83R23629 JRJ-D
By: Birdwell, et al. S.B. No. 215
(Anchia)
Substitute the following for S.B. No. 215: No.
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Higher
Education Coordinating Board, including related changes to the
status and functions of the Texas Guaranteed Student Loan
Corporation.
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 consult with those
entities to identify unnecessary data requests and 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. Subchapter A, Chapter 57, Education Code, is
amended by adding Section 57.011 to read as follows:
Sec. 57.011. STATUS OF TEXAS GUARANTEED STUDENT LOAN
CORPORATION. (a) The Texas Guaranteed Student Loan Corporation is
converted as provided by this section from a public nonprofit
corporation created by general law to a nonprofit corporation under
Chapter 22, Business Organizations Code.
(b) On or immediately after September 1, 2013, to effectuate
the conversion under Subsection (a), the corporation shall file a
certificate of formation with the secretary of state or, if the
secretary of state determines it appropriate, the corporation shall
file a certificate of conversion under Chapter 10, Business
Organizations Code.
(c) The corporation as converted under this section
continues in existence uninterrupted from the date of its creation,
September 1, 1979. The secretary of state shall recognize the
continuous existence of the corporation from that date in the
certificate of formation or certificate of conversion, as
applicable.
(d) The corporation continues to serve as the designated
guaranty agency for the State of Texas under the Higher Education
Act of 1965 (20 U.S.C. Section 1001 et seq.).
(e) Student loan borrower information collected, assembled,
or maintained by the corporation is confidential and is not subject
to public disclosure.
SECTION 10. Section 57.01, Education Code, is transferred
to Section 61.002, Education Code, redesignated as Subsection (c),
Section 61.002, Education Code, and amended to read as follows:
(c) Postsecondary [Sec. 57.01. DECLARATION OF POLICY. The
legislature, giving due consideration to the historical and
continuing interest of the people of the State of Texas in
encouraging deserving and qualified persons to realize their
aspirations for education beyond high school, finds and declares
that postsecondary] education for qualified Texans [those] who
desire to pursue such [an] education [and are properly qualified
therefor] is important to the welfare and security of this state and
the nation and, consequently, is an important public purpose. The
legislature finds and declares that the state can achieve its full
economic and social potential only if every individual has the
opportunity to contribute to the full extent of the individual's
[his or her] capabilities and only when financial barriers to the
individual's [his or her] economic, social, and educational goals
are removed. In order to facilitate the removal of those barriers,
the board, in consultation with one or more nonprofit entities with
experience providing the services on a statewide basis, may [It is,
therefore, the purpose of this chapter to establish the Texas
Guaranteed Student Loan Corporation to:
[(1) administer a guaranteed student loan program to
assist qualified Texas students in receiving a postsecondary
education in this state or elsewhere in the nation; and
[(2)] provide necessary and desirable services
related to financial aid services [the loan program], including
cooperative awareness efforts with appropriate educational and
civic associations designed to disseminate postsecondary education
awareness information, including information regarding available
grant and loan programs and [student financial aid and the Federal
Family Education Loan Program, and other relevant topics including]
the prevention of student loan default.
SECTION 11. 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 12. Subsection (a), Section 61.022, Education Code,
is amended to read as follows:
(a) The board shall consist of nine members appointed by the
governor so as to provide representation from all areas of the state
with the advice and consent of the senate, and as the constitution
provides. One-third of the members must possess experience in the
field of higher education governance or administration so that the
board includes experience from both general academic teaching
institutions and public junior colleges or public technical
institutes. In making an appointment under this section, the
governor may consider appointing a person with experience in higher
education governance or administration from a private or
independent institution of higher education. Members of the board
serve staggered six-year terms. The terms of one-third of the
members expire August 31 of each odd-numbered year.
SECTION 13. 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 14. 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 15. Subchapter B, Chapter 61, Education Code, is
amended by adding Section 61.0331 to read as follows:
Sec. 61.0331. NEGOTIATED RULEMAKING REQUIRED. (a) The
board shall engage affected institutions of higher education in a
negotiated rulemaking process as described by Chapter 2008,
Government Code, if:
(1) at any time the board determines that the
development of a policy, procedure, or rule is likely to be
controversial; or
(2) not later than the 15th day after the date notice
of a potential policy, procedure, or rule is provided to the
affected institutions, in the Texas Register or otherwise, at least
one-half of the affected institutions request negotiated
rulemaking and agree to share the costs of the process, including
those of the facilitator.
(b) The board shall determine the sharing of costs under
this section by rule.
(c) This section expires September 1, 2017.
SECTION 16. 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, in
consultation with affected stakeholders, shall adopt rules to
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, or to the institution's chief
executive officer if the institution is a private or independent
institution of higher education, 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 or chief executive officer, as
applicable, 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. A private or independent institution of higher
education shall notify the board of any external audits involving
funds administered by 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 17. 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 18. 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 for approval 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.
(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 19. 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 20. 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 21. 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 22. 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 23. 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 24. 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 25. 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 26. 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 delinquency
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 27. 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 consult with affected stakeholders
before adopting rules under this section.
SECTION 28. The heading to Section 61.822, Education Code,
is amended to read as follows:
Sec. 61.822. TRANSFER OF CREDITS; CORE CURRICULUM.
SECTION 29. 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 30. The heading to Chapter 142, Education Code, is
amended to read as follows:
CHAPTER 142. NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
ADVANCED TECHNOLOGY PROGRAM
SECTION 31. Section 142.001, Education Code, is amended by
amending Subdivisions (1) and (4) and adding Subdivisions (1-a) and
(6) to read as follows:
(1) "Applied research" means research directed at
gaining the knowledge or understanding necessary to meet a specific
and recognized need, including the discovery of new scientific
knowledge that has specific objectives relating to products or
processes.
(1-a) "Basic research" means research the primary
object of which is to gain a fuller fundamental knowledge of the
subject under study.
(4) "Research program [Program]" means the Norman
Hackerman advanced research program established under this
chapter.
(6) "Technology program" means the advanced
technology program established under this chapter.
SECTION 32. The heading to Section 142.002, Education Code,
is amended to read as follows:
Sec. 142.002. NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
PURPOSE.
SECTION 33. Section 143.002, Education Code, is transferred
to Chapter 142, Education Code, redesignated as Section 142.0025,
Education Code, and amended to read as follows:
Sec. 142.0025 [143.002]. ADVANCED TECHNOLOGY PROGRAM
[ESTABLISHMENT]; PURPOSE. (a) It is essential to the state's
economic growth that the state [it] exploit the potential of
technology to advance the development and growth of technology and
that industry be promoted and expanded. The advanced technology
program is established as a means to accomplish this purpose.
(b) Providing appropriated funds to faculty members of
institutions of higher education [public] and private or
independent institutions of higher education to conduct applied
research is important to the state's welfare and, consequently, is
an important public purpose for the expenditure of public funds
because the applied research will enhance the state's economic
growth by:
(1) educating the state's scientists and engineers;
(2) creating new products and production processes;
and
(3) contributing to the application of science and
technology to state businesses.
SECTION 34. Section 142.003, Education Code, is amended to
read as follows:
Sec. 142.003. ADMINISTRATION; GUIDELINES AND PROCEDURES.
(a) The coordinating board shall administer the technology program
and the research program.
(b) The coordinating board shall appoint an advisory
committee that consists of experts in the specified research areas
of both programs to advise the coordinating board regarding the
coordinating board's development of research priorities,
guidelines, and procedures for the selection of specific projects
at eligible institutions.
(c) The guidelines and procedures developed for the
research program by the coordinating board must:
(1) provide for awards on a competitive, peer review
basis for specific projects at eligible institutions; and
(2) require that, as a condition of receiving an
award, an eligible institution must use a portion of the award to
support, in connection with the project for which the award is made,
basic research conducted by:
(A) graduate or undergraduate students, if the
eligible institution is a medical and dental unit; or
(B) undergraduate students, if the eligible
institution is any other eligible institution [of higher
education].
(d) The guidelines and procedures developed for the
technology program by the coordinating board must:
(1) provide for determining whether an institution of
higher education or private or independent institution of higher
education qualifies as an eligible institution for the purposes of
the technology program by demonstrating exceptional capability to
attract federal, state, and private funding for scientific and
technical research and having an exceptionally strong research
staff and the necessary equipment and facilities; and
(2) provide for awards on a competitive, peer review
basis for specific projects at eligible institutions.
(e) The coordinating board shall encourage projects under
the technology program that leverage funds from other sources and
projects that propose innovative, collaborative efforts:
(1) across academic disciplines;
(2) among two or more eligible institutions; or
(3) between an eligible institution or institutions
and private industry.
SECTION 35. Section 143.003, Education Code, is transferred
to Chapter 142, Education Code, redesignated as Section 142.0035,
Education Code, and amended to read as follows:
Sec. 142.0035 [143.003]. TECHNOLOGY PROGRAM: PRIORITY
RESEARCH AREAS. The technology program may provide support for
faculty members to conduct research in areas determined by an
advisory panel appointed by the coordinating board. Initial
research areas shall include: agriculture, biotechnology,
biomedicine, energy, environment, materials science,
microelectronics, aerospace, marine science, aquaculture,
telecommunications, manufacturing science, environmental issues
affecting the Texas-Mexico border region, the reduction of
industrial, agricultural, and domestic water use, recycling, and
related disciplines. The advisory committee appointed under
Section 142.003(b) [panel] may add or delete priority research
areas as the advisory committee [panel] considers warranted.
SECTION 36. Section 142.004, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsections (c-1) and
(f) to read as follows:
(a) The programs created under this chapter are [program is]
funded by appropriations and by gifts, grants, and donations made
for purposes of each [the] program.
(c) The funds allocated [appropriated] for the research
program may be expended to support the particular projects for
which an award is made and may not be expended for the general
support of ongoing research at an eligible institution or for the
construction or remodeling of a facility.
(c-1) The funds allocated for the technology program may be:
(1) expended to support particular research projects
for which an award is made, and may not be expended for the general
support of ongoing research and instruction at an eligible
institution or for the construction or remodeling of a facility;
and
(2) used to match a grant provided by private industry
for a particular collaborative research project with an eligible
institution.
(f) The advisory committee appointed under Section
142.003(b) shall determine when and to what extent funds
appropriated under this chapter will be allocated to each program
under this chapter unless the legislature specifies a division in
the General Appropriations Act.
SECTION 37. Sections 142.006 and 142.007, Education Code,
are amended to read as follows:
Sec. 142.006. MERIT REVIEW. (a) The coordinating board
shall appoint a committee that consists of experts in the specified
research areas to evaluate the research program's effectiveness and
report its findings to the coordinating board not later than
January 31 of each odd-numbered year.
(b) The coordinating board shall appoint a committee
consisting of representatives of higher education and private
enterprise advanced technology research organizations to evaluate
the technology program's effectiveness and report its findings to
the coordinating board not later than January 31 of each
odd-numbered year.
Sec. 142.007. CONFIDENTIALITY. Information submitted as
part of a pre-proposal or proposal or related to the evaluation and
selection of research projects to be funded by the research program
or technology program is confidential unless made public by
coordinating board rule.
SECTION 38. Section 143.0051, Education Code, is
transferred to Chapter 142, Education Code, and redesignated as
Section 142.009, Education Code, to read as follows:
Sec. 142.009 [143.0051]. APPLIED RESEARCH FOR CLEAN COAL
PROJECT AND OTHER PROJECTS FOR ELECTRICITY GENERATION. The
coordinating board shall use money available for the purpose from
legislative appropriations, including gifts, grants, and
donations, to support at one or more eligible institutions applied
research related to:
(1) the development, construction, and operation in
this state of a clean coal project, as defined by Section 5.001,
Water Code; or
(2) electricity generation using lignite coal
deposits in this state or integrated gasification combined cycle
technology.
SECTION 39. 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 40. 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 41. The following provisions of the Education Code
are repealed:
(1) Chapters 144, 147, 148, and 152;
(2) Subchapters J, M, Q, and X, Chapter 51;
(3) Subchapters B and D, Chapter 57;
(4) Subchapters K, P, Q, U, and W, Chapter 61;
(5) Section 51.916; Subsection (f), Section 52.17;
Section 52.56; Subsection (d), Section 56.456; and Subsections (c)
and (d), Section 56.459;
(6) Subdivisions (1) and (3), Section 57.02;
(7) Sections 57.41, 57.42, 57.43, 57.44, 57.45, 57.46,
57.461, 57.47, 57.471, 57.481, and 57.50;
(8) Subsections (b), (c), (d), (e), (f), (g), (i),
(j), (k), (m), (o), (p), and (q), Section 61.051;
(9) 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; and
(10) Sections 143.001, 143.004, 143.005, 143.007, and
143.008.
SECTION 42. (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 43. The change in law made by Subsection (a),
Section 61.022, Education Code, as amended by this Act, regarding
the qualifications of members of the Texas Higher Education
Coordinating Board does not affect the entitlement of a member
serving on the coordinating board immediately before the effective
date of this Act to continue to serve as a member of the
coordinating board for the remainder of the member's term. As the
terms of coordinating board members expire, the governor shall
appoint or reappoint a member who has the required experience until
the composition of the coordinating board meets the requirements
under Subsection (a), Section 61.022, Education Code, as amended by
this Act.
SECTION 44. 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 45. 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 46. This Act takes effect September 1, 2013.