By: Ellis, et al. S.B. No. 37
A BILL TO BE ENTITLED
AN ACT
1-1 relating to student financial aid, including the consolidation or
1-2 repeal of student aid and grant programs and the creation of grant
1-3 programs to provide financial assistance to students at
1-4 institutions of higher education who meet certain academic,
1-5 citizenship, financial need, and other requirements.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 56, Education Code, is amended by adding
1-8 Subchapter M to read as follows:
1-9 SUBCHAPTER M. TEXAS HOPE GRANT PROGRAM AND TEACH
1-10 FOR TEXAS GRANT PROGRAM
1-11 Sec. 56.301. DEFINITIONS. In this subchapter:
1-12 (1) "Coordinating board" means the Texas Higher
1-13 Education Coordinating Board.
1-14 (2) "Eligible institution" means:
1-15 (A) an institution of higher education; or
1-16 (B) a private or independent institution of
1-17 higher education.
1-18 (3) "Private or independent institution of higher
1-19 education," "public junior college," and "public technical
1-20 institute" have the meanings assigned by Section 61.003.
1-21 Sec. 56.302. PROGRAM NAME; PURPOSE. (a) The student
1-22 financial assistance program authorized by this subchapter is known
1-23 as the Texas Hope Grant Program, and an individual grant awarded
1-24 under this subchapter is known as a Texas Hope grant.
2-1 (b) The purpose of this subchapter is to provide a grant of
2-2 money to enable qualified students to attend public and private
2-3 institutions of higher education in this state.
2-4 Sec. 56.303. ADMINISTRATION OF PROGRAMS. (a) The
2-5 coordinating board shall administer the Texas Hope Grant Program
2-6 and the Teach for Texas Grant Program and shall adopt any rules
2-7 necessary to implement the programs or this subchapter.
2-8 (b) The coordinating board shall adopt rules to provide a
2-9 Texas Hope grant to an eligible student enrolled in an eligible
2-10 institution of higher education in the most efficient manner
2-11 possible.
2-12 (c) The total amount of Texas Hope grants awarded may not
2-13 exceed the amount available for the program from appropriations,
2-14 gifts, grants, or other funds.
2-15 (d) In determining who should receive a Texas Hope grant,
2-16 the coordinating board shall give highest priority to awarding
2-17 grants to students who demonstrate the greatest financial need.
2-18 Sec. 56.304. ELIGIBLE PERSON. (a) To be eligible initially
2-19 for a Texas Hope grant, a person must:
2-20 (1) be a resident of this state as determined by
2-21 coordinating board rules;
2-22 (2) have graduated from a public high school in this
2-23 state not earlier than the 1998-1999 school year and have completed
2-24 the recommended or advanced high school curriculum established
2-25 under Section 28.002 or 28.025;
2-26 (3) meet financial need requirements as defined by the
3-1 coordinating board;
3-2 (4) be from a low or middle income family, as
3-3 determined by the coordinating board;
3-4 (5) be enrolled in an undergraduate degree or
3-5 certificate program at an eligible institution;
3-6 (6) enroll for at least three-fourths of a full course
3-7 load as an entering freshman in an undergraduate degree or
3-8 certificate program not later than the 16th month after the month
3-9 of the person's graduation from a high school in this state;
3-10 (7) have applied for any available financial aid or
3-11 assistance; and
3-12 (8) comply with any other requirement adopted by the
3-13 coordinating board under this subchapter.
3-14 (b) A person is not eligible to receive a Texas Hope grant
3-15 if the person has been granted a baccalaureate degree.
3-16 (c) A person may not receive a Texas Hope grant for more
3-17 than 150 semester credit hours or the equivalent.
3-18 (d) A person's eligibility for a Texas Hope grant ends on
3-19 the sixth anniversary of the person's initial enrollment in an
3-20 eligible institution.
3-21 (e) A person is not eligible to receive a Texas Hope grant
3-22 if the person has been convicted of a felony, a crime involving
3-23 moral turpitude, or an offense under Chapter 481, Health and Safety
3-24 Code (Texas Controlled Substances Act), or under the law of any
3-25 other jurisdiction involving a controlled substance as defined by
3-26 Chapter 481, Health and Safety Code, unless the person has met the
4-1 other applicable eligibility requirements under this subchapter and
4-2 has:
4-3 (1) received a certificate of discharge by the Texas
4-4 Department of Criminal Justice or a correctional facility or
4-5 completed a period of probation ordered by a court, and at least
4-6 two years have elapsed from the date of the receipt or completion;
4-7 or
4-8 (2) been pardoned, had the record of the offense
4-9 expunged from the person's record, or otherwise been released from
4-10 the resulting ineligibility to receive a Texas Hope grant.
4-11 Sec. 56.305. ACADEMIC PERFORMANCE REQUIREMENTS. (a) After
4-12 initially qualifying for a Texas Hope grant, a person may continue
4-13 to receive a Texas Hope grant during each semester or term in which
4-14 the person is enrolled at an eligible institution only if the
4-15 person:
4-16 (1) meets financial need requirements as defined by
4-17 the coordinating board;
4-18 (2) is enrolled in an undergraduate degree or
4-19 certificate program at an eligible institution;
4-20 (3) is enrolled for at least three-fourths of a full
4-21 course load in the person's undergraduate degree or certificate
4-22 program;
4-23 (4) makes satisfactory academic progress toward an
4-24 undergraduate degree or certificate; and
4-25 (5) complies with any other requirement adopted by the
4-26 coordinating board.
5-1 (b) If a person fails to meet any of the requirements of
5-2 Subsection (a) after the completion of any semester or term, the
5-3 person may not receive a Texas Hope grant under this subchapter
5-4 during the next semester or term in which the person enrolls. A
5-5 person may become eligible to receive a grant in a subsequent
5-6 semester or term if the person:
5-7 (1) completes a semester or term during which the
5-8 student is not eligible for a grant; and
5-9 (2) meets all the requirements of Subsection (a).
5-10 (c) For purposes of this section, a person makes
5-11 satisfactory academic progress toward an undergraduate degree or
5-12 certificate if the person:
5-13 (1) completed at least nine semester credit hours or
5-14 75 percent of a full course load in the person's most recent
5-15 semester or term; and
5-16 (2) has earned an overall grade point average of at
5-17 least 2.5 on a four-point scale or the equivalent on course work
5-18 previously attempted at institutions of higher education.
5-19 Sec. 56.306. GRANT USE. (a) A person receiving a Texas
5-20 Hope grant may use the money for any usual and customary cost of
5-21 attendance at an institution incurred by the student if the student
5-22 is a first semester college student or the student maintains a 3.0
5-23 grade point average or greater. The institution may disburse all
5-24 or part of the proceeds of a grant to an eligible person only if
5-25 the tuition and required fees incurred by the person at the
5-26 institution have been paid.
6-1 (b) A person receiving a Texas Hope grant must use the money
6-2 for payment of tuition, fees, or textbooks at an institution if the
6-3 student maintains a grade point average of 2.5 or greater but less
6-4 than 3.0.
6-5 Sec. 56.307. GRANT AMOUNT. (a) The amount of a Texas Hope
6-6 grant for a semester or term for a person enrolled in an eligible
6-7 institution other than an institution covered by Subsection (b),
6-8 (c), or (d) is the amount per semester hour determined by the
6-9 coordinating board as the average statewide amount of tuition and
6-10 required fees per semester hour that a resident student enrolled
6-11 full-time in a baccalaureate degree program would be charged for
6-12 that semester or term at general academic institutions for the
6-13 number of semester hours the person receiving the grant is
6-14 enrolled.
6-15 (b) The amount of a Texas Hope grant for a student enrolled
6-16 at a private or independent institution of higher education is the
6-17 amount determined by the coordinating board as the average
6-18 statewide amount of tuition and required fees per semester hour
6-19 that a resident student enrolled full-time in a baccalaureate
6-20 degree program would be charged for that semester or term at
6-21 general academic institutions for the number of semester hours the
6-22 person receiving the grant is enrolled.
6-23 (c) The amount of a Texas Hope grant for a student enrolled
6-24 at a public technical institute is the amount determined by the
6-25 coordinating board as the average statewide amount of tuition and
6-26 required fees per semester hour that a resident student enrolled
7-1 full-time would be charged for that semester or term at public
7-2 technical institutes for the number of semester hours the person
7-3 receiving the grant is enrolled.
7-4 (d) The amount of a Texas Hope grant for a student enrolled
7-5 at a public junior college is the amount per semester hour
7-6 determined by the coordinating board as the average statewide
7-7 amount of tuition and required fees per semester hour that a
7-8 student who is a resident of the junior college district and is
7-9 enrolled full-time would be charged for that semester or term at
7-10 public junior colleges for the number of semester hours the person
7-11 receiving the grant is enrolled.
7-12 (e) The amount of a Texas Hope grant may not be reduced by
7-13 any gift aid for which the person is eligible, unless the total
7-14 amount of a person's grant plus any gift aid received exceeds the
7-15 total cost of attendance at an eligible institution.
7-16 (f) The coordinating board shall publish, not later than
7-17 January 31 of each year, the amount of a grant per semester hour
7-18 for each type of institution covered by this section for the
7-19 academic year beginning the next fall semester.
7-20 Sec. 56.308. NOTIFICATION OF PROGRAM TO STUDENTS AND HIGH
7-21 SCHOOLS. (a) The coordinating board shall distribute to each
7-22 eligible institution and to each school district a copy of the
7-23 rules adopted under this subchapter.
7-24 (b) Each school district shall:
7-25 (1) notify its students of the grant program and the
7-26 eligibility requirements of the program; and
8-1 (2) ensure that each student's official transcript or
8-2 diploma indicates whether the student has completed or is on
8-3 schedule to complete the high school curriculum required for grant
8-4 eligibility under Section 56.304(a)(2).
8-5 (c) The information required by Subsection (b)(2) must be
8-6 included on a student's transcript not later than the end of the
8-7 student's junior year.
8-8 Sec. 56.309. TEACH FOR TEXAS GRANT PROGRAM. (a) A Teach
8-9 for Texas tuition grant is available only to a person who receives
8-10 a Texas Hope grant, applies for a grant, and is enrolled as a
8-11 junior or senior in a baccalaureate degree program if:
8-12 (1) the degree program is in a teaching field
8-13 certified by the commissioner of education as experiencing a
8-14 critical shortage of teachers in this state in the year in which
8-15 the person begins the degree program; or
8-16 (2) the person agrees to teach in a public school in
8-17 this state in a community, which is not required to be specifically
8-18 designated at the time the person receives the grant, certified by
8-19 the commissioner of education as experiencing a critical shortage
8-20 of teachers in any year in which the person receives a grant or in
8-21 any subsequent year in which the person fulfills the teaching
8-22 obligation.
8-23 (b) To receive a Teach for Texas tuition grant, a person
8-24 must agree to teach full-time for five years at the preschool,
8-25 primary, or secondary level in a public school in this state in the
8-26 person's chosen critical field or in a community experiencing a
9-1 critical teacher shortage, as applicable.
9-2 (c) The amount of a grant under this section is equal to
9-3 double the amount of a grant authorized under Section 56.307(b) for
9-4 the same semester or term. A person may receive both a Texas Hope
9-5 grant and a grant under this section for the same semester or term.
9-6 (d) The person must begin fulfilling the teaching obligation
9-7 of this section not later than the 18th month after the person
9-8 completes the degree program and any related courses required for
9-9 teacher certification, unless the coordinating board grants the
9-10 person additional time to begin fulfilling the teaching obligation.
9-11 The period within which the person must complete the teaching
9-12 obligation is six years after the date of beginning to fulfill the
9-13 teaching obligation. The coordinating board shall grant a person
9-14 additional time to complete the teaching obligation for good cause.
9-15 (e) The coordinating board shall cancel a person's teaching
9-16 obligation if the board determines that the person:
9-17 (1) has become permanently disabled so that the person
9-18 is not able to teach; or
9-19 (2) has died.
9-20 (f) The coordinating board shall require a person who
9-21 receives a grant under this section to sign a promissory note
9-22 acknowledging the conditional nature of the grant and promising to
9-23 repay the amount of the grant plus applicable interest and
9-24 reasonable collection costs if the person does not satisfy the
9-25 applicable conditions. The board shall determine the terms of the
9-26 promissory note.
10-1 (g) The amount required to be repaid by a person who fails
10-2 to complete the teaching obligation of the person's grant shall be
10-3 determined in proportion to the portion of the teaching obligation
10-4 that the person has satisfied.
10-5 (h) A person receiving a Teach for Texas tuition grant is
10-6 considered to have failed to satisfy the conditions of the grant,
10-7 and the grant automatically becomes a loan, if the person fails to
10-8 remain enrolled in or to make steady progress in the degree program
10-9 for which the grant was made without good cause as determined by
10-10 the coordinating board or the person fails to become certified as a
10-11 teacher within 18 months of receiving a degree.
10-12 Sec. 56.310. FUNDING. (a) The coordinating board may
10-13 accept gifts and grants from any public or private source for the
10-14 purposes of this subchapter.
10-15 (b) The legislature may appropriate money for the purposes
10-16 of this subchapter.
10-17 SECTION 2. Section 54.064, Education Code, is amended by
10-18 amending Subsection (a) and adding Subsection (c) to read as
10-19 follows:
10-20 (a) A student who holds a competitive academic scholarship
10-21 of at least $1,000 for the academic year or summer for which the
10-22 student is enrolled and who is either a nonresident or a citizen of
10-23 a country other than the United States of America is entitled to
10-24 pay the fees and charges required of Texas residents without regard
10-25 to the length of time the student has resided in Texas. The
10-26 student must compete with other students, including Texas
11-1 residents, for the academic scholarship and the academic
11-2 scholarship must be awarded by a scholarship committee officially
11-3 recognized by the administration and be approved by the Texas
11-4 Higher Education Coordinating Board under criteria developed by the
11-5 board.
11-6 (c) The provisions of Subsection (a) requiring an academic
11-7 scholarship do not apply to student athletes who meet the
11-8 qualifications of the Americans with Disabilities Act of 1990 (42
11-9 U.S.C. Section 12101 et seq.).
11-10 SECTION 3. Subsection (c), Section 54.5021, Education Code,
11-11 is amended to read as follows:
11-12 (c) Not later than August 31 of each fiscal year, each
11-13 institution of higher education that has an unobligated and
11-14 unexpended balance in its student deposit fund that exceeds 150
11-15 percent of the total deposits to that fund during that year shall
11-16 remit to the Texas Higher Education Coordinating Board the amount
11-17 of that excess. The coordinating board shall allocate on an
11-18 equitable basis amounts received under this subsection to
11-19 institutions of higher education that do not have an excess
11-20 described by this subsection for deposit in their student deposit
11-21 fund. The amount allocated under this subsection may be used only
11-22 for making grant [scholarship] awards under Subchapter M, Chapter
11-23 56 [to needy and deserving students under this section].
11-24 SECTION 4. Subsection (a), Section 56.033, Education Code,
11-25 is amended to read as follows:
11-26 (a) The governing boards of institutions of higher education
12-1 and the Texas State Technical College System shall cause to be set
12-2 aside:
12-3 (1) five [for the 1991-1992 academic year, not less
12-4 than nine percent nor more than 15] percent out of each resident
12-5 student's tuition charge under Section 54.051, except as provided
12-6 by Subdivision (2) [of this code as provided by the General
12-7 Appropriations Act for the applicable academic year];
12-8 (2) 15 percent out of each resident student's tuition
12-9 charge at a medical or dental unit under Section 54.051 [for the
12-10 1992-1993 academic year and each subsequent academic year, not less
12-11 than 15 percent nor more than 20 percent out of each resident
12-12 student's tuition charge under Section 54.051 of this code as
12-13 provided by the General Appropriations Act for the applicable
12-14 academic year; in specifying the percentage to be set aside for the
12-15 1991-1992 and 1992-1993 academic years, the legislature shall
12-16 consider the recommendations of the Select Committee on Higher
12-17 Education established by H.C.R. No. 105, Acts of the 69th
12-18 Legislature, Regular Session, 1985];
12-19 (3) three percent out of each nonresident student's
12-20 tuition charge under Section 54.051 [of this code];
12-21 (4) three [six] percent out of each resident student's
12-22 hourly tuition charge, and $1.50 out of each nonresident student's
12-23 hourly tuition charge, for academic courses at public community and
12-24 junior colleges; and
12-25 (5) three [six] percent of hourly tuition charges for
12-26 vocational-technical courses at public community and junior
13-1 colleges.
13-2 SECTION 5. Subchapter C, Chapter 56, Education Code, is
13-3 amended by adding Section 56.0331 to read as follows:
13-4 Sec. 56.0331. INTERIM SET-ASIDE RATES. (a) For the
13-5 academic years listed in Subsections (b) and (c), the amounts of
13-6 tuition set aside under Sections 56.033(a)(1), (4), and (5) are as
13-7 provided by this section instead of as provided by Sections
13-8 56.033(a)(1), (4), and (5).
13-9 (b) The amount set aside under Section 56.033(a)(1) is:
13-10 (1) 1999-2000 academic year--12.5 percent;
13-11 (2) 2000-2001 academic year--10 percent; and
13-12 (3) 2001-2002 academic year--7.5 percent.
13-13 (c) The amount set aside under Sections 56.033(a)(4) and (5)
13-14 is:
13-15 (1) 1999-2000 academic year--5 percent; and
13-16 (2) 2000-2001 academic year--4 percent.
13-17 (d) Subsection (c) does not affect the amount set aside out
13-18 of each nonresident student's hourly tuition charge under Section
13-19 56.033(a)(4).
13-20 (e) This section expires September 1, 2003.
13-21 SECTION 6. Section 56.039, Education Code, is amended to
13-22 read as follows:
13-23 Sec. 56.039. FULL USE OF FUNDS. At the end of a fiscal
13-24 year, if the total amount of unencumbered funds that have been set
13-25 aside under this subchapter by an institution of higher education,
13-26 together with the total amount of unencumbered funds transferred by
14-1 that institution to the Coordinating Board, Texas College and
14-2 University System, exceeds 150 percent of the amount of funds set
14-3 aside by that institution in that fiscal year, the institution
14-4 shall transfer the excess amount to the coordinating board. The
14-5 coordinating board shall use funds transferred under this section
14-6 to award grants under Subchapter M [scholarships as provided by law
14-7 to students at institutions other than the institution that
14-8 transferred the funds].
14-9 SECTION 7. Section 151.423, Tax Code, is amended to read as
14-10 follows:
14-11 Sec. 151.423. REIMBURSEMENT TO TAXPAYER FOR TAX COLLECTIONS.
14-12 A taxpayer may deduct and withhold one-half of one percent of the
14-13 amount of taxes due from the taxpayer on a timely return as
14-14 reimbursement for the cost of collecting the taxes imposed by this
14-15 chapter. The comptroller shall provide a card with each form
14-16 distributed for the collection of taxes under this chapter. The
14-17 card may be inserted by the taxpayer with the tax payment to
14-18 provide for contribution of all or part of the reimbursement
14-19 provided by this section for use as grants [student financial
14-20 assistance grants offered] under Subchapter M, Chapter 56,
14-21 Education Code. If the taxpayer chooses to contribute the
14-22 reimbursement for the grants [student grants], the taxpayer shall
14-23 include the amount of the reimbursement contribution with the tax
14-24 payment. The comptroller shall transfer money contributed under
14-25 this section for grants under Subchapter M, Chapter 56, Education
14-26 Code, [student grants] to the appropriate fund.
15-1 SECTION 8. Sections 54.207, 54.208, and 54.216, Education
15-2 Code, are repealed.
15-3 SECTION 9. Subchapters F, G, and J, Chapter 56, Education
15-4 Code, are repealed effective June 1, 1999.
15-5 SECTION 10. Any money appropriated to or collected for a
15-6 program abolished under Section 9 or 10 of this Act or that exists
15-7 in any account to support a program abolished under Section 9 or 10
15-8 of this Act, including the Texas New Horizons Scholarship Trust
15-9 Fund, is transferred to the Texas Higher Education Coordinating
15-10 Board for use in the Texas Hope Grant Program and the Teach for
15-11 Texas Grant Program.
15-12 SECTION 11. (a) Except as provided by Subsection (b) of
15-13 this section, the change in law made by this Act to Section 54.203,
15-14 Education Code, applies only to a person who enrolls in an
15-15 institution of higher education on or after the effective date of
15-16 this Act.
15-17 (b) A person enrolled in an institution of higher education
15-18 who received an exemption under Section 54.203, Education Code,
15-19 before the effective date of this Act is covered by the law in
15-20 effect January 1, 1999, and that former law is continued in effect
15-21 for that purpose until the fourth anniversary of the effective date
15-22 of this Act. After that fourth anniversary, the person is subject
15-23 to Section 54.203, Education Code, in the same manner as any other
15-24 person.
15-25 SECTION 12. A person receiving financial aid under
15-26 Subchapter G or J, Chapter 56, Education Code, on the effective
16-1 date of this Act may continue to receive financial aid under those
16-2 subchapters until the person is no longer eligible to receive any
16-3 financial aid under Subchapter G or J, Chapter 56, Education Code,
16-4 as appropriate, as those subchapters exist on January 1, 1999.
16-5 Funding for financial aid under this section shall come from
16-6 funding for the Texas Hope Grant Program and the Teach for Texas
16-7 Grant Program.
16-8 SECTION 13. (a) The Texas Higher Education Coordinating
16-9 Board shall award grants under the Texas Hope Grant Program and the
16-10 Teach for Texas Grant Program beginning with the 1999 fall
16-11 semester.
16-12 (b) The Texas Higher Education Coordinating Board shall
16-13 adopt the rules for awarding grants under the Texas Hope Grant
16-14 Program and the Teach for Texas Grant Program not later than July
16-15 31, 1999.
16-16 (c) The Texas Higher Education Coordinating Board may award
16-17 a grant under the Teach for Texas Grant Program to a person who has
16-18 not received a Texas Hope grant if the person meets all the other
16-19 qualifications for the award of a Teach for Texas tuition grant
16-20 under Section 56.309, Education Code, as added by this Act, and the
16-21 requirements for a Texas Hope grant under Section 56.305, Education
16-22 Code, as added by this Act. This subsection expires September 1,
16-23 2001.
16-24 SECTION 14. (a) Subdivision (2), Subsection (a), Section
16-25 56.304, Education Code, as added by this Act, does not apply to a
16-26 person if the person:
17-1 (1) attended a high school that the State Board of
17-2 Education determines did not offer all the necessary courses of the
17-3 recommended or advanced curriculum; and
17-4 (2) completed all other courses in the recommended or
17-5 advanced curriculum offered by the high school when the person
17-6 attended.
17-7 (b) This section expires September 1, 2001.
17-8 SECTION 15. The importance of this legislation and the
17-9 crowded condition of the calendars in both houses create an
17-10 emergency and an imperative public necessity that the
17-11 constitutional rule requiring bills to be read on three several
17-12 days in each house be suspended, and this rule is hereby suspended,
17-13 and that this Act take effect and be in force from and after its
17-14 passage, and it is so enacted.