85R24462 KJE-D     By: Giddings, White H.B. No. 2223     Substitute the following for H.B. No. 2223:     By:  Lozano C.S.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 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.     Each institution shall ensure that at least 75 percent of the   institution's students enrolled in developmental coursework other   than adult basic education or basic academic skills education are   enrolled in developmental coursework described by this subsection.          (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)  for a public junior college, public technical   institute, or public state college:                      (A)  18 semester credit hours; or                      (B)  27 semester credit hours, if the   developmental coursework is English for speakers of other languages   [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 25   percent of the institution's students enrolled in developmental   coursework other than adult basic education or basic academic   skills education must be enrolled in developmental coursework that   complies with those requirements;                (2)  for the 2019-2020 academic year, at least 50   percent of the institution's students enrolled in developmental   coursework other than adult basic education or basic academic   skills education must be enrolled in developmental coursework that   complies with those requirements; and                (3)  for the 2020-2021 academic year and each   subsequent academic year, at least 75 percent of the institution's   students enrolled in developmental coursework other than adult   basic education or basic academic skills education must be enrolled   in developmental coursework that complies with those requirements.          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.