Texas 2013 83rd Regular

Texas Senate Bill SB215 Engrossed / Bill

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                    By: Birdwell, Nichols S.B. No. 215


 A BILL TO BE ENTITLED
 AN ACT
 relating to the continuation and functions of the Texas Higher
 Education Coordinating Board.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Section 61.0511, Education Code, is transferred
 to Subchapter G, Chapter 51, Education Code, and redesignated as
 Section 51.359, Education Code, to read as follows:
 Sec. 51.359 [61.0511].  ROLE AND MISSION STATEMENT. Each
 institution of higher education shall develop a statement regarding
 the role and mission of the institution reflecting the three
 missions of higher education:  teaching, research, and public
 service.
 SECTION 2.  Section 51.406, Education Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  At least every five years, the Texas Higher Education
 Coordinating Board shall reevaluate its rules and policies to
 ensure the continuing need for the data requests the coordinating
 board imposes on university systems, institutions of higher
 education, or private or independent institutions of higher
 education.  The coordinating board shall engage in negotiated
 rulemaking under Chapter 2008, Government Code, with those entities
 in identifying unnecessary requests or ways to streamline those
 requests.  The coordinating board shall eliminate data requests
 identified as unnecessary from its rules and policies.  In this
 subsection, "private or independent institution of higher
 education" has the meaning assigned by Section 61.003.
 SECTION 3.  Subdivisions (2) and (3), Section 56.451,
 Education Code, are amended to read as follows:
 (2)  "Eligible institution" means:
 (A)  a general academic teaching institution,
 other than a public state college [an institution of higher
 education]; [or]
 (B)  a medical and dental unit that offers
 baccalaureate degrees; or
 (C)  a private or independent institution of
 higher education that offers baccalaureate degree programs.
 (3)  "General academic teaching institution," "medical
 and dental unit," "private or independent institution of higher
 education," and "public state [junior] college," [and "public
 technical institute"] have the meanings assigned by Section 61.003.
 SECTION 4.  Subsection (b), Section 56.452, Education Code,
 is amended to read as follows:
 (b)  The purpose of this subchapter is to provide no-interest
 loans to eligible students to enable those students to earn
 baccalaureate degrees at [attend all] public and private or
 independent institutions of higher education in this state.
 SECTION 5.  Section 56.455, Education Code, is amended to
 read as follows:
 Sec. 56.455.  INITIAL ELIGIBILITY FOR LOAN.  To be eligible
 initially for a Texas B-On-time loan, a person must:
 (1)  be a resident of this state under Section 54.052 or
 be entitled, as a child of a member of the armed forces of the United
 States, to pay tuition at the rate provided for residents of this
 state under Section 54.241;
 (2)  meet one of the following academic requirements:
 (A)  be a graduate of a public or private high
 school in this state who graduated not earlier than the 2002-2003
 school year under the recommended or advanced high school program
 established under Section 28.025(a) or its equivalent;
 (B)  be a graduate of a high school operated by the
 United States Department of Defense who:
 (i)  graduated from that school not earlier
 than the 2002-2003 school year; and
 (ii)  at the time of graduation from that
 school was a dependent child of a member of the armed forces of the
 United States; or
 (C)  have received an associate degree from an
 [eligible] institution of higher education or private or
 independent institution of higher education not earlier than May 1,
 2005;
 (3)  be enrolled for a full course load for an
 undergraduate student, as determined by the coordinating board, in
 a baccalaureate [an undergraduate] degree [or certificate] program
 at an eligible institution;
 (4)  be eligible for federal financial aid, except that
 a person is not required to meet any financial need requirement
 applicable to a particular federal financial aid program; and
 (5)  comply with any additional nonacademic
 requirement adopted by the coordinating board under this
 subchapter.
 SECTION 6.  Subsection (a), Section 56.456, Education Code,
 is amended to read as follows:
 (a)  After initially qualifying for a Texas B-On-time loan, a
 person may continue to receive a Texas B-On-time loan for each
 semester or term in which the person is enrolled at an eligible
 institution only if the person:
 (1)  is enrolled for a full course load for an
 undergraduate student, as determined by the coordinating board, in
 a baccalaureate [an undergraduate] degree [or certificate] program
 at an eligible institution;
 (2)  is eligible for federal financial aid, except that
 a person is not required to meet any financial need requirement
 applicable to a particular federal financial aid program;
 (3)  makes satisfactory academic progress toward a
 degree [or certificate] as determined by the institution at which
 the person is enrolled, if the person is enrolled in the person's
 first academic year at the institution;
 (4)  completed at least 75 percent of the semester
 credit hours attempted by the person in the most recent academic
 year and has a cumulative grade point average of at least 2.5 on a
 four-point scale or the equivalent on all coursework previously
 attempted at institutions of higher education or private or
 independent institutions of higher education, if the person is
 enrolled in any academic year after the person's first academic
 year; and
 (5)  complies with any additional nonacademic
 requirement adopted by the coordinating board.
 SECTION 7.  Subsections (a) and (b), Section 56.459,
 Education Code, are amended to read as follows:
 (a)  The amount of a Texas B-On-time loan for a semester or
 term for a student enrolled full-time at an eligible institution
 other than an institution covered by Subsection (b)[, (c), or (d)]
 is an amount determined by the coordinating board as the average
 statewide amount of tuition and required fees that a resident
 student enrolled full-time in a baccalaureate [an undergraduate]
 degree program would be charged for that semester or term at general
 academic teaching institutions.
 (b)  The amount of a Texas B-On-time loan for a student
 enrolled full-time at a private or independent institution of
 higher education is an amount determined by the coordinating board
 as the average statewide amount of tuition and required fees that a
 resident student enrolled full-time in a baccalaureate [an
 undergraduate] degree program would be charged for that semester or
 term at general academic teaching institutions.
 SECTION 8.  Sections 56.461 and 56.462, Education Code, are
 amended to read as follows:
 Sec. 56.461.  LOAN PAYMENT DEFERRED. The repayment of a
 Texas B-On-time loan received by a student under this subchapter is
 deferred as long as the student remains continuously enrolled in a
 baccalaureate [an undergraduate] degree [or certificate] program
 at an eligible institution.
 Sec. 56.462.  LOAN FORGIVENESS. A student who receives a
 Texas B-On-time loan shall be forgiven the amount of the student's
 loan if the student is awarded a baccalaureate [an undergraduate
 certificate or] degree at an eligible institution with a cumulative
 grade point average of at least 3.0 on a four-point scale or the
 equivalent:
 (1)  within:
 (A)  four calendar years after the date the
 student initially enrolled in an [the] institution of higher
 education or private or independent institution of higher education
 [or another eligible institution] if[:
 [(i)     the institution is a four-year
 institution; and
 [(ii)]  the student is awarded a degree
 other than a degree in engineering, architecture, or any other
 program determined by the coordinating board to require more than
 four years to complete; or
 (B)  five calendar years after the date the
 student initially enrolled in an [the] institution of higher
 education or private or independent institution of higher education
 [or another eligible institution] if[:
 [(i)     the institution is a four-year
 institution; and
 [(ii)]  the student is awarded a degree in
 engineering, architecture, or any other program determined by the
 coordinating board to require more than four years to complete; [or
 [(C)     two years after the date the student
 initially enrolled in the institution or another eligible
 institution if the institution is a public junior college or public
 technical institute;] or
 (2)  with a total number of semester credit hours,
 including transfer credit hours and excluding hours earned
 exclusively by examination, hours earned for a course for which the
 student received credit toward the student's high school academic
 requirements, and hours earned for developmental coursework that an
 institution of higher education required the student to take under
 Section 51.3062 or under the former provisions of Section 51.306,
 that is not more than six hours more than the minimum number of
 semester credit hours required to complete the [certificate or]
 degree.
 SECTION 9.  Section 61.0211, Education Code, is amended to
 read as follows:
 Sec. 61.0211.  SUNSET PROVISION.  The Texas Higher Education
 Coordinating Board is subject to Chapter 325, Government Code
 (Texas Sunset Act).  Unless continued in existence as provided by
 that chapter, the board is abolished and this chapter expires
 September 1, 2025 [2013].
 SECTION 10.  Subsection (d), Section 61.025, Education Code,
 is amended to read as follows:
 (d)  The board shall develop and implement policies that
 provide the public with a reasonable opportunity to appear before
 the board and to speak on any issue under the jurisdiction of the
 board, including a policy to specifically provide, as an item on the
 board's agenda at each meeting, an opportunity for public comment
 before the board makes a decision on any agenda item.
 SECTION 11.  Section 61.026, Education Code, is amended to
 read as follows:
 Sec. 61.026.  COMMITTEES AND ADVISORY COMMITTEES.  (a)  The
 chair [chairman] may appoint committees from the board's membership
 as the chair [he] or the board considers [may find] necessary [from
 time to time].
 (b)  The board may appoint advisory committees from outside
 its membership as the board considers [it may deem] necessary.
 Chapter 2110, Government Code, applies to an advisory committee
 appointed by the chair or the board.  The board shall adopt rules,
 in compliance with Chapter 2110, Government Code, regarding an
 advisory committee that primarily functions to advise the board,
 including rules governing an advisory committee's purpose, tasks,
 reporting requirements, and abolishment date.  A board member may
 not serve on a board advisory committee.
 (c)  The board may adopt rules under this section regarding
 an advisory committee's:
 (1)  size and quorum requirements;
 (2)  qualifications for membership, including
 experience requirements and geographic representation;
 (3)  appointment procedures;
 (4)  terms of service; and
 (5)  compliance with the requirements for open meetings
 under Chapter 551, Government Code.
 (d)  Each advisory committee must report its recommendations
 directly to the board.
 SECTION 12.  Section 61.033, Education Code, is amended to
 read as follows:
 Sec. 61.033.  [NEGOTIATED RULEMAKING;] ALTERNATIVE DISPUTE
 RESOLUTION. (a)  The board shall develop and implement a policy to
 encourage the use of[:
 [(1)     negotiated rulemaking procedures under Chapter
 2008, Government Code, for the adoption of board rules; and
 [(2)]  appropriate alternative dispute resolution
 procedures under Chapter 2009, Government Code, to assist in the
 resolution of internal and external disputes under the board's
 jurisdiction.
 (b)  The board's procedures relating to alternative dispute
 resolution must conform, to the extent possible, to any model
 guidelines issued by the State Office of Administrative Hearings
 for the use of alternative dispute resolution by state agencies.
 (c)  The board shall designate a trained person to[:
 [(1)     coordinate the implementation of the policy
 adopted under Subsection (a);
 [(2)]  serve as a resource for any training needed to
 implement the procedures for negotiated rulemaking or alternative
 dispute resolution[; and
 [(3)     collect data concerning the effectiveness of
 those procedures, as implemented by the board].
 SECTION 13.  Subchapter B, Chapter 61, Education Code, is
 amended by adding Section 61.0331 to read as follows:
 Sec. 61.0331.  NEGOTIATED RULEMAKING REQUIRED. If the board
 is required by this code or other law to consult or cooperate with
 institutions of higher education in the development of a policy,
 procedure, or rule, the board must engage the institutions in a
 negotiated rulemaking process as described by Chapter 2008,
 Government Code, before the policy, procedure, or rule may take
 effect.
 SECTION 14.  Subchapter B, Chapter 61, Education Code, is
 amended by adding Section 61.035 to read as follows:
 Sec. 61.035.  COMPLIANCE MONITORING.  (a)  The board by a
 negotiated rulemaking process in accordance with Chapter 2008,
 Government Code, shall establish an agency-wide, risk-based
 compliance monitoring function for:
 (1)  funds allocated by the board to institutions of
 higher education, private or independent institutions of higher
 education, and other entities, including student financial
 assistance funds, academic support grants, and any other grants, to
 ensure that those funds are distributed in accordance with
 applicable law and board rule; and
 (2)  data reported by institutions of higher education
 to the board and used by the board for funding or policymaking
 decisions, including data used for formula funding allocations, to
 ensure the data is reported accurately.
 (b)  For purposes of this section, student financial
 assistance includes grants, scholarships, loans, and work-study.
 (c)  After considering potential risks and the board's
 resources, the board shall review a reasonable portion of the total
 funds allocated by the board and of data reported to the board.  The
 board shall use various levels of monitoring, according to risk,
 ranging from checking reported data for errors and inconsistencies
 to conducting comprehensive audits, including site visits.
 (d)  In developing the board's risk-based approach to
 compliance monitoring under this section, the board shall consider
 the following factors relating to an institution of higher
 education or private or independent institution of higher
 education:
 (1)  the amount of student financial assistance or
 grant funds allocated to the institution by the board;
 (2)  whether the institution is required to obtain and
 submit an independent audit;
 (3)  the institution's internal controls;
 (4)  the length of time since the institution's last
 desk review or site visit;
 (5)  past misuse of funds or misreported data by the
 institution;
 (6)  in regard to data verification, whether the data
 reported to the board by the institution is used for determining
 funding allocations; and
 (7)  other factors as considered appropriate by the
 board.
 (e)  The board shall train compliance monitoring staff to
 ensure that the staff has the ability to monitor both funds
 compliance and data reporting accuracy.  Program staff in other
 board divisions who conduct limited monitoring and contract
 administration shall coordinate with the compliance monitoring
 function to identify risks and avoid duplication.
 (f)  If the board determines through its compliance
 monitoring function that funds awarded by the board to an
 institution of higher education or private or independent
 institution of higher education have been misused or misallocated
 by the institution, the board shall present its determination to
 the institution's governing board and provide an opportunity for a
 response from the institution.  Following the opportunity for
 response, the board shall report its determination and the
 institution's response, together with any recommendations, to the
 institution's governing board, the governor, and the Legislative
 Budget Board.
 (g)  If the board determines through its compliance
 monitoring function that an institution of higher education has
 included errors in the institution's data reported for formula
 funding, the board:
 (1)  for a public junior college, may adjust the
 appropriations made to the college for a fiscal year as necessary to
 account for the corrected data; and
 (2)  for a general academic teaching institution, a
 medical and dental unit, or a public technical institute, shall
 calculate a revised appropriation amount for the applicable fiscal
 year based on the corrected data and report that revised amount to
 the governor and Legislative Budget Board for consideration as the
 basis for budget execution or other appropriate action, and to the
 comptroller.
 (h)  In conducting the compliance monitoring function under
 this section, the board may partner with internal audit offices at
 institutions of higher education and private or independent
 institutions of higher education, as institutional resources
 allow, to examine the institutions' use of funds allocated by, and
 data reported to, the board.  To avoid duplication of effort and
 assist the board in identifying risk, an internal auditor at an
 institution shall notify the board of any audits conducted by the
 auditor involving funds administered by the board or data reported
 to the board.  The board by rule may determine the timing and format
 of the notification required by this subsection.
 (i)  The board may seek technical assistance from the state
 auditor in establishing the compliance monitoring function under
 this section.  The state auditor may periodically audit the board's
 compliance monitoring function as the state auditor considers
 appropriate.
 (j)  In this section:
 (1)  "Desk review" means an administrative review by
 the board that is based on information reported by an institution of
 higher education or private or independent institution of higher
 education, including supplemental information required by the
 board for the purposes of compliance monitoring, except that the
 term does not include information or accompanying notes gathered by
 the board during a site visit.
 (2)  "Site visit" means an announced or unannounced
 in-person visit by a representative of the board to an institution
 of higher education or private or independent institution of higher
 education for the purposes of compliance monitoring.
 SECTION 15.  Section 61.051, Education Code, is amended by
 amending Subsections (a), (a-1), (a-2), and (a-3) and adding
 Subsection (a-5) to read as follows:
 (a)  The board represents [shall represent] the highest
 authority in the state in matters of public higher education and is
 charged with the duty to take an active part in promoting quality
 education throughout [in the various regions of] the state by:
 (1)  providing a statewide perspective to ensure the
 efficient and effective use of higher education resources and to
 eliminate unnecessary duplication;
 (2)  developing and evaluating progress toward a
 long-range master plan for higher education and providing analysis
 and recommendations to link state spending for higher education
 with the goals of the long-range master plan;
 (3)  collecting and making accessible data on higher
 education in the state and aggregating and analyzing that data to
 support policy recommendations;
 (4)  making recommendations to improve the efficiency
 and effectiveness of transitions, including between high school and
 postsecondary education, between institutions of higher education
 for transfer purposes, and between postsecondary education and the
 workforce; and
 (5)  administering programs and trusteed funds for
 financial aid and other grants as necessary to achieve the state's
 long-range goals and as directed by the legislature. [The board
 shall be responsible for assuring that there is no discrimination
 in the distribution of programs and resources throughout the state
 on the basis of race, national origin, or sex.]
 (a-1)  The board shall develop a long-range [five-year]
 master plan for higher education in this state.  The [five-year]
 plan shall:
 (1)  establish long-term, measurable goals and provide
 strategies for implementing those goals;
 (2)  assess the higher education needs of each region
 of the state;
 (3)  provide for regular evaluation and revision of the
 plan, as the board considers necessary, to ensure the relevance of
 goals and strategies; and
 (4)  take into account the resources of private or
 independent institutions of higher education [in this state].
 (a-2)  The board shall establish methods for obtaining input
 from stakeholders and the general public when developing or
 revising [periodically review and revise] the long-range
 [five-year] master plan developed under Subsection (a-1). [As a
 specific element of its review, the board shall identify and
 analyze the degree to which the plan reflects the continuing higher
 education needs of this state, as well as any policy changes
 necessary to improve overall implementation of the plan and the
 fiscal impact of those changes. The board shall establish
 procedures for monitoring the board's implementation of the plan,
 including an analysis of the degree to which its current activities
 support implementation of the plan and any change in board rules or
 practices necessary to improve implementation of the plan. The
 board shall identify additional strategies necessary to achieve the
 goals of the plan, emphasizing implementation by institutions of
 higher education and specific recommendations for the different
 regions of the state. The board shall notify each institution of
 higher education of all strategies for implementing the plan.]
 (a-3)  Not later than December 1 of each even-numbered year,
 the board shall prepare and deliver a report to the governor, the
 lieutenant governor, the speaker of the house of representatives,
 and the standing committees of the senate and house of
 representatives with primary jurisdiction over higher education
 [The board shall inform the legislature on matters pertaining to
 higher education, including the state's activities in the Board of
 Control for Southern Regional Education, and shall report to the
 legislature not later than January 1 of each odd-numbered year on
 the state of higher education in Texas]. In the [biennial] report,
 the board shall assess the state's progress in meeting the goals
 established [stated] in the long-range master plan developed under
 Subsection (a-1) and [shall] recommend legislative action,
 including statutory or funding changes, to assist the state in
 meeting those goals. The report must include updates on
 implementation strategies provided for in the long-range master
 plan [the analyses performed in connection with the board's
 periodic review] under Subsection (a-1) [(a-2)].
 (a-5)  In conjunction with development of the long-range
 master plan under Subsection (a-1), the board shall evaluate the
 role and mission of each general academic teaching institution,
 other than a public state college, to ensure that the roles and
 missions of the institutions collectively contribute to the state's
 goals identified in the master plan.
 SECTION 16.  Section 61.0512, Education Code, is amended to
 read as follows:
 Sec. 61.0512.  BOARD APPROVAL OF ACADEMIC [NEW DEGREE]
 PROGRAMS[; NOTIFICATION TO BOARD]. (a)  A new degree or
 certificate program may be added at an institution of higher
 education only with specific prior approval of the board.  A new
 degree or certificate program is considered approved if the board
 has not completed a review under this section and acted to approve
 or disapprove the proposed program before the first anniversary of
 the date on which an institution of higher education submits a
 completed application to the board.  The board may not summarily
 disapprove a program without completing the review required by this
 section.  The board shall specify by rule the elements that
 constitute a completed application and shall make an administrative
 determination of the completeness of the application not later than
 the fifth business day after receiving the application.  A request
 for additional information in support of an application that has
 been determined administratively complete does not toll the period
 within which the application is considered approved under this
 section.  The board may not summarily disapprove a program without
 completing the review required by this section.
 (b)  At the time an institution of higher education [a public
 senior college or university] begins preliminary planning for a new
 degree program [or a new organizational unit to administer a new
 degree program], the institution must [college or university shall]
 notify the board before the institution may carry out that
 planning[.    In the implementation of this subsection, the board may
 not require additional reports from the institutions].
 (c)  The board shall review each degree or certificate
 program offered by an institution of higher education at the time
 the institution requests to implement a new program to ensure that
 the program:
 (1)  is needed by the state and the local community and
 does not unnecessarily duplicate programs offered by other
 institutions of higher education or private or independent
 institutions of higher education;
 (2)  has adequate financing from legislative
 appropriation, funds allocated by the board, or funds from other
 sources;
 (3)  has necessary faculty and other resources to
 ensure student success; and
 (4)  meets academic standards specified by law or
 prescribed by board rule, including rules adopted by the board for
 purposes of this section, or workforce standards established by the
 Texas Workforce Investment Council.
 (d)  The board may review the number of degrees or
 certificates awarded through a degree or certificate program every
 four years or more frequently, at the board's discretion.
 (e)  The board shall review each degree or certificate
 program offered by an institution of higher education at least
 every 10 years after a new program is established using the criteria
 prescribed by Subsection (c).
 (f)  The board may not order the consolidation or elimination
 of any degree or certificate program offered by an institution of
 higher education but may, based on the board's review under
 Subsections (d) and (e), recommend such action to an institution's
 governing board. If an institution's governing board does not
 accept recommendations to consolidate or eliminate a degree or
 certificate program, the university system or, where a system does
 not exist, the institution, must identify the programs recommended
 for consolidation or elimination on the next legislative
 appropriations request submitted by the system or institution.
 (g)  An institution of higher education may offer off-campus
 courses for credit within the state or distance learning courses
 only with specific prior approval of the board. An institution must
 certify to the board that a course offered for credit outside the
 state meets the board's academic criteria. An institution shall
 include the certification in submitting any other reports required
 by the board.
 SECTION 17.  The heading to Section 61.055, Education Code,
 is amended to read as follows:
 Sec. 61.055.  [INITIATION OF NEW DEPARTMENTS, SCHOOLS, AND
 PROGRAMS;] PARTNERSHIPS OR AFFILIATIONS.
 SECTION 18.  Subsection (a), Section 61.055, Education Code,
 is amended to read as follows:
 (a)  The board shall encourage cooperative programs and
 agreements among institutions of higher education, including
 programs and agreements relating to degree offerings, research
 activities, and library and computer sharing.  [Except as otherwise
 provided by law, a new department, school, or degree or certificate
 program approved by the board or its predecessor, the Texas
 Commission on Higher Education, may not be initiated by any
 institution of higher education until the board has made a written
 finding that the department, school, or degree or certificate
 program is adequately financed by legislative appropriation, by
 funds allocated by the board, or by funds from other sources.]
 SECTION 19.  Subsection (l), Section 61.051, Education Code,
 is transferred to Subchapter C, Chapter 61, Education Code,
 redesignated as Section 61.0571, Education Code, and amended to
 read as follows:
 Sec. 61.0571.  BOARD ASSISTANCE TO INSTITUTIONS.
 (a) [(l)]  The board shall advise and offer technical assistance on
 the request of any institution of higher education or system
 administration.
 SECTION 20.  Subsection (n), Section 61.051, Education Code,
 is transferred to Section 61.0571, Education Code, as added by this
 Act, and redesignated as Subsection (b), Section 61.0571, Education
 Code, to read as follows:
 (b) [(n)]  The board shall develop guidelines for
 institutional reporting of student performance.
 SECTION 21.  Subsection (a-4), Section 61.051, Education
 Code, is transferred to Subchapter C, Chapter 61, Education Code,
 redesignated as Section 61.0661, Education Code, and amended to
 read as follows:
 Sec. 61.0661.  OPPORTUNITIES FOR GRADUATE MEDICAL
 EDUCATION. (a) [(a-4)]  The board shall conduct [include in the
 five-year master plan developed under Subsection (a-1)] an
 assessment of the adequacy of opportunities for graduates of
 medical schools in this state to enter graduate medical education
 in this state.  The assessment must:
 (1)  compare the number of first-year graduate medical
 education positions available annually with the number of medical
 school graduates;
 (2)  include a statistical analysis of recent trends in
 and projections of the number of medical school graduates and
 first-year graduate medical education positions in this state;
 (3)  develop methods and strategies for achieving a
 ratio for the number of first-year graduate medical education
 positions to the number of medical school graduates in this state of
 at least 1.1 to 1;
 (4)  evaluate current and projected physician
 workforce needs of this state, by total number and by specialty, in
 the development of additional first-year graduate medical
 education positions; and
 (5)  examine whether this state should ensure that a
 first-year graduate medical education position is created in this
 state for each new medical student position established by a
 medical and dental unit.
 (b)  Not later than December 1 of each even-numbered year,
 the board shall report the results of the assessment to the
 governor, the lieutenant governor, the speaker of the house of
 representatives, and the standing committees of the senate and
 house of representatives with primary jurisdiction over higher
 education.
 SECTION 22.  Subsection (h), Section 61.051, Education Code,
 is transferred to Subchapter C, Chapter 61, Education Code,
 redesignated as Section 61.0662, Education Code, and amended to
 read as follows:
 Sec. 61.0662.  INFORMATION ON RESEARCH CONDUCTED BY
 INSTITUTIONS. (a) [(h)     The board shall make continuing studies of
 the needs of the state for research and designate the institutions
 of higher education to perform research as needed.]  The board
 shall [also] maintain an inventory of all institutional and
 programmatic research activities being conducted by the various
 institutions of higher education, whether state-financed or not.
 (b)  Once a year, on dates prescribed by the board, each
 institution of higher education shall report to the board all
 research conducted at that institution during the [last] preceding
 year.
 (c)  All reports required by this section [subsection] shall
 be made subject to the limitations imposed by security regulations
 governing defense contracts for research.
 SECTION 23.  Subchapter C, Chapter 61, Education Code, is
 amended by adding Section 61.069 to read as follows:
 Sec. 61.069.  BOARD ROLE IN ESTABLISHING BEST PRACTICES.
 (a)  The board may administer or oversee a program to identify best
 practices only in cases where funding or other restrictions prevent
 entities other than the board from administering the program.
 (b)  The board may initiate a new pilot project only if other
 entities, including nonprofit organizations and institutions of
 higher education, are not engaging in similar projects or if the
 initiative cannot be performed by another entity.
 (c)  The board may use its position as a statewide
 coordinator to assist with matching nonprofit organizations or
 grant-funding entities with institutions of higher education and
 private or independent institutions of higher education to
 implement proven programs and best practices.
 (d)  The board may compile best practices and strategies
 resulting from its review of external studies for use in providing
 technical assistance to institutions of higher education and as the
 basis for the board's statewide policy recommendations.
 SECTION 24.  Subchapter C, Chapter 61, Education Code, is
 amended by adding Section 61.0763 to read as follows:
 Sec. 61.0763.  STUDENT LOAN DEFAULT PREVENTION AND FINANCIAL
 AID LITERACY PILOT PROGRAM.  (a)  In this section, "career school
 or college" has the meaning assigned by Section 132.001.
 (b)  Not later than January 1, 2014, the board shall
 establish and administer a pilot program at selected postsecondary
 educational institutions to ensure that students of those
 institutions are informed consumers with regard to all aspects of
 student financial aid, including:
 (1)  the consequences of borrowing to finance a
 student's postsecondary education;
 (2)  the financial consequences of a student's academic
 and career choices; and
 (3)  strategies for avoiding student loan deliquency
 and default.
 (c)  The board shall select at least one institution from
 each of the following categories of postsecondary educational
 institutions to participate in the program:
 (1)  general academic teaching institutions;
 (2)  public junior colleges;
 (3)  private or independent institutions of higher
 education; and
 (4)  career schools or colleges.
 (d)  In selecting postsecondary educational institutions to
 participate in the pilot program, the board shall give priority to
 institutions that have a three-year cohort student loan default
 rate, as reported by the United States Department of Education:
 (1)  of more than 20 percent; or
 (2)  that has above average growth as compared to the
 rates of other postsecondary educational institutions in this
 state.
 (e)  The board, in consultation with postsecondary
 educational institutions, shall adopt rules for the administration
 of the pilot program, including rules governing the selection of
 postsecondary educational institutions to participate in the pilot
 program consistent with the requirements of Subsection (d).
 (f)  The board may contract with one or more entities to
 administer the pilot program according to criteria established by
 board rule.
 (g)  Not later than January 1 of each year, beginning in
 2016:
 (1)  the board shall submit a report to the governor,
 the lieutenant governor, and the speaker of the house of
 representatives regarding the outcomes of the pilot program, as
 reflected in the federal student loan default rates reported for
 the participating institutions; and
 (2)  each participating institution shall submit a
 report to the governor, the lieutenant governor, and the speaker of
 the house of representatives regarding the outcomes of the pilot
 program at the institution, as reflected in the federal student
 loan default rate reported for the institution.
 (h)  This section expires December 31, 2020.
 SECTION 25.  Subchapter C, Chapter 61, Education Code, is
 amended by adding Section 61.07761 to read as follows:
 Sec. 61.07761.  FINANCIAL AID AND OTHER TRUSTEED FUNDS
 ALLOCATION. (a)  For any funds trusteed to the board for
 allocation to institutions of higher education and private or
 independent institutions of higher education, including financial
 aid program funds, the board by rule shall:
 (1)  establish and publish the allocation
 methodologies; and
 (2)  develop procedures to verify the accuracy of the
 application of those allocation methodologies by board staff.
 (b)  The board shall engage in negotiated rulemaking as
 described by Chapter 2008, Government Code, in adopting rules under
 this section.
 SECTION 26.  The heading to Section 61.822, Education Code,
 is amended to read as follows:
 Sec. 61.822.  TRANSFER OF CREDITS; CORE CURRICULUM.
 SECTION 27.  Section 61.822, Education Code, is amended by
 amending Subsection (a) and adding Subsection (a-1) to read as
 follows:
 (a)  The board shall encourage the transferability of lower
 division course credit among institutions of higher education.
 (a-1)  The board, with the assistance of advisory committees
 composed of representatives of institutions of higher education,
 shall develop a recommended core curriculum of at least 42 semester
 credit hours, including a statement of the content, component
 areas, and objectives of the core curriculum. At least a majority
 of the members of any advisory committee named under this section
 shall be faculty members of an institution of higher education. An
 institution shall consult with the faculty of the institution
 before nominating or recommending a person to the board as the
 institution's representative on an advisory committee.
 SECTION 28.  Subsection (f), Section 130.0012, Education
 Code, is amended to read as follows:
 (f)  Each public junior college that offers a baccalaureate
 degree program under this section must enter into an articulation
 agreement for the first five years of the program with one or more
 general academic teaching institutions to ensure that students
 enrolled in the degree program have an opportunity to complete the
 degree if the public junior college ceases to offer the degree
 program. The coordinating board may require a general academic
 teaching institution that offers a comparable degree program to
 enter into an articulation agreement with the public junior college
 as provided by this subsection.
 SECTION 29.  Subsection (f), Section 42.0421, Human
 Resources Code, as added by Chapter 82 (S.B. 265), Acts of the 82nd
 Legislature, Regular Session, 2011, is amended to read as follows:
 (f)  The training required by this section must be
 appropriately targeted and relevant to the age of the children who
 will receive care from the individual receiving training and must
 be provided by a person who:
 (1)  is a training provider registered with the Texas
 Early Care and Education Career Development System's Texas Trainer
 Registry that is maintained by the Texas Head Start State
 Collaboration Office;
 (2)  is an instructor at a public or private secondary
 school, an [or at a public or private] institution of higher
 education, as defined by Section 61.003 [61.801], Education Code,
 or a private college or university accredited by a recognized
 accrediting agency who teaches early childhood development or
 another relevant course, as determined by rules adopted by the
 commissioner of education and the commissioner of higher education;
 (3)  is an employee of a state agency with relevant
 expertise;
 (4)  is a physician, psychologist, licensed
 professional counselor, social worker, or registered nurse;
 (5)  holds a generally recognized credential or
 possesses documented knowledge relevant to the training the person
 will provide;
 (6)  is a registered family home care provider or
 director of a day-care center or group day-care home in good
 standing with the department, if applicable, and who:
 (A)  has demonstrated core knowledge in child
 development and caregiving; and
 (B)  is only providing training at the home or
 center in which the provider or director and the person receiving
 training are employed; or
 (7)  has at least two years of experience working in
 child development, a child development program, early childhood
 education, a childhood education program, or a Head Start or Early
 Head Start program and:
 (A)  has been awarded a Child Development
 Associate (CDA) credential; or
 (B)  holds at least an associate's degree in child
 development, early childhood education, or a related field.
 SECTION 30.  The following provisions of the Education Code
 are repealed:
 (1)  Chapters 143, 144, 147, 148, and 152;
 (2)  Subchapters J, M, Q, and X, Chapter 51;
 (3)  Subchapters K, P, Q, U, and W, Chapter 61;
 (4)  Section 51.916; Subsection (f), Section 52.17;
 Section 52.56; Subsection (d), Section 56.456; and Subsections (c)
 and (d), Section 56.459;
 (5)  Subsections (b), (c), (d), (e), (f), (g), (i),
 (j), (k), (m), (o), (p), and (q), Section 61.051; and
 (6)  Subsections (i) and (i-1), Section 61.059;
 Sections 61.0591, 61.0631, and 61.066; Subsection (d), Section
 61.0761; Sections 61.078, 61.088, and 61.660; and Subsection (c),
 Section 62.096.
 SECTION 31.  (a)  The change in law made by this Act in
 amending Subchapter Q, Chapter 56, Education Code, applies
 beginning with Texas B-On-time loans awarded for the 2014-2015
 academic year.
 (b)  Notwithstanding Subsection (a) of this section, a
 student who first receives a Texas B-On-time loan for a semester or
 other academic term before the 2014 fall semester may continue to
 receive Texas B-On-time loans under Subchapter Q, Chapter 56,
 Education Code, as that subchapter existed immediately before the
 effective date of this Act, as long as the student remains eligible
 for a Texas B-On-time loan under the former law, and is entitled to
 obtain forgiveness of the loans as permitted by Section 56.462,
 Education Code, as that section existed immediately before the
 effective date of this Act. The Texas Higher Education
 Coordinating Board shall adopt rules to administer this subsection
 and shall notify each student who receives a Texas B-On-time loan in
 the 2013-2014 academic year of the provisions of this subsection.
 SECTION 32.  The Texas Higher Education Coordinating Board
 shall adopt rules for the administration of Section 61.0763,
 Education Code, as added by this Act, as soon as practicable after
 this Act takes effect.  For that purpose, the coordinating board may
 adopt the initial rules in the manner provided by law for emergency
 rules.
 SECTION 33.  The Texas Higher Education Coordinating Board
 shall adopt rules as required by Section 61.07761, Education Code,
 as added by this Act, as soon as practicable after this Act takes
 effect.  For that purpose, the coordinating board may adopt the
 initial rules in the manner provided by the law for emergency rules.
 SECTION 34.  This Act takes effect September 1, 2013.