89R1615 KJE-F     By: Middleton S.B. No. 757       A BILL TO BE ENTITLED   AN ACT   relating to the review, funding, and continuation of degree and   certificate programs at public institutions of higher education   based on certain performance standards.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 61.0512(d), (e), and (f), Education   Code, are amended to read as follows:          (d)  The board shall [may] review the number of degrees or   certificates awarded through a degree or certificate program every   five [four] years or more frequently, at the board's discretion.          (e)  Subject to Section 61.05123(d), the [The] board shall   review each degree or certificate program offered by an institution   of higher education at least every five [10] years after a new   program is established using the criteria prescribed by Subsection   (c).          (f)  Except as provided by Section 61.05123(f), the [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.          SECTION 2.  Subchapter C, Chapter 61, Education Code, is   amended by adding Section 61.05123 to read as follows:          Sec. 61.05123.  PROGRAM PERFORMANCE STANDARDS. (a) In   reviewing a degree or certificate program under Section 61.0512(e),   the board shall first determine using the most recent data   available from the Texas Workforce Commission, institutions of   higher education, the federal government, and any other reliable   source the median student loan debt as a percentage of median annual   earnings for program graduates the following number of years after   graduation:                (1)  for an undergraduate program, two years;                (2)  for a master's program or equivalent, three years;   and                (3)  for a doctoral program or equivalent, five years.          (b)  In determining the median student loan debt as a   percentage of median annual earnings for program graduates under   Subsection (a), the board may not consider, to the extent   practicable, program graduates who enrolled in a more advanced   degree or certificate program not later than two years after   graduation.          (c)  The board shall assign a performance rating of:                (1)  "reward" to a program with a debt as a percentage   of earnings value of 75 percent or less;                (2)  "monitor" to a program with a debt as a percentage   of earnings value of more than 75 percent but not more than 100   percent;                (3)  "sanction" to a program with a debt as a percentage   of earnings value of more than 100 percent but not more than 125   percent; and                (4)  "sunset" to a program with a debt as a percentage   of earnings value of more than 125 percent.          (d)  A degree or certificate program that receives a "reward"   performance rating is exempt from the portion of the review under   Section 61.0512(e) using the criteria prescribed by Section   61.0512(c).          (e)  An institution of higher education may not use for a   degree or certificate program that receives a "sanction" or   "sunset" performance rating money appropriated for formula funding   increases, institutional enhancements, or exceptional items for   the first state fiscal biennium that begins after the program   receives the performance rating.          (f)  Except as provided by Subsection (g), an institution of   higher education that receives notice from the board that a degree   or certificate program offered by the institution has received a   "sunset" performance rating:                (1)  may not enroll new students in the program after   receipt of notice;                (2)  shall:                      (A)  permit each student enrolled in the program   immediately before receipt of notice to complete the program; and                      (B)  inform each student enrolled in the program   regarding the rating and the ramifications of that rating; and                (3)  after each student enrolled in the program   immediately before receipt of the notice graduates or leaves the   program, shall consolidate or eliminate the program, as required by   the board in the notice.          (g)  If the prohibitions and requirements for a degree or   certificate program under Subsection (f) would result in a course   necessary to fulfill an institution of higher education's core   curriculum under Section 61.822 no longer being offered at the   institution, Subsection (f) and Section 61.054 do not apply to the   program to the extent necessary for the institution to offer that   course. If this subsection applies to more than one program at the   institution with respect to the same course, the board shall select   one of those programs to be exempt under this subsection.          (h)  The board shall adopt rules necessary to implement this   section.          SECTION 3.  Section 61.054, Education Code, is amended to   read as follows:          Sec. 61.054.  EXPENDITURES FOR PROGRAMS DISAPPROVED BY   BOARD. No funds appropriated to any institution of higher   education may be expended for any program that [which] has been   disapproved by the board under this subchapter or, subject to   Section 61.05123(g), received a "sunset" performance rating under   Section 61.05123, unless the program is subsequently specifically   approved by the legislature.          SECTION 4.  This Act takes effect September 1, 2025.