Texas 2013 83rd Regular

Texas Senate Bill SB215 Enrolled / Bill

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                    S.B. No. 215


 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.  Section 52.39, Education Code, is amended to
 read as follows:
 Sec. 52.39.  DEFAULT; SUIT. When any person who has received
 or cosigned as a guarantor for a loan authorized by this chapter has
 failed or refused to make as many as six monthly payments due in
 accordance with an executed note, then the full amount of the
 remaining principal and interest becomes due and payable
 immediately, and the amount due, the person's name and [his] last
 known address, and other necessary information shall be reported by
 the board to the attorney general. Suit for the remaining sum shall
 be instituted by the attorney general, [or any county or district
 attorney acting for him, in the county of the person's residence,
 the county in which is located the institution at which the person
 was last enrolled, or in Travis County,] unless the attorney
 general finds reasonable justification for delaying suit and so
 advises the board in writing.  Venue for a suit arising under this
 section is exclusively conferred on a court of competent
 jurisdiction in Travis County.
 SECTION 4.  Subchapter A, Chapter 56, Education Code, is
 amended by adding Section 56.009 to read as follows:
 Sec. 56.009.  FINANCIAL ASSISTANCE FOR STUDENTS ENROLLED AT
 WGU TEXAS OR SIMILAR ONLINE COLLEGES OR UNIVERSITIES. (a)  In this
 section, "general academic teaching institution" and "private or
 independent institution of higher education" have the meanings
 assigned by Section 61.003.
 (b)  The Texas Higher Education Coordinating Board shall, in
 consultation with representatives of the coordinating board's
 financial aid advisory committee, representatives of financial aid
 offices of WGU Texas and any similar nonprofit, tax-exempt,
 regionally accredited college or university operating in
 accordance with a memorandum of understanding with this state
 pursuant to an executive order issued by the governor and offering
 competency-based, exclusively online or other distance education,
 and representatives of financial aid offices of institutions of
 higher education and private or independent institutions of higher
 education offering online or other distance education courses and
 programs similar to those offered by WGU Texas or any similar
 nonprofit colleges or universities:
 (1)  conduct a study regarding, and prepare proposed
 draft legislation for, the creation of a state-funded student
 financial assistance program:
 (A)  that is available only to students of
 nonprofit, tax-exempt, regionally accredited colleges or
 universities domiciled in this state that offer competency-based,
 exclusively online or other distance education; and
 (B)  under which the highest priority is given to
 awarding grants to those eligible students who demonstrate the
 greatest financial need; and
 (2)  not later than October 1, 2014, submit to each
 standing committee of the legislature with primary jurisdiction
 over higher education a report of the results of the study conducted
 under Subdivision (1), together with the proposed draft legislation
 prepared under that subdivision.
 (c)  This section expires January 1, 2016.
 SECTION 5.  Subdivisions (2) and (3), Section 56.301,
 Education Code, are amended to read as follows:
 (2)  "Eligible institution" means a general academic
 teaching [an] institution or a medical and dental unit [of higher
 education] that offers one or more undergraduate degree or
 certification programs.  The term does not include a public state
 college.
 (3)  "General academic teaching institution,"
 "institution of higher education," "medical and dental unit,"
 "public ["Public] junior college," "public state college," and
 "public technical institute" have the meanings assigned by Section
 61.003.
 SECTION 6.  Subsection (b), Section 56.302, Education Code,
 is amended to read as follows:
 (b)  The purpose of this subchapter is to provide a grant of
 money to enable eligible students to attend eligible [public]
 institutions [of higher education] in this state.
 SECTION 7.  Subsections (d-1), (e), and (f), Section 56.303,
 Education Code, are amended to read as follows:
 (d-1)  In allocating among eligible [general academic
 teaching] institutions money available for initial TEXAS grants for
 an academic year, the coordinating board shall ensure that each of
 those institutions' proportional [percentage] share of the total
 amount of money for initial grants that is allocated to eligible
 [general academic teaching] institutions under this section
 [subsection] for that year does not, as a result of the number of
 students who establish eligibility at the institution for an
 initial grant under Section 56.3041(2)(A), change from the
 institution's proportional [percentage] share of the total amount
 of money for initial grants that is allocated to those institutions
 under this section [subsection] for the preceding academic year.
 (e)  In determining who should receive a TEXAS grant, the
 coordinating board and the eligible institutions shall give
 priority to awarding TEXAS grants to students who demonstrate the
 greatest financial need and whose expected family contribution, as
 determined according to the methodology used for federal student
 financial aid, does not exceed 60 percent of the average statewide
 amount of tuition and required fees described by Section
 56.307(a).  In giving priority based on financial need as required
 by this subsection to students who meet the requirements for the
 highest priority as provided by Subsection (f), an eligible [a
 general academic teaching] institution shall determine financial
 need according to the relative expected family contribution of
 those students, beginning with students who have the lowest
 expected family contribution.
 (f)  Beginning with TEXAS grants awarded for the 2013-2014
 academic year, in determining who should receive an initial TEXAS
 grant, each eligible [general academic teaching] institution, in
 addition to giving priority as provided by Subsection (e), shall
 give highest priority to students who meet the eligibility criteria
 described by Section 56.3041(2)(A).  If there is money available in
 excess of the amount required to award an initial TEXAS grant to all
 students meeting those criteria, an eligible [a general academic
 teaching] institution shall make awards to other students who meet
 the eligibility criteria described by Section 56.304(a)(2)(A),
 provided that the institution continues to give priority to
 students as provided by Subsection (e).
 SECTION 8.  Subsections (a) and (e-1), Section 56.304,
 Education Code, are amended to read as follows:
 (a)  To be eligible initially for a TEXAS grant, a person who
 graduated from high school before May 1, 2013, must:
 (1)  be a resident of this state as determined by
 coordinating board rules;
 (2)  meet either of the following academic
 requirements:
 (A)  be a graduate of a public or accredited
 private high school in this state who graduated not earlier than the
 1998-1999 school year and who completed the recommended or advanced
 high school curriculum established under Section 28.002 or 28.025
 or its equivalent; or
 (B)  have received an associate degree from a
 public or private institution of higher education not earlier than
 May 1, 2001;
 (3)  meet financial need requirements as defined by the
 coordinating board;
 (4)  be enrolled in a baccalaureate [an undergraduate]
 degree [or certificate] program at an eligible institution;
 (5)  be enrolled as:
 (A)  an entering undergraduate student for at
 least three-fourths of a full course load for an entering
 undergraduate student, as determined by the coordinating board, not
 later than the 16th month after the date of the person's graduation
 from high school; or
 (B)  an entering student for at least
 three-fourths of a full course load for an undergraduate student as
 determined by the coordinating board, not later than the 12th month
 after the month the person receives an associate degree from a
 public or private institution of higher education;
 (6)  have applied for any available financial aid or
 assistance; and
 (7)  comply with any additional nonacademic
 requirement adopted by the coordinating board under this
 subchapter.
 (e-1)  If a person is initially awarded a TEXAS grant during
 or after the 2005 fall semester, unless the person is provided
 additional time during which the person may receive a TEXAS grant
 under Subsection (e-2), the person's eligibility for a TEXAS grant
 ends on:
 (1)  the fifth anniversary of the initial award of a
 TEXAS grant to the person, if the person is enrolled in a degree [or
 certificate] program of four years [or less]; or
 (2)  the sixth anniversary of the initial award of a
 TEXAS grant to the person, if the person is enrolled in a degree
 program of more than four years.
 SECTION 9.  Section 56.3041, Education Code, is amended to
 read as follows:
 Sec. 56.3041.  INITIAL ELIGIBILITY OF PERSON GRADUATING FROM
 HIGH SCHOOL ON OR AFTER MAY 1, 2013[, AND ENROLLING IN A GENERAL
 ACADEMIC TEACHING INSTITUTION].  To [Notwithstanding Section
 56.304(a), to] be eligible initially for a TEXAS grant, a person
 graduating from high school on or after May 1, 2013, and enrolling
 in an eligible [a general academic teaching] institution must:
 (1)  be a resident of this state as determined by
 coordinating board rules;
 (2)  meet the academic requirements prescribed by
 Paragraph (A), (B), [or] (C), or (D) as follows:
 (A)  be a graduate of a public or accredited
 private high school in this state who completed the recommended
 high school program established under Section 28.025 or its
 equivalent and have accomplished any two or more of the following:
 (i)  graduation under the advanced high
 school program established under Section 28.025 or its equivalent,
 successful completion of the course requirements of the
 international baccalaureate diploma program, or earning of the
 equivalent of at least 12 semester credit hours of college credit in
 high school through courses described in Sections 28.009(a)(1),
 (2), and (3);
 (ii)  satisfaction of the Texas Success
 Initiative (TSI) college readiness benchmarks prescribed by the
 coordinating board under Section 51.3062(f) on any assessment
 instrument designated by the coordinating board under Section
 51.3062(c) [or (e)] or qualification for an exemption as described
 by Section 51.3062(p), (q), or (q-1);
 (iii)  graduation in the top one-third of
 the person's high school graduating class or graduation from high
 school with a grade point average of at least 3.0 on a four-point
 scale or the equivalent; or
 (iv)  completion for high school credit of
 at least one advanced mathematics course following the successful
 completion of an Algebra II course, as permitted by Section
 28.025(b-3), or at least one advanced career and technical course,
 as permitted by Section 28.025(b-2);
 (B)  have received an associate degree from a
 public or private institution of higher education; [or]
 (C)  be an undergraduate student who has:
 (i)  previously attended another
 institution of higher education;
 (ii)  received an initial Texas Educational
 Opportunity Grant under Subchapter P for the 2014 fall semester or a
 subsequent academic term;
 (iii)  completed at least 24 semester credit
 hours at any institution or institutions of higher education; and
 (iv)  earned an overall grade point average
 of at least 2.5 on a four-point scale or the equivalent on all
 course work previously attempted; or
 (D)  if sufficient money is available, meet the
 eligibility criteria described by Section 56.304(a)(2)(A);
 (3)  meet financial need requirements established by
 the coordinating board;
 (4)  be enrolled in an undergraduate degree or
 certificate program at an eligible [the general academic teaching]
 institution;
 (5)  except as provided under rules adopted under
 Section 56.304(h), be enrolled as:
 (A)  an entering undergraduate student for at
 least three-fourths of a full course load, as determined by the
 coordinating board, not later than the 16th month after the
 calendar month in which the person graduated from high school;
 (B)  an entering undergraduate student who
 entered military service not later than the first anniversary of
 the date the person graduated from high school and who enrolled for
 at least three-fourths of a full course load, as determined by the
 coordinating board, at the eligible [general academic teaching]
 institution not later than 12 months after being honorably
 discharged from military service; [or]
 (C)  a continuing undergraduate student for at
 least three-fourths of a full course load, as determined by the
 coordinating board, not later than the 12th month after the
 calendar month in which the person received an associate degree
 from a public or private institution of higher education; or
 (D)  an undergraduate student described by
 Subdivision (2)(C) who has never previously received a TEXAS grant;
 (6)  have applied for any available financial aid or
 assistance; and
 (7)  comply with any additional nonacademic
 requirements adopted by the coordinating board under this
 subchapter.
 SECTION 10.  Subsections (b) and (d), Section 56.3042,
 Education Code, are amended to read as follows:
 (b)  The coordinating board or the eligible institution may
 require the student to forgo or repay the amount of an initial TEXAS
 grant awarded to the student as described by Subsection (a) or (a-1)
 if the student fails to meet the eligibility requirements described
 by Subsection (a) or (a-1) [of Section 56.304(a)(2)(A),
 56.3041(2)(A), 56.304(a)(2)(B), or 56.3041(2)(B)], as applicable
 to the student, after the issuance of the available high school or
 college transcript.
 (d)  A person who receives an initial TEXAS grant under
 Subsection (a) or (a-1) but does not satisfy the applicable
 eligibility requirement that the person was considered to have
 satisfied under the applicable subsection and who is not required
 to forgo or repay the amount of the grant under Subsection (b) may
 become eligible to receive a subsequent TEXAS grant under Section
 56.305 only by satisfying the associate degree requirement
 prescribed by Section 56.304(a)(2)(B) or 56.3041(2)(B), as
 applicable to the person, in addition to the requirements of
 Section 56.305 at the time the person applies for the subsequent
 grant.
 SECTION 11.  Subsection (a), Section 56.305, Education Code,
 is amended to read as follows:
 (a)  After initially qualifying for a TEXAS grant, a person
 may continue to receive a TEXAS grant during each semester or term
 in which the person is enrolled at an eligible institution only if
 the person:
 (1)  meets financial need requirements as defined by
 the coordinating board;
 (2)  is enrolled in a baccalaureate [an undergraduate]
 degree [or certificate] program at an eligible institution;
 (3)  is enrolled for at least three-fourths of a full
 course load for an undergraduate student, as determined by the
 coordinating board;
 (4)  makes satisfactory academic progress toward a
 baccalaureate [an undergraduate] degree [or certificate]; and
 (5)  complies with any additional nonacademic
 requirement adopted by the coordinating board.
 SECTION 12.  Section 56.306, Education Code, is amended to
 read as follows:
 Sec. 56.306.  GRANT USE. A person receiving a TEXAS grant
 may use the money to pay any usual and customary cost of attendance
 at an eligible institution [of higher education] incurred by the
 student. The institution may disburse all or part of the proceeds
 of a TEXAS grant directly to an eligible person only if the tuition
 and required fees incurred by the person at the institution have
 been paid.
 SECTION 13.  Subsections (a), (d-1), (i-1), and (j), Section
 56.307, Education Code, are amended to read as follows:
 (a)  The amount of a TEXAS grant for a semester or term for a
 person enrolled full-time at an eligible institution [other than an
 institution covered by Subsection (c) or (d)] is an [the] 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 degree program would be
 charged for that semester or term at general academic teaching
 institutions.
 (d-1)  The coordinating board shall determine the average
 statewide tuition and fee amounts for a semester or term of the next
 academic year for purposes of this section by using the amounts of
 tuition and required fees that will be charged by the [applicable]
 eligible institutions for that semester or term in that academic
 year.  The board may estimate the amount of the charges for a
 semester or term in the next academic year by an institution if the
 relevant information is not yet available to the board.
 (i-1)  A public institution of higher education may elect to
 award a TEXAS grant to any student in an amount that is less than the
 applicable amount established under Subsection (a)[, (c), (d),] or
 (e).
 (j)  A public institution of higher education shall use other
 available sources of financial aid, other than a loan, to cover any
 difference in the amount of a TEXAS grant awarded to the student and
 the actual amount of tuition and required fees at the institution if
 the difference results from:
 (1)  a reduction in the amount of a TEXAS grant under
 Subsection (i-1); or
 (2)  a deficiency in the amount of the grant as
 established under Subsection (a)[, (c), (d),] or (e), as
 applicable, to cover the full amount of tuition and required fees
 charged to the student by the institution.
 SECTION 14.  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 15.  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 16.  Section 56.453, Education Code, is amended by
 adding Subsections (d), (e), and (f) to read as follows:
 (d)  The coordinating board, in collaboration with eligible
 institutions and other appropriate entities, shall adopt and
 implement measures to:
 (1)  improve student participation in the Texas
 B-On-time loan program, including strategies to better inform
 students and prospective students about the program; and
 (2)  improve the rate of student satisfaction of the
 requirements for obtaining Texas B-On-time loan forgiveness.
 (e)  The coordinating board, in collaboration with eligible
 institutions and appropriate nonprofit or college access
 organizations, shall:
 (1)  educate students regarding the eligibility
 requirements for forgiveness of Texas B-On-time loans;
 (2)  ensure that students applying for or receiving a
 Texas B-On-time loan understand their responsibility to repay any
 portion of the loan that is not forgiven;
 (3)  ensure that students who are required to repay
 Texas B-On-time loans receive and understand information regarding
 loan default prevention strategies; and
 (4)  through an in-person or online loan counseling
 module, provide loan repayment and default prevention counseling to
 students receiving Texas B-On-time loans.
 (f)  Notwithstanding Subsection (e)(4), the following
 eligible institutions shall provide the loan repayment and default
 prevention counseling described by that subdivision to all Texas
 B-On-time loan recipients enrolled at those institutions:
 (1)  each institution with a Texas B-On-time loan
 default rate that exceeds the statewide average default rate for
 such loans; and
 (2)  each institution with a Texas B-On-time loan
 forgiveness rate that is less than 50 percent of the statewide
 average forgiveness rate for such loans.
 SECTION 17.  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 18.  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 19.  Subsections (a), (b), and (f), 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.
 (f)  If in any academic year the amount of money in the Texas
 B-On-time student loan account, other than money appropriated to
 the account exclusively for loans at eligible institutions that are
 private or independent institutions of higher education, is
 insufficient to provide the loans in the amount determined under
 Subsection (a) to all eligible persons at eligible institutions
 that are institutions of higher education [in amounts specified by
 this section], the coordinating board shall determine the amount of
 that available money and shall allocate that amount to those
 eligible institutions in proportion to the amount of tuition set
 aside by [number of full-time equivalent undergraduate students
 enrolled at] each of those institutions under Section 56.465 for
 the preceding academic year, and each of those institutions shall
 determine the amount of each loan awarded at that institution, not
 to exceed the amount determined under Subsection (a).  In the manner
 prescribed by the coordinating board for purposes of this
 subsection, each eligible institution that is a private or
 independent institution of higher education is entitled to receive
 an allocation only from the general revenue appropriations made for
 that academic year to eligible private or independent institutions
 of higher education for the purposes of this subchapter. Each
 institution shall use the money allocated to award Texas B-On-time
 loans to eligible students enrolled at the institution selected
 according to financial need.
 SECTION 20.  Subsection (a), Section 56.460, Education Code,
 is amended to read as follows:
 (a)  The coordinating board, in consultation with all
 eligible institutions, shall prepare materials designed to inform
 prospective students, their parents, and high school counselors
 about the program and eligibility for a Texas B-On-time loan. The
 coordinating board shall distribute to each eligible institution
 and to each school district a copy of the materials prepared [rules
 adopted] under this subchapter.
 SECTION 21.  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 22.  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 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,
 August 27, 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 23.  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 24.  Subsection (a), Section 58.002, Education Code,
 is amended to read as follows:
 (a)  In this chapter:
 (1)  "Resident physician" means a person who is
 appointed a resident physician by a school of medicine in The
 University of Texas System, the Texas Tech University System, The
 Texas A&M University System, or the University of North Texas
 System or by the Baylor College of Medicine [one of the schools of
 medicine listed in Section 58.001 of this code] and who:
 (A)  has received a Doctor of Medicine or a Doctor
 of Osteopathic Medicine degree from the Baylor College of Medicine
 or from an approved school of medicine [one of the schools listed in
 Section 58.001 of this code]; or
 (B)  is a citizen of Texas and has received a
 Doctor of Medicine or a Doctor of Osteopathic Medicine degree from
 some other school of medicine that is accredited by the Liaison
 Committee on Medical Education or by the Bureau of Professional
 Education of the American Osteopathic Association.
 (2)  ["Primary teaching hospital" means a hospital at
 which one of the schools listed in Section 58.001 of this code
 educates and trains both resident physicians and undergraduate
 medical students.
 [(3)]  "Compensation" includes:
 (A)  stipends;
 (B)  payments, if any, for services rendered; and
 (C)  fringe benefits when applied to payments to
 or for the benefit of resident physicians.
 SECTION 25.  Section 61.002, Education Code, is amended by
 adding Subsection (d) to read as follows:
 (d)  The Texas Higher Education Coordinating Board has only
 the powers expressly provided by law or necessarily implied from an
 express grant of power.  Any function or power not expressly granted
 to the board by this code or other law in regard to the
 administration, organization, control, management, jurisdiction,
 or governance of an institution of higher education is reserved to
 and shall be performed by the governing board of the institution,
 the applicable system administration, or the institution of higher
 education.
 SECTION 26.  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 27.  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 28.  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 29.  Subchapter B, Chapter 61, Education Code, is
 amended by adding Section 61.0331 to read as follows:
 Sec. 61.0331.  NEGOTIATED RULEMAKING REQUIRED. The board
 shall engage institutions of higher education in a negotiated
 rulemaking process as described by Chapter 2008, Government Code,
 when adopting a policy, procedure, or rule relating to:
 (1)  an admission policy regarding the common admission
 application under Section 51.762, a uniform admission policy under
 Section 51.807, graduate and professional admissions under Section
 51.843, or the transfer of credit under Section 61.827;
 (2)  the allocation or distribution of funds, including
 financial aid or other trusteed funds under Section 61.07761;
 (3)  the reevaluation of data requests under
 Section 51.406; or
 (4)  compliance monitoring under Section 61.035.
 SECTION 30.  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.  The board by rule may prescribe the timing and format
 of the notification required by this subsection.  The board by rule
 shall require a private or independent institution of higher
 education to provide to the board the institution's external audit
 involving funds administered by the board.  The private or
 independent institution of higher education's external audit must
 comply with the board's rules for auditing those funds.
 (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 31.  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 32.  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.
 (h)  In approving a degree or certificate program under this
 section, the board:
 (1)  for a doctoral program, may not consider
 undergraduate graduation or persistence rates; and
 (2)  for a baccalaureate degree program proposed to be
 offered by a public junior college previously authorized by the
 board to offer baccalaureate degree programs under Section
 130.0012:
 (A)  shall approve the degree program within 60
 days after the date the board receives notice of the degree program
 if the degree program:
 (i)  is approved by the governing board of
 the junior college district; and
 (ii)  is not an engineering program; and
 (B)  is considered to have approved the degree
 program after the date described by Paragraph (A) if the conditions
 of that paragraph are satisfied.
 SECTION 33.  Subchapter C, Chapter 61, Education Code, is
 amended by adding Section 61.05151 to read as follows:
 Sec. 61.05151.  SEMESTER CREDIT HOURS REQUIRED FOR ASSOCIATE
 DEGREE. (a)  To earn an associate degree, a student may not be
 required by an institution of higher education to complete more
 than the minimum number of semester credit hours required for the
 degree by the Southern Association of Colleges and Schools or its
 successor unless the institution determines that there is a
 compelling academic reason for requiring the completion of
 additional semester credit hours for the degree.
 (b)  The board may review one or more of an institution's
 associate degree programs to ensure compliance with this section.
 (c)  Subsection (a) does not apply to an associate degree
 awarded by an institution to a student enrolled in the institution
 before the 2015 fall semester.  This subsection does not prohibit
 the institution from reducing the number of semester credit hours
 the student must complete to receive the degree.
 SECTION 34.  Section 61.052, Education Code, is amended by
 amending Subsections (a) and (b) and adding Subsection (b-1) to
 read as follows:
 (a)  Each governing board shall submit to the board once each
 year on dates designated by the board a comprehensive list by
 department, division, and school of all courses, together with a
 description of content, scope, and prerequisites of all these
 courses, that will be offered by each institution under the
 supervision of that governing board during the following academic
 year. The list for each institution must also specifically
 identify any course included in the common course numbering system
 under Section 61.832 that has been added to or removed from the
 institution's list for the current academic year, and the board
 shall distribute that information as necessary to accomplish the
 purposes of Section 61.832.
 (b)  After the comprehensive list of courses is submitted by
 a governing board under Subsection (a) [of this section], the
 governing board shall submit on dates designated by the board any
 changes in the comprehensive list of courses to be offered,
 including any changes relating to offering a course included in the
 common course numbering system.
 (b-1)  Each governing board must certify at the time of
 submission under Subsection (a) that the institution does not:
 (1)  prohibit the acceptance of transfer credit based
 solely on the accreditation of the sending institution; or
 (2)  include language in any materials published by the
 institution, whether in printed or electronic form, suggesting that
 such a prohibition exists.
 SECTION 35.  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 36.  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 37.  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 38.  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 39.  Subsections (b), (d), and (e), Section 61.0572,
 Education Code, are amended to read as follows:
 (b)  The board shall:
 (1)  determine formulas for space utilization in all
 educational and general buildings and facilities at institutions of
 higher education;
 (2)  devise and promulgate methods to assure maximum
 daily and year-round use of educational and general buildings and
 facilities, including but not limited to maximum scheduling of day
 and night classes and maximum summer school enrollment;
 (3)  consider plans for selective standards of
 admission when institutions of higher education approach capacity
 enrollment;
 (4)  require, and assist the public technical
 institutes, public senior colleges and universities, medical and
 dental units, and other agencies of higher education in developing
 long-range campus master plans for campus development;
 (5)  by rule adopt [endorse, or delay until the next
 succeeding session of the legislature has the opportunity to
 approve or disapprove, the proposed purchase of any real property
 by an institution of higher education, except a public junior
 college;
 [(6)  develop and publish] standards[, rules, and
 regulations] to guide the board's review [institutions and agencies
 of higher education in making application for the approval] of new
 construction and the [major] repair and rehabilitation of all
 buildings and facilities regardless of proposed use; and
 (6) [(7)]  ascertain that the board's standards and
 specifications for new construction, repair, and rehabilitation of
 all buildings and facilities are in accordance with Chapter 469,
 Government Code [Article 9102, Revised Statutes].
 (d) [(1)]  The board[, for purposes of state funding,] may
 review purchases of [and approve as an addition to an institution's
 educational and general buildings and facilities inventory any]
 improved real property added to an institution's educational and
 general buildings and facilities inventory [acquired by gifts or
 lease-purchase only if:
 [(A)     the institution requests to place the
 improved real property on its educational and general buildings and
 facilities inventory; and
 [(B)     the value of the improved real property is
 more than $300,000 at the time the institution requests the
 property to be added to the educational and general buildings and
 facilities inventory.
 [(2)     This subsection does not apply to gifts, grants,
 or lease-purchase arrangements intended for clinical or research
 facilities.
 [(e)     Approval of the board is not required to acquire real
 property that is financed by bonds issued under Section 55.17(e)(3)
 or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174,
 55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
 55.17721, except that the board shall review all real property to be
 financed by bonds issued under those sections] to determine whether
 the property meets the standards adopted by the board for cost,
 efficiency, space need, and space use, but the purchase of the
 improved real property is not contingent on board review.
 Standards must be adopted by the board using the negotiated
 rulemaking procedures under Chapter 2008, Government Code.  If the
 property does not meet those standards, the board shall notify the
 governor, the lieutenant governor, the speaker of the house of
 representatives, the governing board of the applicable
 institution, and the Legislative Budget Board.  This subsection
 does not impair the board's authority to collect data relating to
 the improved real property that is added each year to the
 educational and general buildings and facilities inventory of
 institutions of higher education.
 SECTION 40.  Subsections (a) and (b), Section 61.058,
 Education Code, are amended to read as follows:
 (a)  This section does not apply to [Except as provided by
 Subsection (b) of this section, the board shall approve or
 disapprove all new construction and repair and rehabilitation of
 all buildings and facilities at institutions of higher education
 financed from any source provided that:
 [(A)     the board's consideration and determination
 shall be limited to the purpose for which the new or remodeled
 buildings are to be used to assure conformity with approved space
 utilization standards and the institution's approved programs and
 role and mission if the cost of the project is not more than
 $4,000,000, but the board may consider cost factors and the
 financial implications of the project to the state if the total cost
 is in excess of $4,000,000;
 [(B)     the requirement of approval for new
 construction applies only to projects the total cost of which is in
 excess of $4,000,000;
 [(C)     the requirement of approval for major repair
 and rehabilitation of buildings and facilities applies only to a
 project the total cost of which is more than $4,000,000;
 [(D)     the requirement of approval or disapproval
 by the board does not apply to any new construction or major repair
 and rehabilitation project that is specifically approved by the
 legislature;
 [(E)     the requirement of approval by the board
 does not apply to a junior college's construction, repair, or
 rehabilitation financed entirely with funds from a source other
 than the state, including funds from ad valorem tax receipts of the
 college, gifts, grants, and donations to the college, and student
 fees; and
 [(F)     the requirement of approval by the board
 does not apply to construction, repair, or rehabilitation of
 privately owned buildings and facilities located on land leased
 from an institution of higher education if the construction,
 repair, or rehabilitation is financed entirely from funds not under
 the control of the institution, and provided further that:
 [(i)  the] buildings and facilities that are
 to be used exclusively for auxiliary enterprises[;] and
 [(ii)  the buildings and facilities] will
 not require appropriations from the legislature for operation,
 maintenance, or repair [unless approval by the board has been
 obtained].
 (b)  The [This section does not apply to construction,
 repair, or rehabilitation financed by bonds issued under Section
 55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174,
 55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
 55.17721, except that the] board may [shall] review all
 construction, repair, or rehabilitation of buildings and
 facilities at institutions of higher education [to be financed by
 bonds issued under those sections] to determine whether the
 construction, rehabilitation, or repair meets the standards
 adopted by board rule for cost, efficiency, space need, and space
 use, but the construction, rehabilitation, or repair is not
 contingent on board review.  Standards must be adopted by the board
 using the negotiated rulemaking procedures under Chapter 2008,
 Government Code.  If the construction, rehabilitation, or repair
 does not meet those standards, the board shall notify the governor,
 the lieutenant governor, the speaker of the house of
 representatives, the governing boards of the applicable
 institutions, and the Legislative Budget Board.  This subsection
 does not impair the board's authority to collect data relating to
 the construction, repair, or rehabilitation of buildings and
 facilities occurring each year at institutions of higher education.
 SECTION 41.  Subchapter C, Chapter 61, Education Code, is
 amended by adding Section 61.05821 to read as follows:
 Sec. 61.05821.  CONDITION OF BUILDINGS AND FACILITIES;
 ANNUAL REPORT REQUIRED. Each institution of higher education,
 excluding each public junior college and excluding other agencies
 of higher education, annually shall report to the governing board
 of the institution information regarding the condition of the
 buildings and facilities of the institution, including information
 concerning deferred maintenance with respect to those buildings and
 facilities as defined by the board.
 SECTION 42.  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 43.  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 44.  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 45.  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 46.  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 47.  Section 61.306, Education Code, is amended by
 adding Subsection (c) to read as follows:
 (c)  The board may not issue a certificate of authority for a
 private postsecondary institution to grant a professional degree or
 to represent that credits earned in this state are applicable
 toward a degree if the institution is chartered in a foreign country
 or has its principal office or primary educational program in a
 foreign country.  In this subsection, "professional degree"
 includes a Doctor of Medicine (M.D.), Doctor of Osteopathy (D.O.),
 Doctor of Dental Surgery (D.D.S.), Doctor of Veterinary Medicine
 (D.V.M.), Juris Doctor (J.D.), and Bachelor of Laws (LL.B.).
 SECTION 48.  The heading to Section 61.822, Education Code,
 is amended to read as follows:
 Sec. 61.822.  TRANSFER OF CREDITS; CORE CURRICULUM.
 SECTION 49.  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 50.  Subchapter C, Chapter 62, Education Code, is
 amended to read as follows:
 SUBCHAPTER C. TEXAS COMPETITIVE KNOWLEDGE [RESEARCH UNIVERSITY
 DEVELOPMENT] FUND
 Sec. 62.051.  DEFINITIONS. In this subchapter:
 (1)  "Eligible institution" means an institution of
 higher education that:
 (A)  is designated as a research university [or
 emerging research university] under the coordinating board's
 accountability system and, for any three consecutive state fiscal
 years beginning on or after September 1, 2010, made total annual
 research expenditures in an average annual amount of not less than
 $450 million; or
 (B)  is designated as an emerging research
 university under the coordinating board's accountability system
 and, for any three consecutive state fiscal years beginning on or
 after September 1, 2010, made total annual research expenditures in
 an average annual amount of not less than $50 million.
 (2)  "Fund" means the Texas competitive knowledge fund.
 (3)  "Institution of higher education" has the meaning
 assigned by Section 61.003.
 Sec. 62.052.  PURPOSE. The purpose of this subchapter is to
 provide funding to eligible research universities and emerging
 research universities to support faculty to ensure excellence in
 instruction and research [for the recruitment and retention of
 highly qualified faculty and the enhancement of research
 productivity at those universities].
 Sec. 62.053.  FUND [FUNDING]. (a)  The Texas competitive
 knowledge fund consists of money [For each state fiscal year, the
 coordinating board shall distribute any funds] appropriated by the
 legislature for the purposes of this subchapter[, and any other
 funds made available for the purposes of this subchapter,] to
 eligible institutions [based on the average amount of total
 research funds expended by each institution annually during the
 three most recent state fiscal years, according to the following
 rates:
 [(1)     at least $1 million for every $10 million of the
 average annual amount of those research funds expended by the
 institution, if that average amount for the institution is $50
 million or more; and
 [(2)     at least $500,000 for every $10 million of the
 average annual amount of those research funds expended by the
 institution, if that average amount for the institution is less
 than $50 million].
 (b)  For purposes of this section [Subsection (a)], the
 amount of total research funds expended by an eligible institution
 in a state fiscal year is the amount of those funds as reported to
 the coordinating board by the institution for that fiscal year,
 subject to any adjustment by the coordinating board in accordance
 with the standards and accounting methods the coordinating board
 prescribes for purposes of this section.  [If the funds available
 for distribution for a state fiscal year under Subsection (a) are
 not sufficient to provide the amount specified by Subsection (a)
 for each eligible institution or exceed the amount sufficient for
 that purpose, the available amount shall be distributed in
 proportion to the total amount to which each institution is
 otherwise entitled under Subsection (a).]
 Sec. 62.0535.  INITIAL CONTRIBUTION. For the first state
 fiscal biennium in which an eligible institution receives an
 appropriation under this subchapter, the institution's other
 general revenue appropriations shall be reduced by $5 million for
 the biennium or the amount of the institution's appropriation under
 this subchapter for the biennium. The bill making the
 appropriation must expressly identify the purpose for which the
 appropriations were reduced in accordance with this section.
 [Sec.   62.054.     RULES. The coordinating board shall adopt
 rules for the administration of this subchapter, including any
 rules the coordinating board considers necessary regarding the
 submission to the coordinating board by eligible institutions of
 any student data required for the coordinating board to carry out
 its duties under this subchapter.]
 SECTION 51.  The heading to Chapter 142, Education Code, is
 amended to read as follows:
 CHAPTER 142.  NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
 ADVANCED TECHNOLOGY PROGRAM
 SECTION 52.  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 53.  The heading to Section 142.002, Education Code,
 is amended to read as follows:
 Sec. 142.002.  NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
 PURPOSE.
 SECTION 54.  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 55.  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 56.  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 57.  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 58.  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 59.  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 60.  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 61.  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 62.  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; Subsections (c) and (d), Section 56.307; Subsection
 (d), Section 56.456; Subsections (c) and (d), Section 56.459;
 Subsection (e), Section 56.407; Subsections (b), (c), (d), and (e),
 Section 58.002; Section 61.0573; and Subsection (c), Section
 61.058;
 (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, 57.50, 58.001, 58.003, 58.004, and
 58.005;
 (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 63.  The changes in law made by this Act to Section
 52.39, Education Code, apply only to a suit filed under that section
 on or after the effective date of this Act. A suit filed under
 Section 52.39, Education Code, before the effective date of this
 Act is governed by the law in effect on the date the suit is filed,
 and the former law is continued in effect for that purpose.
 SECTION 64.  (a)  The change in law made by this Act to
 Subchapter M, Chapter 56, Education Code, applies beginning with
 TEXAS grants awarded for the 2014 fall semester.  Grants awarded for
 a semester or term before the 2014 fall semester are governed by the
 applicable law in effect immediately before the effective date of
 this Act, and the former law is continued in effect for that
 purpose.
 (b)  Notwithstanding Subsection (a) of this section, a
 student who first receives a TEXAS grant for attendance at a public
 junior college, public state college, or public technical institute
 for a semester or other academic term before the 2014 fall semester
 may continue to receive a TEXAS grant under Subchapter M, 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 grant under the former law, and, if eligible,
 may continue to receive a TEXAS grant if the student enrolls at an
 eligible institution under Subchapter M, Chapter 56, Education
 Code, as amended by this Act. The Texas Higher Education
 Coordinating Board shall adopt rules to administer this subsection
 and shall notify each student who receives a TEXAS grant in the
 2013-2014 academic year of the provisions of this subsection.
 SECTION 65.  (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 66.  The changes in law made by this Act to Section
 61.052, Education Code, apply to the comprehensive lists of courses
 offered by public institutions of higher education beginning with
 lists required to be submitted for the 2014-2015 academic year.
 Course lists for an academic year before that academic year are
 covered by the law in effect before the effective date of this Act,
 and that law is continued in effect for that purpose.
 SECTION 67.  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 68.  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 69.  This Act takes effect September 1, 2013.
 ______________________________ ______________________________
 President of the Senate Speaker of the House
 I hereby certify that S.B. No. 215 passed the Senate on
 April 11, 2013, by the following vote:  Yeas 30, Nays 1;
 May 20, 2013, Senate refused to concur in House amendments and
 requested appointment of Conference Committee; May 21, 2013, House
 granted request of the Senate; May 25, 2013, Senate adopted
 Conference Committee Report by the following vote:  Yeas 31,
 Nays 0.
 ______________________________
 Secretary of the Senate
 I hereby certify that S.B. No. 215 passed the House, with
 amendments, on May 16, 2013, by the following vote:  Yeas 143,
 Nays 2, one present not voting; May 21, 2013, House granted request
 of the Senate for appointment of Conference Committee;
 May 26, 2013, House adopted Conference Committee Report by the
 following vote:  Yeas 135, Nays 5, two present not voting.
 ______________________________
 Chief Clerk of the House
 Approved:
 ______________________________
 Date
 ______________________________
 Governor