85R8120 KJE-D
 
  By: Giddings H.B. No. 2223
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to developmental coursework offered by public
  institutions of higher education under the Texas Success
  Initiative.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1. TEXAS SUCCESS INITIATIVE
         SECTION 1.01.  Chapter 51, Education Code, is amended by
  adding Subchapter F-1, and a heading is added to that subchapter to
  read as follows:
  SUBCHAPTER F-1. TEXAS SUCCESS INITIATIVE
         SECTION 1.02.  Sections 51.3062(a) and (a-1), Education
  Code, are transferred to Subchapter F-1, Chapter 51, Education
  Code, as added by this Act, redesignated as Section 51.331,
  Education Code, and amended to read as follows:
         Sec. 51.331.  DEFINITIONS. (a) The definitions provided by
  Section 61.003 apply to this subchapter [section].
         (b) [(a-1)]  In this subchapter [section]:
               (1)  "Basic academic skills education" means
  non-course competency-based developmental education programs and
  interventions designed for students whose performance falls
  significantly below college readiness standards.
               (2)  "Program evaluation" means a systematic method of
  collecting, analyzing, and using information to answer questions
  about developmental education courses, interventions, and
  policies, particularly about their effectiveness and
  cost-efficiency.
         SECTION 1.03.  Section 51.3062(r), Education Code, is
  transferred to Subchapter F-1, Chapter 51, Education Code, as added
  by this Act, redesignated as Section 51.332, Education Code, and
  amended to read as follows:
         Sec. 51.332.  APPLICABILITY.  [(r)]  This subchapter
  [section] does not apply to:
               (1)  a student who has graduated with an associate or
  baccalaureate degree from an institution of higher education;
               (2)  a student who transfers to an institution of
  higher education from a private or independent institution of
  higher education or an accredited out-of-state institution of
  higher education and who has satisfactorily completed
  college-level coursework;
               (3)  a student who is enrolled in a certificate program
  of one year or less at a public junior college, a public technical
  institute, or a public state college;
               (4)  a student who is serving on active duty as a member
  of:
                     (A)  the armed forces of the United States; or
                     (B)  the Texas National Guard;
               (5)  a student who is currently serving as and, for at
  least the three-year period preceding enrollment, has served as a
  member of a reserve component of the armed forces of the United
  States; or
               (6)  a student who on or after August 1, 1990, was
  honorably discharged, retired, or released from:
                     (A)  active duty as a member of the armed forces of
  the United States or the Texas National Guard; or
                     (B)  service as a member of a reserve component of
  the armed forces of the United States.
         SECTION 1.04.  Section 51.3062(b), Education Code, is
  transferred to Subchapter F-1, Chapter 51, Education Code, as added
  by this Act, redesignated as Section 51.333, Education Code, and
  amended to read as follows:
         Sec. 51.333.  COLLEGE READINESS ASSESSMENT REQUIRED. (a)
  [(b)]  An institution of higher education shall, using an
  assessment instrument designated by the board under Section 51.334,
  assess the academic skills of each entering undergraduate student
  to determine the student's readiness to enroll in freshman-level
  academic coursework.
         (b)  An institution of higher education may not use the
  assessment required under this section or the results of the
  assessment as a condition of admission to the institution.
         SECTION 1.05.  Sections 51.3062(c), (f), and (f-1),
  Education Code, are transferred to Subchapter F-1, Chapter 51,
  Education Code, as added by this Act, redesignated as Section
  51.334, Education Code, and amended to read as follows:
         Sec. 51.334.  ASSESSMENT INSTRUMENTS. (a) [(c)]  The board
  shall designate one or more instruments for use by institutions of
  higher education in assessing students under this subchapter [this
  section].
         (b) [(f)]  Each assessment instrument designated by the
  board for use under this subchapter [section] must be diagnostic in
  nature and designed to assess a student's readiness to perform
  freshman-level academic coursework. The board shall prescribe a
  single standard or set of standards for each assessment instrument
  to effectively measure student readiness as demonstrated by current
  research.
         (c) [(f-1)]  For each assessment instrument designated by
  the board for use under this subchapter [section], the board shall
  prescribe a score below which a student is eligible for basic
  academic skills education.
         SECTION 1.06.  Sections 51.3062(g) and (h), Education Code,
  are transferred to Subchapter F-1, Chapter 51, Education Code, as
  added by this Act, redesignated as Section 51.335, Education Code,
  and reordered and amended to read as follows:
         Sec. 51.335.  COLLEGE READINESS ADVISING. (a) [(h)]  If a
  student fails to meet the assessment standards described by Section
  51.334(b) [Subsection (f)], the institution of higher education
  shall work with the student to develop a plan to assist the student
  in becoming ready to perform freshman-level academic coursework.
  The plan must be designed on an individual basis to provide the best
  opportunity for each student to attain that readiness.
         (b) [(g)]  Each institution of higher education shall
  establish a program to advise students regarding coursework and
  other means by which students can develop the academic skills
  required to successfully complete college-level work.
         SECTION 1.07.  Sections 51.3062(i), (i-2), and (t),
  Education Code, are transferred to Subchapter F-1, Chapter 51,
  Education Code, as added by this Act, redesignated as Section
  51.336, Education Code, and amended to read as follows:
         Sec. 51.336.  DEVELOPMENTAL EDUCATION. (a)  An [(i) The]
  institution of higher education may refer a student to
  developmental coursework, including basic academic skills
  education, as considered necessary by the institution to address a
  student's deficiencies in the student's readiness to perform
  freshman-level academic coursework, except that the institution
  may not require enrollment in developmental coursework with respect
  to a student previously determined under Section 51.338(d)
  [Subsection (q-1)] or [determined] by any institution of higher
  education to have met college-readiness standards. 
         (b)  An institution of higher education that requires a
  student to enroll in developmental coursework must offer a range of
  developmental coursework, including online coursework, or
  instructional support that includes the integration of technology
  to efficiently address the particular developmental needs of the
  student.
         (c)  Each institution of higher education shall develop and
  implement for all developmental coursework, other than adult basic
  education or basic academic skills education, developmental
  education using a corequisite model under which a student
  concurrently enrolls in a developmental education course and a
  freshman-level course in the same subject area for each subject
  area for which the student is referred to developmental coursework.
         (d)  If a student fails to satisfactorily complete a
  freshman-level course described by Subsection (c), the institution
  of higher education shall: 
               (1)  review the plan developed for the student under
  Section 51.335(a) and, if necessary, work with the student to
  revise the plan; and
               (2)  offer to the student a range of competency-based
  education programs to assist the student in becoming ready to
  perform freshman-level academic coursework in the applicable
  subject area.
         (e) [(i-2)]  An institution of higher education must base
  developmental coursework on research-based best practices that
  include the following components:
               (1)  assessment;
               (2)  differentiated placement and instruction;
               (3)  faculty development;
               (4)  support services;
               (5)  program evaluation;
               (6)  integration of technology with an emphasis on
  instructional support programs;
               (7)  non-course-based developmental education
  interventions; and
               (8)  subject to the requirements of Subsection (c),
  course pairing of developmental education courses with
  credit-bearing courses.
         (f) [(t)]  To allow a student to complete any necessary
  developmental coursework in the most efficient and cost-effective
  manner, the board shall encourage institutions of higher education
  to offer various types of developmental coursework that address
  various levels of deficiency in readiness to perform college
  coursework for which course credit may be earned, as determined on
  the basis of assessments as described by Section 51.334 [Subsection
  (f)]. The types of developmental coursework may include:
               (1)  course-based programs;
               (2)  non-course-based programs, such as advising
  programs;
               (3)  module format programs;
               (4)  competency-based education programs;
               (5)  basic academic skills education, if applicable to
  the student; and
               (6)  subject to the requirements of Subsection
  (c), programs under which the student is pairing or taking
  concurrently a developmental education course and another course in
  the same subject area for which course credit may be earned.
         SECTION 1.08.  Sections 51.3062(j) and (k), Education Code,
  are transferred to Subchapter F-1, Chapter 51, Education Code, as
  added by this Act, redesignated as Section 51.337, Education Code,
  and amended to read as follows:
         Sec. 51.337.  REEVALUATION OF COLLEGE READINESS. (a)
  [(j)]  A student may retake an assessment instrument designated by
  the board for use under this subchapter at any time to determine
  readiness to perform freshman-level academic coursework.
         (b) [(k)]  An institution of higher education shall
  determine when a student is ready to perform freshman-level
  academic coursework. The institution must make its determination
  using learning outcomes for developmental education courses
  developed by the board based on established college and career
  readiness standards and student performance on one or more
  appropriate assessments.
         SECTION 1.09.  Sections 51.3062(p), (q), (q-1), (q-2), and
  (s), Education Code, are transferred to Subchapter F-1, Chapter
  51, Education Code, as added by this Act, redesignated as Section
  51.338, Education Code, and reordered and amended to read as
  follows:
         Sec. 51.338.  EXEMPTIONS. (a) [(s)]  An institution of
  higher education may exempt a non-degree-seeking or
  non-certificate-seeking student from the requirements of this
  subchapter [section].
         (b) [(p)]  A student who has achieved a score set by the
  board on the SAT [Scholastic Assessment Test (SAT)] or ACT [the
  American College Test (ACT)] is exempt from the requirements of
  this subchapter [section]. An exemption under this subsection is
  effective for the five-year period following the date a student
  takes the test and achieves the standard set by the board.
         (c) [(q)]  A student who has achieved scores set by the board
  on the questions developed for end-of-course assessment
  instruments under Section 39.0233(a) is exempt from the
  requirements of this subchapter [section]. The exemption is
  effective for the three-year period following the date a student
  takes the last assessment instrument for purposes of this
  subchapter [section] and achieves the standard set by the board.
  This subsection does not apply during any period for which the board
  designates the questions developed for end-of-course assessment
  instruments under Section 39.0233(a) as the primary assessment
  instrument under this subchapter [section], except that the
  three-year period described by this subsection remains in effect
  for students who qualify for an exemption under this subsection
  before that period.
         (d) [(q-1)]  A student who has demonstrated the performance
  standard for college readiness as provided by Section 28.008 on the
  postsecondary readiness assessment instruments adopted under
  Section 39.0238 for Algebra II and English III is exempt from the
  requirements of this subchapter [section] with respect to those
  content areas. The commissioner of higher education by rule shall
  establish the period for which an exemption under this subsection
  is valid.
         (e) [(q-2)]  A student who successfully completes a college
  preparatory course under Section 28.014 is exempt from the
  requirements of this subchapter [section] with respect to the
  content area of the course, provided that the student satisfies the
  requirements of Subsection (f) of this section. The exemption is
  effective for the two-year period following the date the student
  graduates from high school[, and the student must enroll in the
  student's first college-level course in the exempted content area
  in the student's first year of enrollment in an institution of
  higher education. If the student earns less than a C in the
  student's first college-level course in the exempted content area,
  the institution shall advise the student of non-course-based
  options for becoming college ready, such as tutoring or accelerated
  learning]. The exemption applies only at the institution of higher
  education that partners with the school district in which the
  student is enrolled to provide the course, except that the
  commissioner of higher education by rule may determine the manner
  in which the exemption may be applied to institutions of higher
  education other than the partnering institution.
         (f)  A student receiving an exemption under Subsection (e)
  must enroll in a college-level course in the exempted content area
  during the student's first year of enrollment at an institution of
  higher education occurring after the student qualifies for the
  exemption. If the student earns a grade below a "C" for the course,
  the institution shall advise the student of non-course-based
  options for attaining college readiness, such as tutoring or
  accelerated learning.
         (g)  The board [Texas Higher Education Coordinating Board]
  shall:
               (1)  collect and analyze data regarding the
  effectiveness of college preparatory courses provided under
  Section 28.014 in assisting students to become ready to perform
  freshman-level academic coursework, as measured by the rate at
  which students receiving an exemption under Subsection (e)
  successfully complete the course described by Subsection (f); and
               (2)  in November of each even-numbered year, submit a
  [students' successful completion of the first college-level course
  in the exempted content area. The board shall] report of the
  board's [its] findings to [all partnering institutions of higher
  education and independent school districts of each college
  preparatory course evaluated, as well as] the governor, the
  lieutenant governor, the speaker of the house of representatives,
  the standing legislative committees with primary jurisdiction over
  higher education, and each institution of higher education and
  school district that offers a college preparatory course under
  Section 28.014 [and the members of the House and Senate Committees
  on Higher Education].
         SECTION 1.10.  Section 51.3062(i-4), Education Code, is
  transferred to Subchapter F-1, Chapter 51, Education Code, as added
  by this Act, redesignated as Section 51.339, Education Code, and
  amended to read as follows:
         Sec. 51.339.  PROFESSIONAL DEVELOPMENT FOR DEVELOPMENTAL
  EDUCATION. [(i-4)]  The board, in consultation with institutions
  of higher education, shall develop and provide professional
  development programs, including instruction in differentiated
  instruction methods designed to address students' diverse learning
  needs, to faculty and staff who provide developmental coursework,
  including basic academic skills education, to students.
         SECTION 1.11.  Sections 51.3062(l) and (m), Education Code,
  are transferred to Subchapter F-1, Chapter 51, Education Code, as
  added by this Act, redesignated as Section 51.340, Education Code,
  and amended to read as follows:
         Sec. 51.340.  FUNDING. (a) [(l)]  The legislature shall
  appropriate money for approved non-degree-credit developmental
  courses, including basic academic skills education, except that
  legislative appropriations may not be used for developmental
  coursework taken by a student in excess of:
               (1)  for a general academic teaching institution:
                     (A)  9 semester credit hours; or
                     (B)  18 semester credit hours, if the
  developmental coursework is English for speakers of other languages 
  [for a general academic teaching institution]; and
               (2)  18 [27] semester credit hours, for a public junior
  college, public technical institute, or public state college.
         (b) [(m)]  The board may develop formulas to supplement the
  funding of developmental academic programs by institutions of
  higher education, including formulas for supplementing the funding
  of non-course-based programs. The board may develop a performance
  funding formula by which institutions of higher education may
  receive additional funding for each student who completes the
  success initiative [Success Initiative] established under this
  subchapter [section] and then successfully completes college
  coursework. The legislature may appropriate the money required to
  provide the additional funding under those formulas.
         SECTION 1.12.  Section 51.3062(n), Education Code, is
  transferred to Subchapter F-1, Chapter 51, Education Code, as added
  by this Act, redesignated as Section 51.341, Education Code, and
  amended to read as follows:
         Sec. 51.341.  REPORT TO BOARD. [(n)]  Each institution of
  higher education, other than a medical and dental unit, shall
  report annually to the board on the success of its students and the
  effectiveness of its success initiative [Success Initiative].
         SECTION 1.13.  Section 51.3062(u), Education Code, is
  transferred to Subchapter F-1, Chapter 51, Education Code, as added
  by this Act, redesignated as Section 51.342, Education Code, and
  amended to read as follows:
         Sec. 51.342.  REPORT TO SCHOOL DISTRICTS. [(u)]  An
  institution of higher education that administers an assessment
  instrument to students under this subchapter [this section] shall
  report to each school district from which assessed students
  graduated high school all available information regarding student
  scores and performance on the assessment instrument and student
  demographics. [The board shall adopt rules as necessary to
  implement this subsection, including rules for implementing this
  subsection in a manner that complies with federal law regarding
  confidentiality of student medical or educational information,
  including the Health Insurance Portability and Accountability Act
  of 1996 (42 U.S.C. Section 1320d et seq.) and the Family Educational
  Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g), and any
  state law relating to the privacy of student information.]
         SECTION 1.14.  Section 51.3062(o), Education Code, is
  transferred to Subchapter F-1, Chapter 51, Education Code, as added
  by this Act, redesignated as Section 51.343, Education Code, and
  amended to read as follows:
         Sec. 51.343.  EVALUATION OF SUCCESS INITIATIVE. [(o)]  The
  board shall evaluate the effectiveness of the success initiative 
  [Success Initiative] on a statewide basis and with respect to each
  institution of higher education.
         SECTION 1.15.  Sections 51.3062(i-1), (i-3), and (t-1),
  Education Code, are transferred to Subchapter F-1, Chapter 51,
  Education Code, as added by this Act, redesignated as Section
  51.344, Education Code, and reordered and amended to read as
  follows:
         Sec. 51.344.  RULES. (a) [(t-1)]  The board may adopt rules
  as necessary to implement this subchapter [section].
         (b) [(i-1)]  The board's rules [commissioner of higher
  education] may [by rule] require an institution of higher education
  to adopt uniform standards for the placement of a student under this
  subchapter [section].
         (c)  The board shall adopt rules to ensure that this
  subchapter is administered in a manner that complies with federal
  law regarding confidentiality of student medical or educational
  information, including the Health Insurance Portability and
  Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.), the
  Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
  Section 1232g), and any state law relating to the privacy of student
  information.
         (d) [(i-3)]  The board shall adopt rules for the
  implementation of Section 51.336(e) [Subsection (i-2)].
         SECTION 1.16.  The heading to Section 51.3062, Education
  Code, is repealed.
         SECTION 1.17.  Each public institution of higher education
  shall ensure that the institution's developmental coursework
  complies with the requirements of Section 51.336(c), Education
  Code, as added by this Act, according to the following schedule:
               (1)  for the 2018-2019 academic year, at least 35
  percent of the institution's developmental coursework must comply;
               (2)  for the 2019-2020 academic year, at least 65
  percent of the institution's developmental coursework must comply;
  and
               (3)  for the 2020-2021 academic year and each
  subsequent academic year, 100 percent of the institution's academic
  coursework must comply.
         SECTION 1.18.  Section 51.340(a), Education Code, as
  transferred, redesignated, and amended from Section 51.3062(l),
  Education Code, by this Act, applies beginning with the 2018-2019
  academic year.
  ARTICLE 2. CONFORMING AMENDMENTS
         SECTION 2.01.  Section 28.014(a), Education Code, is amended
  to read as follows:
         (a)  Each school district shall partner with at least one
  institution of higher education to develop and provide courses in
  college preparatory mathematics and English language arts. The
  courses must be designed:
               (1)  for students at the 12th grade level whose
  performance on:
                     (A)  an end-of-course assessment instrument
  required under Section 39.023(c) does not meet college readiness
  standards; or
                     (B)  coursework, a college entrance examination,
  or an assessment instrument designated under Section 51.334
  [51.3062(c)] indicates that the student is not ready to perform
  entry-level college coursework; and
               (2)  to prepare students for success in entry-level
  college courses.
         SECTION 2.02.  Section 29.904(d), Education Code, is amended
  to read as follows:
         (d)  A plan developed under this section:
               (1)  must establish clear, achievable goals for
  increasing the percentage of the school district's graduating
  seniors, particularly the graduating seniors attending a high
  school described by Subsection (a), who enroll in an institution of
  higher education for the academic year following graduation;
               (2)  must establish an accurate method of measuring
  progress toward the goals established under Subdivision (1) that
  may include the percentage of district high school students and the
  percentage of students attending a district high school described
  by Subsection (a) who:
                     (A)  are enrolled in a course for which a student
  may earn college credit, such as an advanced placement or
  international baccalaureate course or a course offered through
  concurrent enrollment in high school and at an institution of
  higher education;
                     (B)  are enrolled in courses that meet the
  curriculum requirements for the distinguished level of achievement
  under the foundation high school program as determined under
  Section 28.025;
                     (C)  have submitted a free application for federal
  student aid (FAFSA);
                     (D)  are exempt under Section 51.338 [51.3062(p)
  or (q)] from administration of an assessment instrument under
  Subchapter F-1, Chapter 51, [Section 51.3062] or have performed
  successfully on an assessment instrument under that subchapter
  [Section 51.3062];
                     (E)  graduate from high school;
                     (F)  graduate from an institution of higher
  education; and
                     (G)  have taken college entrance examinations and
  the average score of those students on the examinations;
               (3)  must cover a period of at least five years; and
               (4)  may be directed at district students at any level
  of primary or secondary education.
         SECTION 2.03.  Section 39.0233(a), Education Code, is
  amended to read as follows:
         (a)  The agency, in coordination with the Texas Higher
  Education Coordinating Board, shall adopt a series of questions to
  be included in an end-of-course assessment instrument administered
  under Section 39.023(c) to be used for purposes of Subchapter F-1,
  Chapter 51 [Section 51.3062]. The questions adopted under this
  subsection must be developed in a manner consistent with any
  college readiness standards adopted under Section [Sections]
  39.233 and Subchapter F-1, Chapter 51 [51.3062].
         SECTION 2.04.  Section 39.025(a-1), Education Code, is
  amended to read as follows:
         (a-1)  A student enrolled in a college preparatory
  mathematics or English language arts course under Section 28.014
  who satisfies the Texas Success Initiative (TSI) college readiness
  benchmarks prescribed by the Texas Higher Education Coordinating
  Board under Section 51.334 [51.3062(f)] on an assessment instrument
  designated by the coordinating board [Texas Higher Education
  Coordinating Board] under that section [Section 51.3062(c)]
  administered at the end of the college preparatory mathematics or
  English language arts course satisfies the requirements concerning
  and is exempt from the administration of the Algebra I or the
  English I and English II end-of-course assessment instruments, as
  applicable, as prescribed by Section 39.023(c), even if the student
  did not perform satisfactorily on a previous administration of the
  applicable end-of-course assessment instrument. A student who
  fails to perform satisfactorily on the assessment instrument
  designated by the coordinating board [Texas Higher Education
  Coordinating Board] under Section 51.334 [51.3062(c)] administered
  as provided by this subsection may retake that assessment
  instrument for purposes of this subsection or may take the
  appropriate end-of-course assessment instrument.
         SECTION 2.05.  Sections 39.053(c) and (c-2), Education Code,
  are amended to read as follows:
         (c)  School districts and campuses must be evaluated based on
  five domains of indicators of achievement adopted under this
  section that include:
               (1)  in the first domain, the results of:
                     (A)  assessment instruments required under
  Sections 39.023(a), (c), and (l), including the results of
  assessment instruments required for graduation retaken by a
  student, aggregated across grade levels by subject area, including:
                           (i)  for the performance standard determined
  by the commissioner under Section 39.0241(a), the percentage of
  students who performed satisfactorily on the assessment
  instruments, aggregated across grade levels by subject area; and
                           (ii)  for the college readiness performance
  standard as determined under Section 39.0241, the percentage of
  students who performed satisfactorily on the assessment
  instruments, aggregated across grade levels by subject area; and
                     (B)  assessment instruments required under
  Section 39.023(b), aggregated across grade levels by subject area,
  including the percentage of students who performed satisfactorily
  on the assessment instruments, as determined by the performance
  standard adopted by the agency, aggregated across grade levels by
  subject area;
               (2)  in the second domain:
                     (A)  for assessment instruments under Subdivision
  (1)(A):
                           (i)  for the performance standard determined
  by the commissioner under Section 39.0241(a), the percentage of
  students who met the standard for annual improvement on the
  assessment instruments, as determined by the commissioner by rule
  or by the method for measuring annual improvement under Section
  39.034, aggregated across grade levels by subject area; and
                           (ii)  for the college readiness performance
  standard as determined under Section 39.0241, the percentage of
  students who met the standard for annual improvement on the
  assessment instruments, as determined by the commissioner by rule
  or by the method for measuring annual improvement under Section
  39.034, aggregated across grade levels by subject area; and
                     (B)  for assessment instruments under Subdivision
  (1)(B), the percentage of students who met the standard for annual
  improvement on the assessment instruments, as determined by the
  commissioner by rule or by the method for measuring annual
  improvement under Section 39.034, aggregated across grade levels by
  subject area;
               (3)  in the third domain, the student academic
  achievement differentials among students from different racial and
  ethnic groups and socioeconomic backgrounds;
               (4)  in the fourth domain:
                     (A)  for evaluating the performance of high school
  campuses and districts that include high school campuses:
                           (i)  dropout rates, including dropout rates
  and district completion rates for grade levels 9 through 12,
  computed in accordance with standards and definitions adopted by
  the National Center for Education Statistics of the United States
  Department of Education;
                           (ii)  high school graduation rates, computed
  in accordance with standards and definitions adopted in compliance
  with the No Child Left Behind Act of 2001 (20 U.S.C. Section 6301 et
  seq.);
                           (iii)  the percentage of students who
  successfully completed the curriculum requirements for the
  distinguished level of achievement under the foundation high school
  program;
                           (iv)  the percentage of students who
  successfully completed the curriculum requirements for an
  endorsement under Section 28.025(c-1);
                           (v)  the percentage of students who
  completed a coherent sequence of career and technical courses;
                           (vi)  the percentage of students who satisfy
  the Texas Success Initiative (TSI) college readiness benchmarks
  prescribed by the Texas Higher Education Coordinating Board under
  Section 51.334 [51.3062(f)] on an assessment instrument in reading,
  writing, or mathematics designated by the coordinating board [Texas
  Higher Education Coordinating Board] under that section [Section
  51.3062(c)];
                           (vii)  the percentage of students who earn
  at least 12 hours of postsecondary credit required for the
  foundation high school program under Section 28.025 or to earn an
  endorsement under Section 28.025(c-1);
                           (viii)  the percentage of students who have
  completed an advanced placement course;
                           (ix)  the percentage of students who enlist
  in the armed forces of the United States; and
                           (x)  the percentage of students who earn an
  industry certification;
                     (B)  for evaluating the performance of middle and
  junior high school and elementary school campuses and districts
  that include those campuses:
                           (i)  student attendance; and
                           (ii)  for middle and junior high school
  campuses:
                                 (a)  dropout rates, computed in the
  manner described by Paragraph (A)(i); and
                                 (b)  the percentage of students in
  grades seven and eight who receive instruction in preparing for
  high school, college, and a career that includes information
  regarding the creation of a high school personal graduation plan
  under Section 28.02121, the distinguished level of achievement
  described by Section 28.025(b-15), each endorsement described by
  Section 28.025(c-1), college readiness standards, and potential
  career choices and the education needed to enter those careers; and
                     (C)  any additional indicators of student
  achievement not associated with performance on standardized
  assessment instruments determined appropriate for consideration by
  the commissioner in consultation with educators, parents, business
  and industry representatives, and employers; and
               (5)  in the fifth domain, three programs or specific
  categories of performance related to community and student
  engagement locally selected and evaluated as provided by Section
  39.0546.
         (c-2)  The commissioner by rule shall determine a method by
  which a student's performance may be included in determining the
  performance rating of a school district or campus under Section
  39.054 if, before the student graduates, the student:
               (1)  satisfies the Texas Success Initiative (TSI)
  college readiness benchmarks prescribed by the Texas Higher
  Education Coordinating Board under Section 51.334 [51.3062(f)] on
  an assessment instrument designated by the coordinating board
  [Texas Higher Education Coordinating Board] under that section
  [Section 51.3062(c)]; or
               (2)  performs satisfactorily on an assessment
  instrument under Section 39.023(c), notwithstanding Subsection (d)
  of this section.
         SECTION 2.06.  Section 51.406(c), Education Code, is amended
  to read as follows:
         (c)  A rule or policy of a state agency, including the Texas
  Higher Education Coordinating Board, in effect on June 1, 2011,
  that requires reporting by a university system or an institution of
  higher education has no effect on or after September 1, 2013, unless
  the rule or policy is affirmatively and formally readopted before
  that date by formal administrative rule published in the Texas
  Register and adopted in compliance with Chapter 2001, Government
  Code.  This subsection does not apply to:
               (1)  a rule or policy for which the authorizing statute
  is listed in Subsection (b);
               (2)  a rule or policy for which the authorizing statute
  is repealed on or before September 1, 2013, by legislation enacted
  by the legislature that becomes law; or
               (3)  a report required under any of the following
  provisions:
                     (A)  Article 59.06(g)(1), Code of Criminal
  Procedure;
                     (B)  Section 51.005;
                     (C)  Section 51.0051;
                     (D)  Subchapter F-1 of this chapter [Section
  51.3062];
                     (E)  Section 51.402;
                     (F)  Section 56.039;
                     (G)  [Section 61.051(k);
                     [(H)]  Section 61.059;
                     (H) [(I)]  Section 62.095(b);
                     (I) [(J)]  Section 62.098;
                     (J) [(K)]  Section 411.187(b), Government Code;
                     (K) [(L)]  Subchapter C, Chapter 606, Government
  Code;
                     (L) [(M)]  Subchapter E, Chapter 815, Government
  Code; or
                     (M) [(N)]  Chapter 1551, Insurance Code.
         SECTION 2.07.  Section 54.2001(b), Education Code, is
  amended to read as follows:
         (b)  In determining whether a person has completed a number
  of semester credit hours that is considered to be excessive for
  purposes of Subsection (a)(2), semester credit hours completed
  include transfer credit hours that count toward the person's
  undergraduate degree or certificate program course requirements
  but exclude:
               (1)  hours earned exclusively by examination;
               (2)  hours earned for a course for which the person
  received credit toward the person's high school academic
  requirements; and
               (3)  hours earned for developmental coursework that an
  institution of higher education required the person to take under
  Subchapter F-1, Chapter 51, [Section 51.3062] or under the [former]
  provisions of former Section 51.306 or former Section 51.3062.
         SECTION 2.08.  Section 56.3041(a), Education Code, is
  amended to read as follows:
         (a)  To be eligible initially for a TEXAS grant, a person
  graduating from high school on or after May 1, 2013, and enrolling
  in an eligible institution must:
               (1)  be a resident of this state as determined by
  coordinating board rules;
               (2)  meet the academic requirements prescribed by
  Paragraph (A), (B), (C), or (D) as follows:
                     (A)  be a graduate of a public or accredited
  private high school in this state who completed the foundation high
  school program established under Section 28.025 or its equivalent
  and have accomplished any two or more of the following:
                           (i)  successful completion of the course
  requirements of the international baccalaureate diploma program or
  earning of the equivalent of at least 12 semester credit hours of
  college credit in high school through courses described in Sections
  28.009(a)(1), (2), and (3);
                           (ii)  satisfaction of the Texas Success
  Initiative (TSI) college readiness benchmarks prescribed by the
  coordinating board under Section 51.334 [51.3062(f)] on any
  assessment instrument designated by the coordinating board under
  that section [Section 51.3062(c)] or qualification for an exemption
  as described by Section 51.338(b), (c), or (d) [51.3062(p), (q), or
  (q-1)];
                           (iii)  graduation in the top one-third of
  the person's high school graduating class or graduation from high
  school with a grade point average of at least 3.0 on a four-point
  scale or the equivalent; or
                           (iv)  completion for high school credit of
  at least one advanced mathematics course following the successful
  completion of an Algebra II course or at least one advanced career
  and technical or technology applications course;
                     (B)  have received an associate degree from a
  public or private institution of higher education;
                     (C)  be an undergraduate student who has:
                           (i)  previously attended another
  institution of higher education;
                           (ii)  received an initial Texas Educational
  Opportunity Grant under Subchapter P for the 2014 fall semester or a
  subsequent academic term;
                           (iii)  completed at least 24 semester credit
  hours at any institution or institutions of higher education; and
                           (iv)  earned an overall grade point average
  of at least 2.5 on a four-point scale or the equivalent on all
  course work previously attempted; or
                     (D)  if sufficient money is available, meet the
  eligibility criteria described by Section 56.304(a)(2)(A);
               (3)  meet financial need requirements established by
  the coordinating board;
               (4)  be enrolled in an undergraduate degree or
  certificate program at an eligible institution;
               (5)  except as provided under rules adopted under
  Section 56.304(h), be enrolled as:
                     (A)  an entering undergraduate student for at
  least three-fourths of a full course load, as determined by the
  coordinating board, not later than the 16th month after the
  calendar month in which the person graduated from high school;
                     (B)  an entering undergraduate student who
  entered military service not later than the first anniversary of
  the date the person graduated from high school and who enrolled for
  at least three-fourths of a full course load, as determined by the
  coordinating board, at the eligible institution not later than 12
  months after being honorably discharged from military service;
                     (C)  a continuing undergraduate student for at
  least three-fourths of a full course load, as determined by the
  coordinating board, not later than the 12th month after the
  calendar month in which the person received an associate degree
  from a public or private institution of higher education; or
                     (D)  an undergraduate student described by
  Subdivision (2)(C) who has never previously received a TEXAS grant;
               (6)  have applied for any available financial aid or
  assistance; and
               (7)  comply with any additional nonacademic
  requirements adopted by the coordinating board under this
  subchapter.
         SECTION 2.09.  Section 61.07611(a), Education Code, is
  amended to read as follows:
         (a)  To serve students who require developmental education
  in an effective and cost-effective manner, the board shall develop
  a statewide plan for developmental education to be provided under
  Subchapter F-1, Chapter 51, [Section 51.3062] that:
               (1)  assigns primary responsibility for developmental
  education to public junior colleges, public state colleges, and
  public technical institutes; and
               (2)  provides for using technology, to the greatest
  extent practicable consistent with best practices, to provide
  developmental education to students.
         SECTION 2.10.  Section 315.004, Labor Code, is amended to
  read as follows:
         Sec. 315.004.  ADULT EDUCATION ASSESSMENT.  The commission
  shall, in consultation with the Texas Higher Education Coordinating
  Board and the Texas Education Agency, review the standardized
  assessment mechanism required under Section 315.002(a)(7) and
  recommend any changes necessary to align the assessment with the
  assessments designated under Section 51.334 [51.3062], Education
  Code, to allow for the proper placement of a student in an adult
  basic education course or to provide the student with the proper
  developmental or English as a second language coursework, as
  appropriate.
  ARTICLE 3. EFFECTIVE DATE
         SECTION 3.01.  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.