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A BILL TO BE ENTITLED
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AN ACT
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relating to outcomes-based funding for general academic teaching |
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institutions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 62, Education Code, is |
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amended to read as follows: |
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SUBCHAPTER D. OUTCOMES-BASED FUNDING FOR GENERAL ACADEMIC |
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TEACHING INSTITUTIONS [PERFORMANCE INCENTIVE FUNDING] |
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Sec. 62.071. DEFINITIONS. In this subchapter: |
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(1) "At-risk student" means an undergraduate student |
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of an eligible institution: |
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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 is enrolled as a part-time student; or |
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(E) who did not receive a high school diploma but |
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received a high school equivalency certificate [within
the last six
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years]. |
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(2) ["Critical field" means:
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[(A)
the field of engineering, computer science,
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mathematics, physical science, allied health, nursing, or teacher
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certification in a field of science or mathematics; and
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[(B)
any other field of study identified as a
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critical field by the coordinating board in "Closing the Gaps,"
the
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state's master plan for higher education.
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[(3)
"Eligible institution"
means a general academic
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teaching institution other than a public state college.
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[(4)] "General academic teaching institution" has |
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[and "public state college" have] the meaning [meanings] assigned |
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by Section 61.003. |
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Sec. 62.072. BIENNIAL DISTRIBUTION OF FUNDS TO GENERAL |
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ACADEMIC TEACHING INSTITUTIONS BASED ON OUTCOMES METRICS POINTS. |
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(a) Except as provided by Section 62.073, for each state fiscal |
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biennium, the coordinating board shall distribute any funds |
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appropriated to the coordinating board by the legislature for the |
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purposes of this subchapter, and any other funds made available for |
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the purposes of this subchapter, to general academic teaching |
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institutions in proportion to each institution's percentage of the |
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total number of outcomes metrics points assigned to all general |
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academic teaching institutions under Section 62.074 for that state |
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fiscal biennium. |
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(b) Notwithstanding Subsection (a), for the state fiscal |
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biennium ending August 31, 2017, the percentage share of |
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outcomes-based funding allocated to a general academic teaching |
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institution under that subsection may not be less than 99.5 percent |
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of the percentage share of instruction and operations funding under |
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Section 61.059 appropriated to all general academic teaching |
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institutions for undergraduate education for that biennium that is |
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allocated to the institution. The coordinating board may adjust in |
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an equitable manner the distribution amounts to which institutions |
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would otherwise be entitled under Subsection (a) as necessary to |
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comply with this subsection. This subsection expires September 1, |
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2017. |
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(c) Notwithstanding Subsection (a), for the state fiscal |
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biennium ending August 31, 2019, the percentage share of |
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outcomes-based funding allocated to a general academic teaching |
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institution under that subsection may not be less than 99 percent of |
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the percentage share of instruction and operations funding under |
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Section 61.059 appropriated to all general academic teaching |
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institutions for undergraduate education for that biennium that is |
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allocated to the institution. The coordinating board may adjust in |
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an equitable manner the distribution amounts to which institutions |
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would otherwise be entitled under Subsection (a) as necessary to |
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comply with this subsection. This subsection expires September 1, |
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2019. [FUNDING.
(a)
For each state fiscal year, the coordinating
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board shall distribute
any performance incentive funds
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appropriated by the
legislature for purposes of this
subchapter,
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and any other funds made available for the
purposes of this
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subchapter, to eligible
institutions as follows:
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[(1)
50
percent to be
distributed among eligible
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institutions in
proportion to the
increase, if
any, in the
average
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number of
degrees awarded annually by
each institution in
the two
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most recent fiscal years from the average number of
degrees awarded
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annually by that
institution in the
two fiscal years immediately
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preceding those fiscal years, using the weights assigned to each
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degree under the table prescribed by Subsection (b); and
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[(2)
the remaining 50 percent to be distributed among
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eligible institutions in proportion to the average number of
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degrees awarded annually by each institution in the three most
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recent fiscal years, using the weights assigned to each degree
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under the table prescribed by Subsection (b).
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[(b)
A number of points is assigned for each degree awarded
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by an eligible institution according to the following table:
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[POINTS
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[Noncritical Field/Not At-Risk Student 1.0
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[Noncritical Field/At-Risk Student 2.0
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[Critical Field/Not At-Risk Student 2.0
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[Critical Field/At-Risk Student 3.0] |
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Sec. 62.073. DISTRIBUTION OF FUNDS CONTINGENT ON FULL |
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FUNDING OF BASE FORMULA FUNDING. Funds may be distributed under |
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this subchapter for a state fiscal biennium only if the instruction |
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and operations formula for all general academic teaching |
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institutions for undergraduate education under Section 61.059 is |
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funded by appropriation for that biennium at a level, per weighted |
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semester credit hour, that is equal to or greater than the level at |
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which that formula was funded by appropriation for all general |
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academic teaching institutions in the preceding state fiscal |
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biennium, as that level is adjusted for inflation. |
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Sec. 62.074. OUTCOMES METRICS POINTS; COMPUTATION |
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METHODOLOGY. (a) For each state fiscal biennium, scaled points |
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are assigned to each general academic teaching institution for each |
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of the following outcomes-based metrics, computed as follows: |
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(1) Total Number of Undergraduate Degrees--the total |
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number of undergraduate degrees awarded by the institution, |
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including degrees awarded to students who transferred to the |
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institution; |
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(2) Total Number of Undergraduate Degrees Adjusted By |
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Graduation Rate--the total number of undergraduate degrees awarded |
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to students by the institution, or awarded by another institution |
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to a student who completed at least 50 percent of the student's |
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degree requirements as a first-time, full-time student at the |
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institution, multiplied by the institution's three-year graduation |
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rate for undergraduates, if the institution is a public state |
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college, or by the institution's six-year graduation rate for |
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undergraduates, if the institution is not a public state college, |
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the product of which is multiplied by 7; |
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(3) Total Number of Undergraduate Degrees Per 100 |
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Undergraduate Full-time Student Equivalents--the total number of |
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undergraduate degrees awarded by the institution divided by the |
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number of full-time undergraduate student equivalents enrolled in |
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the fall semester, as reported in the coordinating board's higher |
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education accountability system, the quotient of which is |
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multiplied by 100, and the product of which is multiplied by 25; |
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(4) Total Number of Undergraduate Degrees Awarded To |
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At-risk Students--the total number of undergraduate degrees |
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awarded by the institution to at-risk students, multiplied by 7; |
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(5) 25 Percent Degree Completion--the total number of |
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undergraduate students at the institution having successfully |
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completed at least 25 percent of the student's degree requirements |
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or having earned at least 30 credit hours toward a 120-credit-hour |
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degree, including hours earned toward the degree at another |
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institution before transferring to the institution, multiplied by |
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1.5; |
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(6) 50 Percent Degree Completion--the total number of |
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undergraduate students at the institution having successfully |
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completed at least 50 percent of the student's degree requirements |
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or having earned at least 60 credit hours toward a 120-credit-hour |
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degree, including hours earned toward the degree at another |
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institution before transferring to the institution, multiplied by |
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2.5; and |
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(7) 75 Percent Degree Completion--the total number of |
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undergraduate students having successfully completed at least 75 |
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percent of the student's degree requirements or having earned at |
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least 90 credit hours toward a 120-credit-hour degree, including |
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hours earned toward the degree at another institution before |
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transferring to the institution, multiplied by 4. |
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(b) For each state fiscal biennium, each metric prescribed |
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by Subsection (a) is computed using the average of the applicable |
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variables for the three most recent academic years for which the |
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information is available, as determined on the January 1 preceding |
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the biennium. |
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(c) Each state fiscal biennium, a general academic teaching |
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institution shall compute the institution's scaled points on each |
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of the metrics under Subsection (a). After computing its scaled |
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points for each of the metrics, the institution shall assign one of |
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the following percentage weights to each of the metrics' scaled |
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points: |
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(1) 25 percent; |
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(2) 25 percent; |
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(3) 20 percent; |
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(4) 15 percent; |
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(5) 10 percent; |
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(6) five percent; and |
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(7) zero percent. |
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(d) In assigning the percentage weights under Subsection |
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(c), a general academic teaching institution: |
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(1) shall prioritize the metrics the institution |
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considers most advantageous to maximizing the institution's total |
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number of points under this section; and |
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(2) may not assign the zero percentage to the Total |
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Undergraduate Degrees Awarded To At-risk Students metric. |
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(e) After assigning the percentage weights to its metrics |
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under Subsection (c), a general academic teaching institution shall |
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multiply the scaled points for each of its metrics by the applicable |
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percentage weight to determine its weighted total points for each |
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metric. The institution's total number of outcomes metrics points |
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under this section is the sum of the institution's weighted total |
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points for all metrics. |
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(f) Notwithstanding Subsection (c) , in the two state fiscal |
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bienniums following the initial state fiscal biennium for which |
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percentage weights are assigned under Subsection (c), a general |
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academic teaching institution must assign the same percentage |
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weight to each metric as was assigned by the institution under |
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Subsection (c) in the initial biennium. |
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Sec. 62.075. COORDINATING BOARD MONITORING; REPORTING. The |
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coordinating board shall monitor and evaluate the equity and |
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effectiveness of outcomes-based funding under this subchapter and |
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report its results, including relevant details and recommendations |
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for legislative action, to each legislative standing committee or |
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subcommittee with primary jurisdiction over higher education not |
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later than October 1 of each even-numbered year. The coordinating |
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board's report must include any recommendations for refining the |
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definition of "at-risk students" under Section 62.071. |
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Sec. 62.076. RULES. The coordinating board shall adopt |
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rules for the administration of this subchapter, including any |
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rules the coordinating board considers necessary regarding: |
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(1) standardization of the computation of metrics |
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under Section 62.074; and |
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(2) the submission to the coordinating board by |
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general academic teaching [eligible] institutions of any |
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information [student data] required for the coordinating board to |
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carry out its duties under this subchapter. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2015. |