By:  Zaffirini                                                    S.B. No. 34 
	(In the Senate - Filed November 8, 2004; January 31, 2005, 
read first time and referred to Subcommittee on Higher Education; 
March 7, 2005, reported favorably to Committee on Education; 
March 21, 2005, reported favorably from Committee on Education by 
the following vote:  Yeas 7, Nays 0; March 21, 2005, sent to 
printer.)


A BILL TO BE ENTITLED

AN ACT


relating to the tuition rebate program for certain undergraduates 
at certain public institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsections (a), (c), and (i), Section 54.0065, 
Education Code, are amended to read as follows:
	(a)  A qualified student is eligible for a rebate of a 
portion of the undergraduate tuition the student has paid if the 
student:
		(1)  is awarded a baccalaureate degree from a general 
academic teaching institution within the period prescribed by 
Section 56.462(1)(A) or (B), as applicable, to qualify for 
forgiveness of a Texas B-On-time loan; and
		(2)  has attempted no more than three hours in excess of 
the minimum number of semester credit hours required to complete 
the degree, including:
			(A)  transfer credits; and                                                   
			(B)  course credit earned exclusively by 
examination, except that, for purposes of this subsection, only the 
number of semester credit hours earned exclusively by examination 
in excess of nine semester credit hours is treated as hours 
attempted.
	(c)  A student who has transferred from another institution 
of higher education shall provide the institution awarding the 
degree an official transcript from each institution attended by the 
student in order that the period during which the student has been 
enrolled in a general academic teaching institution and the total 
number of hours attempted by the student can be verified.
	(i)  The coordinating board, in consultation with the 
institutions of higher education, shall adopt rules for the 
administration of this section, including a rule to allow an 
otherwise eligible student to receive a rebate under this section 
if the student is not awarded a baccalaureate degree within the 
period required by Subsection (a)(1) solely as a result of a 
hardship or other good cause.
	SECTION 2.  (a)  The change in law made by this Act applies 
only to a student who enters a general academic teaching 
institution for the first time on or after the effective date of 
this Act.
	(b)  The Texas Higher Education Coordinating Board shall 
adopt the rule required by Subsection (i), Section 54.0065, 
Education Code, as amended by this Act, relating to students who do 
not graduate within the required time as a result of hardship or 
other good cause, as soon as practicable after this Act takes 
effect.  For that purpose, the coordinating board may adopt the 
initial rule 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.



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