HLS 10RS-1614 ORIGINAL Page 1 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2010 HOUSE BILL NO. 1012 BY REPRESENTATIVE AUSTIN BADON STUDENT/TUITION: Authorizes public postsecondary education institutions to enter into performance agreements to be granted certain authority including to increase tuition and mandatory fee amounts for students AN ACT1 To enact R.S. 17:3351.16, relative to authority granted to public postsecondary education2 institutions; to authorize public postsecondary education institutions to enter into3 performance agreements with the Board of Regents; to provide for certain authority4 granted to such institutions including to increase tuition and mandatory fee amounts5 for students; to provide for monitoring, renewal, and reporting relative to such6 agreements; to provide for effectiveness; and to provide for related matters.7 Be it enacted by the Legislature of Louisiana:8 Section 1. R.S. 17:3351.16 is hereby enacted to read as follows:9 ยง3351.16. Performance agreements; objectives; authority; monitoring, renewal,10 reporting11 A. Beginning with the 2010-2011 academic year, any public postsecondary12 education institution may enter into an initial performance agreement with the Board13 of Regents in order to be granted autonomy over tuition and mandatory fee amounts14 applicable to students in exchange for committing to meet the objectives as15 contained in the performance agreement. At a minimum, the initial performance16 agreement shall include the following objectives:17 (1) Phase in increased admission standards in order to increase student18 retention and graduation rates.19 HLS 10RS-1614 ORIGINAL HB NO. 1012 Page 2 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Increase the number of program completers at all levels each year.1 (3) Increase the number of minority and low-income program completers at2 all levels each year.3 (4) Increase cohort graduation rates consistent with institutional peers as4 defined by the Board of Regents.5 (5) Eliminate academic programs with low completion rates that are not6 aligned with current or strategic workforce needs of the state, region, or both.7 (6) Develop regional partnerships among postsecondary education8 institutions to provide appropriate program offerings while eliminating duplication9 of programs.10 (7) Designate centers of excellence to create a highly skilled and readily11 available workforce for key and emerging industry sectors.12 (8) Develop partnerships with high schools to prepare students for13 postsecondary education.14 (9) Increase research productivity in key industries identified by Louisiana15 Economic Development and technology transfer at research institutions consistent16 with the institution's peers.17 (10) Phase out remedial education course offerings and developmental study18 programs unless such courses or programs cannot be offered at a community college19 in the same geographic area.20 (11) Increase the number of associate degrees offered at community colleges.21 (12) Adhere to a schedule established by the institution's management board22 to increase nonresident tuition amounts that are not less than the average tuition23 amount charged to Louisiana residents attending peer institutions in other Southern24 Regional Education Board states and monitor the impact of such increase on the25 institution.26 (13) Provide feedback to community colleges on the performance of27 associate degree recipients enrolled at the institution.28 HLS 10RS-1614 ORIGINAL HB NO. 1012 Page 3 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (14) Develop partnerships with community colleges to admit students who1 fail to qualify for admission into the institution after they have earned an associate2 degree from a community college.3 (15) Demonstrate collaboration in implementing the articulation and transfer4 requirements as provided in R.S. 17:3161 through 3169.5 (16) Any additional objectives as determined by the Board of Regents.6 (17) In addition to the requirements of this Subsection applicable to7 community colleges and technical college campuses, such institutions shall:8 (a) Demonstrate progress in increasing the number of students placed in jobs9 and the performance of associate degree recipients who transfer to institutions that10 offer academic undergraduate degrees at the baccalaureate level or higher.11 (b) Increase passage rates on licensure and certification exams and12 workforce foundational skills.13 B. Each institution that enters into an agreement as provided in this Section14 shall be granted, pursuant to policies adopted by the institution's management board,15 the authority to:16 (1) Increase tuition and mandatory fee amounts by up to ten percent annually17 until the institution reaches the average tuition and fee amounts of its peer18 institutions.19 (2) Upon reaching the average tuition and fee amounts as specified in20 Subparagraph (1) of this Paragraph, increase tuition and mandatory fee amounts by21 up to five percent annually, or by an amount equal to the increase in the Higher22 Education Price Index in the previous year, whichever is greater.23 (3) Impose all or some tuition and mandatory fee amounts on a student credit24 hour basis.25 C.(1) An initial performance agreement shall be six years in duration and26 shall be annually monitored by the Board of Regents. The Board of Regents shall27 report to the legislature and the governor on each participating institution's progress28 in meeting the performance objectives as specified in Subsection A of this Section.29 HLS 10RS-1614 ORIGINAL HB NO. 1012 Page 4 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) The Board of Regents may renew an institution's performance agreement1 for an additional six-year period. At a minimum, a subsequent performance2 agreement shall provide that the institution:3 (a) Further increase cohort graduation rate goals as specified in Subsection4 A of this Section including the following, as applicable:5 (i) A graduation rate of at least seventy-five percent for any institution6 classified as a "Four-Year 1" institution by the Southern Regional Education Board;7 (ii) A graduation rate of at least sixty percent for any institution classified8 as a "Four-Year 2" institution by the Southern Regional Education Board.9 (iii) A graduation rate of a least fifty percent for any institution classified as10 a "Four-Year 3", "Four-Year 4", or "Four-Year 5", institution by the Southern11 Regional Education Board.12 (b) Continue to make progress in meeting all other performance objectives13 as contained in the initial agreement.14 (c) Meet any additional performance objectives as determined by the Board15 of Regents.16 (3) If an institution's performance agreement is renewed for subsequent17 periods following the first renewal period, the institution in exchange shall:18 (a) Maintain the same graduation rates as specified in Paragraph (2) of this19 Subsection.20 (b) Continue to make progress in meeting all other performance objectives21 as contained in the initial agreement.22 (c) Meet any additional performance objectives as determined by the Board23 of Regents.24 Section 2. This Act shall become effective upon signature by the governor or, if not25 signed by the governor, upon expiration of the time for bills to become law without signature26 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If27 vetoed by the governor and subsequently approved by the legislature, this Act shall become28 effective on the day following such approval.29 HLS 10RS-1614 ORIGINAL HB NO. 1012 Page 5 of 5 CODING: Words in struck through type are deletions from existing law; words underscored are additions. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Austin Badon HB No. 1012 Abstract: Authorizes public postsecondary education institutions to enter into performance agreements with the Board of Regents in order to be granted certain authority including to increase tuition and mandatory fee amounts for students. Proposed law authorizes public postsecondary education institutions to enter into performance agreements with the Board of Regents in order to be granted authority to increase tuition and mandatory fee amounts in exchange for committing to meet specified minimum objectives. Such objectives include graduation rate goals, increased admission standards, elimination of certain academic programs, phasing out remedial education course offerings, and designating centers of excellence. Specifies that an initial performance agreement shall be six years in duration and shall be annually monitored by the Board of Regents. Requires the board to report to the legislature and the governor on each participating institution's progress in meeting the performance objectives. Provides that each institution that enters into an initial agreement shall be granted the authority to increase tuition and mandatory fee amounts by specified amounts and impose such amounts on a student credit hour basis. Provides that the Board of Regents may renew an institution's performance agreement for an additional six-year period and specifies further minimum objectives to be met by an institution if its agreement is renewed. (Adds R.S. 17:3351.16)