Chief Sponsor: Kim F. Coleman

Senate Sponsor: Howard A. Stephenson


9     General Description:
10          This bill amends provisions related to performance funding metrics for higher
11     education institutions.
12     Highlighted Provisions:
13          This bill:
14          ▸     defines a term;
15          ▸     adds a metric for measuring the performance of higher education institutions for
16     performance funding; and
17          ▸     makes technical and conforming changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          53B-7-702, as enacted by Laws of Utah 2017, Chapter 365 and last amended by
25     Coordination Clause, Laws of Utah 2017, Chapter 382
26          53B-7-706, as enacted by Laws of Utah 2017, Chapter 365

28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 53B-7-702 is amended to read:
30          53B-7-702. Definitions.
31          As used in this part:
32          (1) "Account" means the Performance Funding Restricted Account created in Section
33     53B-7-703.
34          (2) "Competency-based" means a system where a student advances to higher levels of
35     learning when the student demonstrates competency of concepts and skills regardless of time,
36     place, or pace.
37          [(2)] (3) "Estimated revenue growth from targeted jobs" means the estimated increase
38     in individual income tax revenue generated by individuals employed in targeted jobs,
39     determined by the Department of Workforce Services in accordance with Section 53B-7-704.
40          [(3)] (4) "Full new performance funding amount" means the maximum amount of new
41     performance funding that a higher education institution or technical college may qualify for in
42     a fiscal year, determined by the Legislature in accordance with Section 53B-7-705.
43          [(4)] (5) "Full-time" means the number of credit hours the board determines is full-time
44     enrollment for a student.
45          [(5)] (6) "GOED" means the Governor's Office of Economic Development created in
46     Section 63N-1-201.
47          [(6)] (7) "Higher education institution" means the same as that term is defined in
48     Section 53B-7-101.
49          [(7)] (8) "Job" means an occupation determined by the Department of Workforce
50     Services.
51          [(8)] (9) "Membership hour" means 60 minutes of scheduled instruction provided by a
52     technical college to a student enrolled in the technical college.
53          [(9)] (10) "New performance funding" means the difference between the total amount
54     of money in the account and the amount of money appropriated from the account for
55     performance funding in the current fiscal year.
56          [(10)] (11) "Performance" means total performance across the metrics described in:
57          (a) Section 53B-7-706 for a higher education institution; or
58          (b) Section 53B-7-707 for a technical college.

59          [(11)] (12) "Research university" means the University of Utah or Utah State
60     University.
61          [(12)] (13) "Targeted job" means a job designated by the Department of Workforce
62     Services or GOED in accordance with Section 53B-7-704.
63          [(13)] (14) "Technical college graduate" means an individual who:
64          (a) has earned a certificate from an accredited program at a technical college; and
65          (b) is no longer enrolled in the technical college.
66          [(14)] (15) "Utah System of Technical Colleges" means the Utah System of Technical
67     Colleges described in Chapter 2a, Utah System of Technical Colleges.
68          Section 2. Section 53B-7-706 is amended to read:
69          53B-7-706. Performance metrics for higher education institutions --
70     Determination of performance.
71          (1) (a) The board shall establish a model for determining a higher education
72     institution's performance.
73          (b) The board shall submit a draft of the model described in this section to the Higher
74     Education Appropriations Subcommittee and the governor for comments and
75     recommendations.
76          (2) (a) The model described in Subsection (1) shall include metrics, including:
77          (i) completion, measured by degrees and certificates awarded;
78          (ii) completion by underserved students, measured by degrees and certificates awarded
79     to underserved students;
80          (iii) responsiveness to workforce needs, measured by degrees and certificates awarded
81     in high market demand fields;
82          (iv) institutional efficiency, measured by degrees and certificates awarded per full-time
83     equivalent student; [and]
84          (v) increased access to competency-based coursework and evidence-based online
85     coursework; and
86          [(v)] (vi) for a research university, research, measured by total research expenditures.
87          (b) Subject to Subsection (2)(c), the board shall determine the relative weights of the
88     metrics described in Subsection (2)(a).
89          (c) The board shall assign the responsiveness to workforce needs metric described in

90     Subsection (2)(a)(iii) a weight of at least 25% when determining an institution of higher
91     education's performance.
92          (3) For each higher education institution, the board shall annually determine the higher
93     education institution's:
94          (a) performance; and
95          (b) change in performance compared to the higher education institution's average
96     performance over the previous five years.
97          [(4) On or before September 1, 2017, the board shall report to the Higher Education
98     Appropriations Subcommittee on the model described in this section.]
99          [(5)] (4) The board shall use the model described in this section to make the report
100     described in Section 53B-7-705 for determining a higher education institution's performance
101     funding for a fiscal year beginning on or after July 1, 2018.

Legislative Review Note
Office of Legislative Research and General Counsel