1-1 AN ACT 1-2 relating to the establishment and operation of the Toward 1-3 EXcellence, Access, & Success (TEXAS) grant II program. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 56, Education Code, is amended by adding 1-6 Subchapter O to read as follows: 1-7 SUBCHAPTER O. TOWARD EXCELLENCE, ACCESS, & SUCCESS 1-8 (TEXAS) GRANT II PROGRAM 1-9 Sec. 56.351. DEFINITIONS. In this subchapter: 1-10 (1) "Coordinating board" means the Texas Higher 1-11 Education Coordinating Board. 1-12 (2) "Eligible institution" means: 1-13 (A) a public junior college; 1-14 (B) a public technical institute; or 1-15 (C) a public state college. 1-16 (3) "Public junior college," "public technical 1-17 institute," and "public state college" have the meanings assigned 1-18 by Section 61.003. 1-19 Sec. 56.352. PROGRAM NAME; PURPOSE. (a) The student 1-20 financial assistance program authorized by this subchapter is known 1-21 as the Toward EXcellence, Access, & Success (TEXAS) grant II 1-22 program, and an individual grant awarded under this subchapter is 1-23 known as a TEXAS grant II. 1-24 (b) The purpose of this subchapter is to provide a grant of 1-25 money to enable eligible students to attend two-year public 2-1 institutions of higher education in this state. 2-2 Sec. 56.353. ADMINISTRATION OF PROGRAM. (a) The 2-3 coordinating board shall administer the TEXAS grant II program and 2-4 shall adopt any rules necessary to implement the TEXAS grant II 2-5 program or this subchapter. The coordinating board shall consult 2-6 with the student financial aid officers of eligible institutions in 2-7 developing the rules. 2-8 (b) The coordinating board shall adopt rules to provide a 2-9 TEXAS grant II to an eligible student enrolled in an eligible 2-10 institution in a manner consistent with the administration of 2-11 federal student financial aid programs. 2-12 (c) The total amount of grants awarded under the TEXAS grant 2-13 II program may not exceed the amount available for the program from 2-14 appropriations, gifts, grants, or other funds. 2-15 (d) In determining who should receive a TEXAS grant II, the 2-16 coordinating board and the eligible institutions shall give highest 2-17 priority to awarding TEXAS grants II to students who demonstrate 2-18 the greatest financial need. 2-19 Sec. 56.354. INITIAL ELIGIBILITY FOR GRANT. (a) To be 2-20 eligible initially for a grant under the TEXAS grant II program, a 2-21 person must: 2-22 (1) be a resident of this state as determined by 2-23 coordinating board rules; 2-24 (2) meet financial need requirements as defined by the 2-25 coordinating board; 2-26 (3) be enrolled in an associate degree or certificate 3-1 program at an eligible institution; 3-2 (4) be enrolled as an entering student for at least 3-3 one-half of a full course load for an entering student in the 3-4 associate degree or certificate program, as determined by the 3-5 coordinating board; 3-6 (5) have applied for any available financial aid or 3-7 assistance; and 3-8 (6) comply with any additional nonacademic requirement 3-9 adopted by the coordinating board under this subchapter. 3-10 (b) A person is not eligible to receive a TEXAS grant II if 3-11 the person has been convicted of a felony or an offense under 3-12 Chapter 481, Health and Safety Code (Texas Controlled Substances 3-13 Act), or under the law of another jurisdiction involving a 3-14 controlled substance as defined by Chapter 481, Health and Safety 3-15 Code, unless the person has met the other applicable eligibility 3-16 requirements under this subchapter and has: 3-17 (1) received a certificate of discharge by the Texas 3-18 Department of Criminal Justice or a correctional facility or 3-19 completed a period of probation ordered by a court and at least two 3-20 years have elapsed from the date of the receipt or completion; or 3-21 (2) been pardoned, had the record of the offense 3-22 expunged from the person's record, or otherwise been released from 3-23 the resulting ineligibility to receive a grant under this 3-24 subchapter. 3-25 (c) A person is not eligible to receive a TEXAS grant II if 3-26 the person has been granted an associate or baccalaureate degree. 4-1 (d) A person may not receive a TEXAS grant II for more than 4-2 75 semester credit hours or the equivalent. 4-3 (e) A person may not receive a TEXAS grant II if the person 4-4 is eligible for a TEXAS grant. 4-5 (f) A person's eligibility for a TEXAS grant II ends on the 4-6 fourth anniversary of the initial award of a TEXAS grant II to the 4-7 person and the person's enrollment in an eligible institution. 4-8 Sec. 56.355. CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE 4-9 REQUIREMENTS. (a) After initially qualifying for a TEXAS grant 4-10 II, a person may continue to receive a TEXAS grant II during each 4-11 semester or term in which the person is enrolled at an eligible 4-12 institution only if the person: 4-13 (1) meets financial need requirements as defined by 4-14 the coordinating board; 4-15 (2) is enrolled in an associate degree or certificate 4-16 program at an eligible institution; 4-17 (3) is enrolled for at least one-half of a full course 4-18 load for a student in an associate degree or certificate program, 4-19 as determined by the coordinating board; 4-20 (4) makes satisfactory academic progress toward an 4-21 associate degree or certificate; and 4-22 (5) complies with any additional nonacademic 4-23 requirement adopted by the coordinating board. 4-24 (b) A person is not eligible to continue to receive a TEXAS 4-25 grant II under this section if the person has been convicted of a 4-26 felony or an offense under Chapter 481, Health and Safety Code 5-1 (Texas Controlled Substances Act), or under the law of another 5-2 jurisdiction involving a controlled substance as defined by Chapter 5-3 481, Health and Safety Code, unless the person has met the other 5-4 applicable eligibility requirements under this subchapter and has: 5-5 (1) received a certificate of discharge by the Texas 5-6 Department of Criminal Justice or a correctional facility or 5-7 completed a period of probation ordered by a court and at least two 5-8 years have elapsed from the date of the receipt or completion; or 5-9 (2) been pardoned, had the record of the offense 5-10 expunged from the person's record, or otherwise been released from 5-11 the resulting ineligibility to receive a grant under this 5-12 subchapter. 5-13 (c) If a person fails to meet any of the requirements of 5-14 Subsection (a) after the completion of any semester or term, the 5-15 person may not receive a TEXAS grant II during the next semester or 5-16 term in which the person enrolls. A person may become eligible to 5-17 receive a TEXAS grant II in a subsequent semester or term if the 5-18 person: 5-19 (1) completes a semester or term during which the 5-20 student is not eligible for a scholarship; and 5-21 (2) meets all the requirements of Subsection (a). 5-22 (d) For the purpose of this section, a person makes 5-23 satisfactory academic progress toward an associate degree or 5-24 certificate only if the person: 5-25 (1) completes at least 75 percent of the semester 5-26 credit hours attempted in the student's most recent academic year; 6-1 and 6-2 (2) earns an overall grade point average of at least 6-3 2.5 on a four-point scale or the equivalent on course work 6-4 previously attempted at institutions of higher education. 6-5 (e) A person who is eligible to receive a TEXAS grant II 6-6 continues to remain eligible to receive the TEXAS grant II if the 6-7 person enrolls in or transfers to another eligible institution. 6-8 Sec. 56.356. GRANT USE. A person receiving a TEXAS grant II 6-9 may use the money to pay any usual and customary cost of attendance 6-10 at an eligible institution incurred by the student. The 6-11 institution may disburse all or part of the proceeds of a TEXAS 6-12 grant II to an eligible person only if the tuition and required 6-13 fees incurred by the person at the institution have been paid. 6-14 Sec. 56.357. GRANT AMOUNT. (a) The amount of a TEXAS grant 6-15 II for a student enrolled full-time at an eligible institution is 6-16 the amount determined by the coordinating board as the average 6-17 statewide amount of tuition and required fees that a resident 6-18 student enrolled full-time in an associate degree or certificate 6-19 program would be charged for that semester or term at eligible 6-20 institutions. 6-21 (b) The coordinating board may adopt rules that allow the 6-22 coordinating board to increase or decrease, in proportion to the 6-23 number of semester credit hours in which a student is enrolled, the 6-24 amount of a TEXAS grant II award under this section to a student 6-25 who is enrolled in a number of semester credit hours in excess of 6-26 or below the number of semester credit hours described in Section 7-1 56.354(a)(4) or 56.355(a)(3). 7-2 (c) The amount of a TEXAS grant II may not be reduced by any 7-3 gift aid for which the person receiving the grant is eligible, 7-4 unless the total amount of a person's grant plus any gift aid 7-5 received exceeds the total cost of attendance at an eligible 7-6 institution. 7-7 (d) Not later than January 31 of each year, the coordinating 7-8 board shall publish the amounts of each grant established by the 7-9 board for the academic year beginning the next fall semester. 7-10 (e) The total amount of grants that a student may receive in 7-11 an academic year under this subchapter and under Section 61.221 may 7-12 not exceed the maximum amount authorized under Section 61.227. 7-13 (f) An eligible institution may not: 7-14 (1) charge a person attending the institution who also 7-15 receives a TEXAS grant II an amount of tuition and required fees in 7-16 excess of the amount of the TEXAS grant II received by the person; 7-17 or 7-18 (2) deny admission to or enrollment in the institution 7-19 based on a person's eligibility to receive a TEXAS grant II or a 7-20 person's receipt of a TEXAS grant II. 7-21 (g) An institution may use other available sources of 7-22 financial aid, other than a loan or a Pell grant, to cover any 7-23 difference in the amount of a TEXAS grant II and the actual amount 7-24 of tuition and required fees at the institution. 7-25 SECTION 2. (a) The Texas Higher Education Coordinating 7-26 Board and the eligible institutions shall award scholarships under 8-1 the TEXAS grant II program established under Subchapter O, Chapter 8-2 56, Education Code, as added by this Act, beginning with the 2001 8-3 fall semester. 8-4 (b) The Texas Higher Education Coordinating Board shall 8-5 adopt the initial rules for awarding grants under the TEXAS grant 8-6 II program established under Subchapter O, Chapter 56, Education 8-7 Code, as added by this Act, not later than July 31, 2001. 8-8 SECTION 3. This Act takes effect immediately if it receives 8-9 a vote of two-thirds of all the members elected to each house, as 8-10 provided by Section 39, Article III, Texas Constitution. If this 8-11 Act does not receive the vote necessary for immediate effect, this 8-12 Act takes effect September 1, 2001. S.B. No. 1596 _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1596 passed the Senate on March 29, 2001, by the following vote: Yeas 29, Nays 0, one present not voting; May 4, 2001, Senate refused to concur in House amendment and requested appointment of Conference Committee; May 9, 2001, House granted request of the Senate; May 26, 2001, Senate adopted Conference Committee Report by the following vote: Yeas 30, Nays 0, one present not voting. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1596 passed the House, with amendment, on May 1, 2001, by a non-record vote; May 9, 2001, House granted request of the Senate for appointment of Conference Committee; May 24, 2001, House adopted Conference Committee Report by the following vote: Yeas 139, Nays 0, one present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor