77R13740 KSD-D                          
         By Bivins, et al.                                     S.B. No. 1596
         Substitute the following for S.B. No. 1596:
         By Brown of Brazos                                C.S.S.B. No. 1596
                                A BILL TO BE ENTITLED
 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
 2-1     money to enable eligible students to attend two-year public
 2-2     institutions of higher education in this state.
 2-3           Sec. 56.353.  ADMINISTRATION OF PROGRAM.  (a)  The
 2-4     coordinating board shall administer the TEXAS grant II program and
 2-5     shall adopt any rules necessary to implement the TEXAS grant II
 2-6     program or this subchapter. The coordinating board shall consult
 2-7     with the student financial aid officers of eligible institutions in
 2-8     developing the rules.
 2-9           (b)  The coordinating board shall adopt rules to provide a
2-10     TEXAS grant II to an eligible student enrolled in an eligible
2-11     institution in a manner consistent with the administration of
2-12     federal student financial aid programs.
2-13           (c)  The total amount of grants awarded under the TEXAS grant
2-14     II program may not exceed the amount available for the program from
2-15     appropriations, gifts, grants, or other funds.
2-16           (d)  In determining who should receive a TEXAS grant II, the
2-17     coordinating board and the eligible institutions shall give highest
2-18     priority to awarding TEXAS grants II to students who demonstrate
2-19     the greatest financial need.
2-20           Sec. 56.354.  INITIAL ELIGIBILITY FOR GRANT.  (a)  To be
2-21     eligible initially for a grant under the TEXAS grant II program, a
2-22     person must:
2-23                 (1)  be a resident of this state as determined by
2-24     coordinating board rules;
2-25                 (2)  meet financial need requirements as defined by the
2-26     coordinating board;
2-27                 (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
3-20     two years have elapsed from the date of the receipt or completion;
3-21     or
3-22                 (2)  been pardoned, had the record of the offense
3-23     expunged from the person's record, or otherwise been released from
3-24     the resulting ineligibility to receive a grant under this
3-25     subchapter.
3-26           (c)  A person is not eligible to receive a TEXAS grant II if
3-27     the person has been granted a 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
4-27     (Texas Controlled Substances Act), or under the law of another
 5-1     jurisdiction involving a controlled substance as defined by Chapter
 5-2     481, Health and Safety Code, unless the person has met the other
 5-3     applicable eligibility requirements under this subchapter and has:
 5-4                 (1)  received a certificate of discharge by the Texas
 5-5     Department of Criminal Justice or a correctional facility or
 5-6     completed a period of probation ordered by a court, and at least
 5-7     two years have elapsed from the date of the receipt or completion;
 5-8     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;
5-27     and
 6-1                 (2)  earns an overall grade point average of at least
 6-2     2.5 on a four-point scale or the equivalent on course work
 6-3     previously attempted at institutions of higher education.
 6-4           (e)  A person who is eligible to receive a TEXAS grant II
 6-5     continues to remain eligible to receive the TEXAS grant II if the
 6-6     person enrolls in or transfers to another eligible institution.
 6-7           Sec. 56.356.  GRANT USE.  A person receiving a TEXAS grant II
 6-8     may use the money to pay any usual and customary cost of attendance
 6-9     at an eligible institution incurred by the student.  The
6-10     institution may disburse all or part of the proceeds of a TEXAS
6-11     grant II to an eligible person only if the tuition and required
6-12     fees incurred by the person at the institution have been paid.
6-13           Sec. 56.357.  GRANT AMOUNT.  (a)  The amount of a TEXAS grant
6-14     II for a student enrolled full-time at an eligible institution is
6-15     the amount determined by the coordinating board as the average
6-16     statewide amount of tuition and required fees that a resident
6-17     student enrolled full-time in an associate degree or certificate
6-18     program would be charged for that semester or term at eligible
6-19     institutions.
6-20           (b)  The coordinating board may adopt rules that allow the
6-21     coordinating board to increase or decrease, in proportion to the
6-22     number of semester credit hours in which a student is enrolled, the
6-23     amount of a TEXAS grant II award under this section to a student
6-24     who is enrolled in a number of semester credit hours in excess of
6-25     or below the number of semester credit hours described in Section
6-26     56.354(a)(4) or 56.355(a)(3).
6-27           (c)  The amount of a TEXAS grant II may not be reduced by any
 7-1     gift aid for which the person receiving the grant is eligible,
 7-2     unless the total amount of a person's grant plus any gift aid
 7-3     received exceeds the total cost of attendance at an eligible
 7-4     institution.
 7-5           (d)  Not later than January 31 of each year, the coordinating
 7-6     board shall publish the amounts of each grant established by the
 7-7     board for the academic year beginning the next fall semester.
 7-8           (e)  The total amount of grants that a student may receive in
 7-9     an academic year under this subchapter and under Section 61.221 may
7-10     not exceed the maximum amount authorized under Section 61.227.
7-11           (f)  An eligible institution may not deny admission to or
7-12     enrollment in the institution based on a person's  eligibility to
7-13     receive a TEXAS grant II or a person's receipt of a TEXAS grant II.
7-14           (g)  An institution may use other available sources of
7-15     financial aid to cover any difference in the amount of a TEXAS
7-16     grant II and the actual amount of tuition and required fees at the
7-17     institution.
7-18           SECTION 2.  (a)  The Texas Higher Education Coordinating
7-19     Board and the eligible institutions shall award scholarships under
7-20     the TEXAS grant II program established under Subchapter O, Chapter
7-21     56, Education Code, as added by this Act, beginning with the 2001
7-22     fall semester.
7-23           (b)  The Texas Higher Education Coordinating Board shall
7-24     adopt the initial rules for awarding grants under the TEXAS grant
7-25     II program established under Subchapter O, Chapter 56, Education
7-26     Code, as added by this Act, not later than July 31, 2001.
7-27           SECTION 3.  This Act takes effect immediately if it receives
 8-1     a vote of two-thirds of all the members elected to each house, as
 8-2     provided by Section 39, Article III, Texas Constitution.  If this
 8-3     Act does not receive the vote necessary for immediate effect, this
 8-4     Act takes effect September 1, 2001.