85R5785 KSD-F
	By: Giddings	H.B. No. 1241

	A BILL TO BE ENTITLED
	AN ACT
	relating to outcomes-based funding for general academic teaching
	institutions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter D, Chapter 62, Education Code, is
	amended to read as follows:
	SUBCHAPTER D. OUTCOMES-BASED FUNDING FOR GENERAL ACADEMIC TEACHING
	INSTITUTIONS [PERFORMANCE INCENTIVE FUNDING]
	Sec. 62.071.  DEFINITIONS. In this subchapter:
	(1)  "At-risk student" means an undergraduate student
	of an eligible institution:
	(A)  whose score on the SAT [Scholastic Assessment
	Test (SAT)] or ACT [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 is enrolled as a part-time student; or
	(E)  who did not receive a high school diploma but
	received a high school equivalency certificate [within the last six
	years].
	(2)  ["Critical field" means:
	[(A)     the field of engineering, computer science,
	mathematics, physical science, allied health, nursing, or teacher
	certification in a field of science or mathematics; and
	[(B)     any other field of study identified as a
	critical field by the coordinating board in "Closing the Gaps," the
	state's master plan for higher education.
	[(3)     "Eligible institution" means a general academic
	teaching institution other than a public state college.
	[(4)]  "General academic teaching institution" has
	[and "public state college" have] the meaning [meanings] assigned
	by Section 61.003.
	Sec. 62.072.  BIENNIAL DISTRIBUTION OF FUNDS BASED ON
	DEGREES AWARDED. (a) Except as provided by Subsection (b) or
	Section 62.073, for each state fiscal biennium, the coordinating
	board shall distribute from any funds appropriated to the
	coordinating board by the legislature for the purposes of this
	subchapter, and any other funds made available for the purposes of
	this subchapter, to each general academic teaching institution an
	amount based on the average number of bachelor's degrees in the
	categories described by this subsection awarded by the institution
	annually in the three most recent academic years for which that
	information is available, as determined on the January 1 preceding
	the biennium. The amount distributed to each institution in a
	biennium is:
	(1)  $500 for each bachelor's degree awarded to a
	student who is not an at-risk student; and
	(2)  $1,000 for each bachelor's degree awarded to an
	at-risk student.
	(b)  If the total amount of funds required to be distributed
	to general academic teaching institutions under Subsection (a) for
	a state fiscal biennium is more than the total amount of funds
	available for distribution under this subchapter for that biennium,
	the amount allocated under Subsection (a) to each institution shall
	be reduced proportionately so that the total amount to be
	distributed to all institutions equals the total amount of
	available funds. [FUNDING. (a) For each state fiscal year, the
	coordinating board shall distribute any performance incentive
	funds appropriated by the legislature for purposes of this
	subchapter, and any other funds made available for the purposes of
	this subchapter, to eligible institutions as follows:
	[(1)     50 percent to be distributed among eligible
	institutions 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 (b); and
	[(2)     the remaining 50 percent to be distributed among
	eligible institutions 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 (b).
	[(b)     A number of points is assigned for each degree awarded
	by an eligible institution 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. 62.073.  DISTRIBUTION OF FUNDS CONTINGENT ON FULL
	FUNDING OF BASE FORMULA FUNDING. Funds may be distributed under
	this subchapter for a state fiscal biennium only if the instruction
	and operations formula for all general academic teaching
	institutions for undergraduate education under Section 61.059 is
	funded by appropriation for that biennium at a level, per weighted
	semester credit hour, that is equal to or greater than the level,
	per weighted semester credit hour, at which that formula was funded
	by appropriation for all general academic teaching institutions in
	the preceding state fiscal biennium, as that level is adjusted for
	inflation.
	Sec. 62.074.  RULES. The coordinating board shall adopt
	rules for the administration of this subchapter, including any
	rules the coordinating board considers necessary regarding the
	submission to the coordinating board by general academic teaching
	[eligible] institutions of any [student] data required for the
	coordinating board to carry out its duties under this subchapter.
	SECTION 2.  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, 2017.