S.B. No. 215
 
 
 
 
AN ACT
  relating to the continuation and functions of the Texas Higher
  Education Coordinating Board, including related changes to the
  status and functions of the Texas Guaranteed Student Loan
  Corporation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 61.0511, Education Code, is transferred
  to Subchapter G, Chapter 51, Education Code, and redesignated as
  Section 51.359, Education Code, to read as follows:
         Sec. 51.359 [61.0511].  ROLE AND MISSION STATEMENT. Each
  institution of higher education shall develop a statement regarding
  the role and mission of the institution reflecting the three
  missions of higher education:  teaching, research, and public
  service.
         SECTION 2.  Section 51.406, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  At least every five years, the Texas Higher Education
  Coordinating Board shall reevaluate its rules and policies to
  ensure the continuing need for the data requests the coordinating
  board imposes on university systems, institutions of higher
  education, or private or independent institutions of higher
  education.  The coordinating board shall consult with those
  entities to identify unnecessary data requests and shall eliminate
  data requests identified as unnecessary from its rules and
  policies.  In this subsection, "private or independent institution
  of higher education" has the meaning assigned by Section 61.003.
         SECTION 3.  Section 52.39, Education Code, is amended to
  read as follows:
         Sec. 52.39.  DEFAULT; SUIT. When any person who has received
  or cosigned as a guarantor for a loan authorized by this chapter has
  failed or refused to make as many as six monthly payments due in
  accordance with an executed note, then the full amount of the
  remaining principal and interest becomes due and payable
  immediately, and the amount due, the person's name and [his] last
  known address, and other necessary information shall be reported by
  the board to the attorney general. Suit for the remaining sum shall
  be instituted by the attorney general, [or any county or district
  attorney acting for him, in the county of the person's residence,
  the county in which is located the institution at which the person
  was last enrolled, or in Travis County,] unless the attorney
  general finds reasonable justification for delaying suit and so
  advises the board in writing.  Venue for a suit arising under this
  section is exclusively conferred on a court of competent
  jurisdiction in Travis County.
         SECTION 4.  Subchapter A, Chapter 56, Education Code, is
  amended by adding Section 56.009 to read as follows:
         Sec. 56.009.  FINANCIAL ASSISTANCE FOR STUDENTS ENROLLED AT
  WGU TEXAS OR SIMILAR ONLINE COLLEGES OR UNIVERSITIES. (a)  In this
  section, "general academic teaching institution" and "private or
  independent institution of higher education" have the meanings
  assigned by Section 61.003.
         (b)  The Texas Higher Education Coordinating Board shall, in
  consultation with representatives of the coordinating board's
  financial aid advisory committee, representatives of financial aid
  offices of WGU Texas and any similar nonprofit, tax-exempt,
  regionally accredited college or university operating in
  accordance with a memorandum of understanding with this state
  pursuant to an executive order issued by the governor and offering
  competency-based, exclusively online or other distance education,
  and representatives of financial aid offices of institutions of
  higher education and private or independent institutions of higher
  education offering online or other distance education courses and
  programs similar to those offered by WGU Texas or any similar
  nonprofit colleges or universities:
               (1)  conduct a study regarding, and prepare proposed
  draft legislation for, the creation of a state-funded student
  financial assistance program:
                     (A)  that is available only to students of
  nonprofit, tax-exempt, regionally accredited colleges or
  universities domiciled in this state that offer competency-based,
  exclusively online or other distance education; and
                     (B)  under which the highest priority is given to
  awarding grants to those eligible students who demonstrate the
  greatest financial need; and
               (2)  not later than October 1, 2014, submit to each
  standing committee of the legislature with primary jurisdiction
  over higher education a report of the results of the study conducted
  under Subdivision (1), together with the proposed draft legislation
  prepared under that subdivision.
         (c)  This section expires January 1, 2016.
         SECTION 5.  Subdivisions (2) and (3), Section 56.301,
  Education Code, are amended to read as follows:
               (2)  "Eligible institution" means a general academic
  teaching [an] institution or a medical and dental unit [of higher
  education] that offers one or more undergraduate degree or
  certification programs.  The term does not include a public state
  college.
               (3)  "General academic teaching institution," 
  "institution of higher education," "medical and dental unit," 
  "public ["Public] junior college," "public state college," and
  "public technical institute" have the meanings assigned by Section
  61.003.
         SECTION 6.  Subsection (b), Section 56.302, Education Code,
  is amended to read as follows:
         (b)  The purpose of this subchapter is to provide a grant of
  money to enable eligible students to attend eligible [public]
  institutions [of higher education] in this state.
         SECTION 7.  Subsections (d-1), (e), and (f), Section 56.303,
  Education Code, are amended to read as follows:
         (d-1)  In allocating among eligible [general academic
  teaching] institutions money available for initial TEXAS grants for
  an academic year, the coordinating board shall ensure that each of
  those institutions' proportional [percentage] share of the total
  amount of money for initial grants that is allocated to eligible 
  [general academic teaching] institutions under this section 
  [subsection] for that year does not, as a result of the number of
  students who establish eligibility at the institution for an
  initial grant under Section 56.3041(2)(A), change from the
  institution's proportional [percentage] share of the total amount
  of money for initial grants that is allocated to those institutions
  under this section [subsection] for the preceding academic year.
         (e)  In determining who should receive a TEXAS grant, the
  coordinating board and the eligible institutions shall give
  priority to awarding TEXAS grants to students who demonstrate the
  greatest financial need and whose expected family contribution, as
  determined according to the methodology used for federal student
  financial aid, does not exceed 60 percent of the average statewide
  amount of tuition and required fees described by Section
  56.307(a).  In giving priority based on financial need as required
  by this subsection to students who meet the requirements for the
  highest priority as provided by Subsection (f), an eligible [a
  general academic teaching] institution shall determine financial
  need according to the relative expected family contribution of
  those students, beginning with students who have the lowest
  expected family contribution.
         (f)  Beginning with TEXAS grants awarded for the 2013-2014
  academic year, in determining who should receive an initial TEXAS
  grant, each eligible [general academic teaching] institution, in
  addition to giving priority as provided by Subsection (e), shall
  give highest priority to students who meet the eligibility criteria
  described by Section 56.3041(2)(A).  If there is money available in
  excess of the amount required to award an initial TEXAS grant to all
  students meeting those criteria, an eligible [a general academic
  teaching] institution shall make awards to other students who meet
  the eligibility criteria described by Section 56.304(a)(2)(A),
  provided that the institution continues to give priority to
  students as provided by Subsection (e).
         SECTION 8.  Subsections (a) and (e-1), Section 56.304,
  Education Code, are amended to read as follows:
         (a)  To be eligible initially for a TEXAS grant, a person who
  graduated from high school before May 1, 2013, must:
               (1)  be a resident of this state as determined by
  coordinating board rules;
               (2)  meet either of the following academic
  requirements:
                     (A)  be a graduate of a public or accredited
  private high school in this state who graduated not earlier than the
  1998-1999 school year and who completed the recommended or advanced
  high school curriculum established under Section 28.002 or 28.025
  or its equivalent; or
                     (B)  have received an associate degree from a
  public or private institution of higher education not earlier than
  May 1, 2001;
               (3)  meet financial need requirements as defined by the
  coordinating board;
               (4)  be enrolled in a baccalaureate [an undergraduate]
  degree [or certificate] program at an eligible institution;
               (5)  be enrolled as:
                     (A)  an entering undergraduate student for at
  least three-fourths of a full course load for an entering
  undergraduate student, as determined by the coordinating board, not
  later than the 16th month after the date of the person's graduation
  from high school; or
                     (B)  an entering student for at least
  three-fourths of a full course load for an undergraduate student as
  determined by the coordinating board, not later than the 12th month
  after the month the person receives an associate degree from a
  public or private institution of higher education;
               (6)  have applied for any available financial aid or
  assistance; and
               (7)  comply with any additional nonacademic
  requirement adopted by the coordinating board under this
  subchapter.
         (e-1)  If a person is initially awarded a TEXAS grant during
  or after the 2005 fall semester, unless the person is provided
  additional time during which the person may receive a TEXAS grant
  under Subsection (e-2), the person's eligibility for a TEXAS grant
  ends on:
               (1)  the fifth anniversary of the initial award of a
  TEXAS grant to the person, if the person is enrolled in a degree [or
  certificate] program of four years [or less]; or
               (2)  the sixth anniversary of the initial award of a
  TEXAS grant to the person, if the person is enrolled in a degree
  program of more than four years.
         SECTION 9.  Section 56.3041, Education Code, is amended to
  read as follows:
         Sec. 56.3041.  INITIAL ELIGIBILITY OF PERSON GRADUATING FROM
  HIGH SCHOOL ON OR AFTER MAY 1, 2013[, AND ENROLLING IN A GENERAL
  ACADEMIC TEACHING INSTITUTION].  To [Notwithstanding Section
  56.304(a), to] be eligible initially for a TEXAS grant, a person
  graduating from high school on or after May 1, 2013, and enrolling
  in an eligible [a general academic teaching] institution must:
               (1)  be a resident of this state as determined by
  coordinating board rules;
               (2)  meet the academic requirements prescribed by
  Paragraph (A), (B), [or] (C), or (D) as follows:
                     (A)  be a graduate of a public or accredited
  private high school in this state who completed the recommended
  high school program established under Section 28.025 or its
  equivalent and have accomplished any two or more of the following:
                           (i)  graduation under the advanced high
  school program established under Section 28.025 or its equivalent,
  successful completion of the course requirements of the
  international baccalaureate diploma program, or earning of the
  equivalent of at least 12 semester credit hours of college credit in
  high school through courses described in Sections 28.009(a)(1),
  (2), and (3);
                           (ii)  satisfaction of the Texas Success
  Initiative (TSI) college readiness benchmarks prescribed by the
  coordinating board under Section 51.3062(f) on any assessment
  instrument designated by the coordinating board under Section
  51.3062(c) [or (e)] or qualification for an exemption as described
  by Section 51.3062(p), (q), or (q-1);
                           (iii)  graduation in the top one-third of
  the person's high school graduating class or graduation from high
  school with a grade point average of at least 3.0 on a four-point
  scale or the equivalent; or
                           (iv)  completion for high school credit of
  at least one advanced mathematics course following the successful
  completion of an Algebra II course, as permitted by Section
  28.025(b-3), or at least one advanced career and technical course,
  as permitted by Section 28.025(b-2);
                     (B)  have received an associate degree from a
  public or private institution of higher education; [or]
                     (C)  be an undergraduate student who has:
                           (i)  previously attended another
  institution of higher education;
                           (ii)  received an initial Texas Educational
  Opportunity Grant under Subchapter P for the 2014 fall semester or a
  subsequent academic term;
                           (iii)  completed at least 24 semester credit
  hours at any institution or institutions of higher education; and
                           (iv)  earned an overall grade point average
  of at least 2.5 on a four-point scale or the equivalent on all
  course work previously attempted; or
                     (D)  if sufficient money is available, meet the
  eligibility criteria described by Section 56.304(a)(2)(A);
               (3)  meet financial need requirements established by
  the coordinating board;
               (4)  be enrolled in an undergraduate degree or
  certificate program at an eligible [the general academic teaching]
  institution;
               (5)  except as provided under rules adopted under
  Section 56.304(h), be enrolled as:
                     (A)  an entering undergraduate student for at
  least three-fourths of a full course load, as determined by the
  coordinating board, not later than the 16th month after the
  calendar month in which the person graduated from high school;
                     (B)  an entering undergraduate student who
  entered military service not later than the first anniversary of
  the date the person graduated from high school and who enrolled for
  at least three-fourths of a full course load, as determined by the
  coordinating board, at the eligible [general academic teaching]
  institution not later than 12 months after being honorably
  discharged from military service; [or]
                     (C)  a continuing undergraduate student for at
  least three-fourths of a full course load, as determined by the
  coordinating board, not later than the 12th month after the
  calendar month in which the person received an associate degree
  from a public or private institution of higher education; or
                     (D)  an undergraduate student described by
  Subdivision (2)(C) who has never previously received a TEXAS grant;
               (6)  have applied for any available financial aid or
  assistance; and
               (7)  comply with any additional nonacademic
  requirements adopted by the coordinating board under this
  subchapter.
         SECTION 10.  Subsections (b) and (d), Section 56.3042,
  Education Code, are amended to read as follows:
         (b)  The coordinating board or the eligible institution may
  require the student to forgo or repay the amount of an initial TEXAS
  grant awarded to the student as described by Subsection (a) or (a-1)
  if the student fails to meet the eligibility requirements described
  by Subsection (a) or (a-1) [of Section 56.304(a)(2)(A),
  56.3041(2)(A), 56.304(a)(2)(B), or 56.3041(2)(B)], as applicable
  to the student, after the issuance of the available high school or
  college transcript.
         (d)  A person who receives an initial TEXAS grant under
  Subsection (a) or (a-1) but does not satisfy the applicable
  eligibility requirement that the person was considered to have
  satisfied under the applicable subsection and who is not required
  to forgo or repay the amount of the grant under Subsection (b) may
  become eligible to receive a subsequent TEXAS grant under Section
  56.305 only by satisfying the associate degree requirement
  prescribed by Section 56.304(a)(2)(B) or 56.3041(2)(B), as
  applicable to the person, in addition to the requirements of
  Section 56.305 at the time the person applies for the subsequent
  grant.
         SECTION 11.  Subsection (a), Section 56.305, Education Code,
  is amended to read as follows:
         (a)  After initially qualifying for a TEXAS grant, a person
  may continue to receive a TEXAS grant during each semester or term
  in which the person is enrolled at an eligible institution only if
  the person:
               (1)  meets financial need requirements as defined by
  the coordinating board;
               (2)  is enrolled in a baccalaureate [an undergraduate]
  degree [or certificate] program at an eligible institution;
               (3)  is enrolled for at least three-fourths of a full
  course load for an undergraduate student, as determined by the
  coordinating board;
               (4)  makes satisfactory academic progress toward a
  baccalaureate [an undergraduate] degree [or certificate]; and
               (5)  complies with any additional nonacademic
  requirement adopted by the coordinating board.
         SECTION 12.  Section 56.306, Education Code, is amended to
  read as follows:
         Sec. 56.306.  GRANT USE. A person receiving a TEXAS grant
  may use the money to pay any usual and customary cost of attendance
  at an eligible institution [of higher education] incurred by the
  student. The institution may disburse all or part of the proceeds
  of a TEXAS grant directly to an eligible person only if the tuition
  and required fees incurred by the person at the institution have
  been paid.
         SECTION 13.  Subsections (a), (d-1), (i-1), and (j), Section
  56.307, Education Code, are amended to read as follows:
         (a)  The amount of a TEXAS grant for a semester or term for a
  person enrolled full-time at an eligible institution [other than an
  institution covered by Subsection (c) or (d)] is an [the] amount
  determined by the coordinating board as the average statewide
  amount of tuition and required fees that a resident student
  enrolled full-time in a baccalaureate degree program would be
  charged for that semester or term at general academic teaching
  institutions.
         (d-1)  The coordinating board shall determine the average
  statewide tuition and fee amounts for a semester or term of the next
  academic year for purposes of this section by using the amounts of
  tuition and required fees that will be charged by the [applicable]
  eligible institutions for that semester or term in that academic
  year.  The board may estimate the amount of the charges for a
  semester or term in the next academic year by an institution if the
  relevant information is not yet available to the board.
         (i-1)  A public institution of higher education may elect to
  award a TEXAS grant to any student in an amount that is less than the
  applicable amount established under Subsection (a)[, (c), (d),] or
  (e).
         (j)  A public institution of higher education shall use other
  available sources of financial aid, other than a loan, to cover any
  difference in the amount of a TEXAS grant awarded to the student and
  the actual amount of tuition and required fees at the institution if
  the difference results from:
               (1)  a reduction in the amount of a TEXAS grant under
  Subsection (i-1); or
               (2)  a deficiency in the amount of the grant as
  established under Subsection (a)[, (c), (d),] or (e), as
  applicable, to cover the full amount of tuition and required fees
  charged to the student by the institution.
         SECTION 14.  Subdivisions (2) and (3), Section 56.451,
  Education Code, are amended to read as follows:
               (2)  "Eligible institution" means:
                     (A)  a general academic teaching institution,
  other than a public state college [an institution of higher
  education]; [or]
                     (B)  a medical and dental unit that offers
  baccalaureate degrees; or
                     (C)  a private or independent institution of
  higher education that offers baccalaureate degree programs.
               (3)  "General academic teaching institution," "medical
  and dental unit," "private or independent institution of higher
  education," and "public state [junior] college," [and "public
  technical institute"] have the meanings assigned by Section 61.003.
         SECTION 15.  Subsection (b), Section 56.452, Education Code,
  is amended to read as follows:
         (b)  The purpose of this subchapter is to provide no-interest
  loans to eligible students to enable those students to earn
  baccalaureate degrees at [attend all] public and private or
  independent institutions of higher education in this state.
         SECTION 16.  Section 56.453, Education Code, is amended by
  adding Subsections (d), (e), and (f) to read as follows:
         (d)  The coordinating board, in collaboration with eligible
  institutions and other appropriate entities, shall adopt and
  implement measures to:
               (1)  improve student participation in the Texas
  B-On-time loan program, including strategies to better inform
  students and prospective students about the program; and
               (2)  improve the rate of student satisfaction of the
  requirements for obtaining Texas B-On-time loan forgiveness.
         (e)  The coordinating board, in collaboration with eligible
  institutions and appropriate nonprofit or college access
  organizations, shall:
               (1)  educate students regarding the eligibility
  requirements for forgiveness of Texas B-On-time loans;
               (2)  ensure that students applying for or receiving a
  Texas B-On-time loan understand their responsibility to repay any
  portion of the loan that is not forgiven;
               (3)  ensure that students who are required to repay
  Texas B-On-time loans receive and understand information regarding
  loan default prevention strategies; and
               (4)  through an in-person or online loan counseling
  module, provide loan repayment and default prevention counseling to
  students receiving Texas B-On-time loans.
         (f)  Notwithstanding Subsection (e)(4), the following
  eligible institutions shall provide the loan repayment and default
  prevention counseling described by that subdivision to all Texas
  B-On-time loan recipients enrolled at those institutions:
               (1)  each institution with a Texas B-On-time loan
  default rate that exceeds the statewide average default rate for
  such loans; and
               (2)  each institution with a Texas B-On-time loan
  forgiveness rate that is less than 50 percent of the statewide
  average forgiveness rate for such loans.
         SECTION 17.  Section 56.455, Education Code, is amended to
  read as follows:
         Sec. 56.455.  INITIAL ELIGIBILITY FOR LOAN.  To be eligible
  initially for a Texas B-On-time loan, a person must:
               (1)  be a resident of this state under Section 54.052 or
  be entitled, as a child of a member of the armed forces of the United
  States, to pay tuition at the rate provided for residents of this
  state under Section 54.241;
               (2)  meet one of the following academic requirements:
                     (A)  be a graduate of a public or private high
  school in this state who graduated not earlier than the 2002-2003
  school year under the recommended or advanced high school program
  established under Section 28.025(a) or its equivalent;
                     (B)  be a graduate of a high school operated by the
  United States Department of Defense who:
                           (i)  graduated from that school not earlier
  than the 2002-2003 school year; and
                           (ii)  at the time of graduation from that
  school was a dependent child of a member of the armed forces of the
  United States; or
                     (C)  have received an associate degree from an
  [eligible] institution of higher education or private or
  independent institution of higher education not earlier than May 1,
  2005;
               (3)  be enrolled for a full course load for an
  undergraduate student, as determined by the coordinating board, in
  a baccalaureate [an undergraduate] degree [or certificate] program
  at an eligible institution;
               (4)  be eligible for federal financial aid, except that
  a person is not required to meet any financial need requirement
  applicable to a particular federal financial aid program; and
               (5)  comply with any additional nonacademic
  requirement adopted by the coordinating board under this
  subchapter.
         SECTION 18.  Subsection (a), Section 56.456, Education Code,
  is amended to read as follows:
         (a)  After initially qualifying for a Texas B-On-time loan, a
  person may continue to receive a Texas B-On-time loan for each
  semester or term in which the person is enrolled at an eligible
  institution only if the person:
               (1)  is enrolled for a full course load for an
  undergraduate student, as determined by the coordinating board, in
  a baccalaureate [an undergraduate] degree [or certificate] program
  at an eligible institution;
               (2)  is eligible for federal financial aid, except that
  a person is not required to meet any financial need requirement
  applicable to a particular federal financial aid program;
               (3)  makes satisfactory academic progress toward a
  degree [or certificate] as determined by the institution at which
  the person is enrolled, if the person is enrolled in the person's
  first academic year at the institution;
               (4)  completed at least 75 percent of the semester
  credit hours attempted by the person in the most recent academic
  year and has a cumulative grade point average of at least 2.5 on a
  four-point scale or the equivalent on all coursework previously
  attempted at institutions of higher education or private or
  independent institutions of higher education, if the person is
  enrolled in any academic year after the person's first academic
  year; and
               (5)  complies with any additional nonacademic
  requirement adopted by the coordinating board.
         SECTION 19.  Subsections (a), (b), and (f), Section 56.459,
  Education Code, are amended to read as follows:
         (a)  The amount of a Texas B-On-time loan for a semester or
  term for a student enrolled full-time at an eligible institution
  other than an institution covered by Subsection (b)[, (c), or (d)]
  is an amount determined by the coordinating board as the average
  [statewide] amount of tuition and required fees that a resident
  student enrolled full-time in a baccalaureate [an undergraduate]
  degree program would be charged for that semester or term at general
  academic teaching institutions.
         (b)  The amount of a Texas B-On-time loan for a student
  enrolled full-time at a private or independent institution of
  higher education is an amount determined by the coordinating board
  as the average statewide amount of tuition and required fees that a
  resident student enrolled full-time in a baccalaureate [an
  undergraduate] degree program would be charged for that semester or
  term at general academic teaching institutions.
         (f)  If in any academic year the amount of money in the Texas
  B-On-time student loan account, other than money appropriated to
  the account exclusively for loans at eligible institutions that are
  private or independent institutions of higher education, is
  insufficient to provide the loans in the amount determined under
  Subsection (a) to all eligible persons at eligible institutions
  that are institutions of higher education [in amounts specified by
  this section], the coordinating board shall determine the amount of
  that available money and shall allocate that amount to those
  eligible institutions in proportion to the amount of tuition set
  aside by [number of full-time equivalent undergraduate students
  enrolled at] each of those institutions under Section 56.465 for
  the preceding academic year, and each of those institutions shall
  determine the amount of each loan awarded at that institution, not
  to exceed the amount determined under Subsection (a).  In the manner
  prescribed by the coordinating board for purposes of this
  subsection, each eligible institution that is a private or
  independent institution of higher education is entitled to receive
  an allocation only from the general revenue appropriations made for
  that academic year to eligible private or independent institutions
  of higher education for the purposes of this subchapter. Each
  institution shall use the money allocated to award Texas B-On-time
  loans to eligible students enrolled at the institution selected
  according to financial need.
         SECTION 20.  Subsection (a), Section 56.460, Education Code,
  is amended to read as follows:
         (a)  The coordinating board, in consultation with all
  eligible institutions, shall prepare materials designed to inform
  prospective students, their parents, and high school counselors
  about the program and eligibility for a Texas B-On-time loan. The
  coordinating board shall distribute to each eligible institution
  and to each school district a copy of the materials prepared [rules
  adopted] under this subchapter.
         SECTION 21.  Sections 56.461 and 56.462, Education Code, are
  amended to read as follows:
         Sec. 56.461.  LOAN PAYMENT DEFERRED. The repayment of a
  Texas B-On-time loan received by a student under this subchapter is
  deferred as long as the student remains continuously enrolled in a
  baccalaureate [an undergraduate] degree [or certificate] program
  at an eligible institution.
         Sec. 56.462.  LOAN FORGIVENESS. A student who receives a
  Texas B-On-time loan shall be forgiven the amount of the student's
  loan if the student is awarded a baccalaureate [an undergraduate
  certificate or] degree at an eligible institution with a cumulative
  grade point average of at least 3.0 on a four-point scale or the
  equivalent:
               (1)  within:
                     (A)  four calendar years after the date the
  student initially enrolled in an [the] institution of higher
  education or private or independent institution of higher education 
  [or another eligible institution] if[:
                           [(i)     the institution is a four-year
  institution; and
                           [(ii)]  the student is awarded a degree
  other than a degree in engineering, architecture, or any other
  program determined by the coordinating board to require more than
  four years to complete; or
                     (B)  five calendar years after the date the
  student initially enrolled in an [the] institution of higher
  education or private or independent institution of higher education 
  [or another eligible institution] if[:
                           [(i)     the institution is a four-year
  institution; and
                           [(ii)]  the student is awarded a degree in
  engineering, architecture, or any other program determined by the
  coordinating board to require more than four years to complete; [or
                     [(C)     two years after the date the student
  initially enrolled in the institution or another eligible
  institution if the institution is a public junior college or public
  technical institute;] or
               (2)  with a total number of semester credit hours,
  including transfer credit hours and excluding hours earned
  exclusively by examination, hours earned for a course for which the
  student received credit toward the student's high school academic
  requirements, and hours earned for developmental coursework that an
  institution of higher education required the student to take under
  Section 51.3062 or under the former provisions of Section 51.306,
  that is not more than six hours more than the minimum number of
  semester credit hours required to complete the [certificate or]
  degree.
         SECTION 22.  Subchapter A, Chapter 57, Education Code, is
  amended by adding Section 57.011 to read as follows:
         Sec. 57.011.  STATUS OF TEXAS GUARANTEED STUDENT LOAN
  CORPORATION.  (a)  The Texas Guaranteed Student Loan Corporation is
  converted as provided by this section from a public nonprofit
  corporation to a nonprofit corporation under Chapter 22, Business
  Organizations Code.
         (b)  On or immediately after September 1, 2013, to effectuate
  the conversion under Subsection (a), the corporation shall file a
  certificate of formation with the secretary of state or, if the
  secretary of state determines it appropriate, the corporation shall
  file a certificate of conversion under Chapter 10, Business
  Organizations Code.
         (c)  The corporation as converted under this section
  continues in existence uninterrupted from the date of its creation,
  August 27, 1979. The secretary of state shall recognize the
  continuous existence of the corporation from that date in the
  certificate of formation or certificate of conversion, as
  applicable.
         (d)  The corporation continues to serve as the designated
  guaranty agency for the State of Texas under the Higher Education
  Act of 1965 (20 U.S.C. Section 1001 et seq.).
         (e)  Student loan borrower information collected, assembled,
  or maintained by the corporation is confidential and is not subject
  to public disclosure.
         SECTION 23.  Section 57.01, Education Code, is transferred
  to Section 61.002, Education Code, redesignated as Subsection (c),
  Section 61.002, Education Code, and amended to read as follows:
         (c)  Postsecondary [Sec.   57.01.     DECLARATION OF POLICY. The
  legislature, giving due consideration to the historical and
  continuing interest of the people of the State of Texas in
  encouraging deserving and qualified persons to realize their
  aspirations for education beyond high school, finds and declares
  that postsecondary] education for qualified Texans [those] who
  desire to pursue such [an] education [and are properly qualified
  therefor] is important to the welfare and security of this state and
  the nation and, consequently, is an important public purpose. The
  legislature finds and declares that the state can achieve its full
  economic and social potential only if every individual has the
  opportunity to contribute to the full extent of the individual's
  [his or her] capabilities and only when financial barriers to the
  individual's [his or her] economic, social, and educational goals
  are removed. In order to facilitate the removal of those barriers,
  the board, in consultation with one or more nonprofit entities with
  experience providing the services on a statewide basis, may [It is,
  therefore, the purpose of this chapter to establish the Texas
  Guaranteed Student Loan Corporation to:
               [(1)     administer a guaranteed student loan program to
  assist qualified Texas students in receiving a postsecondary
  education in this state or elsewhere in the nation; and
               [(2)]  provide necessary and desirable services
  related to financial aid services [the loan program], including
  cooperative awareness efforts with appropriate educational and
  civic associations designed to disseminate postsecondary education
  awareness information, including information regarding available
  grant and loan programs and [student financial aid and the Federal
  Family Education Loan Program, and other relevant topics including]
  the prevention of student loan default.
         SECTION 24.  Subsection (a), Section 58.002, Education Code,
  is amended to read as follows:
         (a)  In this chapter:
               (1)  "Resident physician" means a person who is
  appointed a resident physician by a school of medicine in The
  University of Texas System, the Texas Tech University System, The
  Texas A&M University System, or the University of North Texas
  System or by the Baylor College of Medicine [one of the schools of
  medicine listed in Section 58.001 of this code] and who:
                     (A)  has received a Doctor of Medicine or a Doctor
  of Osteopathic Medicine degree from the Baylor College of Medicine
  or from an approved school of medicine [one of the schools listed in
  Section 58.001 of this code]; or
                     (B)  is a citizen of Texas and has received a
  Doctor of Medicine or a Doctor of Osteopathic Medicine degree from
  some other school of medicine that is accredited by the Liaison
  Committee on Medical Education or by the Bureau of Professional
  Education of the American Osteopathic Association.
               (2)  ["Primary teaching hospital" means a hospital at
  which one of the schools listed in Section 58.001 of this code
  educates and trains both resident physicians and undergraduate
  medical students.
               [(3)]  "Compensation" includes:
                     (A)  stipends;
                     (B)  payments, if any, for services rendered; and
                     (C)  fringe benefits when applied to payments to
  or for the benefit of resident physicians.
         SECTION 25.  Section 61.002, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  The Texas Higher Education Coordinating Board has only
  the powers expressly provided by law or necessarily implied from an
  express grant of power.  Any function or power not expressly granted
  to the board by this code or other law in regard to the
  administration, organization, control, management, jurisdiction,
  or governance of an institution of higher education is reserved to
  and shall be performed by the governing board of the institution,
  the applicable system administration, or the institution of higher
  education.
         SECTION 26.  Section 61.0211, Education Code, is amended to
  read as follows:
         Sec. 61.0211.  SUNSET PROVISION.  The Texas Higher Education
  Coordinating Board is subject to Chapter 325, Government Code
  (Texas Sunset Act).  Unless continued in existence as provided by
  that chapter, the board is abolished and this chapter expires
  September 1, 2025 [2013].
         SECTION 27.  Subsection (d), Section 61.025, Education Code,
  is amended to read as follows:
         (d)  The board shall develop and implement policies that
  provide the public with a reasonable opportunity to appear before
  the board and to speak on any issue under the jurisdiction of the
  board, including a policy to specifically provide, as an item on the
  board's agenda at each meeting, an opportunity for public comment
  before the board makes a decision on any agenda item.
         SECTION 28.  Section 61.026, Education Code, is amended to
  read as follows:
         Sec. 61.026.  COMMITTEES AND ADVISORY COMMITTEES.  (a)  The
  chair [chairman] may appoint committees from the board's membership
  as the chair [he] or the board considers [may find] necessary [from
  time to time].
         (b)  The board may appoint advisory committees from outside
  its membership as the board considers [it may deem] necessary.  
  Chapter 2110, Government Code, applies to an advisory committee
  appointed by the chair or the board.  The board shall adopt rules,
  in compliance with Chapter 2110, Government Code, regarding an
  advisory committee that primarily functions to advise the board,
  including rules governing an advisory committee's purpose, tasks,
  reporting requirements, and abolishment date.  A board member may
  not serve on a board advisory committee.
         (c)  The board may adopt rules under this section regarding
  an advisory committee's:
               (1)  size and quorum requirements;
               (2)  qualifications for membership, including
  experience requirements and geographic representation;
               (3)  appointment procedures;
               (4)  terms of service; and
               (5)  compliance with the requirements for open meetings
  under Chapter 551, Government Code.
         (d)  Each advisory committee must report its recommendations
  directly to the board.
         SECTION 29.  Subchapter B, Chapter 61, Education Code, is
  amended by adding Section 61.0331 to read as follows:
         Sec. 61.0331.  NEGOTIATED RULEMAKING REQUIRED. The board
  shall engage institutions of higher education in a negotiated
  rulemaking process as described by Chapter 2008, Government Code,
  when adopting a policy, procedure, or rule relating to:
               (1)  an admission policy regarding the common admission
  application under Section 51.762, a uniform admission policy under
  Section 51.807, graduate and professional admissions under Section
  51.843, or the transfer of credit under Section 61.827;
               (2)  the allocation or distribution of funds, including
  financial aid or other trusteed funds under Section 61.07761;
               (3)  the reevaluation of data requests under
  Section 51.406; or
               (4)  compliance monitoring under Section 61.035.
         SECTION 30.  Subchapter B, Chapter 61, Education Code, is
  amended by adding Section 61.035 to read as follows:
         Sec. 61.035.  COMPLIANCE MONITORING.  (a)  The board, in
  consultation with affected stakeholders, shall adopt rules to
  establish an agency-wide, risk-based compliance monitoring
  function for:
               (1)  funds allocated by the board to institutions of
  higher education, private or independent institutions of higher
  education, and other entities, including student financial
  assistance funds, academic support grants, and any other grants, to
  ensure that those funds are distributed in accordance with
  applicable law and board rule; and
               (2)  data reported by institutions of higher education
  to the board and used by the board for funding or policymaking
  decisions, including data used for formula funding allocations, to
  ensure the data is reported accurately.
         (b)  For purposes of this section, student financial
  assistance includes grants, scholarships, loans, and work-study.
         (c)  After considering potential risks and the board's
  resources, the board shall review a reasonable portion of the total
  funds allocated by the board and of data reported to the board.  The
  board shall use various levels of monitoring, according to risk,
  ranging from checking reported data for errors and inconsistencies
  to conducting comprehensive audits, including site visits.
         (d)  In developing the board's risk-based approach to
  compliance monitoring under this section, the board shall consider
  the following factors relating to an institution of higher
  education or private or independent institution of higher
  education:
               (1)  the amount of student financial assistance or
  grant funds allocated to the institution by the board;
               (2)  whether the institution is required to obtain and
  submit an independent audit;
               (3)  the institution's internal controls;
               (4)  the length of time since the institution's last
  desk review or site visit;
               (5)  past misuse of funds or misreported data by the
  institution;
               (6)  in regard to data verification, whether the data
  reported to the board by the institution is used for determining
  funding allocations; and
               (7)  other factors as considered appropriate by the
  board.
         (e)  The board shall train compliance monitoring staff to
  ensure that the staff has the ability to monitor both funds
  compliance and data reporting accuracy.  Program staff in other
  board divisions who conduct limited monitoring and contract
  administration shall coordinate with the compliance monitoring
  function to identify risks and avoid duplication.
         (f)  If the board determines through its compliance
  monitoring function that funds awarded by the board to an
  institution of higher education or private or independent
  institution of higher education have been misused or misallocated
  by the institution, the board shall present its determination to
  the institution's governing board, or to the institution's chief
  executive officer if the institution is a private or independent
  institution of higher education, and provide an opportunity for a
  response from the institution.  Following the opportunity for
  response, the board shall report its determination and the
  institution's response, together with any recommendations, to the
  institution's governing board or chief executive officer, as
  applicable, the governor, and the Legislative Budget Board.
         (g)  If the board determines through its compliance
  monitoring function that an institution of higher education has
  included errors in the institution's data reported for formula
  funding, the board:
               (1)  for a public junior college, may adjust the
  appropriations made to the college for a fiscal year as necessary to
  account for the corrected data; and
               (2)  for a general academic teaching institution, a
  medical and dental unit, or a public technical institute, shall
  calculate a revised appropriation amount for the applicable fiscal
  year based on the corrected data and report that revised amount to
  the governor and Legislative Budget Board for consideration as the
  basis for budget execution or other appropriate action, and to the
  comptroller.
         (h)  In conducting the compliance monitoring function under
  this section, the board may partner with internal audit offices at
  institutions of higher education and private or independent
  institutions of higher education, as institutional resources
  allow, to examine the institutions' use of funds allocated by, and
  data reported to, the board.  To avoid duplication of effort and
  assist the board in identifying risk, an internal auditor at an
  institution shall notify the board of any audits conducted by the
  auditor involving funds administered by the board or data reported
  to the board.  The board by rule may prescribe the timing and format
  of the notification required by this subsection.  The board by rule
  shall require a private or independent institution of higher
  education to provide to the board the institution's external audit
  involving funds administered by the board.  The private or
  independent institution of higher education's external audit must
  comply with the board's rules for auditing those funds.
         (i)  The board may seek technical assistance from the state
  auditor in establishing the compliance monitoring function under
  this section.  The state auditor may periodically audit the board's
  compliance monitoring function as the state auditor considers
  appropriate.
         (j)  In this section:
               (1)  "Desk review" means an administrative review by
  the board that is based on information reported by an institution of
  higher education or private or independent institution of higher
  education, including supplemental information required by the
  board for the purposes of compliance monitoring, except that the
  term does not include information or accompanying notes gathered by
  the board during a site visit.
               (2)  "Site visit" means an announced or unannounced
  in-person visit by a representative of the board to an institution
  of higher education or private or independent institution of higher
  education for the purposes of compliance monitoring.
         SECTION 31.  Section 61.051, Education Code, is amended by
  amending Subsections (a), (a-1), (a-2), and (a-3) and adding
  Subsection (a-5) to read as follows:
         (a)  The board represents [shall represent] the highest
  authority in the state in matters of public higher education and is
  charged with the duty to take an active part in promoting quality
  education throughout [in the various regions of] the state by:
               (1)  providing a statewide perspective to ensure the
  efficient and effective use of higher education resources and to
  eliminate unnecessary duplication;
               (2)  developing and evaluating progress toward a
  long-range master plan for higher education and providing analysis
  and recommendations to link state spending for higher education
  with the goals of the long-range master plan;
               (3)  collecting and making accessible data on higher
  education in the state and aggregating and analyzing that data to
  support policy recommendations;
               (4)  making recommendations to improve the efficiency
  and effectiveness of transitions, including between high school and
  postsecondary education, between institutions of higher education
  for transfer purposes, and between postsecondary education and the
  workforce; and
               (5)  administering programs and trusteed funds for
  financial aid and other grants as necessary to achieve the state's
  long-range goals and as directed by the legislature. [The board
  shall be responsible for assuring that there is no discrimination
  in the distribution of programs and resources throughout the state
  on the basis of race, national origin, or sex.]
         (a-1)  The board shall develop a long-range [five-year]
  master plan for higher education in this state.  The [five-year]
  plan shall:
               (1)  establish long-term, measurable goals and provide
  strategies for implementing those goals;
               (2)  assess the higher education needs of each region
  of the state;
               (3)  provide for regular evaluation and revision of the
  plan, as the board considers necessary, to ensure the relevance of
  goals and strategies; and
               (4)  take into account the resources of private or
  independent institutions of higher education [in this state].
         (a-2)  The board shall establish methods for obtaining input
  from stakeholders and the general public when developing or
  revising [periodically review and revise] the long-range 
  [five-year] master plan developed under Subsection (a-1). [As a
  specific element of its review, the board shall identify and
  analyze the degree to which the plan reflects the continuing higher
  education needs of this state, as well as any policy changes
  necessary to improve overall implementation of the plan and the
  fiscal impact of those changes. The board shall establish
  procedures for monitoring the board's implementation of the plan,
  including an analysis of the degree to which its current activities
  support implementation of the plan and any change in board rules or
  practices necessary to improve implementation of the plan. The
  board shall identify additional strategies necessary to achieve the
  goals of the plan, emphasizing implementation by institutions of
  higher education and specific recommendations for the different
  regions of the state. The board shall notify each institution of
  higher education of all strategies for implementing the plan.]
         (a-3)  Not later than December 1 of each even-numbered year,
  the board shall prepare and deliver a report to the governor, the
  lieutenant governor, the speaker of the house of representatives,
  and the standing committees of the senate and house of
  representatives with primary jurisdiction over higher education
  [The board shall inform the legislature on matters pertaining to
  higher education, including the state's activities in the Board of
  Control for Southern Regional Education, and shall report to the
  legislature not later than January 1 of each odd-numbered year on
  the state of higher education in Texas]. In the [biennial] report,
  the board shall assess the state's progress in meeting the goals
  established [stated] in the long-range master plan developed under
  Subsection (a-1) and [shall] recommend legislative action,
  including statutory or funding changes, to assist the state in
  meeting those goals. The report must include updates on
  implementation strategies provided for in the long-range master
  plan [the analyses performed in connection with the board's
  periodic review] under Subsection (a-1) [(a-2)].
         (a-5)  In conjunction with development of the long-range
  master plan under Subsection (a-1), the board shall evaluate the
  role and mission of each general academic teaching institution,
  other than a public state college, to ensure that the roles and
  missions of the institutions collectively contribute to the state's
  goals identified in the master plan.
         SECTION 32.  Section 61.0512, Education Code, is amended to
  read as follows:
         Sec. 61.0512.  BOARD APPROVAL OF ACADEMIC [NEW DEGREE]
  PROGRAMS[; NOTIFICATION TO BOARD]. (a)  A new degree or
  certificate program may be added at an institution of higher
  education only with specific prior approval of the board.  A new
  degree or certificate program is considered approved if the board
  has not completed a review under this section and acted to approve
  or disapprove the proposed program before the first anniversary of
  the date on which an institution of higher education submits a
  completed application for approval to the board.  The board may not
  summarily disapprove a program without completing the review
  required by this section.  The board shall specify by rule the
  elements that constitute a completed application and shall make an
  administrative determination of the completeness of the
  application not later than the fifth business day after receiving
  the application.  A request for additional information in support
  of an application that has been determined administratively
  complete does not toll the period within which the application is
  considered approved under this section.
         (b)  At the time an institution of higher education [a public
  senior college or university] begins preliminary planning for a new
  degree program [or a new organizational unit to administer a new
  degree program], the institution must [college or university shall]
  notify the board before the institution may carry out that
  planning[.   In the implementation of this subsection, the board may
  not require additional reports from the institutions].
         (c)  The board shall review each degree or certificate
  program offered by an institution of higher education at the time
  the institution requests to implement a new program to ensure that
  the program:
               (1)  is needed by the state and the local community and
  does not unnecessarily duplicate programs offered by other
  institutions of higher education or private or independent
  institutions of higher education;
               (2)  has adequate financing from legislative
  appropriation, funds allocated by the board, or funds from other
  sources;
               (3)  has necessary faculty and other resources to
  ensure student success; and
               (4)  meets academic standards specified by law or
  prescribed by board rule, including rules adopted by the board for
  purposes of this section, or workforce standards established by the
  Texas Workforce Investment Council.
         (d)  The board may review the number of degrees or
  certificates awarded through a degree or certificate program every
  four years or more frequently, at the board's discretion.
         (e)  The board shall review each degree or certificate
  program offered by an institution of higher education at least
  every 10 years after a new program is established using the criteria
  prescribed by Subsection (c).
         (f)  The board may not order the consolidation or elimination
  of any degree or certificate program offered by an institution of
  higher education but may, based on the board's review under
  Subsections (d) and (e), recommend such action to an institution's
  governing board. If an institution's governing board does not
  accept recommendations to consolidate or eliminate a degree or
  certificate program, the university system or, where a system does
  not exist, the institution, must identify the programs recommended
  for consolidation or elimination on the next legislative
  appropriations request submitted by the system or institution.
         (g)  An institution of higher education may offer off-campus
  courses for credit within the state or distance learning courses
  only with specific prior approval of the board. An institution must
  certify to the board that a course offered for credit outside the
  state meets the board's academic criteria. An institution shall
  include the certification in submitting any other reports required
  by the board.
         (h)  In approving a degree or certificate program under this
  section, the board:
               (1)  for a doctoral program, may not consider
  undergraduate graduation or persistence rates; and
               (2)  for a baccalaureate degree program proposed to be
  offered by a public junior college previously authorized by the
  board to offer baccalaureate degree programs under Section
  130.0012:
                     (A)  shall approve the degree program within 60
  days after the date the board receives notice of the degree program
  if the degree program:
                           (i)  is approved by the governing board of
  the junior college district; and
                           (ii)  is not an engineering program; and
                     (B)  is considered to have approved the degree
  program after the date described by Paragraph (A) if the conditions
  of that paragraph are satisfied.
         SECTION 33.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.05151 to read as follows:
         Sec. 61.05151.  SEMESTER CREDIT HOURS REQUIRED FOR ASSOCIATE
  DEGREE. (a)  To earn an associate degree, a student may not be
  required by an institution of higher education to complete more
  than the minimum number of semester credit hours required for the
  degree by the Southern Association of Colleges and Schools or its
  successor unless the institution determines that there is a
  compelling academic reason for requiring the completion of
  additional semester credit hours for the degree.
         (b)  The board may review one or more of an institution's
  associate degree programs to ensure compliance with this section.
         (c)  Subsection (a) does not apply to an associate degree
  awarded by an institution to a student enrolled in the institution
  before the 2015 fall semester.  This subsection does not prohibit
  the institution from reducing the number of semester credit hours
  the student must complete to receive the degree.
         SECTION 34.  Section 61.052, Education Code, is amended by
  amending Subsections (a) and (b) and adding Subsection (b-1) to
  read as follows:
         (a)  Each governing board shall submit to the board once each
  year on dates designated by the board a comprehensive list by
  department, division, and school of all courses, together with a
  description of content, scope, and prerequisites of all these
  courses, that will be offered by each institution under the
  supervision of that governing board during the following academic
  year. The list for each institution must also specifically
  identify any course included in the common course numbering system
  under Section 61.832 that has been added to or removed from the
  institution's list for the current academic year, and the board
  shall distribute that information as necessary to accomplish the
  purposes of Section 61.832.
         (b)  After the comprehensive list of courses is submitted by
  a governing board under Subsection (a) [of this section], the
  governing board shall submit on dates designated by the board any
  changes in the comprehensive list of courses to be offered,
  including any changes relating to offering a course included in the
  common course numbering system.
         (b-1)  Each governing board must certify at the time of
  submission under Subsection (a) that the institution does not:
               (1)  prohibit the acceptance of transfer credit based
  solely on the accreditation of the sending institution; or
               (2)  include language in any materials published by the
  institution, whether in printed or electronic form, suggesting that
  such a prohibition exists.
         SECTION 35.  The heading to Section 61.055, Education Code,
  is amended to read as follows:
         Sec. 61.055.  [INITIATION OF NEW DEPARTMENTS, SCHOOLS, AND
  PROGRAMS;] PARTNERSHIPS OR AFFILIATIONS.
         SECTION 36.  Subsection (a), Section 61.055, Education Code,
  is amended to read as follows:
         (a)  The board shall encourage cooperative programs and
  agreements among institutions of higher education, including
  programs and agreements relating to degree offerings, research
  activities, and library and computer sharing.  [Except as otherwise
  provided by law, a new department, school, or degree or certificate
  program approved by the board or its predecessor, the Texas
  Commission on Higher Education, may not be initiated by any
  institution of higher education until the board has made a written
  finding that the department, school, or degree or certificate
  program is adequately financed by legislative appropriation, by
  funds allocated by the board, or by funds from other sources.]
         SECTION 37.  Subsection (l), Section 61.051, Education Code,
  is transferred to Subchapter C, Chapter 61, Education Code,
  redesignated as Section 61.0571, Education Code, and amended to
  read as follows:
         Sec. 61.0571.  BOARD ASSISTANCE TO INSTITUTIONS.
  (a) [(l)]  The board shall advise and offer technical assistance on
  the request of any institution of higher education or system
  administration.
         SECTION 38.  Subsection (n), Section 61.051, Education Code,
  is transferred to Section 61.0571, Education Code, as added by this
  Act, and redesignated as Subsection (b), Section 61.0571, Education
  Code, to read as follows:
         (b) [(n)]  The board shall develop guidelines for
  institutional reporting of student performance.
         SECTION 39.  Subsections (b), (d), and (e), Section 61.0572,
  Education Code, are amended to read as follows:
         (b)  The board shall:
               (1)  determine formulas for space utilization in all
  educational and general buildings and facilities at institutions of
  higher education;
               (2)  devise and promulgate methods to assure maximum
  daily and year-round use of educational and general buildings and
  facilities, including but not limited to maximum scheduling of day
  and night classes and maximum summer school enrollment;
               (3)  consider plans for selective standards of
  admission when institutions of higher education approach capacity
  enrollment;
               (4)  require, and assist the public technical
  institutes, public senior colleges and universities, medical and
  dental units, and other agencies of higher education in developing
  long-range campus master plans for campus development;
               (5)  by rule adopt [endorse, or delay until the next
  succeeding session of the legislature has the opportunity to
  approve or disapprove, the proposed purchase of any real property
  by an institution of higher education, except a public junior
  college;
               [(6)  develop and publish] standards[, rules, and
  regulations] to guide the board's review [institutions and agencies
  of higher education in making application for the approval] of new
  construction and the [major] repair and rehabilitation of all
  buildings and facilities regardless of proposed use; and
               (6) [(7)]  ascertain that the board's standards and
  specifications for new construction, repair, and rehabilitation of
  all buildings and facilities are in accordance with Chapter 469,
  Government Code [Article 9102, Revised Statutes].
         (d) [(1)]  The board[, for purposes of state funding,] may
  review purchases of [and approve as an addition to an institution's
  educational and general buildings and facilities inventory any]
  improved real property added to an institution's educational and
  general buildings and facilities inventory [acquired by gifts or
  lease-purchase only if:
                     [(A)     the institution requests to place the
  improved real property on its educational and general buildings and
  facilities inventory; and
                     [(B)     the value of the improved real property is
  more than $300,000 at the time the institution requests the
  property to be added to the educational and general buildings and
  facilities inventory.
               [(2)     This subsection does not apply to gifts, grants,
  or lease-purchase arrangements intended for clinical or research
  facilities.
         [(e)     Approval of the board is not required to acquire real
  property that is financed by bonds issued under Section 55.17(e)(3)
  or (4), 55.1713-55.1718, 55.1721-55.1728, 55.1735(a)(1), 55.174,
  55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
  55.17721, except that the board shall review all real property to be
  financed by bonds issued under those sections] to determine whether
  the property meets the standards adopted by the board for cost,
  efficiency, space need, and space use, but the purchase of the
  improved real property is not contingent on board review.  
  Standards must be adopted by the board using the negotiated
  rulemaking procedures under Chapter 2008, Government Code.  If the
  property does not meet those standards, the board shall notify the
  governor, the lieutenant governor, the speaker of the house of
  representatives, the governing board of the applicable
  institution, and the Legislative Budget Board.  This subsection
  does not impair the board's authority to collect data relating to
  the improved real property that is added each year to the
  educational and general buildings and facilities inventory of
  institutions of higher education.
         SECTION 40.  Subsections (a) and (b), Section 61.058,
  Education Code, are amended to read as follows:
         (a)  This section does not apply to [Except as provided by
  Subsection (b) of this section, the board shall approve or
  disapprove all new construction and repair and rehabilitation of
  all buildings and facilities at institutions of higher education
  financed from any source provided that:
                     [(A)     the board's consideration and determination
  shall be limited to the purpose for which the new or remodeled
  buildings are to be used to assure conformity with approved space
  utilization standards and the institution's approved programs and
  role and mission if the cost of the project is not more than
  $4,000,000, but the board may consider cost factors and the
  financial implications of the project to the state if the total cost
  is in excess of $4,000,000;
                     [(B)     the requirement of approval for new
  construction applies only to projects the total cost of which is in
  excess of $4,000,000;
                     [(C)     the requirement of approval for major repair
  and rehabilitation of buildings and facilities applies only to a
  project the total cost of which is more than $4,000,000;
                     [(D)     the requirement of approval or disapproval
  by the board does not apply to any new construction or major repair
  and rehabilitation project that is specifically approved by the
  legislature;
                     [(E)     the requirement of approval by the board
  does not apply to a junior college's construction, repair, or
  rehabilitation financed entirely with funds from a source other
  than the state, including funds from ad valorem tax receipts of the
  college, gifts, grants, and donations to the college, and student
  fees; and
                     [(F)     the requirement of approval by the board
  does not apply to construction, repair, or rehabilitation of
  privately owned buildings and facilities located on land leased
  from an institution of higher education if the construction,
  repair, or rehabilitation is financed entirely from funds not under
  the control of the institution, and provided further that:
                           [(i)  the] buildings and facilities that are
  to be used exclusively for auxiliary enterprises[;] and
                           [(ii)  the buildings and facilities] will
  not require appropriations from the legislature for operation,
  maintenance, or repair [unless approval by the board has been
  obtained].
         (b)  The [This section does not apply to construction,
  repair, or rehabilitation financed by bonds issued under Section
  55.17(e)(3) or (4), 55.1713-55.1718, 55.1721-55.1728, 55.174,
  55.1742, 55.1743, 55.1744, 55.1751-55.17592, 55.1768, 55.1771, or
  55.17721, except that the] board may [shall] review all
  construction, repair, or rehabilitation of buildings and
  facilities at institutions of higher education [to be financed by
  bonds issued under those sections] to determine whether the
  construction, rehabilitation, or repair meets the standards
  adopted by board rule for cost, efficiency, space need, and space
  use, but the construction, rehabilitation, or repair is not
  contingent on board review.  Standards must be adopted by the board
  using the negotiated rulemaking procedures under Chapter 2008,
  Government Code.  If the construction, rehabilitation, or repair
  does not meet those standards, the board shall notify the governor,
  the lieutenant governor, the speaker of the house of
  representatives, the governing boards of the applicable
  institutions, and the Legislative Budget Board.  This subsection
  does not impair the board's authority to collect data relating to
  the construction, repair, or rehabilitation of buildings and
  facilities occurring each year at institutions of higher education.
         SECTION 41.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.05821 to read as follows:
         Sec. 61.05821.  CONDITION OF BUILDINGS AND FACILITIES;
  ANNUAL REPORT REQUIRED. Each institution of higher education,
  excluding each public junior college and excluding other agencies
  of higher education, annually shall report to the governing board
  of the institution information regarding the condition of the
  buildings and facilities of the institution, including information
  concerning deferred maintenance with respect to those buildings and
  facilities as defined by the board.
         SECTION 42.  Subsection (a-4), Section 61.051, Education
  Code, is transferred to Subchapter C, Chapter 61, Education Code,
  redesignated as Section 61.0661, Education Code, and amended to
  read as follows:
         Sec. 61.0661.  OPPORTUNITIES FOR GRADUATE MEDICAL
  EDUCATION. (a) [(a-4)]  The board shall conduct [include in the
  five-year master plan developed under Subsection (a-1)] an
  assessment of the adequacy of opportunities for graduates of
  medical schools in this state to enter graduate medical education
  in this state.  The assessment must:
               (1)  compare the number of first-year graduate medical
  education positions available annually with the number of medical
  school graduates;
               (2)  include a statistical analysis of recent trends in
  and projections of the number of medical school graduates and
  first-year graduate medical education positions in this state;
               (3)  develop methods and strategies for achieving a
  ratio for the number of first-year graduate medical education
  positions to the number of medical school graduates in this state of
  at least 1.1 to 1;
               (4)  evaluate current and projected physician
  workforce needs of this state, by total number and by specialty, in
  the development of additional first-year graduate medical
  education positions; and
               (5)  examine whether this state should ensure that a
  first-year graduate medical education position is created in this
  state for each new medical student position established by a
  medical and dental unit.
         (b)  Not later than December 1 of each even-numbered year,
  the board shall report the results of the assessment to the
  governor, the lieutenant governor, the speaker of the house of
  representatives, and the standing committees of the senate and
  house of representatives with primary jurisdiction over higher
  education.
         SECTION 43.  Subsection (h), Section 61.051, Education Code,
  is transferred to Subchapter C, Chapter 61, Education Code,
  redesignated as Section 61.0662, Education Code, and amended to
  read as follows:
         Sec. 61.0662.  INFORMATION ON RESEARCH CONDUCTED BY
  INSTITUTIONS. (a) [(h)     The board shall make continuing studies of
  the needs of the state for research and designate the institutions
  of higher education to perform research as needed.]  The board
  shall [also] maintain an inventory of all institutional and
  programmatic research activities being conducted by the various
  institutions of higher education, whether state-financed or not.
         (b)  Once a year, on dates prescribed by the board, each
  institution of higher education shall report to the board all
  research conducted at that institution during the [last] preceding
  year.
         (c)  All reports required by this section [subsection] shall
  be made subject to the limitations imposed by security regulations
  governing defense contracts for research.
         SECTION 44.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.069 to read as follows:
         Sec. 61.069.  BOARD ROLE IN ESTABLISHING BEST PRACTICES.
  (a)  The board may administer or oversee a program to identify best
  practices only in cases where funding or other restrictions prevent
  entities other than the board from administering the program.
         (b)  The board may initiate a new pilot project only if other
  entities, including nonprofit organizations and institutions of
  higher education, are not engaging in similar projects or if the
  initiative cannot be performed by another entity.
         (c)  The board may use its position as a statewide
  coordinator to assist with matching nonprofit organizations or
  grant-funding entities with institutions of higher education and
  private or independent institutions of higher education to
  implement proven programs and best practices.
         (d)  The board may compile best practices and strategies
  resulting from its review of external studies for use in providing
  technical assistance to institutions of higher education and as the
  basis for the board's statewide policy recommendations.
         SECTION 45.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.0763 to read as follows:
         Sec. 61.0763.  STUDENT LOAN DEFAULT PREVENTION AND FINANCIAL
  AID LITERACY PILOT PROGRAM.  (a)  In this section, "career school
  or college" has the meaning assigned by Section 132.001.
         (b)  Not later than January 1, 2014, the board shall
  establish and administer a pilot program at selected postsecondary
  educational institutions to ensure that students of those
  institutions are informed consumers with regard to all aspects of
  student financial aid, including:
               (1)  the consequences of borrowing to finance a
  student's postsecondary education;
               (2)  the financial consequences of a student's academic
  and career choices; and
               (3)  strategies for avoiding student loan delinquency
  and default.
         (c)  The board shall select at least one institution from
  each of the following categories of postsecondary educational
  institutions to participate in the program:
               (1)  general academic teaching institutions;
               (2)  public junior colleges;
               (3)  private or independent institutions of higher
  education; and
               (4)  career schools or colleges.
         (d)  In selecting postsecondary educational institutions to
  participate in the pilot program, the board shall give priority to
  institutions that have a three-year cohort student loan default
  rate, as reported by the United States Department of Education:
               (1)  of more than 20 percent; or
               (2)  that has above average growth as compared to the
  rates of other postsecondary educational institutions in this
  state.
         (e)  The board, in consultation with postsecondary
  educational institutions, shall adopt rules for the administration
  of the pilot program, including rules governing the selection of
  postsecondary educational institutions to participate in the pilot
  program consistent with the requirements of Subsection (d).
         (f)  The board may contract with one or more entities to
  administer the pilot program according to criteria established by
  board rule.
         (g)  Not later than January 1 of each year, beginning in
  2016:
               (1)  the board shall submit a report to the governor,
  the lieutenant governor, and the speaker of the house of
  representatives regarding the outcomes of the pilot program, as
  reflected in the federal student loan default rates reported for
  the participating institutions; and
               (2)  each participating institution shall submit a
  report to the governor, the lieutenant governor, and the speaker of
  the house of representatives regarding the outcomes of the pilot
  program at the institution, as reflected in the federal student
  loan default rate reported for the institution.
         (h)  This section expires December 31, 2020.
         SECTION 46.  Subchapter C, Chapter 61, Education Code, is
  amended by adding Section 61.07761 to read as follows:
         Sec. 61.07761.  FINANCIAL AID AND OTHER TRUSTEED FUNDS
  ALLOCATION. (a)  For any funds trusteed to the board for
  allocation to institutions of higher education and private or
  independent institutions of higher education, including financial
  aid program funds, the board by rule shall:
               (1)  establish and publish the allocation
  methodologies; and
               (2)  develop procedures to verify the accuracy of the
  application of those allocation methodologies by board staff.
         (b)  The board shall consult with affected stakeholders
  before adopting rules under this section.
         SECTION 47.  Section 61.306, Education Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  The board may not issue a certificate of authority for a
  private postsecondary institution to grant a professional degree or
  to represent that credits earned in this state are applicable
  toward a degree if the institution is chartered in a foreign country
  or has its principal office or primary educational program in a
  foreign country.  In this subsection, "professional degree" 
  includes a 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.).
         SECTION 48.  The heading to Section 61.822, Education Code,
  is amended to read as follows:
         Sec. 61.822.  TRANSFER OF CREDITS; CORE CURRICULUM.
         SECTION 49.  Section 61.822, Education Code, is amended by
  amending Subsection (a) and adding Subsection (a-1) to read as
  follows:
         (a)  The board shall encourage the transferability of lower
  division course credit among institutions of higher education.
         (a-1)  The board, with the assistance of advisory committees
  composed of representatives of institutions of higher education,
  shall develop a recommended core curriculum of at least 42 semester
  credit hours, including a statement of the content, component
  areas, and objectives of the core curriculum. At least a majority
  of the members of any advisory committee named under this section
  shall be faculty members of an institution of higher education. An
  institution shall consult with the faculty of the institution
  before nominating or recommending a person to the board as the
  institution's representative on an advisory committee.
         SECTION 50.  Subchapter C, Chapter 62, Education Code, is
  amended to read as follows:
  SUBCHAPTER C. TEXAS COMPETITIVE KNOWLEDGE [RESEARCH UNIVERSITY
  DEVELOPMENT] FUND
         Sec. 62.051.  DEFINITIONS. In this subchapter:
               (1)  "Eligible institution" means an institution of
  higher education that:
                     (A)  is designated as a research university [or
  emerging research university] under the coordinating board's
  accountability system and, for any three consecutive state fiscal
  years beginning on or after September 1, 2010, made total annual
  research expenditures in an average annual amount of not less than
  $450 million; or
                     (B)  is designated as an emerging research
  university under the coordinating board's accountability system
  and, for any three consecutive state fiscal years beginning on or
  after September 1, 2010, made total annual research expenditures in
  an average annual amount of not less than $50 million.
               (2)  "Fund" means the Texas competitive knowledge fund.
               (3)  "Institution of higher education" has the meaning
  assigned by Section 61.003.
         Sec. 62.052.  PURPOSE. The purpose of this subchapter is to
  provide funding to eligible research universities and emerging
  research universities to support faculty to ensure excellence in
  instruction and research [for the recruitment and retention of
  highly qualified faculty and the enhancement of research
  productivity at those universities].
         Sec. 62.053.  FUND [FUNDING]. (a)  The Texas competitive
  knowledge fund consists of money [For each state fiscal year, the
  coordinating board shall distribute any funds] appropriated by the
  legislature for the purposes of this subchapter[, and any other
  funds made available for the purposes of this subchapter,] to
  eligible institutions [based on the average amount of total
  research funds expended by each institution annually during the
  three most recent state fiscal years, according to the following
  rates:
               [(1)     at least $1 million for every $10 million of the
  average annual amount of those research funds expended by the
  institution, if that average amount for the institution is $50
  million or more; and
               [(2)     at least $500,000 for every $10 million of the
  average annual amount of those research funds expended by the
  institution, if that average amount for the institution is less
  than $50 million].
         (b)  For purposes of this section [Subsection (a)], the
  amount of total research funds expended by an eligible institution
  in a state fiscal year is the amount of those funds as reported to
  the coordinating board by the institution for that fiscal year,
  subject to any adjustment by the coordinating board in accordance
  with the standards and accounting methods the coordinating board
  prescribes for purposes of this section.  [If the funds available
  for distribution for a state fiscal year under Subsection (a) are
  not sufficient to provide the amount specified by Subsection (a)
  for each eligible institution or exceed the amount sufficient for
  that purpose, the available amount shall be distributed in
  proportion to the total amount to which each institution is
  otherwise entitled under Subsection (a).]
         Sec. 62.0535.  INITIAL CONTRIBUTION. For the first state
  fiscal biennium in which an eligible institution receives an
  appropriation under this subchapter, the institution's other
  general revenue appropriations shall be reduced by $5 million for
  the biennium or the amount of the institution's appropriation under
  this subchapter for the biennium. The bill making the
  appropriation must expressly identify the purpose for which the
  appropriations were reduced in accordance with this section.
         [Sec.   62.054.     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 51.  The heading to Chapter 142, Education Code, is
  amended to read as follows:
  CHAPTER 142.  NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
  ADVANCED TECHNOLOGY PROGRAM
         SECTION 52.  Section 142.001, Education Code, is amended by
  amending Subdivisions (1) and (4) and adding Subdivisions (1-a) and
  (6) to read as follows:
               (1)  "Applied research" means research directed at
  gaining the knowledge or understanding necessary to meet a specific
  and recognized need, including the discovery of new scientific
  knowledge that has specific objectives relating to products or
  processes.
               (1-a) "Basic research" means research the primary
  object of which is to gain a fuller fundamental knowledge of the
  subject under study.
               (4)  "Research program [Program]" means the Norman
  Hackerman advanced research program established under this
  chapter.
               (6)  "Technology program" means the advanced
  technology program established under this chapter.
         SECTION 53.  The heading to Section 142.002, Education Code,
  is amended to read as follows:
         Sec. 142.002.  NORMAN HACKERMAN ADVANCED RESEARCH PROGRAM;
  PURPOSE.  
         SECTION 54.  Section 143.002, Education Code, is transferred
  to Chapter 142, Education Code, redesignated as Section 142.0025,
  Education Code, and amended to read as follows:
         Sec. 142.0025 [143.002]. ADVANCED TECHNOLOGY PROGRAM
  [ESTABLISHMENT]; PURPOSE.  (a)  It is essential to the state's
  economic growth that the state [it] exploit the potential of
  technology to advance the development and growth of technology and
  that industry be promoted and expanded. The advanced technology
  program is established as a means to accomplish this purpose.
         (b)  Providing appropriated funds to faculty members of
  institutions of higher education [public] and private or
  independent institutions of higher education to conduct applied
  research is important to the state's welfare and, consequently, is
  an important public purpose for the expenditure of public funds
  because the applied research will enhance the state's economic
  growth by:
               (1)  educating the state's scientists and engineers;
               (2)  creating new products and production processes;
  and
               (3)  contributing to the application of science and
  technology to state businesses.
         SECTION 55.  Section 142.003, Education Code, is amended to
  read as follows:
         Sec. 142.003.  ADMINISTRATION; GUIDELINES AND PROCEDURES.  
  (a)  The coordinating board shall administer the technology program
  and the research program.
         (b)  The coordinating board shall appoint an advisory
  committee that consists of experts in the specified research areas
  of both programs to advise the coordinating board regarding the
  coordinating board's development of research priorities,
  guidelines, and procedures for the selection of specific projects
  at eligible institutions.
         (c)  The guidelines and procedures developed for the
  research program by the coordinating board must:
               (1)  provide for awards on a competitive, peer review
  basis for specific projects at eligible institutions; and
               (2)  require that, as a condition of receiving an
  award, an eligible institution must use a portion of the award to
  support, in connection with the project for which the award is made,
  basic research conducted by:
                     (A)  graduate or undergraduate students, if the
  eligible institution is a medical and dental unit; or
                     (B)  undergraduate students, if the eligible
  institution is any other eligible institution [of higher
  education].
         (d)  The guidelines and procedures developed for the
  technology program by the coordinating board must:
               (1)  provide for determining whether an institution of
  higher education or private or independent institution of higher
  education qualifies as an eligible institution for the purposes of
  the technology program by demonstrating exceptional capability to
  attract federal, state, and private funding for scientific and
  technical research and having an exceptionally strong research
  staff and the necessary equipment and facilities; and
               (2)  provide for awards on a competitive, peer review
  basis for specific projects at eligible institutions.
         (e)  The coordinating board shall encourage projects under
  the technology program that leverage funds from other sources and
  projects that propose innovative, collaborative efforts:
               (1)  across academic disciplines;
               (2)  among two or more eligible institutions; or
               (3)  between an eligible institution or institutions
  and private industry.
         SECTION 56.  Section 143.003, Education Code, is transferred
  to Chapter 142, Education Code, redesignated as Section 142.0035,
  Education Code, and amended to read as follows:
         Sec. 142.0035 [143.003].  TECHNOLOGY PROGRAM: PRIORITY
  RESEARCH AREAS. The technology program may provide support for
  faculty members to conduct research in areas determined by an
  advisory panel appointed by the coordinating board. Initial
  research areas shall include:  agriculture, biotechnology,
  biomedicine, energy, environment, materials science,
  microelectronics, aerospace, marine science, aquaculture,
  telecommunications, manufacturing science, environmental issues
  affecting the Texas-Mexico border region, the reduction of
  industrial, agricultural, and domestic water use, recycling, and
  related disciplines. The advisory committee appointed under
  Section 142.003(b) [panel] may add or delete priority research
  areas as the advisory committee [panel] considers warranted.
         SECTION 57.  Section 142.004, Education Code, is amended by
  amending Subsections (a) and (c) and adding Subsections (c-1) and
  (f) to read as follows:
         (a)  The programs created under this chapter are [program is]
  funded by appropriations and by gifts, grants, and donations made
  for purposes of each [the] program.
         (c)  The funds allocated [appropriated] for the research
  program may be expended to support the particular projects for
  which an award is made and may not be expended for the general
  support of ongoing research at an eligible institution or for the
  construction or remodeling of a facility.
         (c-1)  The funds allocated for the technology program may be:
               (1)  expended to support particular research projects
  for which an award is made, and may not be expended for the general
  support of ongoing research and instruction at an eligible
  institution or for the construction or remodeling of a facility;
  and
               (2)  used to match a grant provided by private industry
  for a particular collaborative research project with an eligible
  institution.
         (f)  The advisory committee appointed under Section
  142.003(b) shall determine when and to what extent funds
  appropriated under this chapter will be allocated to each program
  under this chapter unless the legislature specifies a division in
  the General Appropriations Act.
         SECTION 58.  Sections 142.006 and 142.007, Education Code,
  are amended to read as follows:
         Sec. 142.006.  MERIT REVIEW. (a)  The coordinating board
  shall appoint a committee that consists of experts in the specified
  research areas to evaluate the research program's effectiveness and
  report its findings to the coordinating board not later than
  January 31 of each odd-numbered year.
         (b)  The coordinating board shall appoint a committee
  consisting of representatives of higher education and private
  enterprise advanced technology research organizations to evaluate
  the technology program's effectiveness and report its findings to
  the coordinating board not later than January 31 of each
  odd-numbered year.
         Sec. 142.007.  CONFIDENTIALITY. Information submitted as
  part of a pre-proposal or proposal or related to the evaluation and
  selection of research projects to be funded by the research program
  or technology program is confidential unless made public by
  coordinating board rule.
         SECTION 59.  Section 143.0051, Education Code, is
  transferred to Chapter 142, Education Code, and redesignated as
  Section 142.009, Education Code, to read as follows:
         Sec. 142.009 [143.0051].  APPLIED RESEARCH FOR CLEAN COAL
  PROJECT AND OTHER PROJECTS FOR ELECTRICITY GENERATION. The
  coordinating board shall use money available for the purpose from
  legislative appropriations, including gifts, grants, and
  donations, to support at one or more eligible institutions applied
  research related to:
               (1)  the development, construction, and operation in
  this state of a clean coal project, as defined by Section 5.001,
  Water Code; or
               (2)  electricity generation using lignite coal
  deposits in this state or integrated gasification combined cycle
  technology.
         SECTION 60.  Subsection (f), Section 130.0012, Education
  Code, is amended to read as follows:
         (f)  Each public junior college that offers a baccalaureate
  degree program under this section must enter into an articulation
  agreement for the first five years of the program with one or more
  general academic teaching institutions to ensure that students
  enrolled in the degree program have an opportunity to complete the
  degree if the public junior college ceases to offer the degree
  program. The coordinating board may require a general academic
  teaching institution that offers a comparable degree program to
  enter into an articulation agreement with the public junior college
  as provided by this subsection.
         SECTION 61.  Subsection (f), Section 42.0421, Human
  Resources Code, as added by Chapter 82 (S.B. 265), Acts of the 82nd
  Legislature, Regular Session, 2011, is amended to read as follows:
         (f)  The training required by this section must be
  appropriately targeted and relevant to the age of the children who
  will receive care from the individual receiving training and must
  be provided by a person who:
               (1)  is a training provider registered with the Texas
  Early Care and Education Career Development System's Texas Trainer
  Registry that is maintained by the Texas Head Start State
  Collaboration Office;
               (2)  is an instructor at a public or private secondary
  school, an [or at a public or private] institution of higher
  education, as defined by Section 61.003 [61.801], Education Code,
  or a private college or university accredited by a recognized
  accrediting agency who teaches early childhood development or
  another relevant course, as determined by rules adopted by the
  commissioner of education and the commissioner of higher education;
               (3)  is an employee of a state agency with relevant
  expertise;
               (4)  is a physician, psychologist, licensed
  professional counselor, social worker, or registered nurse;
               (5)  holds a generally recognized credential or
  possesses documented knowledge relevant to the training the person
  will provide;
               (6)  is a registered family home care provider or
  director of a day-care center or group day-care home in good
  standing with the department, if applicable, and who:
                     (A)  has demonstrated core knowledge in child
  development and caregiving; and
                     (B)  is only providing training at the home or
  center in which the provider or director and the person receiving
  training are employed; or
               (7)  has at least two years of experience working in
  child development, a child development program, early childhood
  education, a childhood education program, or a Head Start or Early
  Head Start program and:
                     (A)  has been awarded a Child Development
  Associate (CDA) credential; or
                     (B)  holds at least an associate's degree in child
  development, early childhood education, or a related field.
         SECTION 62.  The following provisions of the Education Code
  are repealed:
               (1)  Chapters 144, 147, 148, and 152;
               (2)  Subchapters J, M, Q, and X, Chapter 51;
               (3)  Subchapters B and D, Chapter 57;
               (4)  Subchapters K, P, Q, U, and W, Chapter 61;
               (5)  Section 51.916; Subsection (f), Section 52.17;
  Section 52.56; Subsections (c) and (d), Section 56.307; Subsection
  (d), Section 56.456; Subsections (c) and (d), Section 56.459;
  Subsection (e), Section 56.407; Subsections (b), (c), (d), and (e),
  Section 58.002; Section 61.0573; and Subsection (c), Section
  61.058;
               (6)  Subdivisions (1) and (3), Section 57.02;
               (7)  Sections 57.41, 57.42, 57.43, 57.44, 57.45, 57.46,
  57.461, 57.47, 57.471, 57.481, 57.50, 58.001, 58.003, 58.004, and
  58.005;
               (8)  Subsections (b), (c), (d), (e), (f), (g), (i),
  (j), (k), (m), (o), (p), and (q), Section 61.051;
               (9)  Subsections (i) and (i-1), Section 61.059;
  Sections 61.0591, 61.0631, and 61.066; Subsection (d), Section
  61.0761; Sections 61.078, 61.088, and 61.660; and Subsection (c),
  Section 62.096; and
               (10)  Sections 143.001, 143.004, 143.005, 143.007, and
  143.008.
         SECTION 63.  The changes in law made by this Act to Section
  52.39, Education Code, apply only to a suit filed under that section
  on or after the effective date of this Act. A suit filed under
  Section 52.39, Education Code, before the effective date of this
  Act is governed by the law in effect on the date the suit is filed,
  and the former law is continued in effect for that purpose.
         SECTION 64.  (a)  The change in law made by this Act to
  Subchapter M, Chapter 56, Education Code, applies beginning with
  TEXAS grants awarded for the 2014 fall semester.  Grants awarded for
  a semester or term before the 2014 fall semester are governed by the
  applicable law in effect immediately before the effective date of
  this Act, and the former law is continued in effect for that
  purpose.
         (b)  Notwithstanding Subsection (a) of this section, a
  student who first receives a TEXAS grant for attendance at a public
  junior college, public state college, or public technical institute
  for a semester or other academic term before the 2014 fall semester
  may continue to receive a TEXAS grant under Subchapter M, Chapter
  56, Education Code, as that subchapter existed immediately before
  the effective date of this Act, as long as the student remains
  eligible for a TEXAS grant under the former law, and, if eligible,
  may continue to receive a TEXAS grant if the student enrolls at an
  eligible institution under Subchapter M, Chapter 56, Education
  Code, as amended by this Act. The Texas Higher Education
  Coordinating Board shall adopt rules to administer this subsection
  and shall notify each student who receives a TEXAS grant in the
  2013-2014 academic year of the provisions of this subsection.
         SECTION 65.  (a)  The change in law made by this Act in
  amending Subchapter Q, Chapter 56, Education Code, applies
  beginning with Texas B-On-time loans awarded for the 2014-2015
  academic year.
         (b)  Notwithstanding Subsection (a) of this section, a
  student who first receives a Texas B-On-time loan for a semester or
  other academic term before the 2014 fall semester may continue to
  receive Texas B-On-time loans under Subchapter Q, Chapter 56,
  Education Code, as that subchapter existed immediately before the
  effective date of this Act, as long as the student remains eligible
  for a Texas B-On-time loan under the former law, and is entitled to
  obtain forgiveness of the loans as permitted by Section 56.462,
  Education Code, as that section existed immediately before the
  effective date of this Act. The Texas Higher Education
  Coordinating Board shall adopt rules to administer this subsection
  and shall notify each student who receives a Texas B-On-time loan in
  the 2013-2014 academic year of the provisions of this subsection.
         SECTION 66.  The changes in law made by this Act to Section
  61.052, Education Code, apply to the comprehensive lists of courses
  offered by public institutions of higher education beginning with
  lists required to be submitted for the 2014-2015 academic year.
  Course lists for an academic year before that academic year are
  covered by the law in effect before the effective date of this Act,
  and that law is continued in effect for that purpose.
         SECTION 67.  The Texas Higher Education Coordinating Board
  shall adopt rules for the administration of Section 61.0763,
  Education Code, as added by this Act, as soon as practicable after
  this Act takes effect.  For that purpose, the coordinating board may
  adopt the initial rules in the manner provided by law for emergency
  rules.
         SECTION 68.  The Texas Higher Education Coordinating Board
  shall adopt rules as required by Section 61.07761, Education Code,
  as added by this Act, as soon as practicable after this Act takes
  effect.  For that purpose, the coordinating board may adopt the
  initial rules in the manner provided by the law for emergency rules.
         SECTION 69.  This Act takes effect September 1, 2013.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 215 passed the Senate on
  April 11, 2013, by the following vote:  Yeas 30, Nays 1;
  May 20, 2013, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 21, 2013, House
  granted request of the Senate; May 25, 2013, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 215 passed the House, with
  amendments, on May 16, 2013, by the following vote:  Yeas 143,
  Nays 2, one present not voting; May 21, 2013, House granted request
  of the Senate for appointment of Conference Committee;
  May 26, 2013, House adopted Conference Committee Report by the
  following vote:  Yeas 135, Nays 5, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor