PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD
CHAPTER 1. AGENCY ADMINISTRATION
SUBCHAPTER K. FORMULA ADVISORY COMMITTEE - COMMUNITY AND TECHNICAL COLLEGES
The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 1, Subchapter K, §§1.156 - 1.163, concerning the Community and Technical Colleges Formula Advisory Committee (CTCFAC). Specifically, the Coordinating Board plans to repeal this subchapter and replace it with new language establishing the Standing Advisory Committee for Public Junior Colleges, in accordance with changes made by Tex. H.B. 8, 88th Leg., R.S. (2023). The Coordinating Board also intends to adopt new rules continuing the representation of technical colleges and state colleges in a different advisory committee and transferring the Report of Fundable Operating Expenses provision to a different chapter of Texas Administrative Code (TAC).
Rules 1.156 - 1.163 concern the establishment of the CTCFAC, including the authority and purpose for the committee and its membership, duration, meetings, assigned tasks, and other matters related to formula funding for the community and technical colleges sector.
Statute charges the Coordinating Board with establishing committees composed of representatives from each institutional grouping to study and recommend changes in the funding formulas for each institutional group (Texas Education Code (TEC), §61.059(b)-(b-1)). Currently, the Coordinating Board organizes this obligation in three advisory committees: one for community and technical colleges (encompassing public junior colleges, public technical colleges, and public state colleges), one for general academic institutions, and one for health-related institutions.
As part of the changes enacted by H.B. 8, statute no longer includes public junior colleges funded under TEC, Chapter 130A, on these formula advisory committees (Section 22, H.B. 8, 88th Leg., R.S. (2023)). Instead, these functions will move to a different committee: the public junior college sector will now give advice and counsel on funding through a standing advisory committee established under TEC, §130.001(b) (Section 33, H.B. 8, 88th Leg., R.S. (2023)).
The Coordinating Board intends to repeal Chapter 1, Subchapter K, relating to the CTCFAC, in order to adopt a new chapter establishing the Standing Advisory Committee for Public Junior Colleges. Certain functions currently contained in Chapter 1, Subchapter K, will move to other sections of TAC: the Coordinating Board will ensure that technical colleges and state colleges have continued representation in this process by amending 19 TAC, Part 1, Chapter 1, Subchapter L, to include them within the current formula advisory committee framework. The Coordinating Board also intends to continue the Report of Fundable Operating Expenses in another subchapter of TAC specifically relating to reporting and data requirements for the community college formula funding process.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as the result of adopting this rule is updating TAC to reflect statutory changes to the constitution of the formula advisory committees. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Section 61.059(b)-(b-1), which provides the Coordinating Board with the authority to establish advisory committees consisting of cross-institutional representatives to study and recommend changes in formula funding.
The proposed repeal affects Texas Education Code, Sections 61.059(b)-(b-1) and 130.001(b).
§1.156.Authority and Specific Purposes of the Community and Technical Colleges Formula Advisory Committee.
§1.157.Definitions.
§1.158.Committee Membership and Officers.
§1.159.Duration.
§1.160.Meetings.
§1.161.Tasks Assigned to the Committee.
§1.162.Report of Fundable Operating Expenses.
§1.163.Report to the Board; Evaluation of Committee Costs and Effectiveness.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303611
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 1, Subchapter K, §§1.156 - 1.162, concerning the Standing Advisory Committee for Public Junior Colleges. Specifically, these new sections will establish the Standing Advisory Committee for Public Junior Colleges, in accordance with statutory changes made by Tex. H.B. 8, 88th Leg., R.S. (2023).
Rule 1.156 establishes the statutory authority for the new standing advisory committee, which comes from Texas Education Code (TEC), §§130.001(b)(5) and 130A.005. It also states the purposes of the new standing advisory committee are to provide advice and counsel regarding the funding of public junior colleges, as required by H.B. 8, as well as regarding financial incentives to achieve the goals of the state's higher education plan, as described in TEC, §61.051. The committee may also perform other duties as assigned by the Board or Commissioner, in keeping with TEC, §61.026.
Rule 1.157 contains definitions for common terms used in this subchapter. These definitions parallel definitions used in the TEC and in other parts of the Texas Administrative Code and provide clarity to the reader by distinguishing between the governing board and the agency as a whole.
Rule 1.158 states the membership requirements of the new standing committee and appointment process. The membership requirements are designed to ensure the committee consists of members who have appropriate subject-matter knowledge and who can represent the interests of a broad cross-section of the public junior college sector. The rule caps the number of members on the advisory committee at 12, below the maximum number required by Texas Government Code, §2110.002.
Rule 1.159 states that the committee may continue until September 1, 2027, a four-year period consistent with requirements for the duration of advisory committees contained in Texas Government Code, §2110.008.
Rule 1.160 states that the committee shall meet at least once per quarter and that the presiding officer may call special meetings.
Rule 1.161 stipulates the tasks assigned to the committee, which include providing counsel to the Board and Commissioner on the administration of the public junior college finance program as enacted in TEC, Chapter 130A; studying and making recommendations for the modifications of formula funding or other components of the finance program; identifying funding incentives to accomplish the objectives in the state's strategic plan for higher education; and other charges as devised by the Board or Commissioner.
Rule 1.162 requires the committee to provide recommendations to the Commissioner on policies and rules pertaining to the Public Junior College Finance Program. The timing of these recommendations are based on a schedule determined by the Commissioner in order to inform recommendations to the Board.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Emily Cormier, Assistant Commissioner for Funding, has determined that the public benefit anticipated as the result of adopting this rule is establishing a forum for public junior colleges to provide the Coordinating Board with advice and counsel with respect to the funding of that sector, aligning Coordinating Board rules with recent statutory changes. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The new sections are proposed under Texas Education Code, Section 130.001(b), which provides the Coordinating Board with the authority to establish a standing advisory committee composed of representatives of public junior colleges to provide advice and counsel with respect to the funding of public junior colleges.
The proposed new sections affect Texas Education Code, §§61.026 and 130.001(b), and Texas Government Code, Chapter 2110.
§1.156.Authority and Specific Purposes of the Standing Advisory Committee for Public Junior Colleges.
(a) Authority. Statutory authority for this subchapter is provided in the Texas Education Code, §130.001(b).
(b) Purposes. The Standing Advisory Committee for Public Junior Colleges is created to provide the Commissioner and Board with advice and counsel with respect to the funding of public junior colleges and financial incentives to achieve the goals of the state's higher education plan and carry out the purposes of Texas Education Code, Chapter 130A, implementing the Public Junior College Finance Program. The committee also performs other duties related to funding that the Board or Commissioner assign to the committee.
§1.157.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings:
(1) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board
(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.
(3) Coordinating Board--Unless context indicates otherwise, the agency known as the Texas Higher Education Coordinating Board and staff employed by the agency to carry out assigned duties of the agency.
§1.158.Committee Membership and Officers.
(a) Membership shall consist of senior administrators and representatives of Texas public junior colleges with knowledge of the current funding formulas and the educational goals of the state.
(b) Membership on the committee should include:
(1) Representatives of each accountability group;
(2) Presidents or Chancellors;
(3) Chief Financial or Academic Officers; and
(4) Institutional Research or other expert campus representatives.
(c) The number of committee members shall not exceed twelve (12).
(d) The Commissioner shall recommend members to the Board for appointment.
(e) The Commissioner shall select the presiding officer, who will be responsible for conducting meetings and conveying committee recommendations to the Board and the Commissioner.
(f) Each member shall serve a three-year staggered term, unless otherwise provided by the Commissioner. A member may serve more than one term.
(g) The committee may appoint subcommittees or workgroups as necessary to complete the work.
§1.159.Duration.
The committee shall continue until September 1, 2027, and may be re-established by the Board.
§1.160.Meetings.
The committee shall meet on a regular basis not less than once a quarter. Special meetings may be called as deemed appropriate by the presiding officer.
§1.161. Tasks Assigned to the Committee.
Tasks assigned to the committee include:
(1) Provide counsel to the Board and Commissioner on the administration of the Public Junior College Finance Program;
(2) Study and make recommendations for modification to the formulas and other components of the Public Junior College Finance Program that will increase effectiveness and efficiencies of the programs delivered;
(3) Identify funding incentives that would support the achievement of the state's goals outlined in the long-term master plan for higher education authorized in the Texas Education Code, §61.051(a-1); and
(4) Any other charges issued by the Board or Commissioner of Higher Education.
§1.162.Recommendations.
The committee shall provide recommendations to the Commissioner on policies and rules necessary to implement the Public Junior College Finance Program. The committee shall provide the recommendations on a schedule approved by the Commissioner necessary to ensure the Commissioner can make timely recommendations to the Board for the adoption of rules for the program.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303608
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendment to Texas Administrative Code, Title 19, Part 1, Chapter 1, Subchapter L, §§1.164 - 1.167, concerning the General Academic Institutions Formula Advisory Committee (GAIFAC). Specifically, this amendment adds public technical colleges and public state colleges to the existing GAIFAC, ensuring that those institutions will continue to have representation on formula advisory committees established under Texas Education Code (TEC), §61.059(b)-(b-1), following their removal from the committee for community colleges.
Rules 1.164 - 1.167 make conforming changes to the Texas Administrative Code reflecting the decision to include the technical colleges and state colleges in the existing GAIFAC. Rule 1.165 updates the definitions to more accurately reflect the terms used in Texas Education Code chapter 61 and these rules.
Statute charges the Board with establishing committees composed of representatives from each institutional grouping to study and recommend changes in the funding formulas for each institutional group (TEC, §61.059(b)-(b-1)). Currently, the Board organizes this obligation in three advisory committees: one for community and technical colleges (encompassing public junior colleges, public technical colleges, and public state colleges), one for general academic institutions, and one for health-related institutions.
As part of the changes enacted by H.B. 8, statute no longer includes public junior colleges funded under TEC, Chapter 130A, on these formula advisory committees (Section 22, H.B. 8, 88th Leg., R.S. (2023)). Instead, these functions will move to a different committee: the public junior college sector will now give advice and counsel on funding through a standing advisory committee established under TEC, §130.001(b) (Section 33, H.B. 8, 88th Leg., R.S. (2023)).
The Board has established a new advisory committee solely for public junior colleges in chapter 1, subchapter K, of these rules. To ensure that public technical colleges and public state colleges continue to have representation on the formula advisory committees, the Coordinating Board proposes including their representatives on the GAIFAC.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be ensuring the continued representation of public technical colleges and public state colleges in the formula funding policymaking process, in accordance with TEC, §61.059(b)-(b-1). There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.059(b)-(b-1), which provides the Coordinating Board with the authority to establish advisory committees consisting of cross-institutional representatives to study and recommend changes in formula funding.
The proposed amendment affects Texas Education Code, Sections 61.059(b)-(b-1) and 130.001(b).
§1.164.Authority and Specific Purposes of the General Academic Institutions, Technical Colleges, and State Colleges Formula Advisory Committee.
(a) Authority. Statutory authority for this subchapter is provided in the Texas Education Code, §61.059(b) and (b-1).
(b) Purposes. The General Academic Institutions, Technical Colleges, and State Colleges Formula Advisory Committee is created to provide the Board with advice and recommendation(s) regarding a set of formulas that provide appropriate funding levels and financial incentives necessary to best achieve the goals of the state's higher education plan. The committee also performs other duties related to formula funding that the Board finds to be appropriate.
§1.165.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings:
(1) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board.
(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.
(3) Interested persons--Persons who attend committee meetings as representatives of stakeholder entities and any other persons who have made their interest in the work of the committee known to its presiding officer. Such interested persons may participate in committee discussions, as invited by the presiding officer to do so, but do not have the authority to cast votes.
(4) Public state colleges--Lamar State College - Port Arthur, Lamar State College - Orange, and Lamar Institute of Technology.
(5) The Texas Higher Education Coordinating Board--the agency known as the Texas Higher Education Coordinating Board and its staff.
§1.166.Committee Membership and Officers.
(a) Membership shall consist of representatives of Texas public general academic institutions, public state colleges, and Texas State Technical College with knowledge of the current funding formulas and the educational goals of the state.
(b) Membership on the committee should include representatives of each accountability group and at least one individual each to represent the public state colleges and Texas State Technical Colleges.
(c) Interested persons, such as legislative and governmental relations staff shall be regularly advised of committee meetings.
(d) The number of committee members shall not exceed twenty-four (24).
(e) The committee may appoint subcommittees or workgroups as necessary to complete its work. The subcommittees or workgroups may include members from the formula advisory committees and other institutional representatives as appropriate.
(f) Members of the committee shall select the presiding officer, who will be responsible for conducting meetings and conveying committee recommendations to the Board.
(g) Members shall serve six-year staggered terms with one-third of the membership expiring every other year. A member can be re-appointed to serve another term.
§1.167.Duration.
Not later than September 1 of each odd-numbered year, the Board shall appoint an advisory committee to review the funding formulas for the use of the Governor and the Legislative Budget Board in making appropriations recommendations to the legislature for general academic institutions, technical colleges, and state colleges.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303612
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
SUBCHAPTER E. APPROVAL PROCESS FOR NEW BACCALAUREATE PROGRAMS AT PUBLIC JUNIOR COLLEGES
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 2, Subchapter E, §2.87, concerning approval of baccalaureate degrees at public junior colleges. Specifically, this amended section authorizes a public junior college with a baccalaureate degree the ability to change accreditors if it has already been approved by the Southern Association of Colleges and Schools Commission on Colleges.
This amendment aligns with Texas Education Code, §61.051 and §61.003(13), which provides the Coordinating Board with authority to coordinate higher education and designate recognized accreditation organizations.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section is expanding the number of Coordinating Board recognized institutional accreditors. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Sections 61.051 and 61.003(13), which provides the Coordinating Board with authority to coordinate higher education and designate recognized accreditation organizations.
The proposed amendment affects Texas Education Code, Sections 61.051 and§61.003(13).
§2.87.Criteria for New Baccalaureate Degree Programs.
(a) The Board may authorize baccalaureate degree programs at a public junior college in the fields of applied science, including a degree program in applied science with an emphasis on early childhood education, applied technology, or nursing, that have a demonstrated workforce need.
(b) All proposed baccalaureate degree programs must meet the criteria set out in this subsection, in addition to the general criteria in subchapter A, §2.5 (relating to General Criteria for Program Approval), and subchapter F, §2.118 (relating to Post-Approval Program Reviews), of this chapter.
(c) Each public junior college seeking to offer a baccalaureate degree program must comply with the requirements and limitations specified in Tex. Educ. Code, chapter 130, subchapter L.
(d) A public junior college offering a baccalaureate degree program must meet all applicable accreditation requirements of the Southern Association of Colleges and Schools Commission on Colleges. A public junior college that has attained accreditation by the Southern Association of Colleges and Schools Commission on Colleges is authorized to change accreditors to any accrediting agency approved by the Board under chapter 4, subchapter J of this title (relating to Accreditation).
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303613
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 2, Subchapter J, §2.202, concerning approval of distance education for public institutions. Specifically, this amendment will correct the definition of Hybrid Program to align with the overall definition of Distance Education Degree or Certificate Program that went into effect May 18, 2023.
Rule 2.202, Definitions, provides the meanings of terms used in the subchapter, including definitions for 100-Percent Online Course, Hybrid Course, 100-Percent Online Program, and Hybrid Program. These definitions were effective May 18, 2023, and brought Coordinating Board rules in closer alignment with standard practices in the industry. The proposed amendment corrects the definition of Hybrid Program to better align with the overall definition of Distance Education Degree or Certificate Program.
Michelle Singh, Assistant Commissioner for Digital Learning, has determined that for each of the first five years the section is in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rule. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Michelle Singh, Assistant Commissioner for Digital Learning, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the continued maintenance of the Coordinating Board's Distance Education Inventory. There are no anticipated economic costs to persons who are required to comply with the section as proposed.
Government Growth Impact Statement
(1) the rule will not create or eliminate a government program;
(2) implementation of the rule will not require the creation or elimination of employee positions;
(3) implementation of the rule will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rule will not require an increase or decrease in fees paid to the agency;
(5) the rule will not create a new rule;
(6) the rule will not limit an existing rule;
(7) the rule will not change the number of individuals subject to the rule; and
(8) the rule will not affect this state's economy.
Comments on the proposal may be submitted to Michelle Singh, Assistant Commissioner for Digital Learning, P.O. Box 12788, Austin, Texas 78711-2788, or via email at digitallearning@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.0512(g), which provides the Coordinating Board with the authority to approve distance learning courses offered by institutions of higher education.
The proposed amendment affects Texas Education Code §61.0512(g).
§2.202.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. The definitions in 19 TAC, Chapter 2, Subchapter A, §2.3, apply for this subchapter unless a more specific definition for the same term is indicated in this rule.
(1) Credit course--A college-level course that, if successfully completed, can be applied toward the number of courses required for achieving an academic or workforce degree, diploma, certificate, or other formal award.
(2) Distance Education--The formal educational process that occurs when students and instructors are in separate physical locations for the majority (more than 50 percent) of instruction.
(3) Distance Education Course--A course in which a majority (more than 50 percent) of the instruction occurs when the student(s) and instructor(s) are in separate physical locations. The definition of distance education course does not include courses with 50 percent or less instruction when the student(s) and instructor(s) are in separate physical locations. Two categories of distance education courses are defined:
(A) 100-Percent Online Course--A distance education course in which 100 percent of instructional activity takes place when the student(s) and instructor(s) are in separate physical locations. Requirements for on-campus or in-person orientation, testing, academic support services, internships/fieldwork, or other non-instructional activities do not exclude a course from this category.
(B) Hybrid Course--A distance education course in which more than 50 percent but less than 100 percent of instructional activity takes place when the student(s) and instructor(s) are in separate physical locations.
(4) Distance Education Degree or Certificate Program--A program in which a student may complete a majority (more than 50 percent) of the credit hours required for the program through distance education courses. The definition of a Distance Education Degree or Certificate Program does not include programs in which 50 percent or less of the required credit hours are offered through distance education. Two categories of distance education programs are defined:
(A) 100-Percent Online Program--A degree program in which students complete 100 percent of the credit hours required for the program through 100-Percent Online Courses. Requirements for on-campus or in-person orientation, testing, academic support services, internships/fieldwork, or other non-instructional activities do not exclude a program from this category.
(B) Hybrid Program--A degree program in which students
complete more than 50 percent but [or more
and] less than 100 percent of the credit hours required for
the program through Distance Education Courses.
(5) Institutional Accreditor--A federally recognized institutional accreditor approved by the Department of Education under 20 U.S.C. §1099b.
(6) Institutional Plan for Distance Education ("Plan" or "IPDE")--A plan that an institution must submit for Coordinating Board approval prior to offering a distance education program for the first time. Each institution shall periodically update its plan on a schedule as specified in §2.205 of this subchapter.
(7) Principles of Good Practice for Distance Education--Standards and criteria for distance education delivered by Texas public institutions. This document is reviewed and adopted by the Board every three years in accordance with §2.204 of this subchapter. This document is also known as "Principles of Good Practice for Academic Degree and Certificate Programs and Credit Courses Offered at a Distance."
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303614
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6284
SUBCHAPTER A. GENERAL PROVISIONS
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 4, Subchapter A, §4.9, concerning limitations on the number of courses that may be dropped under certain circumstances by undergraduate students. Specifically, this amendment adds language prohibiting institutions from counting certain courses toward the limit.
The proposed amendment excludes institutions from counting courses a student dropped while enrolled in a previously completed baccalaureate degree program or while enrolled in dual credit courses as a high school student. Coordinating Board authority for this section is found in Texas Education Code §61.051 which describes the Board's role in the Texas system of higher education.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commission for Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be fewer limitations on the number of courses that undergraduate students may drop. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.051, which provides the board with authority to coordinate higher education.
The proposed amendment affects Texas Education Code, Section 61.051.
§4.9.Limitations on the Number of Courses that That May be [Be] Dropped Under [under] Certain Circumstances by [By] Undergraduate Students.
(a) Beginning with the fall 2007 academic term, and applying to students who enroll in higher education for the first time during the fall 2007 academic term or any term subsequent to the fall 2007 term, an institution of higher education may not permit an undergraduate student a total of more than six dropped courses, including any course a transfer student has dropped at another institution of higher education, unless:
(1) the institution has adopted a policy under which the maximum number of courses a student is permitted to drop is less than six; or
(2) a disaster declared by the governor results in cessation or limitation of in-person course attendance by students at the institution of a duration determined by the institution to significantly affect the student's ability to participate in course work with consideration of the length of time of the cessation or limitation of in-person course attendance, the type of courses, and the personal circumstances of students affected by the disaster; or
(3) the student shows good cause for dropping more than that number, including but not limited to a showing of:
(A) a severe illness or other debilitating condition that affects the student's ability to satisfactorily complete the course;
(B) the student's responsibility for the care of a sick, injured, or needy person if the provision of that care affects the student's ability to satisfactorily complete the course;
(C) the death of a person who is considered to be a member of the student's family or who is otherwise considered to have a sufficiently close relationship to the student that the person's death is considered to be a showing of good cause;
(D) the active duty service as a member of the Texas National Guard or the armed forces of the United States of either the student or a person who is considered to be a member of the student's family or who is otherwise considered to have a sufficiently close relationship to the student that the person's active military service is considered to be a showing of good cause;
(E) the change of the student's work schedule that
is beyond the control of the student[,] and that affects
the student's ability to satisfactorily complete the course; or
(F) other good cause as determined by the institution of higher education.
(4) the enrollment is for a student who qualifies for a seventh course enrollment, who:
(A) has reenrolled at the institution following a break in enrollment from the institution or another institution of higher education covering at least the 24-month period preceding the first class day of the initial semester or other academic term of the student's reenrollment; and
(B) successfully completed at least 50 semester credit hours of course work at an institution of higher education that are not exempt from the limitation on formula funding set out in §13.104(1) - (6) of this title (relating to Exemptions for Excess Hours) before that break in enrollment.
(b) For purposes of this section, a "member of the student's family" is defined to be the student's spouse, child, grandchild, father, mother, brother, sister, grandmother, grandfather, aunt, uncle, nephew, niece, first cousin, step-parent, step-child, or step-sibling; a "person who is otherwise considered to have a sufficiently close relationship to the student" is defined to include any other relative within the third degree of consanguinity, plus close friends, including but not limited to roommates, housemates, classmates, or other persons identified by the student, for approval by the institution on a case-by-case basis.
(c) For purposes of this section, a "grade" is defined to be the indicator, usually a letter like A, B, C, D, or F, or P (for pass) assigned upon the student's completion of a course. A "grade" indicates either that the student has earned and will be awarded credit, if the student has completed the course requirements successfully; or that the student remained enrolled in the course until the completion of the term or semester but failed to provide satisfactory performance required to be awarded credit. A "grade" under this definition does not include symbols to indicate that the course has been left incomplete, whether those symbols indicate a negotiated temporary suspension of the end-of-term deadline for completion of the course requirements commonly designated as "incomplete" status, a dropped course under the conditions designated for this section, or a withdrawal from the institution.
(d) An institution of higher education may not count toward the number of courses permitted to be dropped a course that the student dropped:
(1) while enrolled in a baccalaureate degree program previously earned by the student; or
(2) a dual credit or dual enrollment course that a student dropped before graduating from high school.
(e) [(d)] Each institution of
higher education shall adopt a policy and procedure for determining
a showing of good cause as specified in subsection (a) of this section
and shall provide a copy of the policy to the Coordinating Board.
(f) [(e)] Each institution of
higher education shall publish the policy adopted under this section
in its catalogue and other print and Internet-based publications as
appropriate for the timely notification of students.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303615
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 4, Subchapter J, §4.191 and §4.192, concerning recognized institutional accreditors. Specifically, this new section identifies Coordinating Board recognized accrediting organizations. The Board selected the proposed accrediting agencies because these are the accrediting agencies that were the historic regional accreditors and those from which most Texas institutions of higher education would be likely to seek accreditation.
Subchapter J, Accreditation, aligns with Texas Education Code §61.051 and §61.003(13) which provides the Coordinating Board with authority to coordinate higher education and designate recognized accreditation organizations. The new language supports the US Department of Education's decision to allow regional accrediting organizations to accredit institutions anywhere in the country.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be greater flexibility for public institutions of higher education. This rule amendment would allow additional accrediting options and improved efficiency for Texas institutions of higher education. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The new sections are proposed under Texas Education Code, Sections 61.051 and 61.003(13) which provides the board with authority to coordinate higher education and designate recognized accreditation organizations.
The proposed new sections affect Texas Education Code Sections 61.051 and §61.003(13).
§4.191.Authority.
The authority for this subchapter is Texas Education Code, §61.051 and §61.003(13), which provides the board with authority to coordinate higher education and designate recognized accreditation organizations.
§4.192.Recognized Accrediting Agency.
(a) The board recognizes the following accrediting organizations to accredit institutions of higher education that offer an associate degree or higher:
(1) Higher Learning Commission;
(2) New England Commission of Higher Education;
(3) Northwest Commission of Colleges and Universities;
(4) Middle States Commission on Higher Education;
(5) Southern Association of Colleges and Schools Commission on Colleges;
(6) Western Association of Schools and Colleges Accrediting Commission for Senior Colleges and Universities; or
(7) Western Association of Schools and Colleges Accrediting Commission for Community and Junior Colleges.
(b) This also includes any revisions to the names of these organizations moving forward.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303616
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 4, Subchapter P, §§4.255 - 4.264, concerning approval of distance education courses and programs for public institutions. Specifically, this repeal will remove rules replaced by the new Title 19, Part 1, Chapter 2, Subchapter J, approved by the Coordinating Board at its April 2023.
Dr. Michelle Singh, Assistant Commissioner for Digital Learning, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the repeal. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the repeal. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Dr. Michelle Singh, Assistant Commissioner for Digital Learning, has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the repeal will be the removal of rules replaced by the new Title 19, Part 1, Chapter 2, Subchapter J, approved by the Coordinating Board at its April 2023 meeting. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the repeal will not create or eliminate a government program;
(2) implementation of the repeal will not require the creation or elimination of employee positions;
(3) implementation of the repeal will not require an increase or decrease in future legislative appropriations to the agency;
(4) the repeal will not require an increase or decrease in fees paid to the agency;
(5) the repeal will not create a new rule;
(6) the repeal will not limit an existing rule;
(7) the repeal will not change the number of individuals subject to the rule; and
(8) the repeal will not affect this state's economy.
Comments on the proposal may be submitted to Dr. Michelle Singh, Assistant Commissioner for Digital Learning, P.O. Box 12788, Austin, Texas 78711-2788, or via email at digitallearning@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Section 61.0512(g), which provides the Coordinating Board with the authority to approve distance learning courses offered by institutions of higher education.
The proposed repeal affects Texas Education Code, Section 61.0512(g).
§4.255.Purpose.
§4.256.Authority.
§4.257.Definitions.
§4.258.General Provisions.
§4.259.Institutional Plan for Distance Education.
§4.260.Standards and Criteria for Institutions.
§4.261.Standards and Criteria for Distance Education Programs.
§4.262.Standards and Criteria for Distance Education Courses.
§4.263.Standards and Criteria for Distance Education Faculty.
§4.264.Formula Funding General Provisions.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303617
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6284
SUBCHAPTER B. ROLE AND MISSION, TABLES OF PROGRAMS, COURSE INVENTORIES
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 5, Subchapter B, §5.24, concerning the submission of mission statements and planning notifications. Specifically, this amendment will remove rule text related to submission of planning notifications for specific degree programs that has been superseded by rules adopted by the Coordinating Board in October 2022.
Rule 5.24, Submission of Mission Statements and Planning Notification, sets out requirements for institutions to submit mission statements for their institutions and planning notifications for a certain subset of academic programs. This rule was replaced by 19 Texas Administrative Code Ch. 2, Subch. C, adopted on Oct. 28, 2022, which sets out how institutions must submit planning notifications for proposed programs in line with Texas Education Code §61.0512(b). The proposed amendments repeal portions of existing rule that have been replaced by recent rulemaking.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the improved clarity of the program approval rules, now wholly contained in 19 Texas Administrative Code Part 1, Ch. 2. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.0512(b), which provides the Coordinating Board with the authority to require institutions to submit notification prior to beginning preliminary planning for a new degree program.
The proposed amendment affects Texas Education Code §61.0512(b).
§5.24.Submission of Mission Statements and Planning Notification.
[(a) When submitting a Planning Notification
to add a degree program (baccalaureate, master's, and doctoral) to
the institution's program inventory, an institution of higher education
may be requested to address the Board at a regularly scheduled meeting
to describe how the institution believes the potential program contributes
to the efficient and effective diffusion of education throughout the
state while avoiding costly duplication in program offerings, faculties,
and physical plants. An institution shall submit written information
to the Board including the title of the potential proposed program,
level, Classification of Instructional Program (CIP) Code, anticipated
date of proposal submission, and provide a brief description of the
proposed program. Planning Notification must occur prior to an institution
beginning planning for or submitting a proposal for a new degree program
that requires Board approval.]
[(b)] Review Process.
(1) As provided by Texas Education Code, §61.051(a-5) and §61.052, the Board shall regularly review the role and mission statements, and all similar degree and certificate programs offered by each public senior university or health related institution.
(2) The Boards of Regents shall approve or re-approve institutional mission statements. Each Board of Regents shall provide the Coordinating Board with its current institutional mission statements after any change has been approved.
[(3) Planning Notification must be
submitted at least one year prior to submission of a proposal to offer
the degree if the proposed program would be a program leading to the
award of a "professional degree," as defined by Texas Education Code
61.306, including Doctor of Medicine (M.D.), Doctor of Osteopathy
(D.O.), Doctor of Dental Surgery (D.D.S.), Doctor of Veterinary Medicine
(D.V.M.), Juris Doctor (J.D.), and Bachelor of Laws (LL.B.).]
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303618
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
19 TAC §§5.41 - 5.46, 5.48, 5.50, 5.52 - 5.55
The Texas Higher Education Coordinating Board (Coordinating Board) proposes repeal of Texas Administrative Code, Title 19, Part 1, Chapter 5, Subchapter C, §§5.41 - 5.46, 5.48, 5.50, 5.52 - 5.55, concerning approval of new academic programs at public universities, health-related institutions, and review of existing programs. Specifically, this repeal will remove language related to new academic program approval and review in existing rules, as that language has been superseded by rules adopted by the Coordinating Board in October 2022.
Rules 5.41 - 5.46, 5.48, 5.50 and 5.54 concern the process for four-year institutions (general academic institutions and health-related institutions) to request approval for new academic programs, specifically new doctoral, master's, baccalaureate, and certificate programs. The Coordinating Board replaced these processes with rules contained in 19 Texas Administrative Code Chapter 2, Subchapter A, General Provisions; Subchapter B, Approval Process for a Certificate; Subchapter F, concerning approving new baccalaureate and master's degrees; and Subchapter G, concerning approving new doctoral and professional degree programs. The new rule language brings Coordinating Board processes and procedures closer to the requirements of statute, contained in Texas Education Code §61.0512, while also improving the navigability and readability of rules for institutions subject to these requirements. The proposed repeal will remove the old rules superseded by the new rule content.
Rules 5.52 - 5.53 concern the Coordinating Board's evaluation or review of academic programs that have already received approval. The Coordinating Board has moved and centralized all rules related to program review and evaluation in a new subchapter in 19 Texas Administrative Code Chapter 2, Subchapter I, a single location easy for institutions to find and navigate. This new subchapter now contains rules carrying out Coordinating Board statutory obligations in Texas Education Code §§61.0512(e) and 130.311. The proposed repeal will remove language superseded by the new subchapter.
Rule 5.55 concerns how institutions may request revisions to approved programs. The Coordinating Board has established a new section of rule outlining in greater detail how institutions can submit requests for revisions and modifications to approved programs in 19 Texas Administrative Code §2.9. The new rule language provides more guidance on program revision than existing §5.55, which the Coordinating Board proposes to repeal.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be clarifying administrative code by removing sections from the Texas Administrative Code that are superseded by rules approved by the Texas Higher Education Coordinating Board in October 2022. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Section 61.0512, which provides the Coordinating Board with the authority to approve new programs and conduct review of existing programs.
The proposed repeal affects Texas Education Code §61.0512.
§5.41.Purpose.
§5.42.Authority.
§5.43.Definitions.
§5.44.Presentation of Requests and Steps for Implementation.
§5.45.Criteria for New Baccalaureate and Master's Degree Programs.
§5.46.Criteria for New Doctoral Programs.
§5.48.Criteria for Certificate Programs at Universities and Health-Related Institutions.
§5.50.Approvals by the Commissioner.
§5.52.Review of Existing Degree Programs.
§5.53.Annual Evaluation of New Doctoral Degree Programs.
§5.54.Noncompliance with Conditions of Approval for New Doctoral Degree Programs.
§5.55.Revisions to Approved Programs.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303620
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
SUBCHAPTER B. GENERAL PROVISIONS
The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 9, Subchapter B, §9.28 and §9.29, concerning the certification of public community colleges as eligible to receive state appropriations. Specifically, the Coordinating Board plans to repeal these rules and replace them with a new certification process as a result of changes in statute to certification made by Tex. H.B. 8, 88th Leg., R.S. (2023).
Rule 9.28 reiterates the requirements that were in the statute that community colleges had to meet to be eligible to receive state appropriations. This list was modified in Texas Education Code, §130.003, by Section 34 of Tex. H.B. 8, 88th Leg., R.S. (2023).
Rule 9.29 governs how the Coordinating Board receives and transmits those certifications to the Comptroller and State Auditor to affirm their eligibility to receive state appropriations. The required date and process to transmit these certifications was amended in Texas Education Code, §61.063, by Section 24 of Tex. H.B. 8, 88th Leg., R.S. (2023). Concurrent with other changes made by Tex. H.B. 8, 88th Leg., R.S. (2023), the certification process is being updated in alignment with statutory changes and moved to a new subchapter.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
The public benefit anticipated as the result of adopting this rule is updating Texas Administrative Code to be consistent with statutory changes made by Tex. H.B. 8, 88th Leg., R.S. (2023). There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Section 61.063, which provides the Coordinating Board with the authority to certify what public junior colleges are eligible to receive state appropriations.
The proposed repeal affects Texas Education Code, Sections 61.063 and 130.003.
§9.28.Appropriations.
§9.29.Certification.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303621
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes repeal of Texas Administrative Code, Title 19, Part 1, Chapter 9, Subchapter J, §§9.181 - 9.186, concerning approval of new academic associate degree and certificate programs at public two-year institutions. Specifically, this repeal will remove language related to new academic program approval in existing rules, as that language has been superseded by rules adopted by the Coordinating Board in 2023.
Rules 9.181 - 9.186 concern the approval criteria and steps for implementation of new academic associate degree and certificate programs at two-year institutions (public junior colleges, Texas State Technical College-Harlingen, and Lamar State Colleges). The Coordinating Board replaced these processes with rules contained in 19 Texas Administrative Code Ch. 2, Subch. A, General Provisions, Subch. B, Approval Process for Certificates, and Subch. D, Approval Process for New Associate Degrees.
The new rule language brings Coordinating Board processes and procedures closer to the requirements of statute, contained in Texas Education Code, §61.0512, while also improving the navigability and readability of rules for institutions subject to these requirements. The proposed repeal will remove the old rules superseded by the new rule content.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the improved clarity of the program approval rules, now wholly contained in 19 Texas Administrative Code Part 1, Ch. 2. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Section 61.0512, which provides the Coordinating Board with the authority to approve new programs, and Section 130.001, which requires the Coordinating Board to adopt policies and establish rules to carry out statutory duties with respect to public junior colleges.
The proposed repeal affects Texas Education Code, Sections 61.0512 and 130.001.
§9.181.Purpose.
§9.182.Authority.
§9.183.Degree Titles, Program Length, and Program Content.
§9.184.Criteria for New Academic Associate Degree Programs and Steps for Implementation.
§9.185.Academic Certificates.
§9.186.Academic Programs Offered by Texas State Technical College-Harlingen.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303622
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
The Texas Higher Education Coordinating Board (Coordinating Board) proposes repeal of Texas Administrative Code, Title 19, Part 1, Chapter 9, Subchapter L, §§9.550 - 9.555, concerning approval of multidisciplinary studies degrees at public two-year institutions. Specifically, this repeal will remove language related to new academic program approval and review in existing rules, as that language has been superseded by rules adopted by the Coordinating Board in 2022.
Rules 9.550 - 9.555 concern the requirements for multidisciplinary associate degrees at two-year institutions (public community colleges, Texas State Technical College-Harlingen, and Lamar State Colleges). The Coordinating Board replaced these requirements with rules contained in 19 Texas Administrative Code Chapter 2, Subchapter A, General Provisions and Subchapter D, Approval Process for New Associate Degrees. The new rule language better aligns with Texas Education Code, §130.0104 and §61.0512, and improves the navigability and readability of rules for institutions subject to these requirements. The proposed repeal will remove the old rules superseded by the new rule content.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the improved clarity of the program approval rules, now wholly contained in 19 Texas Administrative Code Part 1, Chapter 2. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Section 61.0512, which provides the Coordinating Board with the authority to approve new programs and section 130.0104 which requires public junior colleges to establish the multidisciplinary studies associate degree.
The proposed repeal affects Texas Education Code, §§61.0512 and 130.0104.
§9.550.Purpose.
§9.551.Authority.
§9.552.Definitions.
§9.553.Multidisciplinary Studies Associate Degree Program.
§9.554.Adoption of Program.
§9.555.Student Advising.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303624
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
The Texas Higher Education Coordinating Board (Coordinating Board) proposes repeal of Texas Administrative Code, Title 19, Part 1, Chapter 9, Subchapter N, §§9.670 - 9.678 concerning approval of new baccalaureate programs at public junior colleges. Specifically, this repeal will remove language related to baccalaureate degree program approval and reporting requirements in existing rules, as that language has been superseded by rules adopted by the Coordinating Board in October 2022.
Rules 9.670 - 9.678 concern Coordinating Board approval and oversight of baccalaureate degrees at public junior colleges. In October 2022, the Coordinating Board adopted new rules relating to the oversight of this type of degree program located in 19 TAC Ch. 2, Subch. E. The new rules carry out the Coordinating Board's statutory obligations under Tex. Educ. Code §§61.0512, 130.302, and 130.312 in a single centralized location, organized to improve the readability of the Coordinating Board's administrative code. Because the old rules in Ch. 9 have been superseded by the new rules in Ch. 2, the Coordinating Board proposes repeal of the old rules.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has determined that for each of the first five years the repeals are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the repeals. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the repeals. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the repeals.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, has also determined that for each year of the first five years the repeals are in effect, the public benefit anticipated as a result of administering the repeals will be the improved clarity of the program approval rules, now wholly contained in 19 TAC Part 1, Ch. 2. There are no anticipated economic costs to persons who are required to comply with the repeals as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Elizabeth Mayer, Assistant Commissioner for Academic and Health Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at elizabeth.mayer@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Sections 61.0512(h)(2), 130.302, and 130.312, which provides the Coordinating Board with the authority to administer and approve certain baccalaureate degree programs at public junior colleges.
The proposed repeal affects Texas Education Code §§61.0512(h)(2), 130.302, and 130.312.
§9.670.Purpose.
§9.671.Authority.
§9.672.Definitions.
§9.673.General Provisions.
§9.674.Program Requirements.
§9.675.Required Articulation Agreements.
§9.676.Special Requirements for Nursing Degree Programs.
§9.677.Funding.
§9.678.Reporting.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303627
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6182
SUBCHAPTER A. DEFINITIONS
The Texas Higher Education Coordinating Board (Coordinating Board) proposes an amendment to Texas Administrative Code (TAC), Title 19, Part 1, Chapter 13, Subchapter A, §13.1, concerning finance-related definitions. Specifically, this amendment will add greater specificity and clarity to the definitions applying to finance-related rules. To implement H.B. 8, 88th Leg., R.S. (2023) which makes significant changes to the funding system for community colleges, the Coordinating Board has determined the need for greater precision in the terminology used for financial rules broadly.
Rule 13.1(4), (7), and (8) specifies three distinct entities: "Board," meaning the nine-member appointed governing body of the Texas Higher Education Coordinating Board; "Coordinating Board," meaning the state agency as a whole; and "Coordinating Board Staff or Board Staff," meaning the staff of the agency. Separating these terms improves the readability and precision of the rules contained in Chapter 13 and allows the Coordinating Board to make a distinction between actions taken by the governing body, agency staff, and the agency as a whole.
Rule 13.1(5) defines the census date, which is the deadline for institutions to submit data relating to students in attendance for the purposes of formula funding. This definition implements Texas Education Code, §§130A.006 and 130A.008, which requires the Coordinating Board to stipulate data reporting requirements in rule.
Rule 13.1(25) - (28) separates a single definition for public two-year colleges into three different component sectors: public junior colleges, public technical institutes, and public state colleges. Section 46, Tex. H.B. 8, 88th Leg., R.S. (2023) codifies a formula funding system for public community colleges distinct from the formula funding systems for public technical institutions and public state colleges implemented in the General Appropriations Act. The revised definitions allow for greater drafting clarity and align finance terms in Chapter 13 with Texas Education Code, §61.003, and with institutional categories used by state appropriators.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the section is in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rule. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be establishing greater clarity and precision in the definitions used in Title 19, Part 1, Chapter 13, relating to Financial Planning. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rule will not create or eliminate a government program;
(2) implementation of the rule will not require the creation or elimination of employee positions;
(3) implementation of the rule will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rule will not require an increase or decrease in fees paid to the agency;
(5) the rule will not create a new rule;
(6) the rule will not limit an existing rule;
(7) the rule will not change the number of individuals subject to the rule; and
(8) the rule will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 130A.005, allowing the Coordinating Board to adopt rules necessary to implement and administer the Public Junior College State Finance Program.
The proposed amendment affects Texas Education Code Section 61.003.
§13.1.Definitions.
The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise or the relevant subchapter specifies a different definition.
(1) Auxiliary Enterprise--Activities providing a service to students, faculty, or staff for a fee directly related to, although not necessarily equal to, the cost of the service.
(2) Available University Fund (AUF)--A fund established in Article 7, §18, of the Texas Constitution to receive all interest and earnings of the Permanent University Fund and used to pay the debt service on PUF-backed bonds.
(3) Base Year--The semesters comprising the year of contact hours used for applying the formula funding distribution to the colleges and universities (usually the summer and fall of even years and the spring of odd years).
(4) Board [or Coordinating Board] --The
governing body of the agency known as the [The] Texas
Higher Education Coordinating Board.
(5) Census Date--The date upon which an institution may report a student in attendance for the purposes of formula funding as specified in the Coordinating Board Management (CBM) manual for the year in which the funding is reported.
(6) [(5)] Contact Hour--A time
unit of instruction used by community, technical, and state colleges
consisting of 60 minutes, of which 50 minutes must be direct instruction.
(7) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.
(8) Coordinating Board Staff or Board Staff--Agency staff acting under the direction of the Board and the Commissioner.
(9) [(6)] Current Operating Funds--Unrestricted
(appropriated) funds, designated funds, restricted funds, and auxiliary
enterprise funds.
(10) [(7)] Developmental Coursework--Non-degree-credit
courses designed to address a student's deficiencies.
(11) [(8)] Developmental Education--Courses,
tutorials, laboratories, or other efforts to bring student skills
in reading, writing, and mathematics to entering college level. English
as a Second Language (ESL) courses may be considered developmental
education, but only when they are used to bring student skill levels
in reading or writing to entering college level. The term as used
in this chapter does not include courses in study skills or thinking skills.
(12) [(9)] Formula Funding--The mathematical method used to allocate appropriated sources of
funds among institutions of higher education.
(13) [(10)] Functional categories
(as defined by National Association of College [college]
and University Business Officers)--Instruction, research, public service,
academic support, student service, institutional support, operation
and maintenance of plant, scholarships and fellowships, depreciation,
auxiliary enterprises, and hospital.
(14) [(11)] General Academic
Teaching Institution--Any college, university, or institution so classified
in Texas Education Code, §61.003(3), or created and so classified by law.
(15) [(12)] General Revenue (GR)--State
tax revenue.
(16) [(13)] Governmental Accounting
Standards Board (GASB)--An entity created by the Financial Accounting
Foundation to set accounting standards for governmental entities including
public institutions of higher education.
(17) [(14)] Higher Education
Fund (HEF)--A fund established in Article 7, §17, of the Texas
Constitution to fund capital improvements and capital equipment for
institutions not included in the Permanent University Fund.
(18) [(15)] Independent institution
of higher education--A private or independent college or university
as defined in Texas Education Code, §61.003(15), that is:
(A) organized under the Texas Non-Profit Corporation Act;
(B) exempt from taxation under Article VIII, §2, of the Texas Constitution and §501(c)(3) of the Internal Revenue Code; and
(C) accredited by the Commission on Colleges of the Southern Association of Colleges and Schools.
(19) [(16)] Institution of Higher
Education or Institution--Any public technical institute, public junior
college, public senior college or university, medical or dental unit,
public state college, or other agency of higher education as defined
in Texas Education Code, §61.003.
(20) [(17)] Institutional Expenditures--All
costs of activities separately organized and operated in connection
with instructional departments primarily for the purpose of giving
professional training to students as a necessary part of the educational
work of the related departments.
(21) [(18)] Institutional Funds--Fees,
gifts, grants, contracts, and patient revenue, not appropriated by
the legislature.
(22) [(19)] Local Funds--Tuition,
certain fees, and other educational and general revenue appropriated
by the legislature.
(23) [(20)] National Association
of College and University Business Officers (NACUBO)--Provides guidance
in business operations of higher education institutions.
(24) [(21)] Permanent University
Fund (PUF)--A fund established in Article 7, §11, of the Texas
Constitution to fund capital improvements and capital equipment at
certain institutions of higher education.
[(22) Public Junior College, Public
Technical Institute, Public State College, or Public Two-Year College--Any
public junior college, public community college, public technical
college, or public state college as defined in Texas Education Code, §61.003.]
(25) Public Junior College--A public institution of higher education as defined in Texas Education Code, §61.003(2).
(26) Public State College--Any public state college as defined in Texas Education Code, §61.003(16).
(27) Public Technical Institute--Any public technical institute as defined in Texas Education Code, §61.003(7), excluding Lamar Institute of Technology.
(28) Public Two-year College--Any public junior college, public community college, public technical institute, or public state college.
(29) [(23)] Semester Credit Hour (SCH)--A unit of measure of instruction consisting of 60 minutes,
of which 50 minutes must be direct instruction, over a 15-week period
in a semester system or a 10-week period in a quarter system.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303630
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter D, §13.62, concerning updates to a manual for community college annual financial reports. Specifically, the Coordinating Board plans to repeal this rule and replace it with a new consolidated community college data reporting rule in coordination with changes made by Tex. H.B. 8, 88th Leg., R.S. (2023). The Coordinating Board also intends to adopt new rules pertaining to community college financial reporting.
Rule 13.62 concerns annual updates to the community college annual financial report manual and its content. Concurrent with other changes made to the Texas Administrative Code related to H.B. 8, 88th Leg., R.S. (2023), the provisions of this rule are being merged with others pertaining to financial reporting by community colleges in a different subchapter.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the section is in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rule. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
The public benefit anticipated as the result of adopting this rule is updating the Texas Administrative Code to have topically consistent organization in relation to the adoption of Tex. H.B. 8, 88th Leg., R.S. (2023). There are no anticipated economic costs to persons who are required to comply with the section as proposed.
Government Growth Impact Statement
(1) the rule will not create or eliminate a government program;
(2) implementation of the rule will not require the creation or elimination of employee positions;
(3) implementation of the rule will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rule will not require an increase or decrease in fees paid to the agency;
(5) the rule will not create a new rule;
(6) the rule will not limit an existing rule;
(7) the rule will not change the number of individuals subject to the rule; and
(8) the rule will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed under Texas Education Code, Section 61.065, that provides the Coordinating Board with the authority to prescribe uniform financial reporting guidelines.
The proposed repeal affects Texas Education Code, Section 61.065.
§13.62.Community Colleges.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303633
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter D, §13.63, concerning requirements for community college financial reporting. Specifically, the Coordinating Board plans to amend this rule and move community college-related provisions to a new consolidated community college data reporting rule in coordination with changes made by Tex. H.B. 8, 88th Leg., R.S. (2023). The Coordinating Board also intends to adopt new rules pertaining to community college financial reporting.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the section is in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
The public benefit anticipated as the result of adopting this rule is updating the Texas Administrative Code to have topically consistent organization in relation to the adoption of Tex. H.B. 8, 88th Leg., R.S. (2023). There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.065, which provides the Coordinating Board with the authority to prescribe uniform financial reporting guidelines.
The proposed amendment affects Texas Education Code, §61.065.
§13.63.Additional Financial Information Reporting.
(a) Each university system, general academic institution, technical or state college, and health-related institution shall provide to the Board financial data related to the operation of each system office and institution. This information should be reported in the Board's annual report of financial activity by fund group.
[(b) Each community college shall
continue to provide to the Board financial data related to the operation
of each community/junior college reflecting restricted and non-restricted
operating revenues and operating expenses as directed by the Board.]
(b) [(c)] Each system office
and institution of higher education, except public junior colleges, shall
provide the report no later than January 1 of each year using the
specific content and format prescribed by the Board.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303631
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
19 TAC §§13.101, 13.102, 13.104
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter F, §§13.101, 13.102, and 13.104 in relation to House Bill (H.B.) 8, 88th Leg., R.S. (2023), concerning limitations on the reporting of hours to the Coordinating Board for funding purposes.
The revisions implement statutory amendments passed by the 88th Legislature. Specifically, this amendment will update Coordinating Board rules to accurately reflect two changes made by H.B. 8. House Bill 8 amended Texas Education Code §61.0595 to establish that hours earned by a student before receiving an associate degree do not count toward the limitation on the hours that may be reported for funding based on a student's current degree program (the "excess hours" rule). The amendment would also update reference to the authority for the limitation on reporting hours related to a course taken by a student for the third time (the "three-peat" rule) to statute instead of a rider provision in the General Appropriations Act.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect:
There would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
The public benefit anticipated as the result of adopting this rule is updating Texas Administrative Code to accurately reflect statute following the adoption of Tex. H.B. 8, 88th Leg., R.S. (2023). There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Chris Fernandez, Senior Director for Community College Finance, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Sections 130A.005, 54.014, 61.059(r), and 61.0595 that provide the Coordinating Board with the authority to adopt rules pertaining to the reporting of hours for the purpose of formula funding.
The proposed amendment affects Texas Education Code, Section 54.014 and 61.059(r).
§13.101.Authority.
Texas Education Code, §54.014, provides that each institution
may charge a higher rate of tuition to students with repeated or excess
hours. Texas Education Code, §61.0595, limits formula funding
for excess hours. Texas Education Code, §61.059(r), establishes
that contact hours or semester credit hours related to a course that
a student is taking for the third time may not be reported for the
purpose of formula funding. [The General Appropriations
Act, SB 1, Article III, §40, 85th Legislature, Regular Session,
limits formula funding for a course for which a student would generate
formula funding for the third time.] Texas Education Code, §61.059(b),
grants the Coordinating Board the authority to devise, establish,
and periodically review and revise formula recommendations for institutions
of higher education. Texas Education Code, §130A, establishes
the Public Junior College State Finance Program. Texas Education
Code, §51.340, limits the number of remedial or developmental
education semester credit hours for which formula funding may be received.
§13.102.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Degree Plan--Academic program of courses and their related hours culminating in a degree or certificate, including minors, double majors, and completion of any other special program in which the student is also enrolled, such as a program with a study abroad component.
(2) Excess Hours--Hours attempted by a student that are in excess of the limits and therefore ineligible for formula funding as described in §13.103 of this title (relating to Limitation on Formula Funding for Excess Hours).
(3) Hours--Semester credit hours.
(4) International Study Abroad Student--A student who is a citizen or permanent resident of a nation other than the United States who resides in the nation of which he or she is a citizen or permanent resident and who is in the United States and enrolled at a Texas public institution of higher education for a limited time as part of an exchange program or other study abroad program and who is not seeking a certificate or degree from a Texas Public institution of higher education.
(5) Non-Course-Based Developmental Education Interventions (also known as Non-Semester-Length Interventions and also referred to as interventions)--Interventions that use learning approaches designed to address a student's identified weaknesses and effectively and efficiently prepare the student for college-level work. These interventions must be overseen by an instructor of record, must not fit traditional course frameworks, and cannot include advising or learning support activities already connected to a traditional course; interventions may include, but are not limited to, tutoring, supplemental instruction, or labs.
(6) Remedial and Developmental Courses--Courses designed to correct academic deficiencies and bring students' skills to an appropriate level for entry into college. The term includes English for speakers of other languages (ESOL) courses in which a student is placed as a result of failing the reading or writing portion of a test required by §4.56 of this title (relating to Assessment Instruments).
(7) Repeated Hours for Attempted Course--Hours for a course that is the same or substantially similar to a course that the student previously attempted for two or more times at the same institution. Previously attempted courses from which the student withdraws before the official census date shall not count as an attempted course.
(8) Repeated Hours for Completed Course--Hours for a course in which a student enrolls for two or more times that is the same as or substantially similar to a course that the student previously completed and received a grade of A, B, C, D, F, or Pass/Fail at the same institution.
(9) Student--For the purposes of this subchapter students
are defined as undergraduate students [who have not yet received
a baccalaureate degree or equivalent].
(10) Workforce Education Courses--Courses offered by two-year institutions for the primary purpose of preparing students to enter the workforce that are included in the Workforce Education Course Manual (WECM) or a college's technical local need course inventory. The term includes both technical courses and continuing education courses.
§13.104.Exemptions for Excess Hours.
The following types of hours are exempt and are not subject to the limitation on formula funding set out in §13.103 of this title (relating to Limitation on Formula Funding for Excess Hours):
(1) hours earned by an undergraduate [the]
student before the award of a prior associate or bachelor's degree [before receiving a baccalaureate degree that has been previously awarded
to the student];
(2) hours earned through examination or similar method without registering for a course;
(3) hours from remedial and developmental courses and/or interventions, workforce education courses, or other courses that would not generate credit that could be applied to an academic degree at the institution if the course work is within limitations specified in §13.107 of this title (relating to Limitation on Formula Funding for Remedial and Developmental Courses and Interventions);
(4) hours earned by the student at a private institution or an out-of-state institution;
(5) hours not eligible for formula funding;
(6) semester credit hours earned by the student before graduating from high school and used to satisfy high school graduation requirements;
(7) hours abandoned through enrollment under the Academic Fresh Start Program under Tex. Educ. Code Section 51.931; and
(8) 15 semester credit hours not otherwise exempt earned toward a degree program by a student who:
(A) has reenrolled at the institution following a break in enrollment from the institution or another institution of higher education covering at least the 24-month period preceding the first class day of the initial semester or other academic term of the student's reenrollment; and
(B) successfully completed at least 50 semester credit hours of course work at an institution of higher education that are not exempt in paragraphs (1) - (7) of this section before that break in enrollment.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303634
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter G, §§13.120 - 13.127, concerning Restricted Research Expenditures. Specifically, the Coordinating Board plans to repeal this subchapter in accordance with changes made by Tex. H.B. 1595, 88th Leg., R.S. (2023). This repeal presumes passage of House Joint Resolution 3, 88th Leg., R.S. (2023), the vote for which would take place November 7, 2023. If the constitutional amendment is approved, the provisions of H.B. 1595 go into effect on January 1, 2024.
Rules 13.120 - 13.122 establish the purpose, authority and definitions related to restricted research. Rules 13.123 - 13.124 establish a restricted research committee to review restricted research awards and the applicable standards and accounting methods for restricted research. Rules 13.125 - 13.126 establish reporting requirements of the institutions and Coordinating Board related to restricted research awards and expenditures. Rule 13.127 provides for audits of research records reported by institutions.
Statute previously provided for the use of restricted research expenditures in the allocation of funding under the Comprehensive Research Fund and Core Research Support Fund and as an eligibility criteria for the National Research University Fund. Due to its use in state funding allocations, statute charged the Coordinating Board with setting standards and accounting methods for determining restricted research expenditures, providing for a committee process to verify reported awards, and auditing research records.
As part of the changes presumed to be enacted under H.B. 1595, statute no longer includes restricted research expenditures as part of any state funding allocations. H.B. 1595 provides for the distribution of the Comprehensive Research Fund based on an institution's federal and private research expenditures. The bill also provides for the redesignation of the Core Research Support Fund as the National Research Support Fund and provides for funding distributions based on an institution's federal and private research expenditures and awards of research doctorates.
Additionally, H.B. 1595 eliminates the National Research University Fund and recreates it as the Texas University Fund (TUF). The TUF provides for new eligibility criteria and uses federal and private research expenditures, rather than restricted research expenditures, as part of its eligibility criteria and allocation methodology.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as the result of adopting this rule is the elimination of the reporting of restricted research expenditures, in accordance with the provisions of Tex. H.B. 1595, 88th Leg., R.S. (2023), which removes the collection and use of restricted research expenditures in state funding allocations. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed in accordance with changes made by Tex. H.B. 1595, 88th Leg., R.S. (2023), which eliminated the basis for restricted research standards and accounting and its subsequent use in the allocation of the Comprehensive Research Fund, Core Research Support Fund, and as an eligibility criteria for the National Research University Fund (which was eliminated and recreated as the Texas University Fund).
The proposed repeal affects Texas Education Code, Sections 62.095, 62.096, 62.134, 62.135(b), 62.145, and 62.146.
§13.120.Purpose and Scope.
§13.121.Authority.
§13.122.Definitions.
§13.123.Restricted Research Committee.
§13.124.Standards and Accounting Methods for Determining Restricted Research Expenditures.
§13.125.Report on Restricted Research Awards.
§13.126.Reporting of Restricted Research Expenditures.
§13.127.Audits.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303645
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter P, §§13.470 - 13.477, concerning the new community college finance system established by H.B. 8. Specifically, this new section will implement the new community college finance system established by Tex. H.B. 8, 88th Leg., R.S. (2023).
Rule 13.470, Purpose, establishes the purpose of subchapter P to govern the implementation of the community college finance system.
Rule 13.471, Authority, establishes the portions of Texas Education Code (TEC) that authorize the Coordinating Board to adopt rules pertaining to community college finance.
Rule 13.472, Definitions, lists definitions pertinent to the community college finance system.
Paragraphs (1), (2), and (13) define student weights as required by Sections 130A.054 and 130A.101 of H.B. 8 for use in the calculation of the base and performance tier. Economic disadvantage is based on the student's receipt of federal Pell grant funding due to that program's need-based design, which includes rigorous documentation of student needs and family resources, and academic disadvantage is based on the student's determination of college readiness, as measured through the Texas Success Initiative assessments. Adult learners are defined as students aged 25 years or older, in accordance with H.B. 8 requirements.
Paragraphs (7) - (9), (15), (21), and (26) provide definitions for terms (base year, basic allotment, census date, full-time student equivalent (FTSE), local share, weighted FTSE used in the calculation of the base tier, defined in paragraph (6), which measures a college's instruction and operations (I&O) needs based on their weighted FTSEs and the number of contact hours they delivered in the most recent academic terms (the "base year").
Paragraph (27) defines weighted outcome completions as the count of designated student outcomes that have been weighted by student characteristics. This provides the basis for the allocation of funding under the performance tier, which is further refined by the below definition paragraphs.
Paragraphs (3) - (5), (11), (18) - (20), and (23) provide definitions of credential types, or associated requirements, that may be eligible for purposes of performance tier funding. The definitions tie to paragraph (16), fundable credentials, which further refines what credential types, including associate, baccalaureate degrees, certain certificates, Occupational Skills Awards (OSAs), and Institutional Credential Leading to Licensure or Certification (ICLC) may receive funding. In alignment with H.B. 8, all fundable credentials will meet the definition of credential of value. The determination of "credential of value" for ICLCs is refined to provide semester credit hour (SCH) thresholds for the credential as these are new credential types collected from the community colleges and providing thresholds ensures the Coordinating Board is prioritizing credentials that are producing graduates who meet the state's workforce needs. The determination of "credential of value" for OSAs is aligned to the definition of OSA, which includes requirements that the credential meet workforce needs.
Paragraph (10) defines a credential of value as credentials that will provide a positive return-on-investment within 10 years (on average), such that cumulative earnings exceed initial investment, for baccalaureate, associate, and certificate degree programs. This definition is aligned with and implements the Coordinating Board's long range master plan for higher education by using data to determine whether a student is better off after earning the credential, inclusive of their costs of attendance, than a comparable student who earned only a high school diploma. The purpose is to incentivize institutions to strongly consider workforce needs and student's long term economic and social success in making decisions regarding program offerings, student services, and other key areas.
Paragraph (17) defines high demand fields in alignment with the recommendations of the last Community and Technical College Formula Advisory Committee. This list derives from an analysis of state and regional workforce trends based on higher education regions in the state. This list includes fields associated with an occupation on 7 of 10 regional lists of the top 25 occupations by projected 10-year growth and the fields associated with every region's top 5 occupations by projected 10-year growth. The list also includes any field previously funded as a "critical field" by the legislature in the fiscal year 2022-23 success point formula to help transition community colleges to the new methodology.
Paragraph (12) defines eligibility for a dual credit or dual enrollment fundable outcome to receive funding through the performance tier. The definition provides that all statutorily fundable SCHs of dual credit or dual enrollment may count towards the achievement of 15 SCHs applicable to an academic or workforce requirement at the postsecondary level. Aligning with statutory funding eligibility requirements increases the likelihood that these courses will result in meaningful progress towards postsecondary credentials while encouraging community colleges to transition to a system in which dual credit/enrollment students take a structured sequence of courses that enhances timely progress towards an academic or workforce credential. The Coordinating Board anticipates that this definition will be further refined as additional data become available in future years.
Paragraphs (24) and (25) define eligibility for a student's achievement of a structured co-enrollment or transfer fundable outcome. These outcomes may receive funding through the performance tier and the definitions align with the requirements in Section 130A.101, as added by H.B. 8.
Paragraphs (14) and (22) define formula and non-formula support, respectively, based on the method of determining the funding provided to the community college.
Rule 13.473, Base Tier Allotment, establishes the calculations used to determine Base Tier funding that the legislature entitled community colleges to receive under TEC, Sections 130A.051 - 130A.056. To summarize, Base Tier funding is calculated as Instruction and Operations (I&O) minus Local Share. If Local Share is greater than Instruction and Operations, then Base Tier funding is zero.
Specifically, Rule 13.473(b) establishes the Instruction and Operations funding amount, corresponding to TEC, Section 130A.052, as Contact Hour Funding plus the product of the Weighted Full Time Student Equivalents (Weighted FTSE) multiplied by Basic Allotment. The rule explicitly defines the calculations used to derive Full Time Student Equivalents based on contact hour and SCHs reported to the Coordinating Board by community college districts. Hours reported are weighted by student characteristics as instructed by TEC, Section 130A.054, at levels based on the higher cost of educating students with certain characteristics (e.g., adult learners are weighted the highest due to the higher cost of educating the student). In accordance with TEC, Section 130A.055, the rule defines Contact Hour Funding as the Institution's reported base year contact hours, weighted by the average cost to provide each contact hour in each discipline as defined in the Report of Fundable Operating Expenses. The Basic Allotment amount and contact hour funding amount are derived based on the Fiscal Year 2024 appropriations for the Base Tier as provided by the General Appropriations Act for the 2024-25 Biennium, in accordance with TEC, Sections 130A.053 and 130A.055.
Rule 13.473(c) establishes Local Share as the amount of maintenance and operations ad valorem tax revenue generated by $0.05 per $100 of taxable property value in a college's taxing district plus the amount of tuition and fee revenue that would be generated by charging the average amount of tuition and fees charged by community colleges districts in the state of Texas to each in-district FTSE, in accordance with TEC, Section 130A.056. Specifically, the Coordinating Board will calculate estimated tax revenue for each district as the actual amount of current tax revenue collected in Fiscal Year 2022 multiplied by the ratio of the maintenance and operations tax rate to the total tax rate, divided by the product of the maintenance and operations tax rate and 100 and multiplied by five. This estimation takes into account that not all property taxes owed are able to be collected by the institutions due to delinquent or late collections over which the institutions have no control. The Coordinating Board will estimate tuition and fee revenue by summing 1) the average of tuition and fees charged by community colleges to in-district students in fiscal year 2021, as reported by the federal Integrated Postsecondary Education Data System, multiplied by non-dual credit or dual enrollment FTSEs In FY22 and 2) the amount of tuition set per SCH for the Financial Aid for Swift Transfer (FAST) program, multiplied by dual credit or dual enrollment SCHs in FY22. Using the average tuition and fee rate specific to in-district students avoids unduly penalizing colleges that have above-average percentages of in-district students and/or that provide substantial discounts to their in-district students, Using the two different tuition rates, depending on the type of student, provides further equity in the method of estimating tuition and fee revenue across the community college districts by avoiding an undue penalty on colleges participating in the FAST program and those with higher percentages of dual credit or dual enrollment students, regardless of their participation in FAST.
Rule 13.474, Performance Tier Funding, establishes the calculations used to determine Performance Tier Funding, which the Legislature entitled community colleges to receive under TEC, Section 130A.101. The rule lists those outcomes that merit performance funding and the student characteristics that garner added funding at levels in alignment with those set for the base tier funding pursuant to TEC, Section 130A.001.
The rule establishes values for the fundable outcomes, which are derived based on appropriations made in the 2024-25 General Appropriations Act for the Performance Tier strategy.
Funding is set $3,500 per outcome for transfer and structured co-enrollment fundable outcomes, certificates awarded in a high-demand field, and associate or baccalaureate degrees not in a high-demand field. The equal funding rate across these outcomes reflects the great benefit they confer to students and to the state as well as the importance of institutions' ability to impartially guide and assist students in pursuing different forms of valuable success.
Completion of dual credit or dual enrollment fundable outcomes are set at a lower amount, $1,700, due to the additional funding institutions will receive via participation in the FAST program; the fact that these outcomes do not involve conferral of a credential or enrollment in a baccalaureate program; and the tendency of these courses to be lower-division academic courses with below-average cost of delivery.
Across all credentials, high-demand fields receive higher funding rates to incentivize institutions to develop and grow programs in areas more closely aligned with the current and future workforce needs of the state.
Rule 13.475, Formula Transition Funding, establishes that after calculating the base tier and performance tier funding for each community college, the Coordinating Board shall ensure that a community college district does not receive less in formula funding in FY 2024 than it received in FY 2023 appropriations for formula funding (contact hours, success points, core operations, and bachelor's of applied technology funding) and need based supplements. The Coordinating Board judges this provision to be necessary to smooth the transition from the prior system of formula funding predominantly based on contact hour generation to the new system of performance-based funding. Including this provision ensures that no institution will experience as significant detrimental impact on its operations as the new system adjusts funding and moves to outcome-driven performance.
Rule 13.476, Payment Schedule, sets out both the payment schedule for non-formula support items and the payment schedule (three times per year) at which the Coordinating Board will make formula funding payments to each institution as authorized by TEC, Section 130.0031, as amended by Tex. H.B. 8, 88th Leg., R.S. (2023). The Coordinating Board shall pay all non-formula support item amounts to the institution by September 25th of a fiscal year, in accordance with the requirements in the 2024-25 General Appropriations Act (Article IX, Section 18.04 Contingency for House Bill 8(a)(4)). For FY24, the first payment is 50% of the total formula funding entitlement, 25% for the second payment and the final payment. Institutional stakeholders suggested that the Coordinating Board should make the first payment 50% in recognition that a college district's expenses are weighted towards the start of the fiscal year and to smooth the transition from the prior payment schedule that historically provided 48% of funding to a community college district by October 25.
Rule 13.477, Close Out, establishes the final process the Coordinating Board shall undertake to finalize the prior fiscal year's formula funding for community colleges. The Coordinating Board shall review and verify distributions made to the community colleges in the prior fiscal year and, if necessary, adjust a community colleges first payment of the next fiscal year to correct funding, as needed, in accordance with TEC, Section 130A.009. TEC, Section 130.0031, authorizes the Coordinating Board to make adjustments to the installment payments within the fiscal year to ensure the Coordinating Board delivers the correct funding to each institution. The Close Out process caps the final adjustment to payments that occur based on the outcomes, certified reported data, and funding made to each institution to the fiscal year. Subsequent to Close Out, the Coordinating Board will use the adjustment and overallocation process under Texas Administrative Code, subchapter R, of this chapter to make any further adjustments to funding that was owed for a Closed Out fiscal year. Specification of this process by rule ensures that each institution has notice of the Coordinating Board's determination that funding has been fully delivered for that year.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there may be fiscal implications for state or local governments as a result of enforcing or administering the rules, as required to implement the new public junior college finance system established by H.B. 8. Such ancillary fiscal implications may include the need to collect and report additional data in order to obtain additional outcome-based funding.
Fiscal implications of increased funding to institutions of higher education are funded as part of the new public junior college finance system in statute and the General Appropriations Act. The rules do not impose additional costs of compliance beyond those provided for in statute. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the implementation of H.B. 8, which establishes a modern and dynamic finance system that ensures each public junior college has access to adequate state appropriations and local resources to support the education and training of the workforce. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will create or a government program, as required by House Bill 8;
(2) implementation of the rules will require the creation or elimination of employee positions, as required by House Bill 8;
(3) implementation of the rules may require an increase or decrease in future legislative appropriations to the agency, as provided in House Bill 8;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The new sections are proposed under Texas Education Code, Section 130A.005, which provides the Coordinating Board with the authority to adopt rules and take other actions consistent with Texas Education Code, Chapter 61, Chapter 130, and Chapter 130A to implement Tex. H.B. 8, 88th Leg., R.S. (2023). In addition, Texas Education Code, Section 130.355, permits the Coordinating Board to establish rules for funding workforce continuing education.
The proposed new sections affect Texas Education Code, Sections 28.0295, 61.003, 61.059, 130.003, 130.0031, 130.0034, 130.008, 130.085, 130.310, 130.352 and Chapter 130A.
§13.470.Purpose.
The purpose of this subchapter is to implement the Community College Finance Program authorized by Texas Education Code, Chapters 61, 130, and 130A.
§13.471.Authority.
The Coordinating Board adopts this subchapter pursuant to Texas Education Code, §130A.005, requiring the Coordinating Board to adopt rules to implement the Community College Finance Program created in Texas Education Code, Chapters 61, 130, and 130A.
§13.472.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings:
(1) Academically Disadvantaged--A designation that applies to postsecondary students who have not met the college-readiness standard in one or more Texas Success Initiative (TSI) assessments as provided by chapter 4, subchapter C, §4.57 of this title (relating to College Ready Standards), and who were not classified as either waived or exempt pursuant to chapter 4, subchapter C, §4.54 of this title (relating to Exemptions, Exceptions, and Waivers).
(2) Adult Learner--A student aged 25 or older on September 1 of the fiscal year for which the applicable data are reported, in accordance with Coordinating Board data reporting requirements.
(3) Advanced Technical Certificate (ATC)--A certificate that has a specific associate or baccalaureate degree or junior level standing in a baccalaureate degree program as a prerequisite for admission. An ATC consists of at least 16 semester credit hours (SCH) and no more than 45 SCH and must be focused, clearly related to the prerequisite degree, and justifiable to meet industry or external agency requirements.
(4) Associate Degree--An academic associate degree as defined under Texas Education Code, §61.003(11), or an applied associate degree as defined under Texas Education Code, §61.003(12)(B).
(5) Baccalaureate Degree--A degree program that includes any grouping of subject matter courses consisting of at least 120 SCH which, when satisfactorily completed by a student, will entitle that student to an undergraduate degree from a public junior college.
(6) Base Tier Funding--The amount of state and local funding determined by the Board for each public junior college that ensures the college has access to a defined level of funding for instruction and operations.
(7) Base Year--The time period comprising the year of contact hours used for calculating the contact hour funding to public junior colleges. A base year includes certified contact hours reported in the Summer 1, Summer 2, and Fall of the prior calendar year and Spring of the current calendar year relative to September 1st of the current fiscal year.
(8) Basic Allotment--A dollar value per Weighted FTSE, as determined by the Legislature based on appropriations made in that biennium's General Appropriations Act.
(9) Census Date--The date upon which a college may report a student in attendance for the purposes of formula funding, as specified in the Coordinating Board Management (CBM) manual for the year in which the funding is reported.
(10) Credential of Value--A credential earned by a student that would be expected to provide a positive return on investment. A positive return on investment is met when a typical student completing the credential is expected to earn cumulative wages greater than the cumulative median earnings of an average Texas high school graduate, plus recouping the net cost of attendance within ten years after earning the credential. This calculation shall include the student's opportunity cost, calculated as the difference between median earnings for a typical Texas high school graduate and typical earnings for students while enrolled for four years for baccalaureate degree holders, two years for associate degree holders, and one year for holders of a Level 1 certificate, Level 2 certificate, or Advanced Technical Certificate. The Coordinating Board shall calculate the expected return on investment based on the data available to the agency for the funding year. The calculation shall include the most current available data for each program or a comparable program.
(11) Credentialing examination--A licensure, certification, or registration exam provided by a state or national agency or by professional organization.
(12) Dual Credit or Dual Enrollment Fundable Outcome--A student who has earned at least 15 SCH or the equivalent of state-funded dual credit or dual enrollment courses that apply toward an academic or workforce program requirement at the postsecondary level. For the purpose of this subchapter, the term "dual credit or dual enrollment fundable outcome" includes the following fundable courses taken for college credit by a high school student who has not yet received a high school diploma:
(A) Any course taken for dual credit that is within the core curriculum of the college that is providing the course;
(B) A course in a Coordinating Board-established field of study curriculum under Texas Education Code, §61.823, or program of study curriculum under Texas Education Code, §61.8235;
(C) Career and technical education courses that apply to a certificate or associate degree offered by the institution providing the credit;
(D) Foreign language courses;
(E) All courses taken by students enrolled in an approved Early College High School program, with the exception of the physical education courses taken by high school students for high school physical education credit; and
(F) A course taken for college credit only by a student who is also enrolled in high school but does not yet have a high school diploma.
(13) Economically Disadvantaged--A designation that applies to postsecondary students who received the federal Pell Grant under 20 U.S.C. §1070a.
(14) Formula Funding--The funding allocated by the Coordinating Board among all public junior colleges by applying provisions of the Texas Education Code, agency rule, and the General Appropriations Act to a sector-wide appropriation from the General Appropriations Act.
(15) Full-Time Student Equivalent (FTSE)--A synthetic measure of enrollment based on the number of instructional hours delivered by an institution of higher education divided by the number of hours associated with full-time enrollment for the time period in question.
(16) Fundable Credential--A Fundable Credential counts toward Weighted Outcome Completions as defined in paragraph (27) of this section. For the purpose of funding delivered in fiscal year 2024, a fundable credential is defined as any of the following, except that, for credentials under subparagraph (B) or (C) of this paragraph, if more than one credential that the institution awarded to a student includes the same contact hours, the institution may only submit one credential for funding under subparagraph (B) or (C) of this paragraph.
(A) Any of the following credentials awarded by an institution that meets the criteria of a credential of value as defined in paragraph (10) of this section using the methodology established for the most current fiscal year, that is otherwise eligible for funding, and the institution reported and certified to the Coordinating Board:
(i) An associate degree;
(ii) A baccalaureate degree;
(iii) A Level 1 or Level 2 Certificate; and
(iv) An Advanced Technical Certificate.
(B) An Occupational Skills Award awarded by an institution that the institution reported and certified to the Board during fiscal year 2023; or
(C) An Institutional Credential Leading to Licensure or Certification (ICLC) not included in subparagraph (B) of this paragraph and that the institution reported and certified to the Coordinating Board during fiscal year 2023, that meets one of the following criteria:
(i) The credential includes no fewer than 144 contact hours or nine (9) semester credit hours; or
(ii) The credential is awarded in a high demand field, as defined in Board rule, and includes no fewer than 80 contact hours or five (5) semester credit hours; or
(iii) A licensure or certification earned by a student who did not receive a credential if the student:
(I) earned the licensure or certification as the result of the student's successful passage of a credentialing examination for a licensure or certification, while or after being enrolled in one of the institution's Institutional Credentials Leading to Licensure or Certification (ICLC) programs that would qualify for funding under clauses (i) or (ii) of this subparagraph; and
(II) earned the licensure or certification not later than twelve months after the student's enrollment in the ICLC program for which the student earned the licensure or certification.
(17) High-Demand Fields--An academic discipline, delineated by the federal Classification of Instructional Program (CIP) code, that the Coordinating Board has approved for inclusion on a published list of High-Demand Fields, available at https://www.highered.texas.gov/our-work/supporting-our-institutions/community-college-finance/high-demand-fields/, based on their satisfaction of either:
(A) Inclusion on the list of Critical Fields employed for the purpose of determining formula funding allocations under the Student Success strategy in the 2022-2023 General Appropriations Act; or
(B) Appearing on the list of CIP codes resulting from the following methodology completed in Fall 2021:
(i) Extracting the top 25 occupations for each higher education region as ranked by their ten-year projected number of new openings, after having excluded those with an average wage less than the statewide median wage and those with a typical entry credential other than "Some college, no degree", "Postsecondary non-degree award", and "Associate degree", from the texaslmi.com website maintained by the Texas Workforce Commission;
(ii) Placing occupations appearing on at least seven of the ten resulting regional lists on a statewide list;
(iii) Adding to the statewide list any occupations appearing among the top five of one or more regional list but not yet on the statewide list; and
(iv) Generating a list of CIP codes populated by each four-digit CIP code associated with an occupation on the statewide list per the crosswalk promulgated by the National Center for Education Statistics of the U.S. Department of Education, which as of the effective date of this rule is available at the following address: https://nces.ed.gov/ipeds/cipcode/post3.aspx?y=56.
(18) Institutional Credentials Leading to Licensure or Certification (ICLC)--A credential awarded by an institution upon a student's completion of a course or series of courses that represent the achievement of identifiable skill proficiency and leading to licensure or certification. This definition includes a credential that meets the definition of an Occupational Skills Award in all respects except that the program did not obtain the required Workforce Development Board approval.
(19) Level 1 Certificate--A certificate designed to provide the necessary academic skills and the workforce skills, knowledge, and abilities necessary to attain entry-level employment or progression toward a Level 2 Certificate or an Applied Associate Degree, with at least 50% of course credits drawn from a single technical specialty. A Level 1 Certificate must be designed for a student to complete in one calendar year or less time and consists of at least 15 semester credit hours and no more than 42 semester credit hours.
(20) Level 2 Certificate--A certificate consisting of at least 30 semester credit hours and no more than 51 semester credit hours. Students enrolled in Level 2 Certificates must demonstrate meeting college readiness standards set forth in chapter 4, subchapter C, §4.57 of this title and other eligibility requirements determined by the institution.
(21) Local Share--The amount determined to be the institution's contribution of local funds to the Instruction and Operations (I&O) amount for each public junior college. The amount consists of estimated ad valorem maintenance and operations tax revenue and tuition and fees revenue, as determined by the Board.
(22) Non-Formula Support Item--An amount appropriated by line item in the General Appropriations Act to a single public junior college or limited group of colleges for a specific, named purpose.
(23) Occupational Skills Award--A sequence of courses that meet the minimum standard for program length specified by the Texas Workforce Commission for the federal Workforce Innovation and Opportunity Act (WIOA) program (9-14 SCH for credit courses or 144-359 contact hours for workforce continuing education courses). An OSA must possess the following characteristics:
(A) The credential is TSI-waived under chapter 4, subchapter C, §4.54 of this title;
(B) The content of the credential must be recommended by an external workforce advisory committee, or the occupation must appear on the Local Workforce Development Board's Demand Occupations list;
(C) In most cases, the credential should be composed of Workforce Education Course Manual (WECM) courses only. However, non-stratified academic courses may be used occasionally if recommended by the external committee and if appropriate for the content of the credential;
(D) The credential complies with the Single Course Delivery guidelines for WECM courses; and
(E) The credential prepares students for employment in accordance with guidelines established for WIOA.
(24) Structured Co-Enrollment Fundable Outcome--A student who earns at least 15 semester credit hours at the junior college district in a Coordinating Board-recognized program structured through a binding written agreement between a general academic teaching institution and a community college. Under such a program, students will be admitted to both institutions and recognized as having matriculated to both institutions concurrently.
(25) Transfer Fundable Outcome--A student who enrolls in a general academic teaching institution, as defined in Texas Education Code, §61.003, after earning at least 15 semester credit hours from a single public junior college district during the period including the fiscal year in which they enroll at the general academic teaching institution and the four fiscal years prior.
(26) Weighted Full-Time Student Equivalent (Weighted FTSE or WFTSE)--A synthetic measure of enrollment equal to the number of instructional hours delivered by an institution of higher education divided by the number of hours associated with full-time enrollment for the time period in question, where the hours delivered to students with certain characteristics carry a value other than one.
(27) Weighted Outcomes Completion--A synthetic count of completions of designated student success outcomes where outcomes achieved by students with certain characteristics carry a value other than one. The synthetic count may also represent a calculation, such as an average or maximizing function, other than a simple sum.
§13.473.Base Tier Allotment.
(a) Board staff will calculate Base Tier funding for each public junior college district (district) as the greater of the Instruction and Operations (I&O) amount minus Local Share and zero.
(b) A district's I&O amount is the sum of the number of Weighted Full-Time Student Equivalents (Weighted FTSE) enrolled at the district multiplied by the Basic Allotment amount of $1,275 and the district's total Contact Hour Funding as determined by the Coordinating Board.
(1) Weighted FTSE for each district is the sum of the district's full-time student equivalents weighted for the student characteristics under subparagraph (B) of this paragraph and the scale adjustment as provided in Texas Education Code, §130A.054.
(A) For purposes of determining annual Weighted FTSE as a component of Fiscal Year (FY) 2024 formula funding under this section, a district's full-time student equivalents (FTSE) is equal to the sum of:
(i) the total semester credit hours in which for-credit students were enrolled at the district as of the census dates of all academic semesters or other academic terms that were reported for FY 2022, divided by 30; and
(ii) the total contact hours in which continuing education students were enrolled at the district as of the census dates of all academic semesters or other academic terms that were reported for FY 2022, divided by 900.
(B) The Coordinating Board shall additively weight the calculation of Weighted FTSE as follows:
(i) if a student is classified as economically disadvantaged during FY 2022, FTSE generated by that student shall have an additional value of 25%;
(ii) if a student is classified as academically disadvantaged during FY 2022, FTSE generated by that student shall have an additional value of 25%; and
(iii) if a student is classified as an adult learner during FY 2022, FTSE generated by that student shall have an additional value of 50%.
(C) The Coordinating Board calculates a district's scale adjustment weight as the greater of the difference between 5,000 and the number of FTSE as defined in subparagraph (A) of this paragraph multiplied by .40, and zero.
(2) For the purpose of calculating FY 2024 formula funding amounts, Coordinating Board staff will calculate Contact Hour Funding for a public junior college district by first multiplying the number of reported certified fundable contact hours generated by the district in each discipline during the 2023 Base Year, consisting of the Summer I and II 2022, Fall 2022, and Spring 2023 academic terms, by the average cost of delivery per contact hour for each discipline respectively as described in the Report of Fundable Operating Expenses for FY 2022 in accordance with subchapter R, §13.524(c) of this chapter (relating to Required Reporting) and summing across all disciplines. Contact hours attributable to students enrolled in a junior-level or senior-level course are weighed in the same manner as a lower division course in a corresponding field. That sum will then be multiplied by 21.3%, which is a rate derived from appropriations made for Base Tier Funding in the 2024-2025 General Appropriations Act, to calculate the district's Contact Hour Funding.
(c) For the purpose of calculating FY 2024 formula funding amounts, the Local Share for each public junior college district equals the sum of:
(1) the estimated amount of revenue that would have been generated by the district if it had assessed a $0.05 maintenance and operations ad valorem tax on each $100 of taxable property value in its taxing district, as reported under subchapter R, §13.524 of this chapter, which the Coordinating Board will calculate as the district's current tax collection for FY 2022 multiplied by the ratio of the maintenance and operations tax rate to the total tax rate, divided by the product of the maintenance and operations tax rate and 100 and multiplied by five; and
(2) the amount of tuition and fee revenue calculated as the sum of:
(A) the district's FY 2022 FTSE as defined in subsection (b)(1)(A) of this section, except for semester credit hours derived from students enrolled in dual credit or dual enrollment courses, multiplied by $2,828, which is the FY 2021 statewide average of tuition and fees assessed to full-time students residing within the district of the public junior college they attend; and
(B) the total semester credit hours of dual credit or dual enrollment courses in which students were enrolled as of the census dates of all academic semesters or other academic terms that were reported in FY 2022, multiplied by $55, which is the dollar amount per dual credit semester credit hour determined by the Coordinating Board pursuant to Texas Education Code, §28.0095.
§13.474.Performance Tier Funding.
(a) Each public junior college district shall receive Performance Tier funding under Texas Education Code, Chapter 130A, Subchapter C. The Coordinating Board shall calculate a district's Performance Tier funding as the sum of Weighted Outcome Completions multiplied by the respective funded values of the outcomes.
(b) For the purposes of calculating formula funding amounts for Fiscal Year (FY) 2024, the Coordinating Board shall fund the Weighted Outcome Completions described below as follows:
Figure: 19 TAC §13.474(b) (.pdf)
(c) For the purposes of calculating formula funding amounts for FY 2024, the Coordinating Board shall additively weight the calculation of outcomes in §13.473(b)(2), (3)(D), (E), and (F) of this subchapter (relating to Base Tier Allotment), as follows to calculate Weighted Outcome Completions.
(1) When an outcome is achieved by a student classified as economically disadvantaged, that outcome shall have an additional value of 25%.
(A) For purposes of calculating economically disadvantaged for transfer and credential fundable outcomes, the student must be classified as economically disadvantaged at any point during the fiscal year in which the outcome was achieved or the four fiscal years prior at the institution in which the outcome was achieved.
(B) For purposes of calculating economically disadvantaged for Structured Co-Enrollment Fundable Outcome, the student must be classified as economically disadvantaged in the initial semester of enrollment in the Structured Co-Enrollment Program at either the community college or general academic institution.
(2) When an outcome is achieved by a student classified as academically disadvantaged, that outcome shall have an additional value of 25%.
(A) For purposes of calculating academically disadvantaged for transfer and credential fundable outcomes, the student must be classified as academically disadvantaged at any point during the fiscal year in which the outcome was achieved or the four fiscal years prior at the institution in which the outcome was achieved.
(B) For purposes of calculating academically disadvantaged for Structured Co-Enrollment Fundable Outcome, the student must be classified as academically disadvantaged in the initial semester of enrollment in the Structured Co-Enrollment Program at the institution in which the outcome was achieved.
(3) When an outcome is achieved by a student classified as an Adult Learner, that outcome shall have an additional value of 50%.
(A) For purposes of calculating an Adult Learner for a transfer fundable outcome, the student must be classified as an Adult Learner in the year of last enrollment at the community college district prior to the transfer to a general academic institution.
(B) For purposes of calculating an Adult Learner for a fundable credential, the student must be classified as an Adult Learner in the fiscal year in which the fundable credential was awarded.
(C) For purposes of calculating an Adult Learner for Structured Co-Enrollment Fundable Outcome, the student must be classified as an Adult Learner in the initial semester of enrollment in the Structured Co-Enrollment Program at the institution in which the outcome was achieved.
(d) For the purposes of calculating Weighted Outcome Completions for formula funding amounts for FY 2024, the Coordinating Board shall calculate the funded number of Weighted Outcome Completions as the greater of the average of the district's Weighted Outcome Completion counts for FY 2020, FY 2021, and FY 2022 and the district's count for FY 2022.
§13.475.Formula Transition Funding.
In FY 2024, for purposes of transitioning to the new formula model, if the sum of a public junior college district's Base and Performance Tier funding as calculated in §13.473(a) and §13.474(a) of this subchapter (relating to Base Tier Allotment and Performance Tier Funding, respectively) would result in the district receiving less in General Revenue formula funding than the district received through the sum of appropriations made in the core operations strategy, student success strategy, contact hour funding strategy, and, if applicable, the need-based supplement and bachelor of applied technology strategies, as provided for FY 2023 in the 2022-23 General Appropriations Act, then the Coordinating Board will add transitional funding in the amount of the difference to the district's formula funding for FY 2024.
§13.476.Payment Schedule.
(a) Non-Formula Support Items. For the purpose of distributing state appropriations to a public junior college district in Fiscal Year (FY) 2024, the Coordinating Board shall distribute the full amounts of all FY 2024 non-formula support items to the district to which they are appropriated in accordance with the provisions of the General Appropriations Act for 2024-2025 by September 25, 2023. The Coordinating Board shall recover any overallocation or adjust any installment required to comply with state law or chapter 13 of this title (relating to Financial Planning).
(b) Formula Funding Amounts: Fall. For the purpose of distributing state appropriations to a public junior college district in FY 2024, the Coordinating Board shall distribute to each district by October 15, 2023, one-half of the formula funding amount it determines the district may be entitled to receive in FY 2024 pursuant to the provisions of the General Appropriations Act for 2024-2025, Texas Education Code, and all other pertinent statutes and rules.
(c) Formula Funding Amounts: Spring. For the purpose of distributing state appropriations to a public junior college district in FY 2024, the Coordinating Board shall distribute to each district by February 15, 2024, one-quarter of the formula funding amount it determines the district may be entitled to receive in FY 2024 pursuant to the provisions of the General Appropriations Act for 2024-2025, Texas Education Code, and all other pertinent statutes and rules.
(d) Formula Funding Amounts: Summer. For the purpose of distributing state appropriations to a public junior college district in FY 2024, the Coordinating Board shall distribute to each district by June 15, 2024, one-quarter of the formula funding amount it determines the college may be entitled to receive in FY 2024 pursuant to the provisions of the General Appropriations Act for 2024-2025, Texas Education Code, and all other pertinent statutes and rules, and in odd-numbered years shall distribute the formula funding amount likewise determined as soon as is practicable after June 15 in accordance with the appropriations process.
(e) The Coordinating Board may modify any installment under this schedule as necessary to provide an institution with the amounts to which the institution is entitled under Texas Education Code, Chapters 130 and 130A, the General Appropriations Act, or chapter 13 of this title.
§13.477.Close Out.
(a) On October 1 of each year, the Coordinating Board shall close out the prior fiscal year (FY) by reviewing, reconciling, and verifying distributions of formula funding to public junior colleges in the prior fiscal year.
(1) As applicable, the Coordinating Board shall adjust a public junior college's first payment under subsection (b) of this section by an amount necessary to deliver the correct funding owed to the public junior college under Texas Education Code, Chapters 130 and 130A, or this subchapter for the prior fiscal year.
(2) The Coordinating Board will determine the correct funding for a public junior college based on the final certified data reported by the institution that serves as the basis of formula funding for that year, as provided by this chapter.
(3) This close out process may result in additional or reduced funding to the college based on the reported data and funding delivered for the fiscal year that is being closed out.
(b) If the Commissioner of Higher Education in his or her sole discretion determines that an adjustment under subsection (a) of this section will have a substantial negative impact on the operations of the institution or the education of students, the Coordinating Board may correct the institution's funding by recovering payments as an overallocation pursuant to subchapter R, §13.528(d)(1) or (2) of this chapter (relating to Recovery of Overallocated Funds). For the purpose of FY24, the Coordinating Board will not adjust formula funding for a public junior college for a fiscal year subsequent to close out except as set out in this section and subchapter R of this chapter (relating to State Public Junior College Finance Program Reporting, Audit, and Overallocation).
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303637
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter Q, §§13.500 - 13.506, concerning Financial Aid for Swift Transfer (FAST) Program. Specifically, these new sections will outline the authority and purpose, definitions, institutional eligibility requirements, student eligibility requirements, tuition rate, funding formula, and the handling of overallocations, which are necessary to administer the FAST Program.
Rule 13.500 indicates the specific sections of the Texas Education Code (TEC) that provide the Coordinating Board with authority to issue these rules, as well as the purpose of the FAST Program.
Rule 13.501 provides definitions for words and terms within FAST rules. The definitions are proposed to provide clarity for words and terms that are integral to the understanding and administration of the FAST rules. This section is proposed based on TEC, Section 28.0095(j), which directs the Coordinating Board to adopt rules as necessary to implement the FAST Program.
Rule 13.502 outlines the requirements that institutions must fulfill to participate in the FAST Program. The requirements are proposed to: (a) gather in one place both statutory requirements, such as the requirement that an institution must meet the definition of institution of higher education outlined in TEC, Section 61.003, and rule requirements implementing the FAST Program; (b) clarify aspects of the statutory requirements, such as the institution's responsibility to provide dual credit coursework at no cost to eligible students attending high school in Texas school districts or charter schools; and (c) provide rules specific to requirements the Coordinating Board is proposing to ensure effective administration of the FAST Program, such as the requirement that each participating institution enter into an agreement with the Coordinating Board. This section is proposed based on TEC, Section 28.0095(j), which directs the Board to adopt rules as necessary to implement the FAST Program.
Rule 13.503 outlines the eligibility requirements that students must meet to allow an institution to enroll the student in dual credit coursework at no cost to the student under the FAST Program. The requirements are proposed to: (a) gather in one place the statutory requirements for the FAST Program, including the requirements related to a student's enrollment and their prior status as educationally disadvantaged; (b) clarify aspects of the statutory requirements, such as the student needing to be enrolled in and eligible for Foundation School Program funding at a high school in a Texas school district or charter school; (c) provide rules to clarify eligible dual credit enrollment, which requires that participating institutions must have entered into a Dual Credit Agreement with the student's school district; (d) provide rules specific to requirements the Coordinating Board is proposing to ensure effective administration of the FAST Program, such as the requirement that school districts and charter schools will fulfill their reporting requirements for the educationally disadvantaged status through notice to the Texas Education Agency; and (e) request reporting from institutions necessary to identify students as "educationally disadvantaged" from data provided by Texas Education Agency (TEA). This section is proposed based on TEC, Section 28.0095(j), which directs the Coordinating Board to adopt rules as necessary to implement the FAST Program.
Rule 13.504 sets the FAST maximum tuition rate for the 2023-2024 academic year and is based on a review of average dual credit tuition rates, to allow for the FAST Program to begin in the fall 2023 semester. The proposed rule provides how an annual inflationary adjustment to the tuition rate will be calculated, the timeline in which the annual rate will be determined and announced to institutions of higher education and when the announced rate goes into effect. TEC, Section 28.0095(d), directs the Coordinating Board to prescribe the maximum tuition rate for the FAST Program in rule.
Rule 13.505 establishes the mechanisms by which the Coordinating Board will disburse funding to each participating institution to support their participation in the FAST Program, as well as the institutions' participation in the process. The proposed rule provides the frequency of disbursements to each institution; the way the disbursement amount will be calculated for each institution; the data that will be used to complete the calculation; the way institutions will have the opportunity to review the calculation for accuracy; and the true-up process, which confirms a student's attendance in high school during the dual credit course enrollment and requires reductions to future disbursements of FAST funding once an amount is calculated. This section is proposed based on TEC, Section 28.0095(j), which directs the Coordinating Board to adopt rules as necessary to implement the FAST Program.
Rule 13.506 references the overallocation rules for the FAST Program. The rule acknowledges that the program is one aspect of the larger effort to provide funding to support institutions in their work to successfully educate students and is thus subject to the overallocation rules outlined in Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter R. This section is proposed based on TEC, Section 28.0095(j), which directs the Coordinating Board to adopt rules as necessary to implement the FAST Program.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there may be fiscal implications for state or local governments as a result of enforcing or administering the rules, as required to implement the FAST program. However, participation in the program is voluntary for institutions of higher education. Fiscal implication of the potential for increased funding to institutions of higher education is funded as part of the FAST program in statute and the General Appropriations Act. Additional ancillary costs to institutions that choose to participate are assumed within the fiscal note for the legislation. The rules do not impose additional costs of compliance beyond those provided in statute. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the increase in the number of educationally disadvantaged students who complete post-secondary coursework during high school, thus accelerating the attainment of post-secondary credentials necessary to support the Texas economy. Students and the state may realize additional benefits as the risk of credits that will not transfer to an institution of higher is reduced. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. Participation in the FAST program is voluntary. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will create a government program required by House Bill 8, 88th Texas Legislature, Regular Session;
(2) implementation of the rules will require the creation of employee positions, as required by House Bill 8;
(3) implementation of the rules may require an increase or decrease in future legislative appropriations to the agency, as provided in House Bill 8;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at charles.contero-puls@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The new section is proposed under Texas Education Code, Section 28.0095, which provides the Coordinating Board with the authority to adopt rules as necessary to implement the FAST Program.
The proposed new section affects Texas Education Code, Sections 28.0095 and 48.308.
§13.500.Authority and Purpose.
(a) Unless otherwise noted in a section, the authority for these provisions is provided by Texas Education Code, §§28.0095 and 48.308.
(b) This subchapter establishes rules relating to the administration of the Financial Aid for Swift Transfer (FAST) Program. The program provides institutions with funding to support their ability to allow educationally disadvantaged students to enroll in dual credit coursework at no cost to the student.
§13.501.Definitions.
In addition to the words and terms defined in §13.1 of this chapter (relating to Definitions) the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. In the event of conflict, the definitions in this subchapter shall control.
(1) Charter School--a public charter school authorized to operate under Texas Education Code, Chapter 12.
(2) Dual Credit Course--a course offered through an agreement under section 4.84 of this Part for joint high school and junior college credit under Texas Education Code, §130.008, or for another course offered by an institution of higher education, for which a high school student may earn semester credit hours or continuing education contact hours toward satisfaction of:
(A) a requirement necessary to obtain an industry-recognized credential or certificate or an associate degree;
(B) a foreign language requirement at an institution of higher education;
(C) a requirement in the core curriculum, as that term is defined by Texas Education Code, §61.821, at an institution of higher education; or
(D) a requirement in a field of study curriculum developed by the coordinating board under Texas Education Code, §61.823.
(3) Educationally disadvantaged--as defined in Texas Education Code, §5.001(4), eligible to participate in the national free or reduced-price lunch program.
(4) Equivalent of a semester credit hour--16 contact hours.
(5) Program--the Financial Aid for Swift Transfer (FAST) Program.
(6) School Year--the twelve month-period of high school enrollment starting in August.
§13.502.Eligible Institution.
(a) A public institution of higher education, as the term is defined in Texas Education Code, §61.003(8), is eligible to participate in the Program.
(b) A participating institution may not charge students attending high school in a Texas school district or charter school a tuition rate for dual credit courses in excess of the tuition rate outlined in §13.504 of this subchapter (relating to FAST Tuition Rate).
(c) A participating institution must ensure that an eligible student incurs no cost for their enrollment in any dual credit course at the institution. This includes, but is not limited to, tuition, fees, books, supplies, or other course-related expenses. This subsection does not prohibit a participating institution from charging a school district for course-related expenses, other than tuition, for an eligible student.
(d) Agreement. Each eligible institution must enter into an agreement with the Coordinating Board, the terms of which shall be prescribed by the Commissioner prior to being approved to participate in the program.
§13.503.Eligible Students.
(a) A student is eligible to enroll at no cost to the student in a dual credit course under the program if the student:
(1) is enrolled in and eligible for Foundation School Program funding at a high school in a Texas school district or charter school under the rules of the Texas Education Agency;
(2) is enrolled in a dual credit course at a participating institution of higher education that has entered into a Dual Credit Agreement with the student's school district as set out in §4.84 of this title (relating to Institutional Agreements); and
(3) was educationally disadvantaged at any time during the four school years preceding the student's enrollment in the dual credit course described by paragraph (2) of this subsection, as certified to the institution by the eligible student's school district or charter school, or other means authorized by rule.
(b) A school district's or charter school's notice to the institution regarding a student's status as educationally disadvantaged shall occur through the school district's or charter school's notice to the Texas Education Agency, unless otherwise provided by rule.
(c) A participating institution shall submit to the Coordinating Board identifying information, as outlined by the Coordinating Board, for students registered for or enrolled in dual credit courses. The Coordinating Board will compare the identifying information to data provided by the Texas Education Agency and will notify the institution as to which students fulfill the requirement outlined in subsection (a)(3) of this section.
§13.504.FAST Tuition Rate.
(a) The maximum tuition rate prescribed for a dual credit course through this program is $55 per semester credit hour or equivalent of a semester credit hour in the 2023-2024 academic year.
(b) The Commissioner shall use the Consumer Price Index for the preceding 12 months as calculated by the U.S. Bureau of Labor Statistics, to apply an annual inflationary adjustment to the FAST tuition rate.
(c) The Commissioner shall determine and announce the annual FAST tuition rate not later than the final day of January prior to the start of each fiscal year.
(d) The annual tuition rate announced per subsection (c) of this section takes effect in the fall semester following the announcement.
§13.505.FAST Funding Formula.
(a) Frequency of Disbursements. The Coordinating Board will provide each participating institution with a disbursement for each fall, spring, and summer semester upon the certification of the institution's eligible enrollments. The Coordinating Board will combine enrollment periods under this subsection when a semester includes more than one enrollment period (for example, a Summer 1 and a Summer 2 session).
(b) Disbursement Calculation. Each disbursement will equal the amount outlined in §13.504 of this subchapter (relating to FAST Tuition Rate) for the relevant semester multiplied by the number of semester credit hours or equivalent in which students who met the eligibility criteria in §13.503 of this subchapter (relating to Eligible Students) were enrolled in dual credit courses at the institution for the relevant semester.
(c) Data Sources. The source of data for the disbursement calculation will be reports collected by Board staff and certified by the institution for the relevant semester which provide an eligible student's dual credit enrollment in semester credit hours or their equivalent and the student's Texas Student Data System (TSDS) unique identification number issued by the Texas Education Agency, combined with data regarding educationally disadvantaged students, as reported by the Texas Education Agency, unless otherwise provided by rule.
(d) Verification of Data. The Coordinating Board will share each semester's calculation with the participating institution for comment and verification prior to disbursement. The institution will be given ten business days, beginning the day of the notice's distribution, and excluding State holidays, to confirm that the calculation accurately reflects the data they submitted or to advise the Coordinating Board of any inaccuracies.
(e) True-Up. Upon receipt of attendance data for the full school year from the Texas Education Agency, the Coordinating Board will review all eligible students used in the calculation outlined in subsection (d) of this section to verify that those students were in attendance at the high school during the period of dual credit enrollment. If any student is identified as not having been in attendance in high school during the period of dual credit enrollment, then the Coordinating Board will calculate the amount of funding the institution received for that student's dual credit enrollment. The Coordinating Board shall reduce each institution's subsequent disbursement under subsection (a) of this section by the amount calculated in this subsection.
§13.506.Overallocation.
Funding provided to an institution under this subchapter shall be subject to subchapter R of this chapter (relating to State Public Junior College Finance Program Reporting, Audit, and Overallocation).
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303638
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6365
The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter R, §§13.520 - 13.529, concerning the certification of compliance, required reporting, correction of errors, audit, and overallocation for the new State Public Junior College Finance Program. Specifically, this new section will establish rules that set out policies and procedures for public junior colleges to submit certifications of compliance and submit required reporting through various reporting collection mechanisms established by the Coordinating Board. The rules also describe how the Coordinating Board will conduct audits, review of required reporting for data errors, and correct those errors through either a payment of under-allocated funds or the recovery of over-allocated funds.
Rule 13.520 sets out the purpose of the subchapter, which is to establish definitions, certification of compliance, data reporting, audit, and correction of error requirements, as well as over-allocation and under-allocation procedures, necessary to implement the State Public Junior College Finance Program.
Rule 13.521 provides the authority for the chapter, which is established pursuant to Texas Education Code, §§28.0095, 61.035, 61.065, 130.003, and 130A.006-130A.009.
Rule 13.522 lists definitions used in the subchapter. These definitions establish consistent terminology within the subchapter and mirror commonly used definitions established elsewhere in the Coordinating Board's rules. The legislation establishing the State Public Junior College Finance Program permits the Coordinating Board to adopt rules as necessary to implement Texas Education Code, Chapters 61, 130, and 130A (Texas Education Code, §130A.005).
Rule 13.523 contains the policy and procedures necessary for public junior colleges to submit certifications of compliance with statute and rules. H.B. 8 requires public junior colleges to submit attestations of compliance, including compliance with all state laws and Coordinating Board rules, as a condition of receiving state funds (Texas Education Code, §§61.063 and 130.003(b)). These sections of statute also provide for the Coordinating Board to establish the manner in which public junior colleges make this attestation. Rule 13.523 therefore contains deadlines and stipulates the content of the attestation, and provides for resolution in the event of unresolved audit findings, establishing clear guidelines for institutions to comply with statute.
Rule 13.524 describes the required financial and academic reporting for institutions to submit the data necessary for the Coordinating Board to administer the State Public Junior College Finance Program. The Coordinating Board collects data through a variety of established mechanisms: the Community College Annual Reporting and Analysis Tool, Annual Financial Report Reporting, the Report of Fundable Operating Expenses, Education Data Systems reporting, and through ad hoc reporting as necessary. The data from these tools provides a cornerstone of the financial modeling necessary to determine precise funding amounts for the public junior colleges. This rule describes the uses of data from required reporting and states the standards and review processes for these reporting mechanisms. This rule implements Texas Education Code, §130A.006, which states that the Coordinating Board may establish reporting requirements as necessary to administer the finance program.
Rule 13.525 establishes the process for the Commissioner of Higher Education (Commissioner) to review required reporting for errors and formally establish when a data reporting error resulting in a material impact in formula funding was made. Statute permits the Coordinating Board to review the accuracy of data reported to the Coordinating Board for any errors (Texas Education Code, §130A.007). This section establishes parameters and expectations for the methods the Coordinating Board will use to detect data errors. In addition, this section establishes the method used by the Commissioner to make a formal determination of a data reporting error requiring a funding adjustment, an important preliminary step to start off the processes for recovering overallocated funds or disbursing under-allocated funds.
Rule 13.526 provides for compliance monitoring and auditing of funds disbursed under the new finance model for public junior colleges. Texas Education Code, §61.035, provides for the agency to conduct compliance monitoring of funds allocated to all institutions of higher education, including public junior college. This section establishes parameters and expectations of internal audit offices at institutions for data collection and examination assistance by the internal audit offices as institutional resources allow. In addition, this section contains information regarding reporting of ongoing or completed audits involving funds administered or allocated by or data reported to the Coordinating Board.
Rule 13.527 states that institutions must retain records for a period of no less than seven years for purposes of Coordinating Board review. Coordinating Board staff chose this time period to mirror the timeline of seven years in the statute, which states that the Coordinating Board may not review expenditures made by junior colleges occurring seven or more years in the past (Texas Education Code, §130A.009(e)).
Rule 13.528 lays out the process for the Coordinating Board to recover overallocated funds in the event a public community college has received more funding than was due. This section provides how the Coordinating Board will provide notice to institutions of an error finding and lays out an appeal process for institutions. This rule implements the recovery of overallocated funds provision of H.B. 8 (Texas Education Code, §130A.009).
This rule establishes a process for institutions of higher education to receive notice and have the opportunity to submit relevant information to appeal to the Commissioner in the case where the Coordinating Board may need to make an adverse funding adjustment. The procedures established for overallocation under §13.528(d) ensure the Coordinating Board is accurately disbursing appropriated funds as intended by the Legislature, while also providing flexibility for the method used to recoup the funds. This flexibility includes providing an option to recover a sum in a lump payment under §13.528(d)(1)(B), or alternatively over a five-year timespan under §13.528(d)(2), as authorized by H.B. 8. The flexibility is intended to limit extreme adverse financial impacts to public junior colleges that might detrimentally impact institutional operations, local communities, and students served by the institution, while still carrying out the Coordinating Board's obligation to disburse appropriated funds according to law.
Rule 13.529 likewise establishes how the Coordinating Board may make a financial adjustment in light of finding that an institution was allocated less in funding than was due. H.B. 8 provides for the Commissioner to adjust funds for the purpose of accuracy (Texas Education Code, §13A.007) and authorizes adjustment to installment under Texas Education Code, §130.0031. In addition, the General Appropriations Act provides that the Coordinating Board may make adjustments in the case of shortfall for the biennium (General Appropriations Act, Article IX, Contingency and Other Provisions, Section 18.04, Subsection 16 (2023)). The Coordinating Board intends to disburse appropriated funds with fidelity to appropriators' intent; this section allows for the agency to make institutions whole in the event of a shortfall due to a data reporting error or other error.
Paul Maeyaert, Interim Assistant Commissioner for Internal Audit and Compliance, has determined that for each of the first five years the sections are in effect there may be minimal fiscal implications for state or local governments as a result of enforcing or administering the rules, as required to implement the new community college finance program established by H.B. 8. The bill provides for the adjustment of funds relating to data reporting errors as well as a mechanism to recoup overallocated funds in Texas Education Code, §§130A.007 and 130A.009. The rules do not impose additional costs of compliance beyond those provided in statute.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Paul Maeyaert, Interim Assistant Commissioner for Internal Audit and Compliance, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the establishment of rules to implement changes to the certification of compliance, required reporting, correction of errors, audit, and overallocation for the new community college finance system, as established in Tex. H.B. 8, 88th Leg., R.S. (2023). This subchapter will establish a framework to ensure appropriated funds for public junior colleges are correctly spent. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will create a government program, as required by House Bill 8;
(2) implementation of the rules will require the creation of employee positions, as required by House Bill 8;
(3) implementation of the rules may require an increase or decrease in future legislative appropriations to the agency, as provided in House Bill 8;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Paul Maeyaert, Interim Assistant Commissioner for Internal Audit and Compliance, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The new sections are proposed under Texas Education Code, Section 130A.005, which provides the Coordinating Board with the authority to adopt rules to implement and administer the Public Junior College State Finance Program.
The proposed new sections affect Texas Education Code §§28.0095, 61.035, 61.065, 130.003, 130A.006-130A.009, and 130.0031.
§13.520.Purpose.
The purpose of this subchapter is to establish the definitions, certification of compliance, data reporting, audit, and correction of error requirements for institutions of higher education, as well as over-allocation and under-allocation procedures, under the State Public Junior College Finance Program (the Program). The subchapter further specifies the process for recovery of overallocated funds as required by statute. These provisions additionally apply to audit and overallocation of funds under the Financial Aid for Swift Transfer (FAST) Program.
§13.521.Authority.
The Coordinating Board adopts this subchapter pursuant to its authority under Texas Education Code, §§28.0095, 61.035, 61.063, 61.065, 130.003, and 130A.006-130A.009.
§13.522.Definitions.
The following words and terms, when used in this subchapter, shall have the following meanings:
(1) Audit--An engagement to audit the program conducted by the Coordinating Board's Internal Auditor and internal audit or compliance monitoring staff pursuant to either Texas Education Code, §§130A.006(4) or 61.035. This term may include a site visit, desk review, or examination of the institution's use of funds allocated by the Coordinating Board and data reported to the Coordinating Board. The term includes auditing undertaken to obtain evidence to sufficiently examine or verify data submitted to the Coordinating Board to be used by the Coordinating Board for funding or policymaking decisions, including data used for formula funding allocations, to ensure the data is reported accurately.
(2) Census Date--As defined in subchapter P, §13.472, of this chapter (relating to Definitions).
(3) Chief Audit Executive--The Internal Auditor hired by the Coordinating Board to perform internal auditing and compliance monitoring on behalf of the Coordinating Board pursuant to Texas Education Code, Chapters 61, 130, and 130A.
(4) Compliance Monitoring--A risk-based audit and compliance function conducted by the Coordinating Board pursuant to either Texas Education Code, §§130A.006(4) or 61.035, for the purpose of reviewing and assessing programmatic, legal, and fiscal compliance. This function may include conducting audits, site visits, desk reviews, or other examinations, to ensure that funds allocated or distributed by the Coordinating Board are allocated, distributed, and used in accordance with applicable law and Coordinating Board rule. The function includes obtaining evidence to sufficiently examine or verify data submitted to the Coordinating Board to be used by the Coordinating Board for funding or policymaking decisions, including data used for formula funding allocations, to ensure the data is reported accurately.
(5) Data Reporting Error--An error in data or other information reported and certified by a public junior college to the Coordinating Board that the Commissioner of Higher Education in his or her discretion determines may result in a material impact in the formula funding a public junior college was entitled to or received.
(6) Desk Review--An administrative review by the Coordinating Board that is based on information reported by an institution of higher education or a private or independent institution of higher education, including supplemental information required by the Coordinating Board for purposes of compliance monitoring, except that the term does not include information or accompanying notes gathered by the Coordinating Board during a site visit.
(7) Full-Time Student Equivalent (FTSE)--As defined in subchapter P, §13.472, of this chapter.
(8) Funding Adjustment--Any increase or decrease in funding by the Coordinating Board to an institution of higher education based on an over- or under-allocation of funds.
(9) Over-allocation--The over-payment of funds to a public junior college due to a data reporting error or other error by either the institution or the Coordinating Board that results in payments beyond what the institution is due.
(10) Site Visit--An announced or unannounced in-person visit by a representative of the Coordinating Board or its agent to an institution of higher education or a private or independent institution of higher education for the purposes of conducting an audit.
(11) Under-allocation--The under-payment of funds to a public junior college due to a data reporting error or other error by either the institution or the Coordinating Board that results in payments less than what the institution was owed for the fiscal year.
§13.523.Certification of Compliance.
(a) A public junior college is not eligible to receive funds under this subchapter unless that public junior college submits a certification of compliance with the requirements of Texas Education Code, §130.003(b,) and as stated herein.
(b) A public junior college must submit an attestation via email to CTC@highered.texas.gov certifying to compliance with Texas Education Code, §130.003(b), to the Coordinating Board by August 1 of each year. The certification must be signed by the public junior college's president, or Chief Executive Officer, as applicable. The certification must certify the following:
(1) That the public junior college is currently in compliance with each provision of Texas Education Code, §130.003; and
(2) The public junior college has complied with all laws and Coordinating Board rules for the establishment and operation of a public junior college.
(c) If a junior college district has an unresolved or ongoing audit finding that the certifying official determines may preclude the district's certification under Texas Education Code, §130.003(b), the district shall disclose the finding(s) and provide an explanation of the finding(s) and proposed resolution.
(1) The Commissioner of Higher Education shall determine whether the junior college district can demonstrate that the district will be in compliance for the purpose of receiving a scheduled payment.
(2) Any payment that the Coordinating Board makes to an institution pursuant to this subchapter is subject to recovery or recoupment if the certifying official does not make the required certification for the fiscal year for which the certification was required.
§13.524.Required Reporting.
(a) Required Reporting. A public junior college must submit data through required reporting mechanisms established by the Coordinating Board. The Coordinating Board may use information obtained through required reporting for:
(1) calculating funding disbursed under this chapter;
(2) providing timely data and analyses to inform management decisions by the governing body of each public junior college district;
(3) administering or evaluating the effectiveness of programs; or
(4) auditing the program.
(b) Financial Reporting: The Community College Annual Reporting and Analysis Tool (CARAT) and Annual Financial Report (AFR) Reporting.
(1) Standards. Each public junior college district must submit their Annual Financial Report (AFR) for the preceding fiscal year by January 1. The public junior college must submit the AFR following the requirements provided in the Coordinating Board's Budget Requirements and Annual Financial Reporting Requirements for Texas Public Community Colleges, also known as the AFR Manual, for that fiscal year, in accordance with Texas Education Code, §61.065.
(2) Format. Each public junior college must report AFR data for each completed fiscal year as prescribed in the Community College Reporting and Analysis Tool (CARAT) by January 31 of the following fiscal year.
(3) Review Process. The Commissioner of Higher Education will update the AFR Manual, as required by Texas Education Code, §61.065. The AFR Manual will conform to Governmental Accounting Standards Board (GASB) statements and guidance.
(c) Financial Reporting: Report of Fundable Operating Expenses (RFOE).
(1) Standards. Each public junior college must report all instructional expenses from each completed fiscal year for each institutional discipline and unallocated administrative expenses as defined in the RFOE by January 31 of the following fiscal year.
(2) Coordinating Board staff shall use the data provided on expenses at public junior colleges to produce a study of costs for each instructional discipline each year. This study will review all expenses made by institutions for instruction and administration from all unrestricted sources of funds, including appropriated general revenue, tuition and fees, contract instruction, other educational and general revenue, and local tax revenue.
(d) Academic Reporting: Education Data System reporting.
(1) Standards. Each public junior college must use data standards established by the Commissioner of Higher Education to submit required information relating to the delivery of educational programs. The Commissioner of Higher Education shall adopt and publish annually data standards in official Coordinating Board publications, including through the Coordinating Board Management (CBM) Reporting and Procedures Manual for Texas Community, Technical, and State Colleges. The Coordinating Board will widely disseminate this publication, which will include:
(A) descriptions of the data collections and submission requirements;
(B) descriptions of data elements and the codes used to report them, including data used to calculate Full-Time Student Equivalent enrollments, Texas Success Initiative eligibility of students, student transfer, dual credit or dual enrollment, the number and type of credentials conferred, and other relevant student characteristics;
(C) detailed responsibilities of public junior colleges in connection to the data submission process, including each deadline for submission and resubmission; and
(D) descriptions of data submission requirements, including submission record layout specifications and data edit specifications.
(2) A public junior college may report a student in attendance on the approved course census date for the purpose of funding under this subchapter, in accordance with Texas Education Code, §130A.008.
(3) Review Process. The Commissioner of Higher Education shall review the CBM Reporting and Procedures Manuals annually. The Commissioner of Higher Education may approve changes to the data and reporting standards outside of the annual review process to expedite implementation of data collections and reporting.
(4) Certification. The reporting official for each public junior college must certify the accuracy of the report by a certification statement submitted to the Coordinating Board's Educational Data Center in accordance with the template and instructions provided in the CBM Reporting and Procedures Manual.
(e) Academic Reporting: Ad Hoc Reporting Requests. As necessary to implement this chapter, the Commissioner of Higher Education may determine the need for additional, limited, supplemental requests for data and information from public junior colleges. To the extent Ad Hoc Reporting Requests may determine or influence funding disbursements under this subchapter, the Coordinating Board shall require the reporting official or another Coordinating Board designated official for each public junior college to certify the accuracy of the information contained in the report.
§13.525.Commissioner Review of Required Reporting; Data Reporting Errors.
(a) The Commissioner of Higher Education at his or her discretion or upon recommendation of the Chief Audit Executive may direct Coordinating Board staff to review the accuracy of the data reported to the Coordinating Board by public junior colleges under this subchapter using any of the following methods or combination thereof:
(1) The Chief Audit Executive or Coordinating Board staff may conduct periodic file reviews, desk-reviews, site visits, or audits of the accuracy of the data and information submitted for funding purposes, including regular reviews of submitted data carried out through standard data management, supporting data, audits conducted under this subchapter, or as a result of any other audit. Upon identifying a data reporting error that may impact formula funding, Coordinating Board staff shall notify the Commissioner of Higher Education as soon as practicable.
(2) Upon receiving a notification from the Chief Audit Executive or Coordinating Board staff of a potential data reporting error, the Commissioner of Higher Education may:
(A) direct staff to continue to gather additional information;
(B) determine that the discrepancy does not rise to the level of a data reporting error as defined in this chapter due to the materiality impact of the error; or
(C) determine that the discrepancy rises to the level of a data reporting error that requires a funding adjustment due to the materiality impact of the error or the amount of overallocation or under-allocation.
(b) The Coordinating Board may review and or require correction of a data reporting error that occurred not more than seven years prior to a review conducted by Coordinating Board staff.
(c) Upon the Commissioner of Higher Education's determination that the discrepancy constitutes a data reporting error requiring a funding adjustment, staff will notify the public junior college within 30 business days.
(d) The Commissioner of Higher Education may use any method provided in §13.528 or §13.529 of this subchapter to make the necessary funding adjustments to correct an over- or under-allocation.
§13.526.Public Junior College Audits.
(a) A public junior college shall report financial and academic data to the Coordinating Board under §13.524 of this subchapter (relating to Required Reporting).
(b) The Chief Audit Executive may conduct compliance monitoring or audits of public junior colleges' compliance with Texas Education Code, Chapter 130A, the General Appropriations Act, and other related formula funding statutes.
(c) In conducting an audit or compliance monitoring under this section, the Coordinating Board may request the assistance of the internal audit office at an institution of higher education and private or independent institution of higher education, as institutional resources allow, to examine the institution's use of funds allocated by, and data reported to, the Coordinating Board.
(d) To avoid duplication of effort and assist the Coordinating Board in identifying risk, an internal auditor at an institution shall notify the Coordinating Board of any audits conducted by the institution's internal or external auditor involving funds allocated or administered by the Coordinating Board or data reported to the Coordinating Board.
§13.527.Records Retention.
An institution of higher education shall retain records related to financial and educational data and information reported to the Coordinating Board under Chapter 13 for a period of not less than seven years.
§13.528.Recovery of Overallocated Funds.
(a) If the Coordinating Board determines after closing out a fiscal year pursuant to subchapter P, §13.477, of this chapter (relating to Close Out), that a data reporting error or any other error resulted in an overallocation of funds to the institution, the Coordinating Board shall use any method authorized under statute or this rule to make a funding adjustment necessary to correct the over-allocation.
(b) The Coordinating Board shall notify the institution not later than 30 business days after the Commissioner of Higher Education makes a determination of a data reporting error under §13.525 of this subchapter (relating to Commissioner Review of Required Reporting; Data Reporting Errors) or otherwise identifies an error requiring a funding adjustment to recover an overallocation. This notification must contain the amount of the overallocation and the basis for the determination.
(c) The institution may submit a written appeal to the Commissioner of Higher Education within 30 business days of receiving notification of an overallocation. The institution may attach any data or other written documentation that supports its appeal. The Commissioner of Higher Education shall review the appeal and determine in his or her sole discretion whether to affirm, deny, or modify the determination of overallocation within 30 business days of receipt. The Commissioner of Higher Education or Chief Audit Executive shall make an annual report of overallocation determinations to the Board.
(d) If the institution does not appeal or the Commissioner of Higher Education affirms the determination that an overallocation requiring a funding adjustment has occurred, the Coordinating Board shall recover an amount equal to the amount overallocated to the public junior college through one of the following methods:
(1) The Coordinating Board shall:
(A) withhold an amount equivalent to the overallocation by withholding from subsequent allocations of state funds for the current fiscal year as part of the close out of the current fiscal year; or
(B) request and obtain a refund from the public junior college during the current fiscal year an amount equivalent to the amount of the overallocation; or
(C) If the Commissioner of Higher Education in his or her sole discretion determines that the recovery of an overallocation in the current or subsequent fiscal year will have a substantial negative impact on the operations of the institution or the education of students, the Commissioner of Higher Education may instead recover the overallocation pursuant to subsection (d)(2) of this section.
(2) If the Commissioner of Higher Education in his or her sole discretion determines that an overallocation pursuant to paragraphs (1) or (2) of this section was the result of exceptional circumstances reasonably caused by statutory changes to Texas Education Code, Chapters 130 or 130A, and related reporting requirements, the Coordinating Board may recover the overallocation over a period not to exceed the subsequent five fiscal years.
(e) In addition to the recovery of an over-allocation under this section, the Commissioner of Higher Education may establish a corrective action plan for a public junior college that has received an overallocation of funds.
(f) If the public junior college fails to comply with an agreement to submit a refund established under this section, the Coordinating Board must report to the Comptroller of Public Accounts for recovery pursuant to Texas Education Code, Section 130A.009.
§13.529.Payment of Under-allocated Funds.
If the Commissioner of Higher Education determines that a data reporting error or any other error resulted in an under-allocation of funds, the Coordinating Board shall provide the funds to the institution pursuant to the close-out process in subchapter P, §13.477, of this chapter (relating to Close Out) or as otherwise authorized by law.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303639
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
SUBCHAPTER C. NATIONAL RESEARCH UNIVERSITY FUND
The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 15, Subchapter C, §§15.40 - 15.44, concerning the National Research University Fund (NRUF). Specifically, the Coordinating Board plans to repeal this subchapter in accordance with changes made by Tex. H.B. 1595, 88th Leg., R.S. (2023). This repeal presumes passage of House Joint Resolution 3, 88th Leg., R.S. (2023), the vote for which would take place November 7, 2023. If the constitutional amendment is approved, the provisions of H.B. 1595 go into effect on January 1, 2024.
Rules 15.40 - 15.42 establish the purpose, authority and definitions related to the NRUF. Rule 15.43 establishes the precise criteria for eligibility to receive a distribution from the NRUF and Rule 15.44 provides for the process by which institutions report data on the criteria to the Coordinating Board and the Coordinating Board certifies eligibility of an institution to receive an NRUF distribution to the Comptroller and State Auditor's Office.
As part of the changes assumed to be enacted by H.B. 1595, statute eliminates the NRUF and recreates it as the Texas University Fund (TUF). Specifically, the Coordinating Board plans to repeal these rules and replace them with a new section outlining the eligibility, distribution methodology, and reporting requirements for the TUF.
Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as the result of adopting this rule is compliance in Texas Administrative Code with the elimination of the National Research University Fund, in accordance with the provisions of Tex. H.B. 1595, 88th Leg., R.S. (2023), which recreates the National Research University Fund as the Texas University Fund, with new eligibility requirements and allocation methodologies. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The repeal is proposed in accordance with changes made by Tex. H.B. 1595, 88th Leg., R.S. (2023), which eliminates the National Research University Fund and re-creates it as the Texas University Fund.
The proposed repeal affects Texas Education Code, §§62.141 - 62.149.
§15.40.Purpose.
§15.41.Authority.
§15.42.Definitions.
§15.43.Eligibility.
§15.44.Accounting and Reporting.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303646
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6548
SUBCHAPTER A. GENERAL PROVISIONS
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter A, General Provisions, §22.1, concerning definitions. Specifically, this amendment will modify the definitions based on the consensus reached by the negotiated rulemaking committee on the Texas Educational Opportunity Grant (August 2, 2023).
Rule 22.1, Definitions, is amended to remove the definition of "entering undergraduate." The definition has been moved to the individual subchapters that are affected by the definition, specifically, subchapter L, §22.226, of this chapter for the Towards EXcellence, Access, and Success (TEXAS) Grant Program, and subchapter M, §22.254, of this chapter for the Texas Educational Opportunity Grant Program. The amendment also adds the definition for "equivalent of a semester credit hour." The definition is added to bring clarity to the multiple references to this equivalency in Subchapter M. The definitions of Board, the Commissioner, and the Coordinating Board are also amended to provide greater clarity to these terms.
Texas Education Code, §61.07761, requires the Coordinating Board to establish and publish the allocation methodologies and to develop procedures to verify the accuracy of the application of those allocation methodologies by Coordinating Board staff.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the expanded student eligibility and greater institutional flexibility for the Texas Educational Opportunity Grant Program. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at charles.contero-puls@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.0331, which provides the Coordinating Board with the authority to undertake negotiated rulemaking when proposing a rule relating to the allocation or distribution of funds, including financial aid or other trusteed funds.
The proposed amendment affects Texas Education Code, Chapter 56, Subchapter P.
§22.1.Definitions.
The following words and terms, when used in Chapter 22, shall have the following meanings, unless otherwise defined in a particular subchapter:
(1) Academic Year--The combination of semesters defined by a public or private institution of higher education to fulfill the federal "academic year" requirement as defined by 34 CFR 668.3.
(2) Attempted Semester Credit Hours--Every course in every semester for which a student has been registered as of the official Census Date, including but not limited to, repeated courses and courses the student drops and from which the student withdraws. For transfer students, transfer hours and hours for optional internship and cooperative education courses are included if they are accepted by the receiving institution towards the student's current program of study.
(3) Awarded--Offered to a student.
(4) Board [or Coordinating Board]--The
governing body of the agency known as the Texas Higher Education Coordinating
Board [The Texas Higher Education Coordinating Board].
[(5) Board Staff--The staff of the
Texas Higher Education Coordinating Board.]
(5) [(6)] Categorical Aid--Gift
aid that the institution does not award to the student, but that the
student brings to the school from a non-governmental third party.
(6) [(7)] Commissioner--[The]
Commissioner of Higher Education[, the Chief Executive Officer
of the Board].
(7) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board and its staff.
(8) Cost of Attendance/Total Cost of Attendance--An institution's estimate of the expenses incurred by a typical financial aid recipient in attending a particular institution of higher education. It includes direct educational costs (tuition and fees) as well as indirect costs (room and board, books and supplies, transportation, personal expenses, and other allowable costs for financial aid purposes).
(9) Degree or certificate program of four years or
less--A baccalaureate degree, associate degree, or certificate
program other than a program determined by the Board to require four
years or more [less] to complete.
(10) Degree or certificate program of more than four years--A baccalaureate degree or certificate program determined by the Board to require more than four years to complete.
(11) Encumber--Program funds that have been officially requested by an institution through procedures developed by the Coordinating Board.
(12) Equivalent of a semester credit hour--16 contact hours.
[(12) Entering undergraduate--A student
enrolled in the first 30 semester credit hours or their equivalent,
excluding hours taken during dual enrollment in high school and courses
for which the student received credit through examination.]
(13) Expected Family Contribution (EFC)--A measure of how much the student and his or her family can be expected to contribute to the cost of the student's education for the year as determined following the federal methodology.
[(13) Expected Family Contribution
(EFC)-- A measure of how much the student and his or her family can
be expected to contribute to the cost of the student's education for
the year as determined following the federal methodology.]
(14) Financial Need--The Cost of Attendance at a particular public or private institution of higher education less the Expected Family Contribution. The Cost of Attendance and Expected Family Contribution are to be determined in accordance with Board guidelines.
(15) Full-Time--For undergraduate students, enrollment or expected enrollment for the equivalent of twelve or more semester credit hours per semester. For graduate students, enrollment or expected enrollment for the normal full-time course load of the student's program of study as defined by the institution.
(16) Gift Aid--Grants, scholarships, exemptions, waivers, and other financial aid provided to a student without a requirement to repay the funding or earn the funding through work.
(17) Graduate student--A student who has been awarded a baccalaureate degree and is enrolled in coursework leading to a graduate or professional degree.
(18) Half-Time--For undergraduates, enrollment or expected enrollment for the equivalent of at least six but fewer than nine semester credit hours per regular semester. For graduate students, enrollment or expected enrollment for the equivalent of 50 percent of the normal full-time course load of the student's program of study as defined by the institution.
(19) Period of enrollment--The semester or semesters within the current state fiscal year (September 1 - August 31) for which the student was enrolled in an approved institution and met all eligibility requirements for an award through this program.
(20) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including the determination of student eligibility, selection of recipients, maintenance of all records, and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the institution's chief executive officer, the director of student financial aid shall serve as Program Officer.
(21) Residency Core Questions--A set of questions developed by the Coordinating Board to be used to determine a student's eligibility for classification as a resident of Texas, available for downloading from the Coordinating Board's website, and incorporated into the ApplyTexas application for admission.
(22) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B of this title (relating to Determination of Resident Status). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.
(23) Semester--A payment period, as defined by 34 CFR 668.4(a) or 34 CFR 668.4(b)(1).
(24) Three-Quarter-Time--For undergraduate students, enrollment or expected enrollment for the equivalent of at least nine but fewer than 12 semester credit hours per semester. For graduate students, enrollment or expected enrollment for the equivalent of 75 percent of the normal full-time course load of the student's program of study as defined by the institution.
(25) Timely Distribution of Funds--Activities completed by institutions of higher education related to the receipt and distribution of state financial aid funding from the Board and subsequent distribution to recipients or return to the Board.
(26) Undergraduate student--An individual who has not yet received a baccalaureate degree.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303640
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6365
The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter K, §§22.200 - 22.210, concerning Texas Transfer Grant Program. Specifically, these new sections will outline the authority and purpose, definitions, institutional eligibility requirements, student eligibility requirements, satisfactory academic progress requirements, discontinuation of eligibility, hardship provisions, priorities in making grants, grant amounts, allocation of funds, and disbursement of funds, which are necessary to administer the Texas Transfer Grant Program.
Rule 22.200 indicates the specific sections of the Texas Government Code that provides the agency with authority to issue these rules, as well as the purpose of the Texas Transfer Grant Program.
Rule 22.201 provides definitions for words and terms within the Texas Transfer Grant Program rules. The definitions provide clarity for words and terms that are integral to the understanding and administration of the rules.
Rule 22.202 outlines the eligibility requirements that institutions must fulfill to participate in the program. The requirements are proposed to align with the Towards EXcellence, Access, and Success (TEXAS) Grant Program, as both programs serve students in the same institutional sector.
Rule 22.203 outlines the eligibility requirements that a student must meet to allow an institution to provide the students with a grant through the program. The proposed requirements include expectations that exist within the TEXAS Grant program, such as the requirement to be a Texas resident, to show financial need, to be enrolled in a baccalaureate degree program, to make satisfactory academic progress, and to comply with applicable Selective Service registration expectations. The proposed requirements also include expectations that are specifically targeted toward achieving the public benefit of the program, such as full-time enrollment, having completed associate degrees with at least a 2.5 grade point average at a public two-year institution to include completion of the core curriculum or an abbreviated core curriculum related to a specific approved field of study curriculum, and enrolling in a baccalaureate degree program at an eligible institution within one year of ceasing to be enrolled in a two-year public institution.
Rule 22.204 outlines the satisfactory academic progress that students must achieve to receive a grant through the program. The proposed requirement allows the participating institution to use satisfactory academic progress guidelines already in place for determining eligibility for federal financial aid programs.
Rule 22.205 outlines the situations in which a student is not eligible to receive a grant through the program. To acknowledge the goal of assisting students in completing degrees, a student may not receive a grant after completion of a baccalaureate degree. To acknowledge the limited state resources available for financial aid programs, a student may not simultaneously receive a grant through this program and the TEXAS Grant program. To encourage timely completion of a baccalaureate degree, a student may not receive a grant after having been enrolled in the baccalaureate program for two years (three years if the degree program is more than four years), nor may the student receive the grant after attempting 135 semester credit hours.
Rule 22.206 outlines provisions that permit an institution to develop a policy that allows an otherwise ineligible student to receive a grant through the program when unique hardships justify an exception. The provisions are proposed to align with similar provisions in the TEXAS Grant program. When justified and documented, these provisions may be used in relation to a student enrolling less than full-time, failing to meet satisfactory academic progress requirements, maintaining enrollment for more than two years (three years if the degree program is more than four years), attempting more than 135 semester credit hours, or failing to enroll in a baccalaureate program within one year of ceasing to be enrolled in a two-year public institution.
Rule 22.207 outline priorities that institutions will use in determining how to select grant recipients when funding does not allow for all eligible recipients to receive grants through the program. Similar justifications exist in the TEXAS Grant program. Priority would first go toward prior recipients. For first-time recipients, priority would go to those who have demonstrated an expected family contribution that does not exceed the expected family contribution used for similar purposes in the TEXAS Grant program, with highest priority given to eligible students with the highest levels of academic achievement prior to transfer as determined by the participating institution.
Rule 22.208 outlines the maximum grant amount that a participating institution may provide to an eligible student. The maximum grant amount will be aligned with the maximum grant amounts calculated for the TEXAS Grant program under §22.234 of this chapter.
Rule 22.209 provides the allocation formula that will be used to determine the amount of funding that each participating institution will be provided for the program. The allocation formula is modeled after the criteria utilized in the allocation methodology for first-time recipients of the TEXAS Grant program. This rule is proposed based on Texas Education Code, §61.07761, which directs the Coordinating Board to establish and publish allocation methodologies and develop procedures to verify the accuracy of the calculations.
Rule 22.210 outlines the way the Coordinating Board will use to disburse funding to participating institutions. This rule aligns with the way the Coordinating Board disburses funding for other state financial aid grant programs.
Unless otherwise noted, these sections are proposed based on General Appropriations Act, 88th Leg. R.S., H.B. 1, art. III-52 ch. 1170, Rider 56, which authorizes the Coordinating Board to administer 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. Rule making to administer the Texas Transfer Grant Program is authorized by Texas Administrative Procedure Act, Texas Government Code §2001.003(6) which requires the agency to prescribe law or policy via rule making.
Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there may be fiscal implications for state or local governments as a result of enforcing or administering the rules, as required to implement the program. However, participation in the program is voluntary for institutions of higher education. Fiscal implication of the potential for increased funding to institutions of higher education is funded as part of the General Appropriations Act. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the increase in the number of economically disadvantaged students who transfer on to public universities to complete baccalaureate degrees, thus accelerating the attainment of post-secondary credentials necessary to support the Texas economy. Students and the state may realize additional benefits as the risk of credits that will not transfer to an institution of higher education is education is reduced. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will create a government program required by House Bill 1, Article III, Texas Higher Education Coordinating Board, Section 56;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules may require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Dr. Charles W. Contero-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at charles.contero-puls@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The new sections are proposed under Texas Administrative Procedure Act, Texas Government Code §2001.003(6) which requires the agency to prescribe law or policy via rule making.
The proposed new sections affect General Appropriations Act, 88th Leg. R.S., H.B. 1, art. III-52 ch. 1170, Rider 56.
§22.200.Authority and Purpose.
(a) Unless otherwise noted in a section, the authority for these provisions is provided by Texas Administrative Procedure Act, Texas Government Code §2001.003(6).
(b) This subchapter establishes rules relating to the administration of the Texas Transfer Grant Program. The program provides need-based grants to enable eligible students to transfer from two-year institutions of higher education to four-year institutions of higher education in this state.
§22.201.Definitions.
In addition to the words and terms defined in §22.1 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. In the event of conflict, the definitions in this subchapter shall control.
(1) Encumbered Funds--Funds ready for disbursal to the institution, based on the institution having submitted to the Board the required documentation to request funds.
(2) Grant--A Texas Transfer Grant provided through the Texas Transfer Grant Program.
(3) Program--The Texas Transfer Grant Program.
§22.202.Eligible Institutions.
(a) Eligibility.
(1) Institutions eligible to make grants through the program are medical or dental units, as the term is defined in Texas Education Code, §61.003(5), and general academic teaching institutions, other than public state colleges, as the term is defined in Texas Education Code, §61.003(16).
(2) No participating institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.
(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions or employment.
(b) Approval.
(1) Agreement. Each eligible institution must enter into an agreement with the Coordinating Board, the terms of which shall be prescribed by the Commissioner, prior to being approved to participate in the program.
(2) Approval Deadline.
(A) An institution must indicate an intent to participate in the program by June 1 and enter into an agreement with the Coordinating Board by August 31 for qualified students enrolled in that institution to be eligible to receive grants in the following biennium.
(B) Notwithstanding subsection (A), for the 2023-2024 academic year, an institution may indicate intent to participate in the program by the administrative deadline established by the Commissioner.
(c) Responsibilities. A participating institution is required to abide by the General Provisions outlined in subchapter A of this chapter.
§22.203.Eligible Students.
To qualify for a grant through the Program, a student must:
(1) have Texas resident status, as determined by chapter 21, subchapter B of this title (relating to Determination of Resident Status);
(2) show financial need in the semester(s) in which a grant is offered;
(3) have applied for any available financial aid assistance;
(4) be enrolled in a baccalaureate degree program at an eligible institution;
(5) be enrolled full-time in the semester(s) in which a grant is offered unless granted a hardship waiver of this requirement under §22.206 of this subchapter (relating to Hardship Provisions);
(6) make satisfactory academic progress toward the baccalaureate degree at the eligible institution, as defined in §22.204 of this subchapter (relating to Satisfactory Academic Progress) unless the student is granted a hardship extension in accordance with §22.206 of this subchapter (relating to Hardship Provisions);
(7) have been awarded an associate degree by a public junior college as defined in Texas Education Code, §61.003(2); public technical institute as defined in Texas Education Code, §61.003(7); or public state college as defined in Texas Education Code, §61.003(16), and credit hours earned toward completion of the associate degree must:
(A) include completion of the core curriculum or an abbreviated core curriculum related to a specific approved field of study curriculum transferable to one or more general academic teaching institutions; and
(B) have been completed with at least a 2.5 grade point average.
(8) unless granted a hardship postponement in accordance with §22.206 of this subchapter (relating to Hardship Provisions), have enrolled in the baccalaureate degree program at the eligible institution on a full-time basis not later than the end of the 12th month after the calendar month in which the student ceased being enrolled in a public junior college as defined in Texas Education Code, §61.003(2); public technical institute as defined in Texas Education Code, §61.003(7); or public state college as defined in Texas Education Code, §61.003(16); and
(9) meet applicable standards outlined in §22.3 of this chapter (relating to Student Compliance with Selective Service Registration).
§22.204.Satisfactory Academic Progress.
To qualify for a grant, each recipient of the grant shall meet the satisfactory academic progress requirements as utilized by the financial aid office of the eligible institution to determine eligibility for federal financial aid programs.
§22.205.Discontinuation of Eligibility or Non-Eligibility.
(a) A student may not receive a grant after having already being granted a baccalaureate degree by any institution.
(b) A student may not receive a grant while simultaneously receiving a Toward EXcellence, Access, and Success (TEXAS) Grant.
(c) Unless granted a hardship postponement in accordance with §22.206 of this subchapter (relating to Hardship Provisions), a student's eligibility for a grant ends:
(1) two years from the start of the semester in which the student enrolls in the baccalaureate degree program at the eligible institution on a full-time basis, if the student is enrolled in a degree program of four years or less; or
(2) three years from the start of the semester in which the student enrolls in the baccalaureate degree program at the eligible institution on a full-time basis if the student is enrolled in a degree program of more than four years.
(d) A student's eligibility for a grant ends once he or she has attempted 135 semester credit hours or the equivalent unless the student is granted a hardship extension in accordance with §22.206 of this subchapter (relating to Hardship Provisions).
(e) Other than as described in §22.206 of this subchapter (relating to Hardship Provisions), if a student fails to meet any of the requirements for receiving a continuation grant as outlined in §22.203 of this subchapter (relating to Eligible Students) after completion of any semester, the student may not receive a grant until he or she completes a semester while not receiving a grant and meets all the requirements as outlined in §22.203 of this subchapter (relating to Eligible Students) as of the end of that semester.
§22.206.Hardship Provisions.
(a) In the event of a hardship, the Program Officer at an eligible institution may allow an otherwise eligible student to receive a grant under the following conditions:
(1) while enrolled in fewer semester credit hours than required in §22.203(5) of this subchapter (relating to Eligible Students);
(2) if the student fails to meet the satisfactory academic progress requirements of §22.203(6) of this subchapter (relating to Eligible Students);
(3) if the student requires an extension of the limits found in §22.205(c) of this subchapter (relating to Discontinuation of Eligibility or Non-Eligibility) to complete his or her degree; or
(4) if the student has attempted more hours than allowed under §22.205(d) of this subchapter (relating to Discontinuation of Eligibility or Non-Eligibility). However, the total number of hours paid for, at least in part, with grant funds may not exceed 150 semester credit hours or the equivalent.
(b) Hardships are not limited to, but include:
(1) a showing of a severe illness or other debilitating condition that may affect the student's academic performance;
(2) an indication that the student is responsible for the care of a sick, injured, or needy person and that the student's provision of care may affect his or her academic performance; or
(3) the requirement of fewer than twelve hours to complete one's degree plan.
(c) The Program Officer may allow a student to receive a grant after the time limits described in Section 22.203(8) (relating to Eligible Students) if the student and/or the student's family has suffered a hardship that would now make the student rank as one of the institution's neediest.
(d) Documentation justifying the eligibility granted through the hardship provisions outlined in this rule must be kept in the student's file. Each institution must identify to the Coordinating Board those students granted eligibility through hardship provisions so that the Coordinating Board may appropriately monitor each student's period of eligibility.
(e) Each participating institution shall adopt a hardship policy under this section and have the policy available in writing in the financial aid office for public review upon request.
§22.207.Priorities in Grants to Students.
(a) If state appropriations for the program are insufficient to allow grants to all eligible students, each institution shall give priority to eligible students who have previously received a grant through the program.
(b) In determining first-time recipients of grants through the program, an institution shall give priority to those students who have an expected family contribution that does not exceed 60 percent of the average statewide amount of tuition and fees for general academic teaching institutions, other than public state colleges, as the term is defined in Texas Education Code, §61.003(16), for the relevant academic year. The Coordinating Board shall determine and announce this value for a given state fiscal year by January 31 of the prior fiscal year.
(c) In determining first-time recipients of grants through the program, an institution shall give highest priority to eligible students meeting criteria specified under subsection §22.207(b) (relating to Priorities in Grants to Students) who have also demonstrated the highest levels of academic achievement prior to transfer as determined by the participating institution.
§22.208.Grant Amounts.
(a) Funding. The Coordinating Board may not award through this program an amount that exceeds the amount of state appropriations and other funds that are available for this use.
(b) Grant Amounts.
(1) The Commissioner shall determine and announce the maximum grant amounts in a given state fiscal year by January 31 of the prior fiscal year. The calculation of the maximum amount will be consistent with the maximum grant forward for TEXAS Grant for the semester as set out in subchapter L of this chapter (relating to Toward Excellence, Access, and Success (TEXAS) Grant Program).
(2) An institution may not reduce the amount of a grant by any gift aid for which the student receiving the grant is eligible, unless the total amount of a student's grant plus any gift aid received exceeds the student's cost of attendance. However, a student's grant shall not be greater than the amount of the student's financial need.
(c) The Commissioner shall make grant calculations in accordance with §22.11 of this chapter (relating to Provisions specific to the TEXAS Grant, TEOG, TEG, and Texas Work-Study Programs).
§22.209.Allocation of Funds.
(a) The Commissioner shall determine allocations on an annual basis as follows:
(1) The allocation base for each eligible institution will be the number of students it reported in the most recent certified Financial Aid Database submission who met the following criteria:
(A) were enrolled as undergraduate students and had not yet received a Bachelor's degree;
(B) were classified as having resident status, as determined by chapter 21, subchapter B of this title (relating to Determination of Resident Status);
(C) were enrolled full-time in either the fall or spring semester; and
(D) have a nine-month Expected Family Contribution, less than or equal to the amount established in §22.207(b) of this subchapter (relating to Priorities in Grants to Students) for the year reported in the Financial Aid Database submission.
(2) Each institution's percentage of the available funds will equal its percentage of the state-wide number of students who meet the criteria in paragraph (1) of this subsection.
(3) The Commissioner will complete allocations for both years of the biennium at the same time. The Coordinating Board will use the three most recent certified Financial Aid Database submissions to forecast the data utilized in the calculation of the allocation for the second year of the biennium. The Coordinating Board will provide each institution with notification of their allocations for both years of the biennium at the same time.
(b) Verification of Data. The Coordinating Board will share allocation calculations with each participating institution for comment and verification prior to final posting. Each institution will have ten business days, beginning the day of the notice's distribution, and excluding State holidays, to confirm that the allocation report accurately reflects the data the institution submitted or to advise the Coordinating Board of any inaccuracies.
(c) Reductions in Funding.
(1) If annual funding for the program is reduced after the start of a fiscal year, the Commissioner may use any method necessary to distribute the impact of reduced funding across all participating institutions by an across-the-board percentage decrease in each institution's allocation.
(2) If annual funding is reduced prior to the start of a fiscal year, the Commissioner may recalculate the allocations according to the allocation methodology outlined in this rule for the affected fiscal year based on available dollars.
§22.210.Disbursement of Funds.
Upon request by an institution throughout the academic year, the Coordinating Board shall forward to each participating institution a portion of its allocation of funds for timely disbursement to students. Each institution shall have until the close of business on August 1, or the first working day thereafter if it falls on a weekend or holiday, to encumber program funds from their allocation. After that date, an institution may lose any funds in the current fiscal year not yet drawn down from the Coordinating Board for timely disbursement to students. Funds released in this manner in the first year of the biennium become available to the institution for use in the second year of the biennium. Funds released in this manner in the second year of the biennium are deemed returned to the Coordinating Board.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303641
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6365
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter L, §22.226, concerning definitions for the Toward EXcellence, Access, and Success (TEXAS) Grant. Specifically, this amendment will make non-substantive conforming changes based on the consensus reached by the negotiated rulemaking committee on Texas Educational Opportunity Grant Program (August 2, 2023).
Rule 22.226, Definitions, is amended to add the definition of "entering undergraduate." This definition is being removed from Chapter 22, Subchapter A, General Provisions, and added to Chapter 22, Subchapter L, TEXAS Grant Program, verbatim to maintain consistency in the TEXAS Grant Program. Subsequent definitions have been appropriately renumbered.
Texas Education Code, §61.0331, requires negotiated rulemaking when adopting a rule related to the allocation or distribution of funding, including financial aid and other trusteed funds. Texas Education Code, §61.07761, requires the Coordinating Board to establish and publish the allocation methodologies and to develop procedures to verify the accuracy of the application of those allocation methodologies by Coordinating Board staff.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the section is in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the non-substantive conforming changes required to support the negotiated rulemaking activities to expand student eligibility and provide greater institutional flexibility for the Texas Educational Opportunity Grant Program. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will not change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at charles.contero-puls@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.0331, which provides the Coordinating Board with the authority to undertake negotiated rulemaking when adopting a rule relating to the allocation or distribution of funds, including financial aid or other trusteed funds.
The proposed amendment affects Texas Education Code, Chapter 56, Subchapter M.
§22.226.Definitions.
In addition to the words and terms defined in §22.1 of
this chapter (relating to Definitions) [Chapter],
the following words and terms, when used in this subchapter, shall
have the following meanings, unless the context clearly indicates otherwise:
(1) Continuation grant--A TEXAS Grant offered to a person who has previously received an initial year grant.
(2) Degree program of four years or less--A baccalaureate degree program, other than a program determined by the Board to require more than four years to complete.
(3) Degree program of more than four years--A baccalaureate degree program determined by the Board to require more than four years to complete.
(4) Encumbered Funds--Funds ready for disbursal to the institution, based on the institution having submitted to the Board the required documentation to request funds.
(5) Entering undergraduate--A student enrolled in the first 30 semester credit hours or their equivalent, excluding hours taken during dual enrollment in high school and courses for which the student received credit through examination.
(6) [(5)] General Academic Teaching
Institution--As the term is defined in Texas Education Code, §61.003(3).
(7) [(6)] Initial year grant--The
TEXAS Grant offered in the student's first year in the TEXAS Grant
Program, typically made up of a fall and spring disbursement.
(8) [(7)] Medical or dental unit--As
the term is defined in Texas Education Code, §61.003(5).
(9) [(8)] Public Institution--As
the term, institution of higher education, is defined in Texas Education
Code, §61.003(8).
(10) [(9)] Prior-prior year--For
allocation purposes, the state fiscal year that began two years earlier
than the fiscal year for which the allocation is being calculated.
(11) [(10)] Private Institution--As
the term, private or independent institution of higher education,
is defined in Texas Education Code, §61.003(15).
(12) [(11)] Program--The Toward
EXcellence, Access and Success (TEXAS) Grant program.
(13) [(12)] Public state college--As
the term is defined in Texas Education Code, §61.003(16).
(14) [(13)] Required fees--A
mandatory fee (required by statute) or discretionary fee (authorized
by statute, imposed by the governing board of a public institution)
and that a public institution charges to a student as a condition
of enrollment at the public institution or in a specific course.
(15) [(14)] Target grant amount--An
amount set by the Coordinating Board, in consultation with public
institutions participating in the TEXAS Grant Program, and used as
the recommended average grant amount for the TEXAS Grant Program for
a biennium and in establishing renewal year allocations to participating
public institutions as described in §22.236(a)(1) of this title
(relating to Allocation and Reallocation of Funds).
(16) [(15)] Tuition--Statutory
tuition, designated and/or Board-authorized tuition.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303642
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6365
19 TAC §§22.254, 22.256 - 22.259, 22.261, 22.262, 22.264
The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter M, §§22.254, 22.256 - 22.259, 22.261, 22.262, and 22.264, concerning Texas Educational Opportunity Grant. Specifically, the proposed amendments are necessary to implement the substantive changes upon which the Negotiated Rulemaking Committee on Texas Educational Opportunity Grant reached consensus (August 2, 2023).
Rule 22.254 is amended to add the definition of "certificate program" and to alter the definition of "entering undergraduate." The negotiated rulemaking committee defined "certificate program" to acknowledge the role that certificate programs play in achieving the state's goals as outlined in Building a Talent Strong Texas. The definition provides institutions with greater flexibility to acknowledge the broadening range of credentials that support the success of Texans. The negotiated rulemaking committee increased the number of credit hours under which a student will be considered an entering undergraduate. The change provides eligible institutions with greater flexibility to acknowledge the variety of pathways that students may take to starting an associate degree or certificate program.
Rule 22.256 is amended to make a non-substantive change. The text defining "entering undergraduate" was removed from §22.226 of this chapter and added to §22.256 verbatim to maintain consistency in the TEXAS Grant program.
Rule 22.257 is amended to include language acknowledging semester credit hour equivalency. The acknowledgment of semester hour equivalency exists throughout subchapter M but had been inadvertently left out of §22.257.
Rule 22.258 is amended to correct a non-substantive grammatical error.
Rule 22.259 is amended to include language acknowledging semester credit hour equivalency. The acknowledgment of semester hour equivalency exists throughout subchapter M but had been inadvertently left out of §22.259. The rule is also amended to acknowledge certificate programs, which are acknowledged throughout subchapter M but had been inadvertently left out of §22.259.
Rule 22.261 is amended to alter the calculation of the maximum grant program. The amended calculation recognizes both in-district and out-of-district resident students. The negotiated rulemaking committee views this change as a better representation of the grant calculation outlined in Texas Education Code, Section 56.407(a). The amendment will require an alteration to the manner in which institutions calculate a data element submitted through the Coordinating Board's Integrated Fiscal Reporting system which is used for this purpose. The rule is also amended to reflect the statutory change enacted by House Bill 8, 88th Texas Legislature, Regular Session. The amendment provides eligible institutions clarity regarding the statutory change and its effective date. The amendment also makes non-substantive changes to remove redundant text.
Rule 22.262 is amended to make non-substantive changes that remove outdated references to prior amendments, provide clarity to amendments completed during prior negotiated rulemaking activities, and remove text that is being moved to new rule §22.265 of this chapter
Rule 22.264 is amended to make non-substantive changes that remove outdated references to prior amendments, provide clarity to amendments completed during prior negotiated rulemaking activities, and remove text that is being moved to new rule §22.265 of this chapter.
Texas Education Code, §61.0331, requires negotiated rulemaking when adopting a rule related to the allocation or distribution of funding, including financial aid and other trusteed funds. Texas Education Code, §61.07761, requires the Coordinating Board to establish and publish the allocation methodologies and to develop procedures to verify the accuracy of the application of those allocation methodologies by Coordinating Board staff.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the sections will be the expanded student eligibility and greater institutional flexibility for the Texas Educational Opportunity Grant Program. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.
Government Growth Impact Statement
(1) the rules will not create or eliminate a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will not create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at charles.contero-puls@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The amendment is proposed under Texas Education Code, Section 61.0331, which provides the Coordinating Board with the authority to undertake negotiated rulemaking when adopting a rule relating to the allocation or distribution of funds, including financial aid or other trusteed funds.
The proposed amendment affects Texas Education Code, Chapter 56, Subchapter P.
§22.254.Definitions.
In addition to the words and terms defined in §22.1 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:
(1) Certificate Program--For purposes of the Texas Educational Opportunity Grant Program, Level 1 and Level 2 certificates, Occupational Skills Awards, and other credentials of value as defined in §13.472 of this chapter (relating to Definitions). These include programs offered through semester credit hours or the equivalent of semester credit hours.
(2) [(1)] Continuation Award--A
grant awarded to a person who has previously received an initial year award.
(3) Entering undergraduate--A student enrolled in the first 45 semester credit hours or their equivalent, excluding hours taken during dual enrollment in high school and courses for which the student received credit through examination.
(4) [(2)] Forecast--The FORECAST
function in Microsoft Excel.
(5) [(3)] Grant--Funds awarded
to a student through the Texas Educational Opportunity Grant Program.
(6) [(4)] Initial year award--The
grant award made in the student's first year in the Program.
(7) [(5)] Program--The Texas
Educational Opportunity Grant Program.
§22.256.Eligible Students.
(a) To receive an initial year award through the Program, a student must:
(1) be a resident of Texas;
(2) show financial need;
(3) have applied for any available financial aid assistance;
(4) be enrolled at a participating institution on at
least a half-time basis as an entering student [which is a student
enrolled in the first 30 semester credit hours or their equivalent,
excluding hours taken during dual enrollment in high school and courses
for which the student received credit through examination]; and
(5) be enrolled in an associate degree or certificate program at a participating institution.
(b) To receive a continuation award through the Program, a student must:
(1) have previously received an initial year award through this program;
(2) show financial need;
(3) be enrolled on at least a half-time basis;
(4) be enrolled in an associate degree or certificate program at an eligible institution; and
(5) make satisfactory academic progress towards an associate degree or certificate, as defined in §22.257 of this subchapter (relating to Satisfactory Academic Progress).
§22.257.Satisfactory Academic Progress.
(a) Eligibility at End of Initial Year Award. Students who complete their first year receiving a grant in compliance with their institutions' financial aid academic progress requirements are eligible to receive continuation awards in the following year if they meet the other requirements listed in §22.256 of this subchapter (relating to Eligible Students).
(b) Eligibility at End of a Continuation Award. Students shall, unless granted a hardship provision in accordance with §22.259 of this subchapter (relating to Hardship Provisions), as of the end of an academic year in which the student receives a continuation award:
(1) complete at least 75% of the semester credit hours or their equivalent attempted in the student's most recent academic year; and
(2) maintain an overall cumulative grade point average of at least 2.5 on a four-point scale or its equivalent.
(c) The calculation of a student's GPA is to be completed in accordance with Subchapter A of this chapter (relating to General Provisions).
(d) The completion rate calculations may be made in keeping with institutional policies.
§22.258.Discontinuation of Eligibility or Non-Eligibility.
(a) A student may not receive a grant while concurrently receiving a TEXAS Grant.
(b) A student may not receive a grant after having been granted an associate or baccalaureate degree.
(c) A student's eligibility for the program ends once a student has attempted 75 semester credit hours or the equivalent, unless the student is granted a hardship extension in accordance with §22.259 of this subchapter (relating to Hardship Provisions).
(d) A student's eligibility for the program ends four years from the start of the semester in which the student received an initial year award, unless the student is granted a hardship extension in accordance with §22.259 of this subchapter.
(e) A person is not eligible to receive a grant if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of any other jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has:
(1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or
(2) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a grant.
(f) Other than as described in §22.259 of this
subchapter, if a person fails to meet any of the requirements for
receiving a continuation award as outlined in §22.256 of this
subchapter (relating to Eligible Students) after completion of any
year, the person may not receive a grant until after completing a
semester of at least half-time coursework while not receiving a grant
and meeting [meets] all the requirements of §22.256
of this subchapter as of the end of that semester.
§22.259.Hardship Provisions.
(a) In the event of a hardship or for other good cause, the Program Officer at a participating institution may allow an otherwise eligible student to receive a grant;
(1) while maintaining a grade point average below the required level, as defined in §22.257 of this subchapter (relating to Satisfactory Academic Progress);
(2) while maintaining a completion rate below the required level, as defined in §22.257 of this subchapter;
(3) while enrolled less than half time;
(4) while enrolled in semester credit hours in excess of the attempted hour limit, as defined in §22.258(c) of this subchapter (relating to Discontinuation of Eligibility and Non-Eligibility), though the total number of semester credit hours paid for, at least in part, with program funding may not exceed 75 or its equivalent; or
(5) while enrolled beyond the time limit restrictions, as defined in §22.258(d) of this subchapter.
(b) Hardship conditions may include, but are not limited to:
(1) a showing of a severe illness or other debilitating condition that may affect the student's academic performance;
(2) an indication that the student is responsible for the care of a sick, injured, or needy person and that the student's provision of care may affect his or her academic performance; or
(3) the requirement of fewer than six semester credit hours or their equivalent to complete one's degree or certificate plan.
(c) Documentation of the hardship circumstances approved for a student to receive a grant must be kept in the student's files, and the institution must identify students approved for a grant based on a hardship to the Coordinating Board, so that it may appropriately monitor each student's period of eligibility.
(d) Each institution shall adopt a hardship policy under this section and have the policy available in writing in the financial aid office for public review upon request.
§22.261.Grant Amounts [and Adjustments].
(a) Funding. Funds awarded through this program may not exceed the amount of appropriations, grants, and other funds that are available for this use.
(b) Grant Amounts.
(1) The amount of a grant may not be reduced by any gift aid for which the person receiving the grant is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the student's cost of attendance. However, no student's grant shall be greater than the amount of the student's financial need.
(2) [The] Board staff shall determine
and announce the maximum grant amount in a given state fiscal year
by January 31 of the prior fiscal year. The calculation of the maximum grant amount for a semester will be based on the
average statewide amount of tuition and required fees at eligible
institutions that a [an in-district] resident
student enrolled full-time in an associate degree or certificate program measured in semester credit hours would be charged for that
semester (Texas Education Code, §56.407).
(3) In determining the maximum grant
amount, the average amount of tuition and required fees is determined
by institution type (public junior colleges, public state colleges,
and public technical institutes) [for an in-district resident
student enrolled full-time in an associate degree or certificate program]
, utilizing the most recent Integrated Fiscal Reporting System reports
to project the value.
(c) An approved institution may not charge a person receiving a grant through that institution an amount of tuition and required fees in excess of the grant received by the person. Nor may it deny admission to or enrollment in the institution based on a person's eligibility to receive or actual receipt of a grant. If an institution's tuition and fee charges exceed the grant, it may address the shortfall in one of two ways:
(1) it may use other available sources of financial
aid [, other than a loan or Pell grant] to cover any difference
in the amount of the grant and the student's actual amount of tuition
and required fees at the institution, provided that:
(A) for grants offered for semesters prior to the 2024 fall semester, the other available sources of financial aid do not include a loan or Pell Grant; and
(B) for grants offered beginning with the 2024 fall semester, the other available sources of financial aid do not include a loan; or
(2) it may waive the excess charges for the student. However, if a waiver is used, the institution may not report the recipient's tuition and fees in a way that would increase the general revenue appropriations to the institution.
(d) Grant calculations [Adjustments
to grants and late disbursements] are to be completed in accordance
with Subchapter A of this chapter (relating to General Provisions).
§22.262.Allocation [and Disbursement]
of Funds - Public Junior Colleges.
(a) [Allocations for public junior colleges for
Fiscal Year 2016 and Later.] Allocations are to be determined
on an annual basis as follows:
(1) The allocation base for each eligible institution will be the number of students it reported in the most recent certified Financial Aid Database submission who met the following criteria:
(A) were classified as Texas residents,
(B) were enrolled as undergraduates in an associate degree or certificate program half-time, three-quarter time or full-time, and
(C) have a 9-month Expected Family Contribution, calculated using federal methodology, less than or equal to the Federal Pell Grant eligibility Expected Family Contribution cap for the year reported in the Financial Aid Database submission.
(2) Each institution's percent of the available funds will equal its percent of the state-wide need as determined by multiplying each institution's enrollments by the respective award maximums of students who meet the criteria in subsection (a)(1) of this section.
(3) Allocations [Beginning with allocations
for Fiscal Year 2020, allocations] for both years of the state
appropriations' biennium will be completed at the same time. The three
most recent certified Financial Aid Database submissions will be utilized
to forecast the data utilized in the calculation of the allocation
for the second year of the biennium. Institutions will receive notification
of their allocations for both years of the biennium at the same time.
(4) Allocation calculations will be shared with all participating institutions for comment and verification prior to final posting and the institutions will be given 10 working days, beginning the day of the notice's distribution and excluding State holidays, to confirm that the allocation report accurately reflects the data they submitted or to advise Board staff of any inaccuracies.
[(b) Disbursement of Funds to Institutions.
As requested by institutions throughout the academic year, the Board
shall forward to each participating institution a portion of its allocation
of funds for timely disbursement to students. Institutions will have
until the close of business on August 1, or the first working day
thereafter if it falls on a weekend or holiday, to encumber program
funds from their allocation. After that date, institutions lose claim
to any funds in the current fiscal year not yet drawn down from the
Board for timely disbursement to students. Funds released in this
manner in the first year of the biennium become available to the institution
for use in the second year of the biennium. Funds released in this
manner in the second year of the biennium become available to the
Board for utilization in grant processing. Should these unspent funds
result in additional funding available for the next biennium's program,
revised allocations, calculated according to the allocation methodology
outlined in this rule, will be issued to participating institutions
during the fall semester.]
(b) [(c)] Reductions in Funding.
(1) If annual funding for the program is reduced after the start of a fiscal year, the Board may take steps to help distribute the impact of reduced funding across all participating institutions by an across-the-board percentage decrease in all institutions' allocations.
(2) If annual funding is reduced prior to the start of a fiscal year, the Board may recalculate the allocations according to the allocation methodology outlined in this rule for the affected fiscal year based on available dollars.
§22.264.Allocation [and Disbursement]
of Funds - Public Technical and State Colleges.
(a) [Allocations for public technical colleges
and public state colleges for Fiscal Year 2016 and Later.] Allocations
are to be determined on an annual basis as follows:
(1) The allocation base for each eligible institution will be the number of students it reported in the most recent certified Financial Aid Database submission who met the following criteria:
(A) were classified as Texas residents;
(B) were enrolled as undergraduates in an associate degree or certificate program half-time, three-quarter time, or full-time; and
(C) have a 9-month Expected Family Contribution, calculated using federal methodology, less than or equal to the Federal Pell Grant eligibility Expected Family Contribution cap for the year reported in the Financial Aid Database submission.
(2) Each institution's percent of the available funds will equal its percent of the state-wide need as determined by multiplying each institution's enrollments by the respective award maximums of students who meet the criteria in subsection paragraph (1) of this subsection.
(3) Allocations [Beginning with allocations
for Fiscal Year 2020, allocations] for both years of the state
appropriations' biennium will be completed at the same time. The three
most recent certified Financial Aid Database submissions will be utilized
to forecast the data utilized in the calculation of the allocation
for the second year of the biennium. Institutions will receive notification
of their allocations for both years of the biennium at the same time.
(4) Verification of Data. Allocation calculations will be shared with all participating institutions for comment and verification prior to final posting, and the institutions will be given 10 working days, beginning the day of the notice's distribution and excluding State holidays, to confirm that the allocation report accurately reflects the data they submitted or to advise Board staff of any inaccuracies.
[(b) Disbursement of Funds to Institutions.
As requested by institutions throughout the academic year, the Board
shall forward to each participating institution a portion of its allocation
of funds for timely disbursement to students. Institutions will have
until the close of business on August 1, or the first working day
thereafter if it falls on a weekend or holiday, to encumber program
funds from their allocation. After that date, institutions lose claim
to any funds in the current fiscal year not yet drawn down from the
Board for timely disbursement to students. Funds released in this
manner in the first year of the biennium become available to the institution
for use in the second year of the biennium. Funds released in this
manner in the second year of the biennium become available to the
Board for utilization in grant processing. Should these unspent funds
result in additional funding available for the next biennium's program,
revised allocations, calculated according to the allocation methodology
outlined in this rule, will be issued to participating institutions
during the fall semester.]
(b) [(c)] Reductions in Funding.
(1) If annual funding for the program is reduced after the start of a fiscal year, the Board may take steps to help distribute the impact of reduced funding across all participating institutions by an across-the-board percentage decrease in all institutions' allocations.
(2) If annual funding is reduced prior to the start of a fiscal year, the Board may recalculate the allocations according to the allocation methodology outlined in this rule for the affected fiscal year based on available dollars.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303643
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6365
The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter N, §§22.265 - 22.277, concerning the establishment of the Texas Leadership Scholars Program, a merit-based scholarship and leadership opportunity program for high-achieving students with financial need. Specifically, this new subchapter provides information necessary for the implementation and administration of the Program.
Texas Education Code (TEC), Chapter 61, Subchapter T-3, requires the Coordinating Board to adopt rules for the administration of the program, including rules providing for the amount and permissible uses of a scholarship awarded under the program. The legislation only specified student eligibility, conditions for continued participation, and authorization for institutional agreements. The new rules provide clarity and guidance to students, participating institutions, and Coordinating Board staff for the program's implementation.
Specifically, these new sections will outline the authority and purpose, definitions, institutional eligibility requirements, student eligibility requirements, academic achievement support, leadership development opportunities, hardship provisions, scholarship amounts, allocation and disbursement of funds, which are necessary to administer the Texas Leadership Scholars Program.
Rule 22.265 indicates the specific sections of the TEC that provide the agency with authority to issue these rules, as well as the purpose of the Texas Leadership Scholars Program.
Rule 22.266 provides definitions for words and terms within Texas Leadership Scholars rules. The definitions provide clarity for words and terms that are integral to the understanding and administration of the Texas Leadership Scholars rules.
Rule 22.267 outlines the requirements institutions must fulfill to participate in the Texas Leadership Scholars program. The requirements are proposed to: (a) clarify the type of institution eligible to participate, and (b) provide rules specific to requirements the Coordinating Board is proposing to ensure effective administration of the Texas Leadership Scholars Program, such as the requirement that each participating institution enter into an agreement with the Coordinating Board. This section is proposed based on TEC, Section 61.897, which directs the Coordinating Board to adopt rules as necessary to implement the Texas Leadership Scholars Program.
Rule 22.268 outlines the eligibility requirements students must meet to allow an institution to select a student as a scholar under the Texas Leadership Scholars Program. The requirements are proposed to: (a) gather in one place the statutory requirements for the Texas Leadership Scholars Program, including the requirements related to a student's financial need; (b) clarify aspects of the statutory requirements, including the requirements related to the student graduating with a distinguished level of achievement under the Foundation School Program, and qualified either for automatic admission, be nominated, or graduate with a Texas First Diploma; and (c) clarify aspects of the statutory requirements related to student's eligibility to continue in the program, such as making satisfactory academic progress and participation in programmatic requirements. This section is proposed based on TEC, Section 61.897, which directs the Coordinating Board to adopt rules as necessary to implement the Texas Leadership Scholars Program.
Rule 22.269 outlines the satisfactory academic progress requirements related to a student's eligibility to continue in the program. This section is proposed based on TEC, Section 61.897, which directs the Coordinating Board to adopt rules as necessary to implement the Texas Leadership Scholars Program.
Rule 22.270 outlines the guidelines for scholars to transfer to another eligible institution. The requirements are proposed to: (a) clarify that scholars are eligible to transfer once during the student's eligibility period; and (b) clarify that the Coordinating Board will make sure that the scholar will receive the scholarship funds during their eligibility period. This section is proposed based on TEC, Section 61.897, which directs the Coordinating Board to adopt rules as necessary to implement the Texas Leadership Scholars Program.
Rule 22.271 outlines the process and the criteria in which institutions will select students to receive the Texas Leadership Scholars scholarship. The requirements are proposed to: (a) clarify that students will indicate interest through an application; and (b) that institutions will make selections based on a student's eligibility, evidence of leadership, service, and academic achievement. This section is proposed based on TEC, Section 61.897, which directs the Coordinating Board to adopt rules as necessary to implement the Texas Leadership Scholars Program.
Rule 22.272 and §22.273 outline the requirements that institutions must fulfill to provide programmatic experiences for scholars in the program. The requirements are proposed to: (a) clarify the types of academic achievement and leadership development programmatic elements institutions must provide for scholars; and (b) clarify if the institution is unable to provide the listed programmatic elements, the process for approval for alternative programming. This section is proposed based on TEC, Section 61.897, which directs the Coordinating Board to adopt rules as necessary to implement the Texas Leadership Scholars Program.
Rule 22.274 outlines the requirements that institutions must follow to determine when scholars are no longer eligible to participate in the Texas Leadership Scholars Program. The requirements are proposed to: (a) gather in one place the statutory requirements for the Texas Leadership Scholars Program, including the requirements related to a student's enrollment and the transfer policy; and (b) clarify the aspects of the statutory requirements, such as the student being enrolled in a baccalaureate degree and receiving the scholarship for no more than four years.
Rule 22.275 outlines the criteria for an institution to allow an eligible scholar a hardship provision under the Texas Leadership Scholars Program. This section provides institutions with the provisions for hardship consideration and defines the conditions the hardship may include such as severe illness. This section outlines the process in which the institution must document the circumstances of the hardship.
Rule 22.276 outlines the scholarship amounts and how the Coordinating Board will allocate the funds to institutions. The proposed rule provides the process in which the number of initial scholarships is determined, the number of scholarships for returning scholars, and the annual allocation formula for each institution.
Rule 22.277 establishes the mechanisms by which the Coordinating Board will disburse the funds to each participating institutions to support their participation in the Texas Leadership Scholars Program, as well as the institutions' participation in the process. The proposed rule provides the frequency of disbursements to each institution and the way the institutions will have the opportunity to review the calculation for accuracy. This section is proposed based on TEC, Section 61.897, which directs the Coordinating Board to adopt rules as necessary to implement the Texas Leadership Scholars Program.
Dr. Jennielle Strother, Assistant Commissioner for Student Success, has determined that for each of the first five years the sections are in effect the rules do not impose additional costs of compliance beyond those provided in statute. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rules. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rules.
There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.
Dr. Jennielle Strother has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the sections will be the increase in number of high-achieving, economically disadvantaged students who pursue higher education opportunities they may not have been able to afford or access otherwise. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. Participation in the Texas Leadership Scholars program is voluntary.
Government Growth Impact Statement
(1) the rules will create a government program;
(2) implementation of the rules will not require the creation or elimination of employee positions;
(3) implementation of the rules may require an increase or decrease in future legislative appropriations to the agency;
(4) the rules will not require an increase or decrease in fees paid to the agency;
(5) the rules will create a new rule;
(6) the rules will not limit an existing rule;
(7) the rules will change the number of individuals subject to the rule; and
(8) the rules will not affect this state's economy.
Comments on the proposal may be submitted to Dr. Jennielle Strother, Assistant Commissioner for Student Success, P.O. Box 12788, Austin, Texas 78711-2788, or via email at CRI@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.
The new sections are proposed under Texas Education Code, Section 61.897, which provides the Coordinating Board with the authority to adopt rules as necessary to implement the Texas Leadership Scholars Program.
The proposed new sections affect Texas Education Code, Sections 61.891 - 61.897.
§22.265.Authority and Purpose.
(a) Authority for this subchapter is provided in Texas Education Code, chapter 61, subchapter T-3, §§61.891 - 61.897, Texas Leadership Scholars Program.
(b) The purpose of this program is to provide merit scholarships coupled with academic achievement support and leadership development to assist eligible students to enroll in and graduate from public institutions of higher education in this state.
§22.266.Definitions.
In addition to the words and terms defined in §22.1 of this chapter (relating to Definitions), the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. In the event of conflict, the definitions in this subchapter shall control.
(1) Administrator--The institution of higher education contracted by the Texas Higher Education Coordinating Board to administer the Program.
(2) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board.
(3) Commissioner--The Commissioner of Higher Education.
(4) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board and its staff.
(5) Eligible Institution--A general academic teaching institution as defined by section 61.003(3) of the Texas Education Code.
(6) Mentoring--A program in which a student is paired with or serves as a mentor.
(7) Program--The Texas Leadership Scholars Program.
(8) Scholar--An eligible student who applied and was selected to participate in the Texas Leadership Scholars Program by a participating institution.
(9) Scholarship--A scholarship awarded to a scholar under the Program.
§22.267.Eligible Institutions.
(a) Responsibilities. A participating eligible institution is required to:
(1) Abide by the General Provisions outlined in subchapter A of this chapter (relating to General Provisions);
(2) Create and comply with policies that prohibit discrimination against or deny participation in or the benefits of the Program described in this subchapter on the basis; of race, color, national origin, gender, religion, age, or disability;
(3) Comply with the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions or employment;
(4) Ensure each Scholar receives sufficient financial aid from federal, state, and institutional grants and scholarships other than the scholarship awarded under the program to cover full tuition and fees for 4 years at no cost to the Scholar so long as the Scholar maintains eligibility; and
(5) Provide all reports regarding the program to the Coordinating Board or Administrator.
(b) Approval.
(1) Agreement. Each eligible institution must enter into an agreement with the Coordinating Board, the terms of which shall be prescribed by the Commissioner, prior to receiving reimbursement through the program.
(2) Approval Deadline.
(A) Each eligible institution must indicate an intent to participate in the program by emailing the Administrator by June 15 and enter into an agreement with the Coordinating Board by August 31 for qualified students enrolled in that institution to be eligible to receive scholarships in the following biennium.
(B) Notwithstanding subparagraph (A), for the 2023-24 academic year, an eligible institution may indicate intent to participate in the program by the administrative deadline established by the Commissioner.
§22.268.Eligible Students.
(a) To receive an initial award through the Program, a student must:
(1) Submit an application for scholarship consideration through the Coordinating Board or Administrator;
(2) Have Texas resident status, as determined by chapter 21, subchapter B of this title (relating to Determination of Resident Status);
(3) Graduate from a Texas public high school, including an open-enrollment charter school;
(4) Be enrolled full-time in a baccalaureate degree program at a participating institution the fall semester immediately following high school graduation;
(5) Have applied for any available financial aid assistance;
(6) Be TEXAS Grant eligible, as determined by subchapter L, §22.228 of this chapter (relating to Eligible Students) and meet one of the following criteria under subparagraph (A) or (B):
(A) Graduate with a distinguished level of achievement under the foundation high school program, and:
(i) Graduate in the top 10% of the student's high school graduating class; or
(ii) Submit with the application a nomination letter from the student's high school principal or counselor; or
(B) Be eligible to graduate with a Texas First Diploma as set out in chapter 21, subchapter D of this title (relating to Texas First Early High School Completion Program).
(b) To receive a continuation award through the Program, a scholar must:
(1) Have previously received an initial year award through this Program;
(2) Be enrolled full-time in a baccalaureate degree program where the scholar received initial award or at another participating eligible institution to which the student has transferred during the period of eligibility;
(3) Make satisfactory academic progress toward the baccalaureate degree at the eligible institution, as defined in §22.269 of this subchapter (relating to Satisfactory Academic Progress) unless the scholar is granted a hardship extension in accordance with §22.273 of this subchapter (relating to Hardship Provision);
(4) Have completed or is on target to complete programmatic requirements set forth in §22.271 and §22.272 of this subchapter (relating to Scholarship Selection Criteria and Academic Achievement Support, respectively) as reported by participating institution.
§22.269.Satisfactory Academic Progress.
To qualify for a scholarship, each recipient of the scholarship shall meet the satisfactory academic progress requirements as utilized by the financial aid office of the eligible institution to determine eligibility for federal financial aid programs.
§22.270.Transfer.
A Scholar may transfer to another eligible institution not more than once during the student's period of eligibility. The Coordinating Board shall ensure that a participating eligible institution who enrolls a Scholar receives the scholarship funds for that student's remaining period of eligibility.
§22.271.Scholarship Selection Criteria.
The Coordinating Board or Administrator will receive scholarship applications and will forward qualified applications to each participating eligible institution of interest and the participating eligible institutions shall make selections based on a student's:
(1) Scholarship interest through the application;
(2) Ranking of the participating eligible institution as a top choice;
(3) Eligibility criteria set forth in §22.268 of this subchapter (relating to Eligible Students);
(4) Evidence of leadership and service within their high school and community; and
(5) Demonstrated academic achievement and ability.
§22.272.Academic Achievement Support.
(a) Each participating eligible institution shall ensure that each Scholar's experience includes, at a minimum, the following academic programmatic elements:
(1) Program cohort learning communities;
(2) Mentoring, research, and internship opportunities;
(3) Networking with state government, business, and civic leaders; and
(4) Statewide cohort learning institutes or seminars.
(b) The Coordinating Board may enter into agreements with participating eligible institutions to provide research-based support for scholars to make satisfactory academic progress and graduate on time at participating institutions.
(c) If a participating eligible institution is unable to include a scholar or scholars in subsection (a), academic programmatic elements, they must provide alternative programming that has been approved by the Commissioner to aid the scholar in making academic progress.
§22.273.Leadership Development.
(a) Each participating eligible institution must ensure that a Scholar's experience includes, at a minimum, the following cohort-based leadership development elements:
(1) Leadership development programming; and
(2) Scholar summer programming which may be met through participating in a leadership conference, study abroad, or internship opportunities.
(b) The Coordinating Board may enter into agreements with participating eligible institutions to provide leadership development opportunities for scholars.
(c) If a participating eligible institution is unable to include a scholar or scholars in subsection (a), leadership development requirements, they must provide alternative programming that has been approved by the Commissioner to meet similar outcomes.
§22.274.Discontinuation of Eligibility or Non-Eligibility.
(a) A student who has already earned a baccalaureate degree at any public or private post-secondary institution is ineligible to participate in the program.
(b) Unless granted a hardship postponement in accordance with §22.275 of this subchapter (relating to Hardship Provisions), a student's eligibility for a grant ends:
(1) Five years from the start of the semester in which the student enrolls in the baccalaureate degree program at the eligible institution;
(2) Once the student has earned a cumulative total of 150 credit hours, including transferred hours, as verified by the student's institution; or
(3) If a Scholar transfers to another institution, except as authorized under §22.270 of this subchapter (relating to Transfer).
(c) Except as provided in §22.275 of this subchapter, a student may not receive a scholarship more than four years from the start of the semester in which the student enrolls in the baccalaureate degree program at the participating eligible institution.
§22.275.Hardship Provisions.
(a) In the event of a hardship or for other good cause as determined by the eligible institution, the Program Officer at the institution may allow an otherwise eligible Scholar to receive a scholarship:
(1) While enrolled in fewer semester credit hours than required in §22.268 of this subchapter (relating to Eligible Students);
(2) If the Scholar fails to meet the satisfactory academic progress requirements of §22.268 of this subchapter; or
(3) If the scholar requires an extension of the limits found in §22.274(b) of this subchapter (relating to Discontinuation of Eligibility or Non-Eligibility) to complete his or her degree.
(b) Hardship conditions may include:
(1) Documentation of a serious health/condition that makes the Scholar unable to attend school or complete academic study;
(2) Documentation that the Scholar is responsible for the care of a child, spouse, or parent who has a serious health condition, sick, injured, or and that the scholar's provision of care may affect his or her academic performance;
(3) The birth of a child or placement of a child with the student for adoption or foster care; or
(4) Scholar needing fewer than twelve semester credit hours to complete Scholar's degree plan.
(c) A hardship under this section may extend for a period of no longer than one year.
(d) Documentation of the hardship circumstances approved for a Scholar to receive a scholarship must be kept in the Scholar's files, and the institution must identify Scholars approved for a scholarship based on a hardship to the Coordinating Board, so that it may appropriately monitor each Scholar's period of eligibility.
(e) Eligible institutions shall adopt a hardship policy under this section, share such policy with Scholars and have the policy available in the financial aid office for public review upon request.
§22.276.Scholarship Amounts and Allocation of Funds.
(a) Funding. The Coordinating Board may not award through this program an amount that exceeds the amount of state appropriations and other funds that are available for this use.
(b) Scholarship Amounts.
(1) The amount of the scholarship in an academic year shall be the average cost of housing and food at the participating institution as approved by the Coordinating Board; and
(2) An institution may not reduce the amount of a scholarship by any gift aid for which the Scholar receiving the scholarship is eligible unless the total amount of a Scholar's scholarship plus any gift aid received exceeds the Scholar's cost of attendance.
(c) Allocation of Funds.
(1) The Commissioner shall determine and announce the number of initial scholarships available to each participating institution by January 31 of the prior fiscal year set forth in §22.268(a) of this subchapter (relating to Eligible Students);
(2) The number of scholarships for returning scholars will be the number of scholars eligible to receive the scholarship set forth in §22.268(b) of this subchapter; and
(3) Each participating eligible institution will receive an annual allocation equal to the number of scholarships times the average housing and food approved by the Commissioner. This amount shall include the amount necessary to cover the scholarships of a Scholar who transferred to the institution as authorized under this subchapter.
§22.277.Disbursement of Funds.
Upon request by an institution throughout the academic year, the Coordinating Board shall forward to each participating eligible institution a portion of its allocation of funds for timely disbursement to Scholars. Each participating eligible institution shall have until the close of business on August 1, or the first working day thereafter if it falls on a weekend or holiday, to encumber program funds from their allocation. After that date, an institution may lose any funds in the current fiscal year not yet drawn down from the Coordinating Board for timely disbursement to Scholars. Funds released in this manner are deemed returned to the Coordinating Board.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 29, 2023.
TRD-202303644
Nichole Bunker-Henderson
General Counsel
Texas Higher Education Coordinating Board
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 427-6365
CHAPTER 74. CURRICULUM REQUIREMENTS
SUBCHAPTER C. OTHER PROVISIONS
The State Board of Education (SBOE) proposes an amendment to §74.27, concerning innovative courses and programs. The proposed amendment would update innovative course application and approval requirements.
BACKGROUND INFORMATION AND JUSTIFICATION: After the SBOE adopted new rules concerning graduation requirements, the previously approved experimental courses were phased out as of August 31, 1998. Following the adoption of the Texas Essential Knowledge and Skills (TEKS), school districts now submit requests for innovative course approval for courses that do not have TEKS. The process currently outlined in §74.27 provides authority for the commissioner of education to approve discipline-based courses but reserves for SBOE review and approval those courses that do not fall within any of the subject areas of the foundation or enrichment curriculum.
Each year, the Texas Education Agency (TEA) provides the opportunity for school districts and other entities to submit applications for proposed innovative courses. The board last amended §74.27 in November 2022 to require that an applicant for an innovative course pilot the proposed course in a Texas school prior to seeking approval from the SBOE. At the April 2023 SBOE meeting, TEA staff provided an overview of the innovative course approval process, including key data related to historical implementation of innovative courses. At the June 2023 meeting, the SBOE Committee on Instruction discussed possible amendments to §74.27.
The proposed amendment to §74.27 would shift from the commissioner to the SBOE the authority to approve innovative courses that fall under the foundation or enrichment curriculum, specify the number of years for initial approval and renewal of innovative courses, and exempt career and technical education courses that support an approved program of study from the pilot requirement. It would also require TEA to conduct a periodic review of all approved innovative courses and identify courses for possible sunset in accordance with specific criteria.
The SBOE approved the proposed amendment for first reading and filing authorization at its September 1, 2023, meeting.
FISCAL IMPACT: Monica Martinez, associate commissioner for standards and programs, has determined that for the first five years the proposal is in effect, there are no additional costs to state or local government, including school districts and open-enrollment charter schools, required to comply with the proposal.
LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022.
SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis specified in Texas Government Code, §2006.002, is required.
COST INCREASE TO REGULATED PERSONS: The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.
TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.
GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would expand an existing regulation by modifying the requirements for state approval of innovative courses and shifting from the commissioner to the SBOE the authority to approve innovative courses that fall under the foundation or enrichment curriculum.
The proposed rulemaking would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not limit or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.
PUBLIC BENEFIT AND COST TO PERSONS: Ms. Martinez has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be providing districts and entities that submit applications for innovative courses clearer guidance regarding expectations for innovative courses. There is no anticipated economic cost to persons who are required to comply with the proposal.
DATA AND REPORTING IMPACT: The proposal would have no new data or reporting impact.
PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: TEA has determined that the proposal would not require a written report or other paperwork to be completed by a principal or classroom teacher.
PUBLIC COMMENTS: The public comment period on the proposal begins October 13, 2023, and ends at 5:00 p.m. on November 13, 2023. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/about-tea/laws-and-rules/sboe-rules-tac/proposed-state-board-of-education-rules. The SBOE will take registered oral and written comments on the proposal at the appropriate committee meeting in November 2023 in accordance with the SBOE board operating policies and procedures. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on October 13, 2023.
STATUTORY AUTHORITY. The amendment is proposed under Texas Education Code (TEC), §28.002(f), which authorizes local school districts to offer courses in addition to those in the required curriculum for local credit and requires the State Board of Education to be flexible in approving a course for credit for high school graduation.
CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §28.002(f).
§74.27.Innovative Courses and Programs.
(a) A school district may offer innovative courses to enable students to master knowledge, skills, and competencies not included in the essential knowledge and skills of the required curriculum.
(1) The State Board of Education (SBOE) may approve any course that does not fall within any of the subject areas listed in the foundation and enrichment curricula when the applying school district or organization demonstrates that the proposed course is academically rigorous and addresses documented student needs.
[(2) The commissioner of education may approve a discipline-based course in the foundation or enrichment curriculum when the applying school district or organization demonstrates that the proposed course is academically challenging and addresses documented student needs.]
(2) [(3)] Applications shall not be approved if the proposed course significantly duplicates the content of a Texas Essential Knowledge and Skills (TEKS)-based course or can reasonably be taught within an existing TEKS-based course.
(3) [(4)] To request approval from the SBOE or the commissioner, the applying school district or organization must submit a request for approval at least six months
before planned implementation that includes:
(A) a description of the course and its essential knowledge and skills;
(B) the rationale and justification for the request in terms of student need;
(C) data that demonstrates successful piloting of the course in Texas;
(D) a description of activities, major resources, and materials to be used;
(E) the methods of evaluating student outcomes;
(F) the qualifications of the teacher;
(G) any training required in order to teach the course and any associated costs; and
(H) the amount of credit requested.
(4) [(5)] To request approval
from the commissioner for a career and technical education innovative
course, the applying school district or organization must submit with
its request for approval evidence that the course is aligned with
state and/or regional labor market data.
(5) [(6)] To request approval
of a new innovative course, the applying school district or organization
must submit with its request for approval evidence that the course
has been successfully piloted in its entirety in at least one school
in the state of Texas.
(6) The requirements of paragraphs (3)(C) and (5) of this subsection do not apply to the consideration of a course developed to support a program of study in career and technical education.
(7) Newly approved innovative courses shall be approved for a period of three years, and courses approved for renewal shall be approved for a period of five years.
(8) [(7)] With the approval of
the local board of trustees, a school district may offer, without changes
or deletions to content [modifications], any state-approved
innovative course.
(9) Texas Education Agency shall review all approved innovative courses once every two years and provide for consideration for sunset a list of innovative courses that meet the following criteria:
(A) approved as an innovative course for at least three years;
(B) two consecutive years of zero enrollment;
(C) average enrollment of less than 100 students statewide;
(D) available at an average of fewer than 20 districts or charter schools statewide;
(E) duplicative of another innovative or TEKS-based course; or
(F) approved for implementation as a TEKS-based course.
(b) An ethnic studies course that has been approved
by the SBOE [commissioner] as an innovative
course shall be considered by [presented to]
the SBOE at a subsequent meeting [for discussion and
consideration] for inclusion in the TEKS.
(1) Only comprehensive ethnic studies courses in Native
American studies, Latino studies, African American studies, and/or
Asian Pacific Islander studies, inclusive of history, government,
economics, civic engagement, culture, and science and technology,
shall be considered by [presented to] the SBOE
[for consideration].
(2) The chair of the Committee on Instruction, in accordance
with SBOE Operating Rule 2.5(b), shall collaborate with the board
chair to place the item on the next available Committee on Instruction
agenda following SBOE [commissioner] approval
of the innovative course.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 25, 2023.
TRD-202303535
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 475-1497
SUBCHAPTER KK. COMMISSIONER'S RULES CONCERNING COMPLIANCE INVESTIGATIONS IN CONNECTION WITH STATE-FUNDED EDUCATION PROGRAM GRANTS
The Texas Education Agency (TEA) proposes an amendment to §102.1401, concerning compliance investigations in connection with state-funded education program grants. The proposed amendment would update the term "special accreditation investigation" to "special investigation" to align with statute.
BACKGROUND INFORMATION AND JUSTIFICATION: Section 102.1401 outlines the framework for compliance investigations, corrective actions, and sanctions TEA may initiate for recipients of state education program grant funds to ensure taxpayer dollars are being spent appropriately and prevent fraud, waste, and abuse. The rule requires cooperation by state grant recipients, including the submission of required documentation and information, with ongoing compliance investigations. It also indirectly requires, via compliance investigations, that school districts and charter schools maintain documentation of compliance with existing state grant requirements as prescribed by TEA through requests for application for state grants.
The proposed amendment to §102.1401(a)(1) would change the term "special accreditation investigation" to "special investigation" to align with terminology used in Texas Education Code, §39.003 and §39.004.
FISCAL IMPACT: Ashley Jernigan, associate commissioner for compliance and investigations, has determined that for the first five-year period the proposal is in effect, there are no additional costs to state or local government, including school districts and open-enrollment charter schools, required to comply with the proposal.
LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022.
SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.
COST INCREASE TO REGULATED PERSONS: The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.
TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.
GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not expand, limit, or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.
PUBLIC BENEFIT AND COST TO PERSONS: Ms. Jernigan has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be the alignment of terminology with statute. There is no anticipated economic cost to persons who are required to comply with the proposal.
DATA AND REPORTING IMPACT: The proposal would have no data and reporting impact.
PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: TEA has determined that the proposal would not require a written report or other paperwork to be completed by a principal or classroom teacher.
PUBLIC COMMENTS: The public comment period on the proposal begins October 13, 2023, and ends November 13, 2023. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on October 13, 2023. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/About_TEA/Laws_and_Rules/Commissioner_Rules_(TAC)/Proposed_Commissioner_of_Education_Rules/.
STATUTORY AUTHORITY. The amendment is proposed under Texas Education Code (TEC), §7.028(a)(2), which authorizes Texas Education Agency to monitor compliance with state grant requirements; and TEC, §39.056(a), which authorizes the commissioner to direct the agency to conduct monitoring reviews and random on-site visits of a school district or charter school as authorized by TEC, §7.028.
CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §7.028 and §39.056.
§102.1401.Compliance Investigations.
(a) The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.
(1) Compliance investigation--An investigation by the
Texas Education Agency (TEA) of a state education grant recipient
to determine compliance with the statutory or rule requirements of
a state education program. A compliance investigation is not a special
[accreditation] investigation subject to the provisions
of Texas Education Code (TEC), §39.003 and §39.004.
(2) Corrective action--An action required by the TEA, after issuance of a final compliance investigation report, of a state education grant recipient to remove an Out-of-Compliance Status, which may include, but is not limited to, the following:
(A) refunding of a portion of grant funds by the state education grant recipient to the TEA in an amount determined by the TEA to the extent the state education grant recipient failed to meet the requirements of a state education grant provision; and
(B) addressing the state education grant recipient's failure to meet the requirements of a state education grant provision.
(3) Out-of-Compliance Status--A status determined by the TEA in a final compliance investigation as described in subsection (g) of this section that a state education grant recipient has not met the requirements of an applicable state education grant provision or as provided in subsection (e) of this section.
(4) State education grant--A grant of funds authorized by the State of Texas to implement a state education program.
(5) State education grant recipient--An entity that receives state education grant funds to implement a state education program.
(6) State education program--A program authorized and funded by the State of Texas to facilitate the education of children.
(b) The TEA may initiate a compliance investigation at its discretion or upon receipt of a complaint from a person or entity other than the TEA.
(c) The TEA may undertake a compliance investigation on site, as a desk review, or as a combination of both.
(d) The TEA shall provide written notice to a state education grant recipient of an impending compliance investigation.
(e) The refusal of a state education grant recipient to cooperate with a compliance investigation may result in the assignment of an Out-of-Compliance Status by the TEA to the state education grant recipient. An Out-of-Compliance Status assigned due to lack of cooperation with a compliance investigation may be removed at the TEA's discretion upon its determination that a state education grant recipient has provided the information the TEA requested.
(f) Pursuant to §157.1121(6) of this title (relating to Applicability), a compliance investigation is subject to the procedures set out in Chapter 157, Subchapter EE, of this title (relating to Informal Review, Hearing Following Investigation, and Review by State Office of Administrative Hearings). A final compliance investigation report and/or corrective action is not subject to further appeal, including any appeal otherwise available under TEC, §7.057.
(g) The TEA will provide any final compliance investigation report and/or corrective action plan to the superintendent/chief executive officer and the governing board of the state education grant recipient that is the subject of such final compliance investigation report, along with any recommendations of the TEA regarding any necessary improvements or sources of aid.
(h) Upon receipt of additional information from the state education grant recipient regarding completion of its corrective action plan, the TEA will review the information. If the information demonstrates completion or substantial completion of the corrective action plan, the TEA will remove the Out-of-Compliance Status and notify the state education grant recipient of the removal of the Out-of-Compliance Status.
(i) An Out-of-Compliance Status may bar the receipt of future discretionary state education grant funds and may disqualify future discretionary state education grant applications.
(j) The commissioner may, at the commissioner's discretion, waive the effects of an Out-of-Compliance Status.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 26, 2023.
TRD-202303541
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 475-1497
The State Board of Education (SBOE) proposes new §§127.19 - 127.22, 127.275 - 127.278, concerning Texas Essential Knowledge and Skills (TEKS) for career development and career and technical education (CTE). The proposed new sections would update the TEKS to ensure the content of the courses remains current and add TEKS for two new courses in entrepreneurship to support relevant and meaningful programs of study.
BACKGROUND INFORMATION AND JUSTIFICATION: In accordance with statutory requirements that the SBOE identify by rule the essential knowledge and skills of each subject in the required curriculum, the SBOE follows a board-approved cycle to review and revise the essential knowledge and skills for each subject.
At the November 2022 meeting, the SBOE approved a timeline for the review of CTE courses for 2022-2025. Also at the meeting, the SBOE approved a specific process to be used in the review and revision of the CTE TEKS. The CTE-specific process largely follows the process for TEKS review for other subject areas but was adjusted to account for differences specific to CTE. The 2022-2025 CTE cycle identifies two reviews, beginning with the winter 2023 review of a small group of courses in career preparation and entrepreneurship. An abbreviated version of the new CTE TEKS review process was used for the winter 2023 review. The second review in the 2022-2025 CTE TEKS review cycle began in summer 2023. The complete CTE TEKS review process is being used for the summer 2023 CTE TEKS review.
Applications to serve on the winter 2023 CTE TEKS review work groups were collected by the Texas Education Agency (TEA) from November 2022 through January 2023. TEA staff provided SBOE members with batches of applications for approval to serve on a CTE work group in November 2022 and in January 2023. Work groups were convened to develop recommendations for the CTE courses in February, March, April, and July 2023.
The proposed new CTE TEKS would ensure the standards for the career preparation and entrepreneurship courses included in the winter 2023 CTE TEKS review are up to date.
The SBOE approved the proposed new sections for first reading and filing authorization at its September 1, 2023 meeting.
FISCAL IMPACT: Monica Martinez, associate commissioner for standards and programs, has determined that for the first five years the proposal is in effect (2023-2027), there are fiscal implications to the state. For fiscal year 2023, the estimated cost to TEA to reimburse committee members for travel to review and revise the CTE TEKS is $100,000. There will be implications for TEA if the state develops professional development to help teachers and administrators understand the revised TEKS.
There may be fiscal implications for school districts and charter schools to implement the proposed new TEKS, which may include the need for professional development and revisions to district-developed databases, curriculum, and scope and sequence documents. Since curriculum and instruction decisions are made at the local district level, it is difficult to estimate the fiscal impact on any given district.
LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code, §2001.022.
SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis specified in Texas Government Code, §2006.002, is required.
COST INCREASE TO REGULATED PERSONS: The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to Texas Government Code, §2001.0045.
TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under Texas Government Code, §2007.043.
GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would create new regulations by proposing new CTE TEKS required to be taught by school districts and charter schools offering the courses.
The proposed rulemaking would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not expand, limit, or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.
PUBLIC BENEFIT AND COST TO PERSONS: Ms. Martinez has determined that for each year of the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be better alignment of the TEKS and additional course options for students to support relevant and meaningful programs of study. There is no anticipated economic cost to persons who are required to comply with the proposal.
DATA AND REPORTING IMPACT: The proposal would have no data or reporting impact.
PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: TEA has determined that the proposal would not require a written report or other paperwork to be completed by a principal or classroom teacher.
PUBLIC COMMENTS: The public comment period on the proposal begins October 13, 2023, and ends at 5:00 p.m. on November 13, 2023. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/about-tea/laws-and-rules/sboe-rules-tac/proposed-state-board-of-education-rules. The SBOE will take registered oral and written comments on the proposal at the appropriate committee meeting in November 2023 in accordance with the SBOE board operating policies and procedures. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 14 calendar days after notice of the proposal has been published in the Texas Register on October 13,2023.
SUBCHAPTER B. HIGH SCHOOL
STATUTORY AUTHORITY. The new sections are proposed under Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002(a), which identifies the subjects of the required curriculum; TEC, §28.002(c), which requires the SBOE to identify by rule the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025(a), which requires the SBOE to determine by rule the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under TEC, §28.002.
CROSS REFERENCE TO STATUTE. The new sections implement Texas Education Code, §§7.102(c)(4), 28.002(a) and (c), and 28.025(a).
§127.19.Career and Technical Education Project-Based Capstone (One Credit), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. This course is recommended for students in Grades 11 and 12. Students shall be awarded one credit for successful completion of this course. Students may repeat this course with different course content for up to three credits.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) In Career and Technical Education Project-Based Capstone, students independently or collaboratively investigate real-world problems, issues, or interests. This course applies to a variety of career and technical education career clusters and programs of study.
(3) Career and Technical Education Project-Based Capstone is a course designed for students to develop and enhance essential skills while investigating real-world problems, issues, or interests. Students work independently or collaboratively with others within or across career clusters or programs of study. Students partner with mentor(s) or advisor(s) to develop a project. Students conduct research, compile findings, implement project activities appropriate to student contribution, and present their work to a relevant audience that may include industry experts. To attain academic success, students must have opportunities to learn, reinforce, apply, and transfer their knowledge and skills in a variety of settings to become productive and contributing members of society.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.
(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student investigates independently or collaboratively a problem, issue, or interest within a selected profession or across disciplines to develop an independent or a collaborative project. The student is expected to:
(A) research and select a problem, issue, or interest within a selected profession or across disciplines for a personal enrichment or career development project;
(B) develop a problem statement, thesis statement, research question, or value proposition statement;
(C) identify and select a design or research process such as engineering design process, design thinking model, scientific discovery, or other industry-standard methodology;
(D) identify and select an appropriate audience for a problem, issue, or interest;
(E) identify key factors such as cost, feasibility, or time constraints necessary for successful development and implementation of a solution or plan; and
(F) identify key resources such as financial, intellectual, physical, human, and digital resources needed for development and implementation of a plan.
(2) The student identifies and develops key partnerships related to a problem, issue, or interest under the supervision of one or more mentors or advisors. The student is expected to:
(A) identify key stakeholders;
(B) research and select appropriate mentor(s) or advisor(s); and
(C) recruit appropriate collaborators, partners, or contributors.
(3) The student determines timeline goals for project completion and appropriate benchmarks to measure progress and success of a project. The student is expected to:
(A) identify and use effective communication strategies to use with mentor(s) or advisor(s) to provide updates and status reports;
(B) research and identify key performance indicators (KPI) that demonstrate successful progress of a project; and
(C) select appropriate method(s) to benchmark measurement of KPI such as a Gantt chart.
(4) The student develops a project management timeline for deliverables. The student is expected to:
(A) define the key activities necessary for successful implementation of a project;
(B) identify deliverable dates for key activities to support completion of a project within an established timeline; and
(C) develop and execute a plan to monitor and complete key deliverables.
(5) The student creates a risk analysis for a project. The student is expected to:
(A) identify potential risks such as financial, economic, regulatory, ethical, environmental, or legal risks associated with the design and implementation of the project and the end product; and
(B) evaluate and select methods to mitigate potential risks associated with a project.
(6) The student identifies necessary approvals required for a project. The student is expected to:
(A) research and identify approval processes necessary to implement a project;
(B) prepare and present a proposal for project approval; and
(C) review feedback and revise an original proposal for a project as needed.
(7) The student implements a project that meets standards recognized within a selected profession or across disciplines. The student is expected to:
(A) complete a project plan that includes problem statement, thesis statement, research question, or value proposition statement; key partners; measurables; deliverables; risk analyses; and approvals;
(B) implement a plan for project completion;
(C) monitor and evaluate the progress of a project plan to determine whether modifications or changes are necessary;
(D) document all phases of a project plan; and
(E) report periodically on the progress of a project plan.
(8) The student demonstrates an understanding of a selected problem, issue, or interest by explaining or justifying findings to an appropriate audience for public comment or professional response. The student is expected to:
(A) identify an appropriate audience and coordinate the presentation of findings related to a selected problem, issue, or interest;
(B) present findings in a professional manner such as using concise language, engaging content, relevant media, and clear speech;
(C) evaluate feedback received from a presentation;
(D) evaluate the project's potential impact(s) on the identified problem, issue, or interest; and
(E) analyze and report on personal learning experiences such as essential skills gained, areas of personal growth, and challenges encountered throughout the project.
§127.20.Career Preparation I (Two Credits), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. This course is recommended for students in Grades 11 and 12. Recommended prerequisite: at least one Level 2 or higher career and technical education course. Students shall be awarded two credits for successful completion of this course. For this course to satisfy a Level IV requirement as part of a student's program of study, the employment experience must be related to the student's program of study.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) Career planning is a critical step and is essential to success. Applying to multiple career and technical education clusters, the career preparation courses provide students with a framework for current employment and future career opportunities to become productive and contributing members of society.
(3) Career Preparation I provides opportunities for students to participate in a work-based learning environment that incorporates continuous collaborative feedback between the employer, teacher, and student. This course combines classroom instruction with business and industry employment experiences that may be outside the student's current program of study. The goal is for students to obtain entry-level employment developing a variety of skills for obtaining and maintaining employment. Career preparation is relevant and rigorous, supports student attainment of academic standards, and effectively prepares students for college and career success.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.
(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student demonstrates professional employability skills to gain an entry-level position. The student is expected to:
(A) identify different methods to gain employment such as employer websites, job search engines, business locations, networking, and local open forums for job opportunities;
(B) identify and demonstrate essential workplace skills such as eye contact, professional greetings, punctuality, appropriate dress, and effective communication to gain employment;
(C) develop a cover letter and create a resume, curriculum vitae (CV), or portfolio;
(D) demonstrate proper interview techniques in a variety of situations;
(E) create pre-employment documents, including thank you letters, and post-employment documents, including a resignation letter with customary notice provisions; and
(F) complete appropriate employment documents, including application, offer letter, I-9 form, and W-4 form.
(2) The student develops essential skills necessary for success in the workplace. The student is expected to:
(A) identify and model appropriate hygiene, grooming, and attire for various workplaces;
(B) demonstrate professionalism by being dependable, solving problems, taking initiative, communicating effectively, listening actively, and resolving conflicts;
(C) model appropriate workplace etiquette in physical and digital environments;
(D) demonstrate accountability by working with other employees to support the organization, completing assigned tasks and taking responsibility for mistakes; and
(E) demonstrate time management, including prioritizing work to fulfill responsibilities and meeting deadlines.
(3) The student applies academic skills to the workplace. The student is expected to:
(A) apply appropriate industry-specific mathematical skills;
(B) develop and analyze a personal budget for a variety of economic situations such as part-time and full-time employment;
(C) interpret data from industry-specific tables, charts, and graphs to find solutions to problems;
(D) organize, write, and curate industry-specific documents and electronic communication using appropriate language; and
(E) interpret and calculate information included in an earnings statement, including wages, deductions, taxes, and other benefits such as tips earned.
(4) The student exemplifies appropriate interpersonal skills in the workplace. The student is expected to:
(A) explain how interpersonal skills affect human relations on the job;
(B) differentiate between characteristics of successful and non-successful working relationships;
(C) explain the importance of respecting the rights of others;
(D) explain how different personalities, experiences, and workstyles of employees can affect the workplace; and
(E) demonstrate professional verbal and nonverbal communication, including proper phone usage, body language, and interactions with customers and coworkers in person and online.
(5) The student applies ethical codes of conduct and legal responsibilities within school and the workplace. The student is expected to:
(A) research and explain workplace policies and procedures related to absence reporting, employee theft, sexual harassment, recognized holidays, workplace safety, acceptable use policy, jury duty, attendance and punctuality, drug-free workplace, and related consequences;
(B) demonstrate responsible behavior by following applicable workplace and school codes of conduct with integrity;
(C) discuss the importance of ethical behavior in the workplace such as treating others with respect, being honest, working to full potential, and developing a quality work product;
(D) summarize the importance of the Fair Labor Standards Act;
(E) describe the potential consequences of violating privacy laws related to Family Educational Rights and Privacy Act (FERPA), Health Insurance Portability and Accountability Act (HIPAA), and Children's Online Privacy Protection Rule (COPPA);
(F) research and explain the origins and legislative intent of the Civil Rights Act of 1964, Title VII, and the Education Amendments of 1972, Title IX, and the rights and responsibilities established by these laws; and
(G) research and describe laws and regulations related to a student's employment or a chosen industry or career.
(6) The student applies concepts and skills related to safety in the workplace. The student is expected to:
(A) identify and demonstrate safe working practices in the workplace;
(B) identify and illustrate solutions related to unsafe work practices;
(C) explain the importance of Occupational Safety and Health Administration regulations in the workplace; and
(D) describe physical health and mental wellness practices that influence job performance.
(7) The student evaluates personal attitudes, work habits, and skills that support job retention and advancement. The student is expected to:
(A) identify and develop effective leadership skills through participation in activities such as career and technical student organizations;
(B) identify appropriate certifications in the current employment position or desired occupational area;
(C) compare rewards and demands associated with various levels of employment in a variety of careers;
(D) investigate and compare career options by completing interest surveys, career aptitude tests, and skill inventories;
(E) generate short- and long-term Specific, Measurable, Attainable, Realistic, Time-Bound (SMART) goals for personal and career growth;
(F) research and explain methods for developing a growth mindset;
(G) summarize how to appropriately self-advocate in the workplace; and
(H) explain the impact of employee self-evaluations, management performance evaluations, and employee feedback responses on personal job growth.
(8) The student identifies skills and attributes necessary for professional success. The student is expected to:
(A) evaluate and compare career options, including salaries and benefits;
(B) describe how interests, abilities, personal priorities, and family responsibilities affect career choices;
(C) identify continuing education opportunities that enhance career advancement and promote lifelong learning;
(D) analyze the future employment outlook in an occupational area of interest;
(E) describe entrepreneurial opportunities in an occupational area of interest; and
(F) evaluate strategies for career retention and advancement in response to the changing global workforce.
§127.21.Career Preparation II (Two Credits), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. This course is recommended for students in Grade 12. Prerequisite: Career Preparation I. Students shall be awarded two credits for successful completion of this course.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) Career planning is a critical step and is essential to success. Applying to multiple career and technical education clusters, the career preparation courses provide students with a framework for current employment and future career opportunities to become productive and contributing members of society.
(3) Career Preparation II provides additional opportunities for students to develop business and industry employment experiences that may be outside the student's current program of study alongside advanced classroom instruction. The goal is to prepare students with a variety of skills to transition from job- to career-mindedness. This course provides a continuing focus on collaborative feedback between the employer, teacher, and student. Career Preparation II expands on Career Preparation I by increasing rigor, supporting student attainment of academic standards, and effectively preparing students for college and career success.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.
(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student applies and evaluates employability skills to improve the student's marketability within the workplace. The student is expected to:
(A) differentiate between a job and a career;
(B) refine an industry-specific professional portfolio or resume;
(C) identify appropriate sources for writing and obtain letters of recommendation;
(D) model proper interview skills based on a chosen career cluster; and
(E) evaluate the effectiveness of various methods to gain employment.
(2) The student demonstrates essential skills necessary for success in the workplace. The student is expected to:
(A) maintain appropriate hygiene, grooming, and attire for the workplace;
(B) model appropriate workplace etiquette in physical and digital environments;
(C) justify time-management decisions to fulfill responsibilities and meet deadlines;
(D) analyze employer expectations by reflecting on evaluations;
(E) demonstrate effective listening skills used in the workplace through appropriate interactions with customers and coworkers; and
(F) cultivate and improve professionalism by continuously being dependable, solving problems, taking initiative, communicating effectively, and listening actively.
(3) The student applies and enhances academic knowledge and skills in the workplace. The student is expected to:
(A) integrate mathematical concepts into business transactions such as counting inventory, calculating discounts, and conducting cash transactions;
(B) compare earning potential for an occupational area of interest with personal financial goals;
(C) analyze and apply data from industry-specific tables, charts, or graphs to generate solutions to problems; and
(D) analyze and synthesize information from electronic communications, including forms, reports, or summaries.
(4) The student demonstrates leadership qualities by applying work ethic, job expectations, multicultural considerations, and communication skills in the workplace. The student is expected to:
(A) identify positive interpersonal skills, including conflict resolution, effective communication, and respect for all people, and model these skills as a mentor with peers;
(B) apply effective verbal, nonverbal, written, or electronic communication skills to a variety of audiences;
(C) define personal integrity and evaluate its effects on human relations in the workplace;
(D) classify a variety of working relationships into functional and dysfunctional characteristics; and
(E) participate in leadership and career-development activities.
(5) The student models ethical codes of conduct and legal responsibilities within school and the workplace. The student is expected to:
(A) evaluate provisions of the Fair Labor Standards Act;
(B) analyze the legal consequences of violating privacy laws related to Family Educational Rights and Privacy Act (FERPA), Health Insurance Portability and Accountability Act (HIPAA), and Children's Online Privacy Protection Act (COPPA);
(C) research and describe laws governing different professions within a chosen career cluster;
(D) analyze organizational policies and procedures and ethical standards from the student's current place of employment; and
(E) interpret and evaluate the rights and responsibilities of employers and employees.
(6) The student applies concepts and skills related to safety in the workplace. The student is expected to:
(A) research and describe different types of identity theft to identify associated risks and prevention strategies;
(B) identify and evaluate consequences of breach of personal and occupational safety practices in the workplace;
(C) model safe working practices at a training station;
(D) evaluate the impact of Occupational Safety and Health Administration regulations in the workplace; and
(E) analyze how physical health and mental wellness practices influence career longevity and satisfaction within a chosen career cluster.
(7) The student models the skills that support employment retention and advancement. The student is expected to:
(A) create a personal growth plan that identifies relevant certifications, postsecondary opportunities, and technical skills required for various levels of employment based on a chosen career and describe how to obtain them;
(B) develop short- and long-term Specific, Measurable, Attainable, Realistic, Time-Bound (SMART) goals based on personal and professional growth plans;
(C) analyze the rewards and demands of career advancement;
(D) model appropriate self-advocacy in various workplace scenarios;
(E) compare current employee performance evaluations to previous evaluations to identify areas of growth and opportunities for continued development; and
(F) evaluate and compare employment advancement considerations such as salaries, benefits, and qualifications.
(8) The student analyzes postsecondary career opportunities. The student is expected to:
(A) research and compare declining and growth industries across career clusters;
(B) identify and analyze future job growth based on societal needs;
(C) analyze the skills required to be successful in emerging industries;
(D) identify continuing education opportunities to determine education and training requirements for future careers;
(E) research and evaluate entrepreneurial opportunities in an occupational area of interest; and
(F) evaluate how personal priorities such as interests, abilities, and family responsibilities may influence career choice.
§127.22.Extended Career Preparation (One Credit), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. This course is recommended for students in Grades 11 and 12. Corequisite: Career Preparation I or Career Preparation II. This course must be taken concurrently with Career Preparation I or Career Preparation II and may not be taken as a stand-alone course. Students shall be awarded one credit for successful completion of this course. A student may repeat this course once for credit provided that the student is demonstrating proficiency in additional and more advanced knowledge and skills.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) Career planning is a critical step and is essential to success. Applying to multiple career and technical education clusters, the career preparation courses provide students with a framework for current employment and future career opportunities to become productive and contributing members of society.
(3) Extended Career Preparation is an enhancement and extension to Career Preparation I or Career Preparation II to provide additional opportunities for students to participate in a work-based learning experience that combines classroom instruction with business and industry employment experiences that may be outside the student's current program of study. The goal is to provide students additional time for deeper exploration of skills in the workplace. Career preparation is relevant and rigorous, supports student attainment of academic standards, and effectively prepares students for college and career success.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.
(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student demonstrates employability skills as required by business and industry. The student is expected to:
(A) identify and participate in training, education, or preparation for licensure, certification, or other relevant credentials to prepare for employment;
(B) complete work tasks with high standards to ensure delivery of quality products and services; and
(C) demonstrate and apply planning and time-management skills to work tasks.
(2) The student demonstrates essential skills for success in the workplace. The student is expected to:
(A) demonstrate and apply professional standards and personal qualities needed to be employable such as punctuality, initiative, and cooperation;
(B) apply appropriate content knowledge, technical concepts, and vocabulary in the workplace;
(C) apply effective listening skills to obtain and clarify information in the workplace; and
(D) maintain appropriate hygiene, grooming, and attire in the workplace.
(3) The student applies and enhances academic knowledge and skills in the workplace. The student is expected to:
(A) employ critical-thinking skills to solve problems and make decisions; and
(B) analyze elements of a problem to develop creative and innovative solutions.
(4) The student exemplifies appropriate interpersonal and communication skills in the workplace. The student is expected to:
(A) demonstrate teamwork using conflict-management skills to achieve collective goals;
(B) apply verbal and non-verbal communication skills consistently in a manner that is clear, concise, and effective; and
(C) model effective internal and external communications to support work activities.
(5) The student models ethical codes of conduct and legal responsibilities within the workplace. The student is expected to:
(A) demonstrate a positive work ethic by performing assigned tasks as directed;
(B) model ethical reasoning in workplace situations;
(C) comply with all applicable rules, laws, and regulations in the workplace; and
(D) research and explain the roles of the Equal Employment Opportunity Commission (EEOC) and the Texas Workforce Commission (TWC) in the workplace.
(6) The student applies concepts and skills related to safety in the workplace. The student is expected to:
(A) follow workplace safety rules and regulations consistently;
(B) operate tools and equipment used in the workplace safely;
(C) report and handle accidents and safety incidents according to workplace procedures as necessary; and
(D) describe and perform a hazard analysis of the workplace.
(7) The student participates in a paid or an unpaid career preparation experience. The student is expected to:
(A) conduct, document, and evaluate learning activities in a supervised employment experience;
(B) assess and report on advanced technical knowledge and skills related to the student's occupational objective and growth;
(C) evaluate strengths and weaknesses in technical skill proficiency; and
(D) document experiences related to the workplace and curate work samples.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 25, 2023.
TRD-202303536
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 475-1497
STATUTORY AUTHORITY. The new sections are proposed under Texas Education Code (TEC), §7.102(c)(4), which requires the State Board of Education (SBOE) to establish curriculum and graduation requirements; TEC, §28.002(a), which identifies the subjects of the required curriculum; TEC, §28.002(c), which requires the SBOE to identify by rule the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments; and TEC, §28.025(a), which requires the SBOE to determine by rule the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under TEC, §28.002.
CROSS REFERENCE TO STATUTE. The new sections implement Texas Education Code, §§7.102(c)(4), 28.002(a) and (c), and 28.025(a).
§127.275.Entrepreneurship I (One Credit), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. Recommended prerequisite: Principles of Business, Marketing and Finance. Students shall be awarded one credit for successful completion of this course.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) The Business, Marketing, and Finance Career Cluster focuses on planning, managing, organizing, directing, and evaluating business functions essential to efficient and productive business management, finance, operations, and marketing.
(3) In Entrepreneurship I, students will gain the knowledge and skills needed to become an entrepreneur in a free enterprise system. Students will learn the key concepts necessary to begin and operate a business. The primary focus of the course is to help students identify the types and selection criteria of business structures, understand the components of a business plan, determine feasibility of an idea using research, and develop and present a business concept. In addition, students will understand the basics of management, accounting, finance, marketing, risk, and product development.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations, local chamber of commerce meetings, and meetings with entrepreneurs, mentors, or industry experts.
(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:
(A) demonstrate professional business communication skills such as verbal phone conversations and the construction of email in a professional manner, including subject line, salutation, email body, closing, and signature;
(B) model professional business norms for face-to-face and virtual interactions in alignment with business norms;
(C) identify how to conduct a meeting with professionals, including the importance of punctual attendance, wearing attire appropriate for the meeting, introducing all parties to one another, reviewing and using the meeting agenda as a guide for the meeting, taking notes during the meeting, and sending meeting outcomes to each participant after the conclusion of the meeting;
(D) communicate effectively with others using verbal and nonverbal communication, active listening, and writing skills in a business setting;
(E) demonstrate collaboration skills, including resolving conflicts, within a team setting;
(F) demonstrate a productive work ethic, including performing assigned tasks, following schedules, and meeting deadlines;
(G) evaluate the ethical course of action for entrepreneurs using applicable rules, laws, and regulations;
(H) demonstrate leadership skills by participating in career and technical student organizations, leading a team project, or facilitating a group discussion;
(I) demonstrate coachability skills by receiving and giving constructive feedback; and
(J) demonstrate critical and analytical thinking skills when comparing business decisions.
(2) The student demonstrates an understanding of entrepreneurship. The student is expected to:
(A) distinguish between the terms entrepreneurship and entrepreneur;
(B) define small-, medium-, and large-sized businesses;
(C) differentiate between the various routes to entrepreneurship, including start-ups, franchising, acquisition, mergers, and non-profit ownership;
(D) identify and discuss the risks and benefits of an entrepreneurial way of life;
(E) analyze and discuss the advantages and disadvantages of entrepreneurship;
(F) distinguish between intrapreneurship and entrepreneurship; and
(G) identify the role entrepreneurship plays in innovation within a free-market economy.
(3) The student researches corporations, franchises, partnerships, and sole proprietorships to understand business structures. The student is expected to:
(A) evaluate the advantages and disadvantages involved with the ownership of each business structure, including control, tax implications, risk, and liability;
(B) differentiate between management structures for different types of business;
(C) investigate local businesses and classify them by their business structures; and
(D) identify the primary importance of shareholders.
(4) The student engages in discovery activities related to entrepreneurship. The student is expected to:
(A) complete a career interest inventory or career aptitude test and a personality assessment to identify personality traits, strengths, and weaknesses;
(B) identify characteristics of successful entrepreneurs; and
(C) identify opportunities for personal growth through self-reflection activities.
(5) The student identifies problems and creates solutions to address market wants and needs. The student is expected to:
(A) identify and analyze problems in the marketplace through an ideation process; and
(B) describe possible solutions for the marketplace problems identified.
(6) The student understands the key components included in a business plan. The student is expected to:
(A) define and explain basic accounting terms, including revenue; expenses; cash; accounts receivable; accounts payable; fixed assets; liquid assets; inventory; liabilities; cost of goods sold; earnings before interest, taxes, depreciation, and amortization (EBITDA); gross profit; net profit; forecasts; cash flow; return on investment; and owners' equity;
(B) identify possible diversified revenue streams for a business;
(C) define and explain variable, fixed, and mixed costs;
(D) identify the components of key financial statements of a business plan, including balance sheet, profit and loss statement, and cash flow statement;
(E) calculate unit economics and a break-even point using sample data;
(F) define and explain different channels of distribution;
(G) define and explain demographics, psychographics, and geographics as related to potential customer segment;
(H) provide examples of market segments;
(I) compare various pricing strategies such as cost-plus pricing, price skimming, penetration pricing, premium pricing, and value-based pricing;
(J) define and explain a competitive analysis;
(K) analyze and explain different types of marketing and sales strategies, including digital and social media marketing;
(L) identify and define key performance metrics; and
(M) describe the unique value proposition of a product or service that provides a competitive edge against existing competitors.
(7) The student demonstrates an understanding of a business planning methodology. The student is expected to:
(A) identify the components of a business planning tool, including the Business Model Canvas; and
(B) apply a business planning template to an existing business.
(8) The student creates a plan for a preliminary business concept. The student is expected to:
(A) identify a current market need or problem;
(B) identify a product or service to address the market need or problem;
(C) explain the unique value proposition of the product or service;
(D) explain potential impacts of the availability of the product or service on a selected target market; and
(E) summarize the feasibility and key elements of the business venture.
(9) The student develops and delivers a comprehensive presentation on a preliminary business concept. The student is expected to:
(A) identify and explain the components of a pitch;
(B) create a pitch for a preliminary business concept;
(C) align presentation strategies to the intended audience and purpose;
(D) select and implement effective multimedia strategies for a presentation;
(E) provide and receive constructive feedback following a presentation; and
(F) demonstrate effective presentation skills.
(10) The student knows how to access and use organizations and resources to support entrepreneurs. The student is expected to:
(A) identify and compare the opportunities of various local, state, and national organizations and associations that provide resources to entrepreneurs, including startup grants and loans; and
(B) analyze the benefits of the various services provided by the Small Business Administration, Small Business Development Centers, Service Corps of Retired Executives (SCORE), chambers of commerce, institutions of higher education, and industry-related associations.
§127.276.Entrepreneurship II (One Credit), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. This course is recommended for students in Grades 10-12. Prerequisite: Entrepreneurship I. Students shall be awarded one credit for successful completion of this course.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) The Business, Marketing, and Finance Career Cluster focuses on planning, managing, organizing, directing, and evaluating business functions essential to efficient and productive business management, finance, operations, and marketing.
(3) In Entrepreneurship II, students gain the knowledge and skills needed to become successful entrepreneurs within an innovative marketplace in a free enterprise system. The goal and outcome of the course are for students to have a business launched by the end of the course or have the tools necessary to launch and operate a business. In this course, students learn and initiate the process of taking a business plan from idea to implementation. Students are encouraged to work in close cooperation with local industry leaders and community members to develop ideas and objectives, complete a business planning tool, pitch for funding, and register with governmental agencies.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations, local chamber of commerce meetings, and meetings with entrepreneurs, mentors, or industry experts.
(5) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:
(A) demonstrate professional business skills through written and oral communication;
(B) demonstrate a productive work ethic by using a personal calendar and task list;
(C) conduct meetings in face-to-face and virtual settings by creating an agenda, confirming the meeting, using an agenda as a guide for the meeting, and sending meeting follow-up correspondence;
(D) demonstrate collaboration skills within a diverse team setting;
(E) identify an ethical course of action in a business setting;
(F) demonstrate leadership skills by participating in career and technical student organizations, leading a team project, or facilitating a group discussion;
(G) demonstrate coachability skills by using feedback to inform decision making;
(H) set short- and long-term goals;
(I) identify appropriate business attire in various work settings; and
(J) demonstrate critical and analytical thinking skills when comparing business decisions.
(2) The student demonstrates an understanding of the entrepreneurial environment. The student is expected to:
(A) compare the advantages and disadvantages of corporations, franchises, partnerships, limited-liability companies, and sole-proprietorships;
(B) evaluate the factors involved with starting, acquiring, or expanding a business;
(C) describe franchise opportunities and ownership requirements;
(D) define scaling as it applies to growing a business; and
(E) self-reflect and evaluate personal strengths for becoming a successful entrepreneur.
(3) The student engages in the ideation process and determines the feasibility of an entrepreneurial venture. The student is expected to:
(A) identify and analyze problems in the marketplace through an ideation process;
(B) analyze market research to identify possible solutions to a problem;
(C) identify the customer segment affected by a problem;
(D) evaluate the feasibility of possible solutions to a problem, including a competitive analysis such as a strength, weakness, opportunities, and threats (SWOT) analysis; and
(E) select and present the most viable solution to a problem based on market research, feasibility, and customer segmentation.
(4) The student creates a minimum viable product (MVP) for a start-up business. The student is expected to:
(A) define minimum viable product and unique value proposition for a good or service;
(B) create a minimum viable product to a solution generated from an ideation process;
(C) identify unique value proposition(s) of a minimum viable product;
(D) present the minimum viable product, including the unique value proposition(s), for feedback; and
(E) conduct market testing of the minimum viable product.
(5) The student understands how to select a funding source for a start-up business. The student is expected to:
(A) compare the advantages and disadvantages of potential funding sources, including crowdsourcing, private equity firms, venture capitalists, banks and other lenders, friends and relatives, grants, state and local development agencies, and angel investors;
(B) identify predatory lending schemes and practices; and
(C) evaluate risks and benefits of various funding sources from short- and long-term perspectives.
(6) The student determines an ownership structure for a start-up business. The student is expected to:
(A) compare ownership structures for a start-up business;
(B) select an ownership structure and explain why it is appropriate for a start-up business; and
(C) explain the process for legally registering and obtaining a tax status for a start-up business for a selected ownership structure.
(7) The student uses a business planning tool to develop a start-up business concept. The student is expected to:
(A) research business plan outlines, resources, and templates such as Business Model Canvas, lean business model template, or a traditional business plan template;
(B) select an appropriate business planning tool for a start-up business;
(C) complete the components of a selected business planning tool for a start-up business concept; and
(D) present a start-up business concept for feedback.
(8) The student demonstrates an understanding of accounting and financial practices. The student is expected to:
(A) explain the importance of budgeting and cash flow, including burn rate;
(B) identify revenues and expenses for a start-up business;
(C) explain the importance of a profit and loss statement, balance sheet, and statement of cash flow;
(D) create an operational budget for a start-up business;
(E) create a monthly projected financial statement for a three-year period for a start-up business;
(F) identify accounting tools and services such as accounting and bookkeeping software, payroll services, and tax services; and
(G) select appropriate accounting tools and services for a start-up business.
(9) The student demonstrates an understanding of the legal and regulatory environment for a business. The student is expected to:
(A) differentiate ways to protect intellectual property;
(B) distinguish between the advantages and disadvantages of a patent;
(C) determine the types of licenses a start-up business might be required to obtain, including a business license, employer identification number, name registry, professional license, and occupational license;
(D) examine the role of government agencies that oversee business regulations and determine the regulatory implications for a start-up business;
(E) examine the role of workplace safety and health in the regulatory environment and determine its implications for a start-up business;
(F) analyze the purpose of legally binding contracts;
(G) explain the implications of tax laws on a business;
(H) describe the impact of labor laws when creating a start-up business;
(I) create a sample contract for a start-up business such as sales, employment, purchase, lease, or non-disclosure agreement; and
(J) examine implications of sexual harassment and workplace violence on a business.
(10) The student demonstrates an understanding of ethical and moral obligations in entrepreneurship as they relate to shareholders, employees, customers, and the community. The student is expected to:
(A) develop ideas to build a moral and ethical business culture;
(B) evaluate the impact of unethical and immoral practices on stakeholders;
(C) create the core values for a start-up business; and
(D) create purpose, vision, and mission statements for a start-up business.
(11) The student understands the impact of leadership, human resources, and management on a start-up business. The student is expected to:
(A) distinguish between leadership and management;
(B) explore and identify personal leadership style;
(C) develop recruitment, hiring, and retention strategies for a start-up business;
(D) examine and describe effective leadership and management strategies;
(E) create an organizational chart for a start-up business;
(F) create job descriptions for key roles in a start-up business; and
(G) explain how company culture impacts recruitment and retention.
(12) The student determines a pricing structure for a start-up business. The student is expected to:
(A) create and justify a pricing structure for a start-up business;
(B) develop and analyze pricing objectives;
(C) use sample data to calculate prices, markups, and discounts for a start-up business;
(D) calculate unit economics and a break-even point for a start-up business; and
(E) explain the role of supply and demand on pricing.
(13) The student determines effective marketing and promotional strategies for a start-up business. The student is expected to:
(A) develop promotional objectives;
(B) create a marketing plan for a start-up business that includes the use of internet, social media, and sales strategies;
(C) analyze customer buying behavior to inform promotional decision-making;
(D) create promotional materials using appropriate technology;
(E) conduct a market test to measure promotional effectiveness;
(F) explain the role of search engine optimization as a marketing strategy;
(G) select an appropriate point-of-sale or e-commerce payment method; and
(H) compare how promotional strategies change during the product life cycle.
(14) The student understands the role of distribution and supply chain management for a start-up business. The student is expected to:
(A) determine distribution costs associated with transportation, storage, product handling, and inventory control;
(B) explain how distribution adds value to a product or service by providing place, possession, and time utility to a consumer;
(C) select suppliers for the production of goods and services; and
(D) analyze risks and challenges with supply chain management and distribution.
(15) The student understands key metrics to measure the success of a business. The student is expected to:
(A) explain the role and importance of key metrics as a measure of success;
(B) identify and define common key metrics; and
(C) select and justify key metrics for a start-up business.
(16) The student presents a well-organized business plan. The student is expected to:
(A) create and present a comprehensive business plan that includes business description, target market, key metrics, revenue streams, pricing structure, competitive advantage, unique value proposition, distribution channels, and financial forecast;
(B) identify the purpose of and present an elevator pitch;
(C) create and deliver a presentation for start-up business funding;
(D) select and implement effective multimedia strategies for a presentation;
(E) provide and receive constructive feedback following a presentation;
(F) demonstrate effective presentation skills; and
(G) create an executive summary.
(17) The student understands the process for launching a start-up business. The student is expected to:
(A) research and identify the process for launching a start-up business in the local area;
(B) evaluate insurance costs, locations, and loan terms; and
(C) assess equipment needs and other resources needed to launch the business.
§127.277.Practicum in Entrepreneurship (Two Credits), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. This course is recommended for students in Grades 11 and 12. Recommended prerequisites: Entrepreneurship I and Entrepreneurship II or successful completion of at least two courses in a career and technical education (CTE) program of study. Students shall be awarded two credits for successful completion of this course. A student may repeat this course once for credit provided that the student is experiencing different aspects of the industry and demonstrating proficiency in additional and more advanced knowledge and skills.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) This course can serve in multiple CTE programs of study, as it focuses on planning, managing, organizing, directing, and evaluating business functions essential to efficient and productive business management, finance, operations, and marketing related to the student's industry focus.
(3) Practicum in Entrepreneurship provides students the opportunity to apply classroom learning and experiences to real-world business problems and opportunities in a free enterprise system while expanding their skill sets and professional relationships as a real or simulated business owner versus the experience one would have as an employee. Students will prepare for an entrepreneurial career in their area of interest in their career cluster and build on and apply the knowledge and skills gained from courses taken in an array of career areas. Practicum experiences occur in a paid or an unpaid arrangement and a variety of locations appropriate to the nature and level of the student's need for work-based learning experience. Students implement personal and interpersonal skills to strengthen individual performance in the workplace and in society and to make a successful transition to the workforce or postsecondary education. It is recommended that students are paired with local business owners or employers in their specific industry program of study.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations, local chamber of commerce meetings, and meetings with entrepreneurs, mentors, or industry experts.
(5) Students are encouraged to transition from the idea phase to action and implementation of a business, including validation through sales in a real or simulated scenario.
(6) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student demonstrates professional standards/employability skills required by business and industry. The student is expected to:
(A) participate in a paid or an unpaid laboratory or work-based application of previously studied knowledge and skills related to entrepreneurship;
(B) demonstrate professional business skills through written and oral communication;
(C) demonstrate collaboration skills through teamwork;
(D) demonstrate professionalism by behaving in a manner appropriate for the profession and workplace;
(E) demonstrate a positive, productive work ethic by performing assigned tasks as directed;
(F) comply with all applicable rules, laws, and regulations;
(G) demonstrate time-management skills by prioritizing tasks, following schedules, and accomplishing goal-relevant activities in a way that uses time wisely and optimizes efficiency and results;
(H) identify appropriate business attire for the selected workplace; and
(I) demonstrate critical and analytical thinking skills when comparing business decisions.
(2) The student analyzes major problem areas and potential problem areas for entrepreneurs while demonstrating an understanding of leverage points and constraints. The student is expected to:
(A) assess businesses that have failed, determine factors associated with business closure, and prepare and present analysis to peers;
(B) research and analyze risks faced by entrepreneurs;
(C) evaluate entrepreneurial risk versus opportunity for a given scenario;
(D) describe how entrepreneurship differs from working for an employer;
(E) analyze personal aptitude for entrepreneurship;
(F) describe how entrepreneurs must manage organizational finances;
(G) research and apply the entrepreneur's approach to risk-taking as it applies to business decision-making;
(H) explore and explain a company's competitive advantage in its field of interest; and
(I) analyze the risks and rewards of business ownership by interviewing an entrepreneur in a chosen field of interest.
(3) The student identifies the appropriate legal structure, benefits, and drawbacks for different business types. The student is expected to:
(A) describe the different basic types of business formation, including sole proprietorship, partnership, corporation, and limited liability company;
(B) compare the benefits and drawbacks for each type of business structure such as personal liability and taxes; and
(C) research an existing business and simulate liability issues associated with its type of business structure through role-play.
(4) The student determines how to obtain funding and all associated costs needed to start a particular business. The student is expected to:
(A) describe all materials, facilities, technology, inventory, and personnel that will be needed to start and sustain the business;
(B) devise a timeline of tasks that must be completed, including the associated costs;
(C) list and describe all supplies, personnel wages and salaries, inventories, insurance, utilities, repair and maintenance, and other operating costs associated with funding the business once it is operating;
(D) document and analyze the costs associated with operating the business, using cash flow and return on investment as a means of evaluation;
(E) estimate how much money will be needed on-hand to operate the business until the break-even point;
(F) seek the advice of mentors from industry to analyze and discuss actual business situations and funding options to assist the student with a business idea;
(G) create and analyze financial statements to identify ways to improve business performance in a business model of choice; and
(H) define cash burn in relationship to a business's viability.
(5) The student examines the responsibilities businesses have to employees and the community. The student is expected to:
(A) explain the benefits of a business that contributes to the economic well-being of its employees and community;
(B) research and describe the methods in which a business can ensure economic growth and provide jobs;
(C) explore and analyze the health and safety responsibilities a business has to the community and its employees; and
(D) research and identify how businesses are making investments in community infrastructure.
(6) The student analyzes for-profit and non-profit business growth and exit strategies. The student is expected to:
(A) compare business growth strategies and identify and defend the most favorable for a potential business;
(B) describe methods that a business owner can use to obtain financial support to expand a business;
(C) identify and explain various methods an entrepreneur can use to determine how much a business is worth;
(D) analyze various paths to exit a business and the impact from startup decisions; and
(E) explain the factors an entrepreneur should consider when preparing to exit a business.
(7) The student collaborates in small groups to complete a project-based research activity to develop critical thinking and creative problem solving. The student is expected to:
(A) analyze a real-world work site and research an existing issue or problem the business is experiencing;
(B) research and report how to resolve the business problem;
(C) develop a proposal for future business opportunities; and
(D) determine how to create business relationships or alliances that would be beneficial to the business.
§127.278.Extended Practicum in Entrepreneurship (One Credit), Adopted 2023.
(a) Implementation. The provisions of this section shall be implemented by school districts beginning with the 2024-2025 school year.
(b) General requirements. This course is recommended for students in Grades 11 and 12. The practicum course is a paid or an unpaid capstone experience for students participating in a coherent sequence of career and technical education (CTE) courses in the Marketing Career Cluster. Recommended prerequisites: Entrepreneurship I and Entrepreneurship II or successful completion of at least two courses in a CTE program of study. Corequisite: Practicum in Entrepreneurship. This course must be taken concurrently with Practicum in Entrepreneurship and may not be taken as a stand-alone course. Students shall be awarded one credit for successful completion of this course. A student may repeat this course once for credit provided that the student is experiencing different aspects of the industry and demonstrating proficiency in additional and more advanced knowledge and skills.
(c) Introduction.
(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.
(2) This course can serve in multiple CTE programs of study, as it focuses on planning, managing, organizing, directing, and evaluating business functions essential to efficient and productive business management, finance, operations, and marketing related to the student's industry focus.
(3) Extended Practicum in Entrepreneurship provides students the opportunity to apply classroom learning and experiences to real-world business problems and opportunities in a free enterprise system while expanding their skill sets and professional relationships as a real or simulated business owner versus the experience one would have as an employee. Students will prepare for an entrepreneurial career in their area of interest in their career cluster and build on and apply the knowledge and skills gained from courses taken in an array of career areas. Practicum experiences occur in a paid or an unpaid arrangement and a variety of locations appropriate to the nature and level of the student's need for work-based learning experience. Students implement personal and interpersonal skills to strengthen individual performance in the workplace and in society and to make a successful transition to the workforce or postsecondary education. It is recommended that students are paired with local business owners or employers in their specific industry program of study.
(4) Students are encouraged to participate in extended learning experiences such as career and technical student organizations, local chamber of commerce meetings, and meetings with entrepreneurs, mentors, or industry experts.
(5) Students are encouraged to transition from the idea phase to action and implementation of a business, including validation through sales in a real or simulated scenario.
(6) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.
(d) Knowledge and skills.
(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:
(A) participate in a paid or an unpaid, laboratory- or work-based application of previously studied knowledge and skills related to entrepreneurship;
(B) participate in training, education, or preparation for licensure, certification, or other relevant credentials to prepare for employment;
(C) demonstrate professional standards and personal qualities needed to succeed as an entrepreneur such as self-discipline, integrity, customer service, work ethic, and adaptability with increased fluency;
(D) demonstrate use of business information management tools with increased fluency for relevant projects;
(E) employ teamwork and conflict-management skills with increased fluency to achieve collective goals; and
(F) employ planning and time-management skills and tools with increased fluency to enhance results and complete work tasks.
(2) The student applies professional communications strategies. The student is expected to:
(A) demonstrate proper use of written, verbal, and visual communication techniques with increased proficiency;
(B) apply active listening skills to obtain and clarify information;
(C) create and deliver formal and informal presentations effectively;
(D) analyze, interpret, and effectively communicate information; and
(E) exhibit positive customer/client communication skills to maintain effective internal and external business relationships.
(3) The student implements advanced problem-solving methods. The student is expected to:
(A) employ critical-thinking skills with increased fluency both independently and in groups to solve problems and make decisions;
(B) conduct technical research to gather information necessary for decision making; and
(C) analyze elements of a problem to develop creative and innovative solutions.
(4) The student understands and applies proper safety and security techniques in the workplace. The student is expected to:
(A) demonstrate understanding of and consistently follow workplace safety rules and regulations; and
(B) adhere to technology safety and cybersecurity policies such as acceptable use policy and webpage policies.
(5) The student understands the ethical and legal responsibilities in entrepreneurship. The student is expected to:
(A) apply appropriate responses to workplace situations based on personal or professional ethical responsibilities;
(B) demonstrate integrity by choosing the ethical course of action when making decisions; and
(C) comply with all applicable rules, laws, and regulations for the selected industry.
(6) The student participates in an entrepreneurial experience. The student is expected to:
(A) conduct, document, and evaluate learning activities in a supervised experience;
(B) develop advanced technical knowledge and skills related to the student's occupational objective;
(C) demonstrate use of information technology tools to manage and perform work responsibilities;
(D) create customary styles of documents such as memoranda, letters, emails, and reports, as appropriate, to an industry of choice;
(E) apply the elements and processes of entrepreneurship to grow a business idea and meet customer expectations;
(F) demonstrate growth of technical skill competencies;
(G) evaluate strengths and weaknesses in technical skill proficiency; and
(H) collect representative work samples.
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on September 25, 2023.
TRD-202303537
Cristina De La Fuente-Valadez
Director, Rulemaking
Texas Education Agency
Earliest possible date of adoption: November 12, 2023
For further information, please call: (512) 475-1497