SRC-JEC S.B. 24 78(3)   SRC-JEC S.B. 24 78(3)   BILL ANALYSIS

Senate Research Center   S.B. 24
78S30012 KEL-DBy: Shapiro
As Filed


The 78th Legislature created the Texas B-On-Time student loan program to
provide forgivable, interest-free loans to certain students in public and
private institutions.  The need for certain clarifications regarding the
B-On-Time loan program emerged during its implementation.  As proposed,
S.B. 24 modifies the Education Code to clarify provisions regarding the
tuition set-aside that funds the program and eligibility for the program.
S.B. 24 also requires a legislative review of the eligibility of students
at private and independent institutions for B-On-Time loans. 


This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 


SECTION 1.  Amends Section 56.465(a), Education Code, as added by Chapter
779, Acts of the 78th Legislature, Regular Session, 2003, to specify that
the tuition on which the set-aside for the Texas B-On-time student loan
program is based is that of a resident undergraduate student.  Provides
that the amount to be set aside by the governing board of each institution
of higher education is five percent of the amount of the tuition in excess
of $46 per semester credit hour, rather than five percent of the amount of
the tuition that is in excess of the amount that would have been charged
to the student for the same semester or term in the 2002-2003 academic
year.  Provides that the amount of a student's tuition set-aside under
this subsection is considered a part of the amount required to be set
aside from that tuition under Section 56.011 (Resident Undergraduate
Student Assistance). 

SECTION 2.  Amends Section 8.02, Chapter 1266, Acts of the 78th
Legislature, Regular Session, 2003, by adding Subsection (f-1), to require
the interim committee established to study the organization, operations,
and funding of higher education (committee), in its review, to evaluate
whether students enrolled in private and independent institutions of
higher education should remain eligible to receive Texas B-On-time loans
under Subchapter Q (Texas B-On-Time Loan Program), Chapter 56, Education
Code.  Requires the committee to include the results of its evaluation in
the report required by Subsection (i) of this section. 

SECTION 3.  Makes application of this Act prospective.
SECTION 4.  Effective date:  upon passage or on the 91st day after the
last day of the legislative session.