of study, the institution may designate another program or field of study for consideration for new funding under this section.

(d) The board shall establish a series of benchmarks applicable to each program or field of study designated by an institution of higher education under this section. The institution becomes eligible for funding for each benchmark the board determines that the institution has met. The board shall establish the amount of funding for each benchmark met in a manner that provides an effective incentive and reasonable financial support to assist the institution to continue its efforts to meet the remaining benchmarks for its designated program or field.

(e) Unless the board determines that a different number of benchmarks is appropriate, the board shall establish three benchmarks for each designated program or field of study. The board shall employ or contract with one or more persons who have relevant expertise and do not reside in this state to assist the board in establishing the benchmarks and associated funding levels for each type of program or field of study designated by an institution of higher education under this section.

(f) In addition to supporting the programs designated by institutions of higher education for consideration to receive incentive funding under this section, from money available for the purpose, the board shall provide additional money as the board determines appropriate to assist institutions in maintaining the excellence of programs or fields of study that have achieved the highest national ranking or recognition for that type of program or field.

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, 2009.