81R26290 KSD-D By: Morrison H.B. No. 3790 Substitute the following for H.B. No. 3790: By: Branch C.S.H.B. No. 3790 A BILL TO BE ENTITLED AN ACT relating to performance incentive funding for public institutions of higher education and to recognition of certain student achievement on degree completion. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 61, Education Code, is amended by adding Subchapter FF to read as follows: SUBCHAPTER FF. PERFORMANCE INCENTIVE FUNDING Sec. 61.9801. PERFORMANCE INCENTIVE FUNDING FOR CERTAIN GENERAL ACADEMIC TEACHING INSTITUTIONS. (a) This section applies only to general academic teaching institutions other than public state colleges. (b) In this section: (1) "Advanced degree" means a graduate or professional degree for which a baccalaureate degree is usually required as a prerequisite to admission into the degree program. (2) "At-risk student" means a student of an institution to which this section applies: (A) whose score on the Scholastic Assessment Test (SAT) or the American College Test (ACT) is less than the national mean score of students' scores on that test; (B) who has been awarded a grant under the federal Pell Grant program; (C) who was 20 years of age or older on the date the student initially enrolled in the institution; (D) who initially enrolled in the institution for less than 12 semester credit hours during a fall or spring semester; (E) who did not receive a high school diploma but received a high school equivalency certificate; (F) who may not be claimed by any other person as a dependent for federal income tax purposes but may claim at least one other person as a dependent for federal income tax purposes; or (G) who is a single parent. (3) "Critical field" means a field of study designated as a critical field under Subsection (c). (c) Except as otherwise provided under Subdivision (2), the fields of engineering, computer science, mathematics, physical science, allied health, nursing, and teaching certification in the field of science or mathematics are critical fields. Beginning September 1, 2011, the board, based on the board's determination of those fields of study in which the support and development of postsecondary education programs at the bachelor's degree or advanced degree level are most critically necessary for serving the needs of this state, by rule may: (1) designate as a critical field a field of study that is not currently designated by this subsection or by the board as a critical field; or (2) remove a field of study from the list of fields currently designated by this subsection or by the board as critical fields. (d) For each state fiscal year, the board shall distribute any performance incentive funds appropriated by the legislature for the purposes of this section, and any other funds made available for the purposes of this section, to institutions to which this section applies as follows: (1) 50 percent in proportion to the increase, if any, in the average number of degrees awarded annually by each institution in the two most recent fiscal years from the average number of degrees awarded annually by that institution in the two fiscal years immediately preceding those fiscal years, using the weights assigned to each degree under the table prescribed by Subsection (e); and (2) the remaining 50 percent in proportion to the average number of degrees awarded annually by each institution in the three most recent fiscal years, using the weights assigned to each degree under the table prescribed by Subsection (e). (e) A number of points is assigned for each degree awarded by an eligible institution, other than a degree awarded to an international student, according to the following table: POINTS POINTS POINTS Noncritical Field/Not At-Risk Student 1.0 Noncritical Field/Not At-Risk Student 1.0 Noncritical Field/Not At-Risk Student 1.0 Noncritical Field/At-Risk Student 2.0 Noncritical Field/At-Risk Student 2.0 Noncritical Field/At-Risk Student 2.0 Critical Field/Not At-Risk Student 2.0 Critical Field/Not At-Risk Student 2.0 Critical Field/Not At-Risk Student 2.0 Critical Field/At-Risk Student 3.0 Critical Field/At-Risk Student 3.0 Critical Field/At-Risk Student 3.0 Sec. 61.9802. PERFORMANCE INCENTIVE FUNDING FOR PUBLIC JUNIOR COLLEGES, PUBLIC TECHNICAL INSTITUTES, AND PUBLIC STATE COLLEGES. (a) This section applies only to the following institutions of higher education: (1) public junior colleges; (2) public technical institutes; and (3) public state colleges. (b) In this section: (1) "At-risk student" means a student of an institution to which this section applies: (A) who graduated from high school with a cumulative grade point average of less than 2.5 on a four-point scale or the equivalent; (B) who has been awarded a grant under the federal Pell Grant program; (C) who was 20 years of age or older on the date the student enrolled in the institution for the first time; (D) who initially enrolled in the institution for less than 12 semester credit hours during a fall or spring semester; (E) who did not receive a high school diploma but received a high school equivalency certificate; (F) who may not be claimed by any other person as a dependent for federal income tax purposes but may claim at least one other person as a dependent for federal income tax purposes; or (G) who is a single parent. (2) "Critical field" means a field of study designated as a critical field under Subsection (c). (c) Except as otherwise provided under Subdivision (2), the fields of engineering technology, computer science, mathematics, physical science, allied health, and nursing are critical fields. Beginning September 1, 2011, the board, based on the board's determination of those fields of study in which the support and development of postsecondary education programs at the lower-division level are most critically necessary for serving the needs of this state, by rule may: (1) designate as a critical field a field of study that is not currently designated by this subsection or by the board as a critical field; or (2) remove a field of study from the list of fields currently designated by this subsection or by the board as critical fields. (d) For each state fiscal year, the board shall distribute any performance incentive funds appropriated by the legislature for the purposes of this section, and any other funds made available for the purposes of this section, to institutions to which this section applies as follows: (1) 50 percent in proportion to the increase, if any, in the average number of student transfers described by Subsection (g) from each institution that occur each year plus the average number of degrees and certificates awarded annually by the institution in the two most recent fiscal years from the average number of student transfers described by Subsection (g) from the institution that occur each year plus the average number of degrees and certificates awarded annually by the institution in the two fiscal years immediately preceding those fiscal years, using the weights assigned to each student transfer or degree or certificate under the table prescribed by Subsection (h); and (2) the remaining 50 percent in proportion to the average number of student transfers described by Subsection (g) from each institution that occur each year plus the average number of degrees and certificates awarded annually by the institution in the three most recent fiscal years, using the weights assigned to each student transfer or degree or certificate under the table prescribed by Subsection (h). (e) Points may not be assigned under Subsection (h) for any degree or certificate awarded: (1) in a program on a topic or at a level that the board determines does not merit funding under this section; or (2) to an international student. (f) Points may not be assigned under Subsection (h) for both a student's certificate or degree and the student's transfer. Points must be assigned for the student only in the category under Subsection (h) in which the highest number of points will be assigned for the student. (g) Points may be assigned for a student transfer under Subsection (h) only for a student of the institution who completed at least 30 but not more than 70 semester credit hours at the institution with a grade point average of at least 2.5 on a four-point scale or the equivalent before transferring to a general academic teaching institution other than a public state college. (h) A number of points is assigned for each degree awarded or student transfer by an eligible institution according to the following table: POINTS POINTS POINTS Level 1 Certificate/Noncritical Field/Not 1.0 Level 1 Certificate/Noncritical Field/Not 1.0 Level 1 Certificate/Noncritical Field/Not 1.0 At-Risk Student 1.0 At-Risk Student 1.0 At-Risk Student 1.0 Level 1 Certificate/Noncritical 1.5 Level 1 Certificate/Noncritical 1.5 Level 1 Certificate/Noncritical 1.5 Field/At-Risk Student 1.5 Field/At-Risk Student 1.5 Field/At-Risk Student 1.5 Level 1 Certificate/Critical Field/Not 1.5 Level 1 Certificate/Critical Field/Not 1.5 Level 1 Certificate/Critical Field/Not 1.5 At-Risk Student 1.5 At-Risk Student 1.5 At-Risk Student 1.5 Level 1 Certificate/Critical Field/At-Risk 2.0 Level 1 Certificate/Critical Field/At-Risk 2.0 Level 1 Certificate/Critical Field/At-Risk 2.0 Student 2.0 Student 2.0 Student 2.0 Level 2 Certificate/Noncritical Field/Not 1.5 Level 2 Certificate/Noncritical Field/Not 1.5 Level 2 Certificate/Noncritical Field/Not 1.5 At-Risk Student 1.5 At-Risk Student 1.5 At-Risk Student 1.5 Level 2 Certificate/Noncritical 2.0 Level 2 Certificate/Noncritical 2.0 Level 2 Certificate/Noncritical 2.0 Field/At-Risk Student 2.0 Field/At-Risk Student 2.0 Field/At-Risk Student 2.0 Level 2 Certificate/Critical Field/Not 2.0 Level 2 Certificate/Critical Field/Not 2.0 Level 2 Certificate/Critical Field/Not 2.0 At-Risk Student 2.0 At-Risk Student 2.0 At-Risk Student 2.0 Level 2 Certificate/Critical Field/At-Risk 2.5 Level 2 Certificate/Critical Field/At-Risk 2.5 Level 2 Certificate/Critical Field/At-Risk 2.5 Student 2.5 Student 2.5 Student 2.5 Associate's Degree/Noncritical Field/Not 2.0 Associate's Degree/Noncritical Field/Not 2.0 Associate's Degree/Noncritical Field/Not 2.0 At-Risk Student 2.0 At-Risk Student 2.0 At-Risk Student 2.0 Associate's Degree/Noncritical Field/At-Risk 2.5 Associate's Degree/Noncritical Field/At-Risk 2.5 Associate's Degree/Noncritical Field/At-Risk 2.5 Student 2.5 Student 2.5 Student 2.5 Associate's Degree/Critical Field/Not 2.5 Associate's Degree/Critical Field/Not 2.5 Associate's Degree/Critical Field/Not 2.5 At-Risk Student 2.5 At-Risk Student 2.5 At-Risk Student 2.5 Associate's Degree/Critical Field/At-Risk 3.0 Associate's Degree/Critical Field/At-Risk 3.0 Associate's Degree/Critical Field/At-Risk 3.0 Student 3.0 Student 3.0 Student 3.0 Student Transfer 2.0 Student Transfer 2.0 Student Transfer 2.0 Sec. 61.9803. PERFORMANCE INCENTIVE FUNDING FOR MEDICAL AND DENTAL UNITS. (a) This section applies only to medical and dental units. (b) For each state fiscal year, the board shall distribute any performance incentive funds appropriated by the legislature for the purposes of this section, and any other funds made available for the purposes of this section, to institutions to which this section applies as follows: (1) 50 percent in proportion to the increase, if any, in the average number of degrees and certificates awarded by, and medical residencies completed at, each institution annually in the two most recent fiscal years from the average number of degrees and certificates awarded by, and medical residencies completed at, that institution annually in the two fiscal years immediately preceding those fiscal years, using the weights assigned to each degree, certificate, or medical residency completion under the table prescribed by Subsection (c); and (2) the remaining 50 percent in proportion to the average number of degrees and certificates awarded by, and medical residencies completed at, each institution annually in the three most recent fiscal years, using the weights assigned to each degree, certificate, or medical residency completion under the table prescribed by Subsection (c). (c) A number of points is assigned for each degree or certificate awarded by, or medical residency completed at, an eligible institution, other than a degree or certificate awarded to or a medical residency completed by an international student, according to the following table: TYPE OF DEGREE OR CERTIFICATE POINTS TYPE OF DEGREE OR CERTIFICATE POINTS TYPE OF DEGREE OR CERTIFICATE POINTS Certificate requiring 30-60 Semester Credit Hours 0.5 Certificate requiring 30-60 Semester Credit Hours 0.5 Certificate requiring 30-60 Semester Credit Hours 0.5 Bachelor's or Master's 1.0 Bachelor's or Master's 1.0 Bachelor's or Master's 1.0 Doctoral following a Master's 1.0 Doctoral following a Master's 1.0 Doctoral following a Master's 1.0 Doctoral following a Bachelor's 2.0 Doctoral following a Bachelor's 2.0 Doctoral following a Bachelor's 2.0 Medical or Dental 2.0 Medical or Dental 2.0 Medical or Dental 2.0 Completed Medical Residency 2.0 Completed Medical Residency 2.0 Completed Medical Residency 2.0 Sec. 61.9804. TEXAS ACADEMIC EXCELLENCE AWARD PROGRAM. (a) In this section: (1) "At-risk student" includes any student who is an at-risk student under Section 61.9801 or 61.9802. (2) "Critical field" includes any field of study designated as a critical field under Section 61.9801 or 61.9802. (3) "End-of-degree examination" means an examination approved by the board for purposes of this section as an effective measure of the knowledge, skill, proficiency, and understanding achieved by a student on completion of a degree program. (4) "Licensing examination" means an examination required for the issuance of a professional or occupational license, except that in regard to an examination required for a medical license, the term applies only to the first two sittings by a student for any examination administered or accepted for that purpose under Subtitle B, Title 3, Occupations Code. (b) The board shall administer the Texas Academic Excellence Award Program, under which the board annually: (1) presents a Texas Academic Excellence Award to each graduate of an institution of higher education whose licensing examination score or end-of-degree examination score exceeds the national average of students' scores on that examination or, if the examination is not administered nationally, exceeds the statewide average of students' scores on that examination; and (2) provides funds to the institutions of higher education from which the award recipients graduated in accordance with Subsection (c). (c) For each state fiscal year, the board shall distribute any funds appropriated by the legislature for the purposes of this subsection, and any other funds made available for purposes of this subsection, to the institutions of higher education from which the Texas Academic Excellence Award recipients for that year graduated, in proportion to the number of degrees awarded by each institution to students receiving the award for that year, weighted according to the weights assigned to the degrees under the table prescribed by Section 61.9801(e), 61.9802(h), or 61.9803(c), as applicable, including any additional weights assigned to students who are at-risk students or who graduated with a degree in a critical field. (d) The board shall hire consultants to assist the board in determining which end-of-degree examinations to approve for purposes of this section. Sec. 61.9805. RULES. The board shall adopt rules for the administration of this subchapter. Sec. 61.9806. REPORT BY INSTITUTIONS TO BOARD. Not later than September 1 of each year, each institution of higher education shall compile and submit to the board, in accordance with rules adopted by the board, a report that includes the following data regarding each student who was awarded a degree or certificate by the institution, completed a medical residency with the institution, or transferred from the institution to a general academic teaching institution other than a public state college, during the preceding state fiscal year: (1) the student's scores on the Scholastic Assessment Test (SAT) and American College Test (ACT); (2) for a student who transferred from the institution without completing a degree or certificate, the number of semester credit hours completed by the student at the institution; (3) the student's grade point average on all course work completed at the institution; (4) whether the student received a grant under the federal Pell Grant program; (5) the age of the student on the date the student initially enrolled in the institution; (6) whether the student initially enrolled in the institution for less than 12 semester credit hours during a fall or spring semester; (7) whether the student is an international student; (8) whether any degree or certificate awarded to the student by the institution is in a field designated as a critical field under Section 61.9801 or Section 61.9802; and (9) any other information required by the board. Sec. 61.9807. REPORT TO BOARD AND LEGISLATURE BY EDUCATION RESEARCH CENTER REGARDING EVALUATION OF POINT ASSIGNMENTS. Each state fiscal biennium, the board shall provide for the evaluation by an education research center established under Section 1.005 of the points assigned under Sections 61.9801, 61.9802, and 61.9803. Not later than June 1 of each even-numbered year, the education research center shall submit to the board and the legislature a written report regarding the center's evaluation under this section, including any recommendations for changes to the points assigned under those sections. SECTION 2. Section 61.0591, Education Code, is repealed. SECTION 3. The Texas Higher Education Coordinating Board shall adopt rules relating to the administration of Subchapter FF, Chapter 61, Education Code, as added by this Act, as soon as practicable after the effective date of this Act. SECTION 4. Section 61.9804, Education Code, as added by this Act, applies beginning with licensing examinations and end-of-degree examinations administered on or after September 1, 2011. SECTION 5. This Act takes effect September 1, 2009. POINTS Noncritical Field/Not At-Risk Student 1.0 Noncritical Field/At-Risk Student 2.0 Critical Field/Not At-Risk Student 2.0 Critical Field/At-Risk Student 3.0 POINTS Level 1 Certificate/Noncritical Field/Not 1.0 At-Risk Student 1.0 Level 1 Certificate/Noncritical 1.5 Field/At-Risk Student 1.5 Level 1 Certificate/Critical Field/Not 1.5 At-Risk Student 1.5 Level 1 Certificate/Critical Field/At-Risk 2.0 Student 2.0 Level 2 Certificate/Noncritical Field/Not 1.5 At-Risk Student 1.5 Level 2 Certificate/Noncritical 2.0 Field/At-Risk Student 2.0 Level 2 Certificate/Critical Field/Not 2.0 At-Risk Student 2.0 Level 2 Certificate/Critical Field/At-Risk 2.5 Student 2.5 Associate's Degree/Noncritical Field/Not 2.0 At-Risk Student 2.0 Associate's Degree/Noncritical Field/At-Risk 2.5 Student 2.5 Associate's Degree/Critical Field/Not 2.5 At-Risk Student 2.5 Associate's Degree/Critical Field/At-Risk 3.0 Student 3.0 Student Transfer 2.0 TYPE OF DEGREE OR CERTIFICATE POINTS Certificate requiring 30-60 Semester Credit Hours 0.5 Bachelor's or Master's 1.0 Doctoral following a Master's 1.0 Doctoral following a Bachelor's 2.0 Medical or Dental 2.0 Completed Medical Residency 2.0