SRC-CTC S.B. 1596 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1596
By: Bivins
Education
6/11/2001
Enrolled


DIGEST AND PURPOSE 

In 1999, the 76th Legislature established the TEXAS Grant program to
provide grant money to enable certain well-prepared students to attend
public and private institutions of higher education.  While students at
community and technical colleges make up 46 percent of higher education
enrollment, approximately 30 percent of TEXAS Grant awards were made to
these students.  S.B. 1596 established the TEXAS Grant II program to
provide grant money to community and technical college students who are not
eligible for the TEXAS Grant program. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Higher Education
Coordinating Board in SECTION 1 (Sections 56.353 and 56.357, Education
Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 56, Education Code, by adding Subchapter O, as
follows: 

SUBCHAPTER O.  TOWARD EXCELLENCE, ACCESS, & SUCCESS
(TEXAS) GRANT II PROGRAM

Sec. 56.351.  DEFINITIONS.  Defines "coordinating board," "eligible
institution," "public junior college," "public technical institute," and
"public state college." 

Sec. 56.352.  PROGRAM NAME.  Provides that the student financial assistance
program authorized by this subchapter is known as the Toward Excellence,
Access, & Success (TEXAS) grant II program (program), and an individual
grant awarded under this subchapter is known as a TEXAS grant II (grant).
Sets forth the purpose of this subchapter. 

Sec. 56.353.  ADMINISTRATION OF PROGRAM.  Requires the Texas Higher
Education Coordinating Board (board) to administer the program and adopt
any rules necessary to implement the program or this subchapter.  Requires
the board to consult with the student financial aid officers of eligible
institutions in developing the rules.  Requires the board to adopt rules to
provide a grant to an eligible student enrolled in an eligible institution
in a manner consistent with the administration of federal student financial
aid programs.  Prohibits the total amount of grants awarded from exceeding
the amount available for the program from certain funds.  Requires the
board and eligible institutions, in determining who should receive a grant,
to give highest priority to awarding grants to students who demonstrate the
greatest financial need. 

Sec. 56.354.  INITIAL ELIGIBILITY FOR GRANT.  Sets forth the eligibility
requirements for a grant.  Provides that a person who has been convicted of
a felony or an offense under Chapter 481 (Texas Controlled Substances Act),
Health and Safety Code, or under the law of another jurisdiction involving
a controlled substance as defined by Chapter 481, Health and Safety Code,
is not eligible to receive a grant unless certain conditions are met.
Provides that a person who has been granted an associate or baccalaureate
degree is not eligible to receive a  grant.  Prohibits a person from
receiving a grant for more than 75 semester credit hours, or the
equivalent.  Prohibits a person from receiving a grant if the person is
eligible for a TEXAS grant.  Provides that a person's eligibility for a
grant ends on the fourth anniversary of the initial award of a grant to the
person and the person's enrollment in an eligible institution. 

Sec. 56.355.  CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE REQUIREMENTS.
(a) Authorizes a person, after initially qualifying for a grant, to
continue to receive a grant during each semester or term in which the
person is enrolled at an eligible institution under certain circumstances.

(b) Provides that a person who has been convicted of a felony or an offense
under Chapter 481, Health and Safety Code, or under the law of another
jurisdiction involving a controlled substance as defined by Chapter 481,
Health and Safety Code, is not eligible to continue receiving a grant
unless certain conditions are met.   

(c) Prohibits a person  from receiving a grant during the next semester or
term in which the person enrolls if the person fails to meet any
requirements of Subsection (a) after the completion of any semester or
term.  Authorizes a person to become eligible for a grant in a subsequent
semester or term under certain conditions. 

(d) Sets forth, for the purposes of this section, the standards for a
person considered to be making satisfactory academic progress toward an
associate degree or certificate. 

(e) Provides that a person who is eligible to receive a grant continues to
remain eligible to receive a grant if the person enrolls in or transfers to
another eligible institution. 

Sec. 56.356.  GRANT USE.  Authorizes a person receiving a grant to use the
money to pay any usual and customary cost of attendance at an institution
of higher education incurred by the student.  Authorizes the institution to
disburse all or part of the proceeds of a grant to an eligible person only
if the tuition and required fees incurred by the person at the institution
have been paid. 

Sec. 56.357.  GRANT AMOUNT.  (a) Sets forth the manner in which the amount
of a grant is to be determined.   

(b) Authorizes the board to adopt rules that allow the board to increase or
decrease, in proportion to the number of semester hours in which a student
is enrolled, the amount of a grant awarded under this section to a student
who is enrolled in a number of semester hours in excess of or below the
number of semester hours described in Section 56.354(a)(4) or 56.355(a)(3). 

(c) Prohibits the amount of a grant from being reduced by any gift aid for
which the person receiving the grant is eligible unless the total amount of
a person's grant plus any gift aid received exceeds the total cost of
attendance at an eligible institution. 

(d) Requires the board, not later than January 31 of each year, to publish
the amount of each grant established by the board for the academic year
beginning the next fall semester. 

(e) Prohibits the total amount of grants that a student may receive in an
academic year under this subchapter and under Section 61.221 from exceeding
the maximum amount under Section 61.227. 

  (f) Prohibits an eligible institution from performing certain actions.

 (g) Authorizes an institution to use other available sources of financial
aid, other than a loan or a Pell grant, to cover any difference in the
amount of a grant and the actual amount of tuition and required fees at the
institution. 

SECTION 2.  (a) Requires the board and eligible institutions to award
scholarships under the TEXAS grant II program established under Chapter
56O, Education Code, as added by this Act, beginning with the 2001 fall
semester. 

(b) Requires the board, not later than July 31, 2001, to adopt the initial
rules for awarding grants under the TEXAS grant II program established
under Chapter 56O, Education Code, as added by this Act. 

SECTION 3.  Effective date: upon passage or September 1, 2001.