1. (a) The Board recognizes that to prepare a literate and trained workforce to be available for economic stability and development requires a true joint partnership between private and public sectors. Accordingly, the Board encourages contractual agreements between institutions of higher education, business, industry, and other agencies to forge a common partnership of joint planning, facilities, laboratories, delivery systems, and evaluation efforts. The Board policy intends to provide institutional incentives for colleges to work with business, industry, and government in the development of an educated workforce for Texas.
2. (b) Each community and technical college may classify workforce continuing education and other courses as earning semester/quarter credit hours or continuing education units (CEUs). Contact hours reported for workforce education courses which result in either credit hours or CEUs shall be eligible for formula funding. A course or program that meets or exceeds 360 hours in length must be approved as a technical certificate program except by special justification and approval by Board staff. A course or program that meets or exceeds 780 hours in length must result in the award of appropriate semester/quarter credit hours and be applicable to a certificate and an applied associate degree program.
3. (c) General enrollment or contract training courses that are non-credit and do not result in the award of CEUs are not eligible for any state apportionment funding, but a community and technical college is free to market such non-credit or non-CEU training to business, industry, and government at whatever rate can be negotiated with the contracting organization. Exceptions regarding programs serving incarcerated students must be submitted to the Coordinating Board staff for review and approval.
4. (d) Courses earning CEUs shall be subject to the guidelines published by the Southern Association of Colleges and Schools Commission on Colleges as a condition of eligibility for formula funding.
5. (e) All student enrollments for semester/quarter hour credit are subject to the provisions of the Texas Academic Skills Program as applicable.
6. (f) Public community/junior or technical colleges providing courses to organizations for which semester/quarter hour credits or CEUs are earned must charge out-of-state tuition to non-resident students who are brought from out-of-state for such contract courses.

Source Note:The provisions of this §9.123 adopted to be effective August 23, 1998, 23 TexReg 8432.