79R1085 JRJ-D

By:  Zaffirini                                                    S.B. No. 33 



A BILL TO BE ENTITLED

AN ACT

relating to graduate stipends awarded as part of the Texas 
B-On-time loan program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter Q, Chapter 56, Education Code, is 
amended by adding Section 56.466 to read as follows:
	Sec. 56.466.  GRADUATE STIPEND.  (a)  A student who 
previously qualified for forgiveness of a Texas B-On-time loan 
under Section 56.462 and who enrolls in a graduate or professional 
degree program at an institution of higher education is eligible to 
receive a stipend of $2,500 in the student's first academic year in 
the program to be used toward expenses associated with the program.
	(b)  The stipends shall be paid from money appropriated for 
that purpose.  If in any academic year the amount of money available 
for stipends is insufficient to provide a stipend to each eligible 
student in the amount specified by this section, the coordinating 
board shall determine the amount of available money and shall 
allocate that amount to eligible institutions in proportion to the 
number of full-time equivalent graduate students enrolled at each 
institution.  Each institution shall use the money allocated to 
award stipends under this section to eligible students enrolled at 
the institution selected according to financial need.
	(c)  The coordinating board shall adopt rules for the 
administration of this section, including rules:
		(1)  prescribing procedures for notifying eligible 
students of the availability of stipends under this section;
		(2)  prescribing application and payment procedures 
for students seeking stipends; and
		(3)  providing for payment of stipends during the 
academic year in periodic installments and for termination of the 
payments to a student who does not remain enrolled in or maintain 
satisfactory academic progress in the student's degree program.
	SECTION 2.  (a)  Section 56.466, Education Code, as added by 
this Act, applies beginning with the 2005-2006 academic year.
	(b)  The Texas Higher Education Coordinating Board shall 
adopt rules for the administration of Section 56.466, Education 
Code, as added by this Act, as soon as practicable after this Act 
takes effect.  For that purpose, the coordinating board may adopt 
the rules in the manner provided by law for emergency rules.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.