SUMMARY OF HIGHER EDUCATION LEGISLATION 77th LEGISLATURE

LEGISLATION THAT PASSED CONTINUED SB 1057 – makes several changes to the administration of the TEXAS Grant Program, separates the Teach for Texas Grant Program from the TEXAS Grant Prog

SUMMARY OF HIGHER EDUCATION LEGISLATION

77th LEGISLATURE

TEXAS HIGHER EDUCATION COORDINATING BOARD Office of Governmental Relations/Public Information

P.O Box 12788  Austin, TX 78711-2788

(512) 427-6111 July 2001The Texas Higher Education Coordinating Board does not discriminate on the basis of race, color, national origin, gender,

religion, age or disability in employment or the provision of services.

TABLE OF CONTENTS

HIGHLIGHTS OF HIGHER EDUCATION LEGISLATION 1

LEGISLATION THAT PASSED 1

LEGISLATION THAT FAILED TO PASS 11

HIGHER EDUCATION FUNDING 17

MAJOR INCREASES FOR EACH SECTOR OF HIGHER EDUCATION 17

SELECTED COORDINATING BOARD RIDERS 19

CONTINGENCY RIDERS 22

HIGHER EDUCATION SPECIAL PROVISION RIDERS 22

OTHER AGENCY / INSTITUTION RIDERS 23

ARTICLE IX RIDERS 24

ADMISSIONS 25

COMMUNITY / TECHNICAL COLLEGES 27

COORDINATING BOARD / AGENCY OPERATIONS 28

DEVELOPMENTAL EDUCATION (TASP) 29

EDUCATOR PREPARATION, RECRUITMENT & RETENTION 30

FACULTY 32

FINANCIAL AID 33

HEALTH-RELATED 35

INSTITUTIONAL OPERATIONS 38

MISCELLANEOUS 38

P-16 INITIATIVES 40

PLANNING 41

PROPRIETARY SCHOOLS 42

RESEARCH 43

ROLE & MISSION / INSTITUTIONAL CHANGES 44

TECHNOLOGY / ENGINEERING 48

TRANSFER 49

TUITION AND FEES 50

TUITION AND FEES – WAIVERS & EXEMPTIONS 53

TUITION REVENUE BONDS 54

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HIGHLIGHTS OF HIGHER EDUCATION LEGISLATION

 HB 1641 – outlines factors that may be used to make admissions or scholarship

decisions at the state’s public graduate and professional schools; prohibits the use of standardized test results as the sole admission criteria

COMMUNITY / TECHNICAL COLLEGES

 HB 1754 – authorizes a member of the governing board of a community college district

to serve the remainder of the term to which the trustee was elected after the redistricting

of a community college district

 HB 2349 – reassigns the Marble Falls Independent School District from the Austin Community College service area to the Central Texas College service area

 HB 2459 – requires the board of trustees of a community college district to re-divide the district into the appropriate number of districts with an equal number of inhabitants in each district

 HB 3258 – transfers the territory within the Nixon-Smiley Consolidated Independent School District in Gonzales County from the Victoria College District Service Area to the Austin Community College District Service Area

 SB 1014 – transfers Rockdale ISD from the Blinn College District service area to the Temple Junior College District service area

COORDINATING BOARD / AGENCY OPERATIONS

 HB 249 – provides that a computer system vulnerability report is not subject to public disclosure and requires a state agency whose manager has prepared a vulnerability report to prepare a summary of the report that excludes information that might

compromise security to be made available to the public on request

 HB 1922 – requires each state agency that collects information about an individual to prominently state that the individual is entitled to receive and review the information collected; mandates each agency to establish a reasonable procedure for correcting personal information without imposing a charge on the individual, unless the provision conflicts with the open record requirements

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LEGISLATION THAT PASSED (CONTINUED)

 HB 2589 – requires the Department of Information Resources to create a terms of service statement for state agency Internet sites and to establish and administer a clearinghouse for information relating to all aspects of protecting the security of state agency information

 SB 187 – establishes the TexasOnline Authority to implement a project designated as TexasOnline that provides a common electronic system using the Internet for

transactions between state or local government and members of the public

 SB 799 – requires each state agency to conduct an exit interview with an employee who leaves employment with the agency by having the employee access the questionnaire posted on the state auditor's Internet site and electronically submit the completed

questionnaire to the state auditor

DEVELOPMENTAL EDUCATION (TEXAS ACADEMIC SKILLS PROGRAM)

 HB 234 – exempts active duty military personnel from TASP requirements

 HB 1645 – exempts a transfer student from an accredited out-of-state institution of higher education who has met requirements of certain skill areas from the TASP test requirement

 HB 2109 – exempts from the TASP a person who graduates from a public high school oraccredited private high school in any state with a grade point average of 3.5 or higher on

a 4.0 scale or the equivalent and who has completed certain curriculum requirements, if that person enrolls in an institution of higher education on or before the second

anniversary of the date the student graduated from high school

EDUCATOR PREPARATION, RECRUITMENT, & RETENTION

 HB 704 – requires the TEA to establish the Careers to Classroom Program to assist individuals in obtaining certification as an elementary or secondary school teacher or educational aide, and to facilitate the employment of those persons in school districts in Texas that have a high number of educationally disadvantaged students and a shortage

of certified teachers in critical shortage areas or fields and or a shortage of educational aides

 HB 1130 – amends certain provisions of the Educational Aide Exemption Program to expand the number of teacher aides who are eligible to receive the exemption from tuition and fees, and requires school districts and universities to adopt plans designed to facilitate the use of the program and increase the number of certified teachers in Texas

 HB 1721 – authorizes the State Board for Educator Certification to issue a certificate to

an educator from another state or country that has performed satisfactorily on an exam similar to and at least as rigorous as the ExCET

 SB 998 – authorizes persons who have worked in an alternative education program or a juvenile justice education program for three years to take the ExCET without completing

an alternative educator certification program

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LEGISLATION THAT PASSED (CONTINUED)

 SB 1057 – makes several changes to the administration of the TEXAS Grant Program, separates the Teach for Texas Grant Program from the TEXAS Grant Program,

establishes the Teach for Texas Grant Program for alternative certification students, andmodifies the classroom teacher loan repayment assistance program

FACULTY

 HB 1127 – provides standards governing the dates by which institutions of higher

education must issue contracts or employment agreements to full-time faculty members

 HB 2397 – requires the Coordinating Board to conduct a study and to produce a report

on the disparity between the salary and benefits received by part-time and full-time faculty members at public institutions of higher education

FINANCIAL AID

 HB 1187 – requires the Texas Workforce Commission to establish a new Parents as Scholars pilot program that allows program participants to fulfill the work or employment activities required for financial assistance by engaging in educational activities designed

to result in receipt of a postsecondary degree

 HB 1575 – authorizes the Coordinating Board to provide assistance in the repayment of education loans for dental hygienists who practice in underserved areas of Texas

 HB 1755 – authorizes a licensing authority to suspend or deny the renewal of any issued license for a chiropractor, dentist, podiatrist, or medical doctor who has been found to be delinquent in the repayment of an educational loan or scholarship contract

state- HB 2323 – requires the Coordinating Board to provide assistance in the repayment of law school education loans for an attorney who provides legal services to the indigent and to provide repayment assistance for loans accrued by law graduates who work in a district or county attorney's office in a rural area

 HB 2766 – authorizes the Coordinating Board to provide assistance in the repayment of education loans for attorneys who work for the Office of the Attorney General

 SB 40 – requires the Coordinating Board to establish and administer a tuition assistance program for vocational nursing students attending any school or program in this state and who agree following licensure as a licensed vocational nurse to practice in a long-term care facility in the state

 SB 149 – updates names and statutory references to clarify program requirements of theTuition Equalization Program

 SB 1596 – establishes the TEXAS Grant II Program to provide grants to eligible students

to attend Texas public community and technical colleges and requires the Coordinating Board to administer the program

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LEGISLATION THAT PASSED (CONTINUED) HEALTH-RELATED

 HB 42 – authorizes the Coordinating Board, with the assistance of the board of regents

of the Texas A&M University System, to conduct a feasibility study regarding an

affiliation or coordinating agreement between the board of regents and any institution of higher education to provide the clinical education necessary to support a doctor of medicine degree program at the university

 HB 1124 – establishes a community healthcare awareness and mentoring program to identify, encourage, and support potential health care professionals from rural and underserved urban areas

 HB 2421 – requires the Center for Rural Health Initiatives to establish a program to encourage students from rural areas to study medicine and return to the rural community

to practice

 HB 2510 – requires the board of regents of the Texas Tech University System to

establish the Texas Tech Diabetes Research Center for researching diabetes and factors associated with the disease

 HB 2584 – creates the Commission on Geriatrics Study Requirement for Medical School

to assess the feasibility or desirability of making the study of geriatrics a requisite for graduation from a medical school in this state

 SB 31 – requires all college and university students be provided with information

regarding the risks, symptoms, and vaccine for bacterial meningitis and the availability of

a vaccine to students through the student health center

 SB 126 – establishes the Rural Communities Health Care Investment Program to recruit health professionals other than physicians to practice in medically underserved

communities by providing them with loan reimbursement or a stipend

 SB 505 – authorizes a medical and dental unit to require students at the institution to obtain health insurance coverage upon enrollment

 SB 572 – establishes the Nursing Shortage Reduction Program to provide incentives to increase enrollment in and faculty of professional nursing programs and requires the Coordinating Board to administer the program

 SB 837 – requires the governing board of the Border Health Institute to develop a year strategic plan and update the plan biennially

10- SB 940 – establishes the Joint Admission Medical Program to assist certain

economically disadvantaged students in preparing for and succeeding in medical school

INSTITUTIONAL OPERATIONS

 HB 1545 – amends provisions relating to the operation, regulation, and administration of public institutions of higher education

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LEGISLATION THAT PASSED (CONTINUED)

 SB 826 – authorizes the board of trustees of a school district to operate a school or program or hold a class on the campus of an institution of higher education regardless ofwhether the institution of higher education is located within the boundaries of the school district

 SB 1419 – eliminates the statute of limitations in certain civil proceedings involving the public institutions of higher education or Coordinating Board

recommendations that would support geographic education programs

 HB 3699 – specifies that an institution of higher education entitled to allocated funds under the equitable allocation formula is authorized to transfer the allocated funds to other eligible member institutions

 SB 263 – requires the governing board of each institution of higher education to adopt a policy regulating travel that is undertaken by one or more students enrolled at the

institution to reach an activity or event that is located more than 25 miles from the

institution, is organized and sponsored by the institution, is funded by the institution, uses a vehicle owned or leased by the institution, or is required by a student

organization registered at the institution

 SB 555 – establishes a qualified higher education savings plan to be administered by thePrepaid Higher Education Tuition Board with investments in the plan managed by a private firm

 SB 903 – requires the Coordinating Board to administer the women's athletic

development fund to reduce the disparity between women's and men's athletics;

requires the CB to conduct a best practices study of women’s athletic programs currentlyoperated by public institutions of higher education in Texas and in other states

 SB 1818 – grants the same powers and duties of eminent domain to the Texas A&M University System Board that are already granted to the governing boards of the

University of Texas System and the Texas State University System

P-16 INITIATIVES

 HB 400 – requires the Coordinating Board to implement the Higher Education

Assistance Pilot Program to provide prospective students with assistance and

information on admissions and enrollment at institutions of higher education; requires school districts and public institutions of higher education to work together to create a plan to increase enrollment rates at institutions of higher education

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LEGISLATION THAT PASSED (CONTINUED)

 HB 1144 – makes the Recommended High School Program the default curriculum for graduation at public high schools; directs the Commissioner of Higher Education and theCommissioner of Education to ensure student performance records are compatible; establishes new ratings for schools and districts; establishes the Master Math Teacher Program to reward expert instructors with annual bonuses

 SB 82 – extends the option to take dual credit junior college courses to private high school students

 SB 158 – requires school counselors to provide information to students and their parentsregarding the importance of higher education and availability of financial assistance

 SB 573 – requires the Coordinating Board to establish a statewide public awareness campaign to increase the number of students enrolled at higher education institutions in Texas

PLANNING

 HB 1799 – requires the Coordinating Board to complete a periodic comprehensive statewide plan that provides information and guidance to policymakers to ensure the current and future needs for adequate higher education services are met in each region

of this state

PROPRIETARY SCHOOLS

 HB 1985 – makes revisions to the law governing the regulation of proprietary schools

 SB 554 – authorizes the Texas Workforce Commission to establish and administer the Texas Career Opportunity Grant Program to provide tuition assistance to Texas studentsenrolled in a qualified education program at eligible proprietary schools, public technical institutes and certain postsecondary education programs

 SB 1205 – clarifies that a short course of instruction of 24 classroom hours or less and for which the tuition or fee is less than $500 is exempt from regulation under the

provisions for proprietary schools provided that the course meets certain conditions

 SB 1840 – requires the board of regents of The University of Texas System and the Coordinating Board to conduct a study evaluating the benefits of operating The

University of Texas at San Antonio and The University of Texas Health Science Center

at San Antonio as a single research university

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LEGISLATION THAT PASSED (CONTINUED) ROLE AND MISSION / INSTITUTIONAL CHANGES

 HB 323 – creates a Center for Border Economic and Enterprise Development at The University of Texas at Brownsville

 HB 753 – authorizes The University of Texas M.D Anderson Cancer Center to jointly prescribe courses and jointly conduct graduate programs at the master's and doctoral levels related to The University of Texas Health Science Center at Houston Graduate School of Biomedical Sciences

 HB 910 – formally establishes The Texas A&M University System Health Science CenterSouth Texas Center for Rural Public Health to deliver health education outreach

programs, deliver and provide community based instructional sites for the education of rural residents to public health professionals

 HB 1640 – authorizes the creation of a professional school of pharmacy at Texas A&M University-Kingsville

 HB 1685 – authorizes the governing boards of general academic teaching institutions or medical or dental schools to establish a partnership or affiliation with other entities to offer or conduct courses for academic credit or to offer degree programs

 HB 1753 – authorizes The University of Texas-Pan American to establish an division extension campus in Rio Grande City and enter into a partnership agreement with a junior college district for lower-division courses

upper- HB 2054 – expands Texas Southern University's statutory purpose statement to reflect its similarities to other general academic institutions

 HB 2344 – removes the enrollment cap on the number of lower-division students

enrolled at The University of Texas at Brownsville preceding the 2005-2006 academic

 HB 2840 – authorizes the establishment of a partnership agreement between Texas A&M University-Texarkana and the Texarkana College District and allows a student enrolled at Texarkana College to simultaneously enroll at Texas A&M University-

Texarkana as long as the student meets the requirements for enrollment at the university

 HB 3309 – creates the Southeast Texas Biotechnology Park in the Texas Medical Center-University Corridor in Houston

 SB 576 – authorizes the University of North Texas at Dallas to operate as a general academic teaching institution with its own chief executive officer, administration, and faculty only after the Coordinating Board certifies that enrollment at the University of North Texas System Center at Dallas has reached an enrollment equivalent to 2,500 full-time students for one semester

 SB 989 – amends the statutory provision regarding Prairie View A&M University's legallymandated purpose and role in Texas higher education

 SB 1429 – establishes the Center for Relationship Violence Prevention and Intervention

at Prairie View A&M University

LEGISLATION THAT PASSED (CONTINUED)

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TECHNOLOGY / ENGINEERING

 HB 3028 – requires the Coordinating Board to conduct an annual state science and engineering fair as part of an outreach program for middle school, junior high school, and high school students

 SB 353 – establishes the Texas Engineering and Technical Consortium, a public-private partnership to promote education in the engineering and computer science fields

 SB 1190 – authorizes institutions to establish and administer centers to commercialize technology which they own or in which they own an interest

TRANSFER

 HB 1359 – requires the Coordinating Board to develop field of study curricula for a certain number of degree programs that are in high-demand; requires each institution of higher education to publish its practices in transferring course credits between

institutions

TUITION AND FEES

 HB 120 – authorizes the board of regents of The University of Texas System to impose astudent intercollegiate athletic fee at The University of Texas of the Permian Basin

 HB 152 – creates a special summer tuition rate pilot program for certain students

enrolled for a summer term or session at Texas A&M University and Texas A&M

University-Kingsville

 HB 461 – authorizes the board of regents of the University of North Texas to impose a recreational fee on students

 HB 462 – authorizes the board of regents of the University of North Texas to levy

student fees for medical services

 HB 467 – authorizes of the board of regents of Texas Woman's University to levy

student fees for medical services

 HB 1023 – authorizes the board of regents of The Texas A&M University System to increase the maximum recreational sports fee

 HB 1024 – Authorizes the board of regents of The Texas A&M University System to raise the maximum student center complex fee

 HB 1403 – classifies a non-United States citizen as a Texas resident if they meet certaincriteria

 HB 1465 – requires the Coordinating Board to establish a pilot project to measure the impact of reducing tuition rates for community college courses at times of low enrollmentdemand

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LEGISLATION THAT PASSED (CONTINUED)

 HB 1467 – allows the governing board of a community college to establish the

percentage set aside for the Texas Public Education Grant Program at a level between 6and 20 percent of hourly tuition

 HB 1941 – reduces from one year to six months the time period that a family member of military personnel must have previously lived in Texas to qualify for paying resident tuition and fees

 HB 2218 – authorizes the governing board of an institution of higher education, other than The University of Texas at Austin, to increase the international education fee charged and collected from students registered at the institution contingent on the majority vote of a student referendum

 HB 2531 – increases tuition for resident students at general academic teaching

institutions over the next five years

 HB 2575 – increases the maximum limit of aggregate student services fees that an institution is authorized to charge from $150 to $250

 HB 3524 – authorizes the board of regents of The University of Texas System to

establish a flat rate tuition pilot project at The University of Texas at Austin

 SB 462 – authorizes the board of regents of the University of North Texas to levy studentfees for medical services

 SB 627 – authorizes the board of regents of The University of Texas System to impose

an intercollegiate athletics fee at The University of Texas at Tyler

 SB 628 – authorizes the board of regents of The University of Texas System to impose arecreational facility fee at The University of Texas at Tyler

 SB 743 – provides that the foreign student tuition fee does not apply to certain foreign students who register for courses that are a part of a graduate degree program in public health and that are conducted in a county immediately adjacent to the nation in which the foreign student resides; adds a tuition and fee exemption for foreign service officers

 SB 1472 – raises the cap on the general property deposit that can be charged to a student of a public institution of higher education from $10 to $100 and makes the collection of the fee permissive rather than mandatory

 SB 1498 – authorizes the board of regents of The University of Texas System to impose

a recreational facility fee on all students at The University of Texas at Arlington

 SB 1814 – requires each board to set a rate of tuition for a law school and a graduate or professional pharmacy program at a level that is three times the amount specified by current law

LEGISLATION THAT PASSED (CONTINUED) TUITION AND FEES – WAIVERS AND EXEMPTIONS

 HB 459 – amends current law to allow the children of deceased or disabled police officers or firefighters to receive an exemption from tuition and fees for the first 120 undergraduate semester credit hours rather than eight consecutive semesters

 HB 877 – exempts a surviving spouse or minor child of a law enforcement officer, firefighter or other public safety workers killed in the line of duty, from tuition and fees and the cost of housing, food, and textbooks at a Texas public institution of higher education

 HB 2279 – extends the time limit from the one-year anniversary to the two-year

anniversary of high school graduation for an eligible Temporary Assistance for Needy Families (TANF) student to enroll in a Texas public higher education institution and be exempt from tuition and fees

TUITION REVENUE BONDS

 HB 658 – provides over $1 billion in new tuition revenue bonds at certain universities and university systems to fund infrastructure projects at the specified institutions

LEGISLATION THAT FAILED TO PASS ADMISSIONS

 HB 47 – would have required each general academic teaching institution to admit an applicant with a degree from a community college or technical institute in Texas,

contingent upon the institution having space available for the admission of additional students

 HB 112 – would have made the Recommended High School Program the default

curriculum for graduation at public high schools and a requirement to enroll in a public four-year institution of higher education (see HB 1144, a similar bill that passed)

 HB 286 – would have required institutions of higher education to evaluate students that have completed a nontraditional secondary education program in accordance with the same general standards as other applicants for undergraduate admission

 HB 843 – would have made automatic admission of high school graduates in the top 10 percent of their class an option, rather than a mandate, for institutions of higher

education

 HB 954 – would have prohibited Texas institutions of higher education from considering

an applicant's relationship to alumni or university donors when making admission

decisions

 HB 1029 – would have required the continuation of an on-campus provisional admission program at The University of Texas at Austin

 HB 1565 – would have required colleges and universities to automatically admit the top

5 percent of high school graduates rather than the top 10 percent

 HB 1942 – would have qualified a spouse or dependent child of a member of the armed forces of the United States who graduates from high school outside Texas for automatic admission to institutions of higher education under the top 10 percent law; would have entitled those automatically admitted to pay resident tuition

 HB 1946 – would have prohibited certain institutions of higher education from assigning

a weight of more than 20 percent for standardized test performance in the overall

decision making process for admitting an applicant or from considering that performancewithout considering all other relevant factors

 HB 1984 – would have established the Uniform Student Admission Act to provide for a fair and uniform standard in undergraduate admissions

 HB 2386 – would have required that applicants who graduate with a baccalaureate degree in the top 10 percent of their graduating class be automatically admitted to the graduate or professional degree program they apply to at an institution of higher

education

 HB 2483 – would have prohibited an institution of higher education from admitting any person who is not a Texas resident unless the institution previously offered admission to every Texas resident who applied and met other requirements

LEGISLATION THAT FAILED TO PASS (CONTINUED)

 SB 974 – would have required high school students to take, at a minimum, the

Recommended High School Program to be eligible for automatic admission to a general academic teaching institution under the top 10 percent law

DEVELOPMENTAL EDUCATION (TEXAS ACADEMIC SKILLS PROGRAM)

 HB 125 – would have abolished the TASP and replaced it with the 11th grade TAAS

 HB 1648 – would have abolished the TASP

 HB 1724 – would have created a pilot program through which the TASP would be administered to 11th and 12th grade students

 HB 2775 – would have exempted from the TASP students who graduated from a Texas public high school at least 10 years prior to enrolling in a college and university

 HB 3138 – would have authorized the Commissioner of Education to assign all or part ofthe costs of remedial education to school districts that consistently graduate students who need developmental education

 HB 3620 – would have restructured TASP as the Developmental Education Program (DEP) and provided for additional exemptions from the DEP test

 SB 1141 – would have eliminated the TASP and required colleges and universities to use their own diagnostic tests to assess entering students for reading, writing and math skills

 HB 1014 – would have required universities to determine whether their faculty salaries are less than average compared to the 10 most populous states

 HB 2269 – would have required that faculty members receive adequate notice of

meetings relating to potential adverse personnel actions, and would have entitled a faculty member to have a representative present during such a meeting

 SB 924 – would have required the Coordinating Board to develop a uniform strategy to enable colleges and universities to recruit faculty reflecting the population of the state

 SB 995 – would have required the Coordinating Board to establish the Texas Graduate Studies Tuition and Fee Exemption Program to provide incentives for minority

community college faculty to pursue master’s and doctoral degrees

FINANCIAL AID

 HB 140 – would have required institutions of higher education to reimburse veterans who received tuition exemptions for the cost of textbooks and similar required course materials

 HB 324 – would have exempted college textbooks from the state sales tax when

purchased by part-time or full-time students at a public or private university

 HB 733 / SB 706 – would have created the Texas Rising Star Scholarship Program for deserving public community and technical college students with financial need

 HB 1576 – would have allowed financial aid officers to package a TEXAS Grant with TEG funds up to the maximum TEG amount, not to exceed the tuition and fees charged

to a student, to increase the total amount of aid a college's neediest students may receive to pay college expenses

 HB 1672 – would have removed the requirement to graduate from an accredited private high school to be eligible to receive a TEXAS Grant, which would have qualified home-schooled students for the grant

 HB 2292 – would have required the Coordinating Board to establish a tuition assistance program for psychology, counseling and social work students who agreed to provide professional services, upon licensure, to state prison inmates

 HB 2547 – would have provided tuition and fee refunds for Texas Southern University and Prairie View A&M University students who completed the first semester with at least

a 2.0 GPA and would have provided tuition and fee exemptions for students who

completed the next year and a half with at least a 2.0 GPA

 SB 210 – would have required recipients of the Early High School Graduation

Scholarship Program to complete the Recommended or Advanced High School Program

LEGISLATION THAT FAILED TO PASS (CONTINUED)

 SB 1274 – would have created the Texas First Generation Scholars Program to award grants to colleges and universities to develop mentoring programs for undergraduate

 low-income, first-generation students or minority students who desire to enter the faculty ranks, with the grants awarded through the Coordinating Board

MISCELLANEOUS

 HB 586 – would have made a delinquent child support obligor or a business entity in which a delinquent obligor has certain interests ineligible to receive specified state funds,grants, or loans

PLANNING

 HB 1804 – would have authorized the Educational Productivity Council at The University

of Texas at Austin’s College of Education to develop a database of information on the performance of students attending public schools and public institutions of higher

 SB 1260 – would have allowed the Comptroller to conduct performance reviews on colleges and universities (the Comptroller, Coordinating Board or institution could have requested a review)

RESEARCH

 HB 2356 – would have required universities each fiscal year to transfer to the General Revenue Fund 25 percent of royalties received from intellectual property

 HB 2365/SB 1013 – would have required the Legislature each biennium to appropriate

to Prairie View A&M University funds sufficient enough to qualify for federal agricultural research, extension and education matching funds

 SB 449 – would have created the University Research Fund to provide excellence funding to eligible research institutions

 SB 1567 – would have created the Emerging University Excellence Fund to provide funding to promote increased research capacity and to develop institutional excellence

at PUF-eligible institutions, excluding The University of Texas at Austin and Texas A&M University

LEGISLATION THAT FAILED TO PASS (CONTINUED)

 SB 1627 – would have created an atmosphere modification research center at Texas Tech University to conduct research on controlling precipitation

ROLE AND MISSION / INSTITUTIONAL CHANGES

 HB 1129 – would have required the Governor and Senate to take into consideration the geographic diversity of the state when making appointments to university governing boards

 HB 1210 – would have required the board of regents of the University of North Texas to establish and maintain a school of law within the city limits of Dallas

 HB 1211 – would have required the board of regents of the University of North Texas to establish and maintain a school of pharmacy at the University of North Texas

 HB 1814 – would have exempted certain postsecondary religious institutions from any regulation by a Texas agency or political subdivision with respect to the content or character of the educational program of the institution

 HB 2521 – would have established a medical school at Prairie View A&M University

 HB 3469 – would have established a medical school at Prairie View A&M University

 HB 3568 – would have consolidated The University of Texas at Arlington and The University of Texas Southwestern Medical Center at Dallas into The University of Texas

at Dallas

 HB 3607 – would have transferred governance of The University of Texas System’s Dallas-Fort Worth institutions to the University of North Texas, creating the University of North Texas at Arlington, the University of North Texas at Dallas and University of North Texas Southwestern Medical Center at Dallas

 SB 75 – would have authorized the University of North Texas Health Science Center at Fort Worth to establish and operate a facility, program or campus extension in any county

 SB 1303 – would have established a doctor of medicine degree program at the Texas Tech University Health Sciences Center in El Paso

STUDENTS

 HB 791 – would have required students to perform 28 hours of unpaid public service during one semester to be eligible to receive a bachelor’s degree from an institution of higher education

TECHNOLOGY

 HB 660 – would have created the State Board for Career and Technology Education andamended several sections of the Education Code affecting school districts and the delivery/development of career and technology education This bill passed the

Legislature, but was vetoed by the Governor

LEGISLATION THAT FAILED TO PASS (CONTINUED)

 HB 3300 – would have created the 21st Century Technology College And Careers grant program to strengthen and sustain existing partnerships in each region of the state so that they may better serve the academic and career interests of students and their parents, the workforce needs of employers, and the economic development goals of communities in the 21st century

TUITION AND FEES

 HB 528 – would have authorized the governing board of a junior college district to waive the foreign student tuition for a student who is a resident of Mexico, who registers for lower-division courses at a public junior college operated by the district, and who

demonstrates a financial need

 HB 683 – would have prohibited colleges and universities from charging a student a fee that would be used for organizations engaging in political or ideological activities unless the student authorizes use of the fee

 HB 2276 – would have provided a $500 tuition rebate to community college students who earned an associate degree or certificate within three semester credit hours of the minimum required to complete the program

 SB 733 – would have allowed community colleges bordering Mexico to waive the foreignstudent tuition for Mexican students who demonstrated financial need and would have allowed these students to pay Texas resident tuition

TUITION AND FEES – WAIVERS AND EXEMPTIONS

 HB 51 – would have allowed universities to provide undergraduate tuition and fee exemptions for children of public school teachers and librarians

 HB 172 – would have allowed universities and colleges to exempt peace officers

enrolled in criminal justice programs from tuition and fees

 HB 1120 – would have authorized tuition and fee exemptions for peace officers

attending undergraduate courses

 HB 2980 – would have required institutions of higher education to exempt from tuition and fees children of firefighters and peace officers

 HB 3004 – would have allowed colleges and universities to exempt from tuition and fees fire fighters disabled in the line of duty

HIGHER EDUCATION FUNDING

SB 1, General Appropriations Act (Ellis/Junell) – This section summarizes higher

education appropriations Information that follows is essentially correct, although some funding issues remain to be resolved at this time.

A PPROPRIATIONS

 The All Funds and General Revenue amounts shown below include the tobacco

settlement money allocated to higher education institutions and the Coordinating Board inArticle XII Three different pay increase items are not included under higher education because they either cannot be identified by institution at this time or are contingent upon funds availability More detail is presented in a later paragraph

 The total budget (including all funds) for the State of Texas during the 2002-03 biennium will be $113.8 billion, an increase of 15.87 percent The total all funds budget for higher

education will be $14.5 billion, 12.8 percent of the state budget The following table

shows the distribution of the higher education all funds appropriation (in millions) for the

 All funds (general revenue and consolidated funds) appropriated for higher education

will increase by approximately $2.0 billion (15.8 percent) The following table shows the

increase between the current biennium and the 2002-03 biennium all funds

appropriation (in millions) for each sector

Increase Amount Percent

Technical & Lamar State Colleges 29.5 15.24

All Other Higher Education Agencies 265.8 45.71System Trusteed Funds 4 9 .0015

 The total general revenue budget for the State of Texas during the 2002-03 biennium will be $61.7 billion, an increase of 11.7 percent General revenue appropriated for

higher education for the 2002-03 biennium is approximately $9.7 billion, an increase of

$1.1 billion (13.19 percent) Higher education funding constitutes 15.9 percent of the state’s total 2002-03 general revenue appropriations

 The following table shows the distribution of the biennial general revenue appropriation

(in millions) for the 2002-03 biennium:

Amount % of Approp.

System Trusteed Funds 33 .34

The following table shows the increase between the current biennium and the 2002-03

biennium general revenue appropriation (in millions) for each sector

Increase Amount Percent

Technical & Lamar State Colleges 24.6 14.97

All Other Higher Education Agencies 261.4 61.61

 The totals for the health-related institutions include appropriations for Baylor College of Medicine – both the funds that are trusteed to the Coordinating Board as well as tobaccosettlement proceeds from the endowment established for Baylor

 The Legislature appropriated to the Coordinating Board $281.9 million in new trusteed funds Most of the increase will be used to fund the TEXAS Grant and Teach for Texas Grant Programs ($220.3 million) and additional TEG grants ($40 million) Overall the CBtrusteed funds budget, including those reported under Baylor College of Medicine, will increase from $498.7 million to $780.7 million, or 56.5 percent

 The Legislature appropriated $188.5 million ($89.9 million in general revenue and $88.6 million in other funds) to fund one half of a four percent or $100 per month non-faculty employee pay raise for all institutions and higher education agencies, except community colleges In addition, the Legislature has provided that an additional non-faculty salary increase not to exceed three percent or $65 per month will occur in FY 2003 upon

 certification by the Comptroller that adequate funds are available to fund one half of the increase ($59.0 million) An additional $17.6 million has been appropriated to decrease the service interval between $20 per month increases in longevity pay from 5 years to 3 years Corresponding increases for each of the three types above were provided for all other state agency employees, including the Coordinating Board Lastly, $7.8 million in targeted pay raises was provided for selected state agency position classifications.

 Receipts collected pursuant to the Comprehensive Tobacco Settlement Agreement and Release were appropriated in Article XII of the General Appropriations Act Article XII also includes appropriated earnings on previously established permanent funds and endowments Appropriations for the use of health-related and general academic

institutions in 2002-03 total $91.35 million, or 90% of the corresponding $101.5 million for the 2000-01 biennium (The 2000-01 appropriations also included an additional $11 million in one-time only appropriations.)

S ELECTED C OORDINATING B OARD R IDERS

Rider #

21 This rider provides $5 million per year for Two Year Institution Growth and is to be used to assist public two-year institutions that experience dramatic rates of growth

in contact hours during the 2002-03 biennium Funds are to be allocated according

to a formula developed by the Coordinating Board Under this rider, institutions with growth in contact hours in RN professional nursing are to be funded fully prior

to providing funding for growth in total contact hours

29 This rider directs the Coordinating Board to take the unexpended balances from funds appropriated to the TEXAS Grant Program for the 2000-01 biennium

(including any excess amounts from the New Horizons Scholarship Program, Tuition Assistance Grants Program and the National Guard ROTC Program

transferred into the TEXAS Grant Program remaining balance) and use them for the same purpose in 2002-03 biennium If unexpended funds are remaining at the end of Fiscal Year 2002, they are appropriated for Fiscal Year 2003 It is the intent

of the legislature that the Coordinating Board plan the expenditure of new funding

to the TEXAS Grant Program so that the program will not require an appropriation

of greater than $381,000,000, plus any unexpended balances carried forward in the 2004-05 biennium

33 This rider allows the Coordinating Board to allocate additional funds from the TEXAS Grant Program into the Border Faculty Loan Repayment Program In addition, the Coordinating Board is directed to take the unexpended balances from funds appropriated to the Border Faculty Loan Repayment Program for the 2000-

01 biennium and use them for the same purpose in 2002-03

biennium If unexpended funds are remaining at the end of Fiscal Year 2002, they are appropriated for Fiscal Year 2003

36 This rider directs the Coordinating Board to coordinate with TEA and the State Board for Educator Certification regarding the sharing, integrating and housing pre-kindergarten through grade 16 (P-16) public education data All three agencies are

to work together to ensure that common and related data held by each agency is maintained in standardized, compatible formats to enable the efficient exchange of information between agencies and for matching of individual student records for longitudinally based studies and analysis

37 Approximately $5.6 million per year is provided under this rider for General

Academic Institution Growth and is to be used to assist public institutions that experience dramatic rates of growth in weighted semester credit hours during the 2002-03 biennium Funds are to be appropriated according to a formula developed

by the Coordinating Board Under this rider, general academic institutions with growth in weighted semester credit hours in RN professional nursing are to be funded fully prior to providing funding for growth in total weighted semester credit hours

38 Approximately $723,719 per year is provided under this rider for Health-Related Institution Nursing Enrollment Growth and is to be used to assist public health-related institutions that experience dramatic rates of growth in student full-time equivalents during the 2002-03 biennium

39 Out of the funds appropriated, the Coordinating Board and its Common ApplicationCommittee shall design and implement a pilot program for a college admission referral system to be administered at no cost to students UT Austin will assist the Coordinating Board in developing the pilot program by providing the necessary modifications to the Common Application System The system should be designed

to refer and facilitate the admission of students who have been denied admission

to their first choice to other Texas public higher education institutions Participation

by institutions will be on a voluntary basis The program should begin in the Fall

2002 semester The Coordinating Board, in conjunction with the institutions

participating in the pilot program, will produce a report evaluating the pilot project

no later than December 31, 2002

40 Out of the funds appropriated, the Coordinating Board shall administer and

coordinate the Higher Education Assistance Pilot Program to provide prospective students in three separate sites across the state that have low college enrollment rates with information related to enrollment in public, private or independent

institutions of higher education, including admissions and financial aid information; and assist these prospective students with completing admission and financial aid applications related to enrollment in higher education institutions In designing the pilot program, the Coordinating Board shall ensure that it is reproducible by other entities in cities and counties across the state to enable them to develop similar programs to increase admissions to higher education institutions The pilot

program shall begin operation with the Spring 2002 semester Not later than September 1, 2002, the Coordinating Board shall submit to the Legislature a report

on the effectiveness of the pilot program, including recommendations on whether

to implement the program on a statewide basis

41 The Coordinating Board shall determine the feasibility of establishing an

agreement with private tax preparation firms to assist college applicants in

completing the federal financial aid application If determined that such an

agreement would be feasible, the Coordinating Board shall negotiate the

agreement and implement a pilot program beginning with the Spring 2002

semester and shall produce a report evaluating the effectiveness of the pilot program no later than September 1, 2002

42 Out of funds appropriated, the Coordinating Board, with the help of the Department

of Information Resources and the cooperation of any other relevant state agency, shall determine the extent to which data captured for other programs may be used

to establish eligibility for student financial aid The Coordinating Board shall report its findings to the Legislature no later than September 1, 2002, including any

statutory changes necessary to allow and facilitate such data exchanges among agencies The Coordinating Board shall report, at the time of discovery to the

21

S ELECTED C OORDINATING B OARD R IDERS C ONTINUED

Rider #

Governor and Legislative Budget Board, if it finds that assistance or flexibility from the federal government would facilitate the sharing of information used to establish eligibility for student financial aid

43 The Coordinating Board shall convene a task force consisting of representatives from each state-appropriated health science center and hospital, as well as

selected representatives of hospitals and health care facilities that serve as

teaching facilities with residency programs Members of the task force shall be appointed by the Commissioner The task force shall analyze all funding streams -local, state, and federal, and any other sources of revenue, public or private that support graduate and post-graduate medical education in the state of Texas The task force shall recommend, to the Seventy-eighth Legislature by September 1,

2002, funding priorities that preserve the long-term viability of graduate and graduate medical education in Texas by improving graduate and post-graduate medical education’s service to Texas residents

post-45 The Coordinating Board shall report graduation and persistence rates, for each public general academic institution, to the Governor and Legislature no later than September 1, 2002

46 Out of funds appropriated, the Coordinating Board shall develop a strategic plan to increase the number of certified teachers in the state as quickly as possible The Coordinating Board shall collaborate with the Texas Education Agency, The State Board for Educator Certification, the Texas Workforce Commission, the Governor’sOffice, and the Legislature in development of the strategic plan

47 This rider limits the state financial aid students attending independent colleges and universities may receive This rider also discloses the intent of the Legislature to give priority in TEXAS Grant funding to students with the greatest financial need who attend public colleges and universities

48 This rider requires independent colleges and universities that enroll students receiving appropriated Tuition Equalization Grant (TEG) funds to provide annual reports by October 1 of each year to the Coordinating Board regarding the diversity

of their student body, faculty, executive committee, and board of regents

49 This rider directs the Coordinating Board to study the effects of the funding

formulas on institutions with fewer than 10,000 students and to report its findings tothe Legislative Budget Board by September 1, 2002 along with any

recommendations for a small college and university formula funding method

50 This rider directs the Coordinating Board to conduct a study regarding the

development of an equitable mechanism to fund the Texas A&M University SystemService Agencies’ infrastructure costs for facilities located in areas other than Brazos County

51 This rider appropriates $1.9 million to provide new campus funding at Wharton Junior College

C ONTINGENCY R IDERS

Rider#

54 This rider relates to House Bill 3590, the National Geographic Society Texas Fund for Geography Education It provides $500,000 in Fiscal Year 2002 that will be matched by $500,000 from the Society to create an endowment that will be used tosupport grants for geography education

55 This rider relates to Senate Bill 1596 - TEXAS Grant II Program for two-year institutions and provides $10,000,000 in the 2002-03 biennium to implement the provisions of the Act An additional $10,000,000 is contingent upon certification forthe Comptroller of Public Accounts that sufficient revenue is available

H IGHER E DUCATION S PECIAL P ROVISION R IDERS

Section#

44 This rider pertains to endowed chairs at general academic institutions If a chair remains unfilled for three years, the institution is required to provide a report disclosing the vacant status of the chair Beginning with the annual performance measures report for Fiscal Year 2002, the institutions must report the average length of time the chairs have remained unfilled and the percent of endowed chairsunfilled within the fiscal year reported

47 This rider pertains to donations for scholarships If a state university fails to award a scholarship for the first five years after receiving a donation that creates or endows

a scholarship, the university shall annually notify the donor and the Coordinating Board of that failure and shall cause notice of that failure to be published in the Texas Register In the event that the aggregate amount of such scholarships that have not been awarded reaches $250,000, the university shall also notify the Legislative Budget Board

48 This rider pertains to endowed programs A state university that, within five years

of receiving a donation, diminishes its financial support from local funds for a program created or endowed by the donor, shall notify the donor, the Coordinating Board and the Legislative Budget Board and shall cause that action to be

published in the Texas Register Upon application by the donor, the university shall return the donation or endowment

51 This rider pertains to contingency appropriation for two-year institutions of higher education After and contingent upon the Comptroller providing notice to the Legislative Budget Board regarding a finding of fact that sufficient revenue is estimated to be available from the General Revenue Fund, and following approval

by the Legislative Budget Board, $10,000,000 in General Revenue Funds are appropriated to the Comptroller of Public Accounts to finance an increase in the contact hour funding formula for two-year higher education institutions Allocation

of such amounts as available shall be made as approved the Legislative Budget Board

53 This rider relates to a student housing pilot program As part of the formula funding study mandated in Coordinating Board Rider 49, the Coordinating Board shall provide for a pilot program at Sul Ross State University The pilot program shall allow the university to use education and general funds for the limited purpose of providing student housing The Coordinating Board and the university shall report the results of the pilot program to the Legislative Budget Board no later than January 2, 2003

23

H IGHER E DUCATION S PECIAL P ROVISION R IDERS C ONTINUED

Section#

54 This rider pertains to student travel policies Each governing board of an institution

of higher education shall adopt a policy regulating travel that is undertaken by one

or more students presently enrolled at the institution to reach an activity or event that is located more than 25 miles from the institution

O THER A GENCY /I NSTITUTION R IDERS

Agency/Rider #

Comptroller/19 Authorizes the Comptroller, in conjunction with the Coordinating Board, to

conduct performance reviews of general academic institutions during the 2002-03 biennium

Prairie View A&M/2 Prairie View A&M is appropriated $12,350,000 in Fiscal Year 2002

and $12,650,000 plus Unexpended Balances in Fiscal Year 2003 for the Texas commitment to the Office of Civil Rights (OCR) Priority Plan

Prairie View A&M/3 Prairie View A&M is required to work with the Texas A&M University

System and the Coordinating Board, Governor and the Legislative BudgetBoard in order to establish a detailed plan to accomplish the goal and create benchmarks and performance measures to be adopted in accordance with the OCR Priority Plan by September 1, 2001 They shall

be reported semi annually by December 31 and June 30 to the institution’s Board of Regents, the Coordinating Board, the Governor and the Legislative Budget Board Any funds not spent in the 2002-03

biennium will be transferred to the 2004-05 without any reduction in futurefunding for the OCR Priority Plan

Prairie View A&M/4 Out of the funds appropriated in Rider 2 above, Prairie View A&M

will jointly establish with Waller ISD an America’s Promise School

It will be a full service pre-kindergarten through fourth gradecommunity-centered elementary school based around the America’s promise concept

Prairie View A&M/5 It is the intent of the legislature that the funding provided in the OCR

Priority Plan in Rider 2 above be continued as a multi-year commitment

by the Legislature

TEA/78 TEA may collaborate with the Coordinating Board and the Texas

Workforce Commission to improve their accountability of funds spent on adult education by continuing to implement improvements to the Adult Community Education System and reevaluating their current contracting procedures with adult education providers to ensure maximum

competition

Texas Southern Texas Southern is appropriated $12,500,000 in Fiscal Year 2002

University/5 and $12,500,000 plus Unexpended Balances in Fiscal Year 2003

for the Texas commitment to the OCR Priority Plan

Texas Southern Texas Southern is required to work with the Coordinating Board,

University/6 Governor and the Legislative Budget Board in order to establish a

detailed plan to accomplish the goal and create benchmarks and performance measures to be adopted in accordance with the OCR

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O THER A GENCY /I NSTITUTION R IDERS C ONTINUED

Agency/Rider #

Priority Plan by September 1, 2001 They shall be reported semi annually

by December 31 and June 30 to the institution’s Board of Regents, the Coordinating Board, the Governor and the Legislative Budget Board Anyfunds not spent in the 2002-03 biennium will be transferred to the 2004-

05 without any reduction in future funding for the OCR Priority Plan.Texas Southern It is the intent of the legislature that the funding provided in the OCR University/7 Priority Plan in Rider 5 above be continued as a multi-year commitment

by the Legislature

A RTICLE IX R IDERS

Section/Subsection#

10.18 This section refers to the allocation of additional appropriations contingent upon the

Comptroller certifying that sufficient revenue is available A list is made and a specific order is prescribed for implementation

(a) Any previous appropriation reductions made from General Revenue and the General Revenue related capital budget funding for all agencies will be restored on a pro rata basis first Tuition revenue bond debt service would be restored next, followed by the appropriations previously made related to Special Items for higher education institutions and the restoration of any across the board appropriation reductions

(b) Additional revenue is appropriated for The Texas Grant II Program

(c) Additional revenue is appropriated for junior college formula funding

(f) Additional revenue is appropriated for meeting higher utility costs for institutions

of higher education

(g) Additional revenue is appropriated for the funding of employee salary

increases

10.18 HB 1839 provides $33,774,000 for research and excellence funding at certain

institutions of higher education

10.19 HB 658 provides $76,423,392 for the debt service of tuition revenue bonds from General

Revenue Funds

11.21 HB 2766 provides the Coordinating Board with $50,000 for each year of the biennium for

repayment assistance for certain education loans owed by certain state attorneys

11.22 SB 353 provides the Coordinating Board with $5,078,000 for each year of the

biennium from the Smart Jobs Fund to develop the technology workforce in Texas by supporting and promoting higher education in engineering and computer science

11.23HB 2323 provides the Coordinating Board with $100,000 in General Revenue

funds for each year of the biennium for repayment assistance for law school loans of persons providing legal services to the indigent

25

HB 1387 (Dukes/Barrientos) – For the purpose of reporting top 10 percent graduates, this bill

allows school districts to treat a high school magnet program, academy, or other special

program conducted by the school district at a high school attended by students who are not part

of the special program as an independent high school with its own graduating class separate from the graduating class of other students attending the high school It applies only to special programs that were in operation in the 2000-2001 school year

HB 1641 (Rangel/Barrientos) – Allows a graduate or professional program of a general

academic teaching institution or medical or dental unit to consider certain factors in making admissions or scholarship decisions beginning in the 2002-03 academic year Some of the factors include the applicant’s academic record as a high school and undergraduate student; thesocioeconomic background of the applicant while the applicant attended elementary, secondary and undergraduate school; whether the applicant would be the first generation of the applicant’sfamily to attend or graduate from an undergraduate, graduate, or professional program; and whether the applicant was automatically admitted to a general academic teaching institution as

an undergraduate student under the top 10 percent law It prohibits an applicant’s performance

on a standardized test from being used as the sole or primary criterion for consideration of the applicant in the admissions or competitive scholarship process If the test score is used, the score must be used in comparison to test scores of other applicants with similar socioeconomic backgrounds

Admissions Legislation that Failed to Pass

HB 47 (McClendon/Madla) – Would have required each general academic teaching institution to admit

an applicant with a 3.0 GPA and a degree from a community college or technical institute in Texas, contingent upon the institution having space available for the admission of additional students This bill passed the full House and was considered by the Senate Education Committee on May 7, 9, and 11 and was left pending

HB 112 (Rangel) – Would have made the Recommended High School Program the standard curriculum

for graduating from a Texas public high school and would have made the program a requirement to enroll

at a public four-year institution of higher education For students who “opted out” into the minimum program, this bill would have required these students to attend a community or technical college for at least 30 semester credit hours before they could be eligible to transfer to a public four-year institution This bill was considered by the House Higher Education Committee on March 27 and was left pending

(See HB 1144, a similar bill that passed)

HB 286 (King, Phil) – Would have required institutions of higher education to evaluate applicants with

nontraditional education backgrounds, including home-schooled students, by using the same standards

as their traditionally educated counterparts Would have required that students who have completed a nontraditional secondary education program be treated in accordance with the same general standards

as other applicants for undergraduate admission This bill was favorably reported as substituted by the

House Higher Education Committee on April 10 The committee substitute removed the provision that

would have prohibited an institution of higher education from requiring an applicant to submit evidence showing completion of a nontraditional secondary education, or to submit evidence that the applicant has obtained credentials equal to a high school degree, or to take an examination and comply with any other application or admission requirement not generally applicable to other applicants for undergraduate admission to the institution The bill was sent to the House Calendars Committee on April 20

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