This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.

  83R23629 JRJ-D
 
  By: Birdwell, et al. S.B. No. 215
 
  (Anchia)
 
  Substitute the following for S.B. No. 215:  No.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the continuation and functions of the Texas Higher
  Education Coordinating Board, including related changes to the
  status and functions of the Texas Guaranteed Student Loan
  Corporation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 61.0511, Education Code, is transferred
  to Subchapter G, Chapter 51, Education Code, and redesignated as
  Section 51.359, Education Code, to read as follows:
         Sec. 51.359 [61.0511].  ROLE AND MISSION STATEMENT. Each
  institution of higher education shall develop a statement regarding
  the role and mission of the institution reflecting the three
  missions of higher education:  teaching, research, and public
  service.
         SECTION 2.  Section 51.406, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  At least every five years, the Texas Higher Education
  Coordinating Board shall reevaluate its rules and policies to
  ensure the continuing need for the data requests the coordinating
  board imposes on university systems, institutions of higher
  education, or private or independent institutions of higher
  education.  The coordinating board shall consult with those
  entities to identify unnecessary data requests and shall eliminate
  data requests identified as unnecessary from its rules and
  policies.  In this subsection, "private or independent institution
  of higher education" has the meaning assigned by Section 61.003.
         SECTION 3.  Subdivisions (2) and (3), Section 56.451,
  Education Code, are amended to read as follows:
               (2)  "Eligible institution" means:
                     (A)  a general academic teaching institution,
  other than a public state college [an institution of higher
  education]; [or]
                     (B)  a medical and dental unit that offers
  baccalaureate degrees; or
                     (C)  a private or independent institution of
  higher education that offers baccalaureate degree programs.
               (3)  "General academic teaching institution," "medical
  and dental unit," "private or independent institution of higher
  education," and "public state [junior] college," [and "public
  technical institute"] have the meanings assigned by Section 61.003.
         SECTION 4.  Subsection (b), Section 56.452, Education Code,
  is amended to read as follows:
         (b)  The purpose of this subchapter is to provide no-interest
  loans to eligible students to enable those students to earn
  baccalaureate degrees at [attend all] public and private or
  independent institutions of higher education in this state.
         SECTION 5.  Section 56.455, Education Code, is amended to
  read as follows:
         Sec. 56.455.  INITIAL ELIGIBILITY FOR LOAN.  To be eligible
  initially for a Texas B-On-time loan, a person must:
               (1)  be a resident of this state under Section 54.052 or
  be entitled, as a child of a member of the armed forces of the United
  States, to pay tuition at the rate provided for residents of this
  state under Section 54.241;
               (2)  meet one of the following academic requirements:
                     (A)  be a graduate of a public or private high
  school in this state who graduated not earlier than the 2002-2003
  school year under the recommended or advanced high school program
  established under Section 28.025(a) or its equivalent;
                     (B)  be a graduate of a high school operated by the
  United States Department of Defense who:
                           (i)  graduated from that school not earlier
  than the 2002-2003 school year; and
                           (ii)  at the time of graduation from that
  school was a dependent child of a member of the armed forces of the
  United States; or
                     (C)  have received an associate degree from an
  [eligible] institution of higher education or private or
  independent institution of higher education not earlier than May 1,
  2005;
               (3)  be enrolled for a full course load for an
  undergraduate student, as determined by the coordinating board, in
  a baccalaureate [an undergraduate] degree [or certificate] program
  at an eligible institution;
               (4)  be eligible for federal financial aid, except that
  a person is not required to meet any financial need requirement
  applicable to a particular federal financial aid program; and
               (5)  comply with any additional nonacademic
  requirement adopted by the coordinating board under this
  subchapter.
         SECTION 6.  Subsection (a), Section 56.456, Education Code,
  is amended to read as follows:
         (a)  After initially qualifying for a Texas B-On-time loan, a
  person may continue to receive a Texas B-On-time loan for each
  semester or term in which the person is enrolled at an eligible
  institution only if the person:
               (1)  is enrolled for a full course load for an
  undergraduate student, as determined by the coordinating board, in
  a baccalaureate [an undergraduate] degree [or certificate] program
  at an eligible institution;
               (2)  is eligible for federal financial aid, except that
  a person is not required to meet any financial need requirement
  applicable to a particular federal financial aid program;
               (3)  makes satisfactory academic progress toward a
  degree [or certificate] as determined by the institution at which
  the person is enrolled, if the person is enrolled in the person's
  first academic year at the institution;
               (4)  completed at least 75 percent of the semester
  credit hours attempted by the person in the most recent academic
  year and has a cumulative grade point average of at least 2.5 on a
  four-point scale or the equivalent on all coursework previously
  attempted at institutions of higher education or private or
  independent institutions of higher education, if the person is
  enrolled in any academic year after the person's first academic
  year; and
               (5)  complies with any additional nonacademic
  requirement adopted by the coordinating board.
         SECTION 7.  Subsections (a) and (b), Section 56.459,
  Education Code, are amended to read as follows:
         (a)  The amount of a Texas B-On-time loan for a semester or
  term for a student enrolled full-time at an eligible institution
  other than an institution covered by Subsection (b)[, (c), or (d)]
  is an amount determined by the coordinating board as the average
  statewide amount of tuition and required fees that a resident
  student enrolled full-time in a baccalaureate [an undergraduate]
  degree program would be charged for that semester or term at general
  academic teaching institutions.
         (b)  The amount of a Texas B-On-time loan for a student
  enrolled full-time at a private or independent institution of
  higher education is an amount determined by the coordinating board
  as the average statewide amount of tuition and required fees that a
  resident student enrolled full-time in a baccalaureate [an
  undergraduate] degree program would be charged for that semester or
  term at general academic teaching institutions.
         SECTION 8.  Sections 56.461 and 56.462, Education Code, are
  amended to read as follows:
         Sec. 56.461.  LOAN PAYMENT DEFERRED. The repayment of a
  Texas B-On-time loan received by a student under this subchapter is
  deferred as long as the student remains continuously enrolled in a
  baccalaureate [an undergraduate] degree [or certificate] program
  at an eligible institution.
         Sec. 56.462.  LOAN FORGIVENESS. A student who receives a
  Texas B-On-time loan shall be forgiven the amount of the student's
  loan if the student is awarded a baccalaureate [an undergraduate
  certificate or] degree at an eligible institution with a cumulative
  grade point average of at least 3.0 on a four-point scale or the
  equivalent:
               (1)  within:
                     (A)  four calendar years after the date the
  student initially enrolled in an [the] institution of higher
  education or private or independent institution of higher education 
  [or another eligible institution] if[:
                           [(i)     the institution is a four-year
  institution; and
                           [(ii)]  the student is awarded a degree
  other than a degree in engineering, architecture, or any other
  program determined by the coordinating board to require more than
  four years to complete; or
                     (B)  five calendar years after the date the
  student initially enrolled in an [the] institution of higher
  education or private or independent institution of higher education 
  [or another eligible institution] if[:
                           [(i)     the institution is a four-year
  institution; and
                           [(ii)]  the student is awarded a degree in
  engineering, architecture, or any other program determined by the
  coordinating board to require more than four years to complete; [or
                     [(C)     two years after the date the student
  initially enrolled in the institution or another eligible
  institution if the institution is a public junior college or public
  technical institute;] or
               (2)  with a total number of semester credit hours,
  including transfer credit hours and excluding hours earned
  exclusively by examination, hours earned for a course for which the
  student received credit toward the student's high school academic
  requirements, and hours earned for developmental coursework that an
  institution of higher education required the student to take under
  Section 51.3062 or under the former provisions of Section 51.306,
  that is not more than six hours more than the minimum number of
  semester credit hours required to complete the [certificate or]
  degree.
         SECTION 9.  Subchapter A, Chapter 57, Education Code, is
  amended by adding Section 57.011 to read as follows:
         Sec. 57.011.  STATUS OF TEXAS GUARANTEED STUDENT LOAN
  CORPORATION. (a)  The Texas Guaranteed Student Loan Corporation is
  converted as provided by this section from a public nonprofit
  corporation created by general law to a nonprofit corporation under
  Chapter 22, Business Organizations Code.
         (b)  On or immediately after September 1, 2013, to effectuate
  the conversion under Subsection (a), the corporation shall file a
  certificate of formation with the secretary of state or, if the
  secretary of state determines it appropriate, the corporation shall
  file a certificate of conversion under Chapter 10, Business
  Organizations Code.
         (c)  The corporation as converted under this section
  continues in existence uninterrupted from the date of its creation,
  September 1, 1979. The secretary of state shall recognize the
  continuous existence of the corporation from that date in the
  certificate of formation or certificate of conversion, as
  applicable.
         (d)  The corporation continues to serve as the designated
  guaranty agency for the State of Texas under the Higher Education
  Act of 1965 (20 U.S.C. Section 1001 et seq.).
         (e)  Student loan borrower information collected, assembled,
  or maintained by the corporation is confidential and is not subject
  to public disclosure.
         SECTION 10.  Section 57.01, Education Code, is transferred
  to Section 61.002, Education Code, redesignated as Subsection (c),
  Section 61.002, Education Code, and amended to read as follows:
         (c)  Postsecondary [Sec.   57.01.     DECLARATION OF POLICY. The
  legislature, giving due consideration to the historical and
  continuing interest of the people of the State of Texas in
  encouraging deserving and qualified persons to realize their
  aspirations for education beyond high school, finds and declares
  that postsecondary] education for qualified Texans [those] who
  desire to pursue such [an] education [and are properly qualified
  therefor] is important to the welfare and security of this state and
  the nation and, consequently, is an important public purpose. The
  legislature finds and declares that the state can achieve its full
  economic and social potential only if every individual has the
  opportunity to contribute to the full extent of the individual's
  [his or her] capabilities and only when financial barriers to the
  individual's [his or her] economic, social, and educational goals
  are removed. In order to facilitate the removal of those barriers,
  the board, in consultation with one or more nonprofit entities with
  experience providing the services on a statewide basis, may [It is,
  therefore, the purpose of this chapter to establish the Texas
  Guaranteed Student Loan Corporation to:
               [(1)     administer a guaranteed student loan program to
  assist qualified Texas students in receiving a postsecondary
  education in this state or elsewhere in the nation; and
               [(2)]  provide necessary and desirable services
  related to financial aid services [the loan program], including
  cooperative awareness efforts with appropriate educational and
  civic associations designed to disseminate postsecondary education
  awareness information, including information regarding available
  grant and loan programs and [student financial aid and the Federal
  Family Education Loan Program, and other relevant topics including]
  the prevention of student loan default.
         SECTION 11.  Section 61.0211, Education Code, is amended to
  read as follows:
         Sec. 61.0211.  SUNSET PROVISION.  The Texas Higher Education
  Coordinating Board is subject to Chapter 325, Government Code
  (Texas Sunset Act).  Unless continued in existence as provided by
  that chapter, the board is abolished and this chapter expires
  September 1, 2025 [2013].
         SECTION 12.  Subsection (a), Section 61.022, Education Code,
  is amended to read as follows:
         (a)  The board shall consist of nine members appointed by the
  governor so as to provide representation from all areas of the state
  with the advice and consent of the senate, and as the constitution
  provides. One-third of the members must possess experience in the
  field of higher education governance or administration so that the
  board includes experience from both general academic teaching
  institutions and public junior colleges or public technical
  institutes.  In making an appointment under this section, the
  governor may consider appointing a person with experience in higher
  education governance or administration from a private or
  independent institution of higher education.  Members of the board
  serve staggered six-year terms. The terms of one-third of the
  members expire August 31 of each odd-numbered year.
         SECTION 13.  Subsection (d), Section 61.025, Education Code,
  is amended to read as follows:
         (d)  The board shall develop and implement policies that
  provide the public with a reasonable opportunity to appear before
  the board and to speak on any issue under the jurisdiction of the
  board, including a policy to specifically provide, as an item on the
  board's agenda at each meeting, an opportunity for public comment
  before the board makes a decision on any agenda item.
         SECTION 14.  Section 61.026, Education Code, is amended to
  read as follows:
         Sec. 61.026.  COMMITTEES AND ADVISORY COMMITTEES.  (a)  The
  chair [chairman] may appoint committees from the board's membership
  as the chair [he] or the board considers [may find] necessary [from
  time to time].
         (b)  The board may appoint advisory committees from outside
  its membership as the board considers [it may deem] necessary.  
  Chapter 2110, Government Code, applies to an advisory committee
  appointed by the chair or the board.  The board shall adopt rules,
  in compliance with Chapter 2110, Government Code, regarding an
  advisory committee that primarily functions to advise the board,
  including rules governing an advisory committee's purpose, tasks,
  reporting requirements, and abolishment date.  A board member may
  not serve on a board advisory committee.
         (c)  The board may adopt rules under this section regarding
  an advisory committee's:
               (1)  size and quorum requirements;
               (2)  qualifications for membership, including
  experience requirements and geographic representation;
               (3)  appointment procedures;
               (4)  terms of service; and
               (5)  compliance with the requirements for open meetings
  under Chapter 551, Government Code.
         (d)  Each advisory committee must report its recommendations
  directly to the board.
         SECTION 15.  Subchapter B, Chapter 61, Education Code, is
  amended by adding Section 61.0331 to read as follows:
         Sec. 61.0331.  NEGOTIATED RULEMAKING REQUIRED. (a)  The
  board shall engage affected institutions of higher education in a
  negotiated rulemaking process as described by Chapter 2008,
  Government Code, if:
               (1)  at any time the board determines that the
  development of a policy, procedure, or rule is likely to be
  controversial; or
               (2)  not later than the 15th day after the date notice
  of a potential policy, procedure, or rule is provided to the
  affected institutions, in the Texas Register or otherwise, at least
  one-half of the affected institutions request negotiated
  rulemaking and agree to share the costs of the process, including
  those of the facilitator.
         (b)  The board shall determine the sharing of costs under
  this section by rule.
         (c)  This section expires September 1, 2017.
         SECTION 16.  Subchapter B, Chapter 61, Education Code, is
  amended by adding Section 61.035 to read as follows:
         Sec. 61.035.  COMPLIANCE MONITORING.  (a)  The board, in
  consultation with affected stakeholders, shall adopt rules to
  establish an agency-wide, risk-based compliance monitoring
  function for:
               (1)  funds allocated by the board to institutions of
  higher education, private or independent institutions of higher
  education, and other entities, including student financial
  assistance funds, academic support grants, and any other grants, to
  ensure that those funds are distributed in accordance with
  applicable law and board rule; and
               (2)  data reported by institutions of higher education
  to the board and used by the board for funding or policymaking
  decisions, including data used for formula funding allocations, to
  ensure the data is reported accurately.
         (b)  For purposes of this section, student financial
  assistance includes grants, scholarships, loans, and work-study.
         (c)  After considering potential risks and the board's
  resources, the board shall review a reasonable portion of the total
  funds allocated by the board and of data reported to the board.  The
  board shall use various levels of monitoring, according to risk,
  ranging from checking reported data for errors and inconsistencies
  to conducting comprehensive audits, including site visits.
         (d)  In developing the board's risk-based approach to
  compliance monitoring under this section, the board shall consider
  the following factors relating to an institution of higher
  education or private or independent institution of higher
  education:
               (1)  the amount of student financial assistance or
  grant funds allocated to the institution by the board;
               (2)  whether the institution is required to obtain and
  submit an independent audit;
               (3)  the institution's internal controls;
               (4)  the length of time since the institution's last
  desk review or site visit;
               (5)  past misuse of funds or misreported data by the
  institution;
               (6)  in regard to data verification, whether the data
  reported to the board by the institution is used for determining
  funding allocations; and
               (7)  other factors as considered appropriate by the
  board.
         (e)  The board shall train compliance monitoring staff to
  ensure that the staff has the ability to monitor both funds
  compliance and data reporting accuracy.  Program staff in other
  board divisions who conduct limited monitoring and contract
  administration shall coordinate with the compliance monitoring
  function to identify risks and avoid duplication.
         (f)  If the board determines through its compliance
  monitoring function that funds awarded by the board to an
  institution of higher education or private or independent
  institution of higher education have been misused or misallocated
  by the institution, the board shall present its determination to
  the institution's governing board, or to the institution's chief
  executive officer if the institution is a private or independent
  institution of higher education, and provide an opportunity for a
  response from the institution.  Following the opportunity for
  response, the board shall report its determination and the
  institution's response, together with any recommendations, to the
  institution's governing board or chief executive officer, as
  applicable, the governor, and the Legislative Budget Board.
         (g)  If the board determines through its compliance
  monitoring function that an institution of higher education has
  included errors in the institution's data reported for formula
  funding, the board:
               (1)  for a public junior college, may adjust the
  appropriations made to the college for a fiscal year as necessary to
  account for the corrected data; and
               (2)  for a general academic teaching institution, a
  medical and dental unit, or a public technical institute, shall
  calculate a revised appropriation amount for the applicable fiscal
  year based on the corrected data and report that revised amount to
  the governor and Legislative Budget Board for consideration as the
  basis for budget execution or other appropriate action, and to the
  comptroller.
         (h)  In conducting the compliance monitoring function under
  this section, the board may partner with internal audit offices at
  institutions of higher education and private or independent
  institutions of higher education, as institutional resources
  allow, to examine the institutions' use of funds allocated by, and
  data reported to, the board.  To avoid duplication of effort and
  assist the board in identifying risk, an internal auditor at an
  institution shall notify the board of any audits conducted by the
  auditor involving funds administered by the board or data reported
  to the board.  A private or independent institution of higher
  education shall notify the board of any external audits involving
  funds administered by the board.  The board by rule may determine
  the timing and format of the notification required by this
  subsection.
         (i)  The board may seek technical assistance from the state
  auditor in establishing the compliance monitoring function under
  this section.  The state auditor may periodically audit the board's
  compliance monitoring function as the state auditor considers
  appropriate.
         (j)  In this section:
               (1)  "Desk review" means an administrative review by
  the board that is based on information reported by an institution of
  higher education or private or independent institution of higher
  education, including supplemental information required by the
  board for the purposes of compliance monitoring, except that the
  term does not include information or accompanying notes gathered by
  the board during a site visit.
               (2)  "Site visit" means an announced or unannounced
  in-person visit by a representative of the board to an institution
  of higher education or private or independent institution of higher
  education for the purposes of compliance monitoring.
         SECTION 17.  Section 61.051, Education Code, is amended by
  amending Subsections (a), (a-1), (a-2), and (a-3) and adding
  Subsection (a-5) to read as follows:
         (a)  The board represents [shall represent] the highest
  authority in the state in matters of public higher education and is
  charged with the duty to take an active part in promoting quality
  education throughout [in the various regions of] the state by:
               (1)  providing a statewide perspective to ensure the
  efficient and effective use of higher education resources and to
  eliminate unnecessary duplication;
               (2)  developing and evaluating progress toward a
  long-range master plan for higher education and providing analysis
  and recommendations to link state spending for higher education
  with the goals of the long-range master plan;
               (3)  collecting and making accessible data on higher
  education in the state and aggregating and analyzing that data to
  support policy recommendations;
               (4)  making recommendations to improve the efficiency
  and effectiveness of transitions, including between high school and
  postsecondary education, between institutions of higher education
  for transfer purposes, and between postsecondary education and the
  workforce; and
               (5)  administering programs and trusteed funds for
  financial aid and other grants as necessary to achieve the state's
  long-range goals and as directed by the legislature. [The board
  shall be responsible for assuring that there is no discrimination
  in the distribution of programs and resources throughout the state
  on the basis of race, national origin, or sex.]
         (a-1)  The board shall develop a long-range [five-year]
  master plan for higher education in this state.  The [five-year]
  plan shall:
               (1)  establish long-term, measurable goals and provide
  strategies for implementing those goals;
               (2)  assess the higher education needs of each region
  of the state;
               (3)  provide for regular evaluation and revision of the
  plan, as the board considers necessary, to ensure the relevance of
  goals and strategies; and
               (4)  take into account the resources of private or
  independent institutions of higher education [in this state].
         (a-2)  The board shall establish methods for obtaining input
  from stakeholders and the general public when developing or
  revising [periodically review and revise] the long-range 
  [five-year] master plan developed under Subsection (a-1). [As a
  specific element of its review, the board shall identify and
  analyze the degree to which the plan reflects the continuing higher
  education needs of this state, as well as any policy changes
  necessary to improve overall implementation of the plan and the
  fiscal impact of those changes. The board shall establish
  procedures for monitoring the board's implementation of the plan,
  including an analysis of the degree to which its current activities
  support implementation of the plan and any change in board rules or
  practices necessary to improve implementation of the plan. The
  board shall identify additional strategies necessary to achieve the
  goals of the plan, emphasizing implementation by institutions of
  higher education and specific recommendations for the different
  regions of the state. The board shall notify each institution of
  higher education of all strategies for implementing the plan.]
         (a-3)  Not later than December 1 of each even-numbered year,
  the board shall prepare and deliver a report to the governor, the
  lieutenant governor, the speaker of the house of representatives,
  and the standing committees of the senate and house of
  representatives with primary jurisdiction over higher education
  [The board shall inform the legislature on matters pertaining to
  higher education, including the state's activities in the Board of
  Control for Southern Regional Education, and shall report to the
  legislature not later than January 1 of each odd-numbered year on
  the state of higher education in Texas]. In the [biennial] report,
  the board shall assess the state's progress in meeting the goals
  established [stated] in the long-range master plan developed under
  Subsection (a-1) and [shall] recommend legislative action,
  including statutory or funding changes, to assist the state in
  meeting those goals. The report must include updates on
  implementation strategies provided for in the long-range master
  plan [the analyses performed in connection with the board's
  periodic review] under Subsection (a-1) [(a-2)].
         (a-5)  In conjunction with development of the long-range
  master plan under Subsection (a-1), the board shall evaluate the
  role and mission of each general academic teaching institution,
  other than a public state college, to ensure that the roles and
  missions of the institutions collectively contribute to the state's
  goals identified in the master plan.
         SECTION 18.  Section 61.0512, Education Code, is amended to
  read as follows:
         Sec. 61.0512.  BOARD APPROVAL OF ACADEMIC [NEW DEGREE]
  PROGRAMS[; NOTIFICATION TO BOARD]. (a)  A new degree or
  certificate program may be added at an institution of higher
  education only with specific prior approval of the board.  A new
  degree or certificate program is considered approved if the board
  has not completed a review under this section and acted to approve
  or disapprove the proposed program before the first anniversary of
  the date on which an institution of higher education submits a
  completed application for approval to the board.  The board may not
  summarily disapprove a program without completing the review
  required by this section.  The board shall specify by rule the
  elements that constitute a completed application and shall make an
  administrative determination of the completeness of the
  application not later than the fifth business day after receiving
  the application.  A request for additional information in support
  of an application that has been determined administratively
  complete does not toll the period within which the application is
  considered approved under this section.
         (b)  At the time an institution of higher education [a public
  senior college or university] begins preliminary planning for a new
  degree program [or a new organizational unit to administer a new
  degree program], the institution must [college or university shall]
  notify the board before the institution may carry out that
  planning[.   In the implementation of this subsection, the board may
  not require additional reports from the institutions].
         (c)  The board shall review each degree or certificate
  program offered by an institution of higher education at the time
  the institution requests to implement a new program to ensure that
  the program:
               (1)  is needed by the state and the local community and
  does not unnecessarily duplicate programs offered by other
  institutions of higher education or private or independent
  institutions of higher education;
               (2)  has adequate financing from legislative
  appropriation, funds allocated by the board, or funds from other
  sources;
               (3)  has necessary faculty and other resources to
  ensure student success; and
               (4)  meets academic standards specified by law or
  prescribed by board rule, including rules adopted by the board for
  purposes of this section, or workforce standards established by the
  Texas Workforce Investment Council.
         (d)  The board may review the number of degrees or
  certificates awarded through a degree or certificate program every
  four years or more frequently, at the board's discretion.
         (e)  The board shall review each degree or certificate
  program offered by an institution of higher education at least
  every 10 years after a new program is established using the criteria
  prescribed by Subsection (c).
         (f)  The board may not order the consolidation or elimination
  of any degree or certificate program offered by an institution of
  higher education but may, based on the board's review under
  Subsections (d) and (e), recommend such action to an institution's
  governing board. If an institution's governing board does not
  accept recommendations to consolidate or eliminate a degree or
  certificate program, the university system or, where a system does
  not exist, the institution, must identify the programs recommended
  for consolidation or elimination on the next legislative
  appropriations request submitted by the system or institution.
         (g)  An institution of higher education may offer off-campus
  courses for credit within the state or distance learning courses
  only with specific prior approval of the board. An institution must
  certify to the board that a course offered for credit outside the
  state meets the board's academic criteria. An institution shall
  include the certification in submitting any other reports required
  by the board.
         SECTION 19.  The heading to Section 61.055, Education Code,
  is amended to read as follows:
         Sec. 61.055.  [INITIATION OF NEW DEPARTMENTS, SCHOOLS, AND
  PROGRAMS;] PARTNERSHIPS OR AFFILIATIONS.
         SECTION 20.  Subsection (a), Section 61.055, Education Code,
  is amended to read as follows:
         (a)  The board shall encourage cooperative programs and
  agreements among institutions of higher education, including
  programs and agreements relating to degree offerings, research
  activities, and library and computer sharing.  [Except as otherwise
  provided by law, a new department, school, or degree or certificate
  program approved by the board or its predecessor, the Texas
  Commission on Higher Education, may not be initiated by any
  institution of higher education until the board has made a written
  finding that the department, school, or degree or certificate
  program is adequately financed by legislative appropriation, by
  funds allocated by the board, or by funds from other sources.]
         SECTION 21.  Subsection (l), Section 61.051, Education Code,
  is transferred to Subchapter C, Chapter 61, Education Code,
  redesignated as Section 61.0571, Education Code, and amended to
  read as follows:
         Sec. 61.0571.  BOARD ASSISTANCE TO INSTITUTIONS.
  (a) [(l)]  The board shall advise and offer technical assistance on
  the request of any institution of higher education or system
  administration.
         SECTION 22.  Subsection (n), Section 61.051, Education Code,
  is transferred to Section 61.0571, Education Code, as added by this
  Act, and redesignated as Subsection (b), Section 61.0571, Education
  Code, to read as follows:
         (b) [(n)]  The board shall develop guidelines for
  institutional reporting of student performance.
         SECTION 23.  Subsection (a-4), Section 61.051, Education
  Code, is transferred to Subchapter C, Chapter 61, Education Code,
  redesignated as Section 61.0661, Education Code, and amended to
  read as follows:
         Sec. 61.0661.  OPPORTUNITIES FOR GRADUATE MEDICAL
  EDUCATION. (a) [(a-4)]  The board shall conduct [include in the
  five-year master plan developed under Subsection (a-1)] an
  assessment of the adequacy of opportunities for graduates of
  medical schools in this state to enter graduate medical education
  in this state.  The assessment must:
               (1)  compare the number of first-year graduate medical
  education positions available annually with the number of medical
  school graduates;
               (2)  include a statistical analysis of recent trends in
  and projections of the number of medical school graduates and
  first-year graduate medical education positions in this state;
               (3)  develop methods and strategies for achieving a
  ratio for the number of first-year graduate medical education
  positions to the number of medical school graduates in this state of
  at least 1.1 to 1;
               (4)  evaluate current and projected physician
  workforce needs of this state, by total number and by specialty, in
  the development of additional first-year graduate medical
  education positions; and
               (5)  examine whether this state should ensure that a
  first-year graduate medical education position is created in this
  state for each new medical student position established by a
  medical and dental unit.
         (b)  Not later than December 1 of each even-numbered year,
  the board shall report the results of the assessment to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, and the standing committees of the senate and
  house of representatives with primary jurisdiction over higher
  education.
         SECTION 24.  Subsection (h), Section 61.051, Education Code,
  is transferred to Subchapter C, Chapter 61, Education Code,
  redesignated as Section 61.0662, Education Code, and amended to
  read as follows:
         Sec. 61.0662.  INFORMATION ON RESEARCH CONDUCTED BY
  INSTITUTIONS. (a) [(h)     The board shall make continuing studies of
  the needs of the state for research and designate the institutions
  of higher education to perform research as needed.]  The board
  shall [also] maintain an inventory of all institutional and
  programmatic research activities being conducted by the various
  institutions of higher education, whether state-financed or not.
         (b)  Once a year, on dates prescribed by the board, each
  institution of higher education shall report to the board all
  research conducted at that institution during the [last] preceding
  year.
         (c)  All reports required by this section [subsection] shall
  be made subject to the limitations imposed by security regulations
  governing defense contracts for research.
         SECTION 25.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.069 to read as follows:
         Sec. 61.069.  BOARD ROLE IN ESTABLISHING BEST PRACTICES.
  (a)  The board may administer or oversee a program to identify best
  practices only in cases where funding or other restrictions prevent
  entities other than the board from administering the program.
         (b)  The board may initiate a new pilot project only if other
  entities, including nonprofit organizations and institutions of
  higher education, are not engaging in similar projects or if the
  initiative cannot be performed by another entity.
         (c)  The board may use its position as a statewide
  coordinator to assist with matching nonprofit organizations or
  grant-funding entities with institutions of higher education and
  private or independent institutions of higher education to
  implement proven programs and best practices.
         (d)  The board may compile best practices and strategies
  resulting from its review of external studies for use in providing
  technical assistance to institutions of higher education and as the
  basis for the board's statewide policy recommendations.
         SECTION 26.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.0763 to read as follows:
         Sec. 61.0763.  STUDENT LOAN DEFAULT PREVENTION AND FINANCIAL
  AID LITERACY PILOT PROGRAM.  (a)  In this section, "career school
  or college" has the meaning assigned by Section 132.001.
         (b)  Not later than January 1, 2014, the board shall
  establish and administer a pilot program at selected postsecondary
  educational institutions to ensure that students of those
  institutions are informed consumers with regard to all aspects of
  student financial aid, including:
               (1)  the consequences of borrowing to finance a
  student's postsecondary education;
               (2)  the financial consequences of a student's academic
  and career choices; and
               (3)  strategies for avoiding student loan delinquency
  and default.
         (c)  The board shall select at least one institution from
  each of the following categories of postsecondary educational
  institutions to participate in the program:
               (1)  general academic teaching institutions;
               (2)  public junior colleges;
               (3)  private or independent institutions of higher
  education; and
               (4)  career schools or colleges.
         (d)  In selecting postsecondary educational institutions to
  participate in the pilot program, the board shall give priority to
  institutions that have a three-year cohort student loan default
  rate, as reported by the United States Department of Education:
               (1)  of more than 20 percent; or
               (2)  that has above average growth as compared to the
  rates of other postsecondary educational institutions in this
  state.
         (e)  The board, in consultation with postsecondary
  educational institutions, shall adopt rules for the administration
  of the pilot program, including rules governing the selection of
  postsecondary educational institutions to participate in the pilot
  program consistent with the requirements of Subsection (d).
         (f)  The board may contract with one or more entities to
  administer the pilot program according to criteria established by
  board rule.
         (g)  Not later than January 1 of each year, beginning in
  2016:
               (1)  the board shall submit a report to the governor,
  the lieutenant governor, and the speaker of the house of
  representatives regarding the outcomes of the pilot program, as
  reflected in the federal student loan default rates reported for
  the participating institutions; and
               (2)  each participating institution shall submit a
  report to the governor, the lieutenant governor, and the speaker of
  the house of representatives regarding the outcomes of the pilot
  program at the institution, as reflected in the federal student
  loan default rate reported for the institution.
         (h)  This section expires December 31, 2020.
         SECTION 27.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.07761 to read as follows:
         Sec. 61.07761.  FINANCIAL AID AND OTHER TRUSTEED FUNDS
  ALLOCATION. (a)  For any funds trusteed to the board for allocation
  to institutions of higher education and private or independent
  institutions of higher education, including financial aid program
  funds, the board by rule shall:
               (1)  establish and publish the allocation
  methodologies; and
               (2)  develop procedures to verify the accuracy of the
  application of those allocation methodologies by board staff.
         (b)  The board shall consult with affected stakeholders
  before adopting rules under this section.
         SECTION 28.  The heading to Section 61.822, Education Code,
  is amended to read as follows:
         Sec. 61.822.  TRANSFER OF CREDITS; CORE CURRICULUM.
         SECTION 29.  Section 61.822, Education Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  The board shall encourage the transferability of lower
  division course credit among institutions of higher education.
         (a-1)  The board, with the assistance of advisory committees
  composed of representatives of institutions of higher education,
  shall develop a recommended core curriculum of at least 42 semester
  credit hours, including a statement of the content, component
  areas, and objectives of the core curriculum. At least a majority
  of the members of any advisory committee named under this section
  shall be faculty members of an institution of higher education. An
  institution shall consult with the faculty of the institution
  before nominating or recommending a person to the board as the
  institution's representative on an advisory committee.
         SECTION 30.  The heading to Chapter 142, Education Code, is
  amended to read as follows:
  CHAPTER 142.  NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
  ADVANCED TECHNOLOGY PROGRAM
         SECTION 31.  Section 142.001, Education Code, is amended by
  amending Subdivisions (1) and (4) and adding Subdivisions (1-a) and
  (6) to read as follows:
               (1)  "Applied research" means research directed at
  gaining the knowledge or understanding necessary to meet a specific
  and recognized need, including the discovery of new scientific
  knowledge that has specific objectives relating to products or
  processes.
               (1-a) "Basic research" means research the primary
  object of which is to gain a fuller fundamental knowledge of the
  subject under study.
               (4)  "Research program [Program]" means the Norman
  Hackerman advanced research program established under this
  chapter.
               (6)  "Technology program" means the advanced
  technology program established under this chapter.
         SECTION 32.  The heading to Section 142.002, Education Code,
  is amended to read as follows:
         Sec. 142.002.  NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
  PURPOSE.  
         SECTION 33.  Section 143.002, Education Code, is transferred
  to Chapter 142, Education Code, redesignated as Section 142.0025,
  Education Code, and amended to read as follows:
         Sec. 142.0025 [143.002]. ADVANCED TECHNOLOGY PROGRAM
  [ESTABLISHMENT]; PURPOSE.  (a) It is essential to the state's
  economic growth that the state [it] exploit the potential of
  technology to advance the development and growth of technology and
  that industry be promoted and expanded. The advanced technology
  program is established as a means to accomplish this purpose.
         (b)  Providing appropriated funds to faculty members of
  institutions of higher education [public] and private or
  independent institutions of higher education to conduct applied
  research is important to the state's welfare and, consequently, is
  an important public purpose for the expenditure of public funds
  because the applied research will enhance the state's economic
  growth by:
               (1)  educating the state's scientists and engineers;
               (2)  creating new products and production processes;
  and
               (3)  contributing to the application of science and
  technology to state businesses.
         SECTION 34.  Section 142.003, Education Code, is amended to
  read as follows:
         Sec. 142.003.  ADMINISTRATION; GUIDELINES AND PROCEDURES.  
  (a)  The coordinating board shall administer the technology program
  and the research program.
         (b)  The coordinating board shall appoint an advisory
  committee that consists of experts in the specified research areas
  of both programs to advise the coordinating board regarding the
  coordinating board's development of research priorities,
  guidelines, and procedures for the selection of specific projects
  at eligible institutions.
         (c)  The guidelines and procedures developed for the
  research program by the coordinating board must:
               (1)  provide for awards on a competitive, peer review
  basis for specific projects at eligible institutions; and
               (2)  require that, as a condition of receiving an
  award, an eligible institution must use a portion of the award to
  support, in connection with the project for which the award is made,
  basic research conducted by:
                     (A)  graduate or undergraduate students, if the
  eligible institution is a medical and dental unit; or
                     (B)  undergraduate students, if the eligible
  institution is any other eligible institution [of higher
  education].
         (d)  The guidelines and procedures developed for the
  technology program by the coordinating board must:
               (1)  provide for determining whether an institution of
  higher education or private or independent institution of higher
  education qualifies as an eligible institution for the purposes of
  the technology program by demonstrating exceptional capability to
  attract federal, state, and private funding for scientific and
  technical research and having an exceptionally strong research
  staff and the necessary equipment and facilities; and
               (2)  provide for awards on a competitive, peer review
  basis for specific projects at eligible institutions.
         (e)  The coordinating board shall encourage projects under
  the technology program that leverage funds from other sources and
  projects that propose innovative, collaborative efforts:
               (1)  across academic disciplines;
               (2)  among two or more eligible institutions; or
               (3)  between an eligible institution or institutions
  and private industry.
         SECTION 35.  Section 143.003, Education Code, is transferred
  to Chapter 142, Education Code, redesignated as Section 142.0035,
  Education Code, and amended to read as follows:
         Sec. 142.0035 [143.003].  TECHNOLOGY PROGRAM: PRIORITY
  RESEARCH AREAS. The technology program may provide support for
  faculty members to conduct research in areas determined by an
  advisory panel appointed by the coordinating board. Initial
  research areas shall include: agriculture, biotechnology,
  biomedicine, energy, environment, materials science,
  microelectronics, aerospace, marine science, aquaculture,
  telecommunications, manufacturing science, environmental issues
  affecting the Texas-Mexico border region, the reduction of
  industrial, agricultural, and domestic water use, recycling, and
  related disciplines. The advisory committee appointed under
  Section 142.003(b) [panel] may add or delete priority research
  areas as the advisory committee [panel] considers warranted.
         SECTION 36.  Section 142.004, Education Code, is amended by
  amending Subsections (a) and (c) and adding Subsections (c-1) and
  (f) to read as follows:
         (a)  The programs created under this chapter are [program is]
  funded by appropriations and by gifts, grants, and donations made
  for purposes of each [the] program.
         (c)  The funds allocated [appropriated] for the research
  program may be expended to support the particular projects for
  which an award is made and may not be expended for the general
  support of ongoing research at an eligible institution or for the
  construction or remodeling of a facility.
         (c-1)  The funds allocated for the technology program may be:
               (1)  expended to support particular research projects
  for which an award is made, and may not be expended for the general
  support of ongoing research and instruction at an eligible
  institution or for the construction or remodeling of a facility;
  and
               (2)  used to match a grant provided by private industry
  for a particular collaborative research project with an eligible
  institution.
         (f)  The advisory committee appointed under Section
  142.003(b) shall determine when and to what extent funds
  appropriated under this chapter will be allocated to each program
  under this chapter unless the legislature specifies a division in
  the General Appropriations Act.
         SECTION 37.  Sections 142.006 and 142.007, Education Code,
  are amended to read as follows:
         Sec. 142.006.  MERIT REVIEW. (a)  The coordinating board
  shall appoint a committee that consists of experts in the specified
  research areas to evaluate the research program's effectiveness and
  report its findings to the coordinating board not later than
  January 31 of each odd-numbered year.
         (b)  The coordinating board shall appoint a committee
  consisting of representatives of higher education and private
  enterprise advanced technology research organizations to evaluate
  the technology program's effectiveness and report its findings to
  the coordinating board not later than January 31 of each
  odd-numbered year.
         Sec. 142.007.  CONFIDENTIALITY. Information submitted as
  part of a pre-proposal or proposal or related to the evaluation and
  selection of research projects to be funded by the research program
  or technology program is confidential unless made public by
  coordinating board rule.
         SECTION 38.  Section 143.0051, Education Code, is
  transferred to Chapter 142, Education Code, and redesignated as
  Section 142.009, Education Code, to read as follows:
         Sec. 142.009 [143.0051].  APPLIED RESEARCH FOR CLEAN COAL
  PROJECT AND OTHER PROJECTS FOR ELECTRICITY GENERATION. The
  coordinating board shall use money available for the purpose from
  legislative appropriations, including gifts, grants, and
  donations, to support at one or more eligible institutions applied
  research related to:
               (1)  the development, construction, and operation in
  this state of a clean coal project, as defined by Section 5.001,
  Water Code; or
               (2)  electricity generation using lignite coal
  deposits in this state or integrated gasification combined cycle
  technology.
         SECTION 39.  Subsection (f), Section 130.0012, Education
  Code, is amended to read as follows:
         (f)  Each public junior college that offers a baccalaureate
  degree program under this section must enter into an articulation
  agreement for the first five years of the program with one or more
  general academic teaching institutions to ensure that students
  enrolled in the degree program have an opportunity to complete the
  degree if the public junior college ceases to offer the degree
  program. The coordinating board may require a general academic
  teaching institution that offers a comparable degree program to
  enter into an articulation agreement with the public junior college
  as provided by this subsection.
         SECTION 40.  Subsection (f), Section 42.0421, Human
  Resources Code, as added by Chapter 82 (S.B. 265), Acts of the 82nd
  Legislature, Regular Session, 2011, is amended to read as follows:
         (f)  The training required by this section must be
  appropriately targeted and relevant to the age of the children who
  will receive care from the individual receiving training and must
  be provided by a person who:
               (1)  is a training provider registered with the Texas
  Early Care and Education Career Development System's Texas Trainer
  Registry that is maintained by the Texas Head Start State
  Collaboration Office;
               (2)  is an instructor at a public or private secondary
  school, an [or at a public or private] institution of higher
  education, as defined by Section 61.003 [61.801], Education Code,
  or a private college or university accredited by a recognized
  accrediting agency who teaches early childhood development or
  another relevant course, as determined by rules adopted by the
  commissioner of education and the commissioner of higher education;
               (3)  is an employee of a state agency with relevant
  expertise;
               (4)  is a physician, psychologist, licensed
  professional counselor, social worker, or registered nurse;
               (5)  holds a generally recognized credential or
  possesses documented knowledge relevant to the training the person
  will provide;
               (6)  is a registered family home care provider or
  director of a day-care center or group day-care home in good
  standing with the department, if applicable, and who:
                     (A)  has demonstrated core knowledge in child
  development and caregiving; and
                     (B)  is only providing training at the home or
  center in which the provider or director and the person receiving
  training are employed; or
               (7)  has at least two years of experience working in
  child development, a child development program, early childhood
  education, a childhood education program, or a Head Start or Early
  Head Start program and:
                     (A)  has been awarded a Child Development
  Associate (CDA) credential; or
                     (B)  holds at least an associate's degree in child
  development, early childhood education, or a related field.
         SECTION 41.  The following provisions of the Education Code
  are repealed:
               (1)  Chapters 144, 147, 148, and 152;
               (2)  Subchapters J, M, Q, and X, Chapter 51;
               (3)  Subchapters B and D, Chapter 57;
               (4)  Subchapters K, P, Q, U, and W, Chapter 61;
               (5)  Section 51.916; Subsection (f), Section 52.17;
  Section 52.56; Subsection (d), Section 56.456; and Subsections (c)
  and (d), Section 56.459;
               (6)  Subdivisions (1) and (3), Section 57.02;
               (7)  Sections 57.41, 57.42, 57.43, 57.44, 57.45, 57.46,
  57.461, 57.47, 57.471, 57.481, and 57.50;
               (8)  Subsections (b), (c), (d), (e), (f), (g), (i),
  (j), (k), (m), (o), (p), and (q), Section 61.051;
               (9)  Subsections (i) and (i-1), Section 61.059;
  Sections 61.0591, 61.0631, and 61.066; Subsection (d), Section
  61.0761; Sections 61.078, 61.088, and 61.660; and Subsection (c),
  Section 62.096; and
               (10)  Sections 143.001, 143.004, 143.005, 143.007, and
  143.008.
         SECTION 42.  (a)  The change in law made by this Act in
  amending Subchapter Q, Chapter 56, Education Code, applies
  beginning with Texas B-On-time loans awarded for the 2014-2015
  academic year.
         (b)  Notwithstanding Subsection (a) of this section, a
  student who first receives a Texas B-On-time loan for a semester or
  other academic term before the 2014 fall semester may continue to
  receive Texas B-On-time loans under Subchapter Q, Chapter 56,
  Education Code, as that subchapter existed immediately before the
  effective date of this Act, as long as the student remains eligible
  for a Texas B-On-time loan under the former law, and is entitled to
  obtain forgiveness of the loans as permitted by Section 56.462,
  Education Code, as that section existed immediately before the
  effective date of this Act. The Texas Higher Education
  Coordinating Board shall adopt rules to administer this subsection
  and shall notify each student who receives a Texas B-On-time loan in
  the 2013-2014 academic year of the provisions of this subsection.
         SECTION 43.  The change in law made by Subsection (a),
  Section 61.022, Education Code, as amended by this Act, regarding
  the qualifications of members of the Texas Higher Education
  Coordinating Board does not affect the entitlement of a member
  serving on the coordinating board immediately before the effective
  date of this Act to continue to serve as a member of the
  coordinating board for the remainder of the member's term.  As the
  terms of coordinating board members expire, the governor shall
  appoint or reappoint a member who has the required experience until
  the composition of the coordinating board meets the requirements
  under Subsection (a), Section 61.022, Education Code, as amended by
  this Act.
         SECTION 44.  The Texas Higher Education Coordinating Board
  shall adopt rules for the administration of Section 61.0763,
  Education Code, as added by this Act, as soon as practicable after
  this Act takes effect.  For that purpose, the coordinating board may
  adopt the initial rules in the manner provided by law for emergency
  rules.
         SECTION 45.  The Texas Higher Education Coordinating Board
  shall adopt rules as required by Section 61.07761, Education Code,
  as added by this Act, as soon as practicable after this Act takes
  effect.  For that purpose, the coordinating board may adopt the
  initial rules in the manner provided by the law for emergency rules.
         SECTION 46.  This Act takes effect September 1, 2013.