Proposed Rules Title 19

TITLE 19. EDUCATION

PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

SUBCHAPTER A. GENERAL PROVISIONS

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 1, Subchapter A, §1.14, concerning negotiated rulemaking. Specifically, this repeal will remove a rule that is unnecessary because negotiated rulemaking procedures are laid out in Chapter 2008 of the Texas Government Code.

The Coordinating Board has the authority to repeal this rule under its general rulemaking authority granted by Texas Education Code, Section 61.027.

Nichole Bunker-Henderson, General Counsel, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rule. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Nichole Bunker-Henderson, General Counsel, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the repeal of a rule that is unnecessary because negotiated rulemaking procedures are laid out in Chapter 2008 of the Texas Government Code. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rule will not create or eliminate a government program;

(2) implementation of the rule will not require the creation or elimination of employee positions;

(3) implementation of the rule will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rule will not require an increase or decrease in fees paid to the agency;

(5) the rule will not create a new rule;

(6) the rule will not limit an existing rule;

(7) the rule will not change the number of individuals subject to the rule; and

(8) the rule will not affect this state's economy.

Comments on the proposal may be submitted to Kimberly Fuchs, Assistant General Counsel, P.O. Box 12788, Austin, Texas 78711-2788, or via email at Kimberly.Fuchs@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal is proposed under Texas Education Code, Section 61.027, which provides the Coordinating Board with the authority to adopt and publish rules in accordance with Texas Government Code, Chapter 2001.

The proposed repeal affects Texas Administrative Code, Chapter 1, Subchapter A, Section 1.14, Negotiated Rulemaking.

§1.14.Negotiated Rulemaking.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403441

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6297

SUBCHAPTER W. OPPORTUNITY HIGH SCHOOL DIPLOMA ADVISORY COMMITTEE

19 TAC §§1.260 - 1.268

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in, Texas Administrative Code, Title 19, Part 1, Chapter 1, Subchapter W, §§1.260 - 1.268, concerning the Opportunity High School Diploma Advisory Committee. Specifically, these new sections will establish an Advisory Committee to inform the administration and components of the Opportunity High School Diploma.

The Coordinating Board proposes the establishment of the Opportunity High School Diploma Advisory Committee to advise and counsel the Coordinating Board and its governing board on the administration of the Opportunity High School Diploma through ongoing, structured review and recommendation of program components. The proposed new rules provide clarity and guidance around committee membership, meeting cadence, and charges.

Specifically, these new sections will outline the authority and purpose, definitions, membership and officers, duration of the committee, meeting frequency, committee tasks, review requirement, committee recommendations, and the effective date of the rules.

Rule 1.260, Authority and Specific Purposes of the Opportunity High School Diploma Advisory Committee, authorizes the Coordinating Board to adopt rules under Texas Government Code, §2110.0012, and Texas Education Code ,chapter 130, subchapter O. It states that the purpose of this new rule is to create an Advisory Committee to advise and counsel the Commissioner and Board on the Opportunity High School Diploma.

Rule 1.261, Definitions, defines words and terms that are key to the understanding and administration of the Advisory Committee.

Rule 1.262, Committee Membership and Officers, outlines the members that will make up the Advisory Committee. It specifies total number of members, eligibility criteria, membership and officer appointments, and term durations.

Rule 1.263, Duration, sets the term for the Advisory Committee and allows for its re-establishment.

Rule 1.264, Meetings, specifies a minimum of one Advisory Committee meeting per year and allows for special meetings to be called by the presiding officer.

Rule 1.265, Tasks Assigned to the Committee, lists the charges placed on the Advisory Committee to provide to the Board and Commissioner including those relating to general administration of the Opportunity High School Diploma, study and recommendations on program components, and identification of funding to help propagate the program. It also allows for additional charges to be issued by the Board or the Commissioner.

Rule 1.266, Requirement to Review, details the process and cadence to be followed by the Advisory Committee to review the Opportunity High School Diploma instructional outcomes, performance expectations, and assessments.

Rule 1.267, Recommendations, instructs the Advisory Committee to provide recommendations to the Board and Commissioner that help improve the Opportunity High School Diploma program.

Rule 1.268, Effective Date of Rules, states the date when this subchapter becomes effective.

Lee Rector, Associate Commissioner for Workforce Education, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Lee Rector, Associate Commissioner for Workforce Education, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the establishing of an Opportunity High School Diploma Advisory Committee to advise and counsel the Texas Higher Education Coordinating Board and its governing board on the administration of the Opportunity High School Diploma through ongoing, structured review and recommendation of program components. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Lee Rector, Associate Commissioner for Workforce Education, P.O. Box 12788, Austin, Texas 78711-2788, or via email at rulescomments@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under Texas Education Code, Section 130.001, which provides the Coordinating Board with the authority to adopt rules and regulations for public junior colleges; and §61.026, granting the Coordinating Board authority to establish advisory committees.

The proposed new sections affect Texas Administrative Code, Title 19, Part 1, Chapter 1, Subchapter W.

§1.260.Authority and Specific Purposes of the Opportunity High School Diploma Advisory Committee.

(a) Authority. Statutory authority for this subchapter is provided in Texas Government Code. §2110.0012, and Texas Education Code, chapter 130, subchapter O.

(b) Purposes. The Opportunity High School Diploma Advisory Committee is created to provide the Commissioner and Board with advice and counsel with respect to the opportunity high school diploma program to achieve the goal of providing alternative means for students enrolled in a workforce education program at a junior college to earn a competency-based high school diploma.

§1.261.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Coordinating Board--Unless context indicates otherwise, the agency known as the Texas Higher Education Coordinating Board and staff employed by the agency to carry out assigned duties of the agency.

§1.262.Committee Membership and Officers.

(a) Membership shall consist of individuals with knowledge of high school completion competencies.

(b) Membership on the committee shall not exceed seven and should include:

(1) One member from the Texas Workforce Commission, as designated by the Executive Director of the Commission, and

(2) One member from the Texas Education Agency, as designated by the Commissioner of Education.

(d) The Commissioner shall select the presiding officer, who will be responsible for conducting meetings and conveying committee recommendations to the Board and the Commissioner.

(e) Each member shall serve a three-year staggered term, unless otherwise provided by the Commissioner.

§1.263.Duration.

The committee shall continue until October 31, 2028, and may be reestablished by the Board.

§1.264.Meetings.

The committee shall meet at least once a year. Special meetings may be called as deemed appropriate by the presiding officer.

§1.265.Tasks Assigned the Committee.

Tasks assigned to the committee include:

(1) Provide counsel to the Board and Commissioner on the administration of the Opportunity High School Diploma program;

(2) Study and make recommendation to the Board and Commissioner on the instructional outcomes and performance expectations;

(3) Study and make recommendations to the Board and Commissioner on assessments;

(4) Identify funding sources or mechanisms to encourage and facilitate participation in the Opportunity High School Diploma program; and

(5) Any other charges issued by the Board or the Commissioner.

§1.266.Requirement to Review.

The Advisory Committee shall convene a subject matter expert peer group not less than once every three years or as determined by the presiding officer to review the instructional outcomes, performance expectations, and assessments for each of the five core program competencies.

(1) Each peer group shall review the instructional outcomes and performance expectations associated with the core program competency and provide recommendations regarding proposed revisions to the Advisory Committee.

(2) Each peer group shall review the assessments associated with the core program competency and provide recommendations regarding proposed revisions to the approved list of assessments to the Advisory Committee.

§1.267.Recommendations.

The committee shall consider and make recommendations to the Board and Commissioner on policies and rule revisions to improve the Opportunity High School Diploma program.

§1.268.Effective Date of Rules.

This subchapter is effective November 1, 2024.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403442

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6344

CHAPTER 2. ACADEMIC AND WORKFORCE EDUCATION

SUBCHAPTER G. APPROVAL PROCESS FOR NEW DOCTORAL AND PROFESSIONAL DEGREE PROGRAMS

19 TAC §2.143

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 2, Subchapter G, §2.143, concerning the approval process for new doctoral and professional degree programs. Specifically, the proposed amendments provide an exception to the one-year waiting period after submitting a planning notification for professional programs if the institution has already received Board approval for the same degree or is acquiring the program from another public, private, or independent institution of higher education. This amendment would permit a faster path toward program approval for a program that has already been previously approved by the Board or is fully-accredited and currently operating. There is a reduced need for long-term planning for a program that is currently in existence or operating. An institution is unlikely to need a full-year to plan because it does not need to create the program, i.e. the program may require modification, but the essential elements required by board rule should already be in place for an approved or operating program.

Texas Education Code, §61.0512, states that a public institution of higher education may not offer any new degree program, including doctoral and professional degrees, without Board approval.

David Troutman, Deputy Commissioner for Academic Affairs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

David Troutman, Deputy Commissioner for Academic Affairs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be streamlined approval of professional programs that have met certain criteria. The proposed amendments provide an exception to the one-year waiting period after submitting a planning notification for professional programs if the institution has already received Board approval for the same degree or is acquiring the program from another public, private, or independent institution of higher education. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to David Troutman, Deputy Commissioner for Academic Affairs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at RulesComments@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under Texas Education Code, Sections 61.051 and 61.0512, which provide that no new degree program may be added at any public institution of higher education except with specific prior approval of the Coordinating Board.

The proposed amendments affect Texas Education Code, Sections 61.051 and 61.0512.

§2.143.Submission of Planning Notification.

(a) An institution of higher education must submit a Planning Notification to Board Staff in accordance with subchapter C, §2.41 of this chapter (relating to Planning Notification: Notice of Intent to Plan)[~~, at least one year prior to submitting an administratively complete request for a new doctoral or professional degree~~].

(b) An institution seeking approval for a new doctoral or professional degree program shall submit the required planning notification at least one year prior to submitting an administratively complete request for a new doctoral or professional degree.

(c) An institution seeking approval for a professional degree program meeting one of the following criteria is excepted from the requirement under subsection (b) of this section:

(1) The institution previously received Board approval for the same professional degree program;

(2) The institution is acquiring the proposed professional degree program from another institution of higher of education as defined in Texas Education Code, §61.003(8), and the program is currently accredited and previously received Board approval; or

(3) The institution is acquiring the proposed professional degree program from another private or independent institution of higher of education as defined in Texas Education Code, §61.003(15), and the program is currently fully accredited and in good standing with its institutional accreditor and discipline-specific accreditor, as applicable.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403443

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6431

CHAPTER 5. RULES APPLYING TO PUBLIC UNIVERSITIES, HEALTH-RELATED INSTITUTIONS, AND/OR SELECTED PUBLIC COLLEGES OF HIGHER EDUCATION IN TEXAS

SUBCHAPTER G. STRATEGIC PLANNING AND GRANT PROGRAMS RELATED TO EMERGING RESEARCH AND/OR RESEARCH UNIVERSITIES

19 TAC §§5.120 - 5.122

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 5, Subchapter G, §§5.120 - 5.122, concerning the purpose and authority, definitions, and submission of a strategic plan for achieving recognition as a research university. Specifically, this repeal will remove these rules from Chapter 5 with the intent to place them in Chapter 15, Research Funds, to group rules related to research. The Coordinating Board intends to adopt a separate forthcoming subchapter relating to the submission of the required strategic plans and update the rules for clarity for the institutions.

The Coordinating Board has statutory authority to adopt rules relating to the submission of long-term strategic plans for research or emerging research universities under Texas Education Code, Section 51.358.

Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be to improve readability of the rules through reorganization, by categorizing rules related to research programs in a forthcoming separate subchapter. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Emily Cormier, Assistant Commissioner for Funding, P.O. Box 12788, Austin, Texas 78711-2788, or via email at funding@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal is proposed under Texas Education Code, Section 51.358, which provides the Coordinating Board with the authority to adopt rules to administer the submission of long-term strategic plans for research or emerging research universities.

The proposed repeal affects Texas Education Code, Section 51.358.

§5.120.Purpose and Authority.

§5.121.Definitions.

§5.122.Submission of a Strategic Plan for Achieving Recognition as a Research University.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403444

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6344

CHAPTER 12. OPPORTUNITY HIGH SCHOOL DIPLOMA PROGRAM

SUBCHAPTER A. OPPORTUNITY HIGH SCHOOL DIPLOMA PROGRAM

19 TAC §§12.3, 12.5, 12.7, 12.8, 12.10 - 12.12

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments and new sections in Texas Administrative Code, Title 19, Part 1, Chapter 12, Subchapter A, §§12.3, 12.5, 12.7, 12.8, and 12.10 - 12.12, concerning the Opportunity High School Diploma program. Specifically, these amendments will provide additional information and guidance on program components, institutional requirements, and administration of the program.

The Coordinating Board proposes amendments to the Opportunity High School Diploma program rules to provide additional guidance regarding the program application and approval processes for institutions seeking to offer the Opportunity High School Diploma program; detail the instructional outcomes and performance expectations for the five competencies listed in §12.5(c) of this subchapter; provide clarity on the approval and publishing of assessments to determine student achievement; list institutional reporting requirements; establish ongoing review and revision of the program; and outline program revocation guidelines.

Rule 12.3, Definitions, is amended to add definitions for Application and Career and Technical Education, and to update the definition for Public School District.

Rule 12.5, Program Requirements, is amended to clarify the type of career and technical education programs that are permissible for concurrent enrollment purposes. The amendment also specifies where the required instructional outcomes and performance expectations for each of the five core program competencies will be detailed and establishes the approved assessments.

Rule 12.7, Program Approval Process, is amended to provide additional information on the application process that eligible entities must follow to qualify for consideration to offer the Opportunity High School Diploma. The amendment also notes that the maximum number of program approvals shall not exceed what is set forth in Texas Education Code, §130.454(c).

Rule 12.8, Required Reporting, is amended to detail the required reporting a participating public junior college will have to submit to the Coordinating Board including data and information requirements, additional reports, and report submission schedule.

Rule 12.10, Approval of a Request to Deliver an Opportunity High School Diploma Program, details the approval process that the Coordinating Board must follow once an application to offer an Opportunity High School Diploma program has been received. It sets forth a timeline for Assistant Commissioner and Commissioner approval, denial, or allowance for an institution to address deficiencies in a proposed diploma program. The rule also outlines an appeals process and respective timeline for denied applications and sets forth an implementation period for approved programs.

Rule 12.11, Program Review and Revision, instructs the Coordinating Board to convene the Opportunity High School Diploma Advisory Committee no less than one time per year to review and recommend revisions to the instructional outcomes, performance expectations, and assessments. It details where the Coordinating Board shall list approved revisions and instructs approved colleges to update or revise their programs accordingly and provide documentation of such within ninety days.

Rule 12.12, Revocation of Authorization, states the Commissioner's authority to revoke a college or consortium's authorization to offer an Opportunity High School Diploma. It lists the factors that can lead to revocation, sets a requirement for a written notice of proposed revocation or revocation status, grants the right to a hearing and details the process and timelines for such, and allows for appeal of a revocation to the Board.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Lee Rector, Associate Commissioner for Workforce Education, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of adopting this rule will be additional clarity on the application, approval, reporting, and revocation processes for public junior colleges seeking to offer, or approved to offer, the Opportunity High School Diploma program; increased detail on program components such as instructional outcomes, performance expectations, and approved assessments to determine student achievement; and actions relating to the review and revision of the program. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The amendments and new sections are proposed under Texas Education Code, Section 130.458, which provides the Coordinating Board with the authority to adopt rules as necessary to implement the Opportunity High School Diploma Program.

The proposed amendments and new sections affect Texas Administrative Code, Title 19, Part 1, Chapter 12, Subchapter A, Sections 12.3, 12.5, 12.7, 12.8, and 12.10 - 12.12.

§12.3.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings:

(1) Application--An approved form adopted by the Commissioner that an institution shall use to seek approval to offer the Opportunity High School Diploma program.

(2) [~~(1)~~] Board--The [~~the~~] governing body of the agency known as the Texas Higher Education Coordinating Board.

(3) Career and Technical Education Certificate--A post-secondary credential, other than a degree, which a student earns upon successful completion of a career and technical education (CTE) workforce or continuing education program offered by an institution of higher education.

(4) [2] Commissioner--The Commissioner of Higher Education.

(5) [~~(3)~~] Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.

(6) [~~(4)~~] General Academic Teaching Institution or General Academic Institution--Any college, university, or institution so classified in Texas Education Code, §61.003(3), or created and so classified by law.

(7) [~~(5)~~] Nonprofit Organization--Nonprofit means the entity, usually a corporation, is organized for a nonprofit purpose and designated as a 501(c)(3). This designation means a nonprofit organization that has been recognized by the Internal Revenue Service as being tax-exempt by virtue of its charitable programs.

(8) [~~(6)~~] Opportunity High School Diploma Program, Opportunity Diploma Program, or Program--Unless context indicates otherwise, means the Opportunity High School Diploma Program established under this subchapter.

(9) [~~(7)~~] Public Junior College--A public institution of higher education as defined in Texas Education Code, §61.003(2).

(10) [~~(8)~~] Public School District--A public school district is a local governmental entity created in accordance with the laws of the state of Texas having the primary responsibility for implementing the state's system of elementary and/or secondary education [geographical unit for the local administration of elementary or secondary schools. It is a special-purpose government entity that can be administered independently or be dependent on the local government, such as a city or county].

§12.5.Program Requirements.

(a) General Requirements. The Opportunity High School Diploma Program is an alternative competency-based high school diploma program to be offered for concurrent enrollment to an adult student without a high school diploma who is concurrently enrolled in a career and technical education program at a public junior college. The program may include any combination of instruction, curriculum, internships, or other means by which a student may attain the knowledge sufficient to adequately prepare the student for postsecondary education or additional workforce education.

(b) A student shall be concurrently enrolled in a program that is defined as a CTE certificate in §2.262 of this title (relating to Certificate Titles, Length, and Program Content), other than a Level 2 Certificate, Enhanced Skills Certificate, or an Advanced Technical Certificate.

(c) [~~(b)~~] Curricular Requirements. An approved public junior college shall embed required instructional outcomes and performance expectations [~~the following baseline student learning outcomes~~] in the program. A public junior college may also add curricular elements designed to meet regional employers' needs or specific workforce needs. Required instructional outcomes and performance expectations are detailed at https://reportcenter.highered.texas.gov/contracts/opportunity-high-school-diploma-instructional-outcomes-and-performance-expectations/ for the five core program competencies. Core program competencies shall include:

(1) Quantitative Reasoning, including the application of mathematics to the analysis and interpretation of theoretical and real-world problems to draw relevant conclusions or solutions.

(2) Communication Skills, including reading, writing, listening, speaking, and non-verbal communication.

(3) Civics, including the structure of government, processes to make laws and policies, constitutional principles of checks and balances, separation of powers, federalism, and rights and responsibilities of a citizen.

(4) Scientific Reasoning, including problem-solving that involves forming a hypothesis, testing the hypothesis, determining and analyzing evidence, and interpreting results.

(5) Workplace Success Skills, including dependability, adaptability, working with others, initiative, resilience, accountability, critical thinking, time management, organizing, planning, problem-solving, conflict resolution, and self-awareness.

(d) [~~(c)~~] Prior Learning and Program Completions. A public junior college approved to offer this program shall [~~must~~] determine each student's competence in each of the five core program competencies set out in subsection (c) [~~(b)~~] of this section prior to enrolling the student in the program of instruction and upon the student's completion of the program of instruction.

(1) The program of instruction assigned to each student will be based on the student's prior learning and assessments of the student's competencies for each of the five core program competencies set out in subsection (c) of this section. An institution may determine that a [A] student has [~~may be determined to have~~] satisfied required learning outcomes for one or more core program competencies based on the student's prior learning.

(2) An institution may use any of the following methods as documentation [~~Documentation~~] of a student's prior learning in the five core program competencies: [may include the following: transcripted high school grades; transcripted college credit; achievement on a national standardized test such as the SAT or ACT; credit earned through military service as recommended by the American Council on Education; or demonstrated success on pre-program assessments.]

(A) transcripted high school grades;

(B) transcripted college credit;

(D) credit earned through military service as recommended by the American Council on Education; or

(E) demonstrated success on pre-program assessments.

(3) The Commissioner shall identify, consider, and approve assessments, in consultation with the Texas Workforce Commission, to be used by a public junior college to determine a student's successful achievement of the five core program competencies and completion of the program.

(4) Assessments approved by the Commissioner are listed in Figure 1 [~~The Coordinating Board will publish a list of the approved assessments on the agency's website~~].

Figure: 19 TAC §12.5(d)(4) (.pdf)

(5) A public junior college that is approved to offer the program shall [~~must~~] use an approved assessment to evaluate each student's competence in the five core program competencies as required under subsection (c) [~~(b)~~] of this section.

(e) Instructional Outcomes. A public junior college that is approved to offer the program shall embed the required instructional outcomes into their curriculum as required under subsection (c) of this section.

(f) Performance Expectations. A public junior college that is approved to offer the program shall embed the performance expectations into their curriculum as required under subsection (c) of this section.

(g) [~~(d)~~] Location of Program. Subject to approval under this subchapter, a public junior college may enter into agreement with one or more public junior colleges, general academic teaching institutions, public school districts, or nonprofit organizations to offer this program. The public junior college may offer this program at any campus of an entity subject to an agreement to offer this program.

(h) [~~(e)~~] Award of High School Diploma. A public junior college participating in the program shall award a high school diploma to a student enrolled in this program if the student satisfactorily completes an approved assessment that provides evidence of competence in the five core program requirements as required under this rule. A high school diploma awarded under this program is equivalent to a high school diploma awarded under Texas Education Code, §28.025.

§12.7.Program Approval Process.

(a) Application Process. An eligible entity shall complete and submit an application to the Coordinating Board. Each application must:

(1) Be submitted electronically in a format and location specified in the application;

(2) Adhere to the program requirements specified in rule; and

(3) Be submitted on or before the day and time specified in the application.

(b) [~~(a)~~] Required Elements of Program Approval Application. Unless otherwise specified in the application, an [An] eligible public junior college must submit the following elements in a complete application for approval to offer this program:

(1) A description of the program's design demonstrating compliance with program requirements listed under §12.5 of this subchapter (relating to Program Requirements), including the assessment to be used under §12.5(d)(4) [~~§12.5(c)(3)~~] of this subchapter.

(2) Documentation of consultation with local employers and Workforce Development Boards in development of the program's curriculum.

(3) For public junior colleges proposing to offer the program in consortium with one or more partners under §12.6(a)(2) of this subchapter (relating to Eligible Institutions and Students):

(A) a memorandum of agreement with each member of the consortium; and

(B) a description of the role that each member of the consortium will play in delivery of the Program.

(1) An eligible public junior college may submit an application to participate in the Opportunity High School Diploma Program to the Coordinating Board. The Coordinating Board will review submitted applications for completeness of the elements required under §12.5 of this subchapter.

(2) The Commissioner shall review the staff recommendation and any input by other entities and make the determination whether to approve the program.

(3) The Commissioner may not approve more than the number of public junior colleges or consortia set forth in Texas Education Code, §130.454(c), to offer the Opportunity High School Diploma Program.

(4) [~~(3)~~] The Coordinating Board shall notify the public junior college of program approval and post a list of approved programs on the Coordinating Board website.

§12.8.Required Reporting.

(a) Each participating public junior college or consortia approved to offer this program shall report to the Coordinating Board via a form and on a schedule approved by the Commissioner for data collection required under this section [~~student enrollments and completions to the Coordinating Board through the Education Data System, in compliance with the data reporting standards established for that system~~]. Each participating public junior college shall provide disaggregated data and information including, but not limited to, the following:

(1) Student enrollment data;

(2) Student completion data; and

(3) Any other data or attributes as determined by the Commissioner.

(b) Each participating public junior college or consortia approved to offer this program shall provide any additional reports certified in accordance with Coordinating Board data reporting requirements.

(c) [~~(b)~~] The Board shall submit to the Legislature a progress report on the effectiveness of this program and recommendations for legislative or other action no later than December 1, 2026.

§12.10.Approval of a Request to Deliver an Opportunity High School Diploma Program.

(a) An institution shall submit an application prior to offering an Opportunity High School Diploma program.

(b) The Assistant Commissioner will make the determination of administrative completeness of the application in accordance with §12.5 and §12.7 of this subchapter (relating to Program Requirements and Program Approval Process, respectively) within sixty days of receiving the application. In this subchapter, Assistant Commissioner means the Assistant, Associate, or Deputy Commissioner designated by the Commissioner.

(c) The Assistant Commissioner may allow an institution the opportunity to cure deficiencies in the proposed program application prior to making a recommendation to the Commissioner.

(d) The Assistant Commissioner will make a recommendation to the Commissioner to:

(1) Deny the proposed diploma program; or

(2) Approve the proposed diploma program.

(e) If the Assistant Commissioner recommends denial of approval, the institution may appeal that decision to the Commissioner in writing with all supporting documents within sixty days of notice of the denial of approval.

(f) The Commissioner may, within sixty days of receiving a recommendation for approval from the Assistant Commissioner or an appeal from an institution, and at his or her sole discretion:

(1) Determine if the application is complete and meets the requirements set out in this subchapter; and

(2) Approve the proposed diploma program; or

(3) Deny the proposed diploma program.

(g) Decisions by the Commissioner regarding appeals are final and not subject to further appeal.

(h) An institution shall implement an approved new Opportunity High School Diploma program within twelve months of the implementation date stated in the Coordinating Board approval letter or approval is withdrawn. The Commissioner may give one twelve-month extension of approval if an institution demonstrates good cause for the additional time and the delay will not harm students.

§12.11.Program Review and Revision.

(a) The Coordinating Board shall convene the Opportunity High School Diploma Advisory Committee not less than annually to review the instructional outcomes, performance expectations, and assessments for each of the five core program competencies.

(b) The Advisory Committee shall recommend revisions to the instructional objectives, performance expectations, and assessments to the Commissioner.

(1) Upon approval by the Commissioner, the revised instructional outcomes and performance expectations pertaining to §12.5(c) of this subchapter (relating to Program Requirements) shall include the date of approval and be posted at https://reportcenter.highered.texas.gov/contracts/opportunity-high-school-diploma-instructional-outcomes-and-performance-expectations/.

(2) Upon approval by the Commissioner, the revised list of assessments pertaining to §12.5(d)(4) of this subchapter shall include the date of approval and be detailed in Figure 1 of this subchapter.

(d) A public junior college approved to offer the Opportunity High School Diploma shall update or revise its program as necessary to meet any approved revisions and provide documentation to Coordinating Board of such revisions within ninety days of the effective date.

§12.12.Revocation of Authorization.

(a) The Commissioner may revoke authorization of an Opportunity High School Diploma program based on the following factors:

(1) noncompliance with application and/or the provisions of this subchapter;

(2) lack of program success as evidenced by reports; or

(3) failure to provide accurate, timely and complete information as required by §12.10 of this subchapter (relating to Approval of a Request to Deliver an Opportunity High School Diploma Program).

(b) The Commissioner shall provide written notice of a proposed revocation, including the reason or reasons for the proposed revocation.

(1) An institution offering an approved Opportunity High School Diploma program has thirty days to request a hearing on the proposed revocation. Such hearing request shall be submitted in writing and include copies of any documents that support the hearing request. A hearing shall be scheduled not later than sixty days from the date of Coordinating Board receipt of the hearing request, unless otherwise agreed.

(2) The Commissioner will provide written notice of the proposed revocation no later than thirty days from the date of the hearing, or if no hearing is requested once the period to request a hearing has elapsed. Such notice shall provide for a reasonable period for students currently enrolled in the Opportunity High School Diploma program to be taught-out.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403445

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6344

CHAPTER 13. FINANCIAL PLANNING

SUBCHAPTER M. TOTAL RESEARCH EXPENDITURES

19 TAC §§13.302 - 13.305

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 13, Subchapter M, §§13.302 - 13.305, concerning Total Research Expenditures. Specifically, this amendment will make clarifying amendments to the reporting of total research expenditures to the Coordinating Board for use in state research funding allocations for the Comprehensive Research Fund, National Research Support Fund, Texas University Fund (TUF), and certain health related institution funding formulas (e.g., research enhancement formula and certain mission specific performance based research formulas). The rules will provide direction to general academic teaching institutions with a health related institution that submit a singular annual financial report on how to allocate their research expenditures. The Coordinating Board used negotiated rulemaking to develop these proposed rules. The Coordinating Board will make reports of negotiated rulemaking committees available upon request.

Rule 13.302, Definitions, lists definitions pertinent to research expenditure reporting. The addition of paragraph (10), "Health Related Institutions," adds a more commonly used term for this category of institutions, improving the readability of the rule, using this term throughout the rules in place of "medical and dental units."

Paragraph (11), "Institutional Fund Expenditures," adds additional detail on Institutional Fund Expenditure sources (tobacco settlement receipts and patient income) and removes language about unrecovered indirect costs. This had been included to align reporting with the National Science Foundation Higher Education Research and Development survey. However, due to institutions' concerns about disclosure of information that could be confidential under state or federal law, the amendment deletes the mandatory collection of data on unrecovered indirect cost.

Paragraph (15), "Private Expenditures," removes language about ineligible expenditures because this is addressed in the research expenditure survey definition in paragraph (19).

Revisions to paragraphs (16), "Research and Development (R&D)," and (18), "Research Expenditures or Expenditures," clarify the language but do not change the meaning.

The amendments to paragraph (19), "Research Expenditures or Expenditures," remove duplicative language, add adjustments for ineligible expenditures, remove unrecovered indirect expenditures, and clarify that the pass-throughs referred to occur in Texas.

A statutory citation is added to paragraph (21), "Sources and Uses Template," for clarity.

Paragraph (23), "State and Local Government Expenditures," is amended to add patient income and its statutory citation because there have been questions about how patient income is categorized.

Paragraph (24), "State of Texas Contracts and Grants," is clarified with the addition of grants to the listing of expenditures in this category.

Rule 13.303, Standards and Accounting Methods for Determining Total Research Expenditures, amendments reorganize the section to clarify that the new subsection (a) applies to all institutions of higher education, replaces expenses with expenditures in all instances, and adds clarifying detail on types of eligible expenditures, such as capital outlay for research equipment. New subsection (b) applies to the general academic teaching institutions with a health related institution that submit a singular annual financial report and provides detail on how to allocate their research expenditures. This methodology takes into account stakeholder feedback, basing the reporting of research expenditures on the appointment of the investigators, and will go into effect beginning with fiscal year 2025. Subsection (c) is the previous subsection (a) language with no substantive change.

Rule 13.304, Reporting of Total Research Expenditures, removes the word "public," since the statutory definition of institution of higher education is a Texas public institution (Texas Education Code, §61.003(8)).

Rule 13.305, Institutional Reporting of Total Research Expenditures by Funding Source, clarifies certain terms, removes the concept of a "narrow" definition of research and development expenditures, and removes reference to unrecovered indirect costs.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the clarification of reporting of research expenditures. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will or will not affect this state's economy.

The amendment is proposed under Texas Education Code, Section 62.053, which provides the Coordinating Board with the authority to prescribe standards and accounting methods for determining the amount of total research funds expended.

The proposed amendment affects Texas Education Code Sections 61.0662, 62.053, 62.095, 62.134, 62.1482.

§13.302.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) All Other Expenditures--Expenditure [~~Expenditures~~ ] of all other funds not reported under the expenditure categories of Business, Nonprofit Organizations, Institutional Funds, State and Local Government or Federal Expenditures, as defined in this section. All Other Expenditures includes funds from foreign universities, foreign governments, portions of gifts designated for research by the donors (including from the reporting institution's 501(c)(3)), and nonfederal and nonstate funds received from other institutions of higher education.

(2) Annual Financial Report (AFR)--Institutional financial report for one fiscal year as required by Texas Education Code, §51.005.

(3) Areas of Special Interest--Major research topics important to the public, or required by statute, as listed in the Research Expenditure Survey.

(4) Board--The governing body of the Texas Higher Education Coordinating Board.

(5) Business Expenditures--Expenditure [~~Expenditures~~ ] of funds from domestic or foreign for-profit organizations.

(6) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.

(7) Coordinating Board Staff or Board Staff--Agency staff acting under the direction of the Board or [~~and~~] the Commissioner.

(8) Federal Expenditures--Expenditure [~~Expenditures~~ ] of funds received by the reporting institution from any agency of the United States government for research and development. These include reimbursements, contracts, grants, and any identifiable amounts spent on research and development from Federal programs including Federal monies passed through state agencies to the reporting institution and federal funds that were passed through to the reporting institution from another institution.

(9) General Academic Teaching Institution--Any public general academic teaching institution as defined in Texas Education Code, §61.003(3).

(10) Health Related Institution--Any medical and dental unit as defined in Texas Education Code, §61.003(5).

(11) [~~(10)~~] Institutional Fund Expenditure [~~Expenditures~~]--This includes funds expended for R&D that are controlled at the institutional level, such as Available University Fund (AUF), Tobacco Settlement Receipts, patient income (unless defined by Texas Education Code, §51.009(c)), or other funding held locally used for R&D, excluding institution research administration and support. This category includes cost sharing from unrestricted sources (cost sharing from restricted sources should be classified according to the underlying source) and [,] unrestricted funds from the reporting institution's 501(c)(3)[~~, and unrecovered indirect costs. Unrecovered indirect costs may not exceed the institution's federally negotiated Facilities and Administrative rate~~].

~~[(11) Medical and Dental Unit--Any public health related institution as defined in Texas Education Code, §61.003(5).]~~

(12) Nonprofit Organization Expenditures--Expenditure [~~Expenditures~~] of funds from domestic or foreign non-profit foundations and organizations, except universities and colleges.

(13) Other Agency of Higher Education--Any public agency of higher education as defined in Texas Education Code, §61.003(6).

(14) Pass-through to Sub-recipient--Sponsored project funds that are passed from one entity to a sub-recipient. The sub-recipient expends the funds to carry out part of the sponsored project on behalf of the pass-through entity.

(15) Private Expenditures--Expenditure [~~Expenditures~~ ] of funds reported as Business Expenditures, Non-profit Organization Expenditures, and All Other Expenditures. [~~Amounts exclude R&D expenditures that do not meet the narrow definition of R&D expenditures used in the Coordinating Board's Research Expenditure Survey.~~]

(16) Research and Development (R&D)--Research and Development [~~R&D~~] activity is creative and systematic work undertaken in order to increase the stock of knowledge "including knowledge of humankind, culture, and society" and to devise new applications of available knowledge. R&D covers three activities: basic research, applied research, and experimental development. R&D does not include public service or outreach programs, curriculum development (unless included as part of an overall research project), or non-research training grants. R&D excludes [~~does not include~~] capital projects (i.e., construction or renovation of research facilities).

(17) R&D Training--Activities involving the training of individuals in research techniques are included in R&D, where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.

(18) Research Expenditures or Expenditures--In a specific fiscal year, expenditure [~~expenditures~~] of funds paid out by an institution to support institutional Research and Development activities. Expenditures exclude [~~do not include~~] in-kind donations.

(19) Research Expenditure Survey--The mandatory survey instrument administered by the Coordinating Board pursuant to Texas Education Code, §61.0662, that establishes total R&D expenditures for each institution by research field and areas of special interest, both accounted by funding source. [~~The survey includes a Research Expenditure Survey, specific definition of R&D, and reporting guidelines for R&D activities.~~] The survey includes specific adjustments to account for ineligible R&D expenditures and separately accounts for [~~unrecovered indirect costs and~~] pass-through expenditures to other general academic teaching institutions, health related institutions [~~medical and dental units~~], or other agencies of higher education in Texas, by funding source.

(20) Research fields--Subject areas for R&D, as listed in the Research Expenditure Survey.

(21) Sources and Uses Template--An annual survey of Texas general academic and health-related institutions, administered by the Coordinating Board pursuant to Texas Education Code, §61.065, and §13.63 of this chapter (relating to Additional Financial Information Reporting), to detail financial information and provide specific information about revenues and expenditures.

(22) Sponsored Projects--Sponsored projects include grants, contracts, cooperative agreements and other legally binding means of transfer under which an entity provides a return benefit to, or agrees to provide a defined deliverable or complete a specified set of activities for, an external sponsor in exchange for funds. External sponsors are those that are not part of the entity.

(23) State and Local Government Expenditures--Expenditure [~~Expenditures~~] of funds received for R&D via appropriations from the state of Texas, including non-formula support items, patient income as defined in Texas Education Code, §51.009(c), and funds received from any state, county, municipality, or other local government entity in the United States, including state health agencies. Expenditures include state funds that support R&D at agricultural and other experiment stations.

(24) State of Texas Contracts and Grants--A subset of State and Local Government Expenditures that includes only expenditures of interagency contracts, contracts with Texas local governments, and other such state funding sources for R&D, including grants.

(25) State of Texas Source Expenditures--A subset of State and Local Government Expenditures that includes only expenditures of funds appropriated by the state of Texas for research, including state appropriated research non-formula support items and research formula funding.

§13.303.Standards and Accounting Methods for Determining Total Research Expenditures.

~~[(a) R&D expenditures for Texas A&M University include consolidated expenses from Texas A&M University and its service agencies.]~~

(a) [~~(b)~~] Research expenditure reporting for all institutions of higher education. Each institution shall reconcile its research expenditures [~~Research expenses~~] from the AFR [~~shall be reconciled~~] to the total R&D expenditures of the Research Expenditure Survey by a:

(1) Decrease of the AFR total by the amount of R&D expenditures [~~expenses~~] that do not meet the [~~narrow~~ ] definition of R&D expenditures used in the Coordinating Board's Research Expenditure Survey, such as pass-throughs[~~. Pass-throughs~~] to other general academic teaching institutions, health related institutions [~~medical or dental units~~], and other agencies of higher education in Texas [~~do not meet the narrow definition of R&D expenditures~~].

(2) Increase of the AFR total by the amount of recovered indirect costs associated with expenditures [~~expenses~~] for R&D as reported through the Research Expenditure Survey.

(3) Increase of the AFR total by the amount of capital outlay for research equipment, not including R&D plant expenditures [~~expenses~~] or construction.

(4) Increase of the AFR total by the amount of expenditures for conduct of R&D made by an institution's research foundation, or 501(c) corporation on behalf of the institution, and not reported in the institution's AFR, including recovered indirect costs and capital outlay for research equipment.

(5) Increase of the AFR total to include expenditures, including recovered indirect costs and capital outlay for research equipment [~~expenses~~] related to research performed by the agency or institution but reported by [~~recognized on the AFR of~~] a separate agency or institution that [~~who~~] received and expended the funding. The agency or institution that [~~who~~] received and expended the funding but did not perform the research must make a corresponding decrease of its AFR total for this amount. This accounting event is not a pass-through to subrecipient as defined in §13.302(14) of this subchapter (relating to Definitions).

(b) This subsection applies to the general academic teaching institutions with a health related institution that submit a singular annual financial report.

(1) Research expenditures shall be reported separately by the general academic teaching institution and health related institution using a methodology that allocates amounts to the general academic teaching institution and health related institution according to the proportion of the expenditures attributed to the principal investigator and any co-investigators.

(2) The primary appointment of each investigator shall determine to which entity (the general academic teaching institution or health related institution) the investigator's allocated expenditures are assigned and reported.

(3) Subsection (b) of this section will take effect beginning with the reporting of expenditures made during fiscal year 2025.

(c) R&D expenditures for Texas A&M University include consolidated expenditures from Texas A&M University and its service agencies.

§13.304.Reporting of Total Research Expenditures.

(a) The Coordinating Board [~~staff~~] shall annually post a report of total research expenditures of all [~~public~~] institutions of higher education on its website.

(b) Not later than January 1 of each year, the Board shall submit to the legislature information regarding human stem cell research reported by the institutions to the Coordinating Board in the Research Expenditure Survey from reports required by this subsection.

§13.305.Institutional Reporting of Total Research Expenditures by Funding Source.

(a) Each institution [~~Institutions~~] shall report all research expenditures on the Research Expenditure Survey using the following categories:

(1) Federal Expenditures;

(2) State and Local Government Expenditures;

(3) Business Expenditures;

(4) Nonprofit Organization Expenditures;

(5) Institutional Fund Expenditures; and

(6) All Other Expenditures.

(b) Each institution [~~Institutions~~] shall report State of Texas Source Expenditures and State of Texas Contracts and Grants as subsets of State and Local Government Expenditures.

(c) Each institution [~~Institutions~~] shall report the original source of expenditures, unless the institution lacks source information [~~when possible~~]. Institutions shall report each category and show adjustments by the amount of R&D expenditures [~~expenses~~] that do not meet the [~~narrow~~] definition of R&D expenditures used in the Coordinating Board's Research Expenditure Survey, as defined in §13.302(19) of this subchapter (relating to Definitions), such as[~~. Unrecovered indirect costs and~~] pass-throughs to other general academic teaching institutions, health related institutions [~~medical and dental units~~], and other agencies of higher education in Texas [~~do not meet the narrow definition of R&D expenditures~~].

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403446

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

CHAPTER 15. RESEARCH FUNDS

SUBCHAPTER C. STRATEGIC PLANNING RELATED TO EMERGING RESEARCH AND RESEARCH UNIVERSITIES

19 TAC §§15.50 - 15.52

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 15, Subchapter C, §§15.50 - 15.52, concerning Strategic Planning Related to Emerging Research or Research Universities. Specifically, the new subchapter will replace the repealed Title 19, Part 1, Chapter 5, Subchapter G, §§5.120 - 5.122, concerning Strategic Planning and Grant Programs Related to Emerging Research and/or Research Universities. The new language will update certain definitions and give authority to the Commissioner to determine the requirements for research strategic plans submitted to the Coordinating Board.

Rule 15.50, Purpose and Authority, describes the purpose and authority of the subchapter.

Rule 15.51, Definitions, defines the terms used in the rule. Revisions update certain definitions to the most current terminology. Paragraph (3) is a new definition for the Coordinating Board to specify distinct actions taken by the agency or staff that are separate from actions taken by the governing board of the Texas Higher Education Coordinating Board. Paragraph (4), Research Strategic Plan, modifies the definition to prescribe that the specifications of the plan are approved by the Commissioner of Higher Education, per the delegation of the Board in rule 15.52(a).

Rule 15.52, Submission of a Strategic Plan for Achieving Recognition as a Research University, describes the process, required minimum elements of a plan, and timing for submission of a research strategic plan. The amendments to previous rule language clarify that the Board delegates authority to the Commissioner to determine the required elements of the plan. The rule prescribes that, at a minimum, the plan must include elements relating to an institution's research enterprise, doctoral programs, and faculty. These elements provide a broad guideline for the Commissioner to then approve additional or more specific requirements for the institutions. By providing the authority for the Commissioner to designate the required elements of the report, the Commissioner may consider current statewide needs and trends rather than maintaining a static list of elements.

The rule prescribes that these elements be approved by the Commissioner by October 1 the year prior to the required submission date, which is set at April 1, 2025. Setting a starting date for the submission of plans and a future schedule within the rule provides clarity for institutions on when the reports are due on a standard timeline.

Emily Cormier, Assistant Commissioner for Funding has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be improved clarity on requirements related to research strategic plans. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules or will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The new section is proposed under Texas Education Code, Section 51.358 Long-Term Strategic Plan for Research University or Emerging Research University, which provides the Coordinating Board with the authority to adopt rules for the administration of the section.

The proposed new section affects Texas Education Code, Section 51.358.

§15.50.Purpose and Authority.

(a) The purpose of this subchapter is to require each institution of higher education designated as a research university or emerging research university as designated in the Board's accountability system to have a long-term strategic plan for achieving recognition as a research university or enhancing the institution's reputation as a research university.

(b) This rule is adopted under the authority of Texas Education Code, §51.358.

§15.51.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The governing body of the Texas Higher Education Coordinating Board.

(2) Commissioner--The Texas Commissioner of Higher Education who serves as the chief executive officer of the agency known as the Texas Higher Education Coordinating Board.

(3) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.

(4) Emerging Research University--A public institution of higher education designated as an emerging research university under the Board's accountability system.

(5) Governing board--The Board of Regents of a research or emerging research university.

(6) Research Strategic Plan--A document to be prepared by the institution which provides a detailed, long-term plan to show how the institution will achieve or enhance its recognition as a research university. The form, manner, standards, and minimum required content for the report will be prescribed by the Commissioner.

(7) Research University--A public institution of higher education designated as a research university under the Board's accountability system.

§15.52.Submission of a Strategic Plan for Achieving Recognition as a Research University.

(a) The Commissioner shall prescribe the form, length, manner, and minimum required content in guidelines published by the Coordinating Board by October 1 in the year prior to submission.

(b) At a minimum, the guidelines in subsection (a) of this section will require information on the following topics:

(1) A plan to elevate the institutions' research enterprise, including its goals and priorities, collaborations and partnerships, and a discussion of economic impact; and

(2) A plan to increase research funding and productivity, including the role of external funding, research facilities, and commercialization; and

(3) A description of its doctoral programs, including plans for research doctorates, supports for doctoral candidates, and the areas of academic emphasis; and

(4) A plan for faculty recruitment, support, and development.

(c) The governing board of each research or emerging research university shall submit its approved strategic plan to the Coordinating Board by April 1, 2025. Each institution shall submit an updated strategic plan not later than April 1, 2030.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403447

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

CHAPTER 17. RESOURCE PLANNING

SUBCHAPTER A. GENERAL PROVISIONS

19 TAC §17.3

The Texas Higher Education Coordinating Board (Coordinating Board) proposes the repeal of Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter A, §17.3, concerning Definitions, to be replaced with forthcoming rulemaking. Specifically, the Coordinating Board intends to adopt a separate rule relating to definitions to reorganize and improve readability and accuracy of the definitions used for resource planning. The Coordinating Board has statutory authority to adopt rules relating to resource planning and facilities under Texas Education Code, §§61.0572 and 61.058.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section is to improve readability of the rules through the repeal and subsequent replacement of Chapter 17, Subchapter A, §17.3. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The repeal is proposed under Texas Education Code, Sections 61.0572 and 61.058, which provide the Coordinating Board with the authority to conduct the facilities programs governed by Chapter 17.

The proposed repeal affects Texas Administrative Code, Chapter 17, Section A, §17.3, Definitions.

§17.3.Definitions.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403449

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

19 TAC §17.3

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter A, §17.3, concerning Definitions. Specifically, this new rule will provide better organization and readability of definitions pertaining to resource planning.

The new section is proposed under Texas Education Code, Sections 61.0572 and 61.058, which provide the Coordinating Board with the authority to conduct the facilities programs governed by Chapter 17.

Changes from existing definitions include the removal of the following definitions:

Educational and General (E&G) Building Replacement Estimate (existing paragraph (11)) and Institution-Wide Building Replacement Estimate (existing paragraph (12)), as these will now be included with the definition for the Building Replacement Estimate Report (as listed below).

Campus Master Plan (existing paragraph (14)), as the current methodology for capturing capital planning is within the Capital Expenditure Plan definition.

Committee (existing paragraph (19)) as the Board no longer has a Committee review facilities projects.

Energy Systems (existing paragraph (27)) as no longer in use.

Project Review (existing paragraph (47)) as the Board does not conduct project reviews.

Proposed rules add the following new definitions:

Paragraphs (8) and (20) specify two distinct entities: "Board," meaning the nine-member appointed governing body of the Texas Higher Education Coordinating Board and "Coordinating Board," meaning the state agency, including agency staff, as a whole. Separating these terms improves the readability and precision of the rules contained in Chapter 17 and allows the Coordinating Board to make a distinction between actions taken by the governing body and the agency, including agency staff, as a whole.

Paragraph (31), Health-related institution, adds a definition for a health-related institution as defined by Texas Education Code, §61.003(5).

Paragraph (51), Space Projection Model, adds a definition for the Space Projection Model, as it is a required report under rule 17.100(1) and is currently used by the Legislature for formula funding and facilities related purposes. It also is used as a standard by which a facilities project is reviewed by an institution's Board of Regents.

Proposed amendments to existing definitions include the following:

Paragraph (10), Building Efficiency, and paragraph (52), Space Use Efficiency, amend the definitions of both rules to specify the language use of the word "efficiency", since the term is used in two different ways. Paragraph (10) adds the word "building" to specify that this definition is referring to building efficiency, whereas, paragraph (52) adds the word "efficiency" to clarify that this definition is referring to "space usage efficiency", a report that is a required under rule 17.100(2).

Paragraph (11), Building Replacement Estimate Report, adds more detail as to whom the audience of the report is and how the report Is calculated.

Paragraph (12), Campus Condition Report, adds more detail as to whom institutions should provide the report to in accordance with Texas Education Code, §61.05821.

Paragraph (14), Capital Expenditure Plan (MP1), includes an additional project type (information resource project) to match projects as listed in rule 17.101, regarding Institutional Reports.

Paragraph (27), Facilities Audit, redefines the definition of an audit to clarify what is included and the authority reference that audits fall under.

Paragraph (13), Capital Construction Assistance Projects, renames the former Tuition Revenue Bonds Project to Capital Construction Assistance Projects as provided for in Texas Education Code, §55.111 and §§55.171 - 55.17991.

Proposed changes to the Texas Administrative Code, Chapter 17, Section A, §17.3, also provides subsequent reorganization and renumbering.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as the result of administering the section will be the replacement of nomenclature in existing Chapter 17, Subchapter A, §17.3, with a new §17.3 due to multiple updates and reorganization of existing definitions. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The new section is proposed under Texas Education Code, Sections 61.0572 and 61.058, which provides the Coordinating Board with the authority to conduct the facilities programs governed by Chapter 17.

The proposed new section affects Texas Administrative Code, Chapter 17, Subchapter A, §17.3.

§17.3.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Academic Facilities--Facilities used for primary instruction, research, and public service functions of the institution. Academic facilities typically would include classrooms, libraries, administrative and faculty offices, and student and research laboratories.

(2) Acquisition--To come into possession or control of real property or facilities. This includes the acceptance, purchase, lease-purchase, transfer, or exchange of land or facilities.

(3) Addition--Expansion or extension of an existing facility that increases its size or capacity.

(4) Assignable Area of a Building--The sum of all areas within the interior walls of rooms on all floors of a building assigned to, or available for assignment to, an occupant or use, excluding unassigned space. This is also referred to as net assignable square feet (NASF).

(5) Athletic Facilities--Facilities used for athletic programs, including intercollegiate athletics, intramural athletics, and athletically oriented academic programs.

(6) Auditorium or Assembly--A room, hall, or building designed and equipped for the assembly of large groups for such events as dramatic and musical productions, devotional activities, livestock judging, faculty/staff meetings, or commencement. Included are theaters, concert halls, arenas, chapels, and livestock judging pavilions. Assembly facilities may also serve instructional purposes to a minor or incidental extent.

(7) Auxiliary Enterprise Buildings or Space--Income-generating structures and space such as dormitories, cafeterias, student union buildings, stadiums, athletic facilities, housing or boarding facilities used by a fraternity, sorority, or private club, and alumni centers used solely for those purposes. Auxiliary space is not supported by state appropriations.

(8) Board--The governing body of the agency known as the Texas Higher Education Coordinating Board.

(9) Building--A structure with at least two walls for permanent or temporary shelter of persons, animals (excluding animal caging equipment), plants, materials, or equipment that is attached to a foundation, roofed, serviced by a utility (exclusive of lighting), is a source of maintenance and repair activities, and is under the control or jurisdiction of the institution's governing board, regardless of its location.

(10) Building Efficiency--The proportion of the gross square feet that can be assigned. This is determined by dividing the net assignable square feet by the gross square feet of a building.

(11) Building Replacement Estimate Report--A report that provides an overall estimate of the campus' buildings replacement cost. The Coordinating Board produces this report to aid institutions in reporting their deferred maintenance needs as a percentage of the total campus' replacement value to the Board of Regents. Building Replacement Estimates are calculated for Educational and General space and Institution-Wide space. A twenty-five percent add-on is included to account for the cost of necessary infrastructure. These are not to be used for insurance purposes.

(12) Campus Condition Report--A report outlining facility maintenance needs in the areas of deferred maintenance and critical deferred maintenance. Institutions are to provide this report to their Board of Regents, and a copy is to be provided to the Coordinating Board.

(13) Capital Construction Assistance Project--A project for which an institution has legislative authority to finance a construction, renovation, or land acquisition project as provided for in Texas Education Code, §55.111 and §§55.171 - §55.17991.

(14) Capital Expenditure Plan (MP1)--A detailed formulation of institutional programs to address repairs, renovations, deferred maintenance, critical deferred maintenance, facilities construction, demolition, property acquisitions, major information resources projects, or infrastructure.

(15) Certification--Institutional attestation of reports or other submissions as being true as represented.

(16) Classroom--A room used for scheduled classes. These rooms may be called lecture rooms, lecture-demonstration rooms, seminar rooms, or general-purpose classrooms. A classroom may contain multimedia or telecommunications equipment, such as those used for distance learning. A classroom may be furnished with special equipment (e.g., globes, maps, pianos) appropriate to a specific area of study. A classroom does not include a conference room, meeting room, auditorium, or class laboratory.

(17) Class Laboratory--A room used primarily by regularly scheduled classes that require special-purpose equipment for student participation, experimentation, observation, or practice in a field of study. Class laboratories may be referred to as teaching laboratories, instructional shops, computer laboratories, drafting rooms, band rooms, choral rooms, group studios. Laboratories that serve as individual or independent study rooms are not included.

(18) Clinical Facility--A facility often associated with a hospital or medical school that is devoted to the diagnosis and care of patients in the instruction of health professions and allied health professions; medical instruction may be conducted, and patients may be examined and discussed. Clinical facilities include patient examination rooms, testing rooms, and consultation rooms.

(19) Commissioner--The Texas Commissioner of Higher Education who serves as the chief executive officer of the agency known as the Texas Higher Education Coordinating Board.

(20) Coordinating Board--The agency known as the Texas Higher Education Coordinating Board, including agency staff.

(21) Cost--The portion of the total project costs that are reported by the institution as being for the actual cost of construction, repair/renovation, or the actual purchase price for improved real property purchases. Not included are costs associated with site acquisition (for construction projects), closing costs (for improved real property purchases) fixed equipment, site development, furniture and moveable equipment, construction services, life safety compliance, professional services fees, demolition costs, eminent domain costs, environmental development, or contingency amounts.

(22) Critical Deferred Maintenance--Any deferred maintenance that if not corrected in the current budget cycle places its building occupants at risk of harm or the facility at risk of not fulfilling its functions.

(23) Deferred Maintenance--The accumulation of facility components in need of repair or replacement brought about by age, use, or damage, for which remedies are postponed or considered backlogged, that is necessary to maintain and extend the life of a facility. This includes repairs postponed due to funding limitations.

(24) Educational and General (E&G) Space--Space used for teaching, research, or the preservation of knowledge, including the proportional share used for those activities in any building or facility used jointly with auxiliary enterprise, or space that is permanently unassigned. E&G space may be supported by state appropriations.

(25) E&G Cost--E&G Space/Total Space x Cost. The costs associated with the E&G space included in a project. This is determined by dividing the E&G assignable square feet by the total project assignable square feet and then multiplying the result by the cost.

(26) Energy Savings Performance Contract--A contract for energy or water conservation measures to reduce energy or water consumption or operating costs of institutional facilities in which the estimated savings in utility costs resulting from the conservation measures is guaranteed to offset the cost of the measures over a specified period.

(27) Facilities Audit--An audit of an institution of higher education's facilities inventory records and submission of required facilities development projects as required by Texas Education Code, §61.0583.

(28) Facilities Inventory--A collection of building and room records that reflects institutional space and how it is being used. The records contain codes that are uniformly defined by the Board and the United States Department of Education and reported by the institutions on an ongoing basis to reflect a current facilities inventory. The facilities inventory includes a record of property owned by or under the control of the institution.

(29) Gift--A donation or bequest of money or another tangible item, a pledge of a contribution, or the acquisition of real property or facilities at no cost to the state or to the institution. It may also represent a method of finance for a project.

(30) Gross Square Feet (GSF)--The sum of all square feet of floor areas within the outside faces of a building's exterior walls. This includes the areas, finished and unfinished, on all floors of an enclosed structure, i.e., within the environmentally controlled envelope, for all stories or areas which have floor surfaces.

(31) Health-Related Institution--A medical or dental unit as defined by the Texas Education Code, §61.003(5).

(32) Improved Real Property--Real property on which there are buildings or facilities.

(33) Information Resource Project--Projects related to the purchase or lease-purchase of computer equipment, purchase of computer software, purchase or lease-purchase of telephones, telephone systems, and other telecommunications and video-teleconferencing equipment.

(34) Infrastructure--The basic physical structures needed for the operation of a campus to include roads, water supply, sewers, power grids, telecommunications, and so forth. Systems within five feet of a building are considered building systems and are not infrastructure.

(35) Institution or Institution of Higher Education--A Texas public institution of higher education as defined in Texas Education Code, §61.003(8), except a community/junior college.

(36) Lease--A contract by which real estate, equipment, or facilities are conveyed for a specified term and for a specified rent. Includes the transfer of the right to possession and use of goods for a term in return for consideration. Unless the context clearly indicates otherwise, the term includes a sublease.

(37) Lease-Purchase--A lease project that includes the acquisition of real property by purchase, gift, or any other voluntary transaction at some future time.

(38) Legislative Authority--Specific statutory authorization.

(39) Mixed Use--Facilities that have a mixture of uses. These may include facilities that are E&G and non-E&G.

(40) Net Assignable Square Feet (NASF)--The sum of all areas within the interior walls of rooms on all floors of a building assigned to, or available for assignment to, an occupant or use, excluding unassigned areas. NASF includes auxiliary space and E&G space.

(41) New Construction--The creation of a new building or facility, the addition to an existing building or facility, or new infrastructure that does not currently exist on campus. New construction would add gross square footage to an institution's existing space.

(42) Parking Structure--A facility or garage used for housing or storing vehicles. Included are garages, boathouses, airport hangars, and similar buildings. Barns or similar field buildings that house farm implements and surface parking lots are not included.

(43) Phased Project--A project that has more than one part, each one having fixed beginning and ending dates, specified cost estimates, and scope. Phased projects consider future phase needs in the project plan; each phase is able to stand alone as an individual project.

(44) Project--The process that includes the construction, repair, renovation, addition, alteration of a campus, building, or facility, or its infrastructure, or the acquisition of real property.

(45) Purchase--The acquisition of and interest in real property in exchange for valuable consideration.

(46) Real Property--Land with or without improvements such as buildings.

(47) Repair and Renovation (R&R)--Construction upgrades to an existing building, facility, or infrastructure that currently exists on campus; this includes the finish-out of shell space. R&R may add E&G NASF space.

(48) Research Facility--A facility used primarily for experimentation, investigation, or training in research methods, professional research and observation, or a structured creative activity within a specific program. Included are laboratories used for experiments or testing in support of instructional, research, or public service activities.

(49) Shell Space--An area within a building with an unfinished interior designed to be converted into usable space at a later date.

(50) Space Need--The result of the comparison of an institution's actual space to the predicted need as calculated by the Space Projection Model.

(51) Space Projection Model--An assessment of space needs at institutions of higher education based on factors such as semester credit hours, programs, level of instruction, faculty, and E&G and research expenditures.

(52) Space Use Efficiency--A report that determines the efficiency of space use in existing classrooms and class labs as determined by an institution's performance in three areas: facilities demand, utilization, and average percent fill.

(53) Standard--Basis, criteria, or benchmark used for evaluating the merits of a project or an institutional comparison to a benchmark.

(54) Technical Research Building--Space used for research, testing, and training in a mechanical or scientific field. Special equipment is required for staff and/or student experimentation or observation. Included are specialized laboratories for new technologies that have stringent environmental controls on air quality, temperature, vibration, and humidity. Facilities generally include space for specialized technologies, semiconductors, biotechnology, advanced materials, quantum computing and advanced manufacturing quantum computing technology, nanoscale measurement tools, integrated microchip-level technologies for measuring individual biological molecules, and experiments in nanoscale disciplines.

(55) Unimproved Real Property--Real property on which there are no buildings or facilities.

(56) University System--The association of one or more public senior colleges or universities, medical or dental units, or other agencies of higher education under the policy direction of a single governing board.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403448

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

SUBCHAPTER B. REPORTING REQUIREMENTS

19 TAC §17.20, §17.21

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter B, §17.20 and §17.21, concerning Reporting Requirements. Specifically, the proposed amendment will clarify terminology used in this subchapter and align the rule more closely with statute and practice.

Rule 17.20(a) and (b) and rule 17.21(1), (2), and (4) add the term "Coordinating" before the existing nomenclature of "Board" to align with proposed definition changes in Subchapter A that specify the three distinct entities of the Board, Coordinating Board, and Board staff. This amendment clarifies the roles and responsibilities of each entity in rule.

Rule 17.20(a)(3) updates the property purchases reporting threshold from $1 million to $5 million to align with the reporting threshold update established in Section 11.03 of the FY 2024-25 General Appropriations Act.

Rule 17.21, Submission Procedures, is amended by removing "and the project complies with applicable state and federal requirements as listed on the form," since the authority to approve a facilities project rests with an institution's Board of Regents under Texas Education Code, Chapter 51, Subchapter T. The Coordinating Board's authority rests in a permissive review of purchases of improved real property (Texas Education Code, §61.0572(d)) and construction, repair, or rehabilitation of buildings and facilities (Texas Education Code, §61.058(b)). The Coordinating Board currently does not review these projects and solely collects data on the facilities projects at institutions of higher education.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section is clarity on the distinction between actions taken by the governing body, agency staff, and the agency as a whole and updates to facility submission requirements. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The amendments are proposed under Texas Education Code, Sections 61.0572 and 61.058, which provide the Coordinating Board with the authority to conduct the facilities programs governed by Texas Administrative Code, Title 19, Part 1, Chapter 17.

The proposed amendments affect the reporting threshold for improved real property purchases and align Coordinating Board referencing language in congruency with other Board rules.

§17.20.Facility Projects to Be Submitted to the Coordinating Board.

(a) Institutions shall submit data on the following projects to the Coordinating Board:

(1) New construction of building and facilities and/or additions to buildings and facilities having an E&G project cost of $10 million or greater;

(2) Repair and renovation projects for buildings and facilities having an E&G project cost of $10 million or greater;

(3) Improved real property purchases that the institution intends to include in the E&G buildings and facilities inventory if the purchase price is more than §5,000,000 [~~$1,000,000~~];

(4) Energy Savings Performance Contract projects; and

(5) Projects financed by Capital Construction Assistance Projects pursuant to Texas Education Code, §61.0572 and §61.058.

(b) Projects not specifically described in this rule, including but not limited to the following types of projects, are EXEMPT from Coordinating Board submission.

(1) Projects at The University of Texas at Austin, Texas A&M University, and Prairie View A&M University financed more than 50 percent with Permanent University Fund bond proceeds or Available University Fund funds;

(2) New Construction, repair, or rehabilitation of privately-owned buildings and facilities on land leased from an institution if the new construction, repair, or rehabilitation is financed entirely from funds not under the control of the institution;

(3) Gifts, grants, or lease-purchase arrangements intended for clinical or research facilities;

(4) New construction, repair, or rehabilitation projects to be undertaken pursuant to specific legislative authority;

(5) Lease of property or facilities;

(6) Acquisitions of unimproved real property;

(7) Acquisitions of improved real property that the institution does not intend to include in its E&G buildings and facilities inventory;

(8) New Construction, repair, renovation, or acquisition of buildings and facilities that are to be used exclusively for auxiliary enterprises and will not require appropriations from the legislature for operations, maintenance, or repair; and

(9) All gifts and grants of improved real property.

§17.21.Submission Procedures.

Institutions shall submit the following materials to the Coordinating Board:

(1) a signed Board of Regents Certification form certifying that the institution's Board of Regents or its delegated authority has approved the project [~~and that the project complies with applicable state and federal requirements as listed on the form~~] shall be submitted to the Coordinating Board before the start of the project.

(2) Institutions shall submit a completed project application electronically through the Coordinating Board's website once completed project costs are known, but no later than 90 days after the project has been added to the Facilities Inventory.

(3) For Real Property Purchase Projects, in addition to paragraphs (1) and (2) of this section, institutions shall submit appraisals in accordance with the below:

(A) An institution shall provide two current appraisal reports providing a current value of the property. The most recent appraisal of the local property tax appraisal district may be used for one of these reports.

(B) Appraisals shall be considered current if the appraisal was completed no more than two years prior to the date the project application is submitted to the Coordinating Board.

(4) Appraiser Credentials. Any appraisal report provided to the Coordinating Board under this section shall certify that the appraiser(s) meets one of the following requirements:

(A) Is designated an Accredited Senior Appraiser by the American Society of Appraisers (A.S.A.) with the professional designation in real estate;

(B) Is a member of the Appraisal Institute designated M.A.I. by the Appraisal Institute and is experienced in the valuation and evaluation of commercial, industrial, residential, and other types of properties, and who advise clients on real estate investment decisions;

(C) Is a member of the Appraisal Institute designated S.R.P.A. and is experienced in the valuation of commercial, industrial, residential, and other types of property;

(D) Is a member of the Appraisal Institute designated S.R.A. and is a real estate solutions provider who is experienced in the analysis and valuation of residential real property;

(E) Is a senior member of the National Association of Independent Fee Appraisers designated IFAS;

(F) Is an appraiser-counselor member of the National Association of Independent Fee Appraisers designated IFAC;

(G) Is a licensee of the Texas Appraiser Licensing and Certification Board in good standing and certified or licensed at the appropriate level for the project and must comply with the Uniform Standards of Professional Appraisal Practice (USPAP). The appraiser must also state that they have the knowledge and experience to complete the assignment competently; or

(H) Is a member of the American Society of Farm Managers and Rural Appraisers (ASFMRA) designated as an Appraisal Rural Appraiser, or ARA, who is experienced to value rural property matters as they relate to rural property acquisitions, dispositions or condemnation needs.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403450

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

SUBCHAPTER C. PROJECT STANDARDS

19 TAC §§17.30 - 17.32

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter C, §§17.30, 17.31, and 17.32, concerning Project Standards. Specifically, changes throughout this subchapter will align terminology with forthcoming new definitions in proposed subchapter A, which will separate out the meaning of "Board," "Coordinating Board," and "Coordinating Board Staff or Board Staff." Separate definitions will improve clarity of roles and responsibilities in Coordinating Board rules.

Rule 17.30(2) and 17.31(2) adds the term "Coordinating" to the existing term "Board" to align with proposed definition changes in Subchapter A that specify the three distinct entities of the Board, Coordinating Board, and Board staff.

Rule 17.30(4)(B)(ii), deletes the term "THECB" and replaces the term with "Board" to align with proposed definition changes in Subchapter A.

Rule 17.30(1), 17.31(1), and 17.32(1) deletes the specificity of the use of "Board's" as it relates to the space projection model, which is defined in Subchapter E under Board reports.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section is clarity on the distinction between actions taken by the governing body, agency staff, and the agency as a whole. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The proposed amendments affect Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter B, Sections 17.30, 17.31, and 17.32.

§17.30.Standards for New Construction and/or Addition Projects.

The established project standards for New Construction and Addition projects are as follows:

(1) Space Need--The project shall not create a campus space surplus, or add to an existing surplus, as determined by the [~~Board's~~] space projection model report, required by §17.100 of this title (relating to Board Reports).

(2) Cost--The construction building cost per gross square foot shall not exceed one standard deviation above the mean of similar projects received by the Coordinating Board within the last seven years, adjusted for inflation as described in the Coordinating Board's Construction Cost report, §17.100 of this title.

(3) Building Efficiency--The ratio of NASF to GSF for the space in projects for classrooms and general-purpose facilities shall be 0.60 or greater. Where the following specialized space is predominant in the project, the ratios of NASF to GSF shall be as follows:

(A) Office space: 0.65 or greater;

(B) Clinical facility; 0.50 or greater;

(D) Technical research buildings: 0.50 or greater; and

(E) For mixed-use facilities, the ratio of NASF to GSF shall be calculated for each space type and considered separately.

(4) Space Usage Efficiency--The use of existing classroom and class laboratory facilities will be considered when the project includes Education & General (E&G) square footage.

(A) Classroom space usage efficiency--

(i) A score of 75 points or higher is considered as meeting the standard; and

(ii) The classroom score will determine compliance for projects involving the following facility types: classroom, general; auditorium/theater; other facility types that appear to contain classrooms or similar space.

(B) Class laboratory space usage efficiency--

(i) A score of 75 points or higher is considered as meeting the standard; and

(ii) The class laboratory score will determine compliance for projects involving facility type laboratory, general and other facility types that appear, as determined by the Board [~~THECB~~ ] staff, to contain class laboratories or similar space.

(i) Overall score is a function of the classroom and class laboratory scores. A combined score of 150 or higher, as determined by summing the classroom and class laboratory scores, is considered as meeting the overall standard; and

(ii) The overall score is applicable for projects involving the following facility types: athletic; office, general; office, high rise; student center; other; and projects that cannot clearly be classified in a single category of facility type.

§17.31.Standards for Repair & Renovation Projects.

The established project standards for Repair and Renovation projects are as follows:

(3) Building Efficiency--The institution shall demonstrate that the project does not reduce the existing ratio of NASF to GSF for the building by more than 10 percent. If the project renovation is required to comply with federal or state requirements, the institution shall explain any reduction in the ratio of NASF to GSF for the building.

§17.32.Standards for Improved Real Property Purchase Projects.

The established project standards for Improved Real Property Purchase projects are as follows:

(2) Cost--The proposed purchase price should not exceed the higher of two appraisal values. If the purchase price is greater than the highest appraised value, the institution shall demonstrate the need for purchasing the property at the greater value.

(3) Repair and Renovation--If the project includes repair and renovation of any improvements on the property, the standards in §17.31 of this title (relating to Standards for Repair & Renovation Projects) shall apply.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403451

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

SUBCHAPTER E. REPORTS

19 TAC §17.100, §17.101

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter E, §17.100 and §17.101, concerning Board and Institutional Reports related to facilities, space need, and efficiency. Specifically, these changes align rules with current agency practices related to producing reports for resource planning.

Rule 17.100 provides that the Board delegates to the Commissioner of Higher Education to approve the required reports listed, including the space projection model, space usage efficiency, and construction costs, as required under Texas Education Code, §§61.0572 and 61.058.

Rule 17.100(1), (2), and (3) amend language to define each of the reports and delete unnecessary language related to each of the reports.

Rule 17.100(1)(A) provides that the existing General Academic Institutions, Technical Colleges, and State Colleges Formula Advisory Committee and Health-Related Institutions Formula Advisory Committee may review the space projection model as part of tasks assigned to the committees in rule 1.169 and 1.176 as the model is currently in use by the legislature in making appropriations to these institutions of higher education. This replaces a provision currently in the rule providing that the Commissioner may convene a separate committee to review the model and streamlines the process using standing advisory committees.

Rule 17.100(2) deletes duplicative language pertaining to the space usage efficiency report.

Rule 17.100(3) adds the term "Coordinating" to the existing term "Board" to align with proposed definition changes in Subchapter A that specify the three distinct entities of the Board, Coordinating Board, and Board staff.

Rule 17.101 amends terminology throughout the rule to align with the proposed definition changes in Subchapter A that specify the three distinct entities of the Board, Coordinating Board, and Board staff. This allows for the specific identification of responsible parties completing each specified action or report.

Rule 17.101(1)(B) includes an additional use of the data, noting that the facilities inventory data may also be used to calculate the construction cost standard.

Rule 17.101(2)(A)(i) - (iv) removes reporting based on specific dollar thresholds with new language that aligns the thresholds in accordance with language from Article IX, General Provisions, Section 11.03, Statewide Capital Planning, of the Fiscal Year 2024-25 General Appropriations Act.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section is clarity on approval of facilities reports and on the distinction between actions taken by the governing body, agency staff, and the agency as a whole. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The amendments are proposed under Texas Education Code, Sections 61.0572 and 61.058, which provide the Coordinating Board with the authority to conduct the facilities programs governed by Chapter 17.

The proposed amendments affect Texas Administrative Code, Title 19, Part 1, Chapter 17.

§17.100.Coordinating Board Reports.

The Commissioner [~~Board~~] shall annually approve [~~prepare~~] the following reports:

(1) Space Projection Model. [~~The Board, in consultation with the institutions, shall develop~~] A space planning model [~~models~~] to estimate the NASF of E&G space needed at institutions of higher education.

(A) Periodic Review. The General Academic Institutions, Technical Colleges, and State Colleges Formula Advisory Committee and Health-Related Institutions Formula Advisory Committee established under chapter 1, subchapter L of this title (relating to Formula Advisory Committee-General Academic Institutions, Technical Colleges, and State Colleges) and chapter 1, subchapter M, of this title (relating to Formula Advisory Committee-Health-Related Institutions) may [~~Each biennium, the Commissioner may convene an advisory committee of institutional representatives to~~] review the model and recommend changes.

(B) Use. The Board may [~~shall~~] use the models developed under this section to determine the need for space on campuses, as a component of recommended funding formulas for public institutions of higher education [~~other than community colleges~~], and as standards for facilities development projects.

(2) Space Usage Efficiency (SUE). An annual report on [~~The Board shall collect data and publish reports designed to inform the public and other state agencies of~~] the intensity of use of E&G facilities at institutions of higher education for classrooms and class laboratories. Classroom and class lab utilization data are not calculated for health-related institutions.

~~[(A) Periodic Review. The Board shall annually calculate the utilization of classrooms and class laboratories for the institutions.]~~

~~[(B) Use. The Board shall use the models developed under this section to determine the utilization of classrooms and class laboratories for the institutions.]~~

(3) Construction Costs. A calculation of [~~The Board shall annually calculate and report~~] the mean and one standard deviation above the mean for construction building costs per square foot. The costs shall be based on similar projects reported to the Coordinating Board, within the immediate prior seven years, annually adjusted for inflation for the region of the state where the project is located. As a minimum, the calculations shall be developed for both new construction/addition and repair and renovation for all facility types available and shall be published on the agency website.

§17.101.Institutional Reports.

Institutions of higher education shall submit current data to the Coordinating Board for the following reports:

(1) Facilities Inventory.

(A) Periodic Review. Institutions shall report a record of all property, buildings, and rooms occupied or in the control of an institution in a format specified by the Coordinating Board.

(i) The institution shall update its inventory of facilities on an ongoing basis.

(ii) The inventory is subject to periodic audits.

(iii) The inventory shall be certified by the institution annually on or before November 1, or as specified by the Board staff.

(B) Use. The Coordinating Board shall use the data reported in the facilities inventory for the facilities audit program and for other required or requested analyses. The facilities inventory shall be used to complete the following reports:

(i) the Space Projection Model;

(ii) calculation of an institution's Building Replacement Estimate Report; [~~and~~]

(iii) calculation of the Space Usage Efficiency (SUE) report; and[.]

(iv) calculation of the construction cost standard.

(2) Facilities Development Reports.

(A) Capital Expenditure Plan (MP1). On or before July 1 of every year, beginning in 2004, an institution shall submit an update to its Capital Expenditure Plan (MP1) on file with the Coordinating Board, as required by Texas Education Code, §61.0572(b)(4). In every even-numbered year, the Commissioner [~~Board~~] shall provide Facilities Development Plan data to the Bond Review Board for inclusion in the Capital Expenditure Report. This report may include planned maintenance, facilities adaptation, and deferred maintenance projects. The data may be used by the Coordinating Board to respond to legislative requests, predictions of future space need, and similar analyses. The report shall include projects that are planned [~~or may be submitted to the Board~~] within the next five years, regardless of funding source, in alignment with dollar thresholds established by the most recent General Appropriations Act and Bond Review Board guidelines:

(i) new construction projects [~~$1,000,000 or more~~];

(ii) repair and rehabilitation projects [~~$1,000,000 or more~~];

(iii) information resource projects [~~that cumulatively would total $1,000,000 or more in one year~~];

(iv) property purchases that cumulatively would total more than the dollar thresholds established by the most recent General Appropriations Act and Bond Review Board guidelines [~~$1,000,000 or more in one year~~] (the actual property address or location for individual property acquisitions may be, but are not required to be, identified in a single proposed project entitled "property acquisitions" with a total cost of all purchases or acquisitions projected over the reporting period);

(v) the funding source for any planned project identified in clauses (i), (ii), (iii), and (iv) of this subparagraph; and

(B) Campus Condition Report. Annually, an institution shall provide a copy of its Campus Condition Report to the Coordinating Board, as supplied to their Governing Board.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403452

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

SUBCHAPTER F. FACILITIES AUDIT

19 TAC §§17.110 - 17.114

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter F, §§17.110 - 17.114, concerning Facilities Audits. Specifically, the amendments update verbiage in the sections listed individually below.

Rules 17.110 and 17.114 update nomenclature from "THECB staff" to "Board staff" and from "THECB" to "Coordinating Board" in alignment with proposed changes to definitions in Subchapter A. The amendments allow for the specific identification of responsible parties completing each specified action or report.

Rule 17.110(a) removes the use of "approved" from facilities development projects as the Coordinating Board does not approve projects and solely collects data on the projects, in accordance with Texas Education Code, §§61.0572 and 61.058. Additional revisions correct terminology related to educational and general facilities.

Rules 17.111(1), 17.112, and 17.113(a) add the term "Coordinating" to the existing term "Board" to align with proposed definition changes in Subchapter A that specify the three distinct entities of the Board, Coordinating Board, and Board staff. The amendments allow for the specific identification of responsible parties completing each specified action or report.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section is clarity on the distinction between actions taken by the governing body, agency staff, and the agency as a whole. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The amendments are proposed under Texas Education Code, Sections 61.0572 and 61.058, which provide the Coordinating Board with the authority to conduct the facilities programs governed by Chapter 17.

The proposed amendments affect Title 19, Part 1, Chapter 17, Subchapter F, §§17.110 - 17.114.

§17.110.General Provisions.

(a) [~~The~~] Board staff shall periodically conduct a comprehensive audit of all educational [~~education~~ ] and general facilities on the campuses of institutions to verify the accuracy of the institutional facilities inventory and [~~approved~~] facilities development projects for each of those institutions.

(b) No later than 30 days after Board [~~THECB~~ ] staff has presented the Facilities Audit Report to the Board (or appropriate standing committee of the Board), Board staff [~~the Board~~] files a copy of the report with the institution and the Legislative Budget Board.

(1) The institution presents to the Coordinating Board [~~THECB~~] a copy of the formal report of the audit and its documented processes that demonstrate the accuracy of the data; and

(2) confirmation that the review includes consideration of the facilities audit objectives stated in §17.111 of this title (relating to Facilities Audit Objectives).

§17.111.Facilities Audit Objectives.

The objectives of the audit are to determine whether selected institutions of higher education:

(1) are accurately reporting their facilities inventory data to the Coordinating Board; and

(2) have followed the Board rules and received approval where such approval was required.

§17.112.Data Sources.

The Coordinating Board may use the following data sources in the course of the audit:

(1) Institutional Capital Expenditure Plans (MP1);

(2) Campus Condition Report as submitted to the governing board;

(3) Space Model Projection Reports;

(4) Reports required by the Educational Data Center;

(5) Facilities Inventory Reports;

(6) Facilities Development and Improvement Applications and Reviews;

(7) Classroom and Class Laboratory Utilization Reports;

(8) Energy Savings Performance Contracts;

(9) Governing Board facilities approvals; and

(10) Any other institutional data deemed appropriate by the Coordinating Board staff.

§17.113.Institutional Audit Cycle.

(a) The Coordinating Board shall determine the frequency and the scope of the audits authorized by this section; audits shall be limited to objectives stated in §17.111 of this title (relating to Facilities Audit Objectives).

(b) The Board may conduct an audit of an institution more often than every five years upon the request of the institution, the Board, the Legislature, or another agency within revenue appropriated for this purpose.

§17.114.Audit Components.

Audits consist of two components:

(1) On-Site Audit of an Institution's Facilities Inventory:

(A) Institutions may participate in the Peer Review Team (PRT) process, by which institutions aid in auditing one another, with the participation of Board [~~THECB~~] staff. Institutions participating in the PRT program must provide one or more qualified individuals with facilities management for the PRT pool maintained by the Board [~~THECB~~] Staff; or

(B) Institutions choosing not to participate in the PRT audit process are required to conduct self-audits in accordance with §17.110(c) of this chapter (relating to General Provisions) [~~Subchapter F, 17.110(c)~~].

(2) Audit of an Institution's Facilities Development Projects:

(A) The Internal Auditor of an institution (or its System Office) may determine if facilities projects were submitted to the Coordinating Board in accordance with §17.20 of this title (relating [~~Relating~~] to Facility Projects to Be Submitted to the Coordinating Board) and submit a report to the Coordinating Board [~~THECB~~].

(B) Board staff [~~The THECB~~] shall publish a Facilities Audit Protocol on the agency's website, including details on the process and timing of these components.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403453

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

SUBCHAPTER G. TEXAS STATE TECHNICAL COLLEGE SYSTEM ACQUISITIONS OF LAND AND FACILITIES

19 TAC §17.200

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules in Texas Administrative Code, Title 19, Part 1, Chapter 17, Subchapter G, §17.200, concerning Texas State Technical College System Acquisitions of Land and Facilities. Specifically, this new section will establish the Texas State Technical College land and facilities projects requiring Coordinating Board approval and the method by which the Coordinating Board would review and consider the projects for approval.

Rule 17.200 ensures a documented approval process for certain Texas State Technical College System land and facilities purchases if the combined value is more than $300,000, in accordance with Texas Education Code, §135.02(c). This differs from facilities related projects at other institutions of higher education for which an institution's Board of Regents has sole authority to approve and the Coordinating Board only receives information on the project.

The rule requires the institution to submit the project in accordance with §17.21, Submission Procedures, and the Coordinating Board to assess the project in accordance with the standards provided under §17.32, Standards for Improved Real Property Purchase Projects.

Emily Cormier, Assistant Commissioner for Funding, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Emily Cormier, Assistant Commissioner for Funding, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as the result of adopting this rule is to codify approval requirements in accordance with Texas Education Code, §135.02(c), which requires the Coordinating Board to approve certain Texas State Technical College System land and facilities purchases if the combined value is more than $300,000. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

The new section is proposed under Texas Education Code, §135.02(c), which requires the Coordinating Board to approve certain Texas State Technical College System land and facilities purchases.

The proposed new section would affect Title 19, Part 1, Chapter 17, by adding Subchapter G, §17.200.

§17.200.Projects Requiring Board Approval.

(a) Notwithstanding any other part of chapter 17, the Commissioner must review and approve the acceptance or acquisition of any land and facilities for Texas State Technical College System if it meets the following requirements:

(1) the board of regents of the Texas State Technical College System requests to place the land and facilities on its E&G space inventory; and

(2) the combined value of the land and facilities is more than $300,000.

(b) For all real property acquisitions, Texas State Technical College System shall comply with §17.21 of this chapter (relating to Submission Procedures) for reporting related information to the Board.

(c) If the property has improvements, the Commissioner will assess the project in accordance with project standards for Improved Real Property Purchase Projects in §17.32 of this chapter (relating to Standards for Improved Real Property Purchase Projects).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403454

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6548

CHAPTER 22. STUDENT FINANCIAL AID PROGRAMS

SUBCHAPTER O. TEXAS LEADERSHIP RESEARCH SCHOLARS PROGRAM

19 TAC §22.301, §22.310

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to Texas Administrative Code, Title 19, Part 1, Chapter 22, Subchapter O, §22.301 and §22.310, concerning the Texas Leadership Research Scholars Program. Specifically, this amendment will clarify the type of institutions eligible to participate and how the allocation of funds is determined.

Texas Education Code (TEC), Chapter 61, Subchapter T-3, requires the Coordinating Board to adopt rules for the administration of the program, including rules providing for the amount and permissible uses of a scholarship awarded under the program. The amended sections provide clarity and guidance to students, participating institutions, and Coordinating Board staff for the program's implementation.

Rule 22.301, Definitions, provides definitions for words and terms within Texas Leadership Research Scholars rules. The definitions provide clarity for words and terms that are integral to the understanding and administration of the Texas Leadership Research Scholars rules. Specifically, the amended section clarifies that general academic institutions are eligible to participate in the Texas Leadership Research Scholars Program.

Rule 22.310, Scholarship Amounts and Allocation of Funds, outlines the scholarship amounts and how the Coordinating Board will allocate the funds to institutions. The rule provides clarification of the statutory requirements related to the minimum amount of the award and how the amount will be calculated to provide clarity for the annual allocation formula for each institution. Specifically, the amended section outlines how the allocation of initial awards will be determined between eligible institutions, clarifying the data used to determine each eligible institution's share of awarded research doctoral degrees, and if there is insufficient funding to award more than seventy-five initial scholarships the awards will be split between public research and emerging institutions. This calculation ensures that initial scholarship awards are being allocated to institutions successfully graduating research doctorates.

Dr. Jennielle Strother, Assistant Commissioner for Student Success, has determined that for each of the first five years the sections are in effect there may be fiscal implications for state or local governments as a result of enforcing or administering the rules for the Texas Leadership Research Scholars program. However, participation in the program is voluntary for institutions of higher education. Fiscal implication of the potential for increased funding to institutions of higher education is funded as part of the Texas Leadership Research Scholars program in statute and the General Appropriations Act. Additional ancillary costs to institutions that choose to participate are assumed within the fiscal note for the legislation. The rules do not impose additional costs of compliance beyond those provided in statute. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Dr. Jennielle Strother has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the rule will be the increase in number of high-achieving, economically disadvantaged students who pursue higher education opportunities that may not have been able to afford or access otherwise. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. Participation in the Texas Leadership Research Scholars program is voluntary.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Dr. Jennielle Strother, Assistant Commissioner for Student Success, P.O. Box 12788, Austin, Texas 78711-2788, or via email at StudentSuccess@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under Texas Education Code, Section 61.897, which provides the Coordinating Board with the authority to adopt rules as necessary to implement the Texas Leadership Research Scholars Program.

The proposed amendment affects Texas Education Code, Sections 61.891 - 61.897.

§22.301.Definitions.

In addition to the words and terms defined in §22.1 of this chapter (relating to Definitions) the following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise. In the event of conflict, the definitions in this subchapter shall control.

(1) Administrator--The institution of higher education contracted by the Coordinating Board to administer the Program.

(2) Eligible Institution--A general academic teaching institution as defined by Texas Education Code, §61.003(3) [~~section 61.003(3) of the Texas Education Code and designated as either a public research university or public emerging research university under the Coordinating Board's accountability system~~].

(3) Leadership Scholarship--The scholarship awarded to an undergraduate student in the program under subchapter N of this chapter (relating to Texas Leadership Scholars Grant Program).

(4) Program--The Texas Leadership Research Scholars Grant Program.

(5) Research Doctoral Degree--In this subchapter, Research Doctoral Degree means a research doctoral degree that is included on the list of research doctoral degrees published annually by Coordinating Board staff on March 1 of each fiscal year. The list of research doctoral degrees shall be annually updated by Coordinating Board staff to reflect all degree titles included in the most recently published National Science Foundation Survey of Earned Doctorates and any additional degree titles identified by the Commissioner.

(6) Research Scholar--An eligible graduate student who was nominated and selected to participate in the Texas Leadership Research Scholars Grant Program.

(7) Research Scholarship--The scholarship awarded to a graduate student in the Program.

§22.310.Scholarship Amounts and Allocation of Funds.

(a) Funding. The Coordinating Board may not award through this Program an amount that exceeds the amount of state appropriations and other funds that are available for this use.

(b) Scholarship Amounts.

(1) The Commissioner shall establish the amount of each Research Scholarship in an academic year that is 150% of the average of the amount of the Leadership Scholarships awarded across public research and public emerging research institutions under subchapter N of this chapter (relating to Texas Leadership Scholars Grant Program), based on available appropriations for the Program. The Scholarship may be applied toward housing, food, or other costs of attendance allowed under the Program, at the participating eligible institution as approved by the Coordinating Board.

(2) An Eligible institution may not reduce the amount of a scholarship by any gift aid for which the Research Scholar receiving the scholarship is eligible unless the total amount of a Research Scholar's scholarship plus any gift aid received exceeds the Research Scholar's cost of attendance.

(3) An Eligible institution shall ensure each Research Scholar receives the scholarship awarded under the program for four (4) years so long as the scholar maintains eligibility set forth in §22.303(b) of this subchapter (relating to Eligible Students).

(1) The Commissioner shall determine and announce the number of initial scholarships available to each participating eligible institution by January 31 of the prior fiscal year set forth in §22.303(a) of this subchapter, based on the following criteria:

(A) If there is sufficient funding to award more than seventy-five (75) initial Scholarships in a given fiscal year, the Coordinating Board shall award initial Scholarships to each eligible institution based on each eligible institution's share of awarded research doctoral degrees calculated using the most recent year available of data reported by the National Science Foundation in the annual Survey of Earned Doctorates; and

(B) If there is funding to award seventy-five (75) initial Scholarships or fewer in a given fiscal year, the Coordinating Board shall divide the initial Scholarships in the following way:

(i) 50% of available initial Scholarships will be allocated among public research universities based on each institution's share of awarded research doctoral degrees calculated using the most recent year available of data reported by the National Science Foundation in the annual Survey of Earned Doctorates; and

(ii) 50% of available initial Scholarships will be allocated among emerging research universities based on each institution's share of awarded research doctoral degrees calculated using the most recent year available of data reported by the National Science Foundation in the annual Survey of Earned Doctorates.

[(A) 50% of available initial Scholarships will be allocated among public research universities based on the institution's share of the number of research doctoral degrees awarded by public research universities in the prior academic year, as determined by the commissioner; and]

[(B) 50% of available initial Scholarships will be allocated among emerging research universities based on each institution's share of the number of research doctoral degrees awarded by public emerging research universities in the prior academic year, as determined by the commissioner.]

(2) The number of Scholarships allocated to each participating eligible institution for returning Research Scholars will be the number of Scholars eligible to receive the Scholarship set forth in §22.303(b) of this subchapter.

(3) Each participating eligible institution will receive an annual allocation equal to the number of Scholarships allocated to the institution times the amount established in subsection (b) of this section.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403455

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6537

CHAPTER 23. EDUCATION LOAN REPAYMENT PROGRAMS

SUBCHAPTER D. [~~LOAN REPAYMENT ASSISTANCE PROGRAM FOR~~] MENTAL HEALTH PROFESSIONALS LOAN REPAYMENT ASSISTANCE PROGRAM

19 TAC §§23.93, 23.94, 23.96, 23.97, 23.100 - 23.102

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new rules and amendments to Texas Administrative Code, Title 19, Part 1, Chapter 23, Subchapter D, §§23.93, 23.94, 23.96, 23.97, and 23.100 - 23.102, concerning the Mental Health Professionals Loan Repayment Assistance Program. Specifically, the amendments will align the subchapter with others in Chapter 23 regarding structure, form, and language; eliminate duplicative provisions; and clarify potential ambiguities in existing rules. The new sections will consolidate provisions from other rules related to program limitations and specific provisions affecting persons who first established eligibility for the program prior to September 1, 2024. The Coordinating Board is authorized to adopt rules as necessary for the administration of the program by Texas Education Code (TEC), Section 61.608.

The subchapter is retitled to conform with the titles of the other subchapters in Chapter 23.

Rule 23.93 is amended to make conforming changes to the subchapter title.

Rule 23.94 is amended by removing three unnecessary definitions and unnecessary portions of another definition. After the creation of a definition for "Coordinating Board" in §23.1 (relating to Definitions) in the general provisions for this chapter, the definition of "Board staff" in §23.94 is redundant, with all references to "Board staff" throughout the subchapter changed to "Coordinating Board." The terms "Local Mental Health Authority" and "Title I school" are used only once each in rule, so the definitions are eliminated and have been incorporated contextually when the terms appear. The definition of "full-time service" is amended to eliminate the listed conditions that constitute eligible service (existing subparagraphs (4)(A) - (D)). These conditions are included in the eligibility criteria described in §23.96 (relating to Eligible Applicants).

Rule 23.94 is further amended by expanding the existing definition of "service period." Specifically, an alternate definition is provided that allows service for at least 9 months of a 12-month academic year by a licensed specialist in school psychology. The existing definition conflicts with the typical employment contract for these individuals, inadvertently disqualifying some otherwise eligible applicants from receiving loan repayment funds. The expanded definition remedies this.

Rule 23.96 is amended to simplify program eligibility rules so they more clearly reflect Coordinating Board practice. The rule is retitled to conform to a consistent rule structure and naming convention throughout Chapter 23. Historically, eligibility for this program has been a two-step process, with applicants establishing initial eligibility for the program and then, after completing a service period, becoming eligible for disbursement of funds. These processes have since been combined, with applicants establishing eligibility after their first service period. Accordingly, subsection (a) of this section and repealed §23.98 (related to Eligibility for Disbursement of Loan Repayment Assistance) are consolidated into the amended subsection (a) and the new subsection (b). Eligible practice specialties, previously listed in repealed §23.95, also are incorporated in paragraph (a)(3). Further edits are made to clarify certain eligibility criteria, but the proposed rule changes will not substantively change program requirements. The existing subsection (b) is eliminated and reconstituted within the new §23.102 (relating to Provisions Specific to Mental Health Professionals Who Established Eligibility for the Program Before September 1, 2023).

Rule 23.97 is amended to clarify how the Coordinating Board prioritizes disbursement in the event that available funds are insufficient to offer loan repayment assistance to all eligible applicants. The rule is retitled to conform to a consistent rule structure and naming convention throughout Chapter 23. Existing subsections (b) and (c) are removed and reconstituted in §23.101 (relating to Limitations). The prioritization process in new subsection (b), which consolidates existing subsections (d), (e), and (f), is slightly amended in three substantive ways. First, subparagraph (b)(1)(C) is clarified to align with current practice that "MHPSA scores that reflect the highest degrees of shortage" means that the Coordinating Board ranks applications by MHPSA score in descending order, starting with applications with the highest score. Also, subparagraph (b)(1)(E) is amended to reflect that "rural area," which previously was not defined in rule, means a county with a population of less than 50,000 persons, which is the Coordinating Board's operational definition for the term in all loan repayment programs. Finally, paragraph (b)(2) is added based on the existing subsection (f) but further clarified that renewal applications from licensed marriage and family therapists will be prioritized over initial applications. Existing subsection (g) is removed and reconstituted in §23.100 (relating to Amount of Repayment Assistance).

Rule 23.100 is amended by adding some provisions that previously existed elsewhere in the subchapter and removing provisions that are relocated to other rules. Existing subsection (a) is redundant with provisions within §23.3 (relating to Methods of Disbursement) in the general provisions of this chapter and is removed. Existing subsection (b) and paragraph (e)(1) are removed and relocated to new §23.102 (relating to Provisions Specific to Mental Health Professionals Who Established Eligibility for the Program Before September 1, 2023). New subsection (a) has "on or after September 1, 2023" language removed to make it the clear default state and is rephrased to combine the provisions of existing subsection (c) and paragraph (e)(2). Existing subsection (d) is removed and reconstituted in §23.101 (relating to Limitations). New subsection (d) is the reconstituted §23.97(g).

Rule 23.101 is created to consolidate various program limitations that previously were spread throughout the subchapter. Paragraphs (1) and (2) are the reconstituted §23.97(b) and (c); paragraph (3) is the reconstituted §23.100(d); and paragraph (4) codifies existing Coordinating Board practice that loan repayment assistance amounts may never exceed unpaid principal and interest owed on eligible education loans.

Rule 23.102 is created to consolidate provisions that specifically apply to providers who established eligibility for the program prior to September 1, 2023. Subsections (a) and (b) are the reconstituted §23.96(b), (c), and (d), with changes to reflect the elimination of the outdated "two-step" eligibility process in rule; and subsection (c) is the reconstituted and consolidated §23.100(b) and (e)(1).

Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has determined that for each of the first five years the sections are in effect there would be no fiscal implications for state or local governments as a result of enforcing or administering the rules. There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rules. There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rules.

There is no impact on small businesses, micro businesses, and rural communities. There is no anticipated impact on local employment.

Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the establishment of rules that more clearly articulate Coordinating Board policy and better align with rules governing the Coordinating Board's other loan repayment assistance programs. There are no anticipated economic costs to persons who are required to comply with the sections as proposed.

Government Growth Impact Statement

(1) the rules will not create or eliminate a government program;

(2) implementation of the rules will not require the creation or elimination of employee positions;

(3) implementation of the rules will not require an increase or decrease in future legislative appropriations to the agency;

(4) the rules will not require an increase or decrease in fees paid to the agency;

(5) the rules will not create a new rule;

(6) the rules will not limit an existing rule;

(7) the rules will not change the number of individuals subject to the rule; and

(8) the rules will not affect this state's economy.

Comments on the proposal may be submitted to Dr. Charles W. Contéro-Puls, Assistant Commissioner for Student Financial Aid Programs, P.O. Box 12788, Austin, Texas 78711-2788, or via email at SFAPPolicy@highered.texas.gov. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendments and new sections are proposed under Texas Education Code, Section 61.608, which provides the Coordinating Board with the authority to adopt rules as necessary to administer the Loan Repayment Program for Mental Health Professionals.

The proposed amendments and new sections affect Texas Administrative Code, Title 19, Part 1, Chapter 23.

§23.93.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, chapter [~~Chapter~~] 61, subchapter [~~Subchapter~~] K, Repayment of Certain Mental Health Professional Education Loans. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.601 - 61.609.

(b) Purpose. The purpose of the Mental Health Professionals Loan Repayment Assistance Program [~~for Mental Health Professionals~~] is to encourage qualified mental health professionals to provide services to designated recipients in a mental health professional shortage area or state hospital, through a mental health authority, or to students in eligible schools.

§23.94.Definitions.

In addition to the words and terms defined in §23.1 of this chapter (relating to Definitions), the [~~The~~] following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

~~[(1) Board Staff--The staff of the Texas Higher Education Coordinating Board.]~~

(1) [~~(2)~~] CHIP--The Children's Health Insurance Program, authorized by the Texas Health and Safety Code, Chapter 62.

(2) [~~(3)~~] Community-Based Mental Health Services--The services found under the Texas Health and Safety Code, [~~Subchapter B,~~] Chapter 534, Subchapter B [~~Health and Safety Code~~].

(3) [~~(4)~~] Full-time Service--Employed or contracted full-time (at least 32 hours per week for providers participating only in the state-funded program, or at least 40 hours per week for providers participating in both the state funded program and the SLRP) by an agency or facility for the primary purpose of providing direct mental health services. [~~to:~~]

~~[(A) in a mental health professional shortage area:]~~

~~[(i) Medicaid recipients;]~~

~~[(ii) CHIP enrollees;]~~

~~[(iii) persons in facilities operated by or under contract with the Texas Juvenile Justice Department; and/or]~~

~~[(iv) persons in facilities operated by or under contract with the Texas Department of Criminal Justice; or]~~

~~[(B) patients in state hospitals;]~~

~~[(C) individuals receiving community-based mental health services from a local mental health authority; and/or]~~

~~[(D) students enrolled in an eligible district or school.]~~

~~[(5) Local Mental Health Authority--As defined in Texas Health and Safety Code, §531.002.]~~

(4) [~~(6)~~] Medicaid--The medical assistance program authorized by [~~Chapter 32,~~] the Texas Human Resources Code, Chapter 32.

(5) [~~(7)~~] MHPSAs--Mental Health Professional Shortage Areas (MHPSAs) are designated by the U.S. Department of Health and Human Services (HHS) as having shortages of mental health providers and may be geographic (a county or service area), demographic (low income population), or institutional (comprehensive health center, federally qualified health center, or other public facility). Designations meet the requirements of Sec. 332 of the Public Health Service Act, 90 Stat. 2270-2272 (42 U.S.C. 254e). [~~Texas MHPSAs are recommended for designation by HHS based on analysis of data by the Department of State Health Services.~~]

(6) Program--Mental Health Professionals Loan Repayment Assistance Program.

(7) [~~(8)~~] Psychiatrist--A licensed physician who is a graduate of an accredited psychiatric residency training program.

(8) Service Period--A period of:

(A) twelve (12) consecutive months qualifying a mental health professional for loan repayment assistance; or

(B) for a mental health professional described by §23.96(a)(3)(F) of this subchapter (relating to Applicant Eligibility), at least nine (9) months of a 12-month academic year qualifying the professional for loan repayment assistance.

~~[(9) Service Period--A period of 12 consecutive months qualifying a mental health professional for loan repayment.]~~

(9) [~~(10)~~] SLRP--A grant provided by the Health Resources and Services Administration to assist states in operating their own State Loan Repayment Program (SLRP) for primary care providers working in Health Professional Shortage Areas (HPSA).

(10) [~~(11)~~] State Hospital--Facilities found under the Texas Health and Safety Code, §552.0011[~~, Health and Safety Code~~].

~~[(12) Title I School--Texas public school that receives federal funding under Title I, Elementary and Secondary Education Act of 1965 (20 U.S.C. §6301 et seq.).]~~

§23.96.Applicant Eligibility [~~for Conditional Approval of Applications~~].

(a) To be eligible to receive loan repayment assistance, an applicant [~~for the Board staff to reserve loan repayment funds, a mental health professional~~] must:

(1) submit a [~~ensure that the Board staff has received the~~] completed application to the Coordinating Board by the established deadline, which will be posted on the program web page;

(2) be a U.S. citizen or a Legal Permanent Resident and have no license restrictions;

(3) currently be employed as one of the following eligible practice specialties: [~~not be currently fulfilling another obligation to provide mental health services as part of a scholarship agreement, a student loan agreement, or another student loan repayment agreement.~~]

(A) a psychiatrist;

(B) a psychologist, as defined by §501.002, Texas Occupations Code;

(D) an advanced practice registered nurse, as defined by §301.152, Texas Occupations Code, who holds a nationally recognized board certification in psychiatric or mental health nursing;

(E) a licensed clinical social worker, as defined by §505.002, Texas Occupations Code;

(F) a licensed specialist in school psychology, as defined by §501.002, Texas Occupations Code;

(G) a licensed chemical dependency counselor, as defined by §504.001, Texas Occupations Code; or

(H) a licensed marriage and family therapist, as defined by §502.002, Texas Occupations Code; and

(4) have completed one, two, or three consecutive service periods:

(A) in an MHPSA, providing direct patient care to:

(i) Medicaid enrollees;

(ii) CHIP enrollees, if the practice serves children;

(iii) persons in a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department or its successor; or

(iv) persons in a secure correctional facility operated by or under contract with any division of the Texas Department of Criminal Justice or its successor;

(B) in a state hospital, providing mental health services to patients; or

(C) providing mental health services to individuals receiving community-based mental health services from a local mental health authority, as defined in Texas Health and Safety Code, §531.002.

(b) Notwithstanding subsection (a)(4) of this section, to be eligible to receive loan repayment assistance as a specialist in school psychology as outlined under subsection (a)(3)(F) of this section, the applicant must:

(1) have completed one, two, or three consecutive service periods of employment in:

(A) a school district which is located partially or completely in a MHPSA;

(B) an open-enrollment charter school located in a MHPSA; or

(C) a Texas public school that receives federal funding under Title I, Elementary and Secondary Education Act of 1965 (20 U.S.C. §6301 et seq.); and

(2) have provided mental health services to students enrolled in that district or school during that time of employment.

~~[(b) For applicants who first establish eligibility for the program before September 1, 2023, a mental health professional must:]~~

[(1) agree to provide five consecutive years of eligible service in a Mental Health Professional Shortage Area, with the understanding that the professional will be released from the agreement if funding for continued loan repayment is not appropriated; and]

~~[(2) agree to provide mental health services to:]~~

~~[(A) Individuals enrolled in Medicaid or CHIP or both; or]~~

[(B) persons committed to a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department or persons confined in a secure correctional facility operated by or under contract with any division of the Texas Department of Criminal Justice.]

~~[(c) For applicants who first establish eligibility for the program on or after September 1, 2023, a mental health professional must:]~~

[(1) agree to provide three consecutive years of eligible service in a Mental Health Professional Shortage Area, with the understanding that the professional will be released from the agreement if funding for continued loan repayment is not appropriated; and]

~~[(2) agree to provide mental health services to:]~~

~~[(A) Individuals enrolled in Medicaid or CHIP or both; or]~~

[(d) Notwithstanding subsection (c), for applicants who first establish eligibility for the program on or after September 1, 2023, who provide mental health services to patients in state hospitals, individuals receiving community-based mental health services from a local mental health authority, or students enrolled in an eligible district or school, a mental health professional must agree to provide three consecutive years of eligible service as outlined in §23.98 of this subchapter (relating to Eligibility for Disbursement of Loan Repayment Assistance).]

§23.97.Applicant Ranking Priorities [~~Selection of Eligible Applicants and Limitations~~].

(a) Each fiscal year an application deadline will be posted on the program web page.

(b) If there are not sufficient funds to offer loan repayment assistance for all eligible providers, applications shall be prioritized as follows:

(1) Applications from eligible providers from practice specialties described in §23.96(a)(3)(A) - (G) of this subchapter (relating to Applicant Eligibility), ranked by the following criteria:

(A) renewal applications;

(B) applications from providers who sign SLRP contracts;

(C) applications from providers whose employers are located in an MPHSA, prioritizing higher MHPSA scores. If a provider works for an agency located in an MHPSA that has satellite clinics and the provider works in more than one of the clinics, the highest MHPSA score where the provider works shall apply. If a provider travels to make home visits, the provider's agency base location and its MHPSA score shall apply. If a provider works for different employers in multiple MHPSAs having different degrees of shortage, the location having the highest MHPSA score shall apply;

(D) applications from providers in state hospitals;

(E) applications from providers whose employers are located in counties with a population of less than 50,000 persons. In the case of providers serving at multiple sites, at least 75% of their work hours are spent serving in counties with a population of less than 50,000 persons; and

(F) applications received on the earliest dates; and

(2) Applications from eligible providers from the practice specialty described in §23.96(a)(3)(H) of this subchapter, ranked by the following criteria:

(A) renewal applications; and

(B) applications received on the earliest dates.

[(b) Not more than 10 percent of the number of repayment assistance grants paid under this subchapter each year may be awarded to mental health professionals providing mental health services to persons committed to a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department or persons confined in a secure correctional facility operated by or under contract with any division of the Texas Department of Criminal Justice. Applications from these professionals will be selected on a first-come-first-served basis.]

[(c) Not more than 30 percent of the number of repayment assistance grants paid under this subchapter each fiscal year may be awarded to mental health professionals in any one of the eligible practice specialties, unless excess funds remain available after the 30 percent maximum has been met.]

~~[(d) For practice specialties outlined in §23.95(1) - (7) of this subchapter (relating to Eligible Practice Specialties), applications will be ranked in order of the following priorities:]~~

~~[(1) providers who benefitted from awards the previous year;]~~

~~[(2) providers who sign SLRP contracts;]~~

[(3) providers whose employers are located in areas having MHPSA scores that reflect the highest degrees of shortage. If a provider works for an agency located in an MHPSA that has satellite clinics and the provider works in more than one of the clinics, the highest MHPSA score where the provider works shall apply. If a provider travels to make home visits, the provider's agency base location and its MHPSA score shall apply. If a provider works for different employers in multiple MHPSAs having different degrees of shortage, the location having the highest MHPSA score shall apply;]

~~[(4) providers in state hospitals;]~~

~~[(5) providers whose employers are located in rural areas, if, in the case of providers serving at multiple sites, at least 75% of their work hours are spent serving in those areas; and]~~

~~[(6) providers whose applications were received on the earliest dates.]~~

[(e) If funds remain available after loan repayment awards have been reserved for applicants selected according to the criteria stated in subsection (d) of this section, applications for practice specialties outlined in §23.95(1) - (7) of this subchapter will be ranked in order of the following priorities, regardless of the applicant's practice specialty:]

[(1) providers whose employers are located in areas having MHPSA scores that reflect the highest degrees of shortage. If a provider works for an agency located in an MHPSA that has satellite clinics and the provider works in more than one of the clinics, the highest MHPSA score where the provider works shall apply. If a provider travels to make home visits, the provider's agency base location and its MHPSA score shall apply. If a provider works for different employers in multiple MHPSAs having different degrees of shortage, the location having the highest MHPSA score shall apply;]

~~[(2) providers whose employers are located in rural areas, if, in the case of providers serving at multiple sites, at least 75% of their work hours are spent serving in those areas; and]~~

~~[(3) providers whose applications were received on the earliest dates; and]~~

~~[(4) providers eligible under subsection in §23.95(8) of this subchapter.]~~

[(f) If funds remain available after loan repayment awards have been reserved for applicants selected according to the criteria stated in subsection (e) of this section, applications for practice specialties outlined in §23.95(8) of this subchapter, will be ranked in order of the providers whose applications were received on the earliest dates.]

[(g) If state funds are not sufficient to allow for maximum award amounts stated in §23.100 of this subchapter (relating to Amount of Repayment Assistance) for all eligible applicants, the Board staff may adjust in an equitable manner the state-funded distribution amounts for a fiscal year, in accordance with TEC 61.607(d).]

§23.100.Amount of Repayment Assistance.

~~[(a) Loan repayment awards will be disbursed directly to lenders on behalf of eligible mental health professionals.]~~

[(b) Repayment assistance for each year of full-time service for mental health professionals who first established eligibility for the program before September 1, 2023, will be in an amount determined by applying the following applicable percentage to the maximum total amount of assistance allowed for the professional:]

~~[(1) for the first year, 10 percent;]~~

~~[(2) for the second year, 15 percent;]~~

~~[(3) for the third year, 20 percent;]~~

~~[(4) for the fourth year, 25 percent; and]~~

~~[(5) for the fifth year, 30 percent.]~~

(a) [~~(c)~~] Repayment assistance for each service period [~~year of full-time service for mental health professionals who first established eligibility for the program on or after September 1, 2023,~~] will be [~~in an amount~~] determined by applying the following applicable percentage to the lesser of the maximum total amount of assistance allowed for the provider's practice specialty, as established by §23.101 of this subchapter (relating to Limitations), or the total student loan debt owed at the time the provider established eligibility for the program [~~professional~~]:

(1) for the first service period [~~year~~], 33.33 percent;

(2) for the second service period [~~year~~], 33.33 percent; and

(3) for the third service period [~~year~~], 33.34 percent.

~~[(d) The total amount of state appropriated repayment assistance received by a mental health professional under this subchapter may not exceed:]~~

~~[(1) $160,000, for a psychiatrist;]~~

~~[(2) $80,000, for:]~~

~~[(A) a psychologist;]~~

~~[(B) a licensed clinical social worker, if the social worker has received a doctoral degree related to social work;]~~

~~[(C) a licensed professional counselor, if the counselor has received a doctoral degree related to counseling; or]~~

~~[(D) a licensed marriage and family therapist, if the marriage and family therapist had received a doctoral degree related to marriage and family therapy;]~~

~~[(3) $60,000, for an advanced practice registered nurse;]~~

[(4) $40,000, for a licensed specialist in school psychology, a licensed clinical social worker, a licensed marriage and family therapist, or a licensed professional counselor who has not received a doctoral degree related to social work or counseling; and]

[(5) $10,000, for assistance received by a licensed chemical dependency counselor, if the chemical dependency counselor has received an associate degree related to chemical dependency counseling or behavioral science.]

[(e) If a mental health provider's total student loan indebtedness is less than the total amount of repayment assistance allowed for the provider's practice specialty, the annual loan repayment award amounts based on full-time service will be the following percentages of the student loan debt owed at the time of application for enrollment in the program:]

[(1) For mental health professionals who first established eligibility for the program before September 1, 2023, amounts are 10% for year one, 15% for year two, 20% for year three, 25% for year four, and 30% for year five.]

~~[(2) For mental health professionals who first established eligibility for the program on or after September 1, 2023, amounts are 33.33% for year one, 33.33% for year two, and 33.34% for year three.]~~

(b) [~~(f)~~] An eligible provider [~~professional~~] may receive prorated loan repayment assistance based on the percentage of full-time service provided for each service period, for a minimum of twenty (20) [20] hours per week.

(c) [~~(g)~~] Failure to meet the program requirements will result in non-payment for the applicable service period(s) and, except under circumstances determined by the Coordinating Board [~~staff~~] to constitute good cause, removal from the program.

(d) If state funds are not sufficient to allow for maximum loan repayment assistance amounts stated in this section for all eligible applicants, the Coordinating Board may adjust in an equitable manner the state-funded distribution amounts for a fiscal year, in accordance with Texas Education Code, §61.607(d).

§23.101.Limitations.

In addition to the limitations associated with eligible education loans established in §23.2 of this chapter (relating to Eligible Lender and Eligible Education Loan), the following limitations apply to the Mental Health Professionals Loan Repayment Assistance Program.

(1) Not more than 10 percent of the number of loan repayment assistance grants paid under this subchapter each year may be offered to providers providing mental health services to persons committed to a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department or persons confined in a secure correctional facility operated by or under contract with any division of the Texas Department of Criminal Justice. Applications from these providers will be selected in the order they were submitted.

(2) Not more than 30 percent of the number of loan repayment assistance grants paid under this subchapter each fiscal year may be offered to providers in any one of the eligible practice specialties, unless excess funds remain available after the 30 percent maximum has been met.

(3) The total amount of state appropriated repayment assistance received by a provider under this subchapter may not exceed:

(A) $160,000, for a psychiatrist;

(B) $80,000, for:

(i) a psychologist;

(ii) a licensed clinical social worker, if the social worker has received a doctoral degree related to social work;

(iii) a licensed professional counselor, if the counselor has received a doctoral degree related to counseling; or

(iv) a licensed marriage and family therapist, if the marriage and family therapist had received a doctoral degree related to marriage and family therapy;

(D) $40,000, for a licensed specialist in school psychology, a licensed clinical social worker, a licensed marriage and family therapist, or a licensed professional counselor who has not received a doctoral degree related to social work or counseling; and

(E) $10,000, for assistance received by a licensed chemical dependency counselor, if the chemical dependency counselor has received an associate degree related to chemical dependency counseling or behavioral science.

(4) A provider's loan repayment assistance amount may not exceed the unpaid principal and interest owed on one or more eligible education loans, as described in §23.2 of this chapter (relating to Eligible Lender and Eligible Education Loan).

§23.102.Provisions Specific to Mental Health Professionals Who Established Eligibility for the Program Before September 1, 2023.

(a) Applicant Eligibility. Notwithstanding §23.96(a) of this subchapter (relating to Applicant Eligibility), to be eligible to receive loan repayment assistance, a provider who first established eligibility for the program before September 1, 2023, must:

(1) submit a completed application to the Coordinating Board by the established deadline, which will be posted on the program web page;

(2) be a U.S. citizen or a Legal Permanent Resident and have no license restrictions;

(3) currently be employed as one of the eligible practice specialties listed in §23.96(a)(3)(A) - (H); and

(4) have completed one, two, three, four, or five consecutive service periods practicing in an MHPSA providing direct patient care to Medicaid enrollees and/or CHIP enrollees, if the practice serves children, or to persons committed to a secure correctional facility operated by or under contract with the Texas Juvenile Justice Department or its successor or in a secure correctional facility operated by or under contract with any division of the Texas Department of Criminal Justice or its successor.

(b) Notwithstanding subsection (a)(4) of this section, a psychiatrist who first established eligibility for the program before September 1, 2023, must have earned certification from the American Board of Psychiatry and Neurology or the American Osteopathic Board of Psychiatry and Neurology to qualify for loan repayment assistance for a fourth or fifth consecutive service period.

(c) Amount of Repayment Assistance. Notwithstanding §23.100(a) of this subchapter (relating to Amount of Repayment Assistance), for providers who first established eligibility for the program before September 1, 2023, repayment assistance for each service period will be determined by applying the following applicable percentage to the lesser of the maximum total amount of assistance allowed for the provider's practice specialty, as established by §23.101 of this subchapter (relating to Limitations), or the total student loan debt owed at the time the provider established eligibility for the program:

(1) for the first service period, 10 percent;

(2) for the second service period, 15 percent;

(3) for the third service period, 20 percent;

(4) for the fourth service period, 25 percent; and

(5) for the fifth service period, 30 percent.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403456

Nichole Bunker-Henderson

General Counsel

Texas Higher Education Coordinating Board

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 427-6365

PART 7. STATE BOARD FOR EDUCATOR CERTIFICATION

CHAPTER 229. ACCOUNTABILITY SYSTEM FOR EDUCATOR PREPARATION PROGRAMS

(Editor's note: In accordance with Texas Government Code, §2002.014, which permits the omission of material which is "cumbersome, expensive, or otherwise inexpedient," the figure in 19 TAC §229.1(c) is not included in the print version of the Texas Register. The figure is available in the on-line version of the August 9, 2024, issue of the Texas Register.)

The State Board for Educator Certification (SBEC) proposes amendments to 19 Texas Administrative Code (TAC) §§229.1, 229.2, 229.3, 229.4, 229.6, and 229.9, concerning accountability system for educator preparation programs. Chapter 229 establishes the performance standards and procedures for educator preparation program (EPP) accountability. The proposed amendments would provide for adjustments to the 2023-2024 Accountability System for Educator Preparation (ASEP) Manual; would clarify and streamline language and definitions; would organize the rule text by subchapter; and would include technical updates.

BACKGROUND INFORMATION AND JUSTIFICATION: EPPs are entrusted to prepare educators for success in the classroom. Texas Education Code (TEC), §21.0443, requires EPPs to adequately prepare candidates for certification. Similarly, TEC, §21.031, requires the SBEC to ensure candidates for certification demonstrate the knowledge and skills necessary to improve the performance of the diverse student population of this state. TEC, §21.045, also requires SBEC to establish standards to govern the continuing accountability of all EPPs. The SBEC rules in 19 TAC Chapter 229 establish the process used for issuing annual accreditation ratings for all EPPs to comply with these provisions of the TEC and to ensure the highest level of educator preparation, which is codified in the SBEC Mission Statement.

Following is a description of the topics for the SBEC's consideration for proposed amendments to 19 TAC Chapter 229.

Subchapter A. Accountability System for Educator Preparation Program Procedures

Proposed new Subchapter A and title would further organize the rule text and enable greater flexibility in rulemaking for the SBEC in the future.

§229.1. General Provisions and Purpose of Accountability System for Educator Preparation Programs.

Update of ASEP Manual:

The proposed amendment to Figure: 19 TAC §229.1(c) would update the ASEP manual as follows:

Updates to the table of contents would provide consistent descriptive language for the Principal Survey and Teacher Survey throughout the manual.

Updates to Chapter 1 would remove the date to future updates and to provide consistent descriptive language for the Principal Survey and Teacher Survey.

Updates to Chapter 3 would simplify the description of included individuals to clearly align with 19 TAC §229.4(a)(1)(A). The update would also remove the exception language related to the Performance Assessment for School Leaders, as starting in the 2023-2024 academic year. It is included in Indicator 1A, as prescribed by 19 TAC §229.2(27). Updates to the example also remove this exception. Finally, updates are made to the example to minimize the inclusion of test 291 and to remove 2 of the 3 examples, since it has expired and the procedure for combining the results is now rare. This provides clarity to the field about the calculations.

Updates to Chapter 4 would provide consistency to how the manual refers to the Appraisal of First-Year Teachers by Administrators, including the parenthetical language "Principal Survey," which is in general usage in the field. This will provide clarity to stakeholders. Further updates will provide clearer language related to the inclusion criteria for teachers in the survey population, including the requirements of employment at the time of the PEIMS snapshot date and holding of their first certificate. This will provide transparency to the field. The worked example would also be updated to reflect these changes.

Updates to Chapter 5 would replace the term "STAAR progress measure" with "STAAR Annual Growth Points" to follow the language in use in 19 TAC Figure: §97.1001(b). This will provide a clear match between the ASEP manual and the data source. The updates would clarify the included individuals, adding a requirement of being enrolled or finishing an EPP within five years prior to their first year employed as a certified teacher of record. This follows inclusion criteria for the principal survey and teacher survey and ensures a clear boundary for the included population. The updates would also clarify the included subject areas and certificate requirements. This would provide transparency as to how these calculations are conducted. The section about included assessments would be updated to match 19 TAC Figure: §97.1001(b), which would provide an accurate description of the data. The section about the scoring approach would be updated to better describe the process used to do the calculation, based on the data that are available. The worked example would be updated based on these changes.

Updates to Chapter 6 would specify that beginning in the 2024-2025 academic year, certificate deactivations must meet the requirements in the newly adopted Chapter 228, Requirements for Educator Preparation Programs. This will provide transparency to the field about this requirement. Updates would also note the timeline for the evaluation of the new observations in adopted new 19 TAC Chapter 228, Subchapter F, Support for Candidates During Required Clinical Experiences, with the new requirements first being used in the 2025-2026 academic year. This includes a requirement that beginning in the 2025-2026 academic year, only candidates that began their clinical experiences after the effective date of the rule would be included in the evaluation. This provides EPPs the opportunity to update their practices while ensuring that the evaluation for this indicator is based on the rules that were in place for the duration of the clinical experience. Additional updates would clarify that observations must occur within the date range of the clinical experience, providing clarity to the field. Updates would also remove the exclusion of demographic data for indicator 4b. This exclusion is no longer needed because the data is now collected and can be used. This update would increase the total amount of data used in the determination of ASEP statuses and align indicator 4b with the other indicators. An update to the worked example would correct the language used, for clarity.

Updates to Chapter 7 would provide consistency to how the manual refers to the Evaluation of Educator Preparation Programs by Teachers, including the parenthetical languages "Teacher Survey," which is in general usage in the field. This will provide clarity to stakeholders. Further updates would provide clearer language related to the inclusion criteria for teachers in the survey population, including the requirements of employment at the time of the PEIMS snapshot date and holding their first certificate. Updates would also remove outdated language. This will provide transparency to the field. The worked example would also be updated to reflect these changes.

Updates to Chapter 8 would remove the EPP commendations for the 2023-2024 academic year. This will provide a pause while Texas Education Agency (TEA) staff work with the Board and stakeholders to update the commendation system aligned with new requirements in Chapter 228.

Updates to Chapter 9 would update the examples to include the language about the surveys updated earlier in the rule. This would provide consistency in usage. Updates would also provide an additional year for programs to make improvements on specific indicators by increasing the number of years in a row necessary for a negative value to be introduced into the Index system from two consecutive years to three consecutive years. Currently, if a program fails the same indicator for the same demographic group or at the aggregated "all" level for two years in a row, the weight assigned to the point value is -1, which has a greater impact on the overall score than missing in the first year, where the weight assigned is a 0. The update would change the timeline so that if a program were to miss in the second year, the value would also be 0, and if the program were to miss for the third year consecutively, then the negative weight would be introduced. This is aligned with discussion from the Board and recommended by stakeholders. The worked example would be updated to reflect this change.

Update to Commendations

The update to §229.1(d) would simplify the language related to commendations and note that commendations will not be designated for the 2023-2024 reporting year. This will provide a pause while TEA staff work with the Board and stakeholders to update the commendation system aligned with new requirements in Chapter 228.

§229.2. Definitions.

The proposed amendment to §229.2(5) "Beginning teacher" would clarify the certification status for a beginning teacher. This would align the definition with the requirements used for the sample population for ASEP indicator 3, which is where the definition is used.

The proposed amendment to §229.2(6) "Candidate" would clarify the enrollment status for a candidate and provide a technical edit to remove a reference that is no longer used. This would align the definition with how it is used elsewhere in the chapter.

The proposed amendment to §229.2(9) "Clinical teaching" would include a technical cross-reference edit to reflect the newly adopted Chapter 228 to change references from §228.35 to §228.2.

The proposed amendment to §229.2(13) "Cooperating teacher" would align the wording to reflect the wording in the newly adopted Chapter 228.

The proposed amendment to §229.2(24) "Internship" would include a technical cross-reference edit to reflect the newly adopted Chapter 228 to change references from §228.35 to §228.2.

The proposed amendment to §229.2(25) "Mentor" would align the wording to reflect the wording in the newly adopted Chapter 228.

The proposed amendment to §229.2(26) would strike the definition of "New Teacher" because it is not used in the rules. Subsequent definitions would be renumbered.

The proposed amendment to §229.2(28), renumbered to §229.2(27)), "Practicum" would include a technical cross-reference edit to reflect the newly adopted Chapter 228 to change references from §228.35 to §228.2.

The proposed amendment to §229.2(30), (renumbered to §229.2(29)), "Site Supervisor" would align the wording to reflect the wording in the newly adopted Chapter 228.

§229.3. Required Submissions of Information, Surveys, and Other Data.

The proposed amendment to §229.3(a) would remove "new teachers" because there is no longer a separate requirement for "new teachers" and "first-year teachers" related to data collection. The proposed amendment to §229.3(e) and (f) would provide consistent language, removing the only use of "participant" in the chapter, and shift the language from "new" teacher to "first-year" teacher since the survey requirement is now applicable to first-year teachers. This streamlines the language used in the rule and aligns the language in this section with the teacher survey population.

Subchapter B. Accountability System for Educator Preparation Accreditation Statuses

Proposed new Subchapter B and title would further organize the rule text and enable greater flexibility in rulemaking for the SBEC in the future.

§229.4. Determination of Accreditation Status.

The proposed amendment to §229.4(a)(1)(B) would strike the exception for the Performance Assessment for School Leaders because it is now expired. The subsequent provisions would be relettered.

The proposed amendment to §229.4(a)(3) would replace the term "STAAR Annual Progress Measure" with "STAAR Annual Growth Points" to follow the language in use in 19 TAC Figure: §97.1001(b). The amendment would also provide the 2023-2024 academic year as a report only year, because the processes used by TEA to generate the underlying data has shifted, and a report-only year will allow the Board and stakeholders to review results from this new model prior to the data being used for accountability.

The proposed amendment to §229.4(a)(4) and §229.4(a)(4)(A) would remove the general reference to Chapter 228 and replace it with the specific reference in §229.4(a)(4)(A)(1) and §229.4(a)(4)(A)(2). This would provide a clear timeline for when the evaluation of observations will use the current standard and when the evaluation of the observations will use the updated standard in newly adopted 19 TAC Chapter 228, Subchapter F, with the new requirements first being used in the 2025-2026 academic year. This provides EPPs the opportunity to update their practices while ensuring that the evaluation for this indicator is based on the rules that were in place for the duration of the clinical experience.

The proposed amendment to §229.4(a)(5) would update the language from "new" teacher to "first-year" teacher since the teacher survey population has been updated to match that definition. This will provide clarity and streamline the language used in the rule.

Subchapter C. Accreditation Sanctions

Proposed new Subchapter C and title would further organize the rule text and enable greater flexibility in rulemaking for the SBEC in the future. Section 229.5, currently in effect, would be organized under new Subchapter C, but no rule changes are proposed.

Subchapter D. Continuing Approval Procedures

Proposed new Subchapter D and title would further organize the rule text and enable greater flexibility in rulemaking for the SBEC in the future.

§229.6. Continuing Approval.

The proposed amendment to §229.6(a) and (b) would include a technical cross-reference edit to reflect the newly adopted Chapter 228.

Subchapter E. Review Procedures

Proposed new Subchapter E and title would further organize the rule text and enable greater flexibility in rulemaking for the SBEC in the future. Sections 229.7 and 229.8, currently in effect, would be organized under new Subchapter E, but no rule changes are proposed.

Subchapter F. Required Fees

Proposed new Subchapter F and title would further organize the rule text and enable greater flexibility in rulemaking for the SBEC in the future.

§229.9. Fees for Educator Preparation Program Approval and Accountability.

The proposed amendment to §229.9(2) and (3) would include a technical cross-reference edit to reflect the newly adopted Chapter 228.

FISCAL IMPACT: Jessica McLoughlin, associate commissioner for educator preparation, certification, and enforcement, has determined that for the first five years the proposal is in effect, there is no additional fiscal impact on state and local governments and that there are no additional costs to entities required to comply with the proposal.

LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code (TGC), §2001.022.

SMALL BUSINESS, MICROBUSINESS, AND RURAL COMMUNITY IMPACT: The proposal has no direct adverse economic impact for small businesses, microbusinesses, or rural communities; therefore, no regulatory flexibility analysis, specified in TGC, §2006.002, is required.

COST INCREASE TO REGULATED PERSONS: The proposal does not impose a cost on regulated persons, another state agency, a special district, or a local government and, therefore, is not subject to TGC, §2001.0045.

TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under TGC, §2007.043.

GOVERNMENT GROWTH IMPACT: TEA staff prepared a Government Growth Impact Statement assessment for this proposed rulemaking. During the first five years the proposed rulemaking would be in effect, it would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not limit, expand, or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.

PUBLIC BENEFIT AND COST TO PERSONS: Ms. McLoughlin has determined that for the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be an accountability system that informs the public of the quality of educator preparation provided by each SBEC-approved EPP. There is no anticipated cost to persons who are required to comply with the proposal.

DATA AND REPORTING IMPACT: The proposal would have no additional data and reporting impact and would strike the data requirement in §229.3(f)(3) as it was never utilized to measure Indicator 3 in ASEP.

ENVIRONMENTAL IMPACT STATEMENT: The proposal does not require an environmental impact analysis because the proposal does not include major environmental rules under TGC, §2001.0225.

PRINCIPAL AND CLASSROOM TEACHER PAPERWORK REQUIREMENTS: TEA staff has determined that the proposal would not require a written report or other paperwork to be completed by a principal or classroom teacher.

PUBLIC COMMENTS: The public comment period on the proposal begins August 9, 2024, and ends September 9, 2024. A form for submitting public comments is available on the TEA website at https://tea.texas.gov/About_TEA/Laws_and_Rules/SBEC_Rules_(TAC)/Proposed_State_Board_for_Educator_Certification_Rules/. The SBEC will take registered oral and written comments on the proposal during the September 20, 2024 meeting's public comment period in accordance with the SBEC board operating policies and procedures.

SUBCHAPTER A. ACCOUNTABILITY SYSTEM FOR EDUCATOR PREPARATION PROGRAM PROCEDURES

19 TAC §§229.1 - 229.3

STATUTORY AUTHORITY. The amendments are proposed under Texas Education Code (TEC), §21.041(a), which allows the State Board for Educator Certification (SBEC) to adopt rules as necessary for its own procedures; TEC, §21.041(b)(1), which requires the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; TEC, §21.041(d), which states that the SBEC may adopt a fee for the approval and renewal of approval of an EPP, for the addition of a certificate or field of certification, and to provide for the administrative cost of appropriately ensuring the accountability of EPPs; TEC, §21.043(b) and (c), which require SBEC to provide EPPs with data, as determined in coordination with stakeholders, based on information reported through the Public Education Information Management System (PEIMS) that enables an EPP to assess the impact of the program and revise the program as needed to improve; TEC, §21.0441(c) and (d), which require the SBEC to adopt rules setting certain admission requirements for EPPs; TEC, §21.0443, which states that the SBEC shall propose rules to establish standards to govern the approval or renewal of approval of EPPs and certification fields authorized to be offered by an EPP. To be eligible for approval or renewal of approval, an EPP must adequately prepare candidates for educator certification and meet the standards and requirements of the SBEC. The SBEC shall require that each EPP be reviewed for renewal of approval at least every five years. The SBEC shall adopt an evaluation process to be used in reviewing an EPP for renewal of approval; TEC, §21.045, which states that the board shall propose rules establishing standards to govern the approval and continuing accountability of all EPPs; TEC, §21.0451, which states that the SBEC shall propose rules for the sanction of EPPs that do not meet accountability standards and shall annually review the accreditation status of each EPP. The costs of technical assistance required under TEC, §21.0451(a)(2)(A), or the costs associated with the appointment of a monitor under TEC, §21.0451(a)(2)(C), shall be paid by the sponsor of the EPP; and TEC, §21.0452, which states that to assist persons interested in obtaining teaching certification in selecting an EPP and assist school districts in making staffing decisions, the SBEC shall make certain specified information regarding EPPs in this state available to the public through the SBEC's Internet website.

CROSS REFERENCE TO STATUTE. The amendments implement Texas Education Code, §§21.041(a), (b)(1), and (d); 21.043(b) and (c); 21.0441(c) and (d); 21.0443; 21.045; 21.0451; and 21.0452.

§229.1.General Provisions and Purpose of Accountability System for Educator Preparation Programs.

(a) The State Board for Educator Certification (SBEC) is responsible for establishing standards to govern the continuing accountability of all educator preparation programs (EPPs). The rules adopted by the SBEC in this chapter govern the accreditation of each EPP that prepares individuals for educator certification. No candidate shall be recommended for any Texas educator certification class or category except by an EPP that has been approved by the SBEC pursuant to Chapter 228 of this title (relating to Requirements for Educator Preparation Programs) and is accredited as required by this chapter.

(b) The purpose of the accountability system for educator preparation is to assure that each EPP is held accountable for the readiness for certification of candidates completing the programs.

(c) The relevant criteria, formulas, calculations, and performance standards relevant to subsection (d) of this section and §229.4 of this title (relating to Determination of Accreditation Status) are prescribed in the Texas Accountability System for Educator Preparation (ASEP) Manual provided as a figure in this subsection.

Figure: 19 TAC §229.1(c) (.pdf)

[~~Figure: 19 TAC §229.1(c)~~]

(d) An accredited EPP that is not under an active SBEC order or otherwise sanctioned by the SBEC may receive commendations for success as [~~in the following four dimensions identified by the SBEC and~~] prescribed in the figure in subsection (c) of this section. Commendations will not be awarded for the 2023-2024 reporting year. [:]

~~[(1) Rigorous and Robust Preparation;]~~

~~[(2) Preparing the Educators Texas Needs;]~~

~~[(3) Preparing Educators for Long-Term Success; and]~~

~~[(4) Innovative Educator Preparation.]~~

§229.2.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Academic year--If not referring to the academic year of a particular public, private, or charter school or institution of higher education, September 1 through August 31.

(2) Accredited institution of higher education--An institution of higher education that, at the time it conferred the degree, was accredited or otherwise approved by an accrediting organization recognized by the Texas Higher Education Coordinating Board.

(3) ACT®--The college entrance examination from ACT®.

(4) Administrator--For purposes of the surveys and information required by this chapter, an educator whose certification would entitle him or her to be assigned as a principal or assistant principal in Texas, whether or not he or she is currently working in such an assignment.

(5) Beginning teacher--For purposes of the Texas Education Code, §21.045(a)(3), and its implementation in this chapter, a classroom teacher with fewer than three years of experience as a certified classroom teacher.

(6) Candidate--An individual who has been formally or contingently admitted into an educator preparation program (EPP) who has not yet completed or exited the EPP.[~~; also referred to as a participant.~~]

(7) Certification category--A certificate type within a certification class, as described in Chapter 233 of this title (relating to Categories of Classroom Teaching Certificates).

(8) Certification class--A certificate, as described in §230.33 of this title (relating to Classes of Certificates), that has defined characteristics; may contain one or more certification categories, as described in Chapter 233 of this title.

(9) Clinical teaching--An assignment, as described in §228.2 [~~§228.35~~] of this title (relating to Definitions [~~Preparation Program Coursework and/or Training~~]).

(10) Completer--A person who has met all the requirements of an approved educator preparation program. In applying this definition, the fact that a person has or has not been recommended for a standard certificate or passed a certification examination shall not be used as criteria for determining who is a completer.

(11) Consecutively measured years--Consecutive years for which a group's performance is measured, excluding years in which the small group exception applies, in accordance with §229.4(c) of this title (relating to Determination of Accreditation Status).

(12) Content Pedagogy Test--Examination listed in the column labeled "Required Content Pedagogy Test(s)" in Figure 19 TAC §230.21(e).

(13) Cooperating teacher--An individual, as described in §228.2 of this title (relating to Definitions), who [~~guides, assists, and~~] supports a candidate during a candidate's clinical teaching experience [~~assignment~~].

(14) Demographic group--Male and female, as to gender; and African American, Hispanic, White, and Other, as to race and ethnicity.

(15) Educator preparation program--An entity approved by the State Board for Educator Certification to recommend candidates in one or more educator certification classes or categories.

(16) Educator preparation program data--Data reported to meet requirements under the Texas Education Code, §21.045(b) and §21.0452.

(17) Examination--An examination or other test required by statute, or any other State Board for Educator Certification rule codified in the Texas Administrative Code, Title 19, Part 7, that governs an individual's admission to an educator preparation program, certification as an educator, continuation as an educator, or advancement as an educator.

(18) Field supervisor--An individual, as described in §228.2 of this title (relating to Definitions), who is hired by an educator preparation program to observe candidates, monitor their performance, and provide constructive feedback to improve their effectiveness as educators.

(19) First-year teacher--For purposes of the Texas Education Code, §21.045(a)(2), and its implementation in this chapter, an individual in his or her first year of employment as a classroom teacher.

(20) GPA--Grade point average.

(21) GRE®--Graduate Record Examinations®.

(22) Higher Education Act--Federal legislation consisting of the Higher Education Act of 1965 (20 United States Code, §1070 et seq.) and its subsequent amendments, which requires reports of educator preparation program performance data.

(23)Incoming class--Individuals contingently or formally admitted between September 1 and August 31 of each year by an educator preparation program.

(24) Internship--An assignment, as described in §228.2 [~~§228.35~~] of this title (relating to Definitions [~~Preparation Program Coursework and/or Training~~]).

(25) Mentor--An individual, as described in §228.2 of this title (relating to Definitions), who [~~guides, assists, and~~] supports a candidate during a candidate's internship experience [~~assignment~~].

[(26) New teacher--For purposes of the Texas Education Code, §21.045(a)(5), and its implementation in this chapter, an individual in his or her first year of employment as a classroom teacher under a standard certificate.]

(26) [~~(27)~~] Pedagogy Test--Examination listed in the column labeled "Pedagogical Requirement(s)" in Figure: 19 TAC §230.21(e).

(27) [~~(28)~~] Practicum--An assignment, as described in §228.2 [~~§228.35~~] of this title (relating to Definitions [~~Preparation Program Coursework and/or Training~~]).

(28) [~~(29)~~] SAT®--The college entrance examination from the College Board.

(29) [~~(30)~~] Site supervisor--An individual, as described in §228.2 of this title (relating to Definitions), who [~~guides, assists, and~~] supports a candidate during a candidate's practicum experience [~~assignment~~].

(30) [~~(31)~~] Texas Education Agency staff--Staff of the Texas Education Agency assigned by the commissioner of education to perform the State Board for Educator Certification's administrative functions and services.

§229.3.Required Submissions of Information, Surveys, and Other Data.

(a) Educator preparation programs (EPPs), EPP candidates, first-year teachers, [~~new teachers,~~] beginning teachers, field supervisors, administrators, mentors, site supervisors, and cooperating teachers shall provide to the Texas Education Agency (TEA) staff all data and information required by this chapter, as set forth in subsections (e) and (f) of this section.

(b) Any individual holding a Texas-issued educator certificate who fails to provide information required by this chapter and the Texas Education Code (TEC), §21.045 and §21.0452, as set forth in subsection (e) of this section, may be subject to sanction of his or her certificate, including the placement of restrictions, inscribed or non-inscribed reprimand, suspension, or revocation.

(c) Any Texas public school that fails to provide information required by this chapter and the TEC, §21.045 and §21.0452, as set forth in subsection (e) of this section, may be referred to the commissioner of education with a recommendation that sanctions upon its accreditation status be imposed for failure to comply with this section and the TEC, §21.0452.

(d) Any open-enrollment charter school that fails to provide information required by this chapter and the TEC, §21.045 and §21.0452, as set forth in subsection (e) of this section, may be referred to the commissioner of education with a recommendation that sanctions be imposed for failure to comply with this section and the TEC, §21.0452.

(e) All required EPP data for an academic year shall be submitted to the TEA staff annually by September 15 following the end of that academic year. All surveys and information required to be submitted pursuant to this chapter by principals shall be submitted by June 15 of any academic year in which an administrator has had experience with a first-year teacher who was a candidate or completer at [~~participant in~~] an EPP. All surveys and information required to be submitted pursuant to this chapter by first-year [~~new~~] teachers shall be submitted by June 15 of the first full academic year after the teacher completed the requirements of an EPP. All surveys and information required to be submitted pursuant to this chapter by EPP candidates shall be submitted by August 31 of the academic year in which the candidate completed the requirements of an EPP.

(f) The following apply to data submissions required by this chapter.

(1) EPPs shall provide data for all candidates as specified in the figure provided in this paragraph.

Figure: 19 TAC §229.3(f)(1) (No change.)

(2) Candidates in an EPP shall complete a survey, in a form approved by the State Board for Educator Certification (SBEC), evaluating the preparation he or she received in the EPP. Completion and submission to the TEA of the survey is a requirement for completion of an EPP.

(3) Administrators in Texas public schools and open-enrollment charter schools shall complete surveys, in a form to be approved by the SBEC, evaluating the effectiveness of preparation for classroom success based on experience with first-year teachers who were candidates or completers [~~participants~~] in an EPP.

(4) First-year [~~New~~] teachers in a Texas public school, including an open-enrollment charter school, shall complete surveys, in a form to be approved by the SBEC, evaluating the effectiveness of preparation for classroom success.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403459

Cristina De La Fuente-Valadez

Director, Rulemaking

State Board for Educator Certification

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 475-1497

SUBCHAPTER B. ACCOUNTABILITY SYSTEM FOR EDUCATOR PREPARATION ACCREDITATION STATUSES

19 TAC §229.4

STATUTORY AUTHORITY. The amendment is proposed under Texas Education Code (TEC), §21.041(a), which allows the State Board for Educator Certification (SBEC) to adopt rules as necessary for its own procedures; TEC, §21.041(b)(1), which requires the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with the TEC, Chapter 21, Subchapter B; TEC, §21.041(d), which states that the SBEC may adopt a fee for the approval and renewal of approval of an EPP, for the addition of a certificate or field of certification, and to provide for the administrative cost of appropriately ensuring the accountability of EPPs; TEC, §21.043(b) and (c), which require SBEC to provide EPPs with data, as determined in coordination with stakeholders, based on information reported through the Public Education Information Management System (PEIMS) that enables an EPP to assess the impact of the program and revise the program as needed to improve; TEC, §21.0441(c) and (d), which require the SBEC to adopt rules setting certain admission requirements for EPPs; TEC, §21.0443, which states that the SBEC shall propose rules to establish standards to govern the approval or renewal of approval of EPPs and certification fields authorized to be offered by an EPP. To be eligible for approval or renewal of approval, an EPP must adequately prepare candidates for educator certification and meet the standards and requirements of the SBEC. The SBEC shall require that each EPP be reviewed for renewal of approval at least every five years. The SBEC shall adopt an evaluation process to be used in reviewing an EPP for renewal of approval; TEC, §21.045, which states that the board shall propose rules establishing standards to govern the approval and continuing accountability of all EPPs; TEC, §21.0451, which states that the SBEC shall propose rules for the sanction of EPPs that do not meet accountability standards and shall annually review the accreditation status of each EPP. The costs of technical assistance required under TEC, §21.0451(a)(2)(A), or the costs associated with the appointment of a monitor under TEC, §21.0451(a)(2)(C), shall be paid by the sponsor of the EPP; and TEC, §21.0452, which states that to assist persons interested in obtaining teaching certification in selecting an EPP and assist school districts in making staffing decisions, the SBEC shall make certain specified information regarding EPPs in this state available to the public through the SBEC's Internet website.

CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §§21.041(a), (b)(1), and (d); 21.043(b) and (c); 21.0441(c) and (d); 21.0443; 21.045; 21.0451; and 21.0452.

§229.4.Determination of Accreditation Status.

(a) Accountability performance indicators. The State Board for Educator Certification (SBEC) shall determine the accreditation status of an educator preparation program (EPP) at least annually, based on the following accountability performance indicators, disaggregated by demographic group and other requirements of this chapter and determined with the formulas and calculations included in the figure provided in §229.1(c) of this title (relating to General Provisions and Purpose of Accountability System for Educator Preparation Programs). Data will be used only if the following indicators were included in the accountability system for that academic year. Except for the 2019-2020 and 2020-2021 academic years, when the data described in paragraphs (1)-(5) of this subsection will be reported to EPPs and will not be used to determine accreditation statuses, EPP accreditation statuses shall be based on:

(1) the EPP candidates' performance on pedagogy tests and content pedagogy tests. The EPP candidates' performance on pedagogy tests and content pedagogy tests shall provide separate accountability performance indicators for EPPs;

(A) For both pedagogy tests and content pedagogy tests, the performance standard shall be the percent of individuals admitted after December 26, 2016, who passed an examination within the first two attempts, including those examinations attempted after the individual has completed the EPP or when the EPP has not recommended the individual for a standard certificate. The pass rate is based solely on the examinations approved by the EPP. Examinations taken before admission to the EPP or specific examinations taken for pilot purposes are not included in the pass rate.

~~[(B) For the 2021-2022 and 2022-2023 academic years, the Performance Assessment for School Leaders (PASL) shall be treated as a content pedagogy test.]~~

(B) [~~(C)~~] For pedagogy tests, the performance standard shall be a pass rate of 85%.

(2) the results of appraisals of first-year teachers by administrators, based on a survey in a form to be approved by the SBEC. The performance standard shall be 70% of first-year teachers from the EPP who are appraised as "sufficiently prepared" or "well prepared";

(3) the growth of students taught by beginning teachers as indicated by the STAAR Annual Growth Points [~~Progress Measure~~], determined at the student level as described in Figure: 19 TAC §97.1001(b) of Part II of this title (relating to Accountability Rating System), and aggregated at the teacher level as described in Figure: 19 TAC §229.1(c) of this title. The performance standard shall be 70% of beginning teachers from the EPP reaching the individual performance threshold. For the 2023-2024 academic year, [~~The first two academic years for which the Texas Education Agency (TEA) has data necessary to calculate~~] this performance standard [~~following the 2019-2020 academic year~~] will be a reporting year [~~years~~] only and will not be used to determine accreditation status;

(4) the results of data collections establishing EPP compliance with SBEC requirements [~~specified in §228.35(g) of this title (relating to Preparation Program Coursework and/or Training),~~ ] regarding the frequency, duration, and quality of field supervision to candidates completing clinical teaching or an internship. The frequency and duration of field supervision shall provide one accountability performance indicator, and the quality of field supervision shall provide a separate accountability performance indicator;

(A) The performance standard as to the frequency, duration, and required documentation of field supervision shall be that the EPP meets the requirements [~~of documentation of §228.35(g) of this title~~] for 95% of the EPP's candidates. EPPs that [~~who~~] do not meet the standard of 95% for the aggregated group or for any disaggregated demographic group but have only one candidate not meet the requirement in the aggregated or any disaggregated group has met the standard for that group.

(i) For the 2023-2024 and 2024-2025 academic years, individuals will be evaluated against the frequency and duration requirements in Chapter 228, Subchapter F, of this title (relating to Support for Candidates During Required Clinical Experiences) that were effective August 31, 2024.

(ii) Beginning in the 2025-2026 academic year, individuals will be evaluated against the frequency and duration requirements in Chapter 228, Subchapter F, of this title that were effective beginning September 1, 2024.

(B) The performance standard for quality shall be 90% of candidates rating the field supervision as "frequently" or "always or almost always" providing the components of structural guidance and ongoing support; and

(5) the results from a teacher satisfaction survey, in a form approved by the SBEC, of first-year [~~new~~] teachers administered at the end of the first year of teaching as a teacher of record [~~under a standard certificate~~]. The performance standard shall be 70% of teachers responding that they were "sufficiently prepared" or "well prepared" by their EPP.

(b) Accreditation status assignment. All approved EPPs may be assigned an accreditation status based on their performance in the Accountability System for Educator Preparation Programs (ASEP) Index system, as described in Figure: 19 TAC §229.1(c) of this title.

(1) Accredited status. An EPP shall be assigned an Accredited status if the EPP has met the standard of 85% of the possible points in the ASEP Index system as described in Figure: 19 TAC §229.1(c) of this title and has been approved by the SBEC to prepare, train, and recommend candidates for certification.

(2) Accredited-Not Rated status. An EPP shall be assigned Accredited-Not Rated status upon initial approval to offer educator preparation, until the EPP can be assigned a status based on the ASEP Index system as described in Figure: 19 TAC §229.1(c) of this title. An EPP is fully accredited and may recommend candidates for certification while it is in Accredited-Not Rated status.

(3) Accredited-Warned status.

(A) An EPP shall be assigned Accredited-Warned status if the EPP accumulates 80% or greater but less than 85% of the possible points in the ASEP Index system as described in Figure: 19 TAC §229.1(c) of this title.

(B) An EPP may be assigned Accredited-Warned status if the SBEC determines that the EPP has violated SBEC rules, orders, and/or Texas Education Code (TEC), Chapter 21.

(4) Accredited-Probation status.

(A) An EPP shall be assigned Accredited-Probation status if the EPP accumulates less than 80% of the possible points in the ASEP Index system as described in Figure: 19 TAC §229.1(c) of this title.

(B) An EPP may be assigned Accredited-Probation status if the SBEC determines that the EPP has violated SBEC rules, orders, and/or TEC, Chapter 21.

(5) Not Accredited-Revoked status.

(A) An EPP shall be assigned Not Accredited-Revoked status and its approval to recommend candidates for educator certification revoked if it is assigned Accredited-Probation status for three consecutively measured years.

(B) An EPP may be assigned Not Accredited-Revoked status if the EPP has been on Accredited-Probation status for one year, and the SBEC determines that revoking the EPP's approval is reasonably necessary to achieve the purposes of the TEC, §21.045 and §21.0451.

(C) An EPP may be assigned Not Accredited-Revoked status if the EPP fails to pay the required ASEP technology fee by the deadline set by TEA as prescribed in §229.9(7) of this title (relating to Fees for Educator Preparation Program Approval and Accountability).

(D) An EPP may be assigned Not Accredited-Revoked status if the SBEC determines that the EPP has violated SBEC rules, orders, and/or TEC, Chapter 21.

(E) An assignment of Not Accredited-Revoked status and revocation of EPP approval to recommend candidates for educator certification is subject to the requirements of notice, record review, and appeal as described in this chapter.

(F) A revocation of an EPP approval shall be effective for a period of two years, after which a program may reapply for approval as a new EPP pursuant to Chapter 228 of this title (relating to Requirements for Educator Preparation Programs).

(G) Upon revocation of EPP approval, the EPP may not admit new candidates for educator certification but may complete the training of candidates already admitted by the EPP and recommend them for certification. If necessary, TEA staff and other EPPs shall cooperate to assist the previously admitted candidates of the revoked EPP to complete their training.

(1) For purposes of accreditation status determination, the performance of an EPP candidate group, aggregated or disaggregated by demographic group, shall be measured against performance standards described in this chapter in any one year in which the number of individuals in the group exceeds 10. The small group exception does not apply to compliance with the frequency and duration of field supervisor observations.

(2) For an EPP candidate group, aggregated or disaggregated by demographic group, where the group contains 10 or fewer individuals, the group's performance shall not be counted for purposes of accreditation status determination for that academic year based on only that year's group performance.

(3) If the current year's EPP candidate group, aggregated or disaggregated by demographic group, contained between one and 10 individuals, that group performance shall be combined with the group performance from the next most recent prior year subsequent to the 2020-2021 academic year for which there was at least one individual, and if the two-year cumulated group contains more than 10 individuals, then the two-year cumulated group performance must be measured against the standards in the current year. The two-year cumulated group shall not include group performance from years prior to the 2021-2022 academic year.

(4) If the two-year cumulated EPP candidate group described in subsection (c)(3) of this section, aggregated or disaggregated by demographic group, contains between one and 10 individuals, then the two-year cumulated group performance shall be combined with the next most recent group performance subsequent to the 2020-2021 academic year for which there was at least one individual. The three-year cumulated group performance must be measured against the standards in the current year, regardless of how small the cumulated number of group members may be. When evaluating a three-year cumulated group of fewer than 10 individuals, the candidate group will be measured against the performance standard of the current year, or a performance standard of up to one candidate failing to meet the requirement, whichever is more favorable. The three-year cumulated group performance shall not include group performance from years prior to the 2021-2022 academic year.

(5) In any reporting year in which the EPP candidate group, aggregated or disaggregated by demographic group, does not meet the necessary number of individuals needed to measure against performance standards for that year, for all indicators, the accreditation status will continue from the prior year. Any sanction assigned as a result of an accredited-warned or accredited-probation status in a prior year will continue if that candidate group has not met performance standards since being assigned accredited-warned or accredited-probation status. If an EPP has a status of Accredited-Probation carried over as a result of this subsection, the year in which the EPP has the carried over status will not count as a consecutively measured year for the purpose of subsection (b)(5)(A) of this section. The SBEC may modify the sanction as the SBEC deems necessary based on subsequent performance, even though that performance is not measured against performance standards for a rating.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403460

Cristina De La Fuente-Valadez

Director, Rulemaking

State Board for Educator Certification

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 475-1497

SUBCHAPTER D. CONTINUING APPROVAL PROCEDURES

19 TAC §229.6

CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §§21.041(a), (b)(1), and (d); 21.043(b) and (c); 21.0441(c) and (d); 21.0443; 21.045; 21.0451; and 21.0452.

§229.6.Continuing Approval.

(a) The continuing approval of an educator preparation program (EPP) to recommend candidates for educator certification, which shall be reviewed pursuant to §228.13 [~~§228.10(b)~~ ] of this title (relating to Continuing Educator Preparation Program Approval [~~Approval Process~~]), will be based upon the EPP's accreditation status and compliance with the State Board for Educator Certification (SBEC) rules regarding program-approval components specified in §228.11 [~~§228.10(a)~~] of this title (relating to New Entity Approval [~~Approval Process~~]).

(b) After a continuing approval review pursuant to §228.13 [~~§228.10(b)~~] of this title, if the Texas Education Agency (TEA) staff finds that an EPP is in compliance with SBEC rules and/or Texas Education Code (TEC), Chapter 21, the TEA staff shall issue a proposed recommendation for SBEC to approve the renewal of an EPP. After a continuing approval review pursuant to §228.13 [~~§228.10(b)~~] of this title or a complaint investigation pursuant to Chapter 228, Subchapter G, of this title (relating to Complaints and Investigations) [~~§228.70 of this title (relating to Complaints and Investigations Procedures)~~], if the TEA staff finds that an EPP has failed to comply with SBEC rules and/or the TEC, Chapter 21, and the EPP does not obtain compliance within four months, the TEA staff shall recommend that the SBEC sanction the EPP. The TEA staff may recommend that the SBEC action include, but is not limited to, public reprimand, revocation of program approval, or the imposition of conditions upon continuing program approval.

(c) TEA staff shall provide notice of the proposed recommendation for SBEC action relating to the EPP's continuing approval to recommend candidates for educator certification in the manner provided by §229.7 of this title (relating to Informal Review of Texas Education Agency Recommendations), and an EPP shall be entitled to an informal review of the proposed recommendation, under the conditions and procedures set out in §229.7 of this title, prior to the submission of the recommendation for action to either the SBEC or the State Office of Administrative Hearings (SOAH). If the EPP fails to request an informal review in a timely manner, the proposed recommendation will become a final recommendation.

(d) Following the informal review, a final recommendation will be issued by the TEA staff. The final recommendation may include changes or additions to the proposed recommendation and such modifications are not subject to another informal review procedure.

(e) If the final recommendation proposes revocation of approval of an EPP to recommend candidates for educator certification, within 14 calendar days of receipt of the final recommendation, the EPP may agree in writing to accept the final revocation without further proceedings or may request that TEA staff schedule the matter for a hearing before an administrative law judge at the SOAH, as provided by §229.8 of this title (relating to Contested Cases for Accreditation Revocation).

(f) If the final recommendation does not propose revocation of approval of an EPP to recommend candidates for educator certification, the final recommendation will be submitted to SBEC for consideration and entry of a final order.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403462

Cristina De La Fuente-Valadez

Director, Rulemaking

State Board for Educator Certification

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 475-1497

SUBCHAPTER F. REQUIRED FEES

19 TAC §229.9

CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §§21.041(a), (b)(1), and (d); 21.043(b) and (c); 21.0441(c) and (d); 21.0443; 21.045; 21.0451; and 21.0452.

§229.9.Fees for Educator Preparation Program Approval and Accountability.

An educator preparation program requesting approval and continuation of accreditation status shall pay the applicable fee from the following list.

(1) New educator preparation program application and approval (nonrefundable)--$9,000.

(2) Five-year continuing approval review visit pursuant to §228.13 [~~§228.10(b)~~] of this title (relating to Continuing Educator Preparation Program Approval [~~Approval Process~~])--$4,500.

(3) Discretionary continuing approval review visit pursuant to §228.13 [~~§228.10(b)~~] of this title--$4,500.

(4) Addition of new certification category or addition of clinical teaching--$500.

(5) Addition of each new class of certificate--$1,000.

(6) Applications for out-of-state and out-of-country school sites for field-based experiences, clinical teaching, and practicums--$500.

(7) Accountability System for Educator Preparation Programs technology fee--$35 per admitted candidate.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403463

Cristina De La Fuente-Valadez

Director, Rulemaking

State Board for Educator Certification

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 475-1497

CHAPTER 230. PROFESSIONAL EDUCATOR PREPARATION AND CERTIFICATION

SUBCHAPTER B. GENERAL CERTIFICATION REQUIREMENTS

19 TAC §230.11

The State Board for Educator Certification (SBEC) proposes an amendment to 19 Texas Administrative Code (TAC) §230.11, concerning professional educator preparation and certification. The proposed amendment would expand the options for demonstrating English language proficiency (ELP).

BACKGROUND INFORMATION AND JUSTIFICATION: At the February 2024 SBEC meeting, Texas Education Agency (TEA) staff provided the Board with an overview of the history of the ELP requirement and confirmed that regardless of the pathway to certification in Texas, demonstration of ELP is required for all candidates. TEA staff also posed key questions for the Board's consideration regarding current requirements in rule and possible updates for the demonstration of ELP. TEA staff anchored the conversation with the Board around required performance on the Test of English as a Foreign Language internet-Based Test (TOEFL-iBT), the list of countries approved by the SBEC to satisfy demonstration of ELP, the addition of U.S. territories to exempt individuals from the ELP requirement, and the potential use of standard certification obtained in another state by individuals licensed to teach in other countries.

At the April 2024 SBEC meeting, TEA staff provided a follow-up discussion item, including recommendations for amendments to 19 TAC Chapter 230 to be presented for consideration and action by the Board at the July SBEC meeting. The Board provided final direction on how to move forward with the proposal.

The following is a description of the proposed amendment.

Proposed Amendment to Required Performance on the TOEFL-iBT

The proposed amendment to §230.11(b)(5)(B) would update TOEFL-iBT score requirements from a specific score for each of the four sections (24 for Speaking, 22 for Listening, 22 for Reading, and 21 for Writing) to any score that falls within the range identified for performance at the High-Intermediate Level for all four sections of the test.

Proposed Amendment Related to U.S. Territories and the ELP Requirement

Proposed new §230.11(b)(5)(A) would add the phrase, "or one of its territories," to allow degrees obtained in the U.S. territories to also count toward meeting the ELP requirement.

Proposed Amendment to Add Countries to the List Approved by the SBEC for Exemption from the ELP Requirement

The proposed amendment to Figure: 19 TAC §230.11(b)(5)(C) would add Cameroon, Kenya, Philippines, South Africa, Uganda, Zambia, and Zimbabwe to the list of countries approved for exemption from the ELP requirement and would strike American Samoa to align with proposed changes that would incorporate all U.S. territories in meeting the requirement.

Proposed Amendment to Include an Additional Option to Meet the ELP Requirement

Proposed new §230.11(b)(5)(D) would allow an individual applying for the out-of-country credentials review who also holds a standard certificate issued in another state where exams were taken and passed to be eligible for consideration of exemption from ELP requirements.

LOCAL EMPLOYMENT IMPACT: The proposal has no effect on local economy; therefore, no local employment impact statement is required under Texas Government Code (TGC), §2001.022.

TAKINGS IMPACT ASSESSMENT: The proposal does not impose a burden on private real property and, therefore, does not constitute a taking under TGC, §2007.043.

The proposed rulemaking would not create or eliminate a government program; would not require the creation of new employee positions or elimination of existing employee positions; would not require an increase or decrease in future legislative appropriations to the agency; would not require an increase or decrease in fees paid to the agency; would not create a new regulation; would not limit or repeal an existing regulation; would not increase or decrease the number of individuals subject to its applicability; and would not positively or adversely affect the state's economy.

PUBLIC BENEFIT AND COST TO PERSONS: Ms. McLoughlin has determined that for the first five years the proposal is in effect, the public benefit anticipated as a result of enforcing the proposal would be increased flexibility in demonstrating ELP. The proposal would reduce the number of TOEFL-iBT test attempts for some candidates. The addition of countries approved by the SBEC to satisfy the ELP requirement would save TOEFL-iBT testing fees for some candidates. Also, the future ability to utilize a standard certificate issued by another state department of education would also be a TOEFL-iBT test fee savings for some candidates. TEA staff has determined there is an anticipated savings to persons required to comply with the proposal. The proposal would allow an individual to score within a range of scores on the TOEFL-iBT, as opposed to a required specific scaled score. This would have a potential savings of approximately $200 per exam for an estimated 114 individuals per fiscal year (FY) who may have needed to retake the test to meet the minimum scaled score requirement. This would result in a savings of $22,800 for each year of FYs 2025-2028 for the individuals who were able to demonstrate ELP outside of TOEFL-iBT testing.

DATA AND REPORTING IMPACT: The proposal would have no new data and reporting impact.

ENVIRONMENTAL IMPACT STATEMENT: The proposal does not require an environmental impact analysis because the proposal does not include major environmental rules under TGC, §2001.0225.

STATUTORY AUTHORITY. The amendment is proposed under Texas Education Code (TEC), §21.003(a), which states that a person may not be employed as a teacher, teacher intern or teacher trainee, librarian, educational aide, administrator, educational diagnostician, or school counselor by a school district unless the person holds an appropriate certificate or permit issued as provided by TEC, Chapter 21, Subchapter B; TEC, §21.031, which authorizes the State Board for Educator Certification (SBEC) to regulate and oversee all aspects of the certification, continuing education, and standards of conduct of public school educators; TEC, §21.041(b)(1), (2), and (4), which require the SBEC to propose rules that provide for the regulation of educators and the general administration of the TEC, Chapter 21, Subchapter B, in a manner consistent with TEC, Chapter 21, Subchapter B, specify the classes of educator certificates to be issued, including emergency certificates, and specify the requirements for the issuance and renewal of an educator certificate; and TEC, §21.041(b)(5), which requires the SBEC to propose rules that provide for the issuance of an educator certificate to a person who holds a similar certificate issued by another state or foreign country, subject to TEC, §21.052.

CROSS REFERENCE TO STATUTE. The amendment implements Texas Education Code, §§21.003(a), 21.031, and 21.041(b)(1), (2), (4), and (5).

§230.11.General Requirements.

(a) The only credits and degrees acceptable for certification of educators are those earned from and conferred by accredited institutions of higher education. All credit hour requirements for certification are semester credit hours or their equivalent.

(b) An applicant for a Texas educator certificate must:

(1) be at least 18 years of age;

(2) submit to the criminal history review required by the Texas Education Code (TEC) §22.0831, not be disqualified by the TEC, §21.058, §21.060, or other Texas statute, and not be subject to administrative denial pursuant to §249.12 of this title (relating to Administrative Denial; Appeal) or a pending proceeding under Chapter 249 of this title (relating to Disciplinary Proceedings, Sanctions, and Contested Cases);

(3) not be disqualified by federal law;

(4) be willing to support and defend the constitutions of the United States and Texas;

(5) be able to communicate, listen, read, write, and comprehend the English language sufficiently to use it easily and readily in daily communication and teaching. English language proficiency shall be evidenced by one of the following:

(A) completion of an undergraduate or graduate degree at an accredited institution of higher education in the United States or one of its territories; or

(B) verification of a minimum scaled score that falls within the High-Intermediate level in each section on the Test of English as a Foreign Language internet-Based Test (TOEFL-iBT) [~~minimum scaled scores on the Test of English as a Foreign Language internet-Based Test (TOEFL iBT) of 24 for speaking, 22 for listening, 22 for reading, and 21 for writing~~]; or

(C) an undergraduate or graduate degree that was earned at an institution of higher education in a country outside of the United States listed in the figure provided in this subparagraph; or [.]

Figure: 19 TAC §230.11(b)(5)(C) (.pdf)

[~~Figure: 19 TAC §230.11(b)(5)(C)~~]

(D) a standard certificate issued by the department of education in another state where examinations for the certificate were taken and passed;

(6) successfully complete appropriate examinations prescribed in §230.21 of this title (relating to Educator Assessment) for the educator certificate sought; and

(7) satisfy one or more of the following requirements:

(A) complete the requirements for certification specified in this chapter, Chapter 233 of this title (relating to Categories of Classroom Teaching Certificates), Chapter 239 of this title (relating to Student Services Certificates), Chapter 241 of this title (relating to Certification as Principal), or Chapter 242 of this title (relating to Superintendent Certificate), and be recommended for certification by an approved educator preparation program (EPP);

(B) qualify under Subchapter H of this chapter (relating to Texas Educator Certificates Based on Certification and College Credentials from Other States or Territories of the United States);

(D) qualify for a career and technical education certificate based on skill and experience specified in §233.14 of this title (relating to Career and Technical Education (Certificates requiring experience and preparation in a skill area)); or

(E) qualify under Chapter 245 of this title (relating to Certification of Educators from Other Countries).

(c) An educator who has received a State Board for Educator Certification (SBEC)-issued standard certificate shall not be required to demonstrate English language proficiency as prescribed in subsection (b)(5)(B) and (C) of this section for purposes of admission into an EPP to obtain additional SBEC-issued certifications.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2024.

TRD-202403464

Cristina De La Fuente-Valadez

Director, Rulemaking

State Board for Educator Certification

Earliest possible date of adoption: September 8, 2024

For further information, please call: (512) 475-1497