The bill, S.B. No. 1400, aims to establish measurable outcomes for certain transfer students to enhance performance tier funding under the public junior college state finance program in Texas. It amends the Education Code by adding a definition for "general academic teaching institution" and revising the criteria for measurable outcomes that are considered for performance tier funding. Specifically, it clarifies that the number of students transferring from a public junior college to a general academic teaching institution will be counted as transfer students, even if they have not completed 30 semester credit hours at the latter institution.

Additionally, the bill modifies the existing criteria for performance tier funding by removing the previous definition of "general academic teaching institution" and introducing new language that specifies the conditions under which a student is recognized as a transfer student. The changes are designed to better reflect the pathways students take in their educational journeys and to ensure that funding is allocated based on relevant outcomes. The bill is set to take effect on September 1, 2025.

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