By:  Bivins                                           S.B. No. 1596
         2001S0779/1                            
                                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 N to read as follows:
 1-7             SUBCHAPTER N.  TOWARD EXCELLENCE, ACCESS, & SUCCESS
 1-8                          (TEXAS) GRANT II PROGRAM
 1-9           Sec. 56.401.  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; or
1-14                       (B)  a public technical institute.
1-15                 (3)  "Public junior college" and "public technical
1-16     institute" have the meanings assigned by Section 61.003.
1-17           Sec. 56.402.  PROGRAM NAME; PURPOSE.  (a)  The student
1-18     financial assistance program authorized by this subchapter is known
1-19     as the Toward EXcellence, Access, & Success (TEXAS) grant II
1-20     program, and an individual grant awarded under this subchapter is
1-21     known as a TEXAS grant II.
1-22           (b)  The purpose of this subchapter is to provide a grant of
1-23     money to enable eligible students to attend public two-year
1-24     institutions of higher education in this state.
1-25           Sec. 56.403.  ADMINISTRATION OF PROGRAM.  (a)  The
 2-1     coordinating board shall administer the TEXAS grant II program and
 2-2     shall adopt any rules necessary to implement the TEXAS grant II
 2-3     program or this subchapter.  The coordinating board shall consult
 2-4     with the student financial aid officers of eligible institutions in
 2-5     developing the rules.
 2-6           (b)  The coordinating board shall adopt rules to provide a
 2-7     TEXAS grant II to an eligible student enrolled in an eligible
 2-8     institution in a manner consistent with the administration of
 2-9     federal student financial aid programs.
2-10           (c)  The total amount of TEXAS grants II awarded may not
2-11     exceed the amount available for the program from appropriations,
2-12     gifts, grants, or other funds.
2-13           (d)  In determining who should receive a TEXAS grant II, the
2-14     coordinating board and the eligible institutions shall give highest
2-15     priority to awarding TEXAS grants II to students who demonstrate
2-16     the greatest financial need.
2-17           Sec. 56.404.  INITIAL ELIGIBILITY FOR GRANT.  (a)  To be
2-18     eligible initially for a TEXAS grant II, a person must:
2-19                 (1)  be a resident of this state as determined by
2-20     coordinating board rules;
2-21                 (2)  meet financial need requirements as defined by the
2-22     coordinating board;
2-23                 (3)  be enrolled in an associate degree or certificate
2-24     program at an eligible institution;
2-25                 (4)  be enrolled as an entering undergraduate student
2-26     for at least one-half of a full course load for an entering
 3-1     undergraduate student, as determined by the coordinating board;
 3-2                 (5)  have applied for any available financial aid or
 3-3     assistance; and
 3-4                 (6)  comply with any additional nonacademic requirement
 3-5     adopted by the coordinating board under this subchapter.
 3-6           (b)  A person is not eligible to receive a TEXAS grant II if
 3-7     the person has been convicted of a felony or an offense under
 3-8     Chapter 481, Health and Safety Code, or under the law of another
 3-9     jurisdiction involving a controlled substance as defined by Chapter
3-10     481, Health and Safety Code, unless the person has met the other
3-11     applicable eligibility requirements under this subchapter and:
3-12                 (1)  has received a certificate of discharge by the
3-13     Texas Department of Criminal Justice or a correctional facility or
3-14     completed a period of probation or community supervision ordered by
3-15     a court and at least two years have elapsed from the date of
3-16     receiving the certificate or completing the probation or community
3-17     supervision; or
3-18                 (2)  has been pardoned, has had the record of the
3-19     offense expunged from the person's record, or has otherwise been
3-20     released from the resulting ineligibility to receive a grant under
3-21     this subchapter.
3-22           (c)  A person is not eligible to receive a TEXAS grant II if
3-23     the person has been granted an associate or baccalaureate degree.
3-24           (d)  A person may not receive a TEXAS grant II for more than
3-25     75 semester credit hours or the equivalent.
3-26           (e)  A person may not receive a TEXAS grant II if the person
 4-1     is eligible for a TEXAS grant.
 4-2           (f)  A person's eligibility for a TEXAS grant II ends on the
 4-3     fourth anniversary of the initial award of a TEXAS grant II to the
 4-4     person and the person's enrollment in an eligible institution.
 4-5           Sec. 56.405.  CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE
 4-6     REQUIREMENTS.  (a)  After initially qualifying for a TEXAS grant
 4-7     II, a person may continue to receive a TEXAS grant II during each
 4-8     semester or term in which the person is enrolled at an eligible
 4-9     institution only if the person:
4-10                 (1)  meets financial need requirements as defined by
4-11     the coordinating board;
4-12                 (2)  is enrolled in an undergraduate degree or
4-13     certificate program at an eligible institution;
4-14                 (3)  is enrolled for at least one-half of a full course
4-15     load for an undergraduate student, as determined by the
4-16     coordinating board;
4-17                 (4)  makes satisfactory academic progress toward an
4-18     associate degree or certificate; and
4-19                 (5)  complies with any additional nonacademic
4-20     requirement adopted by the coordinating board.
4-21           (b)  A person is not eligible to continue to receive a TEXAS
4-22     grant II under this section if the person has been convicted of a
4-23     felony or an offense under Chapter 481, Health and Safety Code, or
4-24     under the law of another jurisdiction involving a controlled
4-25     substance as defined by Chapter 481, Health and Safety Code, unless
4-26     the person has met the other applicable eligibility requirements
 5-1     under this subchapter and:
 5-2                 (1)  has received a certificate of discharge by the
 5-3     Texas Department of Criminal Justice or a correctional facility or
 5-4     completed a period of probation or community supervision ordered by
 5-5     a court and at least two years have elapsed from the date of
 5-6     receiving the certificate or completing the probation or community
 5-7     supervision; or
 5-8                 (2)  has been pardoned, has had the record of the
 5-9     offense expunged from the person's record, or has otherwise been
5-10     released from the resulting ineligibility to receive a grant under
5-11     this subchapter.
5-12           (c)  If a person fails to meet any of the requirements of
5-13     Subsection (a) after the completion of any semester or term, the
5-14     person may not receive a TEXAS grant II during the next semester or
5-15     term in which the person enrolls.  A person may become eligible to
5-16     receive a TEXAS grant II in a subsequent semester or term if the
5-17     person:
5-18                 (1)  completes a semester or term during which the
5-19     student is not eligible for a scholarship; and
5-20                 (2)  meets all the requirements of Subsection (a).
5-21           (d)  For the purpose of this section, a person makes
5-22     satisfactory academic progress toward an associate degree or
5-23     certificate only if the person:
5-24                 (1)  completes at least 75 percent of the semester
5-25     credit hours attempted in the student's most recent academic year;
5-26     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 coursework
 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. 56.406.  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 institution of higher education 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. 56.407.  GRANT AMOUNT.  (a)  The amount of a TEXAS grant
6-14     II for a semester or term for a person enrolled full-time at an
6-15     eligible institution is the amount determined by the coordinating
6-16     board as the average statewide amount of tuition and required fees
6-17     that a resident student enrolled full-time in an associate degree
6-18     program would be charged for that semester or term at a public
6-19     junior college or public technical institute.
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     56.404(a)(4) or 56.405(a)(3).
 7-1           (c)  The amount of a TEXAS grant II may not be reduced by any
 7-2     gift aid for which the person receiving the grant is eligible
 7-3     unless the total amount of a person's grant plus any gift aid
 7-4     received exceeds the total cost of attendance at an eligible
 7-5     institution.
 7-6           (d)  Not later than January 31 of each year, the coordinating
 7-7     board shall publish the amount of the grant established by the
 7-8     board for the academic year beginning the next fall semester.
 7-9           (e)  The total amount of grants that a student may receive in
7-10     an academic year under this subchapter and under Section 61.221 may
7-11     not exceed the maximum amount authorized under Section 61.227.
7-12           (f)  An eligible institution may not:
7-13                 (1)  charge a person attending the institution who also
7-14     receives a TEXAS grant II an amount of tuition and required fees in
7-15     excess of the amount of the TEXAS grant II received by the person;
7-16     or
7-17                 (2)  deny admission to or enrollment in the institution
7-18     based on a person's eligibility to receive a TEXAS grant II or a
7-19     person's receipt of a TEXAS grant II.
7-20           (g)  An institution may use other available sources of
7-21     financial aid to cover any difference in the amount of a TEXAS
7-22     grant II and the actual amount of tuition and required fees at the
7-23     institution.
7-24           SECTION 2.  (a)  Scholarships under the TEXAS grant II
7-25     program established under Subchapter N, Chapter 56, Education Code,
7-26     as added by this Act, shall be awarded by the Texas Higher
 8-1     Education Coordinating Board and the eligible institutions of
 8-2     higher education beginning with the 2001 fall semester.
 8-3           (b)  The Texas Higher Education Coordinating Board shall
 8-4     adopt the initial rules for awarding grants under the TEXAS grant
 8-5     II program established under Subchapter N, Chapter 56, Education
 8-6     Code, as added by this Act, not later than July 31, 2001.
 8-7           SECTION 3.  This Act takes effect immediately if it receives
 8-8     a vote of two-thirds of all the members elected to each house, as
 8-9     provided by Section 39, Article III, Texas Constitution.  If this
8-10     Act does not receive the vote necessary for immediate effect, this
8-11     Act takes effect September 1, 2001.