By: Zaffirini S.B. No. 34
A BILL TO BE ENTITLED
AN ACT
relating to outcomes-based funding for general academic teaching
institutions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 62, Education Code, is
amended to read as follows:
SUBCHAPTER D. OUTCOMES-BASED FUNDING FOR GENERAL ACADEMIC
TEACHING INSTITUTIONS [PERFORMANCE INCENTIVE FUNDING]
Sec. 62.071. DEFINITIONS. In this subchapter:
(1) "At-risk student" means an undergraduate student
of an eligible institution:
(A) whose score on the Scholastic Assessment Test
(SAT) or the American College Test (ACT) is less than the national
mean score of students' scores on that test;
(B) who has been awarded a grant under the
federal Pell Grant program;
(C) who was 20 years of age or older on the date
the student initially enrolled in the institution;
(D) who is enrolled as a part-time student; or
(E) who did not receive a high school diploma but
received a high school equivalency certificate[ within the last six
years].
(2) ["Critical field" means:
[(A) the field of engineering, computer science,
mathematics, physical science, allied health, nursing, or teacher
certification in a field of science or mathematics; and
[(B) any other field of study identified as a critical
field by the coordinating board in "Closing the Gaps," the state's
master plan for higher education.
[(3) "Eligible institution" means a general academic
teaching institution other than a public state college.
[(4)] "General academic teaching institution" has [and
"public state college" have] the meaning [meanings] assigned by
Section 61.003.
Sec. 62.072. BIENNIAL DISTRIBUTION OF FUNDS TO GENERAL
ACADEMIC TEACHING INSTITUTIONS BASED ON OUTCOMES METRICS POINTS.
Except as provided by Section 62.073, for each state fiscal
biennium, the coordinating board shall distribute any funds
appropriated to the coordinating board by the legislature for the
purposes of this subchapter, and any other funds made available for
the purposes of this subchapter, to general academic teaching
institutions in an amount based on each institution's average
number of baccalaureate degrees awarded in a year during the
preceding three years according to the following distribution:
(1) $500 for each baccalaureate degree awarded to a
student who is not an at-risk student; and
(2) $1,000 for each baccalaureate degree awarded to an
at-risk student.
[FUNDING. (a) For each state fiscal year, the coordinating
board shall distribute any performance incentive funds
appropriated by the legislature for purposes of this subchapter,
and any other funds made available for the purposes of this
subchapter, to eligible institutions as follows:
[(1) 50 percent to be distributed among eligible
institutions in proportion to the increase, if any, in the average
number of degrees awarded annually by each institution in the two
most recent fiscal years from the average number of degrees awarded
annually by that institution in the two fiscal years immediately
preceding those fiscal years, using the weights assigned to each
degree under the table prescribed by Subsection (b); and
[(2) the remaining 50 percent to be distributed among
eligible institutions in proportion to the average number of
degrees awarded annually by each institution in the three most
recent fiscal years, using the weights assigned to each degree
under the table prescribed by Subsection (b).
[(b) A number of points is assigned for each degree awarded
by an eligible institution according to the following table:
[POINTS
[Noncritical Field/Not At-Risk Student 1.0
[Noncritical Field/At-Risk Student 2.0
[Critical Field/Not At-Risk Student 2.0
[Critical Field/At-Risk Student 3.0]
Sec. 62.073. DISTRIBUTION OF FUNDS CONTINGENT ON FULL
FUNDING OF BASE FORMULA FUNDING. Funds may be distributed under
this subchapter for a state fiscal biennium only if the instruction
and operations formula for all general academic teaching
institutions for undergraduate education under Section 61.059 is
funded by appropriation for that biennium at a level, per weighted
semester credit hour, that is equal to or greater than the level at
which that formula was funded by appropriation for all general
academic teaching institutions in the preceding state fiscal
biennium, as that level is adjusted for inflation.
Sec. 62.074. 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 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.