By: Ogden  S.B. No. 1581
         (In the Senate - Filed March 11, 2011; March 23, 2011, read
  first time and referred to Committee on Finance; April 26, 2011,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 9, Nays 6; April 26, 2011, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1581 By:  Ogden
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to state fiscal matters related to public and higher
  education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
  ARTICLE 1.  REDUCTION OF EXPENDITURES AND IMPOSITION OF CHARGES
  GENERALLY
         SECTION 1.01.  This article applies to any state agency,
  school, institution of higher education, or other entity that
  receives an appropriation under Article III of the General
  Appropriations Act.
         SECTION 1.02.  Notwithstanding any other statute of this
  state, each entity to which this article applies is authorized to
  reduce or recover expenditures by:
               (1)  consolidating any reports or publications the
  entity is required to make and filing or delivering any of those
  reports or publications exclusively by electronic means;
               (2)  extending the effective period of any license,
  permit, or registration the entity grants or administers;
               (3)  entering into a contract with another governmental
  entity or with a private vendor to carry out any of the entity's
  duties;
               (4)  adopting additional eligibility requirements for
  persons who receive benefits under any law the entity administers
  to ensure that those benefits are received by the most deserving
  persons consistent with the purposes for which the benefits are
  provided;
               (5)  providing that any communication between the
  entity and another person and any document required to be delivered
  to or by the entity, including any application, notice, billing
  statement, receipt, or certificate, may be made or delivered by
  e-mail or through the Internet; and
               (6)  adopting and collecting fees or charges to cover
  any costs the entity incurs in performing its lawful functions.
  ARTICLE 2.  FISCAL MATTERS CONCERNING ADVANCED PLACEMENT
         SECTION 2.01.  Subsection (h), Section 28.053, Education
  Code, is amended to read as follows:
         (h)  The commissioner may enter into agreements with the
  college board and the International Baccalaureate Organization to
  pay for all examinations taken by eligible public school students.
  An eligible student is a student [one] who:
               (1)  takes a college advanced placement or
  international baccalaureate course at a public school or who is
  recommended by the student's principal or teacher to take the test;
  and
               (2)  demonstrates financial need as determined in
  accordance with guidelines adopted by the board that are consistent
  with the definition of financial need adopted by the college board
  or the International Baccalaureate Organization.
  ARTICLE 3.  FISCAL MATTERS CONCERNING EARLY HIGH SCHOOL GRADUATION
         SECTION 3.01.  Subchapter K, Chapter 56, Education Code, is
  amended by adding Section 56.2012 to read as follows:
         Sec. 56.2012.  EXPIRATION OF SUBCHAPTER; ELIGIBILITY
  CLOSED. (a)  This subchapter expires September 1, 2017.
         (b)  Notwithstanding Section 56.203, a person may not
  receive an award under this subchapter if the person graduates from
  high school on or after September 1, 2011.
         SECTION 3.02.  Subsection (b), Section 54.213, Education
  Code, is amended to read as follows:
         (b)  [Savings to the foundation school fund that occur as a
  result of the Early High School Graduation Scholarship program
  created in Subchapter K, Chapter 56, and that are not required for
  the funding of state credits for tuition and mandatory fees under
  Section 56.204 or school district credits under Section 56.2075
  shall be used first to provide tuition exemptions under Section
  54.212. Any of those savings remaining after providing tuition
  exemptions under Section 54.212 shall be used to provide tuition
  exemptions under Section 54.214.] The Texas Education Agency shall
  [also] accept and make available to provide tuition exemptions
  under Section 54.214 gifts, grants, and donations made to the
  agency for that purpose.  The commissioner of education shall
  transfer those funds to the Texas Higher Education Coordinating
  Board to distribute to institutions of higher education that
  provide exemptions under that section  [Payment of funds under this
  subsection shall be made in the manner provided by Section 56.207
  for state credits under Subchapter K, Chapter 56].
         SECTION 3.03.  Section 56.210, Education Code, is repealed.
  ARTICLE 4.  FISCAL MATTERS CONCERNING TUITION EXEMPTIONS
         SECTION 4.01.  Subsection (c), Section 54.214, Education
  Code, is amended to read as follows:
         (c)  To be eligible for an exemption under this section, a
  person must:
               (1)  be a resident of this state;
               (2)  be a school employee serving in any capacity;
               (3)  for the initial term or semester for which the
  person receives an exemption under this section, have worked as an
  educational aide for at least one school year during the five years
  preceding that term or semester;
               (4)  establish financial need as determined by
  coordinating board rule;
               (5)  be enrolled at the institution of higher education
  granting the exemption in courses required for teacher
  certification in one or more subject areas determined by the Texas
  Education Agency to be experiencing a critical shortage of teachers
  at the public schools in this state [at the institution of higher
  education granting the exemption];
               (6)  maintain an acceptable grade point average as
  determined by coordinating board rule; and
               (7)  comply with any other requirements adopted by the
  coordinating board under this section.
         SECTION 4.02.  The change in law made by this article applies
  beginning with tuition and fees charged for the 2011 fall semester.
  Tuition and fees charged for a term or semester before the 2011 fall
  semester are covered by the law in effect during the term or
  semester for which the tuition and fees are charged, and the former
  law is continued in effect for that purpose.
  ARTICLE 5.  FISCAL MATTERS CONCERNING CERTAIN DISTRIBUTIONS TO
  INSTITUTIONS OF HIGHER EDUCATION
         SECTION 5.01.  Subchapter A, Chapter 63, Education Code, is
  amended by adding Section 63.0035 to read as follows:
         Sec. 63.0035.  LIQUIDATION OF INSTITUTION'S SHARE OF FUND.
  (a)  The comptroller in consultation with the board of regents of
  The University of Texas System shall establish procedures by which
  any institution entitled in a state fiscal year to receive a
  distribution from the permanent fund established under this
  subchapter may, in lieu of receiving the distribution owed to the
  institution for that year, request and receive a liquidation
  distribution of the institution's proportional share of the total
  value of the fund.  The board of regents shall make the liquidation
  distribution in accordance with the procedures established under
  this section.
         (b)  For purposes of making a liquidation distribution under
  this section:
               (1)  the institution's proportional share of the total
  value of the fund is the same as the institution's proportional
  share of the total amount of distributions from the fund made during
  the preceding state fiscal year; and
               (2)  the total value of the fund is determined at the
  close of business on the date on which the institution makes its
  request for a liquidation distribution.
         (c)  Any expenses associated with the liquidation
  distribution shall be deducted from the amount of the liquidation
  distribution before payment is made to the institution.
         (d)  Notwithstanding Section 63.002(c), an institution that
  receives a liquidation distribution of the institution's
  proportional share of the fund is not entitled to any subsequent
  distributions from the fund.
         (e)  Notwithstanding the other provisions of this
  subchapter, an institution that receives a liquidation
  distribution under this section may use those funds for any lawful
  purpose of the institution.  The comptroller shall establish
  procedures to ensure that a liquidation distribution to Baylor
  College of Medicine is used for public purposes consistent with a
  contract in effect under Section 61.092.
  ARTICLE 6.  FISCAL MATTERS CONCERNING DUAL HIGH SCHOOL AND JUNIOR
  COLLEGE CREDIT
         SECTION 6.01.  Subsection (c), Section 130.008, Education
  Code, is amended to read as follows:
         (c)  The contact hours attributable to the enrollment of a
  high school student in a course offered for joint high school and
  junior college credit under this section, excluding a course for
  which the student attending high school may receive course credit
  toward the physical education curriculum requirement under Section
  28.002(a)(2)(C), shall be included in the contact hours used to
  determine the junior college's proportionate share of the state
  money appropriated and distributed to public junior colleges under
  Sections 130.003 and 130.0031, even if the junior college waives
  all or part of the tuition or fees for the student under Subsection
  (b).
         SECTION 6.02.  This article applies beginning with funding
  for the 2011 fall semester.
  ARTICLE 7.  EFFECTIVE DATE
         SECTION 7.01.  This Act takes effect September 1, 2011.
 
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