By: VanDeaver, et al. (Senate Sponsor - Creighton) H.B. No. 8
(In the Senate - Received from the House April 12, 2023;
May 1, 2023, read first time and referred to Subcommittee on Higher
Education; May 18, 2023, reported adversely, with favorable
Committee Substitute from Committee on Education by the following
vote: Yeas 12, Nays 0; May 18, 2023, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 8 By: Bettencourt
A BILL TO BE ENTITLED
AN ACT
relating to public higher education, including the public junior
college state finance program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 7.040(a), Education Code, is amended to
read as follows:
(a) The agency shall prepare information comparing
institutions of higher education in this state and post the
information on the agency's Internet website. Information prepared
under this section shall be made publicly available in a manner that
is accessible [given] to any [a] public or private school student
seeking [who requests] the information. The information shall:
(1) identify postsecondary education and career
opportunities, including information that states the benefits of
four-year and two-year higher education programs, postsecondary
technical education, skilled workforce careers, and career
education programs;
(2) assist prospective postsecondary students in
assessing the value of a certificate program, associate or
baccalaureate degree program, or other credential program offered
by an institution of higher education by comparing [compare] each
institution [of higher education] with other institutions using
information included in the electronic tools or platforms developed
by the Texas Higher Education Coordinating Board under Section
61.09022(a) [regarding:
[(A) the relative cost of tuition;
[(B) the retention rate of students;
[(C) the graduation rate of students;
[(D) the average student debt;
[(E) the loan repayment rate of students; and
[(F) the employment rate of students];
(3) identify the state's future workforce needs, as
projected by the Texas Workforce Commission; [and]
(4) include annual starting wage information and
educational requirements for the top 25 [10] highest demand jobs in
this state, as identified by the Texas Workforce Commission;
(5) identify the 40 baccalaureate degree programs with
the highest average annual wages following graduation; and
(6) identify the 20 associate degree or certificate
programs with the highest average annual wages following
graduation.
SECTION 2. 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
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 3. 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 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 or coordinating board 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) At least once each year, a participating institution of
higher education shall certify to the agency and the coordinating
board the student's eligibility for the program. Notwithstanding
Section 54.051, a participating institution of higher education may
not charge tuition or fees for the enrollment in a dual credit
course at the institution of a student for whom the institution
receives notice under Subsection (e)(2).
(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. 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.
SECTION 4. 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 5. Section 28.0253(a)(2), Education Code, is
amended to read as follows:
(2) "Eligible institution" means an institution of
higher education [that is designated as a research university or
emerging research university under the coordinating board's
accountability system].
SECTION 6. Section 28.0253(e), Education Code, is amended
to read as follows:
(e) A school district or open-enrollment charter school
shall allow a student to graduate and receive [may issue] a high
school diploma [to a student] under the program if, using the
standards established under Subsection (c), the student
demonstrates mastery of and early readiness for college in each of
the subject areas described by that subsection and in a language
other than English, notwithstanding any other local or state
requirements.
SECTION 7. Section 29.908(b), Education Code, is amended to
read as follows:
(b) The program must:
(1) provide for a course of study that enables a
participating student to combine high school courses and
college-level courses during grade levels 9 through 12;
(2) allow a participating student to complete high
school and enroll in a program at an institution of higher education
that will enable the student to, on or before the fifth anniversary
of the date of the student's first day of high school, receive a
high school diploma and either:
(A) an applied associate degree, as defined by
Texas Higher Education Coordinating Board rule; or
(B) an academic associate degree, as defined by
Texas Higher Education Coordinating Board rule, with a completed
field of study curriculum developed under Section 61.823 that is
transferable [at least 60 semester credit hours] toward a
baccalaureate degree at one or more general academic teaching
institutions, as defined by Section 61.003;
(3) include articulation agreements with colleges,
universities, and technical schools in this state to provide a
participating student access to postsecondary educational and
training opportunities at a college, university, or technical
school; and
(4) provide a participating student flexibility in
class scheduling and academic mentoring.
SECTION 8. 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 total amount of allotments
under 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) The legislature shall include in amounts appropriated
for the Foundation School Program an amount of state aid sufficient
for the agency to make the transfer required under Subsection (c).
SECTION 9. Section 51.4033, Education Code, is amended to
read as follows:
Sec. 51.4033. REPORT OF NONTRANSFERABLE CREDIT. (a) Not
later than May [March] 1 of each year and in the form prescribed by
the coordinating board, each general academic teaching institution
shall provide to the coordinating board and the legislature a
report describing any courses in the Lower-Division Academic Course
Guide Manual or its successor adopted by the coordinating board for
which a student who transfers to the institution from another
institution of higher education is not granted:
(1) academic credit at the receiving institution; or
(2) if the student has declared a major and has not
changed majors, academic credit toward the student's major at the
receiving institution.
(b) A report required by this section must indicate:
(1) the course name and type;
(2) which institution of higher education provided
academic credit for the course; and
(3) the reason why the receiving institution did not
grant academic credit for the course as described by Subsection
(a), including whether the institution complied with the dispute
resolution process under Section 61.826.
SECTION 10. Section 51.4034(a), Education Code, is amended
to read as follows:
(a) Not later than May [March] 1 of each year and in the form
prescribed by the coordinating board, each public junior college
shall provide to the coordinating board and the legislature a
report on courses taken by students who, during the preceding
academic year, transferred to a general academic teaching
institution or earned an associate degree at the college.
SECTION 11. Section 51.762(b-1), Education Code, is amended
to read as follows:
(b-1) An electronic common admission application form
adopted under this section must include a prominent link to the
electronic tools or platforms developed by the board under Section
61.09022 [comparative gainful employment data regarding
institutions of higher education, including information described
by Section 7.040, on a website maintained by the board using data
compiled by the board in coordination with the Texas Workforce
Commission].
SECTION 12. Section 51.763(b), Education Code, is amended
to read as follows:
(b) The form must:
(1) allow each applicant to:
(A) apply electronically to one or more of the
general academic teaching institutions within the university
system; and
(B) indicate preferences for admission between
those institutions; and
(2) include a prominent link to the electronic tools
or platforms developed by the board under Section 61.09022
[comparative gainful employment data regarding institutions of
higher education, including information described by Section
7.040, on a website maintained by the board using data compiled by
the board in coordination with the Texas Workforce Commission].
SECTION 13. 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 or dual enrollment course that a student dropped before
graduating from high school.
SECTION 14. 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 15. Section 56.221(2), Education Code, is amended
to read as follows:
(2) "Eligible institution" means an institution of
higher education, as that term is defined by Section 61.003[, that
is designated as a research university or emerging research
university under the coordinating board's accountability system].
SECTION 16. Section 56.407(g), Education Code, is amended
to read as follows:
(g) An institution may use other available sources of
financial aid, other than a loan [or a Pell grant], to cover any
difference in the amount of a grant under this subchapter and the
actual amount of tuition and required fees at the institution.
SECTION 17. Sections 61.003(2), (11), and (12), Education
Code, are 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].
(11) "Degree program" means any grouping of subject
matter courses which, when satisfactorily completed by a student,
will entitle the student [him] to:
(A) a degree from a public senior college or
university or a medical or dental unit; or
(B) an academic associate degree, as defined by
board rule, or baccalaureate degree from a public junior college.
(12) "Certificate program" means a grouping of
subject-matter courses which, when satisfactorily completed by a
student, will entitle the student [him] to:
(A) a certificate;
(B) an[,] associate degree, other than an
academic associate degree, as defined by board rule, from a
technical institute or junior college; or
(C) [, or] documentary evidence, other than a
degree, of completion of a course of study at the postsecondary
level.
SECTION 18. The heading to Section 61.031, Education Code,
is amended to read as follows:
Sec. 61.031. PUBLIC [INTEREST] INFORMATION AND COMPLAINTS.
SECTION 19. Section 61.031, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) Notwithstanding any other provision of law, information
that relates to a current, former, or prospective applicant or
student of an educational institution and that is obtained,
received, or held by the board for the purpose of providing
assistance with access to postsecondary education shall be
considered confidential and excepted from disclosure under Chapter
552, Government Code, and may only be released in conformity with
the Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
Section 1232g). The board may withhold information prohibited from
being disclosed under this subsection without requesting a decision
from the attorney general under Subchapter G, Chapter 552,
Government Code.
SECTION 20. 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 21. 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 22. 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 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 23. 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 24. 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.
(b) [The commissioner shall certify the names of those
colleges that have complied with the standards, rules, and
regulations prescribed by the board.] 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 25. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.09022 to read as follows:
Sec. 61.09022. INFORMATION TO ASSIST STUDENTS IN ASSESSING
VALUE OF POSTSECONDARY CREDENTIALS. (a) From money appropriated
or otherwise available for the purpose, the board shall develop one
or more electronic tools or platforms to provide information to
assist prospective postsecondary students in assessing the value of
a certificate program, associate or baccalaureate degree program,
or other credential program offered by an institution of higher
education or private or independent institution of higher education
by comparing each institution with other institutions regarding:
(1) the relative cost of obtaining the certificate,
degree, or other credential, based on the most recent data
available to the board from the Texas Workforce Commission,
institutions of higher education, the federal government, or any
other source from which the board may obtain reliable data,
including:
(A) the cost for each of the following at the 25th
percentile, the median, and the 75th percentile:
(i) total cost of attendance;
(ii) tuition and fees;
(iii) room and board;
(iv) books and supplies;
(v) transportation; and
(vi) other costs; and
(B) the estimated net cost remaining after
subtracting from the amount described by Paragraph (A) the average
amount of scholarship and grant aid awarded to the typical student
for the program;
(2) the value of the certificate, degree, or other
credential as measured by comparing:
(A) the median wage earned by students who
graduated with the certificate, degree, or other credential from
the institution; and
(B) the median student debt of students who
graduated with the certificate, degree, or other credential from
the institution as compared to the median student debt of all
students who graduated with the certificate, degree, or other
credential, based on the most recent data available to the board
from the Texas Workforce Commission, institutions of higher
education, the federal government, or any other source from which
the board may obtain reliable data;
(3) the average student debt-to-income ratio of
students who graduated with the certificate, degree, or other
credential from the institution and have student debt, including
the estimated monthly student loan payment, computed using the
standard 10-year repayment plan;
(4) progress on repaying student loans by students who
graduated with the certificate, degree, or other credential from
the institution; and
(5) educational outcomes for students seeking the
certificate, degree, or other credential, including:
(A) for a program designed to be completed in
more than one year, the percentage of students who continue in the
program after the first year of study;
(B) the completion rate;
(C) the percentage of students who withdraw or
transfer from the institution and subsequently graduate with the
certificate, degree, or other credential from another institution
of higher education or private or independent institution of higher
education;
(D) the percentage of students who withdraw from
the institution and do not enroll in the program at another
institution of higher education or private or independent
institution of higher education within three years of the
withdrawal; and
(E) the percentage of graduates employed in the
top five industries in this state, as identified by the Texas
Workforce Commission, by certificate program, degree program, or
other credential program within one year of graduation.
(c) The board may solicit and accept gifts, grants, and
donations from any public or private source to implement this
section.
(d) The board shall adopt rules as necessary to implement
this section.
SECTION 26. Section 7.040(c), Education Code, is
transferred to Section 61.09022, Education Code, as added by this
Act, redesignated as Section 61.09022(b), Education Code, and
amended to read as follows:
(b) [(c)] Each institution of higher education shall
include on its Internet website, in a prominent location that is not
more than three hyperlinks from the website's home page, a link to
the electronic tools or platforms developed by the board
[information posted on the agency's Internet website] under
Subsection (a).
SECTION 27. Sections 61.822(b) and (c), Education Code, are
amended to read as follows:
(b) Each institution of higher education shall adopt a core
curriculum of no less than 42 semester credit hours, including
specific courses comprising the curriculum. The core curriculum
shall be consistent with the common course numbering system
approved by the board and with the statement, recommendations, and
rules issued by the board. An institution may have a core
curriculum of other than 42 semester credit hours only if approved
by the board. The board by rule may approve a core curriculum of
fewer than 42 semester credit hours for an associate degree program
if the board determines that the approval would facilitate the
award of a degree or transfer of credit consistent with this
subchapter.
(c) If a student successfully completes the [42-hour] core
curriculum at an institution of higher education, that block of
courses may be transferred to any other institution of higher
education and must be substituted for the receiving institution's
core curriculum. A student shall receive academic credit for each
of the courses transferred and may not be required to take
additional core curriculum courses at the receiving institution
unless the board has approved a larger core curriculum at the
institution.
SECTION 28. Section 61.823, Education Code, is amended by
adding Subsection (a-1) and amending Subsection (b) to read as
follows:
(a-1) The board by rule may authorize a general academic
teaching institution to adopt, for each field of study curriculum
developed by the board for which the institution offers a degree
program, a set of courses specific to that field of study, for a
total of at least six semester credit hours or the equivalent, that
must be completed as part of the field of study curriculum for that
institution. Each general academic teaching institution that
adopts a set of courses for a field of study curriculum under this
subsection shall post on the institution's Internet website in a
manner easily accessible to students the set of courses with the
associated course numbers under the common course numbering system.
(b) If a student successfully completes a field of study
curriculum developed by the board, that block of courses may be
transferred to a general academic teaching institution and, subject
to completion of the set of courses adopted by the institution for
that field of study under Subsection (a-1), must be substituted for
that institution's lower division requirements for the degree
program for the field of study into which the student transfers, and
the student shall receive full academic credit toward the degree
program for the block of courses transferred.
SECTION 29. Sections 61.826(c), (d), and (e), Education
Code, are amended to read as follows:
(c) If an institution of higher education proposes to deny
the application toward the institution's core curriculum or a field
of study curriculum developed by the board under Section 61.823 of
[does not accept] course credit earned by a student at another
institution of higher education in the other institution's core
curriculum or in a field of study curriculum, that institution
must:
(1) [shall] give written notice to the student and the
other institution of that institution's intent to deny [that] the
application [transfer] of the course credit to the institution's
core curriculum or field of study curriculum and the reasons for the
proposed denial;
(2) [is denied. The two institutions and the student
shall] attempt to resolve the application [transfer] of the course
credit to the institution's core curriculum or field of study
curriculum with the other institution and the student in accordance
with this section and board rules;
(3) resolve the dispute not later than the 45th day
after the date on which the student enrolls in that institution; and
(4) if[. If] the [transfer] dispute is not resolved to
the satisfaction of the student or the institution at which the
credit was earned, [within 45 days after the date the student
received written notice of the denial, the institution that denies
the transfer of the course credit shall] notify the commissioner of
higher education of its denial to apply the course credit to the
institution's core curriculum or field of study curriculum and the
reasons for the denial.
(d) Not later than the 20th business day after the date the
commissioner of higher education receives notice of a dispute
concerning the application of course credit to an institution of
higher education's core curriculum or field of study curriculum
under Subsection (c)(4), the [The] commissioner [of higher
education] or the commissioner's designee shall make the final
determination about the [a] dispute [concerning the transfer of
course credit] and give written notice of the determination to the
involved student and institutions. If the commissioner or the
commissioner's designee determines that the institution may not
deny the application of course credit described by Subsection (c)
to the institution's core curriculum or field of study curriculum,
the institution shall apply that course credit toward the
institution's core curriculum or field of study curriculum, as
applicable. A determination by the commissioner or the
commissioner's designee under this subsection is final and may not
be appealed.
(e) The board shall:
(1) collect data on the types of transfer disputes
that are reported and the disposition of each case that is
considered by the commissioner of higher education or the
commissioner's designee; and
(2) post on the board's Internet website a list of each
case that is considered by the commissioner of higher education or
the commissioner's designee under this section, including the
disposition of the case.
SECTION 30. Section 61.827(b), Education Code, is amended
to read as follows:
(b) In adopting rules regarding the recommended core
curriculum developed under Section 61.822, the board shall appoint
a committee to advise the board [use the negotiated rulemaking
procedures] under Section 2001.031 [Chapter 2008], Government
Code.
SECTION 31. Subchapter S, Chapter 61, Education Code, is
amended by adding Section 61.834 to read as follows:
Sec. 61.834. TEXAS DIRECT ASSOCIATE DEGREE. A public
junior college, public state college, or public technical institute
shall award a student a "Texas Direct" associate degree and include
an appropriate notation on the student's transcript if the student
completes a field of study curriculum developed by the board under
Section 61.823 and:
(1) the college's core curriculum; or
(2) an abbreviated core curriculum related to a
specific approved field of study curriculum transferable to one or
more general academic teaching institutions.
SECTION 32. 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 33. 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 34. 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 35. 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 36. 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 37. 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 38. 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 39. 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 40. 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 41. 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 42. Section 130.310(a), Education Code, is amended
to read as follows:
(a) A [Except as provided by Subsection (b), a] degree
program created under this subchapter shall [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.
SECTION 43. 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 44. 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 45. Chapter 130, Education Code, is amended by
adding Subchapter O to read as follows:
SUBCHAPTER O. OPPORTUNITY HIGH SCHOOL DIPLOMA PROGRAM
Sec. 130.451. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "General academic teaching institution" has the
meaning assigned by Section 61.003.
(3) "Program," unless the context indicates
otherwise, means the Opportunity High School Diploma program
established under this subchapter.
Sec. 130.452. PURPOSE. The purpose of the program is to
provide an alternative means by which adult students enrolled in a
workforce education program at a public junior college may earn a
high school diploma at the college through concurrent enrollment in
a competency-based education program that enables students to
demonstrate knowledge substantially equivalent to the knowledge
required to earn a high school diploma in this state.
Sec. 130.453. ADMINISTRATION. The coordinating board shall
administer the program in consultation with the Texas Education
Agency and the Texas Workforce Commission.
Sec. 130.454. APPROVAL OF ALTERNATIVE HIGH SCHOOL DIPLOMA
PROGRAM. (a) A public junior college may submit to the
coordinating board an application to participate in the program.
The application must propose an alternative competency-based high
school diploma program to be offered for concurrent enrollment to
adult students without a high school diploma who are enrolled in a
workforce education program at the college. The proposed program
may include any combination of instruction, curriculum,
achievement, internships, or other means by which a student may
attain knowledge sufficient to adequately prepare the student for
postsecondary education or additional workforce education.
(b) A public junior college may submit an application under
Subsection (a) together with one or more public junior colleges,
general academic teaching institutions, public school districts,
or nonprofit organizations with whom the proposed program described
by that subsection will be offered as provided by Subsection (e).
(c) The coordinating board may approve not more than five
public junior colleges to participate in the program.
(d) Subject to Subsection (c), the coordinating board shall
review and approve a public junior college's application to
participate in the program if the board determines that the
college's proposed program described by Subsection (a) will provide
instruction and assessments appropriate to ensure that a student
who successfully completes the proposed program demonstrates
levels of knowledge sufficient to adequately prepare the student
for postsecondary education or additional workforce education. The
coordinating board may coordinate with the Texas Education Agency
as necessary to make a determination under this subsection.
(e) A public junior college approved to participate in the
program may:
(1) enter into an agreement with one or more public
junior colleges, general academic teaching institutions, public
school districts, or nonprofit organizations to offer the program
described by Subsection (a); and
(2) offer the program described by Subsection (a) at
any campus of the college or an entity with which the college has
entered into an agreement under Subdivision (1).
Sec. 130.455. AWARD OF HIGH SCHOOL DIPLOMA. (a) A public
junior college participating in the program may award a high school
diploma to a student enrolled in the alternative competency-based
high school diploma program offered by the college under the
program if the student performs satisfactorily on assessment
instruments prescribed by coordinating board rule.
(b) A high school diploma awarded under the program is
equivalent to a high school diploma awarded under Section 28.025.
Sec. 130.456. FUNDING. (a) The coordinating board and the
Texas Workforce Commission shall coordinate to jointly identify
funding mechanisms, including grants, interagency contracts,
financial aid, or subsidies, available to public junior colleges
and students to encourage and facilitate participation in the
program.
(b) A public junior college participating in the program is
entitled to receive funding under Section 130.003 for the program
in the manner provided by coordinating board rule.
Sec. 130.457. REPORT. Not later than December 1, 2026, the
coordinating board shall submit to the legislature a progress
report on the effectiveness of the program and any recommendations
for legislative or other action. This section expires September 1,
2027.
Sec. 130.458. RULES. The coordinating board may adopt
rules as necessary to implement this subchapter.
SECTION 46. 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) In adopting rules under this section, the coordinating
board shall consult 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 authorized 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
or dual enrollment courses, as defined by coordinating board rule,
that apply toward academic or workforce program requirements at the
postsecondary level.
SECTION 47. Section 136.001, Education Code, is amended by
amending Subdivision (1) and adding Subdivision (1-a) to read as
follows:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(1-a) "Nonprofit organization" means an organization
exempt from federal income taxation under Section 501(a), Internal
Revenue Code of 1986, as an organization described by Section
501(c)(3) of that code.
SECTION 48. Section 136.005(a), Education Code, is amended
to read as follows:
(a) The coordinating board [grant administrator] shall
establish and administer the Texas Innovative Adult Career
Education (ACE) Grant Program to provide grants to:
(1) eligible nonprofit workforce intermediary and job
training organizations; and
(2) eligible nonprofit organizations providing job
training to veterans.
SECTION 49. Section 136.006, Education Code, is amended to
read as follows:
Sec. 136.006. ELIGIBLE ORGANIZATIONS. (a) To be eligible
for a grant under the program, a nonprofit workforce intermediary
and job training organization must:
(1) apply to the coordinating board [grant
administrator] in the manner prescribed by the coordinating board
[grant administrator];
(2) provide to eligible low-income students, in
partnership with public junior colleges, public state colleges, or
public technical institutes:
(A) job training; and
(B) a continuum of services designed to move a
program participant from application to employment, including
outreach, assessment, case management, support services, and
career placement;
(3) be governed by a board or other governing
structure that includes recognized leaders of broad-based
community organizations and executive-level or managerial-level
members of the local business community;
(4) demonstrate to the satisfaction of the
coordinating board [program advisory board] that the
organization's program has achieved or will achieve the following
measures of success among program participants:
(A) above-average completion of developmental
education among participating public junior college, public state
college, or public technical institute students;
(B) above-average persistence rates among
participating public junior college, public state college, or
public technical institute students;
(C) above-average certificate or degree
completion rates by participating students within a three-year
period compared to demographically comparable public junior
college, public state college, and public technical institute
students; and
(D) entry into careers with significantly higher
earnings for program participants than previously achieved; and
(5) provide matching funds in accordance with rules
adopted under this chapter.
(a-1) To be eligible for a grant under the program, a
nonprofit organization providing job training services to veterans
must:
(1) apply to the coordinating board [grant
administrator] in the manner prescribed by the coordinating board
[grant administrator];
(2) provide to veterans, in partnership with public
junior colleges, public state colleges, or public technical
institutes:
(A) job training; and
(B) a continuum of services designed to move a
program participant from application to employment, including
outreach, assessment, case management, support services, and
career placement;
(3) be governed by a board or other governing
structure that includes recognized leaders of broad-based
community organizations and executive-level or managerial-level
members of the local business community;
(4) demonstrate to the satisfaction of the
coordinating board [program advisory board] that the
organization's program has achieved or will achieve the following
measures of success among program participants:
(A) the measures prescribed by Subsections
(a)(4)(A)-(C);
(B) rapid attainment of civilian workforce
credentials; and
(C) entry into careers with significantly higher
earnings for program participants than previously achieved; and
(5) provide matching funds in accordance with rules
adopted under this chapter.
(b) The matching funds required under Subsection (a)(5) or
(a-1)(5) may be obtained from any source available to the
organization, including in-kind contributions, community or
foundation grants, individual contributions, and local
governmental agency operating funds. The coordinating board [grant
administrator] may adopt rules requiring an organization to
demonstrate compliance with the matching funds requirement before
the payment of the next installment under an awarded grant.
SECTION 50. Section 136.007, Education Code, is amended to
read as follows:
Sec. 136.007. RULES. [(a)] The coordinating board [grant
administrator] shall adopt rules as necessary for the
administration of this chapter, including [in the manner provided
by Chapter 2001, Government Code, for a state agency.
[(b) The grant administrator, with recommendations of the
program advisory board, shall adopt] rules regarding eligibility,
program tuition and fees, administrative costs, matching funds, and
case management and other supports for the program. The rules may
include provisions for the payment in periodic installments of
grant awards.
SECTION 51. Section 2308A.007, Government Code, is amended
by adding Subsection (a-1) to read as follows:
(a-1) A credential library established under this section
must include the information included in the electronic tools or
platforms developed by the coordinating board under Section
61.09022(a), Education Code.
SECTION 52. Sections 61.0593, 61.884(d), 130.003(d),
130.310(b), 136.002, 136.004, and 136.005(a-1), Education Code,
are repealed.
SECTION 53. Sections 28.009(b-2), 28.010(a), and
29.908(b), 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 54. Sections 51.4033, 51.4034(a), 61.822(b) and
(c), 61.823, 61.826(c), (d), and (e), and 61.827(b), Education
Code, as amended by this Act, and Section 61.834, Education Code, as
added by this Act, apply beginning with the 2023-2024 academic
year.
SECTION 55. The change in law made by this Act to Section
56.407(g), Education Code, applies beginning with Texas
Educational Opportunity Grants awarded for the 2024 fall semester.
Grants awarded for a semester or term before the 2024 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.
SECTION 56. The Texas Education Agency and the Texas Higher
Education Coordinating Board may identify rules required by the
passage of 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 agency and the
coordinating board are not required to make the finding described
by Section 2001.034(a), Government Code, to adopt emergency rules
under this section.
SECTION 57. (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 7.040(a), 28.009(b-2), 28.010(a), 29.908(b),
51.4033, 51.4034(a), 51.762(b-1), 51.763(b), 61.031, 61.823, and
61.826(c), (d), and (e), Education Code, as amended by this Act, and
Sections 28.0095, 61.09022, and 61.834 and Subchapter O, Chapter
130, Education Code, and Section 2308A.007(a-1), Government 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.
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