By: Zaffirini	S.B. No. 34

	A BILL TO BE ENTITLED
	AN ACT
	relating to outcomes-based funding for general academic teaching
	institutions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Subchapter D, Chapter 62, Education Code, is
	amended to read as follows:
	SUBCHAPTER D.  OUTCOMES-BASED FUNDING FOR GENERAL ACADEMIC
	TEACHING INSTITUTIONS [PERFORMANCE INCENTIVE FUNDING]
	Sec. 62.071.  DEFINITIONS. In this subchapter:
	(1)  "At-risk student" means an undergraduate student
	of an eligible institution:
	(A)  whose score on the Scholastic Assessment Test
	(SAT) or the American College Test (ACT) is less than the national
	mean score of students' scores on that test;
	(B)  who has been awarded a grant under the
	federal Pell Grant program;
	(C)  who was 20 years of age or older on the date
	the student initially enrolled in the institution;
	(D)  who is enrolled as a part-time student; or
	(E)  who did not receive a high school diploma but
	received a high school equivalency certificate[ within the last six
	years].
	(2)  ["Critical field" means:
	[(A)     the field of engineering, computer science,
	mathematics, physical science, allied health, nursing, or teacher
	certification in a field of science or mathematics; and
	[(B)     any other field of study identified as a critical
	field by the coordinating board in "Closing the Gaps," the state's
	master plan for higher education.
	[(3)     "Eligible institution" means a general academic
	teaching institution other than a public state college.
	[(4)]  "General academic teaching institution" has [and
	"public state college" have] the meaning [meanings] assigned by
	Section 61.003.
	Sec. 62.072.  BIENNIAL DISTRIBUTION OF FUNDS TO GENERAL
	ACADEMIC TEACHING INSTITUTIONS BASED ON OUTCOMES METRICS POINTS.
	Except as provided by Section 62.073, for each state fiscal
	biennium, the coordinating board shall distribute any funds
	appropriated to the coordinating board by the legislature for the
	purposes of this subchapter, and any other funds made available for
	the purposes of this subchapter, to general academic teaching
	institutions in an amount based on each institution's average
	number of baccalaureate degrees awarded in a year during the
	preceding three years according to the following distribution:
	(1)  $500 for each baccalaureate degree awarded to a
	student who is not an at-risk student; and
	(2)  $1,000 for each baccalaureate degree awarded to an
	at-risk student.
	[FUNDING. (a)     For each state fiscal year, the coordinating
	board shall distribute any performance incentive funds
	appropriated by the legislature for purposes of this subchapter,
	and any other funds made available for the purposes of this
	subchapter, to eligible institutions as follows:
	[(1)     50 percent to be distributed among eligible
	institutions in proportion to the increase, if any, in the average
	number of degrees awarded annually by each institution in the two
	most recent fiscal years from the average number of degrees awarded
	annually by that institution in the two fiscal years immediately
	preceding those fiscal years, using the weights assigned to each
	degree under the table prescribed by Subsection (b); and
	[(2)     the remaining 50 percent to be distributed among
	eligible institutions in proportion to the average number of
	degrees awarded annually by each institution in the three most
	recent fiscal years, using the weights assigned to each degree
	under the table prescribed by Subsection (b).
	[(b)     A number of points is assigned for each degree awarded
	by an eligible institution according to the following table:
	[POINTS
	[Noncritical Field/Not At-Risk Student 1.0
	[Noncritical Field/At-Risk Student 2.0
	[Critical Field/Not At-Risk Student 2.0
	[Critical Field/At-Risk Student 3.0]
	Sec. 62.073.  DISTRIBUTION OF FUNDS CONTINGENT ON FULL
	FUNDING OF BASE FORMULA FUNDING. Funds may be distributed under
	this subchapter for a state fiscal biennium only if the instruction
	and operations formula for all general academic teaching
	institutions for undergraduate education under Section 61.059 is
	funded by appropriation for that biennium at a level, per weighted
	semester credit hour, that is equal to or greater than the level at
	which that formula was funded by appropriation for all general
	academic teaching institutions in the preceding state fiscal
	biennium, as that level is adjusted for inflation.
	Sec. 62.074.  RULES. The coordinating board shall adopt
	rules for the administration of this subchapter, including any
	rules the coordinating board considers necessary regarding the
	submission to the coordinating board by eligible institutions of
	any student data required for the coordinating board to carry out
	its duties under this subchapter.
	SECTION 2.  This Act takes effect immediately if it receives
	a vote of two-thirds of all the members elected to each house, as
	provided by Section 39, Article III, Texas Constitution. If this
	Act does not receive the vote necessary for immediate effect, this
	Act takes effect September 1, 2017.