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