By Giddings, Brown of Brazos                          H.B. No. 2276
         77R6799 JSA-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to tuition rebate incentives for persons who complete
 1-3     certain degree and certificate programs without excessive credit
 1-4     hours.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1. Section 54.0065, Education Code, is amended to
 1-7     read as follows:
 1-8           Sec. 54.0065.  TUITION REBATE FOR CERTAIN UNDERGRADUATES. (a)
 1-9     In this section:
1-10                 (1)  "Coordinating board" means the Texas Higher
1-11     Education Coordinating Board.
1-12                 (2)  "General academic teaching institution," "public
1-13     junior college," and "public technical institute" have the meanings
1-14     assigned by Section 61.003.
1-15           (b)  A qualified student at a general academic teaching
1-16     institution is eligible for a rebate of a portion of the
1-17     undergraduate tuition the student has paid if the student:
1-18                 (1)  is awarded a baccalaureate degree from the [a
1-19     general academic teaching] institution; and
1-20                 (2)  has attempted no more than three hours in excess
1-21     of the minimum number of semester credit hours required to complete
1-22     the degree, including transfer credits and course credit earned
1-23     exclusively by examination.
1-24           (c)  A qualified student at a public junior college, public
 2-1     technical institute, or general academic teaching institution that
 2-2     offers only freshman-level and sophomore-level courses is eligible
 2-3     for a rebate of a portion of the undergraduate tuition the student
 2-4     has paid if the student:
 2-5                 (1)  is awarded an associate degree or other degree or
 2-6     certificate in a program that requires at least 60 semester credit
 2-7     hours; and
 2-8                 (2)  has attempted no more than three hours in excess
 2-9     of the minimum number of semester credit hours required to complete
2-10     the degree or certificate, including transfer credits and course
2-11     credit earned exclusively by examination.
2-12           (d) [(b)]  The amount of tuition to be rebated to a student
2-13     under Subsection (b) [this section] is $1,000 and the amount of
2-14     tuition to be rebated to a student under Subsection (c) is $500,
2-15     unless the total amount of undergraduate tuition paid by the
2-16     student to the institution of higher education awarding the degree
2-17     or certificate was less than that amount [$1,000], in which event
2-18     the amount of tuition to be rebated is an amount equal to the
2-19     amount of undergraduate tuition paid by the student to the
2-20     institution.  However, a student who paid the institution awarding
2-21     the degree or certificate an amount of undergraduate tuition less
2-22     than the applicable rebate amount specified by this subsection
2-23     [$1,000] may qualify for an increase in the amount of the rebate,
2-24     not to exceed a total rebate in the applicable amount specified by
2-25     this subsection [of $1,000], for any amount of undergraduate
2-26     tuition the student paid to other institutions of higher education
2-27     by providing the institution with proof of the total amount of that
 3-1     tuition paid to other institutions of higher education.
 3-2           (e) [(c)]  A student who has transferred from another
 3-3     institution of higher education shall provide the institution
 3-4     awarding the degree or certificate an official transcript from each
 3-5     institution attended by the student in order that the total number
 3-6     of hours attempted by the student can be verified.
 3-7           (f) [(d)]  To qualify for a rebate under this section, the
 3-8     student must have been a resident of this state and entitled to pay
 3-9     tuition at the rate provided by this chapter for a resident student
3-10     at all times while pursuing the degree or certificate.
3-11           (g) [(e)]  All institutions of higher education shall notify
3-12     each first-time freshman student of the tuition rebate program
3-13     under this section.
3-14           (h) [(f)]  The institution awarding the degree or certificate
3-15     shall pay the rebate under this section from local funds.
3-16           (i) [(g)]  If a student entitled to a rebate under this
3-17     section has an outstanding student loan, including an emergency
3-18     loan, owed or guaranteed by this state, including the Texas
3-19     Guaranteed Student Loan Corporation, the institution shall apply
3-20     the amount of the rebate to the student's loan.  If a student has
3-21     more than one outstanding loan, the institution shall apply the
3-22     amount of the rebate to the loans as directed by the student or, if
3-23     the student fails to provide timely instructions on the application
3-24     of the amount, the institution shall apply the amount of the rebate
3-25     to the loans according to priorities established by the
3-26     coordinating board.  If the amount of the rebate exceeds the amount
3-27     of the loan indebtedness, the institution shall pay the student the
 4-1     excess amount.
 4-2           (j) [(h)]  The legislature shall account in the General
 4-3     Appropriations Act for the rebates authorized by this section to an
 4-4     institution other than a public junior college in a way that
 4-5     provides a corresponding increase in the general revenue funds
 4-6     appropriated to the institution.  It is the intent of the
 4-7     legislature that rebates authorized by this section shall be
 4-8     financed by savings to the state resulting from reductions in the
 4-9     number of courses taken by undergraduate students.
4-10           (k)  In addition to the amount appropriated for allocation to
4-11     public junior colleges under Section 130.003, the legislature shall
4-12     appropriate an amount sufficient to reimburse each public junior
4-13     college for any rebates paid by the college under this section in
4-14     the period used to determine the contact hours for the allocation
4-15     under Section 130.003.  The coordinating board shall transfer the
4-16     appropriate portion of the amount appropriated under this
4-17     subsection to each public junior college in the same manner as the
4-18     coordinating board transfers money allocated to the college under
4-19     Section 130.003.
4-20           (l) [(i)]  The coordinating board, in consultation with the
4-21     institutions of higher education, shall adopt rules for the
4-22     administration of this section.
4-23           SECTION 2. (a)  This Act takes effect September 1, 2001.
4-24           (b)  The change in law made by this Act applies only to a
4-25     person who receives an associate degree or other degree or
4-26     certificate from a public junior college, public technical
4-27     institute, or general academic teaching institution that offers
 5-1     only freshman-level and sophomore-level courses on or after the
 5-2     effective date of this Act.