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  88R18694 KJE-F
 
  By: VanDeaver, Kuempel, Buckley, Bonnen, H.B. No. 8
      Longoria, et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration, coordination, and support of public
  higher education, including the public junior college state finance
  program and a Financial Aid for Swift Transfer (FAST) program to
  enable certain students to enroll at no cost to the student in dual
  credit courses offered by certain public institutions of higher
  education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 28.009(b-2), Education Code, is amended
  to read as follows:
         (b-2)  Any agreement, including a memorandum of
  understanding or articulation agreement, between a school district
  and public institution of higher education to provide a dual credit
  program described by Subsection (b-1) must:
               (1)  include specific program goals aligned with the
  statewide goals developed under Subsection (b-1);
               (2)  establish common advising strategies and
  terminology related to dual credit and college readiness;
               (3)  provide for the alignment of endorsements
  described by Section 28.025(c-1) offered by the district, and dual
  credit courses offered under the agreement that apply towards those
  endorsements, with postsecondary pathways and credentials at the
  institution and industry certifications;
               (4)  identify tools, including tools developed by the
  agency, the Texas Higher Education Coordinating Board, or the Texas
  Workforce Commission, to assist school counselors, students, and
  families in selecting endorsements offered by the district and dual
  credit courses offered under the agreement;
               (5)  establish, or provide a procedure for
  establishing, the course credits that may be earned under the
  agreement, including by developing a course equivalency crosswalk
  or other method for equating high school courses with college
  courses and identifying the number of credits that may be earned for
  each course completed through the program;
               (6)  describe the academic supports and, if applicable,
  guidance that will be provided to students participating in the
  program;
               (7)  establish the district's and the institution's
  respective roles and responsibilities in providing the program and
  ensuring the quality and instructional rigor of the program;
               (8)  state the sources of funding for courses offered
  under the program, including, at a minimum, the sources of funding
  for tuition, transportation, and any required fees or textbooks for
  students participating in the program;
               (9)  require the district and the institution to
  consider the use of free or low-cost open educational resources in
  courses offered under the program;
               (10)  ensure the accurate and timely exchange of
  information necessary for an eligible student to enroll at no cost
  to the student in a dual credit course as provided by Section
  28.0095;
               (11)  be posted each year on the district's and the
  institution's respective Internet websites; and
               (12) [(11)]  designate at least one employee of the
  district or institution as responsible for providing academic
  advising to a student who enrolls in a dual credit course under the
  program before the student begins the course.
         SECTION 2.  Subchapter A, Chapter 28, Education Code, is
  amended by adding Section 28.0095 to read as follows:
         Sec. 28.0095.  FINANCIAL AID FOR SWIFT TRANSFER (FAST)
  PROGRAM.  (a)  In this section:
               (1)  "Charter school" means a charter school operating
  under Chapter 12.
               (2)  "Coordinating board" means the Texas Higher
  Education Coordinating Board.
               (3)  "Dual credit course" includes a course offered for
  joint high school and junior college credit under Section 130.008
  or another course offered by an institution of higher education for
  which a high school student may earn credit toward satisfaction of:
                     (A)  a requirement necessary to obtain an
  industry-recognized credential or certificate or an associate
  degree;
                     (B)  a foreign language requirement at an
  institution of higher education;
                     (C)  a requirement in the core curriculum, as that
  term is defined by Section 61.821, at an institution of higher
  education; or
                     (D)  a requirement in a field of study curriculum
  developed by the coordinating board under Section 61.823.
               (4)  "Institution of higher education" has the meaning
  assigned by Section 61.003.
         (b)  The agency and the coordinating board shall jointly
  establish the Financial Aid for Swift Transfer (FAST) program to
  allow eligible students to enroll at no cost to the student in dual
  credit courses at participating institutions of higher education.
         (c)  A student is eligible to enroll at no cost to the student
  in a dual credit course under the program if the student:
               (1)  is enrolled:
                     (A)  in high school in a school district or
  charter school; and
                     (B)  in a dual credit course at a participating
  institution of higher education; and
               (2)  was educationally disadvantaged at any time during
  the four school years preceding the student's enrollment in the
  dual credit course described by Subdivision (1)(B).
         (d)  An institution of higher education is eligible to
  participate in the program only if the institution charges for each
  dual credit course offered by the institution an amount of tuition
  that does not exceed the amount prescribed by coordinating board
  rule.
         (e)  Each school district or charter school shall:
               (1)  on a high school student's enrollment in a dual
  credit course, determine whether the student meets the criteria for
  the program under Subsection (c)(2); and
               (2)  notify the institution of higher education that
  offers the dual credit course in which the student is enrolled of
  the district's or school's determination under Subdivision (1).
         (f)  A school district or charter school may make the
  determination under Subsection (e)(1) based on the district's or
  school's records, the agency's records, or any other method
  authorized by commissioner rule.  If the district or school bases
  the determination on a method other than the agency's records, the
  district or school shall report the method used and the data on
  which the method is based to the agency for purposes of
  verification.
         (g)  On receipt of notice under Subsection (e)(2), a
  participating institution of higher education shall certify to the
  agency and the coordinating board the student's eligibility for the
  program.
         (h)  The coordinating board shall distribute money
  transferred to the coordinating board under Section 48.308 to the
  participating institutions of higher education in proportion to the
  number of dual credit courses in which eligible students are
  enrolled at the institution.
         (i)  The commissioner and the commissioner of higher
  education shall coordinate as necessary to:
               (1)  confirm an eligible student's enrollment in a
  participating institution of higher education; and
               (2)  obtain or share data necessary to verify a
  student's eligibility under Subsection (c)(2).
         (j)  The commissioner and the coordinating board shall adopt
  rules as necessary to implement this section.
         SECTION 3.  Section 28.010(a), Education Code, is amended to
  read as follows:
         (a)  Each school year, a school district shall notify the
  parent of each district student enrolled in grade nine or above of:
               (1)  the availability of:
                     (A)  programs in the district under which a
  student may earn college credit, including advanced placement
  programs, dual credit programs, joint high school and college
  credit programs, and international baccalaureate programs;
                     (B)  career and technology education programs or
  other work-based education programs in the district, including any
  internship, externship, or apprenticeship programs or a P-TECH
  program under Subchapter N, Chapter 29; [and]
                     (C)  subsidies based on financial need available
  for fees paid to take college advanced placement tests or
  international baccalaureate examinations under Section 28.054; and
                     (D)  funding for enrollment in dual credit courses
  under Section 28.0095; and
               (2)  the qualifications for:
                     (A)  enrolling in programs described by
  Subdivision (1)(A) or (B); or
                     (B)  funding described by Subdivision (1)(D).
         SECTION 4.  Subchapter G, Chapter 48, Education Code, is
  amended by adding Section 48.308 to read as follows:
         Sec. 48.308.  ALLOTMENT FOR FINANCIAL AID FOR SWIFT TRANSFER
  (FAST) PROGRAM.  (a)  In this section:
               (1)  "Coordinating board" means the Texas Higher
  Education Coordinating Board.
               (2)  "FAST program" means the Financial Aid for Swift
  Transfer (FAST) program under Section 28.0095.
         (b)  An institution of higher education participating in the
  FAST program is entitled to an allotment in an amount equal to the
  amount of tuition set by coordinating board rule under Section
  28.0095(d) for each dual credit course in which a student eligible
  to participate in the FAST program is enrolled at the institution.
         (c)  The agency shall transfer the amount appropriated to the
  agency for purposes of this section to the coordinating board for
  distribution in accordance with Section 28.0095(h).
         (d)  The agency and the coordinating board shall coordinate
  as necessary to implement this section.
         (e)  It is the intent of the legislature that the state
  ensure ongoing funding for the FAST program as an allotment under
  the Foundation School Program.
         SECTION 5.  Section 51.907, Education Code, is amended by
  adding Subsections (c-1) and (c-2) to read as follows:
         (c-1)  An institution of higher education may not count
  toward the number of courses permitted to be dropped under
  Subsection (c) or a policy adopted under Subsection (d) a course
  that a student dropped while enrolled in a baccalaureate degree
  program previously earned by the student.
         (c-2)  An institution of higher education may not count
  toward the number of courses permitted to be dropped under
  Subsection (c) or a policy adopted under Subsection (d) a dual
  credit course that a student dropped before graduating from high
  school.
         SECTION 6.  Section 54.3531(b), Education Code, is amended
  to read as follows:
         (b)  Notwithstanding Subsection (a), a student may not
  receive an exemption under this section for any course if the
  student has previously attempted a number of semester credit hours
  for courses taken at any institution of higher education while
  classified as a resident student for tuition purposes in excess of
  the maximum number of those hours specified by Section 61.0595(a)
  as eligible for funding under the formulas established under
  Section 61.059 or Chapter 130A.
         SECTION 7.  Section 61.003(2), Education Code, is amended to
  read as follows:
               (2)  "Public junior college" means any junior college
  listed as a public junior college [certified by the board] in
  accordance with Section 61.063 [of this chapter].
         SECTION 8.  Section 61.051, Education Code, is amended by
  adding Subsection (b) to read as follows:
         (b)  The board may participate in the establishment and
  operation of an affiliated nonprofit organization whose purpose is
  to raise money for or provide services or other benefits to the
  board.
         SECTION 9.  Section 61.0571, Education Code, is amended by
  adding Subsections (c), (d), (e), and (f) to read as follows:
         (c)  The board may provide administrative support and
  services to institutions of higher education as necessary to
  implement this chapter, Chapter 130, or Chapter 130A.
         (d)  The board may establish an institutional collaboration
  center within the board to support the implementation of Chapter
  130A and the efficient and effective operations of institutions of
  higher education.
         (e)  From money appropriated or otherwise available for the
  purpose, the board may procure goods and services for the direct
  benefit of an institution of higher education and enter into an
  interagency contract under Chapter 771, Government Code, with the
  institution to reimburse the board for the cost of the goods and
  services.
         (f)  An affiliated nonprofit organization described by
  Section 61.051(b) may accept gifts, grants, or donations from any
  public or private source to pay for goods or services procured for
  the direct benefit of an institution of higher education under
  Subsection (e).
         SECTION 10.  Section 61.059, Education Code, is amended by
  amending Subsections (b), (b-1), and (r) and adding Subsection (s)
  to read as follows:
         (b)  The board shall devise, establish, and periodically
  review and revise formulas for the use of the governor and the
  Legislative Budget Board in making appropriations recommendations
  to the legislature for [all] institutions of higher education other
  than public junior colleges funded under Chapter 130A[, including
  the funding of postsecondary vocational-technical programs]. As a
  specific element of the periodic review, the board shall study and
  recommend changes in the funding formulas based on the role and
  mission statements of those institutions of higher education. In
  carrying out its duties under this section, the board shall employ
  an ongoing process of committee review and expert testimony and
  analysis.
         (b-1)  A committee under Subsection (b) must be composed of
  representatives of a cross-section of institutions representing
  each of the institutional groupings under the board's
  accountability system, other than public junior colleges funded
  under Chapter 130A. The commissioner of higher education shall
  solicit recommendations for the committee's membership from the
  chancellor of each university system and from the president of each
  institution of higher education that is not a component of a
  university system. The chancellor of a university system may
  [shall] recommend to the commissioner at least one institutional
  representative for each institutional grouping to which a component
  of the university system is assigned. The president of an
  institution of higher education that is not a component of a
  university system may [shall] recommend to the commissioner at
  least one institutional representative for the institutional
  grouping to which the institution is assigned.
         (r)  The board shall exclude contact hours or semester credit
  hours related to a course for which a student is generating formula
  funding for the third time from the contact hours or semester credit
  hours reported to the Legislative Budget Board for formula funding
  purposes.
         (s)  Notwithstanding any other law, the board may not exclude
  from the number of semester credit hours reported [to the
  Legislative Budget Board] for formula funding under this section or
  Chapter 130A semester credit hours for any course taken up to three
  times by a student who:
               (1)  has reenrolled at an institution of higher
  education following a break in enrollment from the institution or
  another institution of higher education covering the 24-month
  period preceding the first class day of the initial semester or
  other academic term of the student's reenrollment; and
               (2)  successfully completed at least 50 semester credit
  hours of course work at an institution of higher education before
  that break in enrollment.
         SECTION 11.  Sections 61.0595(a), (d), and (f), Education
  Code, are amended to read as follows:
         (a)  In the formulas established under Section 61.059 or
  Chapter 130A, the board may not include funding for semester credit
  hours earned by a resident undergraduate student who before the
  semester or other academic session begins has previously attempted
  a number of semester credit hours for courses taken at any
  institution of higher education while classified as a resident
  student for tuition purposes that exceeds the number of semester
  credit hours required for completion of the degree program or
  programs in which the student is enrolled, including minors and
  double majors, and for completion of any certificate or other
  special program in which the student is also enrolled, including a
  program with a study-abroad component, by at least:
               (1)  for an associate degree program, 15 hours; or
               (2)  for a baccalaureate degree program, 30 hours.
         (d)  The following are not counted for purposes of
  determining whether the student has previously earned the number of
  semester credit hours specified by Subsection (a):
               (1)  semester credit hours earned by the student before
  receiving a baccalaureate degree that has previously been awarded
  to the student;
               (2)  semester credit hours earned by the student by
  examination or under any other procedure by which credit is earned
  without registering for a course for which tuition is charged;
               (3)  credit for a remedial education course, a
  technical course, a workforce education course funded according to
  contact hours, or another course that does not count toward a degree
  program at the institution;
               (4)  semester credit hours earned by the student at a
  private institution or an out-of-state institution;
               (5)  semester credit hours earned by the student before
  graduating from high school and used to satisfy high school
  graduation requirements; [and]
               (6)  the first additional 15 semester credit hours
  earned toward a degree program by a student who:
                     (A)  has reenrolled at an institution of higher
  education following a break in enrollment from the institution or
  another institution of higher education covering the 24-month
  period preceding the first class day of the initial semester or
  other academic term of the student's reenrollment; and
                     (B)  successfully completed at least 50 semester
  credit hours of course work at an institution of higher education
  before that break in enrollment; and
               (7)  semester credit hours earned by the student before
  receiving an associate degree that has been previously awarded to
  the student.
         (f)  In the formulas established under Section 61.059 or
  Chapter 130A, the board shall include without consideration of
  Subsection (a) funding for semester credit hours earned by a
  student who initially enrolled as an undergraduate student in any
  institution of higher education before the 1999 fall semester.
         SECTION 12.  Section 61.063, Education Code, is amended to
  read as follows:
         Sec. 61.063.  LISTING [AND CERTIFICATION] OF PUBLIC JUNIOR
  COLLEGES; ELIGIBILITY FOR STATE APPROPRIATIONS. (a) The
  commissioner of higher education shall file with the [state]
  comptroller and the state auditor on or before September [October]
  1 of each year a list of each [the] public junior college [colleges]
  in this state that has certified to the board under Section 130.003
  that the college is in compliance with the requirements of
  Subsection (b) of that section.  [The commissioner shall certify
  the names of those colleges that have complied with the standards,
  rules, and regulations prescribed by the board.]
         (b)  Only a public junior college included on the list under
  Subsection (a) is [those colleges which are so certified shall be]
  eligible for and may receive money appropriated [any appropriation
  made] by the legislature to public junior colleges.
         SECTION 13.  Section 61.882(d), Education Code, is amended
  to read as follows:
         (d)  In awarding grants under this subchapter, the board:
               (1)  shall, to the greatest extent practicable:
                     (A)  award grants to at least one eligible entity
  in each region of the state; and
                     (B)  ensure that each training program:
                           (i)  matches regional workforce needs;
                           (ii)  is supported by a labor market
  analysis of job postings and employers hiring roles with the skills
  developed by the program; and
                           (iii)  does not duplicate existing program
  offerings except as necessary to accommodate regional demand; and
               (2)  may give preference to applicants that:
                     (A)  represent a consortium of lower-division
  institutions of higher education;
                     (B)  prioritize training to displaced workers;
                     (C)  offer affordable training programs to
  students; or
                     (D)  partner with employers, local chambers of
  commerce, trade associations, economic development corporations,
  and local workforce boards to analyze job postings and identify
  employers hiring roles with the skills developed by the training
  programs.
         SECTION 14.  Section 130.001(b), Education Code, is amended
  to read as follows:
         (b)  The coordinating board shall have the responsibility
  for adopting policies, enacting regulations, and establishing
  general rules necessary for carrying out the duties with respect to
  public junior colleges as prescribed by the legislature, and with
  the advice and assistance of the commissioner of higher education,
  shall have authority to:
               (1)  authorize the creation of public junior college
  districts as provided in the statutes, giving particular attention
  to the need for a public junior college in the proposed district and
  the ability of the district to provide adequate local financial
  support;
               (2)  dissolve any public junior college district which
  has failed to establish and maintain a junior college within three
  years from the date of its authorization;
               (3)  adopt standards for the operation of public junior
  colleges and prescribe the rules and regulations for such colleges;
               (4)  require of each public junior college such reports
  as deemed necessary in accordance with the coordinating board's
  rules and regulations; and
               (5)  establish a standing advisory committee
  [commissions] composed of representatives of public junior
  colleges [and other citizens of the state] to provide advice and
  counsel to the coordinating board with respect to the funding of
  public junior colleges necessary to carry out this chapter and
  Chapter 130A.
         SECTION 15.  Sections 130.003(a), (b), (e), and (f),
  Education Code, are amended to read as follows:
         (a)  There shall be appropriated biennially from money in the
  state treasury not otherwise appropriated an amount sufficient to
  supplement local funds for the proper support, maintenance,
  operation, and improvement of those public junior colleges of Texas
  that meet the standards prescribed by this chapter.  The sum shall
  be allocated in accordance with Chapter 130A [on the basis of
  contact hours within categories developed, reviewed, and updated by
  the coordinating board].
         (b)  To be eligible for and to receive money appropriated
  under Subsection (a) [a proportionate share of the appropriation],
  a public junior college must certify to the coordinating board, in
  the manner prescribed by coordinating board rule, that the college:
               (1)  offers [be certified as a public junior college as
  prescribed in Section 61.063;
               [(2)  offer] a minimum of 24 semester hours of
  vocational and/or terminal courses;
               (2)  collects [(3)  have complied with all existing
  laws, rules, and regulations governing the establishment and
  maintenance of public junior colleges;
               [(4)  collect], from each full-time and part-time
  student enrolled, tuition [matriculation] and other [session] fees
  in the amounts required by law or in the amounts set by the
  governing board of the junior college district as authorized by
  this title;
               (3)  grants [(5)  grant], when properly applied for,
  the scholarships and tuition exemptions provided for in this code;
               (4)  [and
               [(6)]  for a public junior college established on or
  after September 1, 1986, levies and collects [levy and collect] ad
  valorem taxes as provided by law for the operation and maintenance
  of the [public junior] college; and
               (5)  has complied with all laws and coordinating board
  rules for the establishment and operation of a public junior
  college.
         (e)  The primary purpose of each public junior [community]
  college shall be to provide:
               (1)  technical programs up to two years in length
  leading to associate degrees or certificates;
               (2)  vocational programs leading directly to
  employment in semi-skilled and skilled occupations;
               (3)  [freshman and sophomore] courses in the core
  curriculum or a field of study curriculum, as those terms are
  defined by Section 61.821 [arts and sciences];
               (4)  continuing adult education programs for
  occupational or cultural upgrading;
               (5)  compensatory education programs designed to
  fulfill the commitment of an admissions policy allowing the
  enrollment of disadvantaged students;
               (6)  a continuing program of counseling and guidance
  designed to assist students in achieving their individual
  educational goals; 
               (7)  work force development programs designed to meet
  local and statewide needs;
               (8)  adult literacy and other basic skills programs for
  adults; and
               (9)  such other purposes as may be prescribed by the
  coordinating board [Texas Higher Education Coordinating Board] or
  local governing boards in the best interest of post-secondary
  education in this state [Texas].
         (f)  This section does not affect the application of [alter,
  amend, or repeal] Section 54.231 [54.060 of this code].
         SECTION 16.  Section 130.0031, Education Code, is amended to
  read as follows:
         Sec. 130.0031.  TRANSFERS: WHEN MADE. (a) In consultation
  with the advisory committee established under Section
  130.001(b)(5), the Texas Higher Education Coordinating Board by
  rule shall adopt a payment schedule by which money appropriated to
  junior college districts under this chapter and Chapter 130A is
  distributed to those districts [In this section:
               [(1)  "Category 1 junior college" means a junior
  college having not more than 2,500 students in fall head count
  enrollment for the previous fiscal year and not more than $300,000
  of local taxes collected, excluding taxes for debt service, in the
  previous fiscal year.
               [(2)  "Category 2 junior college" means a junior
  college having more than 2,500 students in fall head count
  enrollment for the previous fiscal year or more than $300,000 of
  local taxes collected, excluding taxes for debt service, in the
  previous fiscal year].
         (b)  The Texas Higher Education Coordinating Board may
  modify the [Money appropriated for payment to junior colleges under
  the authority of Section 130.003 of this code shall be paid to each
  eligible category 1 junior college out of the public junior college
  reimbursement fund as follows:
               [(1)  24 percent of the yearly entitlement of the
  junior college shall be paid in two equal installments to be made on
  or before the 25th day of September and October; and
               [(2)  76 percent of the yearly entitlement of the
  junior college shall be paid in eight equal installments to be made
  on or before the 25th day of November, December, January, February,
  March, April, May, and June.
         [(c)  Money appropriated for payment to junior colleges
  under the authority of Section 130.003 of this code shall be paid to
  each eligible category 2 junior college out of the public junior
  college reimbursement fund as follows:
               [(1)  24 percent of the yearly entitlement of the
  junior college shall be paid in two equal installments to be made on
  or before the 25th day of September and October; and
               [(2)  76 percent of the yearly entitlement of the
  junior college shall be paid in eight equal installments to be made
  on or before the 25th day of November, December, March, April, May,
  June, July, and August.
         [(d)  The] amount of any installment required under the
  payment schedule adopted under Subsection (a) [by this section may
  be modified] to, in accordance with this chapter, Chapter 130A, the
  General Appropriations Act, or coordinating board rule:
               (1)  provide the junior college district with the
  proper amount to which the junior college district may be entitled
  by law; and
               (2)  [to] correct errors in the allocation or
  distribution of funds.
         (c)  If the amount of an installment under the payment
  schedule adopted under Subsection (a) [this section] is required to
  be equal to the amount of another installment [other installments],
  the amount of the other installment [installments] may be adjusted
  to provide for that equality. A payment under this section is not
  invalid because it is not equal to other installments.
         SECTION 17.  Section 130.0033(c), Education Code, is amended
  to read as follows:
         (c)  Charging tuition at a reduced rate under this section
  does not affect the right of the public junior college to an
  allocation [a proportionate share] of state appropriations under
  this chapter and Chapter 130A [Section 130.003] for the contact
  hours attributable to students paying tuition at the reduced rate.
         SECTION 18.  Section 130.0034(a), Education Code, is amended
  to read as follows:
         (a)  The governing board of a [public] junior college
  district may charge a student a higher rate of tuition than the
  tuition that would otherwise be charged for a course in which the
  student enrolls if:
               (1)  the student has previously enrolled in the same
  course or a course of substantially the same content and level two
  or more times; and
               (2)  the student's enrollment in the course is not
  included in the contact hours used to determine the junior
  college's allocation [proportionate share] of state appropriations
  under this chapter and Chapter 130A [Section 130.003].
         SECTION 19.  Section 130.0051(a), Education Code, is amended
  to read as follows:
         (a)  The board of trustees of a junior college district by
  resolution may change the name of the district or a college within
  the district [by eliminating the words "community" or "junior" from
  the name of the district or college], unless the change would cause
  the district or college to have the same or substantially the same
  name as an existing district, college, or other public or private
  institution of higher education in this state.
         SECTION 20.  Section 130.008(c), Education Code, is amended
  to read as follows:
         (c)  The contact hours attributable to the enrollment of a
  high school student in a course offered for joint high school and
  junior college credit under this section, excluding a course for
  which the student attending high school may receive course credit
  toward the physical education curriculum requirement under Section
  28.002(a)(2)(C), shall be included in the contact hours used to
  determine the junior college's allocation [proportionate share] of
  the state money appropriated and distributed to public junior
  colleges under this chapter and Chapter 130A [Sections 130.003 and
  130.0031], even if the junior college waives all or part of the
  tuition or fees for the student under Subsection (b).
         SECTION 21.  Section 130.085(b), Education Code, is amended
  to read as follows:
         (b)  This action by the board of trustees does not affect
  their authority under Section 130.123 [of this code], nor does this
  section in any way supersede that section. This action of the board
  does not affect the right of the college to an allocation [a
  proportionate share] of state appropriations under this chapter and
  Chapter 130A [Section 130.003 of this code].
         SECTION 22.  Section 130.090(c), Education Code, is amended
  to read as follows:
         (c)  The grant of an exemption from tuition under Subsection
  (b) does not affect the right of a junior college to an allocation
  [a proportionate share] of state appropriations under this chapter
  and Chapter 130A [Section 130.003] attributable to the contact
  hours of the junior college with the student receiving the
  exemption.
         SECTION 23.  Sections 130.310(a) and (b), Education Code,
  are amended to read as follows:
         (a)  Except as provided by Subsection (b), a degree program
  created under this subchapter may be funded solely by a public
  junior college's allocation [proportionate share] of state
  appropriations under this chapter and Chapter 130A [Section
  130.003], local funds, and private sources. This subsection does
  not require the legislature to appropriate state funds to support a
  degree program created under this subchapter. The coordinating
  board shall weigh contact hours attributable to students enrolled
  in a junior-level or senior-level course offered under this
  subchapter used to determine a public junior college's allocation
  [proportionate share] of state appropriations under this chapter
  and Chapter 130A [Section 130.003] in the same manner as a lower
  division course in a corresponding field.
         (b)  Notwithstanding Subsection (a), in its recommendations
  to the legislature relating to state funding for public junior
  colleges, the coordinating board shall recommend that a public
  junior college authorized to offer baccalaureate degree programs
  under Section 130.303(a) or 130.304 receive substantially the same
  state support for junior-level and senior-level courses in the
  fields of applied science, applied technology, dental hygiene, and
  nursing offered under this subchapter as that provided to a general
  academic teaching institution for substantially similar courses.
  For purposes of this subsection, in determining the contact hours
  attributable to students enrolled in a junior-level or senior-level
  course in the field of applied science, applied technology, dental
  hygiene, or nursing offered under this subchapter used to determine
  a public junior college's allocation [proportionate share] of state
  appropriations under this chapter and Chapter 130A [Section
  130.003], the coordinating board shall weigh those contact hours as
  necessary to provide the junior college the appropriate level of
  state support to the extent state funds for those courses are
  included in the appropriations. This subsection does not prohibit
  the legislature from directly appropriating state funds to support
  junior-level and senior-level courses to which this subsection
  applies.
         SECTION 24.  Section 130.352, Education Code, is amended to
  read as follows:
         Sec. 130.352.  FORMULA FUNDING FOR WORKFORCE CONTINUING
  EDUCATION COURSES. Notwithstanding Section 130.003 or any other
  law, contact hours attributable to the enrollment of a student in a
  workforce continuing education course offered by a public junior
  college shall be included in the contact hours used to determine the
  college's allocation [proportionate share] of state money
  appropriated and distributed to public junior colleges under this
  chapter and Chapter 130A [Sections 130.003 and 130.0031],
  regardless of whether the college waives all or part of the tuition
  or fees for the course under Section 130.354.
         SECTION 25.  Section 130.355, Education Code, is amended to
  read as follows:
         Sec. 130.355.  RULES. The coordinating board shall adopt
  any rules the coordinating board considers necessary for the
  administration of this subchapter.  [In adopting those rules, the
  coordinating board shall use the negotiated rulemaking procedures
  under Chapter 2008, Government Code.]
         SECTION 26.  Subtitle G, Title 3, Education Code, is amended
  by adding Chapter 130A to read as follows:
  CHAPTER 130A.  PUBLIC JUNIOR COLLEGE STATE FINANCE PROGRAM
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 130A.001.  LEGISLATIVE INTENT. It is the intent of the
  legislature that, as public junior colleges are locally governed
  institutions, providing foundational funding for instruction and
  operations of public junior colleges should be primarily a local
  responsibility, supported through a combination of tuition, fees,
  and local property taxes, with state funding focused primarily on
  rewarding outcomes aligned with regional and state education and
  workforce needs.
         Sec. 130A.002.  PURPOSE. The purpose of the public junior
  college state finance program established under this chapter is to
  provide a modern and dynamic finance system that ensures that each
  public junior college has access to adequate state appropriations
  and local resources to support the education and training of the
  workforce of the future.
         Sec. 130A.003.  DEFINITIONS. In this chapter:
               (1)  "Commissioner" means the commissioner of higher
  education.
               (2)  "Coordinating board" means the Texas Higher
  Education Coordinating Board.
               (3)  "Program" means the public junior college state
  finance program established under this chapter.
               (4)  "Public junior college" has the meaning assigned
  by Section 61.003.
         Sec. 130A.004.  PROGRAM COMPONENTS. The program consists
  of:
               (1)  a base tier of state and local funding determined
  in accordance with Subchapter B that ensures each public junior
  college has access to a defined level of base funding for
  instruction and operations; and
               (2)  a performance tier of state funding determined in
  accordance with Subchapter C that constitutes the majority of state
  funding and is distributed based on measurable outcomes aligned
  with:
                     (A)  regional and state workforce needs; and
                     (B)  state goals aligned to the state's long-range
  master plan for higher education developed under Section 61.051.
         Sec. 130A.005.  ADMINISTRATION OF PROGRAM. (a)  The
  coordinating board may adopt rules, require reporting, and take
  other actions consistent with Chapter 61, Chapter 130, and this
  chapter as necessary to implement and administer the program.
         (b)  The coordinating board may adopt rules under this
  section in consultation with the advisory committee established
  under Section 130.001(b)(5).
         (c)  Notwithstanding Section 61.033, the coordinating board
  is not required to use negotiated rulemaking procedures under
  Chapter 2008, Government Code, for the adoption of rules under this
  section.
         Sec. 130A.006.  REQUIRED REPORTING. The coordinating board
  by rule shall require each junior college district to report to the
  coordinating board through the Education Data System, Community
  College Annual Reporting and Analysis Tool, Report of Fundable
  Operating Expenses, or any successor program, data necessary to:
               (1)  calculate funding under this chapter;
               (2)  provide timely data and analyses to inform
  management decisions by the governing body of each junior college
  district;
               (3)  administer or evaluate the effectiveness of the
  program; or
               (4)  audit the program.
         Sec. 130A.007.  COMMISSIONER AUTHORITY TO RESOLVE DATA
  REPORTING ERRORS AND UNINTENDED CONSEQUENCES FROM FUNDING
  FORMULAS. (a)  The commissioner may review the accuracy of data
  reported to the coordinating board by junior college districts.
         (b)  The commissioner may adjust:
               (1)  the distribution of funding under this chapter for
  a state fiscal year as necessary to correct errors in data reporting
  identified through the commissioner's review under Subsection (a);
  and
               (2)  a junior college district's funding under this
  chapter if the funding formulas used to determine the district's
  entitlement would result in an unanticipated loss or gain for the
  district that would have a substantial negative impact on the
  district's operations.
         (c)  Before making an adjustment under this section, the
  commissioner must request and receive written approval from the
  Legislative Budget Board and the office of the governor.  A request
  to make an adjustment is considered approved unless the Legislative
  Budget Board or the office of the governor issues a written
  disapproval within 60 business days after the date on which the
  request is received.
         (d)  If the commissioner makes an adjustment under
  Subsection (b), the commissioner shall provide to the legislature
  an explanation regarding the changes necessary to resolve the data
  reporting errors or the unintended consequences, as applicable.
         Sec. 130A.008.  CENSUS DATE ELIGIBILITY. A junior college
  district may report a student in attendance on the district's
  approved course census date for the purpose of funding under this
  chapter.
         Sec. 130A.009.  RECOVERY OF OVERALLOCATED FUNDS.  (a)  If a
  junior college district has received an overallocation of state
  funds, the coordinating board shall recover from the district an
  amount equal to the overallocation by withholding from subsequent
  allocations of state funds for the current or subsequent academic
  year or by requesting and obtaining a refund from the district.
         (b)  Notwithstanding Subsection (a), the coordinating board
  may recover an overallocation of state funds over a period not to
  exceed the subsequent five academic years if the commissioner
  determines that the overallocation was the result of exceptional
  circumstances reasonably caused by statutory changes to Chapter 130
  or this chapter and related reporting requirements.
         (c)  If a junior college district fails to comply with a
  request for a refund under Subsection (a), the coordinating board
  shall report to the comptroller that the amount constitutes a debt
  for purposes of Section 403.055, Government Code.  The coordinating
  board shall provide to the comptroller the amount of the
  overallocation and any other information required by the
  comptroller.  The comptroller may certify the amount of the debt to
  the attorney general for collection.  The junior college district's
  governmental immunity is waived to the extent necessary to collect
  the debt owed under this section.
         (d)  Subject to Subsection (e), the coordinating board may
  review a junior college district as necessary to determine if the
  district qualifies for each amount received by the district under
  this chapter.  If the coordinating board determines that a junior
  college district received an amount to which the district was not
  entitled, the coordinating board may establish a corrective action
  plan or withhold the applicable amount of funding from the
  district.
         (e)  The coordinating board may not review junior college
  district expenditures that occurred seven or more years before the
  review.
         Sec. 130A.010.  GIFTS, GRANTS, AND DONATIONS.  Except as
  provided by other law, an affiliated nonprofit organization
  described by Section 61.051(b) may solicit and accept gifts,
  grants, or donations of personal property from any public or
  private source to implement or administer this chapter.
  SUBCHAPTER B.  STATE FUNDING:  BASE TIER
         Sec. 130A.051.  BASE TIER FORMULA. The amount of base tier
  state funding to which a junior college district is entitled for
  instruction and operations under this subchapter for a state fiscal
  year is an amount equal to the amount, if any, by which the
  district's guaranteed instruction and operations funding, as
  determined under Section 130A.052, exceeds the district's local
  share of base tier funding, as determined under Section 130A.056.
         Sec. 130A.052.  GUARANTEED INSTRUCTION AND OPERATIONS
  FUNDING FORMULA. The amount of a junior college district's
  guaranteed instruction and operations funding for a state fiscal
  year is equal to the sum of:
               (1)  the product of:
                     (A)  the district's basic allotment under Section
  130A.053; and
                     (B)  the number of weighted full-time equivalent
  students enrolled at the district determined in accordance with
  Section 130A.054; and
               (2)  the district's contact hour funding under Section
  130A.055.
         Sec. 130A.053.  BASIC ALLOTMENT.  The basic allotment for a
  junior college district for a state fiscal year is an amount per
  weighted full-time equivalent student set by the General
  Appropriations Act or other legislative appropriation.
         Sec. 130A.054.  WEIGHTED FULL-TIME EQUIVALENT STUDENT;
  SCALE ADJUSTMENT.  (a)  The coordinating board by rule shall
  establish student weights for purposes of this chapter that reflect
  the higher cost of educating certain students.
         (b)  The student weights must be established in a manner that
  results in appropriate funding to a junior college district for the
  education of a student enrolled in an eligible credit or non-credit
  program who is:
               (1)  25 years of age or older;
               (2)  economically disadvantaged, as defined by
  coordinating board rule; or
               (3)  academically disadvantaged, as defined by
  coordinating board rule.
         (c)  Subject to Subsection (d), the number of weighted
  full-time equivalent students enrolled at a junior college district
  for purposes of this subchapter is equal to the sum of:
               (1)  the number of full-time equivalent students
  enrolled in the district; and
               (2)  the sum of the weights assigned to students
  enrolled in the district.
         (d)  The coordinating board by rule shall establish an
  equitable adjustment to the number of weighted full-time equivalent
  students determined under this section for each junior college
  district with a total enrollment of fewer than 5,000 full-time
  equivalent students.
         (e)  Not later than November 1 of each even-numbered year, a
  junior college district that receives an adjustment under
  Subsection (d) shall submit to the commissioner a report on the
  district's participation in institutional partnerships and shared
  services available under Section 61.0571 or other partnerships to
  reduce costs and improve operational efficiency.
         Sec. 130A.055.  CONTACT HOUR FUNDING. (a)  The legislature
  shall set by appropriation the amount of funding to be provided to a
  junior college district under this subchapter per contact hour.
         (b)  The amount of funding per contact hour must be weighted
  by discipline to reflect the cost of providing the applicable
  course.
         (c)  The coordinating board shall determine the total amount
  of contact hour funding to which each junior college district is
  entitled under this section.
         Sec. 130A.056.  LOCAL SHARE.  A junior college district's
  local share of base tier funding is an amount equal to the sum of the
  amounts of revenue estimated to be generated by:
               (1)  imposing a maintenance and operations ad valorem
  tax in the district at a rate of $0.05; and
               (2)  assessing an amount of tuition and fees to each
  full-time equivalent student enrolled in the district equal to the
  statewide average amount of tuition and fees assessed by junior
  college districts to a full-time equivalent student, determined as
  provided by coordinating board rule.
  SUBCHAPTER C.  STATE FUNDING:  PERFORMANCE TIER
         Sec. 130A.101.  PERFORMANCE TIER. (a)  A junior college
  district is entitled to performance tier funding for a state fiscal
  biennium in an amount equal to the sum of the amounts determined
  under Subsection (b) for each measurable outcome described by
  Subsection (c).
         (b)  The amount of performance tier funding for each
  measurable outcome described by Subsection (c) is equal to the
  product of:
               (1)  the sum of:
                     (A)  the number of times that outcome was achieved
  by the junior college district, determined as provided by
  coordinating board rule; and
                     (B)  for an outcome described by Subsection (c)(1)
  or (2), the sum of the applicable student weights established by
  coordinating board rule for the students who achieved the outcome
  at the junior college district as determined under Paragraph (A) of
  this subdivision; and
               (2)  the amount set by the General Appropriations Act
  or other legislative appropriation for the outcome.
         (c)  The measurable outcomes considered for purposes of
  performance tier funding are:
               (1)  the number of credentials of value awarded, as
  determined by the coordinating board based on analyses of wages and
  costs associated with the credential, including degrees,
  certificates, and other credentials from credit and non-credit
  programs that equip students for continued learning and greater
  earnings in the state economy, with an additional weight for
  placement of students who earn that credential in a high-demand
  occupation, as defined by coordinating board rule, or an
  appropriate proxy determined by the coordinating board based on
  available data;
               (2)  the number of students who earn at least 15
  semester credit hours or the equivalent at the junior college
  district and:
                     (A)  subsequently transfer to a general academic
  teaching institution, as that term is defined by Section 61.003; or
                     (B)  are enrolled in a structured co-enrollment
  program, as defined by coordinating board rule; and
               (3)  the number of students who complete a sequence of
  at least 15 semester credit hours or the equivalent for dual credit
  courses that apply toward academic or workforce program
  requirements at the postsecondary level.
         SECTION 27.  Sections 61.0593, 61.884(d), and 130.003(d),
  Education Code, are repealed.
         SECTION 28.  Sections 28.009(b-2) and 28.010(a), Education
  Code, as amended by this Act, and Section 28.0095, Education Code,
  as added by this Act, apply beginning with the 2023-2024 school
  year.
         SECTION 29.  The Texas Higher Education Coordinating Board
  may identify rules required by the passage of Chapter 130A,
  Education Code, as added by this Act, that must be adopted on an
  emergency basis for purposes of the state fiscal year beginning
  September 1, 2023, and may use the procedures established under
  Section 2001.034, Government Code, for adopting those rules.  The
  coordinating board is not required to make the finding described by
  Section 2001.034(a), Government Code, to adopt emergency rules
  under this section.
         SECTION 30.  (a)  Except as provided by Subsection (b) of
  this section, this Act takes effect September 1, 2023, and applies
  to the allocation of state funding to junior college districts
  beginning with the state fiscal biennium beginning September 1,
  2023.
         (b)  Sections 28.009(b-2) and 28.010(a), Education Code, as
  amended by this Act, and Section 28.0095, Education Code, as added
  by this Act, take effect immediately if this Act 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, those provisions
  take effect September 1, 2023.