85R8120 KJE-D
	By: Giddings	H.B. No. 2223

	A BILL TO BE ENTITLED
	AN ACT
	relating to developmental coursework offered by public
	institutions of higher education under the Texas Success
	Initiative.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1. TEXAS SUCCESS INITIATIVE
	SECTION 1.01.  Chapter 51, Education Code, is amended by
	adding Subchapter F-1, and a heading is added to that subchapter to
	read as follows:
	SUBCHAPTER F-1. TEXAS SUCCESS INITIATIVE
	SECTION 1.02.  Sections 51.3062(a) and (a-1), Education
	Code, are transferred to Subchapter F-1, Chapter 51, Education
	Code, as added by this Act, redesignated as Section 51.331,
	Education Code, and amended to read as follows:
	Sec. 51.331.  DEFINITIONS. (a) The definitions provided by
	Section 61.003 apply to this subchapter [section].
	(b) [(a-1)]  In this subchapter [section]:
	(1)  "Basic academic skills education" means
	non-course competency-based developmental education programs and
	interventions designed for students whose performance falls
	significantly below college readiness standards.
	(2)  "Program evaluation" means a systematic method of
	collecting, analyzing, and using information to answer questions
	about developmental education courses, interventions, and
	policies, particularly about their effectiveness and
	cost-efficiency.
	SECTION 1.03.  Section 51.3062(r), Education Code, is
	transferred to Subchapter F-1, Chapter 51, Education Code, as added
	by this Act, redesignated as Section 51.332, Education Code, and
	amended to read as follows:
	Sec. 51.332.  APPLICABILITY.  [(r)]  This subchapter
	[section] does not apply to:
	(1)  a student who has graduated with an associate or
	baccalaureate degree from an institution of higher education;
	(2)  a student who transfers to an institution of
	higher education from a private or independent institution of
	higher education or an accredited out-of-state institution of
	higher education and who has satisfactorily completed
	college-level coursework;
	(3)  a student who is enrolled in a certificate program
	of one year or less at a public junior college, a public technical
	institute, or a public state college;
	(4)  a student who is serving on active duty as a member
	of:
	(A)  the armed forces of the United States; or
	(B)  the Texas National Guard;
	(5)  a student who is currently serving as and, for at
	least the three-year period preceding enrollment, has served as a
	member of a reserve component of the armed forces of the United
	States; or
	(6)  a student who on or after August 1, 1990, was
	honorably discharged, retired, or released from:
	(A)  active duty as a member of the armed forces of
	the United States or the Texas National Guard; or
	(B)  service as a member of a reserve component of
	the armed forces of the United States.
	SECTION 1.04.  Section 51.3062(b), Education Code, is
	transferred to Subchapter F-1, Chapter 51, Education Code, as added
	by this Act, redesignated as Section 51.333, Education Code, and
	amended to read as follows:
	Sec. 51.333.  COLLEGE READINESS ASSESSMENT REQUIRED. (a)
	[(b)]  An institution of higher education shall, using an
	assessment instrument designated by the board under Section 51.334,
	assess the academic skills of each entering undergraduate student
	to determine the student's readiness to enroll in freshman-level
	academic coursework.
	(b)  An institution of higher education may not use the
	assessment required under this section or the results of the
	assessment as a condition of admission to the institution.
	SECTION 1.05.  Sections 51.3062(c), (f), and (f-1),
	Education Code, are transferred to Subchapter F-1, Chapter 51,
	Education Code, as added by this Act, redesignated as Section
	51.334, Education Code, and amended to read as follows:
	Sec. 51.334.  ASSESSMENT INSTRUMENTS. (a) [(c)]  The board
	shall designate one or more instruments for use by institutions of
	higher education in assessing students under this subchapter [this
	section].
	(b) [(f)]  Each assessment instrument designated by the
	board for use under this subchapter [section] must be diagnostic in
	nature and designed to assess a student's readiness to perform
	freshman-level academic coursework. The board shall prescribe a
	single standard or set of standards for each assessment instrument
	to effectively measure student readiness as demonstrated by current
	research.
	(c) [(f-1)]  For each assessment instrument designated by
	the board for use under this subchapter [section], the board shall
	prescribe a score below which a student is eligible for basic
	academic skills education.
	SECTION 1.06.  Sections 51.3062(g) and (h), Education Code,
	are transferred to Subchapter F-1, Chapter 51, Education Code, as
	added by this Act, redesignated as Section 51.335, Education Code,
	and reordered and amended to read as follows:
	Sec. 51.335.  COLLEGE READINESS ADVISING. (a) [(h)]  If a
	student fails to meet the assessment standards described by Section
	51.334(b) [Subsection (f)], the institution of higher education
	shall work with the student to develop a plan to assist the student
	in becoming ready to perform freshman-level academic coursework.
	The plan must be designed on an individual basis to provide the best
	opportunity for each student to attain that readiness.
	(b) [(g)]  Each institution of higher education shall
	establish a program to advise students regarding coursework and
	other means by which students can develop the academic skills
	required to successfully complete college-level work.
	SECTION 1.07.  Sections 51.3062(i), (i-2), and (t),
	Education Code, are transferred to Subchapter F-1, Chapter 51,
	Education Code, as added by this Act, redesignated as Section
	51.336, Education Code, and amended to read as follows:
	Sec. 51.336.  DEVELOPMENTAL EDUCATION. (a)  An [(i) The]
	institution of higher education may refer a student to
	developmental coursework, including basic academic skills
	education, as considered necessary by the institution to address a
	student's deficiencies in the student's readiness to perform
	freshman-level academic coursework, except that the institution
	may not require enrollment in developmental coursework with respect
	to a student previously determined under Section 51.338(d)
	[Subsection (q-1)] or [determined] by any institution of higher
	education to have met college-readiness standards.
	(b)  An institution of higher education that requires a
	student to enroll in developmental coursework must offer a range of
	developmental coursework, including online coursework, or
	instructional support that includes the integration of technology
	to efficiently address the particular developmental needs of the
	student.
	(c)  Each institution of higher education shall develop and
	implement for all developmental coursework, other than adult basic
	education or basic academic skills education, developmental
	education using a corequisite model under which a student
	concurrently enrolls in a developmental education course and a
	freshman-level course in the same subject area for each subject
	area for which the student is referred to developmental coursework.
	(d)  If a student fails to satisfactorily complete a
	freshman-level course described by Subsection (c), the institution
	of higher education shall:
	(1)  review the plan developed for the student under
	Section 51.335(a) and, if necessary, work with the student to
	revise the plan; and
	(2)  offer to the student a range of competency-based
	education programs to assist the student in becoming ready to
	perform freshman-level academic coursework in the applicable
	subject area.
	(e) [(i-2)]  An institution of higher education must base
	developmental coursework on research-based best practices that
	include the following components:
	(1)  assessment;
	(2)  differentiated placement and instruction;
	(3)  faculty development;
	(4)  support services;
	(5)  program evaluation;
	(6)  integration of technology with an emphasis on
	instructional support programs;
	(7)  non-course-based developmental education
	interventions; and
	(8)  subject to the requirements of Subsection (c),
	course pairing of developmental education courses with
	credit-bearing courses.
	(f) [(t)]  To allow a student to complete any necessary
	developmental coursework in the most efficient and cost-effective
	manner, the board shall encourage institutions of higher education
	to offer various types of developmental coursework that address
	various levels of deficiency in readiness to perform college
	coursework for which course credit may be earned, as determined on
	the basis of assessments as described by Section 51.334 [Subsection
	(f)]. The types of developmental coursework may include:
	(1)  course-based programs;
	(2)  non-course-based programs, such as advising
	programs;
	(3)  module format programs;
	(4)  competency-based education programs;
	(5)  basic academic skills education, if applicable to
	the student; and
	(6)  subject to the requirements of Subsection
	(c), programs under which the student is pairing or taking
	concurrently a developmental education course and another course in
	the same subject area for which course credit may be earned.
	SECTION 1.08.  Sections 51.3062(j) and (k), Education Code,
	are transferred to Subchapter F-1, Chapter 51, Education Code, as
	added by this Act, redesignated as Section 51.337, Education Code,
	and amended to read as follows:
	Sec. 51.337.  REEVALUATION OF COLLEGE READINESS. (a)
	[(j)]  A student may retake an assessment instrument designated by
	the board for use under this subchapter at any time to determine
	readiness to perform freshman-level academic coursework.
	(b) [(k)]  An institution of higher education shall
	determine when a student is ready to perform freshman-level
	academic coursework. The institution must make its determination
	using learning outcomes for developmental education courses
	developed by the board based on established college and career
	readiness standards and student performance on one or more
	appropriate assessments.
	SECTION 1.09.  Sections 51.3062(p), (q), (q-1), (q-2), and
	(s), Education Code, are transferred to Subchapter F-1, Chapter
	51, Education Code, as added by this Act, redesignated as Section
	51.338, Education Code, and reordered and amended to read as
	follows:
	Sec. 51.338.  EXEMPTIONS. (a) [(s)]  An institution of
	higher education may exempt a non-degree-seeking or
	non-certificate-seeking student from the requirements of this
	subchapter [section].
	(b) [(p)]  A student who has achieved a score set by the
	board on the SAT [Scholastic Assessment Test (SAT)] or ACT [the
	American College Test (ACT)] is exempt from the requirements of
	this subchapter [section]. An exemption under this subsection is
	effective for the five-year period following the date a student
	takes the test and achieves the standard set by the board.
	(c) [(q)]  A student who has achieved scores set by the board
	on the questions developed for end-of-course assessment
	instruments under Section 39.0233(a) is exempt from the
	requirements of this subchapter [section]. The exemption is
	effective for the three-year period following the date a student
	takes the last assessment instrument for purposes of this
	subchapter [section] and achieves the standard set by the board.
	This subsection does not apply during any period for which the board
	designates the questions developed for end-of-course assessment
	instruments under Section 39.0233(a) as the primary assessment
	instrument under this subchapter [section], except that the
	three-year period described by this subsection remains in effect
	for students who qualify for an exemption under this subsection
	before that period.
	(d) [(q-1)]  A student who has demonstrated the performance
	standard for college readiness as provided by Section 28.008 on the
	postsecondary readiness assessment instruments adopted under
	Section 39.0238 for Algebra II and English III is exempt from the
	requirements of this subchapter [section] with respect to those
	content areas. The commissioner of higher education by rule shall
	establish the period for which an exemption under this subsection
	is valid.
	(e) [(q-2)]  A student who successfully completes a college
	preparatory course under Section 28.014 is exempt from the
	requirements of this subchapter [section] with respect to the
	content area of the course, provided that the student satisfies the
	requirements of Subsection (f) of this section. The exemption is
	effective for the two-year period following the date the student
	graduates from high school[, and the student must enroll in the
	student's first college-level course in the exempted content area
	in the student's first year of enrollment in an institution of
	higher education. If the student earns less than a C in the
	student's first college-level course in the exempted content area,
	the institution shall advise the student of non-course-based
	options for becoming college ready, such as tutoring or accelerated
	learning]. The exemption applies only at the institution of higher
	education that partners with the school district in which the
	student is enrolled to provide the course, except that the
	commissioner of higher education by rule may determine the manner
	in which the exemption may be applied to institutions of higher
	education other than the partnering institution.
	(f)  A student receiving an exemption under Subsection (e)
	must enroll in a college-level course in the exempted content area
	during the student's first year of enrollment at an institution of
	higher education occurring after the student qualifies for the
	exemption. If the student earns a grade below a "C" for the course,
	the institution shall advise the student of non-course-based
	options for attaining college readiness, such as tutoring or
	accelerated learning.
	(g)  The board [Texas Higher Education Coordinating Board]
	shall:
	(1)  collect and analyze data regarding the
	effectiveness of college preparatory courses provided under
	Section 28.014 in assisting students to become ready to perform
	freshman-level academic coursework, as measured by the rate at
	which students receiving an exemption under Subsection (e)
	successfully complete the course described by Subsection (f); and
	(2)  in November of each even-numbered year, submit a
	[students' successful completion of the first college-level course
	in the exempted content area. The board shall] report of the
	board's [its] findings to [all partnering institutions of higher
	education and independent school districts of each college
	preparatory course evaluated, as well as] the governor, the
	lieutenant governor, the speaker of the house of representatives,
	the standing legislative committees with primary jurisdiction over
	higher education, and each institution of higher education and
	school district that offers a college preparatory course under
	Section 28.014 [and the members of the House and Senate Committees
	on Higher Education].
	SECTION 1.10.  Section 51.3062(i-4), Education Code, is
	transferred to Subchapter F-1, Chapter 51, Education Code, as added
	by this Act, redesignated as Section 51.339, Education Code, and
	amended to read as follows:
	Sec. 51.339.  PROFESSIONAL DEVELOPMENT FOR DEVELOPMENTAL
	EDUCATION. [(i-4)]  The board, in consultation with institutions
	of higher education, shall develop and provide professional
	development programs, including instruction in differentiated
	instruction methods designed to address students' diverse learning
	needs, to faculty and staff who provide developmental coursework,
	including basic academic skills education, to students.
	SECTION 1.11.  Sections 51.3062(l) and (m), Education Code,
	are transferred to Subchapter F-1, Chapter 51, Education Code, as
	added by this Act, redesignated as Section 51.340, Education Code,
	and amended to read as follows:
	Sec. 51.340.  FUNDING. (a) [(l)]  The legislature shall
	appropriate money for approved non-degree-credit developmental
	courses, including basic academic skills education, except that
	legislative appropriations may not be used for developmental
	coursework taken by a student in excess of:
	(1)  for a general academic teaching institution:
	(A)  9 semester credit hours; or
	(B)  18 semester credit hours, if the
	developmental coursework is English for speakers of other languages
	[for a general academic teaching institution]; and
	(2)  18 [27] semester credit hours, for a public junior
	college, public technical institute, or public state college.
	(b) [(m)]  The board may develop formulas to supplement the
	funding of developmental academic programs by institutions of
	higher education, including formulas for supplementing the funding
	of non-course-based programs. The board may develop a performance
	funding formula by which institutions of higher education may
	receive additional funding for each student who completes the
	success initiative [Success Initiative] established under this
	subchapter [section] and then successfully completes college
	coursework. The legislature may appropriate the money required to
	provide the additional funding under those formulas.
	SECTION 1.12.  Section 51.3062(n), Education Code, is
	transferred to Subchapter F-1, Chapter 51, Education Code, as added
	by this Act, redesignated as Section 51.341, Education Code, and
	amended to read as follows:
	Sec. 51.341.  REPORT TO BOARD. [(n)]  Each institution of
	higher education, other than a medical and dental unit, shall
	report annually to the board on the success of its students and the
	effectiveness of its success initiative [Success Initiative].
	SECTION 1.13.  Section 51.3062(u), Education Code, is
	transferred to Subchapter F-1, Chapter 51, Education Code, as added
	by this Act, redesignated as Section 51.342, Education Code, and
	amended to read as follows:
	Sec. 51.342.  REPORT TO SCHOOL DISTRICTS. [(u)]  An
	institution of higher education that administers an assessment
	instrument to students under this subchapter [this section] shall
	report to each school district from which assessed students
	graduated high school all available information regarding student
	scores and performance on the assessment instrument and student
	demographics. [The board shall adopt rules as necessary to
	implement this subsection, including rules for implementing this
	subsection in a manner that complies with federal law regarding
	confidentiality of student medical or educational information,
	including the Health Insurance Portability and Accountability Act
	of 1996 (42 U.S.C. Section 1320d et seq.) and the Family Educational
	Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g), and any
	state law relating to the privacy of student information.]
	SECTION 1.14.  Section 51.3062(o), Education Code, is
	transferred to Subchapter F-1, Chapter 51, Education Code, as added
	by this Act, redesignated as Section 51.343, Education Code, and
	amended to read as follows:
	Sec. 51.343.  EVALUATION OF SUCCESS INITIATIVE. [(o)]  The
	board shall evaluate the effectiveness of the success initiative
	[Success Initiative] on a statewide basis and with respect to each
	institution of higher education.
	SECTION 1.15.  Sections 51.3062(i-1), (i-3), and (t-1),
	Education Code, are transferred to Subchapter F-1, Chapter 51,
	Education Code, as added by this Act, redesignated as Section
	51.344, Education Code, and reordered and amended to read as
	follows:
	Sec. 51.344.  RULES. (a) [(t-1)]  The board may adopt rules
	as necessary to implement this subchapter [section].
	(b) [(i-1)]  The board's rules [commissioner of higher
	education] may [by rule] require an institution of higher education
	to adopt uniform standards for the placement of a student under this
	subchapter [section].
	(c)  The board shall adopt rules to ensure that this
	subchapter is administered in a manner that complies with federal
	law regarding confidentiality of student medical or educational
	information, including the Health Insurance Portability and
	Accountability Act of 1996 (42 U.S.C. Section 1320d et seq.), the
	Family Educational Rights and Privacy Act of 1974 (20 U.S.C.
	Section 1232g), and any state law relating to the privacy of student
	information.
	(d) [(i-3)]  The board shall adopt rules for the
	implementation of Section 51.336(e) [Subsection (i-2)].
	SECTION 1.16.  The heading to Section 51.3062, Education
	Code, is repealed.
	SECTION 1.17.  Each public institution of higher education
	shall ensure that the institution's developmental coursework
	complies with the requirements of Section 51.336(c), Education
	Code, as added by this Act, according to the following schedule:
	(1)  for the 2018-2019 academic year, at least 35
	percent of the institution's developmental coursework must comply;
	(2)  for the 2019-2020 academic year, at least 65
	percent of the institution's developmental coursework must comply;
	and
	(3)  for the 2020-2021 academic year and each
	subsequent academic year, 100 percent of the institution's academic
	coursework must comply.
	SECTION 1.18.  Section 51.340(a), Education Code, as
	transferred, redesignated, and amended from Section 51.3062(l),
	Education Code, by this Act, applies beginning with the 2018-2019
	academic year.
	ARTICLE 2. CONFORMING AMENDMENTS
	SECTION 2.01.  Section 28.014(a), Education Code, is amended
	to read as follows:
	(a)  Each school district shall partner with at least one
	institution of higher education to develop and provide courses in
	college preparatory mathematics and English language arts. The
	courses must be designed:
	(1)  for students at the 12th grade level whose
	performance on:
	(A)  an end-of-course assessment instrument
	required under Section 39.023(c) does not meet college readiness
	standards; or
	(B)  coursework, a college entrance examination,
	or an assessment instrument designated under Section 51.334
	[51.3062(c)] indicates that the student is not ready to perform
	entry-level college coursework; and
	(2)  to prepare students for success in entry-level
	college courses.
	SECTION 2.02.  Section 29.904(d), Education Code, is amended
	to read as follows:
	(d)  A plan developed under this section:
	(1)  must establish clear, achievable goals for
	increasing the percentage of the school district's graduating
	seniors, particularly the graduating seniors attending a high
	school described by Subsection (a), who enroll in an institution of
	higher education for the academic year following graduation;
	(2)  must establish an accurate method of measuring
	progress toward the goals established under Subdivision (1) that
	may include the percentage of district high school students and the
	percentage of students attending a district high school described
	by Subsection (a) who:
	(A)  are enrolled in a course for which a student
	may earn college credit, such as an advanced placement or
	international baccalaureate course or a course offered through
	concurrent enrollment in high school and at an institution of
	higher education;
	(B)  are enrolled in courses that meet the
	curriculum requirements for the distinguished level of achievement
	under the foundation high school program as determined under
	Section 28.025;
	(C)  have submitted a free application for federal
	student aid (FAFSA);
	(D)  are exempt under Section 51.338 [51.3062(p)
	or (q)] from administration of an assessment instrument under
	Subchapter F-1, Chapter 51, [Section 51.3062] or have performed
	successfully on an assessment instrument under that subchapter
	[Section 51.3062];
	(E)  graduate from high school;
	(F)  graduate from an institution of higher
	education; and
	(G)  have taken college entrance examinations and
	the average score of those students on the examinations;
	(3)  must cover a period of at least five years; and
	(4)  may be directed at district students at any level
	of primary or secondary education.
	SECTION 2.03.  Section 39.0233(a), Education Code, is
	amended to read as follows:
	(a)  The agency, in coordination with the Texas Higher
	Education Coordinating Board, shall adopt a series of questions to
	be included in an end-of-course assessment instrument administered
	under Section 39.023(c) to be used for purposes of Subchapter F-1,
	Chapter 51 [Section 51.3062]. The questions adopted under this
	subsection must be developed in a manner consistent with any
	college readiness standards adopted under Section [Sections]
	39.233 and Subchapter F-1, Chapter 51 [51.3062].
	SECTION 2.04.  Section 39.025(a-1), Education Code, is
	amended to read as follows:
	(a-1)  A student enrolled in a college preparatory
	mathematics or English language arts course under Section 28.014
	who satisfies the Texas Success Initiative (TSI) college readiness
	benchmarks prescribed by the Texas Higher Education Coordinating
	Board under Section 51.334 [51.3062(f)] on an assessment instrument
	designated by the coordinating board [Texas Higher Education
	Coordinating Board] under that section [Section 51.3062(c)]
	administered at the end of the college preparatory mathematics or
	English language arts course satisfies the requirements concerning
	and is exempt from the administration of the Algebra I or the
	English I and English II end-of-course assessment instruments, as
	applicable, as prescribed by Section 39.023(c), even if the student
	did not perform satisfactorily on a previous administration of the
	applicable end-of-course assessment instrument. A student who
	fails to perform satisfactorily on the assessment instrument
	designated by the coordinating board [Texas Higher Education
	Coordinating Board] under Section 51.334 [51.3062(c)] administered
	as provided by this subsection may retake that assessment
	instrument for purposes of this subsection or may take the
	appropriate end-of-course assessment instrument.
	SECTION 2.05.  Sections 39.053(c) and (c-2), Education Code,
	are amended to read as follows:
	(c)  School districts and campuses must be evaluated based on
	five domains of indicators of achievement adopted under this
	section that include:
	(1)  in the first domain, the results of:
	(A)  assessment instruments required under
	Sections 39.023(a), (c), and (l), including the results of
	assessment instruments required for graduation retaken by a
	student, aggregated across grade levels by subject area, including:
	(i)  for the performance standard determined
	by the commissioner under Section 39.0241(a), the percentage of
	students who performed satisfactorily on the assessment
	instruments, aggregated across grade levels by subject area; and
	(ii)  for the college readiness performance
	standard as determined under Section 39.0241, the percentage of
	students who performed satisfactorily on the assessment
	instruments, aggregated across grade levels by subject area; and
	(B)  assessment instruments required under
	Section 39.023(b), aggregated across grade levels by subject area,
	including the percentage of students who performed satisfactorily
	on the assessment instruments, as determined by the performance
	standard adopted by the agency, aggregated across grade levels by
	subject area;
	(2)  in the second domain:
	(A)  for assessment instruments under Subdivision
	(1)(A):
	(i)  for the performance standard determined
	by the commissioner under Section 39.0241(a), the percentage of
	students who met the standard for annual improvement on the
	assessment instruments, as determined by the commissioner by rule
	or by the method for measuring annual improvement under Section
	39.034, aggregated across grade levels by subject area; and
	(ii)  for the college readiness performance
	standard as determined under Section 39.0241, the percentage of
	students who met the standard for annual improvement on the
	assessment instruments, as determined by the commissioner by rule
	or by the method for measuring annual improvement under Section
	39.034, aggregated across grade levels by subject area; and
	(B)  for assessment instruments under Subdivision
	(1)(B), the percentage of students who met the standard for annual
	improvement on the assessment instruments, as determined by the
	commissioner by rule or by the method for measuring annual
	improvement under Section 39.034, aggregated across grade levels by
	subject area;
	(3)  in the third domain, the student academic
	achievement differentials among students from different racial and
	ethnic groups and socioeconomic backgrounds;
	(4)  in the fourth domain:
	(A)  for evaluating the performance of high school
	campuses and districts that include high school campuses:
	(i)  dropout rates, including dropout rates
	and district completion rates for grade levels 9 through 12,
	computed in accordance with standards and definitions adopted by
	the National Center for Education Statistics of the United States
	Department of Education;
	(ii)  high school graduation rates, computed
	in accordance with standards and definitions adopted in compliance
	with the No Child Left Behind Act of 2001 (20 U.S.C. Section 6301 et
	seq.);
	(iii)  the percentage of students who
	successfully completed the curriculum requirements for the
	distinguished level of achievement under the foundation high school
	program;
	(iv)  the percentage of students who
	successfully completed the curriculum requirements for an
	endorsement under Section 28.025(c-1);
	(v)  the percentage of students who
	completed a coherent sequence of career and technical courses;
	(vi)  the percentage of students who satisfy
	the Texas Success Initiative (TSI) college readiness benchmarks
	prescribed by the Texas Higher Education Coordinating Board under
	Section 51.334 [51.3062(f)] on an assessment instrument in reading,
	writing, or mathematics designated by the coordinating board [Texas
	Higher Education Coordinating Board] under that section [Section
	51.3062(c)];
	(vii)  the percentage of students who earn
	at least 12 hours of postsecondary credit required for the
	foundation high school program under Section 28.025 or to earn an
	endorsement under Section 28.025(c-1);
	(viii)  the percentage of students who have
	completed an advanced placement course;
	(ix)  the percentage of students who enlist
	in the armed forces of the United States; and
	(x)  the percentage of students who earn an
	industry certification;
	(B)  for evaluating the performance of middle and
	junior high school and elementary school campuses and districts
	that include those campuses:
	(i)  student attendance; and
	(ii)  for middle and junior high school
	campuses:
	(a)  dropout rates, computed in the
	manner described by Paragraph (A)(i); and
	(b)  the percentage of students in
	grades seven and eight who receive instruction in preparing for
	high school, college, and a career that includes information
	regarding the creation of a high school personal graduation plan
	under Section 28.02121, the distinguished level of achievement
	described by Section 28.025(b-15), each endorsement described by
	Section 28.025(c-1), college readiness standards, and potential
	career choices and the education needed to enter those careers; and
	(C)  any additional indicators of student
	achievement not associated with performance on standardized
	assessment instruments determined appropriate for consideration by
	the commissioner in consultation with educators, parents, business
	and industry representatives, and employers; and
	(5)  in the fifth domain, three programs or specific
	categories of performance related to community and student
	engagement locally selected and evaluated as provided by Section
	39.0546.
	(c-2)  The commissioner by rule shall determine a method by
	which a student's performance may be included in determining the
	performance rating of a school district or campus under Section
	39.054 if, before the student graduates, the student:
	(1)  satisfies the Texas Success Initiative (TSI)
	college readiness benchmarks prescribed by the Texas Higher
	Education Coordinating Board under Section 51.334 [51.3062(f)] on
	an assessment instrument designated by the coordinating board
	[Texas Higher Education Coordinating Board] under that section
	[Section 51.3062(c)]; or
	(2)  performs satisfactorily on an assessment
	instrument under Section 39.023(c), notwithstanding Subsection (d)
	of this section.
	SECTION 2.06.  Section 51.406(c), Education Code, is amended
	to read as follows:
	(c)  A rule or policy of a state agency, including the Texas
	Higher Education Coordinating Board, in effect on June 1, 2011,
	that requires reporting by a university system or an institution of
	higher education has no effect on or after September 1, 2013, unless
	the rule or policy is affirmatively and formally readopted before
	that date by formal administrative rule published in the Texas
	Register and adopted in compliance with Chapter 2001, Government
	Code.  This subsection does not apply to:
	(1)  a rule or policy for which the authorizing statute
	is listed in Subsection (b);
	(2)  a rule or policy for which the authorizing statute
	is repealed on or before September 1, 2013, by legislation enacted
	by the legislature that becomes law; or
	(3)  a report required under any of the following
	provisions:
	(A)  Article 59.06(g)(1), Code of Criminal
	Procedure;
	(B)  Section 51.005;
	(C)  Section 51.0051;
	(D)  Subchapter F-1 of this chapter [Section
	51.3062];
	(E)  Section 51.402;
	(F)  Section 56.039;
	(G)  [Section 61.051(k);
	[(H)]  Section 61.059;
	(H) [(I)]  Section 62.095(b);
	(I) [(J)]  Section 62.098;
	(J) [(K)]  Section 411.187(b), Government Code;
	(K) [(L)]  Subchapter C, Chapter 606, Government
	Code;
	(L) [(M)]  Subchapter E, Chapter 815, Government
	Code; or
	(M) [(N)]  Chapter 1551, Insurance Code.
	SECTION 2.07.  Section 54.2001(b), Education Code, is
	amended to read as follows:
	(b)  In determining whether a person has completed a number
	of semester credit hours that is considered to be excessive for
	purposes of Subsection (a)(2), semester credit hours completed
	include transfer credit hours that count toward the person's
	undergraduate degree or certificate program course requirements
	but exclude:
	(1)  hours earned exclusively by examination;
	(2)  hours earned for a course for which the person
	received credit toward the person's high school academic
	requirements; and
	(3)  hours earned for developmental coursework that an
	institution of higher education required the person to take under
	Subchapter F-1, Chapter 51, [Section 51.3062] or under the [former]
	provisions of former Section 51.306 or former Section 51.3062.
	SECTION 2.08.  Section 56.3041(a), Education Code, is
	amended to read as follows:
	(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 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), (C), or (D) as follows:
	(A)  be a graduate of a public or accredited
	private high school in this state who completed the foundation high
	school program established under Section 28.025 or its equivalent
	and have accomplished any two or more of the following:
	(i)  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 51.334 [51.3062(f)] on any
	assessment instrument designated by the coordinating board under
	that section [Section 51.3062(c)] or qualification for an exemption
	as described by Section 51.338(b), (c), or (d) [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 or at least one advanced career
	and technical or technology applications course;
	(B)  have received an associate degree from a
	public or private institution of higher education;
	(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 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 institution not later than 12
	months after being honorably discharged from military service;
	(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 2.09.  Section 61.07611(a), Education Code, is
	amended to read as follows:
	(a)  To serve students who require developmental education
	in an effective and cost-effective manner, the board shall develop
	a statewide plan for developmental education to be provided under
	Subchapter F-1, Chapter 51, [Section 51.3062] that:
	(1)  assigns primary responsibility for developmental
	education to public junior colleges, public state colleges, and
	public technical institutes; and
	(2)  provides for using technology, to the greatest
	extent practicable consistent with best practices, to provide
	developmental education to students.
	SECTION 2.10.  Section 315.004, Labor Code, is amended to
	read as follows:
	Sec. 315.004.  ADULT EDUCATION ASSESSMENT.  The commission
	shall, in consultation with the Texas Higher Education Coordinating
	Board and the Texas Education Agency, review the standardized
	assessment mechanism required under Section 315.002(a)(7) and
	recommend any changes necessary to align the assessment with the
	assessments designated under Section 51.334 [51.3062], Education
	Code, to allow for the proper placement of a student in an adult
	basic education course or to provide the student with the proper
	developmental or English as a second language coursework, as
	appropriate.
	ARTICLE 3. EFFECTIVE DATE
	SECTION 3.01.  This Act takes effect immediately if it
	receives a vote of two-thirds of all the members elected to each
	house, as provided by Section 39, Article III, Texas Constitution.
	If this Act does not receive the vote necessary for immediate
	effect, this Act takes effect September 1, 2017.