88R18694 KJE-F
By: VanDeaver, Kuempel, Buckley, Bonnen, H.B. No. 8
Longoria, et al.
A BILL TO BE ENTITLED
AN ACT
relating to the administration, coordination, and support of public
higher education, including the public junior college state finance
program and a Financial Aid for Swift Transfer (FAST) program to
enable certain students to enroll at no cost to the student in dual
credit courses offered by certain public institutions of higher
education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 28.009(b-2), Education Code, is amended
to read as follows:
(b-2) Any agreement, including a memorandum of
understanding or articulation agreement, between a school district
and public institution of higher education to provide a dual credit
program described by Subsection (b-1) must:
(1) include specific program goals aligned with the
statewide goals developed under Subsection (b-1);
(2) establish common advising strategies and
terminology related to dual credit and college readiness;
(3) provide for the alignment of endorsements
described by Section 28.025(c-1) offered by the district, and dual
credit courses offered under the agreement that apply towards those
endorsements, with postsecondary pathways and credentials at the
institution and industry certifications;
(4) identify tools, including tools developed by the
agency, the Texas Higher Education Coordinating Board, or the Texas
Workforce Commission, to assist school counselors, students, and
families in selecting endorsements offered by the district and dual
credit courses offered under the agreement;
(5) establish, or provide a procedure for
establishing, the course credits that may be earned under the
agreement, including by developing a course equivalency crosswalk
or other method for equating high school courses with college
courses and identifying the number of credits that may be earned for
each course completed through the program;
(6) describe the academic supports and, if applicable,
guidance that will be provided to students participating in the
program;
(7) establish the district's and the institution's
respective roles and responsibilities in providing the program and
ensuring the quality and instructional rigor of the program;
(8) state the sources of funding for courses offered
under the program, including, at a minimum, the sources of funding
for tuition, transportation, and any required fees or textbooks for
students participating in the program;
(9) require the district and the institution to
consider the use of free or low-cost open educational resources in
courses offered under the program;
(10) ensure the accurate and timely exchange of
information necessary for an eligible student to enroll at no cost
to the student in a dual credit course as provided by Section
28.0095;
(11) be posted each year on the district's and the
institution's respective Internet websites; and
(12) [(11)] designate at least one employee of the
district or institution as responsible for providing academic
advising to a student who enrolls in a dual credit course under the
program before the student begins the course.
SECTION 2. Subchapter A, Chapter 28, Education Code, is
amended by adding Section 28.0095 to read as follows:
Sec. 28.0095. FINANCIAL AID FOR SWIFT TRANSFER (FAST)
PROGRAM. (a) In this section:
(1) "Charter school" means a charter school operating
under Chapter 12.
(2) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(3) "Dual credit course" includes a course offered for
joint high school and junior college credit under Section 130.008
or another course offered by an institution of higher education for
which a high school student may earn credit toward satisfaction of:
(A) a requirement necessary to obtain an
industry-recognized credential or certificate or an associate
degree;
(B) a foreign language requirement at an
institution of higher education;
(C) a requirement in the core curriculum, as that
term is defined by Section 61.821, at an institution of higher
education; or
(D) a requirement in a field of study curriculum
developed by the coordinating board under Section 61.823.
(4) "Institution of higher education" has the meaning
assigned by Section 61.003.
(b) The agency and the coordinating board shall jointly
establish the Financial Aid for Swift Transfer (FAST) program to
allow eligible students to enroll at no cost to the student in dual
credit courses at participating institutions of higher education.
(c) A student is eligible to enroll at no cost to the student
in a dual credit course under the program if the student:
(1) is enrolled:
(A) in high school in a school district or
charter school; and
(B) in a dual credit course at a participating
institution of higher education; and
(2) was educationally disadvantaged at any time during
the four school years preceding the student's enrollment in the
dual credit course described by Subdivision (1)(B).
(d) An institution of higher education is eligible to
participate in the program only if the institution charges for each
dual credit course offered by the institution an amount of tuition
that does not exceed the amount prescribed by coordinating board
rule.
(e) Each school district or charter school shall:
(1) on a high school student's enrollment in a dual
credit course, determine whether the student meets the criteria for
the program under Subsection (c)(2); and
(2) notify the institution of higher education that
offers the dual credit course in which the student is enrolled of
the district's or school's determination under Subdivision (1).
(f) A school district or charter school may make the
determination under Subsection (e)(1) based on the district's or
school's records, the agency's records, or any other method
authorized by commissioner rule. If the district or school bases
the determination on a method other than the agency's records, the
district or school shall report the method used and the data on
which the method is based to the agency for purposes of
verification.
(g) On receipt of notice under Subsection (e)(2), a
participating institution of higher education shall certify to the
agency and the coordinating board the student's eligibility for the
program.
(h) The coordinating board shall distribute money
transferred to the coordinating board under Section 48.308 to the
participating institutions of higher education in proportion to the
number of dual credit courses in which eligible students are
enrolled at the institution.
(i) The commissioner and the commissioner of higher
education shall coordinate as necessary to:
(1) confirm an eligible student's enrollment in a
participating institution of higher education; and
(2) obtain or share data necessary to verify a
student's eligibility under Subsection (c)(2).
(j) The commissioner and the coordinating board shall adopt
rules as necessary to implement this section.
SECTION 3. Section 28.010(a), Education Code, is amended to
read as follows:
(a) Each school year, a school district shall notify the
parent of each district student enrolled in grade nine or above of:
(1) the availability of:
(A) programs in the district under which a
student may earn college credit, including advanced placement
programs, dual credit programs, joint high school and college
credit programs, and international baccalaureate programs;
(B) career and technology education programs or
other work-based education programs in the district, including any
internship, externship, or apprenticeship programs or a P-TECH
program under Subchapter N, Chapter 29; [and]
(C) subsidies based on financial need available
for fees paid to take college advanced placement tests or
international baccalaureate examinations under Section 28.054; and
(D) funding for enrollment in dual credit courses
under Section 28.0095; and
(2) the qualifications for:
(A) enrolling in programs described by
Subdivision (1)(A) or (B); or
(B) funding described by Subdivision (1)(D).
SECTION 4. Subchapter G, Chapter 48, Education Code, is
amended by adding Section 48.308 to read as follows:
Sec. 48.308. ALLOTMENT FOR FINANCIAL AID FOR SWIFT TRANSFER
(FAST) PROGRAM. (a) In this section:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "FAST program" means the Financial Aid for Swift
Transfer (FAST) program under Section 28.0095.
(b) An institution of higher education participating in the
FAST program is entitled to an allotment in an amount equal to the
amount of tuition set by coordinating board rule under Section
28.0095(d) for each dual credit course in which a student eligible
to participate in the FAST program is enrolled at the institution.
(c) The agency shall transfer the amount appropriated to the
agency for purposes of this section to the coordinating board for
distribution in accordance with Section 28.0095(h).
(d) The agency and the coordinating board shall coordinate
as necessary to implement this section.
(e) It is the intent of the legislature that the state
ensure ongoing funding for the FAST program as an allotment under
the Foundation School Program.
SECTION 5. Section 51.907, Education Code, is amended by
adding Subsections (c-1) and (c-2) to read as follows:
(c-1) An institution of higher education may not count
toward the number of courses permitted to be dropped under
Subsection (c) or a policy adopted under Subsection (d) a course
that a student dropped while enrolled in a baccalaureate degree
program previously earned by the student.
(c-2) An institution of higher education may not count
toward the number of courses permitted to be dropped under
Subsection (c) or a policy adopted under Subsection (d) a dual
credit course that a student dropped before graduating from high
school.
SECTION 6. Section 54.3531(b), Education Code, is amended
to read as follows:
(b) Notwithstanding Subsection (a), a student may not
receive an exemption under this section for any course if the
student has previously attempted a number of semester credit hours
for courses taken at any institution of higher education while
classified as a resident student for tuition purposes in excess of
the maximum number of those hours specified by Section 61.0595(a)
as eligible for funding under the formulas established under
Section 61.059 or Chapter 130A.
SECTION 7. Section 61.003(2), Education Code, is amended to
read as follows:
(2) "Public junior college" means any junior college
listed as a public junior college [certified by the board] in
accordance with Section 61.063 [of this chapter].
SECTION 8. Section 61.051, Education Code, is amended by
adding Subsection (b) to read as follows:
(b) The board may participate in the establishment and
operation of an affiliated nonprofit organization whose purpose is
to raise money for or provide services or other benefits to the
board.
SECTION 9. Section 61.0571, Education Code, is amended by
adding Subsections (c), (d), (e), and (f) to read as follows:
(c) The board may provide administrative support and
services to institutions of higher education as necessary to
implement this chapter, Chapter 130, or Chapter 130A.
(d) The board may establish an institutional collaboration
center within the board to support the implementation of Chapter
130A and the efficient and effective operations of institutions of
higher education.
(e) From money appropriated or otherwise available for the
purpose, the board may procure goods and services for the direct
benefit of an institution of higher education and enter into an
interagency contract under Chapter 771, Government Code, with the
institution to reimburse the board for the cost of the goods and
services.
(f) An affiliated nonprofit organization described by
Section 61.051(b) may accept gifts, grants, or donations from any
public or private source to pay for goods or services procured for
the direct benefit of an institution of higher education under
Subsection (e).
SECTION 10. Section 61.059, Education Code, is amended by
amending Subsections (b), (b-1), and (r) and adding Subsection (s)
to read as follows:
(b) The board shall devise, establish, and periodically
review and revise formulas for the use of the governor and the
Legislative Budget Board in making appropriations recommendations
to the legislature for [all] institutions of higher education other
than public junior colleges funded under Chapter 130A[, including
the funding of postsecondary vocational-technical programs]. As a
specific element of the periodic review, the board shall study and
recommend changes in the funding formulas based on the role and
mission statements of those institutions of higher education. In
carrying out its duties under this section, the board shall employ
an ongoing process of committee review and expert testimony and
analysis.
(b-1) A committee under Subsection (b) must be composed of
representatives of a cross-section of institutions representing
each of the institutional groupings under the board's
accountability system, other than public junior colleges funded
under Chapter 130A. The commissioner of higher education shall
solicit recommendations for the committee's membership from the
chancellor of each university system and from the president of each
institution of higher education that is not a component of a
university system. The chancellor of a university system may
[shall] recommend to the commissioner at least one institutional
representative for each institutional grouping to which a component
of the university system is assigned. The president of an
institution of higher education that is not a component of a
university system may [shall] recommend to the commissioner at
least one institutional representative for the institutional
grouping to which the institution is assigned.
(r) The board shall exclude contact hours or semester credit
hours related to a course for which a student is generating formula
funding for the third time from the contact hours or semester credit
hours reported to the Legislative Budget Board for formula funding
purposes.
(s) Notwithstanding any other law, the board may not exclude
from the number of semester credit hours reported [to the
Legislative Budget Board] for formula funding under this section or
Chapter 130A semester credit hours for any course taken up to three
times by a student who:
(1) has reenrolled at an institution of higher
education following a break in enrollment from the institution or
another institution of higher education covering the 24-month
period preceding the first class day of the initial semester or
other academic term of the student's reenrollment; and
(2) successfully completed at least 50 semester credit
hours of course work at an institution of higher education before
that break in enrollment.
SECTION 11. Sections 61.0595(a), (d), and (f), Education
Code, are amended to read as follows:
(a) In the formulas established under Section 61.059 or
Chapter 130A, the board may not include funding for semester credit
hours earned by a resident undergraduate student who before the
semester or other academic session begins has previously attempted
a number of semester credit hours for courses taken at any
institution of higher education while classified as a resident
student for tuition purposes that exceeds the number of semester
credit hours required for completion of the degree program or
programs in which the student is enrolled, including minors and
double majors, and for completion of any certificate or other
special program in which the student is also enrolled, including a
program with a study-abroad component, by at least:
(1) for an associate degree program, 15 hours; or
(2) for a baccalaureate degree program, 30 hours.
(d) The following are not counted for purposes of
determining whether the student has previously earned the number of
semester credit hours specified by Subsection (a):
(1) semester credit hours earned by the student before
receiving a baccalaureate degree that has previously been awarded
to the student;
(2) semester credit hours earned by the student by
examination or under any other procedure by which credit is earned
without registering for a course for which tuition is charged;
(3) credit for a remedial education course, a
technical course, a workforce education course funded according to
contact hours, or another course that does not count toward a degree
program at the institution;
(4) semester credit hours earned by the student at a
private institution or an out-of-state institution;
(5) semester credit hours earned by the student before
graduating from high school and used to satisfy high school
graduation requirements; [and]
(6) the first additional 15 semester credit hours
earned toward a degree program by a student who:
(A) has reenrolled at an institution of higher
education following a break in enrollment from the institution or
another institution of higher education covering the 24-month
period preceding the first class day of the initial semester or
other academic term of the student's reenrollment; and
(B) successfully completed at least 50 semester
credit hours of course work at an institution of higher education
before that break in enrollment; and
(7) semester credit hours earned by the student before
receiving an associate degree that has been previously awarded to
the student.
(f) In the formulas established under Section 61.059 or
Chapter 130A, the board shall include without consideration of
Subsection (a) funding for semester credit hours earned by a
student who initially enrolled as an undergraduate student in any
institution of higher education before the 1999 fall semester.
SECTION 12. Section 61.063, Education Code, is amended to
read as follows:
Sec. 61.063. LISTING [AND CERTIFICATION] OF PUBLIC JUNIOR
COLLEGES; ELIGIBILITY FOR STATE APPROPRIATIONS. (a) The
commissioner of higher education shall file with the [state]
comptroller and the state auditor on or before September [October]
1 of each year a list of each [the] public junior college [colleges]
in this state that has certified to the board under Section 130.003
that the college is in compliance with the requirements of
Subsection (b) of that section. [The commissioner shall certify
the names of those colleges that have complied with the standards,
rules, and regulations prescribed by the board.]
(b) Only a public junior college included on the list under
Subsection (a) is [those colleges which are so certified shall be]
eligible for and may receive money appropriated [any appropriation
made] by the legislature to public junior colleges.
SECTION 13. Section 61.882(d), Education Code, is amended
to read as follows:
(d) In awarding grants under this subchapter, the board:
(1) shall, to the greatest extent practicable:
(A) award grants to at least one eligible entity
in each region of the state; and
(B) ensure that each training program:
(i) matches regional workforce needs;
(ii) is supported by a labor market
analysis of job postings and employers hiring roles with the skills
developed by the program; and
(iii) does not duplicate existing program
offerings except as necessary to accommodate regional demand; and
(2) may give preference to applicants that:
(A) represent a consortium of lower-division
institutions of higher education;
(B) prioritize training to displaced workers;
(C) offer affordable training programs to
students; or
(D) partner with employers, local chambers of
commerce, trade associations, economic development corporations,
and local workforce boards to analyze job postings and identify
employers hiring roles with the skills developed by the training
programs.
SECTION 14. Section 130.001(b), Education Code, is amended
to read as follows:
(b) The coordinating board shall have the responsibility
for adopting policies, enacting regulations, and establishing
general rules necessary for carrying out the duties with respect to
public junior colleges as prescribed by the legislature, and with
the advice and assistance of the commissioner of higher education,
shall have authority to:
(1) authorize the creation of public junior college
districts as provided in the statutes, giving particular attention
to the need for a public junior college in the proposed district and
the ability of the district to provide adequate local financial
support;
(2) dissolve any public junior college district which
has failed to establish and maintain a junior college within three
years from the date of its authorization;
(3) adopt standards for the operation of public junior
colleges and prescribe the rules and regulations for such colleges;
(4) require of each public junior college such reports
as deemed necessary in accordance with the coordinating board's
rules and regulations; and
(5) establish a standing advisory committee
[commissions] composed of representatives of public junior
colleges [and other citizens of the state] to provide advice and
counsel to the coordinating board with respect to the funding of
public junior colleges necessary to carry out this chapter and
Chapter 130A.
SECTION 15. Sections 130.003(a), (b), (e), and (f),
Education Code, are amended to read as follows:
(a) There shall be appropriated biennially from money in the
state treasury not otherwise appropriated an amount sufficient to
supplement local funds for the proper support, maintenance,
operation, and improvement of those public junior colleges of Texas
that meet the standards prescribed by this chapter. The sum shall
be allocated in accordance with Chapter 130A [on the basis of
contact hours within categories developed, reviewed, and updated by
the coordinating board].
(b) To be eligible for and to receive money appropriated
under Subsection (a) [a proportionate share of the appropriation],
a public junior college must certify to the coordinating board, in
the manner prescribed by coordinating board rule, that the college:
(1) offers [be certified as a public junior college as
prescribed in Section 61.063;
[(2) offer] a minimum of 24 semester hours of
vocational and/or terminal courses;
(2) collects [(3) have complied with all existing
laws, rules, and regulations governing the establishment and
maintenance of public junior colleges;
[(4) collect], from each full-time and part-time
student enrolled, tuition [matriculation] and other [session] fees
in the amounts required by law or in the amounts set by the
governing board of the junior college district as authorized by
this title;
(3) grants [(5) grant], when properly applied for,
the scholarships and tuition exemptions provided for in this code;
(4) [and
[(6)] for a public junior college established on or
after September 1, 1986, levies and collects [levy and collect] ad
valorem taxes as provided by law for the operation and maintenance
of the [public junior] college; and
(5) has complied with all laws and coordinating board
rules for the establishment and operation of a public junior
college.
(e) The primary purpose of each public junior [community]
college shall be to provide:
(1) technical programs up to two years in length
leading to associate degrees or certificates;
(2) vocational programs leading directly to
employment in semi-skilled and skilled occupations;
(3) [freshman and sophomore] courses in the core
curriculum or a field of study curriculum, as those terms are
defined by Section 61.821 [arts and sciences];
(4) continuing adult education programs for
occupational or cultural upgrading;
(5) compensatory education programs designed to
fulfill the commitment of an admissions policy allowing the
enrollment of disadvantaged students;
(6) a continuing program of counseling and guidance
designed to assist students in achieving their individual
educational goals;
(7) work force development programs designed to meet
local and statewide needs;
(8) adult literacy and other basic skills programs for
adults; and
(9) such other purposes as may be prescribed by the
coordinating board [Texas Higher Education Coordinating Board] or
local governing boards in the best interest of post-secondary
education in this state [Texas].
(f) This section does not affect the application of [alter,
amend, or repeal] Section 54.231 [54.060 of this code].
SECTION 16. Section 130.0031, Education Code, is amended to
read as follows:
Sec. 130.0031. TRANSFERS: WHEN MADE. (a) In consultation
with the advisory committee established under Section
130.001(b)(5), the Texas Higher Education Coordinating Board by
rule shall adopt a payment schedule by which money appropriated to
junior college districts under this chapter and Chapter 130A is
distributed to those districts [In this section:
[(1) "Category 1 junior college" means a junior
college having not more than 2,500 students in fall head count
enrollment for the previous fiscal year and not more than $300,000
of local taxes collected, excluding taxes for debt service, in the
previous fiscal year.
[(2) "Category 2 junior college" means a junior
college having more than 2,500 students in fall head count
enrollment for the previous fiscal year or more than $300,000 of
local taxes collected, excluding taxes for debt service, in the
previous fiscal year].
(b) The Texas Higher Education Coordinating Board may
modify the [Money appropriated for payment to junior colleges under
the authority of Section 130.003 of this code shall be paid to each
eligible category 1 junior college out of the public junior college
reimbursement fund as follows:
[(1) 24 percent of the yearly entitlement of the
junior college shall be paid in two equal installments to be made on
or before the 25th day of September and October; and
[(2) 76 percent of the yearly entitlement of the
junior college shall be paid in eight equal installments to be made
on or before the 25th day of November, December, January, February,
March, April, May, and June.
[(c) Money appropriated for payment to junior colleges
under the authority of Section 130.003 of this code shall be paid to
each eligible category 2 junior college out of the public junior
college reimbursement fund as follows:
[(1) 24 percent of the yearly entitlement of the
junior college shall be paid in two equal installments to be made on
or before the 25th day of September and October; and
[(2) 76 percent of the yearly entitlement of the
junior college shall be paid in eight equal installments to be made
on or before the 25th day of November, December, March, April, May,
June, July, and August.
[(d) The] amount of any installment required under the
payment schedule adopted under Subsection (a) [by this section may
be modified] to, in accordance with this chapter, Chapter 130A, the
General Appropriations Act, or coordinating board rule:
(1) provide the junior college district with the
proper amount to which the junior college district may be entitled
by law; and
(2) [to] correct errors in the allocation or
distribution of funds.
(c) If the amount of an installment under the payment
schedule adopted under Subsection (a) [this section] is required to
be equal to the amount of another installment [other installments],
the amount of the other installment [installments] may be adjusted
to provide for that equality. A payment under this section is not
invalid because it is not equal to other installments.
SECTION 17. Section 130.0033(c), Education Code, is amended
to read as follows:
(c) Charging tuition at a reduced rate under this section
does not affect the right of the public junior college to an
allocation [a proportionate share] of state appropriations under
this chapter and Chapter 130A [Section 130.003] for the contact
hours attributable to students paying tuition at the reduced rate.
SECTION 18. Section 130.0034(a), Education Code, is amended
to read as follows:
(a) The governing board of a [public] junior college
district may charge a student a higher rate of tuition than the
tuition that would otherwise be charged for a course in which the
student enrolls if:
(1) the student has previously enrolled in the same
course or a course of substantially the same content and level two
or more times; and
(2) the student's enrollment in the course is not
included in the contact hours used to determine the junior
college's allocation [proportionate share] of state appropriations
under this chapter and Chapter 130A [Section 130.003].
SECTION 19. Section 130.0051(a), Education Code, is amended
to read as follows:
(a) The board of trustees of a junior college district by
resolution may change the name of the district or a college within
the district [by eliminating the words "community" or "junior" from
the name of the district or college], unless the change would cause
the district or college to have the same or substantially the same
name as an existing district, college, or other public or private
institution of higher education in this state.
SECTION 20. Section 130.008(c), Education Code, is amended
to read as follows:
(c) The contact hours attributable to the enrollment of a
high school student in a course offered for joint high school and
junior college credit under this section, excluding a course for
which the student attending high school may receive course credit
toward the physical education curriculum requirement under Section
28.002(a)(2)(C), shall be included in the contact hours used to
determine the junior college's allocation [proportionate share] of
the state money appropriated and distributed to public junior
colleges under this chapter and Chapter 130A [Sections 130.003 and
130.0031], even if the junior college waives all or part of the
tuition or fees for the student under Subsection (b).
SECTION 21. Section 130.085(b), Education Code, is amended
to read as follows:
(b) This action by the board of trustees does not affect
their authority under Section 130.123 [of this code], nor does this
section in any way supersede that section. This action of the board
does not affect the right of the college to an allocation [a
proportionate share] of state appropriations under this chapter and
Chapter 130A [Section 130.003 of this code].
SECTION 22. Section 130.090(c), Education Code, is amended
to read as follows:
(c) The grant of an exemption from tuition under Subsection
(b) does not affect the right of a junior college to an allocation
[a proportionate share] of state appropriations under this chapter
and Chapter 130A [Section 130.003] attributable to the contact
hours of the junior college with the student receiving the
exemption.
SECTION 23. Sections 130.310(a) and (b), Education Code,
are amended to read as follows:
(a) Except as provided by Subsection (b), a degree program
created under this subchapter may be funded solely by a public
junior college's allocation [proportionate share] of state
appropriations under this chapter and Chapter 130A [Section
130.003], local funds, and private sources. This subsection does
not require the legislature to appropriate state funds to support a
degree program created under this subchapter. The coordinating
board shall weigh contact hours attributable to students enrolled
in a junior-level or senior-level course offered under this
subchapter used to determine a public junior college's allocation
[proportionate share] of state appropriations under this chapter
and Chapter 130A [Section 130.003] in the same manner as a lower
division course in a corresponding field.
(b) Notwithstanding Subsection (a), in its recommendations
to the legislature relating to state funding for public junior
colleges, the coordinating board shall recommend that a public
junior college authorized to offer baccalaureate degree programs
under Section 130.303(a) or 130.304 receive substantially the same
state support for junior-level and senior-level courses in the
fields of applied science, applied technology, dental hygiene, and
nursing offered under this subchapter as that provided to a general
academic teaching institution for substantially similar courses.
For purposes of this subsection, in determining the contact hours
attributable to students enrolled in a junior-level or senior-level
course in the field of applied science, applied technology, dental
hygiene, or nursing offered under this subchapter used to determine
a public junior college's allocation [proportionate share] of state
appropriations under this chapter and Chapter 130A [Section
130.003], the coordinating board shall weigh those contact hours as
necessary to provide the junior college the appropriate level of
state support to the extent state funds for those courses are
included in the appropriations. This subsection does not prohibit
the legislature from directly appropriating state funds to support
junior-level and senior-level courses to which this subsection
applies.
SECTION 24. Section 130.352, Education Code, is amended to
read as follows:
Sec. 130.352. FORMULA FUNDING FOR WORKFORCE CONTINUING
EDUCATION COURSES. Notwithstanding Section 130.003 or any other
law, contact hours attributable to the enrollment of a student in a
workforce continuing education course offered by a public junior
college shall be included in the contact hours used to determine the
college's allocation [proportionate share] of state money
appropriated and distributed to public junior colleges under this
chapter and Chapter 130A [Sections 130.003 and 130.0031],
regardless of whether the college waives all or part of the tuition
or fees for the course under Section 130.354.
SECTION 25. Section 130.355, Education Code, is amended to
read as follows:
Sec. 130.355. RULES. The coordinating board shall adopt
any rules the coordinating board considers necessary for the
administration of this subchapter. [In adopting those rules, the
coordinating board shall use the negotiated rulemaking procedures
under Chapter 2008, Government Code.]
SECTION 26. Subtitle G, Title 3, Education Code, is amended
by adding Chapter 130A to read as follows:
CHAPTER 130A. PUBLIC JUNIOR COLLEGE STATE FINANCE PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 130A.001. LEGISLATIVE INTENT. It is the intent of the
legislature that, as public junior colleges are locally governed
institutions, providing foundational funding for instruction and
operations of public junior colleges should be primarily a local
responsibility, supported through a combination of tuition, fees,
and local property taxes, with state funding focused primarily on
rewarding outcomes aligned with regional and state education and
workforce needs.
Sec. 130A.002. PURPOSE. The purpose of the public junior
college state finance program established under this chapter is to
provide a modern and dynamic finance system that ensures that each
public junior college has access to adequate state appropriations
and local resources to support the education and training of the
workforce of the future.
Sec. 130A.003. DEFINITIONS. In this chapter:
(1) "Commissioner" means the commissioner of higher
education.
(2) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(3) "Program" means the public junior college state
finance program established under this chapter.
(4) "Public junior college" has the meaning assigned
by Section 61.003.
Sec. 130A.004. PROGRAM COMPONENTS. The program consists
of:
(1) a base tier of state and local funding determined
in accordance with Subchapter B that ensures each public junior
college has access to a defined level of base funding for
instruction and operations; and
(2) a performance tier of state funding determined in
accordance with Subchapter C that constitutes the majority of state
funding and is distributed based on measurable outcomes aligned
with:
(A) regional and state workforce needs; and
(B) state goals aligned to the state's long-range
master plan for higher education developed under Section 61.051.
Sec. 130A.005. ADMINISTRATION OF PROGRAM. (a) The
coordinating board may adopt rules, require reporting, and take
other actions consistent with Chapter 61, Chapter 130, and this
chapter as necessary to implement and administer the program.
(b) The coordinating board may adopt rules under this
section in consultation with the advisory committee established
under Section 130.001(b)(5).
(c) Notwithstanding Section 61.033, the coordinating board
is not required to use negotiated rulemaking procedures under
Chapter 2008, Government Code, for the adoption of rules under this
section.
Sec. 130A.006. REQUIRED REPORTING. The coordinating board
by rule shall require each junior college district to report to the
coordinating board through the Education Data System, Community
College Annual Reporting and Analysis Tool, Report of Fundable
Operating Expenses, or any successor program, data necessary to:
(1) calculate funding under this chapter;
(2) provide timely data and analyses to inform
management decisions by the governing body of each junior college
district;
(3) administer or evaluate the effectiveness of the
program; or
(4) audit the program.
Sec. 130A.007. COMMISSIONER AUTHORITY TO RESOLVE DATA
REPORTING ERRORS AND UNINTENDED CONSEQUENCES FROM FUNDING
FORMULAS. (a) The commissioner may review the accuracy of data
reported to the coordinating board by junior college districts.
(b) The commissioner may adjust:
(1) the distribution of funding under this chapter for
a state fiscal year as necessary to correct errors in data reporting
identified through the commissioner's review under Subsection (a);
and
(2) a junior college district's funding under this
chapter if the funding formulas used to determine the district's
entitlement would result in an unanticipated loss or gain for the
district that would have a substantial negative impact on the
district's operations.
(c) Before making an adjustment under this section, the
commissioner must request and receive written approval from the
Legislative Budget Board and the office of the governor. A request
to make an adjustment is considered approved unless the Legislative
Budget Board or the office of the governor issues a written
disapproval within 60 business days after the date on which the
request is received.
(d) If the commissioner makes an adjustment under
Subsection (b), the commissioner shall provide to the legislature
an explanation regarding the changes necessary to resolve the data
reporting errors or the unintended consequences, as applicable.
Sec. 130A.008. CENSUS DATE ELIGIBILITY. A junior college
district may report a student in attendance on the district's
approved course census date for the purpose of funding under this
chapter.
Sec. 130A.009. RECOVERY OF OVERALLOCATED FUNDS. (a) If a
junior college district has received an overallocation of state
funds, the coordinating board shall recover from the district an
amount equal to the overallocation by withholding from subsequent
allocations of state funds for the current or subsequent academic
year or by requesting and obtaining a refund from the district.
(b) Notwithstanding Subsection (a), the coordinating board
may recover an overallocation of state funds over a period not to
exceed the subsequent five academic years if the commissioner
determines that the overallocation was the result of exceptional
circumstances reasonably caused by statutory changes to Chapter 130
or this chapter and related reporting requirements.
(c) If a junior college district fails to comply with a
request for a refund under Subsection (a), the coordinating board
shall report to the comptroller that the amount constitutes a debt
for purposes of Section 403.055, Government Code. The coordinating
board shall provide to the comptroller the amount of the
overallocation and any other information required by the
comptroller. The comptroller may certify the amount of the debt to
the attorney general for collection. The junior college district's
governmental immunity is waived to the extent necessary to collect
the debt owed under this section.
(d) Subject to Subsection (e), the coordinating board may
review a junior college district as necessary to determine if the
district qualifies for each amount received by the district under
this chapter. If the coordinating board determines that a junior
college district received an amount to which the district was not
entitled, the coordinating board may establish a corrective action
plan or withhold the applicable amount of funding from the
district.
(e) The coordinating board may not review junior college
district expenditures that occurred seven or more years before the
review.
Sec. 130A.010. GIFTS, GRANTS, AND DONATIONS. Except as
provided by other law, an affiliated nonprofit organization
described by Section 61.051(b) may solicit and accept gifts,
grants, or donations of personal property from any public or
private source to implement or administer this chapter.
SUBCHAPTER B. STATE FUNDING: BASE TIER
Sec. 130A.051. BASE TIER FORMULA. The amount of base tier
state funding to which a junior college district is entitled for
instruction and operations under this subchapter for a state fiscal
year is an amount equal to the amount, if any, by which the
district's guaranteed instruction and operations funding, as
determined under Section 130A.052, exceeds the district's local
share of base tier funding, as determined under Section 130A.056.
Sec. 130A.052. GUARANTEED INSTRUCTION AND OPERATIONS
FUNDING FORMULA. The amount of a junior college district's
guaranteed instruction and operations funding for a state fiscal
year is equal to the sum of:
(1) the product of:
(A) the district's basic allotment under Section
130A.053; and
(B) the number of weighted full-time equivalent
students enrolled at the district determined in accordance with
Section 130A.054; and
(2) the district's contact hour funding under Section
130A.055.
Sec. 130A.053. BASIC ALLOTMENT. The basic allotment for a
junior college district for a state fiscal year is an amount per
weighted full-time equivalent student set by the General
Appropriations Act or other legislative appropriation.
Sec. 130A.054. WEIGHTED FULL-TIME EQUIVALENT STUDENT;
SCALE ADJUSTMENT. (a) The coordinating board by rule shall
establish student weights for purposes of this chapter that reflect
the higher cost of educating certain students.
(b) The student weights must be established in a manner that
results in appropriate funding to a junior college district for the
education of a student enrolled in an eligible credit or non-credit
program who is:
(1) 25 years of age or older;
(2) economically disadvantaged, as defined by
coordinating board rule; or
(3) academically disadvantaged, as defined by
coordinating board rule.
(c) Subject to Subsection (d), the number of weighted
full-time equivalent students enrolled at a junior college district
for purposes of this subchapter is equal to the sum of:
(1) the number of full-time equivalent students
enrolled in the district; and
(2) the sum of the weights assigned to students
enrolled in the district.
(d) The coordinating board by rule shall establish an
equitable adjustment to the number of weighted full-time equivalent
students determined under this section for each junior college
district with a total enrollment of fewer than 5,000 full-time
equivalent students.
(e) Not later than November 1 of each even-numbered year, a
junior college district that receives an adjustment under
Subsection (d) shall submit to the commissioner a report on the
district's participation in institutional partnerships and shared
services available under Section 61.0571 or other partnerships to
reduce costs and improve operational efficiency.
Sec. 130A.055. CONTACT HOUR FUNDING. (a) The legislature
shall set by appropriation the amount of funding to be provided to a
junior college district under this subchapter per contact hour.
(b) The amount of funding per contact hour must be weighted
by discipline to reflect the cost of providing the applicable
course.
(c) The coordinating board shall determine the total amount
of contact hour funding to which each junior college district is
entitled under this section.
Sec. 130A.056. LOCAL SHARE. A junior college district's
local share of base tier funding is an amount equal to the sum of the
amounts of revenue estimated to be generated by:
(1) imposing a maintenance and operations ad valorem
tax in the district at a rate of $0.05; and
(2) assessing an amount of tuition and fees to each
full-time equivalent student enrolled in the district equal to the
statewide average amount of tuition and fees assessed by junior
college districts to a full-time equivalent student, determined as
provided by coordinating board rule.
SUBCHAPTER C. STATE FUNDING: PERFORMANCE TIER
Sec. 130A.101. PERFORMANCE TIER. (a) A junior college
district is entitled to performance tier funding for a state fiscal
biennium in an amount equal to the sum of the amounts determined
under Subsection (b) for each measurable outcome described by
Subsection (c).
(b) The amount of performance tier funding for each
measurable outcome described by Subsection (c) is equal to the
product of:
(1) the sum of:
(A) the number of times that outcome was achieved
by the junior college district, determined as provided by
coordinating board rule; and
(B) for an outcome described by Subsection (c)(1)
or (2), the sum of the applicable student weights established by
coordinating board rule for the students who achieved the outcome
at the junior college district as determined under Paragraph (A) of
this subdivision; and
(2) the amount set by the General Appropriations Act
or other legislative appropriation for the outcome.
(c) The measurable outcomes considered for purposes of
performance tier funding are:
(1) the number of credentials of value awarded, as
determined by the coordinating board based on analyses of wages and
costs associated with the credential, including degrees,
certificates, and other credentials from credit and non-credit
programs that equip students for continued learning and greater
earnings in the state economy, with an additional weight for
placement of students who earn that credential in a high-demand
occupation, as defined by coordinating board rule, or an
appropriate proxy determined by the coordinating board based on
available data;
(2) the number of students who earn at least 15
semester credit hours or the equivalent at the junior college
district and:
(A) subsequently transfer to a general academic
teaching institution, as that term is defined by Section 61.003; or
(B) are enrolled in a structured co-enrollment
program, as defined by coordinating board rule; and
(3) the number of students who complete a sequence of
at least 15 semester credit hours or the equivalent for dual credit
courses that apply toward academic or workforce program
requirements at the postsecondary level.
SECTION 27. Sections 61.0593, 61.884(d), and 130.003(d),
Education Code, are repealed.
SECTION 28. Sections 28.009(b-2) and 28.010(a), Education
Code, as amended by this Act, and Section 28.0095, Education Code,
as added by this Act, apply beginning with the 2023-2024 school
year.
SECTION 29. The Texas Higher Education Coordinating Board
may identify rules required by the passage of Chapter 130A,
Education Code, as added by this Act, that must be adopted on an
emergency basis for purposes of the state fiscal year beginning
September 1, 2023, and may use the procedures established under
Section 2001.034, Government Code, for adopting those rules. The
coordinating board is not required to make the finding described by
Section 2001.034(a), Government Code, to adopt emergency rules
under this section.
SECTION 30. (a) Except as provided by Subsection (b) of
this section, this Act takes effect September 1, 2023, and applies
to the allocation of state funding to junior college districts
beginning with the state fiscal biennium beginning September 1,
2023.
(b) Sections 28.009(b-2) and 28.010(a), Education Code, as
amended by this Act, and Section 28.0095, Education Code, as added
by this Act, take effect immediately if this Act 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, those provisions
take effect September 1, 2023.