1-1     By:  Cuellar, et al. (Senate Sponsor - Ellis)          H.B. No. 713
 1-2           (In the Senate - Received from the House April 23, 1999;
 1-3     April 26, 1999, read first time and referred to Committee on
 1-4     Education; May 3, 1999, reported adversely, with favorable
 1-5     Committee Substitute by the following vote:  Yeas 7, Nays 0;
 1-6     May 3, 1999, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 713                By:  Zaffirini
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to student financial aid, including the consolidation or
1-11     repeal of student aid and grant programs and the creation of grant
1-12     programs to provide financial assistance to students at
1-13     institutions of higher education who meet certain academic,
1-14     citizenship, financial need, and other requirements.
1-15           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-16           SECTION 1.  Chapter 56, Education Code, is amended by adding
1-17     Subchapter M to read as follows:
1-18              SUBCHAPTER M.  TEXAS HOPE GRANT PROGRAM AND TEACH
1-19                           FOR TEXAS GRANT PROGRAM
1-20           Sec. 56.301.  DEFINITIONS.  In this subchapter:
1-21                 (1)  "Coordinating board" means the Texas Higher
1-22     Education Coordinating Board.
1-23                 (2)  "Eligible institution" means:
1-24                       (A)  an institution of higher education; or
1-25                       (B)  a private or independent institution of
1-26     higher education.
1-27                 (3)  "Private or independent institution of higher
1-28     education," "public junior college," and "public technical
1-29     institute" have the meanings assigned by Section 61.003.
1-30           Sec. 56.302.  PROGRAM NAME; PURPOSE.  (a)  The student
1-31     financial assistance program authorized by this subchapter is known
1-32     as the Texas Hope Grant Program, and an individual grant awarded
1-33     under this subchapter is known as a Texas Hope grant.
1-34           (b)  The purpose of this subchapter is to provide a grant of
1-35     money to enable qualified students to attend public and private
1-36     institutions of higher education in this state.
1-37           Sec. 56.303.  ADMINISTRATION OF PROGRAMS.  (a)  The
1-38     coordinating board shall administer the Texas Hope Grant Program
1-39     and the Teach for Texas Grant Program and shall adopt any rules
1-40     necessary to implement the programs or this subchapter.
1-41           (b)  The coordinating board shall adopt rules to provide a
1-42     Texas Hope grant to an eligible student enrolled in an eligible
1-43     institution of higher education in the most efficient manner
1-44     possible.
1-45           (c)  The total amount of Texas Hope grants awarded may not
1-46     exceed the amount available for the program from appropriations,
1-47     gifts, grants, or other funds.
1-48           (d)  In determining who should receive a Texas Hope grant,
1-49     the coordinating board shall give highest priority to awarding
1-50     grants to students who demonstrate the greatest financial need.
1-51           Sec. 56.304.  ELIGIBLE PERSON.  (a)  To be eligible initially
1-52     for a Texas Hope grant, a person must:
1-53                 (1)  be a resident of this state as determined by
1-54     coordinating board rules;
1-55                 (2)  have graduated from a public high school in this
1-56     state not earlier than the 1998-1999 school year and have completed
1-57     the recommended or advanced high school curriculum established
1-58     under Section 28.002 or 28.025;
1-59                 (3)  meet financial need requirements as defined by the
1-60     coordinating board;
1-61                 (4)  be from a low or middle income family, as
1-62     determined by the coordinating board;
1-63                 (5)  be enrolled in an undergraduate degree or
1-64     certificate program at an eligible institution;
 2-1                 (6)  enroll for at least three-fourths of a full course
 2-2     load as an entering freshman in an undergraduate degree or
 2-3     certificate program not later than the 16th month after the month
 2-4     of the person's graduation from a high school in this state;
 2-5                 (7)  have applied for any available financial aid or
 2-6     assistance; and
 2-7                 (8)  comply with any other requirement adopted by the
 2-8     coordinating board under this subchapter.
 2-9           (b)  A person is not eligible to receive a Texas Hope grant
2-10     if the person has been granted a baccalaureate degree.
2-11           (c)  A person may not receive a Texas Hope grant for more
2-12     than 150 semester credit hours or the equivalent.
2-13           (d)  A person's eligibility for a Texas Hope grant ends on
2-14     the sixth anniversary of the person's initial enrollment in an
2-15     eligible institution.
2-16           (e)  A person is not eligible to receive a Texas Hope grant
2-17     if the person has been convicted of a felony, a crime involving
2-18     moral turpitude, or an offense under Chapter 481, Health and Safety
2-19     Code (Texas Controlled Substances Act), or under the law of any
2-20     other jurisdiction involving a controlled substance as defined by
2-21     Chapter 481, Health and Safety Code, unless the person has met the
2-22     other applicable eligibility requirements under this subchapter and
2-23     has:
2-24                 (1)  received a certificate of discharge by the Texas
2-25     Department of Criminal Justice or a correctional facility or
2-26     completed a period of probation ordered by a court, and at least
2-27     two years have elapsed from the date of the receipt or completion;
2-28     or
2-29                 (2)  been pardoned, had the record of the offense
2-30     expunged from the person's record, or otherwise been released from
2-31     the resulting ineligibility to receive a Texas Hope grant.
2-32           Sec. 56.305.  ACADEMIC PERFORMANCE REQUIREMENTS.  (a)  After
2-33     initially qualifying for a Texas Hope grant, a person may continue
2-34     to receive a Texas Hope grant during each semester or term in which
2-35     the person is enrolled at an eligible institution only if the
2-36     person:
2-37                 (1)  meets financial need requirements as defined by
2-38     the coordinating board;
2-39                 (2)  is enrolled in an undergraduate degree or
2-40     certificate program at an eligible institution;
2-41                 (3)  is enrolled for at least three-fourths of a full
2-42     course load in the person's undergraduate degree or certificate
2-43     program;
2-44                 (4)  makes satisfactory academic progress toward an
2-45     undergraduate degree or certificate; and
2-46                 (5)  complies with any other requirement adopted by the
2-47     coordinating board.
2-48           (b)  If a person fails to meet any of the requirements of
2-49     Subsection (a) after the completion of any semester or term, the
2-50     person may not receive a Texas Hope grant under this subchapter
2-51     during the next semester or term in which the person enrolls.  A
2-52     person may become eligible to receive a grant in a subsequent
2-53     semester or term if the person:
2-54                 (1)  completes a semester or term during which the
2-55     student is not eligible for a grant; and
2-56                 (2)  meets all the requirements of Subsection (a).
2-57           (c)  For purposes of this section, a person makes
2-58     satisfactory academic progress toward an undergraduate degree or
2-59     certificate if the person:
2-60                 (1)  completed at least nine semester credit hours or
2-61     75 percent of a full course load in the person's most recent
2-62     semester or term; and
2-63                 (2)  has earned an overall grade point average of at
2-64     least 2.5 on a four-point scale or the equivalent on course work
2-65     previously attempted at institutions of higher education.
2-66           Sec. 56.306.  GRANT USE.  (a)  A person receiving a Texas
2-67     Hope grant may use the money for any usual and customary cost of
2-68     attendance at an institution incurred by the student if the student
2-69     is a first semester college student or the student maintains a 3.0
 3-1     grade point average or greater.  The institution may disburse all
 3-2     or part of the proceeds of a grant to an eligible person only if
 3-3     the tuition and required fees incurred by the person at the
 3-4     institution have been paid.
 3-5           (b)  A person receiving a Texas Hope grant must use the money
 3-6     for payment of tuition, fees, or textbooks at an institution if the
 3-7     student maintains a grade point average of 2.5 or greater but less
 3-8     than 3.0.
 3-9           Sec. 56.307.  GRANT AMOUNT.  (a)  The amount of a Texas Hope
3-10     grant for a semester or term for a person enrolled in an eligible
3-11     institution other than an institution covered by Subsection (b),
3-12     (c), or (d) is the amount per semester hour determined by the
3-13     coordinating board as the average statewide amount of tuition and
3-14     required fees per semester hour that a resident student enrolled
3-15     full-time in a baccalaureate degree program would be charged for
3-16     that semester or term at general academic institutions for the
3-17     number of semester hours the person receiving the grant is
3-18     enrolled.
3-19           (b)  The amount of a Texas Hope grant for a student enrolled
3-20     at a private or independent institution of higher education is the
3-21     amount determined by the coordinating board as the average
3-22     statewide amount of tuition and required fees per semester hour
3-23     that a resident student enrolled full-time in a baccalaureate
3-24     degree program would be charged for that semester or term at
3-25     general academic institutions for the number of semester hours the
3-26     person receiving the grant is enrolled.
3-27           (c)  The amount of a Texas Hope grant for a student enrolled
3-28     at a public technical institute is the amount determined by the
3-29     coordinating board as the average statewide amount of tuition and
3-30     required fees per semester hour that a resident student enrolled
3-31     full-time would be charged for that semester or term at public
3-32     technical institutes for the number of semester hours the person
3-33     receiving the grant is enrolled.
3-34           (d)  The amount of a Texas Hope grant for a student enrolled
3-35     at a public junior college is the amount per semester hour
3-36     determined by the coordinating board as the average statewide
3-37     amount of tuition and required fees per semester hour that a
3-38     student who is a resident of the junior college district and is
3-39     enrolled full-time would be charged for that semester or term at
3-40     public junior colleges for the number of semester hours the person
3-41     receiving the grant is enrolled.
3-42           (e)  The amount of a Texas Hope grant may not be reduced by
3-43     any gift aid for which the person is eligible, unless the total
3-44     amount of a person's grant plus any gift aid received exceeds the
3-45     total cost of attendance at an eligible institution.
3-46           (f)  The coordinating board shall publish, not later than
3-47     January 31 of each year, the amount of a grant per semester hour
3-48     for each type of institution covered by this section for the
3-49     academic year beginning the next fall semester.
3-50           Sec. 56.308.  NOTIFICATION OF PROGRAM TO STUDENTS AND HIGH
3-51     SCHOOLS.  (a)  The coordinating board shall distribute to each
3-52     eligible institution and to each school district a copy of the
3-53     rules adopted under this subchapter.
3-54           (b)  Each school district shall:
3-55                 (1)  notify its students of the grant program and the
3-56     eligibility requirements of the program; and
3-57                 (2)  ensure that each student's official transcript or
3-58     diploma indicates whether the student has completed or is on
3-59     schedule to complete the high school curriculum required for grant
3-60     eligibility under Section 56.304(a)(2).
3-61           (c)  The information required by Subsection (b)(2) must be
3-62     included on a student's transcript not later than the end of the
3-63     student's junior year.
3-64           Sec. 56.309.  TEACH FOR TEXAS GRANT PROGRAM.  (a)  A Teach
3-65     for Texas tuition grant is available only to a person who receives
3-66     a Texas Hope grant, applies for a grant, and is enrolled as a
3-67     junior or senior in a baccalaureate degree program if:
3-68                 (1)  the degree program is in a teaching field
3-69     certified by the commissioner of education as experiencing a
 4-1     critical shortage of teachers in this state in the year in which
 4-2     the person begins the degree program; or
 4-3                 (2)  the person agrees to teach in a public school in
 4-4     this state in a community, which is not required to be specifically
 4-5     designated at the time the person receives the grant, certified by
 4-6     the commissioner of education as experiencing a critical shortage
 4-7     of teachers in any year in which the person receives a grant or in
 4-8     any subsequent year in which the person fulfills the teaching
 4-9     obligation.
4-10           (b)  To receive a Teach for Texas tuition grant, a person
4-11     must agree to teach full-time for five years at the preschool,
4-12     primary, or secondary level in a public school in this state in the
4-13     person's chosen critical field or in a community experiencing a
4-14     critical teacher shortage, as applicable.
4-15           (c)  The amount of a grant under this section is equal to
4-16     double the amount of a grant authorized under Section 56.307(b) for
4-17     the same semester or term.  A person may receive both a Texas Hope
4-18     grant and a grant under this section for the same semester or term.
4-19           (d)  The person must begin fulfilling the teaching obligation
4-20     of this section not later than the 18th month after the person
4-21     completes the degree program and any related courses required for
4-22     teacher certification, unless the coordinating board grants the
4-23     person additional time to begin fulfilling the teaching obligation.
4-24     The period within which the person must complete the teaching
4-25     obligation is six years after the date of beginning to fulfill the
4-26     teaching obligation.  The coordinating board shall grant a person
4-27     additional time to complete the teaching obligation for good cause.
4-28           (e)  The coordinating board shall cancel a person's teaching
4-29     obligation if the board determines that the person:
4-30                 (1)  has become permanently disabled so that the person
4-31     is not able to teach; or
4-32                 (2)  has died.
4-33           (f)  The coordinating board shall require a person who
4-34     receives a grant under this section to sign a promissory note
4-35     acknowledging the conditional nature of the grant and promising to
4-36     repay the amount of the grant plus applicable interest and
4-37     reasonable collection costs if the person does not satisfy the
4-38     applicable conditions.  The board shall determine the terms of the
4-39     promissory note.
4-40           (g)  The amount required to be repaid by a person who fails
4-41     to complete the teaching obligation of the person's grant shall be
4-42     determined in proportion to the portion of the teaching obligation
4-43     that the person has satisfied.
4-44           (h)  A person receiving a Teach for Texas tuition grant is
4-45     considered to have failed to satisfy the conditions of the grant,
4-46     and the grant automatically becomes a loan, if the person fails to
4-47     remain enrolled in or to make steady progress in the degree program
4-48     for which the grant was made without good cause as determined by
4-49     the coordinating board or the person fails to become certified as a
4-50     teacher within 18 months of receiving a degree.
4-51           Sec. 56.310.  FUNDING.  (a)  The coordinating board may
4-52     accept gifts and grants from any public or private source for the
4-53     purposes of this subchapter.
4-54           (b)  The legislature may appropriate money for the purposes
4-55     of this subchapter.
4-56           SECTION 2.  Section 54.064, Education Code, is amended by
4-57     amending Subsection (a) and adding Subsection (c) to read as
4-58     follows:
4-59           (a)  A student who holds a competitive academic scholarship
4-60     of at least $1,000 for the academic year or summer for which the
4-61     student is enrolled and who is either a nonresident or a citizen of
4-62     a country other than the United States of America is entitled to
4-63     pay the fees and charges required of Texas residents without regard
4-64     to the length of time the student has resided in Texas.  The
4-65     student must compete with other students, including Texas
4-66     residents, for the academic scholarship and the academic
4-67     scholarship must be awarded by a scholarship committee officially
4-68     recognized by the administration and be approved by the Texas
4-69     Higher Education Coordinating Board under criteria developed by the
 5-1     board.
 5-2           (c)  The provisions of Subsection (a) requiring an academic
 5-3     scholarship do not apply to student athletes who meet the
 5-4     qualifications of the Americans with Disabilities Act of 1990 (42
 5-5     U.S.C. Section 12101 et seq.).
 5-6           SECTION 3.  Subsection (c), Section 54.5021, Education Code,
 5-7     is amended to read as follows:
 5-8           (c)  Not later than August 31 of each fiscal year, each
 5-9     institution of higher education that has an unobligated and
5-10     unexpended balance in its student deposit fund that exceeds 150
5-11     percent of the total deposits to that fund during that year shall
5-12     remit to the Texas Higher Education Coordinating Board the amount
5-13     of that excess.  The coordinating board shall allocate on an
5-14     equitable basis amounts received under this subsection to
5-15     institutions of higher education that do not have an excess
5-16     described by this subsection for deposit in their student deposit
5-17     fund.  The amount allocated under this subsection may be used only
5-18     for making grant [scholarship] awards under Subchapter M, Chapter
5-19     56 [to needy and deserving students under this section].
5-20           SECTION 4.  Subsection (a), Section 56.033, Education Code,
5-21     is amended to read as follows:
5-22           (a)  The governing boards of institutions of higher education
5-23     and the Texas State Technical College System shall cause to be set
5-24     aside:
5-25                 (1)  five [for the 1991-1992 academic year, not less
5-26     than nine percent nor more than 15] percent out of each resident
5-27     student's tuition charge under Section 54.051, except as provided
5-28     by Subdivision (2) [of this code as provided by the General
5-29     Appropriations  Act for the applicable academic year];
5-30                 (2)  15 percent out of each resident student's tuition
5-31     charge at a medical or dental unit under Section 54.051 [for the
5-32     1992-1993 academic year and each subsequent academic year, not less
5-33     than 15 percent nor more than 20 percent out of each resident
5-34     student's tuition charge under Section 54.051 of this code as
5-35     provided by the General Appropriations Act for the applicable
5-36     academic year; in specifying the percentage to be set aside for the
5-37     1991-1992 and 1992-1993 academic years, the legislature shall
5-38     consider the recommendations of the Select Committee on Higher
5-39     Education established by H.C.R. No. 105, Acts of the 69th
5-40     Legislature, Regular Session, 1985];
5-41                 (3)  three percent out of each nonresident student's
5-42     tuition charge under Section 54.051 [of this code];
5-43                 (4)  three [six] percent out of each resident student's
5-44     hourly tuition charge, and $1.50 out of each nonresident student's
5-45     hourly tuition charge, for academic courses at public community and
5-46     junior colleges; and
5-47                 (5)  three [six] percent of hourly tuition charges for
5-48     vocational-technical courses at public community and junior
5-49     colleges.
5-50           SECTION 5.  Subchapter C, Chapter 56, Education Code, is
5-51     amended by adding Section 56.0331 to read as follows:
5-52           Sec. 56.0331.  INTERIM SET-ASIDE RATES.  (a)  For the
5-53     academic years listed in Subsections (b) and (c), the amounts of
5-54     tuition set aside under Sections 56.033(a)(1), (4), and (5) are as
5-55     provided by this section instead of as provided by Sections
5-56     56.033(a)(1), (4), and (5).
5-57           (b)  The amount set aside under Section 56.033(a)(1) is:
5-58                 (1)  1999-2000 academic year--12.5 percent;
5-59                 (2)  2000-2001 academic year--10 percent; and
5-60                 (3)  2001-2002 academic year--7.5 percent.
5-61           (c)  The amount set aside under Sections 56.033(a)(4) and (5)
5-62     is:
5-63                 (1)  1999-2000 academic year--5 percent; and
5-64                 (2)  2000-2001 academic year--4 percent.
5-65           (d)  Subsection (c) does not affect the amount set aside out
5-66     of each nonresident student's hourly tuition charge under Section
5-67     56.033(a)(4).
5-68           (e)  This section expires September 1, 2003.
5-69           SECTION 6.  Section 56.039, Education Code, is amended to
 6-1     read as follows:
 6-2           Sec. 56.039.  FULL USE OF FUNDS.  At the end of a fiscal
 6-3     year, if the total amount of unencumbered funds that have been set
 6-4     aside under this subchapter by an institution of higher education,
 6-5     together with the total amount of unencumbered funds transferred by
 6-6     that institution to the Coordinating Board, Texas College and
 6-7     University System, exceeds 150 percent of the amount of funds set
 6-8     aside by that institution in that fiscal year, the institution
 6-9     shall transfer the excess amount to the coordinating board.  The
6-10     coordinating board shall use funds transferred under this section
6-11     to award grants under Subchapter M [scholarships as provided by law
6-12     to students at institutions other than the institution that
6-13     transferred the funds].
6-14           SECTION 7.  Section 151.423, Tax Code, is amended to read as
6-15     follows:
6-16           Sec. 151.423.  REIMBURSEMENT TO TAXPAYER FOR TAX COLLECTIONS.
6-17     A taxpayer may deduct and withhold one-half of one percent of the
6-18     amount of taxes due from the taxpayer on a timely return as
6-19     reimbursement for the cost of collecting the taxes imposed by this
6-20     chapter.  The comptroller shall provide a card with each form
6-21     distributed for the collection of taxes under this chapter.  The
6-22     card may be inserted by the taxpayer with the tax payment to
6-23     provide for contribution of all or part of the reimbursement
6-24     provided by this section for use as grants [student financial
6-25     assistance grants offered] under Subchapter M, Chapter 56,
6-26     Education Code.  If the taxpayer chooses to contribute the
6-27     reimbursement for the grants [student grants], the taxpayer shall
6-28     include the amount of the reimbursement contribution with the tax
6-29     payment.  The comptroller shall transfer money contributed under
6-30     this section for grants under Subchapter M, Chapter 56, Education
6-31     Code, [student grants] to the appropriate fund.
6-32           SECTION 8.  Sections 54.207, 54.208, and 54.216, Education
6-33     Code, are repealed.
6-34           SECTION 9.  Subchapters F, G, and J, Chapter 56, Education
6-35     Code, are repealed effective June 1, 1999.
6-36           SECTION 10.  Any money appropriated to or collected for  a
6-37     program abolished under Section 8 or 9 of this Act or that exists
6-38     in any account to support a program abolished under Section 8 or 9
6-39     of this Act, including the Texas New Horizons Scholarship Trust
6-40     Fund, is transferred to the Texas Higher Education Coordinating
6-41     Board for use in the Texas Hope Grant Program and the Teach for
6-42     Texas Grant Program.
6-43           SECTION 11.  A person receiving financial aid under
6-44     Subchapter G or J, Chapter 56, Education Code, on the effective
6-45     date of this Act may continue to receive financial aid under those
6-46     subchapters until the person is no longer eligible to receive any
6-47     financial aid under Subchapter G or J, Chapter 56, Education Code,
6-48     as appropriate, as those subchapters exist on January 1, 1999.
6-49     Funding for financial aid under this section shall come from
6-50     funding for the Texas Hope Grant Program and the Teach for Texas
6-51     Grant Program.
6-52           SECTION 12.  (a)  The Texas Higher Education Coordinating
6-53     Board shall award grants under the Texas Hope Grant Program and the
6-54     Teach for Texas Grant Program beginning with the 1999 fall
6-55     semester.
6-56           (b)  The Texas Higher Education Coordinating Board shall
6-57     adopt the rules for awarding grants under the Texas Hope Grant
6-58     Program and the Teach for Texas Grant Program not later than July
6-59     31, 1999.
6-60           (c)  The Texas Higher Education Coordinating Board may award
6-61     a grant under the Teach for Texas Grant Program to a person who has
6-62     not received a Texas Hope grant if the person meets all the other
6-63     qualifications for the award of a Teach for Texas tuition grant
6-64     under Section 56.309, Education Code, as added by this Act, and the
6-65     requirements for a Texas Hope grant under Section 56.305, Education
6-66     Code, as added by this Act.  This subsection expires September 1,
6-67     2001.
6-68           SECTION 13.  (a)  Subdivision (2), Subsection (a), Section
6-69     56.304, Education Code, as added by this Act, does not apply to a
 7-1     person if the person:
 7-2                 (1)  attended a high school that the State Board of
 7-3     Education determines did not offer all the necessary courses of the
 7-4     recommended or advanced curriculum; and
 7-5                 (2)  completed all other courses in the recommended or
 7-6     advanced curriculum offered by the high school when the person
 7-7     attended.
 7-8           (b)  This section expires September 1, 2001.
 7-9           SECTION 14.  The importance of this legislation and the
7-10     crowded condition of the calendars in both houses create an
7-11     emergency and an imperative public necessity that the
7-12     constitutional rule requiring bills to be read on three several
7-13     days in each house be suspended, and this rule is hereby suspended,
7-14     and that this Act take effect and be in force from and after its
7-15     passage, and it is so enacted.
7-16                                  * * * * *