PART 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

CHAPTER 7. DEGREE GRANTING COLLEGES AND UNIVERSITIES OTHER THAN TEXAS PUBLIC INSTITUTIONS

SUBCHAPTER A. GENERAL PROVISIONS

19 TAC §§7.5, 7.8, 7.9

The Texas Higher Education Coordinating Board proposes amendments to §§7.5, 7.8, and 7.9, relating to Degree Granting Colleges and Universities Other Than Texas Public Institutions. New Chapter 7 rules were passed by the Board at the April 24, 2008 meeting. The rules were passed with several non-substantive changes, based on written comments received during the 30 day comment period. Included in the written comments were several suggestions staff considered to be substantive. Thus, Chapter 7 rule changes are being proposed again in order to incorporate those substantive changes. The new language in Chapter 7 concerns governance, distinction of roles, institutional evaluation, alternative certificates of authority, associate of occupational science degrees, and data reporting. Staff conferred with individuals who could be affected by the changes prior to submitting the changes as proposed rules. Specifically, these changes will clarify and expand the governance, distinction of roles and institutional evaluation language in §7.5 (relating to Standards for Operations of Institutions), raise the amount of the surety bond required under §7.8 (relating to Alternative Certificate of Authority), add information regarding the associate of occupational science degree to §7.9 (relating to Certificate of Authority for Career Schools and Colleges).

Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Stafford has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the sections will be a more effective and more appropriate Board response to the requirements and needs of institutions wishing to operate in Texas. There is no effect on small or micro businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Joseph Stafford, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or Joe.Stafford@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendments are proposed under the Texas Education Code, Chapter 61, Subchapter G, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.

The amendments affect implementation of Texas Education Code, Subchapter G, §§61.301 - 61.319.

§7.5.Standards for Operation of Institutions.

All institutions that operate within the State of Texas are expected to meet the following standards. Standard (2) relating to Qualifications of Institutional Officers and Standard (3) relating to Policy Making do not apply to branch campuses operating under §7.10 of this chapter (relating to Operation of Branch Campuses, Extension Centers or Other Off-Campus Units, Occasional Courses and Changes in Level). These standards will be enforced through the certificate of authority process or the alternative certificate of authority process. Standards addressing the same principles will be enforced by recognized accrediting agencies. Particular attention will be paid to the institution's commitment to education, responsiveness to recommendations and suggestions for improvement, and, in the case of a renewal of a certificate of authority, record of improvement and progress. These standards represent generally accepted administrative and academic practices and principles of accredited postsecondary institutions in Texas. Such practices and principles are generally set forth by institutional and specialized accrediting bodies and the academic and professional organizations which have established standards for their members' programs.

(1) - (2) (No change.)

(3) Governance. The institution shall have a system of governance that facilitates the accomplishment of the institution's mission and purposes, supports institutional effectiveness and integrity, and protects the interests of its constituents, including students, faculty and staff. If the institution has a governing board consisting of at least three (3) members, and that board focuses on the accomplishment of the institution's mission and purposes, supports institutional effectiveness and integrity, and protects the interests of its constituents, this standard will be considered as met. In the absence of such a governing board, the burden to establish appropriate safeguards within its system of governance and to demonstrate their effectiveness falls upon the institution.

[(3) Policy Making. Governing Board. The institution shall have a governing body consisting of at least three (3) people, focused on promoting the mission of the institution, and shall exercise its authority to ensure that the mission of the institution is carried out. Members of the policy-making body shall represent the interests of all of the constituencies of the institution who are essential to carrying out the mission including the faculty, students, and staff.]

(4) Distinction of Roles. The institution shall define the powers, duties and responsibilities of the governing body and the executive officers. There shall be a clear distinction in the roles and personnel of the chief business officer and the chief academic officer. [ There shall be sufficient distinction among the roles and personnel of the policy-making body of the institution, the administration, and faculty to ensure their appropriate separation and independence.]

(5) - (7) (No change.)

(8) Institutional Evaluation.

(A) - (B) (No change.)

(C) For applied associate degree programs relating to occupations where state or national licensure is required, graduates must pass the licensing examination at a rate acceptable to the related licensing agency.

(9) - (23) (No change.)

[(24) Reporting. The institutions shall provide to the Board annually, in a form established by the Board, student records of the type specified in Standard (19) relating to Academic Records.]

(24) [(25)] Learning Outcomes. An institution may deviate from Standard 11 relating to Faculty Qualifications, Standard 12 relating to Faculty Size, Standard 16 relating to Credit for Work Completed Outside a Collegiate Setting, and Standard 17 relating to Learning Resources, if there is an objective system of assessing learning outcomes in place for each part of the curriculum and the institution can demonstrate that appropriate learning outcomes are being achieved.

§7.8.Alternative Certificate of Authority.

In lieu of the standard certification of authority requirements for institutions and their agents in §§7.7, 7.11, and 7.12 of this chapter, an institution may obtain an alternative certificate of authority to issue degrees as provided by this section. Alternative certificates of authority shall be issued by the Commissioner and are temporary, being valid for twelve (12) months, after which a regular certificate of authority shall be required. A site visit shall be conducted by Board staff during the initial twelve month period.

(1) Surety Instrument Requirement.

(A) - (C) (No change.)

(D) Following the initial filing of the surety bond with the Board, the amount of the bond shall be recalculated annually based upon a reasonable estimate of the maximum prepaid, unearned tuition and fees received by the school for such period or term. In no case shall the amount of the bond be less than twenty-five thousand dollars ($25,000) [ five thousand dollars ($5,000)].

(E) - (M) (No change.)

(2) - (8) (No change.)

§7.9.Certificate of Authority for Career Schools and Colleges.

(a) - (r) (No change.)

(s) Associate of Occupational Studies (AOS) Degree--Texas has three career schools or colleges awarding the AOS degree: Universal Technical Institute, Southwest Institute of Technology, and Western Technical Institute. The AOS degree shall be awarded in only the following fields: automotive mechanics, diesel mechanics, refrigeration, electronics, and business. Each of the three Institutions may continue to award the AOS degree for those fields listed above and shall be restricted to those fields.

(1) The Board shall not consider new AOS degree programs in other fields from the three career schools or colleges.

(2) The Board shall not consider new AOS degree programs from any other career schools or colleges.

(3) A career school or college authorized to grant the AOS degree shall not represent such degree by using the terms "associate" or "associate's" without including the words "occupational studies." An institution authorized to grant the AOS degree shall not represent such degree as being the equivalent of the AAS or AAA degrees.

(t) [(s)] Closure of a Career School or College.

(1) The governing board, owner, or chief executive officer of a career school or college that plans to cease operation shall provide the Board with written notification of intent to close at least ninety (90) days prior to the planned closing date.

(2) If a career school or college closes unexpectedly, the governing board, owner, or chief executive officer of the school shall provide the Board with written notification immediately.

(3) If a career school or college closes or intends to close before all currently enrolled students have completed all requirements for graduation, the institution shall assure the continuity of students' education by entering into a teach-out agreement with another career school or college authorized by the Board to hold a Certificate of Authority according to this section, with a school accredited by a recognized accrediting agency, or with a public two-year college. The agreement shall be in writing, shall be subject to Board approval, and shall contain provisions for student transfer, and shall specify the conditions for completion of degree requirements at the teach-out institution. The agreement shall also contain provisions for awarding degrees.

(4) The Certificate of Authority for a career school or college is automatically withdrawn when the institution closes. The Commissioner may grant to a career school or college that has a Certificate of Authority temporary approval to award a degree(s) in a program the institution does not have approval for in order to facilitate a formal agreement as outlined under this section.

(A) The curriculum and delivery shall be appropriate to accommodate the remaining students.

(B) No new students shall be allowed to enter the transferred degree program unless the new entity seeks and receives permanent approval for the program(s) from the Board.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 9, 2008.

TRD-200802988

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 24, 2008

For further information, please call: (512) 427-6114

19 TAC §7.15, §7.16

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §7.15 and §7.16, concerning Degree Granting Colleges and Universities Other than Texas Public Institutions. Specifically, this repeal will allow Board staff to add a new §7.15 and renumber the repealed sections.

Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the repeal is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the repeal as proposed.

Dr. Stafford has also determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of administering the repeal will be negligible. There is no anticipated effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the repeal as proposed. There is no impact on local employment.

Comments on the proposed repeal may be submitted to Joseph Stafford, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or Joe.Stafford@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The repeal is proposed under the Texas Education Code, Chapter 61, Subchapter G, and Texas Education Code, Chapter 132, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.

The repeal affects implementation of Texas Education Code, Chapter 61, Subchapter G, §§61.301 - 61.319.

§7.15.Use of Fictitious, Fraudulent, or Substandard Degrees.

§7.16.Administrative Penalties and Injunctions.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 9, 2008.

TRD-200802990

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 24, 2008

For further information, please call: (512) 427-6114

19 TAC §§7.15 - 7.17

The Texas Higher Education Coordinating Board proposes new §§7.15 - 7.17, concerning Degree Granting Colleges and Universities Other than Texas Public Institutions. Specifically, this proposed change will allow Board staff to add a §7.15 and renumber the sections previously numbered §7.15 and §7.16.

Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Stafford has also determined that for each year of the first five years the new sections are in effect, the public benefit anticipated as a result of administering the sections will be a more effective and more appropriate Board response to the requirements and needs of institutions wishing to operate in Texas. Many of those institutions are small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Joseph Stafford, Assistant Commissioner, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or Joe.Stafford@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the Texas Education Code, Chapter 61, Subchapter G, and Texas Education Code, Chapter 132, which provides the Coordinating Board with the authority to regulate the awarding or offering of degrees, credit toward degrees, and the use of certain terms.

The new sections affect implementation of Texas Education Code, Chapter 61, Subchapter G, §§61.301 - 61.319.

§7.15.Data Reporting.

The institutions shall provide to the Board annually, in a form established by the Board, student records of the type specified in §7.5(a)(19) of this chapter (relating to Standards for Operation of Institutions).

§7.16.Use of Fictitious, Fraudulent, or Substandard Degrees.

(a) The Board shall disseminate the following information through the Board's Internet website:

(1) the accreditation status or the status regarding authorization or approval under this subchapter, to the extent known by the Board, of each exempt institution operating in the state, each postsecondary educational institution or other person that is regulated under §§7.7 - 7.12 of this chapter or for which a determination is made under §7.12(c) of this chapter (relating to Changes of Ownership and Other Substantive Changes), and any institution offering fraudulent or substandard degrees, including:

(A) the name of each educational institution accredited, authorized, or approved to offer or grant degrees in this state;

(B) the name of each educational institution whose degrees the Board has determined may not be legally used in this state;

(C) the name of each educational institution that the Board has determined to be operating in this state in violation of this chapter; and

(D) any other information considered by the Commissioner to be useful to protect the public from fraudulent, substandard, or fictitious degrees.

(2) the Board shall utilize such usual and customary sources for determining the accreditation status of institutions, such as: guides to international education; the Board's knowledge of legal actions taken against institutions, either by an agency of the state of Texas or agencies of other states or nations; or civil actions against institutions brought by governmental agencies or individuals.

(b) In determining the legitimacy of institutions headquartered or operating outside of Texas, the Board may determine if the state or nation in which the person or institution is headquartered, operates, or holds legal authorization to operate has standards and practices that are as rigorous as those of the Board's. A determination that a particular state or nation's standards or practices are not appropriately rigorous shall be sufficient reason to disapprove the use of the degrees of a person or institution.

§7.17. Administrative Penalties and Injunctions.

(a) A person or institution may not:

(1) Grant, award, or offer to award a degree on behalf of a nonexempt institution unless the institution has been issued a certificate of authority, including an alternative certificate of authority, to grant the degree by the Board;

(2) Represent that credits earned or granted by that person or institution are applicable for credit toward a degree to be granted by some other person or institution except under conditions and in a manner specified under §7.7 of this chapter (relating to Certificate of Authority) and approved by the Board, or represent that credits earned or granted are collegiate in nature, including describing them as "college-level," or at the level of any protected academic term;

(3) Award or offer to award an honorary degree on behalf of a private postsecondary institution subject to the provisions of the subchapter, unless the institution has been awarded a certificate of authority to award such a degree, or solicits another person to seek or accept an honorary degree and, further, unless the degree shall plainly state on its face that it is honorary;

(4) Use a protected term in the official name or title of a nonexempt private postsecondary institution or describe an institution using any of these terms or a term having a similar meaning, except as authorized by the Board, or solicit another person to seek a degree or to earn a credit that is offered by an institution or establishment that is using a term in violation of this section;

(5) Use a protected term in the official name or title of an educational or training establishment or describe an institution using any of these terms or a term having a similar meaning, or solicit another person to seek a degree or to earn a credit that is offered by an institution or establishment that is using a term in violation of this section;

(6) Act as an agent who solicits students for enrollment in a private postsecondary institution subject to the provisions of the subchapter without a certificate of registration, if required by this chapter;

(7) Use or claim to hold a degree that the person knows is a fraudulent or substandard degree or is a fictitious degree:

(A) in a written or oral advertisement or other promotion of a business; or

(B) with the intent to:

(i) obtain employment;

(ii) obtain a license or certificate to practice a trade, profession, or occupation;

(iii) obtain a promotion, compensation or other benefit, or an increase in compensation or other benefit, in employment or in the practice of a trade, profession, or occupation;

(iv) obtain admission to an educational program in this state; or

(v) gain a position in government with authority over another person, regardless of whether the actor receives compensation for the position.

(b) Institutions Located on Federal Land in Texas. An institution that is operating on land in Texas over which the federal government has exclusive jurisdiction shall limit the recruitment of students and advertising of the institution or its programs or courses to the confines of the federal land and to the military or civilian employees and their dependents who work or live on that land. The institution shall not enlist any agent, representative, or institution to recruit or to advertise by any medium, the institution or its programs or courses except on the federal land.

(c) A violation of this subsection may constitute a violation of the Texas Penal Code, §32.52. An offense under subsection (a)(1) - (6) of this section may be a Class A misdemeanor and an offense under subsection (a)(7) of this section may be a Class B misdemeanor.

(d) In the event any institution now or hereafter operating in this state proposes to discontinue its operation, the chief administrative officer, by whatever title designated, of said institution shall cause to be filed with the Board the original or legible true copies of all such academic records of said institution as may be specified by the Commissioner. Such records shall include, without limitation:

(1) such academic information as is customarily required by colleges when considering students for transfer or advanced study; and

(2) the academic records of each former student.

(e) In the event it appears to the Commissioner that any records of an institution that is discontinuing its operations are in danger of being destroyed, secreted, mislaid, or otherwise made unavailable to the Board, the Commissioner may seek, on the Board's behalf, court authority to take possession of such records.

(f) The Board shall maintain or cause to be maintained a permanent file of such records coming into its possession.

(g) If a person or institution violates a provision of this subchapter, the Commissioner may assess an administrative penalty against the person or institution as provided in this section.

(h) The Commissioner shall send written notice by certified mail to the person or institution charged with the violation. The notice shall state the facts on which the penalty is based, the amount of the penalty assessed, and the right of the person or institution to request a hearing.

(i) The Commissioner's assessment shall become final and binding unless, within forty-five (45) days of receipt of the notice of assessment, the person or institution invokes the administrative remedies contained in Chapter 1, Subchapter B of this title (relating to Dispute Resolution).

(j) If the person or institution does not pay the amount of the penalty within thirty (30) days of the date on which the assessment becomes final, the Commissioner may refer the matter to the attorney general for collection of the penalty, plus court costs and attorney fees.

(k) Any person or institution that is neither exempt nor the holder of a certificate of authority, including an alternative certificate of authority, to grant degrees, shall be assessed an administrative penalty of not less than $1,000 or more than $5,000 for, either individually or through an agent or representative:

(1) conferring or offering to confer a degree;

(2) awarding or offering to award credits purported to be applicable toward a degree to be awarded by another person or institution (except under conditions and in a manner specified and approved by the Board);

(3) representing that any credits offered are collegiate in nature subject to the provisions of this subchapter;

(4) each degree conferred without authority, and each person enrolled in a course or courses at the institution whose decision to enroll was influenced by the misrepresentations, constitutes a separate offense.

(l) Any person or institution that violates subsection (a)(4) or (5) of this section shall be assessed an administrative penalty of not less than $1,000 or more than $3,000.

(m) Any agent who solicits students for enrollment in an institution subject to the provisions of the subchapter without a certificate of registration shall be assessed an administrative penalty of not less than $500 or more than $1,000. Each student solicited without authority constitutes a separate offense.

(n) Any operations which are found to be in violation of the law shall be terminated.

(o) The Commissioner may report possible violations of this subchapter to the attorney general. The attorney general, after investigation and consultation with the Board, shall bring suit to enjoin further violations.

(p) An action for an injunction under this section shall be brought in a district court in Travis County.

(q) A person who violates this subchapter or a rule adopted under this subchapter is liable for a civil penalty in addition to any injunctive relief or any other remedy allowed by law. A civil penalty may not exceed $1,000 a day for each violation.

(r) The attorney general, at the request of the Board, shall bring a civil action to collect a civil penalty under this section.

(s) A person who violates this subchapter commits a false, misleading, or deceptive act or practice within the meaning of the Texas Business and Commerce Code, §17.46.

(t) A public or private right or remedy under the Texas Business and Commerce Code, Chapter 17, may be used to enforce this section.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 9, 2008.

TRD-200802989

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 24, 2008

For further information, please call: (512) 427-6114

CHAPTER 102. EDUCATIONAL PROGRAMS

Subchapter EE. COMMISSIONER'S RULES CONCERNING PILOT PROGRAMS

19 TAC §102.1056

The Texas Education Agency (TEA) proposes new §102.1056, concerning the Dropout Recovery Pilot Program. The proposed new rule would establish a grant program for dropout recovery that meets the requirements of the Strategic Plan of the High School Completion and Success Initiative Council authorized in the Texas Education Code (TEC), §39.361(c).

The TEC, §39.357(b), requires the commissioner to establish rules as necessary to administer the strategic plan adopted by the High School Completion and Success Initiative Council (Council). The TEC, §39.361(c), authorizes the commissioner to establish grant programs to meet the goals of the Council's strategic plan. In addition, the TEC, §39.366, authorizes the commissioner to adopt rules as necessary to administer the High School Completion and Success Initiative.

The strategic plan was adopted by the Council on March 11, 2008. The Council's goals are to: reduce high school dropout rates, improve postsecondary success, and close gaps in achievement among student socio-economic, racial, and ethnic groups. Under these goals, the Council specified objectives and corresponding action plans. In action plan 1.3.1, the strategic plan provides for targeted intervention programs to serve students who have academic deficiencies, are at-risk of dropping out of school, or have already dropped out of school through traditional and alternative education settings. The strategic plan further specifies the inclusion of a dropout recovery program for which a variety of service providers are eligible such as school districts, open-enrollment charter schools, regional education service centers, institutions of higher education, and nonprofit organizations.

The proposed new 19 TAC §102.1056, Dropout Recovery Pilot Program, would establish a grant program to recover students who have dropped out of Texas public schools and enable them to earn a high school diploma or demonstrate college readiness by obtaining a General Educational Development (GED) credential and by passing the Texas Success Initiative (TSI) and a college course or its equivalent. The proposed grant program will be competitively funded under a Request for Application (RFA) process and includes various grant conditions. The proposed new rule would establish and address: definitions for applicable words and terms; criteria for eligible entities; specifications for application and notification; conditions of program operation; details about funding, including allowable expenditures and expenditures that are not allowed; information about evaluation and revocation; requirements for access to records; and provisions for a technical advisory panel.

Approved pilot program participants would be required to adhere to all procedural, reporting, and evaluation requirements. Entities awarded funding would be required to maintain grant application documentation and program-related paperwork.

Barbara Knaggs, Associate Commissioner for State Initiatives, has determined that for the first five-year period the new section is in effect there will be no additional fiscal implications for state or local government as a result of enforcing or administering the new section. The proposal would establish in rule procedures for implementation of the Dropout Recovery Pilot Program.

Ms. Knaggs has determined that for each year of the first five years the new section is in effect the public benefit anticipated as a result of enforcing the new section will be that eligible students will benefit through expanded access to programs in which they may earn a high school diploma or demonstrate college readiness. There is no anticipated economic cost to persons who are required to comply with the proposed new section.

There is no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

The public comment period on the proposal begins June 20, 2008, and ends July 21, 2008. Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028.

A public hearing will be held to receive public comments on the proposed rule. The hearing has been scheduled for Wednesday, June 25, 2008, at 9:00 a.m. in the Capitol Extension Auditorium, 1100 North Congress Avenue, Austin, Texas. Questions about the scheduled public hearing should be directed to the TEA Division of State Initiatives at (512) 936-6060.

The new section is proposed under the Texas Education Code (TEC), §39.357, as added by House Bill 2237, 80th Texas Legislature, 2007, which requires the commissioner to establish rules as necessary to administer the strategic plan adopted by the High School Completion and Success Initiative Council (Council), and TEC, §39.366, which authorizes the commissioner to adopt rules as necessary to administer the High School Completion and Success Initiative. The TEC, §39.361(c), authorizes the commissioner to establish grant programs to meet the goals of the Council's strategic plan.

The new section implements the TEC, §§39.357, 39.365, 39.366, and 39.361.

§102.1056.Dropout Recovery Pilot Program.

(a) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Advanced technical credit--Credit earned by a high school student who meets established guidelines for successful completion of an articulated content-enhanced technical course included on the list of courses in the Statewide Articulated Crosswalk established by the Advanced Technical Credit Program, a program accepted by participating colleges and universities for students interested in preparing for college and a technical career that requires postsecondary education.

(2) Dropout Recovery Pilot Program--A pilot program established and implemented by the Texas Education Agency (TEA) in accordance with the Texas Education Code (TEC), Chapter 39, Subchapter L. The pilot program is to provide eligible entities with financial grants to identify and recruit students who have dropped out of Texas public schools and provide them services designed to enable them to earn a high school diploma or demonstrate college readiness.

(3) Eligible student--For the purposes of this section, an eligible student is defined as a student who is 25 years of age or less and who:

(A) was assigned by a Texas public secondary school a leaver code in the Public Education Information Management System (PEIMS) that corresponds to the definition of a dropout for that school year in which the student withdrew;

(B) was enrolled in a Texas public secondary school and during the last regular school year in which the student was enrolled the student was not in attendance for at least 30 consecutive school days. Between this period of non-attendance and enrollment in the Dropout Recovery Pilot Program, the student may not have been enrolled in any Texas public secondary school, private school, or home school; or

(C) has a notarized affidavit from the student's parent or legal guardian stating that the student has dropped out of a Texas public secondary school, as defined in subparagraph (A) or (B) of this paragraph, and is not currently enrolled in a Texas public secondary school, private school, or home school.

(4) Institution of higher education (IHE)--An institution of higher education is any public technical institute, public junior college, public senior college or university, medical or dental unit, or other agency of higher education as defined in the TEC, §61.003.

(5) Nonprofit organization--An organization that meets the requirements of the United States Code, Title 26, Subtitle A, Chapter 1, Subchapter F, Part I, Section 501(a).

(6) P-16 Individualized graduation plan (P-16 IGP)--A document with a prekindergarten through postsecondary focus, detailing a student's plans regarding courses to be taken during high school in order to succeed in entry-level courses offered at IHEs. A P-16 IGP shall include the following:

(A) the most recent assessment scores and strategies to improve these scores if they fall below the student's appropriate grade level;

(B) the educational goals of the student;

(C) any diagnostic information, appropriate monitoring and intervention and other evaluation strategies;

(D) a description of participation of the student's parent(s) or guardian, including consideration of their educational expectations for the student; and

(E) a description of innovative methods to be used to promote the student's advancement and preparation to enter higher education prepared to succeed in entry-level courses.

(7) School district--For the purposes of this section, the definition of school district includes an open-enrollment charter school.

(8) Shared service arrangement (SSA)--A shared service arrangement is an agreement between two or more eligible applicants (school districts, nonprofit organizations that have demonstrated the ability and capacity to provide educational programs to students in any grade from kindergarten through Grade 12, education service centers, county departments of education) for provision of program services. A nonprofit organization that is not an eligible applicant may participate in the shared service arrangement, but may not serve as the fiscal agent.

(9) Texas Success Initiative (TSI)--An initiative of the Texas Higher Education Coordinating Board established under §4.51 of this title (relating to Purpose).

(b) Eligibility.

(1) The following entities, located in specific regions of the state as established annually in the grant application, are eligible to apply for and receive grant funds under the Dropout Recovery Pilot Program:

(A) school districts;

(B) IHEs;

(C) county departments of education;

(D) nonprofit organizations that have demonstrated the ability and capacity to provide educational programs to students in any grade from kindergarten through Grade 12; and

(E) education service centers established under the TEC, §8.001.

(2) Eligible applicants listed in paragraph (1) of this subsection and other nonprofit organizations may enter into an SSA in order to apply for grant funds. An SSA is limited to no more than ten entities.

(3) The applicant awarded the grant and acting as the fiscal agent for the program must comply with the following conditions of eligibility.

(A) The applicant must have been operating as one of the eligible entities listed in paragraph (1) of this subsection for at least three years prior to the time of grant application.

(B) If an applicant is operating an education program that issues high school diplomas, the applicant must either have:

(i) been granted a charter from the State Board of Education or the local district in which it resides, or a home-rule district in accordance with the TEC, §§12.011, 12.052, and 12.101; or

(ii) earned accreditation through:

(I) the TEA, in accordance with the TEC, §39.071, and §97.1053 of this title (relating to Purpose);

(II) an accrediting entity, operating as a member of the Texas Private School Accreditation Commission; or

(III) another accrediting entity approved by the commissioner of education.

(C) The applicant must be determined by the TEA to be financially stable. The TEA will make this determination using information required of the applicant serving as the fiscal agent and submitted in the grant application, including information provided in the following reports:

(i) an audit report, conducted within the last two years, including a statement of financial position, statement of activities (income), statement of cash flows, note disclosures, and the independent auditor's opinion (standard report);

(ii) if subject to the Single Audit Act of 1996, as amended, the applicant must also include reports in accordance with Government Auditing Standards, as promulgated by the United States Government Accountability Office and Office of Management and Budget Circular A-133; or

(iii) a compilation of financial statements prepared by a certified public accountant, including a report on compiled financial statements, a statement of financial position, statement of activities (income), and statement of cash flow.

(D) All nonprofit organizations, including open-enrollment charter schools but excluding school districts, must submit current proof of nonprofit status. An applicant may show current nonprofit status by any of the following means:

(i) a copy of a letter from the Internal Revenue Service recognizing that contributions to the organization are tax deductible under the Internal Revenue Code, Section 501(c)(3);

(ii) a statement from a state taxing body or the state attorney general certifying that the organization is a nonprofit organization operating within the state and that no part of its net earnings may lawfully benefit any private shareholder or individual;

(iii) a certified copy of the applicant's certificate of incorporation or similar document if it clearly establishes the nonprofit status of the applicant; or

(iv) any item described in this subparagraph if that item applies to a state or national parent organization, together with a statement by the parent organization that it is a local nonprofit affiliate.

(c) Application.

(1) An eligible applicant must submit an application in accordance with procedures determined by the commissioner and detailed in the Request for Application (RFA). The application must include a P-16 Strategic Plan that indicates how implementation of this program will address deficiencies in the grantee's overall P-16 strategy.

(2) Each eligible applicant must meet all deadlines, requirements, and guidelines outlined in the RFA.

(d) Notification. The TEA will notify each applicant in writing of selection or non-selection for funding under the Dropout Recovery Pilot Program. In the case of an application selected for funding, notification to the applicant will include the contractual conditions the applicant agrees to accept as a condition of grant award.

(e) Conditions of pilot program operation. Each grantee operating an approved Dropout Recovery Pilot Program must operate the program in accordance with the requirements outlined in the RFA and must:

(1) conduct an assessment, in accordance with specifications detailed in subsection (f)(4)(B)(ii) - (iii) of this section, for each participating student to determine services needed and create a P-16 IGP for each student based on the assessment;

(2) employ as faculty and administrators persons with baccalaureate or advanced degrees;

(3) meet the following requirement regarding employee criminal history checks:

(A) if a grantee is a school district, the grantee must be in compliance with the TEC, §22.085(f), to remain eligible for the program; or

(B) if a grantee is not a school district, the grantee must obtain criminal history record information as defined in §153.1101(2) of this title (relating to Definitions) on each employee, and an officer of the organization with signature authority must certify that no employee of the organization or person contracted with the organization who has contact with students in the program has been convicted of:

(i) a felony offense under Title 5, Texas Penal Code;

(ii) an offense or conviction of which a defendant is required to register as a sex offender under Code of Criminal Procedure, Chapter 62; and

(iii) an offense under the laws of another state or federal law that is equivalent to an offense under clause (i) or (ii) of this subparagraph; and

(4) ensure that the grant activities funded under the Dropout Recovery Pilot program are non-sectarian.

(f) Funding. Grantees are eligible to receive the following funding.

(1) Base funding. A grantee will receive a base amount of funding, to be determined during the grant application phase, in the first year of operation of the program for the purposes of planning, establishing an appropriate infrastructure to implement the program, and implementing the program for eligible students.

(2) Performance funding. In addition to the base funding, a grantee is eligible to receive performance funding up to a total of $2,000 in the program year (which includes no more than $1,000 in interim benchmark payments and $1,000 in a completion payment) for each eligible student participating in the program based upon the student's academic performance.

(A)Interim benchmark payments. A payment of $250 for any, not to exceed four, of the following benchmarks achieved by an eligible student participating in the program who:

(i) earned the required course credits necessary to advance to the next grade level;

(ii) earned high school graduation credit for a dual credit course that was established through an articulation agreement with an IHE or a private or an independent IHE, as defined in the TEC, §61.003(15);

(iii) earned college credit for a course that is within an IHE's core curriculum, in accordance with §4.28 of this title (relating to Core Curriculum), or an equivalent course offered by a private or an independent IHE, as defined in the TEC, §61.003(15);

(iv) earned a passing score on all subject areas of the statewide student assessment program for a grade level not including the Grade 11 exit-level statewide assessments;

(v) earned a score of three or higher on a College Board advanced placement examination;

(vi) earned a score on the Preliminary SAT®/National Merit Scholarship Qualifying Test or the PLAN® that predicts evidence of readiness, as determined by College Board or ACT®, for placement in College Board advanced placement, International Baccalaureate, or dual credit courses; or

(vii) other benchmarks as approved by the commissioner.

(B) Completion payments. A payment of $1,000 for each participating student who:

(i) earns a high school diploma; or

(ii) demonstrates college readiness by:

(I) achieving a passing score on a TSI testing instrument or earning a TSI exemption based on the score received for an alternative test such as SAT® or ACT®; and

(II) obtaining a General Educational Development (GED) credential; and

(III) earning either:

(-a-) college credit for a course that is within an IHE's approved core curriculum, in accordance with §4.28 of this title, or an equivalent course offered by a private or an independent IHE, as defined in the TEC, §61.003(15); or

(-b-) advanced technical credit.

(3) Other funding for school districts. School districts operating approved Dropout Recovery Pilot Programs may receive Foundation School Program funds for eligible participating students, in accordance with the TEC, §42.003.

(4) Other funding for eligible IHEs, nonprofit organizations, county departments of education, and education service centers. Programs operated by eligible IHEs, nonprofit organizations, county departments of education, and education service centers may receive a payment in an amount not greater than $4,000 ($2,000 per semester) for each eligible student participating in the program each year.

(A) Semester payments of up to $2,000 for each eligible student will be made at the end of each semester contingent upon the eligible student achieving academic progress on the same assessment instrument administered upon initial enrollment in the program and at the end of each subsequent semester.

(B) Programs must adhere to the following in choosing an assessment instrument to assess academic progress as described in subparagraph (A) of this paragraph:

(i) the same assessment instrument must be administered to the participating student for initial testing and at the end of each semester;

(ii) the assessment instrument must be a standardized test or a performance assessment with standardized scoring protocols; and

(iii) the assessment instrument and the performance standards for measuring academic progress must be identified in the grant application and approved by the commissioner prior to grant award.

(g) Allowable expenditures. Allowable expenditures with grant funds include, but are not limited to, the following:

(1) textbooks and other instructional materials;

(2) recruiting and promotional materials;

(3) personnel costs, including salaries, benefits, stipends, and incentives;

(4) tutoring services;

(5) test fees;

(6) social services;

(7) transportation;

(8) educational software;

(9) incentive programs for students;

(10) technology;

(11) equipment costs; and

(12) costs associated with distance learning or participation in virtual schools.

(h) Disallowed expenditures. The following expenditures, including but not limited to the following, may not be made with grant funds:

(1) construction;

(2) purchase of buildings;

(3) debt service (including lease-purchase agreements);

(4) expenditures related to religious instruction;

(5) expenditures related to students who are not eligible for the program; or

(6) indirect costs.

(i) Evaluation. Each grantee operating an approved Dropout Recovery Pilot Program must comply with evaluation procedures established by the commissioner as detailed in the RFA.

(j) Subsequent funding. To receive any subsequent funding for the Dropout Recovery Pilot Program, grantees must reapply for funding on an annual basis. In order to remain eligible for any subsequent funding, the grantee must have met all applicable performance standards included in the prior year's grant agreement and submit a new application annually.

(k) Revocation.

(1) The commissioner may revoke the grant award for the Dropout Recovery Pilot Program based on the following factors:

(A) noncompliance with application assurances and/or the provisions of this section;

(B) lack of program success as evidenced by progress reports and program data;

(C) failure to participate in data collection and audits;

(D) failure to meet performance standards specified in the application; or

(E) failure to provide accurate, timely, and complete information as required by the TEA to evaluate the effectiveness of the Dropout Recovery Pilot Program.

(2) A decision by the commissioner to revoke the grant award of a Dropout Recovery Pilot Program is final and may not be appealed.

(l) Access to records. For grantees that are nongovernmental bodies, access must be granted to all records, including those of the controlling or parent entity, involving transactions and payments of program funds.

(m) Technical assistance. The commissioner may create a technical advisory panel made up of experts and practitioners from areas with experience and expertise in dropout recovery to advise the TEA regarding review criteria and implementation issues. The technical advisory panel may provide technical assistance.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 9, 2008.

TRD-200802986

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 20, 2008

For further information, please call: (512) 475-1497

19 TAC §102.1071

The Texas Education Agency (TEA) proposes an amendment to §102.1071, concerning the Texas Educator Excellence Grant. The section establishes procedures for the administration of the awards for the student achievement program. The proposed amendment would update the procedures and requirements for the administration of the program.

House Bill 1, 79th Texas Legislature, Third Called Session, added the Texas Education Code (TEC), Chapter 21, Subchapter N, 2006, establishing a program whereby classroom teachers and other campus personnel may receive incentive awards from an eligible campus through the student achievement program. The legislation required the commissioner to establish the grant award program and adopt rules for developing a campus incentive plan and the awarding of funds. In response to this legislation, 19 TAC §102.1071, Governor's Educator Excellence Award Program--Texas Educator Excellence Grant, was adopted to be effective January 9, 2007.

Section 102.1071 implements the TEC, Chapter 21, Subchapter N, by establishing provisions that prescribe the procedure that a school district and open-enrollment charter school must follow to apply for and receive funding on behalf of an eligible campus for the grant program under this section. The rule also addresses the determination of which campuses are eligible to receive funding, establishes requirements for campus incentive plans, and provides additional specifications regarding the manner in which incentive payments are allocated to classroom teachers and other eligible campus employees.

The proposed amendment would add definitions for applicable words and terms, incorporate additional requirements for campus incentive plans, revise specifications for incentive payments to classroom teachers, and update details regarding distribution of program funds. In addition, the section title would be updated from "Governor's Educator Excellence Award Program--Texas Educator Excellence Grant" to "Texas Educator Excellence Grant."

The proposed amendment would provide additional requirements and procedures for applying for the Texas Educator Excellence Grant. Grantees must agree to submit all information, application materials, and reports required by the TEA. The proposed amendment does not require any additional locally maintained requirements not already in place from initial adoption of 19 TAC §102.1071.

Barbara Knaggs, Associate Commissioner for State Initiatives, has determined that for the first five-year period the amendment is in effect there will be no additional fiscal implications for state or local government as a result of enforcing or administering the amendment.

Ms. Knaggs has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be the positive impact the program will continue to have on classroom teaching by rewarding classroom teachers and other school personnel for success in improving and having a positive impact on student performance and for collaborating with faculty and staff to contribute to improving overall student performance on the campus. Another benefit will be increasingly improved education for the school children of Texas that prepares them for success in the future thereby creating an improved and more highly educated and prepared workforce. There is no anticipated economic cost to persons who are required to comply with the proposed amendment.

There is no direct adverse economic impact for small businesses and microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

The public comment period on the proposal begins June 20, 2008, and ends July 21, 2008. Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028. A request for a public hearing on the proposal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of the proposal has been published in the Texas Register on June 20, 2008.

The amendment is proposed under the Texas Education Code, §21.652 and §21.658, which authorize the commissioner to, by rule, establish procedures and adopt guidelines for the administration of the awards for the student achievement program.

The amendment implements the Texas Education Code, §§21.652 - 21.658.

§102.1071.[ Governor's Educator Excellence Award Program-- ] Texas Educator Excellence Grant.

(a) Establishment of program.

(1) In accordance with the Texas Education Code (TEC), §21.652, the [Governor's Educator Excellence Award Program--] Texas Educator Excellence Grant (TEEG) is established as an annual grant program under which a school district or open-enrollment charter school may receive a grant on behalf of an eligible campus as an award for student achievement. Provisions regarding implementation of the program are described in this section.

(2) Funds from this program will be distributed to a school district or open-enrollment charter school, on behalf of an eligible campus, that submitted an approved campus incentive plan developed in accordance with the TEC, §21.654, and subsection (f) [(c)] of this section.

(b) Definitions.

(1) Campus incentive plan--A plan developed in accordance with the TEC, §21.654, and subsection (f) of this section.

(2) Campus staff--For the purpose of this section, the definition of campus staff includes all school district employees regularly assigned to the campus.

(3) Classroom teacher--As defined in the TEC, §5.001(2).

(4) Contingency plan--A plan that outlines alternative strategies to distribute any remaining unawarded Part I and/or Part II grant funds after the campus incentive plan has been implemented.

(5) Objective, quantifiable measures--Sources used to evaluate student achievement or other non-academic, campus-level indicators of performance that can be measured, have a standardized definition, and are reported in the same way for every campus/district and in the same way from year to year.

(6) Part I funds--Grant funds that make up no less than 75% of the grant allocation and must be used to award eligible classroom teachers in accordance with the TEC, §21.656. Unexpended, unawarded Part I funds may not be carried over to subsequent years without commissioner of education approval.

(7) Part II funds--Grant funds that make up no more than 25% of the grant allocation and must be used on awards to campus teachers and staff and allowable activities in accordance with the TEC, §21.657. No more than 5.0% of the total grant allocation may be allocated for allowable direct administrative costs. These costs must be charged/deducted to Part II funds.

(8) Performance measures--Performance targets/goals established during the grant implementation year for campus teachers and staff that clearly state desired outcomes, outputs, or events and the timeframe in which they are to be met.

(9) Public viewing--For public viewing, content must be provided in a format that is understandable and disseminated through a mode easily accessible to anyone requesting the information.

(10) School district--For the purpose of this section, the definition of school district includes an open-enrollment charter school.

(c) [(b)] Campus eligibility.

(1) Campus eligibility shall be determined in accordance with the TEC, §21.653.

(2) Each year of the grant, a new list of eligible campuses will be published by the Texas Education Agency (TEA). Academically Unacceptable (AU) campuses are not eligible [will not be included on this list].

(3) Campuses may be eligible to receive this grant multiple times.

(d) Application. A school district must apply through the request for application process on behalf of an eligible campus to participate in the TEEG program. Each eligible applicant must meet all deadlines, requirements, and assurances specified in the application.

(e) Notification. The TEA will notify each applicant in writing of its approval or non-approval to receive a notice of grant award (NOGA) under the TEEG program.

(f) [(c)] Campus incentive plan.

(1) A campus incentive plan must:

(A) include:

(i) a Part I plan to distribute incentive payments to classroom teachers in accordance with the TEC, §21.656;

(ii) a Part II plan to distribute the remaining other program funds in accordance with the TEC, §21.657; and

(iii) Part I and Part II contingency plans;

(B) be:

(i) developed and approved by each campus-level decision-making body;

(ii) approved by a campuswide staff vote, by at least a simple majority;

(iii) approved by its district-level committee; and

(iv) presented to and, if applicable, approved by the local school board; and

(C) be made available for public viewing within a reasonable time period after each of the following:

(i) submission to the TEA by a school district on behalf of an eligible campus along with the grant application; and

(ii) the school district's receipt of the NOGA from the TEA if any program and/or budget amendments are made after submission.

[(1) As delineated in the TEC, §21.654, a campus incentive plan must be:]

[(A) developed by each campus-level decision-making body;]

[(B) approved by its district-level committee; and]

[(C) submitted by a district on behalf of an eligible campus.]

(2) The campus-level decision-making body developing the plan should be composed of individuals representing a diverse and broad mix of teachers, including representatives [ representation] from different grade levels and subject areas and with different years of teaching experience at the campus and/or school district.

(A) Participation on the campus-level decision-making body should be voluntary.

(B) The selection process for identifying the members of the campus-level decision-making body must be described in the request for application submitted to the TEA.

(C) No more than half of the members of the campus-level decision-making body should be assigned by campus administrators and/or central office personnel.

(3) The district-level decision-making committee may require minimum criteria in campus incentive plans. These criteria should be aligned with established districtwide goals, and campus plans must reflect these goals in distributing grant funds.

(4) [(3)] The school district may choose to provide guidance to campuses in the creation of plans.

(5) [(4)] The TEA may consider for approval only a campus incentive plan developed, approved, and submitted in accordance with the TEC, §21.654, and this section.

(6) [(5)] A school district must act pursuant to its local school board policy for submitting a campus incentive plan and grant application to the TEA. A local school board may either vote to submit a grant application or designate the superintendent to submit the application on the board's behalf. A superintendent may act on previously delegated authority regarding the submission of the grant application(s) [grant(s)].

(7) [(6)] A campus that has implemented an approved incentive plan may choose to renew its plan, should it be eligible for funding in subsequent years, for up to three years after the first year of implementation.

(8) [(7)] A decision by a local school board to approve and/or submit its incentive plan and/or grant application is not appealable to the commissioner of education. A local grievance decision as to whether an award was made in compliance with the approved plan is not appealable to the commissioner of education. Local school districts must follow locally established inquiry and appeal processes for local grievances to campus incentive plan processes, development, and implementation. These processes must be in agreement with local school district and school board policies.

(g) [(d)] Amount of program award.

(1) In accordance with the TEC, §21.655, each eligible campus whose campus incentive plan is approved by the TEA is entitled to a grant award in an amount determined by the commissioner of education.

(2) Award amounts may vary from one year to the next.

(h) [(e)] Incentive payments to classroom teachers.

(1) An eligible campus incentive plan must allocate [ distribute] a specified percentage (noless than 75%) of its program grant award to classroom teachers in accordance with the TEC, §21.656.

(2) All funds must be used to provide incentives not previously funded with state, local, or federal funds.

[(3) Incentives awarded under this subsection may be used only for classroom teachers. For the purposes of this subsection, the term "classroom teacher" is defined as "an educator who is employed by a school district and who, not less than an average of four hours each day, teaches in an academic instructional setting or a career and technology instructional setting." For the purposes of this subsection, the definition of the term "classroom teacher" does not include a teacher's aide or a full-time administrator.]

[(A) Necessary functions related to the classroom teacher's instructional assignment, such as instructional planning and transition between instructional periods, should be applied to creditable classroom time. Time spent on duties unrelated to instruction should not be credited toward classroom time.]

[(B) For a school district, a classroom teacher, as defined in this subsection, must hold an appropriate certificate issued by the State Board for Educator Certification and must meet the specifications regarding instructional duties defined in this subsection. For a charter school, a classroom teacher is not required to be certified, but must meet the qualifications of the employing charter school and the specifications regarding instructional duties defined in this subsection.]

(3) [(4)] As specified in the TEC, §21.656, and further delineated in this subsection, an eligible campus receiving program funds may distribute an incentive payment only to a classroom teacher who meets the performance measure requirements as specified in their approved campus incentive plan as allowed by the TEC, §21.656(b). [:]

[(A) demonstrates success in improving student achievement. Measures determining a classroom teacher's success in improving student performance must allow for program administrators to evaluate teacher impact on student achievement; and]

[(B) successfully collaborates with faculty and staff to contribute to improving overall student performance on the campus. The collaboration must be measured using campus-based activities. Participation in tutoring sessions or personal-planning periods is not a sufficient measure of collaboration.]

(4) [(5)] A campus or district may choose to exclude a teacher from receiving an incentive award as specified in this paragraph. In such an instance, the campus incentive plan must reflect the campus/district policies with regard to such a teacher at the program start date. These decisions must be clearly stated in the application and approved through the application approval process. A decision to exclude a certain teacher from receiving an award cannot be appealed to the commissioner of education. A teacher may be excluded who: [award a teacher who has transferred or retired or who works part-time on a campus eligible to receive grant funds. In such an instance, the campus incentive plan must reflect the campus/district policies with regard to such a teacher at the program start date.]

(A) is new to the campus;

(B) works part-time on an eligible campus; or

(C) meets another locally determined practice, except a teacher who retires or is transferred involuntarily from th e eligible campus during or following the grant implementation year.

(5) [(6)] Each individual incentive award should be no less than $3,000 and no more than $10,000 per teacher to the extent practicable. If teacher awards are less than $3,000 or more than $10,000, the campus incentive plan must: [include the reasons that a total possible individual award amount between $3,000 and $10,000 per teacher was not practicable. A local school board decision as to whether award amounts between $3,000 and $10,000 per teacher are practicable is final and may not be appealed to the commissioner of education.]

(A) include the reasons that a total possible individual award amount between $3,000 and $10,000 per teacher was not practicable, including decisions to set:

(i) maximum incentive amounts awarded from Part I and/or Part II grant funds; and

(ii) caps on additional incentive amounts redistributed from unawarded Part I and/or Part II grant funds, including the methodology used to determine the redistributed amount; and

(B) provide the date the local school board approved the award amount decisions. A local school board decision on award amounts per teacher is final and may not be appealed to the commissioner of education.

(i) [(f)] Distribution of other program funds. An eligible campus receiving program funds can [must] use a specified percentage (no more than 25%) of its program grant award for some or all of the provisions specified in the TEC, §21.657(a), when distributing incentive payments, including the requirements specified in [paragraphs (1) - (3) of ] this subsection when applicable. Program funds distributed under the TEC, §21.657, may also be used to increase the total amount of funds to provide awards to classroom teachers under the TEC, §21.656. Funds used for any of these allowable activities must be used to supplement not supplant. Stipends paid for teachers who hold a postgraduate degree, as specified in the TEC, §21.657(a)(12), must be for a postgraduate degree that will improve instructional abilities, excluding education administration, mid-management certification, and superintendency certification.

[(1) Stipends paid for teachers to participate in after-school or Saturday programs, as specified in the TEC, §21.657(a)(10), must be used to supplement not supplant.]

[(2) Stipends paid for teachers who hold a postgraduate degree, as specified in the TEC, §21.657(a)(12), must be for a postgraduate degree that will improve instructional abilities, excluding education administration, mid-management certification, and superintendency certification. These stipends must be used to supplement not supplant.]

[(3) Extending funding to feeder campuses, as outlined in the TEC, §21.657(a)(13), must be used to implement an activity described in the TEC, §21.657. The student population of the feeder campus shall not be used to determine campus award eligibility or the award amount.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on June 9, 2008.

TRD-200802987

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 20, 2008

For further information, please call: (512) 475-1497