88R6103 KJE-F
 
  By: Creighton, et al. S.B. No. 2539
 
 
 
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 an Advanced Career and Education (ACE) scholarship
  program for students enrolled in dual credit courses.
         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 receive a
  scholarship under 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.  ADVANCED CAREER AND EDUCATION (ACE)
  SCHOLARSHIP PROGRAM.  (a)  In this section:
               (1)  "Coordinating board" means the Texas Higher
  Education Coordinating Board.
               (2)  "Dual credit course" includes a course offered for
  joint high school and junior college credit under Section 130.008.
               (3)  "Institution of higher education" has the meaning
  assigned by Section 61.003.
         (b)  The agency and the coordinating board shall jointly
  establish the Advanced Career and Education (ACE) scholarship
  program to award scholarships to eligible students enrolled in dual
  credit courses at participating institutions of higher education.
         (c)  A student is eligible to receive a scholarship under the
  program if the student:
               (1)  is enrolled:
                     (A)  in high school in a school district; 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 for purposes of this section.
         (e)  The amount of a scholarship under the program is equal
  to the amount of tuition set by coordinating board rule as described
  by Subsection (d) for each dual credit course in which an eligible
  student is enrolled.
         (f)  Each school district shall:
               (1)  on a high school student's enrollment in a dual
  credit course, determine whether the student meets the criteria for
  a scholarship under 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 determination under Subdivision (1).
         (g)  A school district may make the determination under
  Subsection (f)(1) based on the district's records, the agency's
  records, or any other method authorized by commissioner rule.  If
  the district bases the determination on a method other than the
  agency's records, the district shall report the method used and the
  data on which the method is based to the agency for purposes of
  verification.
         (h)  On receipt of notice under Subsection (f)(2), a
  participating institution of higher education shall certify to the
  agency and the coordinating board the student's eligibility for a
  scholarship under the program.
         (i)  From money appropriated for the Foundation School
  Program, the agency shall transfer an amount equal to the total
  amount of scholarships for which students are eligible under this
  section to the coordinating board for distribution to the
  participating institutions of higher education in proportion to the
  number of eligible students enrolled in a dual credit course at the
  institution.
         (j)  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).
         (k)  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)  scholarships for 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)  receiving a scholarship described by
  Subdivision (1)(D).
         SECTION 4.  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 5.  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)  The board 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 6.  Section 61.059, Education Code, is amended by
  adding Subsection (b-3) to read as follows:
         (b-3)  In carrying out its duties under this section in
  regard to formulas used for appropriations recommendations for
  public junior colleges, the board shall ensure that the formulas
  are devised in accordance with Chapter 130A.
         SECTION 7.  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 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 8.  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 and 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 9.  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
  Section 130.003 for the contact hours attributable to students
  paying tuition at the reduced rate.
         SECTION 10.  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 Section 130.003.
         SECTION 11.  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 12.  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 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 13.  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 Section 130.003
  [of this code].
         SECTION 14.  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 Section
  130.003 attributable to the contact hours of the junior college
  with the student receiving the exemption.
         SECTION 15.  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 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 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 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 16.  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
  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 17.  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 18.  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 consistent 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 public junior colleges.
         (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, 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; or
               (3)  administer or evaluate the effectiveness of 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 contact
  hour and semester credit hour 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 certify 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, the coordinating board 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. (a)  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.
         (b)  The coordinating board by rule shall establish an
  equitable adjustment to the basic allotment for each junior college
  district with a total enrollment of fewer than 5,000 full-time
  equivalent students.
         (c)  Not later than November 1 of each even-numbered year, a
  junior college district that receives an adjustment under
  Subsection (b) 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.054.  WEIGHTED FULL-TIME EQUIVALENT STUDENT.  (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)  The number of weighted full-time equivalent students
  enrolled at a junior college district for purposes of this
  subchapter is equal to the product 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.
         Sec. 130A.055.  CONTACT HOUR FUNDING. (a)  The coordinating
  board by rule shall establish 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.
         Sec. 130A.056.  LOCAL SHARE. (a)  A junior college
  district's local share of base tier funding is an amount equal to
  the sum of the amounts of revenue that would 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
  student enrolled in the district equal to the statewide average
  amount of tuition and fees assessed by junior college districts to
  an equivalent student, determined as provided by coordinating board
  rule.
         (b)  Notwithstanding Subsection (a), the commissioner by
  rule may provide that a junior college district that imposes a
  maintenance and operations ad valorem tax at a rate of less than
  $0.05 may substitute the amount of revenue generated by the
  district at that tax rate for the amount of revenue required under
  Subsection (a)(1).
  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 number of times that outcome was achieved by
  the junior college district during the preceding state fiscal
  biennium;
               (2)  for an outcome described by Subsection (c)(1) or
  (2), the sum of the applicable student weights established by
  coordinating board rule under Section 130A.054 for the students who
  achieved the outcome at the junior college district during the
  preceding state fiscal biennium; and
               (3)  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,
  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 credentials in a high-demand field, as defined by
  coordinating board rule;
               (2)  the number of students who earn at least 15
  semester credit hours or the equivalent at the junior college
  district and subsequently transfer to a general academic teaching
  institution, as that term is defined by Section 61.003; 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 and workforce program
  requirements at the postsecondary level.
         SECTION 19.  Sections 61.0593 and 130.003(d), Education
  Code, are repealed.
         SECTION 20.  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 21.  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 22.  (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.