SRC-JEC S.B. 1200 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1200
78R2178 KEL-DBy: Lucio
Subcommittee on Higher Education
4/9/2003
As Filed


DIGEST AND PURPOSE 

Current projections show that education levels are declining because of
demographic changes.  Tuition increases have made college inaccessible to
many young people.  As proposed, S.B. 1200 creates a new grant program to
provide high school graduates free tuition, fees, and books for up to two
years at any public community, technical, or lower-division institution in
Texas. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Higher Education
Coordinating Board in SECTION  1 (Sections 56.453 and 56.457, Education
Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 56, Education Code, by adding Subchapter Q, as
follows: 

SUBCHAPTER Q.  TEXASNEXTSTEP GRANT PROGRAM

 Sec. 56.451.  DEFINITIONS.  Defines "coordinating board," "eligible
institution,"  
"institution of higher education," "public junior college," "public
technical institute,""public state college," and "textbook costs."  

Sec. 56.452.  PROGRAM NAME; PURPOSE.  (a)  Provides that the student
financial assistance program authorized by this subchapter is known as the
TexasNextStep grant program, and an individual grant awarded under this
subchapter is known as a TexasNextStep grant. 

(b)  Provides that the purpose of this subchapter is to provide a grant of
money to enable eligible students to attend two-year public institutions
of higher education in this state. 

Sec. 56.453.  ADMINISTRATION OF PROGRAM.  (a)  Requires the Texas Higher
Education Coordinating Board (THECB) to administer the TexasNextStep grant
program and to adopt any rules necessary to implement the TexasNextStep
grant program or this subchapter.  Requires THECB to consult with the
student financial aid officers of eligible institutions in developing the
rules. 

(b)  Requires THECB to adopt rules to provide a TexasNextStep grant to an
eligible student enrolled in an eligible institution in a manner
consistent with the administration of federal student financial aid
programs. 

(c)  Prohibits the total amount of grants awarded under the TexasNextStep
grant program from exceeding the amount available for the program from
appropriations, gifts, grants, or other funds. 

 Sec. 56.454.  INITIAL ELIGIBILITY FOR GRANT.  (a)  Sets forth eligibility
requirements for a grant under the TexasNextStep grant program. 

(b)  Sets forth characteristics of a person ineligible to receive a
TexasNextStep grant. 
 
(c)  Prohibits a person from receiving a TexasNextStep grant for more than
90 semester credit hours or the equivalent, including any developmental
course work required by an eligible institution. 

(d)  Authorizes a person, subject to Section 56.457(b)(2), to receive a
TexasNextStep grant regardless of whether the person is eligible for a
TEXAS grant or a TEXAS grant II.  

(e)  Prohibits a person from receiving a TexasNextStep grant for a
semester or term that begins on or after the third anniversary of the
initial award of a TexasNextStep grant to the person. 

Sec. 56.455.  CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE
REQUIREMENTS.  (a)  Authorizes a person, after initially qualifying for a
TexasNextStep grant, to continue to receive a TexasNextStep grant during
each semester or term in which the person is enrolled at an eligible
institution only if the person meets certain qualifications. 
  
(b)  Exempts a person from the one-half course load requirement of
Subsection (a)(2) if the TexasNextStep grant is awarded for the person's
final semester or term before the person completes the person's degree or
certificate program and the person enrolls in one or more courses that, if
successfully completed, would allow the person to complete the degree or
certificate requirements.  Provides that a person who qualifies for an
exemption under this subsection is not eligible for a TexasNextStep grant
in a subsequent semester or term, regardless of whether the person
graduates as planned. 

(c)  Prohibits a person, if the person fails to meet any of the
requirements of Subsection (a) after the completion of any semester or
term, from receiving a TexasNextStep grant during the next semester or
term in which the person enrolls.  Authorizes a person to become eligible
to receive a TexasNextStep grant in a subsequent semester or term if the
person meets certain qualifications. 
  
(d)  Provides that for purposes of this section, a person makes
satisfactory academic progress toward an associate degree or certificate
only if the person meets the standards for academic progress as determined
by the eligible institution. 

(e)  Provides that a person's eligibility to receive a TexasNextStep grant
is not affected by the person's enrollment in or transfer to another
eligible institution. 

Sec. 56.456.  GRANT USE.  Authorizes a person receiving a TexasNextStep
grant to use the money to pay any usual and customary cost of attendance
at an eligible institution incurred by the person.  Authorizes the
institution to disburse all or part of the proceeds of a TexasNextStep
grant to an eligible person only if the tuition and required fees and
textbook costs incurred by the person at the institution have been paid. 

Sec. 56.457.  GRANT AMOUNT.  (a)  Provides that the amount of a
TexasNextStep grant for a student enrolled full-time at an eligible
institution is the amount determined by THECB as the average amount of
tuition and required fees and textbook costs that a resident student
enrolled full-time in an associate degree or certificate program would be
charged for that semester or term at the institution, except that if the
eligible institution is a public junior college, the average amount of
those charges shall be computed without including the portion of tuition
and required fees charged only to a student who resides outside the junior
college district. 

  (b)  Requires THECB to adopt rules that:

(1)  allow THECB to increase or decrease, in proportion to the number of
semester credit hours in which a student is enrolled, the amount of a
TexasNextStep grant award under this section to a student who is enrolled
in a number of semester credit hours in excess of or below the number of
semester credit hours described in Section 56.454(a)(2) or 56.455(a)(2);
and 

(2)  require THECB to reduce the amount of a TexasNextStep grant by the
amount of any state or federal gift aid for which the person receiving the
grant is eligible if that aid could be applied, according to the terms of
the aid, toward the person's tuition and required fees and textbook costs
at the eligible institution. 

(c)  Requires THECB, not later than January 31 of each year, to publish
the amounts of each grant established by the board with respect to an
eligible institution for the academic year beginning the next fall
semester. 

  (d)  Prohibits an eligible institution from:

(1)  charging a person attending the institution who also receives a
TexasNextStep grant an amount of tuition and required fees in excess of
the amount of the TexasNextStep grant received by the person for tuition
and required fees, except that if the eligible institution is a public
junior college, the institution is authorized to charge an additional
amount to the person based on the person's residence outside the junior
college district; or 

(2)  denying admission to or enrollment in the institution based on a
person's eligibility to receive a TexasNextStep grant or a person's
receipt of a TexasNextStep grant. 

SECTION 2.  (a)  Provides that Section 1 of this Act applies beginning
with the 2003-2004 academic year, except that the Texas Higher Education
Coordinating Board may not award a TexasNextStep grant under Chapter 56Q,
Education Code, as added by this Act, to an entering student who enrolls
in an eligible institution before the 2004-2005 academic year. 

(b)  Requires the Texas Higher Education Coordinating Board to adopt rules
for the administration of Chapter 56Q, Education Code, as added by this
Act, as soon as practicable after this Act takes effect.  Authorizes
THECB, for that purpose, to adopt the initial rules in the manner provided
by law for emergency rules. 

SECTION 3.  Effective date:  upon passage or September 1, 2003.