college programs rated on graduates’ debt versus earnings

The text as introduced · 885 words

89R1615 KJE-F

By: Tepper
H.B. No. 281

A BILL TO BE ENTITLED

AN ACT

relating to the review, funding, and continuation of degree and

certificate programs at public institutions of higher education

based on certain performance standards.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 61.0512(d), (e), and (f), Education

Code, are amended to read as follows:

(d) The board shall [ may ] review the number of degrees or

certificates awarded through a degree or certificate program every

five [ four ] years or more frequently, at the board's discretion.

(e) Subject to Section 61.05123(d), the [ The ] board shall

review each degree or certificate program offered by an institution

of higher education at least every five [ 10 ] years after a new

program is established using the criteria prescribed by Subsection

(c).

(f) Except as provided by Section 61.05123(f), the [ The ]

board may not order the consolidation or elimination of any degree

or certificate program offered by an institution of higher

education but may, based on the board's review under Subsections

(d) and (e), recommend such action to an institution's governing

board. If an institution's governing board does not accept

recommendations to consolidate or eliminate a degree or certificate

program, the university system or, where a system does not exist,

the institution, must identify the programs recommended for

consolidation or elimination on the next legislative

appropriations request submitted by the system or institution.

SECTION 2. Subchapter C, Chapter 61, Education Code, is

amended by adding Section 61.05123 to read as follows:

Sec. 61.05123. PROGRAM PERFORMANCE STANDARDS. (a) In

reviewing a degree or certificate program under Section 61.0512(e),

the board shall first determine using the most recent data

available from the Texas Workforce Commission, institutions of

higher education, the federal government, and any other reliable

source the median student loan debt as a percentage of median annual

earnings for program graduates the following number of years after

graduation:

(1) for an undergraduate program, two years;

(2) for a master's program or equivalent, three years;

and

(3) for a doctoral program or equivalent, five years.

(b) In determining the median student loan debt as a

percentage of median annual earnings for program graduates under

Subsection (a), the board may not consider, to the extent

practicable, program graduates who enrolled in a more advanced

degree or certificate program not later than two years after

graduation.

(c) The board shall assign a performance rating of:

(1) "reward" to a program with a debt as a percentage

of earnings value of 75 percent or less;

(2) "monitor" to a program with a debt as a percentage

of earnings value of more than 75 percent but not more than 100

percent;

(3) "sanction" to a program with a debt as a percentage

of earnings value of more than 100 percent but not more than 125

percent; and

(4) "sunset" to a program with a debt as a percentage

of earnings value of more than 125 percent.

(d) A degree or certificate program that receives a "reward"

performance rating is exempt from the portion of the review under

Section 61.0512(e) using the criteria prescribed by Section

61.0512(c).

(e) An institution of higher education may not use for a

degree or certificate program that receives a "sanction" or

"sunset" performance rating money appropriated for formula funding

increases, institutional enhancements, or exceptional items for

the first state fiscal biennium that begins after the program

receives the performance rating.

(f) Except as provided by Subsection (g), an institution of

higher education that receives notice from the board that a degree

or certificate program offered by the institution has received a

"sunset" performance rating:

(1) may not enroll new students in the program after

receipt of notice;

(2) shall:

(A) permit each student enrolled in the program

immediately before receipt of notice to complete the program; and

(B) inform each student enrolled in the program

regarding the rating and the ramifications of that rating; and

(3) after each student enrolled in the program

immediately before receipt of the notice graduates or leaves the

program, shall consolidate or eliminate the program, as required by

the board in the notice.

(g) If the prohibitions and requirements for a degree or

certificate program under Subsection (f) would result in a course

necessary to fulfill an institution of higher education's core

curriculum under Section 61.822 no longer being offered at the

institution, Subsection (f) and Section 61.054 do not apply to the

program to the extent necessary for the institution to offer that

course. If this subsection applies to more than one program at the

institution with respect to the same course, the board shall select

one of those programs to be exempt under this subsection.

(h) The board shall adopt rules necessary to implement this

section.

SECTION 3. Section 61.054, Education Code, is amended to

read as follows:

Sec. 61.054. EXPENDITURES FOR PROGRAMS DISAPPROVED BY

BOARD. No funds appropriated to any institution of higher

education may be expended for any program that [ which ] has been

disapproved by the board under this subchapter or, subject to

Section 61.05123(g), received a "sunset" performance rating under

Section 61.05123 , unless the program is subsequently specifically

approved by the legislature.

SECTION 4. This Act takes effect September 1, 2025.