79R18633 KEL-D


By:  Shapiro, West                                                S.B. No. 1227

Substitute the following for S.B. No. 1227:                                   

By:  Morrison                                                 C.S.S.B. No. 1227


A BILL TO BE ENTITLED
AN ACT
relating to enrollment in public and private postsecondary educational institutions, to payment of the costs of attending those educational institutions, and to financial aid and other measures to assist students to pay those costs. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subsection (e), Section 52.17, Education Code, is amended to read as follows: (e) Amounts paid to the board by the federal Lender's Special Allowance program may: (1) be deposited in: (A) the Texas college interest and sinking fund; or (B) [,] a board interest and sinking fund;[,] or (2) be used by the board for the administration of student loan and grant programs [and the Teacher Loan Program and Future Teacher Loan Program authorized under House Bill 72, 68th Legislature, 2nd Called Session, 1984, or other programs] administered by the board, including the making of grants under Subchapter M, Chapter 56 [as specified by the legislature in the General Appropriations Act]. SECTION 2. Section 52.31, Education Code, is amended to read as follows: Sec. 52.31. PARTICIPATING INSTITUTIONS. In this subchapter, "participating [A participating] higher educational institution" means a public or private nonprofit [is any] institution of higher education, [public or private nonprofit,] including a junior college, [which is recognized or] accredited by a recognized accrediting agency as defined by Section 61.003, or a regional education service center or other entity that offers an alternative educator certification program approved by the State Board for Educator Certification, that: (1) is located in this state; and (2) [the Texas Education Agency or the Coordinating Board, Texas College and University System, or its successors, and which] complies with the provisions of this chapter and the rules [and regulations] of the board promulgated in accordance with this chapter. SECTION 3. Section 52.32, Education Code, is amended by amending Subsections (a) and (b) and adding Subsection (a-1) to read as follows: (a) The board may authorize loans from the Texas Opportunity Plan Fund to a qualified [students if the] applicant who: (1) is a resident of this state [Texas] as defined by the board in accordance with Subchapter B, Chapter 54 [of this code]; (2) has been accepted for enrollment at a participating higher educational institution, provided that if the institution is a public or private [any] postsecondary educational institution, the institution must be [within the State of Texas, public or private, which has been] approved by an agency of the United States government for the purpose of guaranteeing the maker of such loans against loss due to the death, disability, or default of the borrower[. If the postsecondary institution that the student has been accepted to attend was not a participating institution as defined in Section 52.31 of this code on May 1, 1985, the applicant must provide evidence that he is unable to obtain a guaranteed student loan from a commercial lender except as provided by Subsection (b) of this section]; (3) has established that the student [he] has insufficient resources to finance the student's [his] college education; (4) has been recommended by reputable persons in the student's [his] home community; and (5) has complied with other requirements established by the rules [and regulations] adopted by the board in conformity with this chapter. (a-1) Except as provided by Subsection (b), if the institution to which the applicant has been accepted for enrollment was not a participating institution, as defined by Section 52.31, on May 1, 1985, the applicant must provide evidence that the applicant is unable to obtain a guaranteed student loan from a commercial lender. (b) If a loan applicant is enrolled at a career school or college in a degree program that is approved by the board or at a regional education service center or other entity in an alternative educator certification program that is approved by the State Board for Educator Certification, the applicant is not required to provide evidence that the applicant is unable to obtain a guaranteed student loan from a commercial lender under Subsection (a-1) [(a)(2) of this section]. SECTION 4. Subsection (c), Section 52.91, Education Code, is amended to read as follows: (c) The board shall repay bonds issued by the board to fund the Texas B-On-time student loan program using legislative appropriations and money collected by the board as repayment for Texas B-On-time student loans awarded by the board. The board may use tuition set aside under Section 56.465 to repay bonds issued by the board for the Texas B-On-time student loan program. The board may not use money collected by the board as repayment for student loans awarded by the board under Subchapter C to repay bonds issued by the board for the Texas B-On-time student loan program under Section 56.464(b). SECTION 5. Section 54.007, Education Code, is amended by adding Subsection (f) to read as follows: (f) A student may elect to pay the tuition and fees of an institution of higher education by installment under this section regardless of whether the student intends to apply a financial aid award administered by the institution toward the tuition and fees, except that a student whose financial aid award or awards are available to cover the total amount of tuition and fees may not pay by installment under this section. On receipt of notice of a student's election to pay tuition and fees by installment, the governing board of the institution shall apply any financial aid award administered for the student toward the amount of tuition and fees due for that semester or summer session until the tuition and fees are paid in full and shall immediately release any remaining amount of the award to the student, except that the institution is not required to apply the award or awards toward the total amount of tuition and fees in exigent circumstances as determined by the institution. SECTION 6. Subchapter A, Chapter 54, Education Code, is amended by adding Section 54.0071 to read as follows: Sec. 54.0071. AUTHORITY OF INSTITUTION TO PROVIDE PAYMENT OPTIONS FOR STUDENT WITH DELAYED FINANCIAL AID. (a) The governing board of an institution of higher education may postpone the due date for the payment of all or part of the tuition and fees for a student for a semester or summer session in which the student will receive one or more delayed financial aid awards if: (1) the student has not received the awards by the regular due date for payment of the tuition and fees; and (2) the student agrees to assign to the institution a portion of the awards equal to the amount of tuition and fees for which the due date is postponed. (b) A postponed due date under Subsection (a) applies only to the portion of tuition and fees to be covered by the student's delayed financial aid awards. When the financial aid awards become available, a governing board that postpones a due date under this section shall apply the awards toward the amount of tuition and fees due and immediately release any remaining amount of the awards to the student. (c) If after the due date for a student's tuition and fees is postponed under this section the student becomes ineligible to receive one or more of the delayed financial aid awards, or the amount awarded is less than the amount of tuition and fees due, the governing board shall provide the student a reasonable period, not to exceed 30 days, to pay the unpaid amount of tuition and fees. The board may deny a student credit for work done in the semester or summer session if the student fails to pay the tuition and fees by the end of that period. (d) The Texas Higher Education Coordinating Board shall prescribe procedures for the administration of this section. (e) If a student with delayed financial aid awards has elected to pay tuition and fees by installment as permitted by Section 54.007 and if the governing board elects to postpone the due date for the student's tuition and fees as authorized by this section, the governing board in the manner provided by this section shall postpone the due date for each installment payment that becomes due before the student receives the awards. SECTION 7. Subchapter B, Chapter 54, Education Code, is amended by adding Section 54.0516 to read as follows: Sec. 54.0516. SPECIAL SUMMER TUITION RATES AT TEXAS A&M UNIVERSITY: PILOT PROGRAM. (a) This section applies only to a resident undergraduate student enrolled for a summer term or session at Texas A&M University. (b) Tuition, other than tuition under Section 54.0513, charged to a student to whom this section applies is three-fourths of the amount otherwise provided by this subchapter. (c) The amount that the board of regents may charge as tuition under Section 54.0513 to a student to whom this section applies may not exceed the amount of other tuition the board is authorized to charge to the student under Subsection (b). (d) This section applies only if the legislature specifically appropriates money to Texas A&M University for the state fiscal biennium ending August 31, 2007, to cover the tuition revenue lost to the institution by the application of this section. (e) This section applies only to a summer term or session in 2006 or 2007. This section expires January 1, 2008. SECTION 8. Subsection (c), Section 54.214, Education Code, is amended to read as follows: (c) To be eligible for an exemption under this section, a person must: (1) be a resident of this state; (2) be a school employee serving in any capacity; (3) for the initial term or semester for which the person receives an exemption under this section, have [who] worked as an educational aide for at least one school year during the five years preceding that [the] term or semester [for which the person receives the exemption]; (4) [(3)] establish financial need as determined by coordinating board rule; (5) [(4)] be enrolled in courses required for teacher certification at the institution of higher education granting the exemption; (6) [(5)] maintain an acceptable grade point average as determined by coordinating board rule; and (7) [(6)] comply with any other requirements adopted by the coordinating board under this section. SECTION 9. Section 54.2155, Education Code, is amended to read as follows: Sec. 54.2155. PAYMENT OF TUITION ASSISTANCE FOR MEMBERS OF STATE MILITARY FORCES. (a) For [In the manner established by the Texas Higher Education Coordinating Board, for] each semester, the adjutant general of the state military forces [coordinating board] shall certify to institutions of higher education as described by Section 431.090, Government Code, information identifying the persons to whom the adjutant general [of the state military forces] has awarded tuition assistance under that section [Section 431.090, Government Code, if the coordinating board has determined that sufficient money is available to reimburse institutions for tuition exemptions granted under this section and to make tuition assistance grants under Subsection (c)]. (b) An institution of higher education shall exempt a person certified by the adjutant general as described by Subsection (a) [coordinating board under this section] from the payment of tuition for the semester credit hours for which the person enrolls, not to exceed 12 semester credit hours. If the person is not charged tuition at the rate provided for other Texas residents, the amount of the exemption may not exceed the amount of tuition the person would be charged as a Texas resident for the number of semester credit hours for which the person enrolls, not to exceed 12 semester credit hours. [(b) From money appropriated for purposes of this section, the coordinating board shall reimburse an institution of higher education in an amount equal to the amount of the tuition exemption the institution grants to a person under Subsection (a). [(c) From money appropriated for purposes of this section, the coordinating board shall make a grant to a person attending a private or independent institution of higher education, as defined by Section 61.003, to whom the adjutant general has awarded tuition assistance for the semester under Section 431.090, Government Code. The amount of a grant under this section is an amount equal to the average amount of reimbursement the coordinating board estimates will be paid per student for the same semester under Subsection (b).] SECTION 10. Subsection (b), Section 54.5021, Education Code, is amended to read as follows: (b) The student deposit fund of an institution of higher education shall be used, at the discretion of the institution's governing board, for making scholarship awards to needy and deserving students of the institution and making grants under Subchapter C, Chapter 56, to resident students of the institution. The governing board shall administer the scholarship awards for the institution, including the selection of recipients and the amounts and conditions of the awards. The recipients of the scholarships must be residents of the state as defined for tuition purposes. SECTION 11. Section 56.033, Education Code, is amended by adding Subsection (e) to read as follows: (e) To supplement money set aside under Subsection (a), the governing board of an institution of higher education may use money received by the institution from the fee for issuance of collegiate license plates under Section 504.615, Transportation Code, for awarding Texas Public Educational Grants. The board may use the money to award grants to both resident and nonresident students, except that the board shall give priority to grants for resident students. Notwithstanding Subsection (b), the board may not use the money for emergency loans under Subchapter D. SECTION 12. Section 56.051, Education Code, is amended to read as follows: Sec. 56.051. EMERGENCY LOANS. Each institution of higher education may establish an emergency loan program under which students are loaned money to pay tuition, [and] fees, and the costs of textbooks. SECTION 13. Section 56.052, Education Code, is amended to read as follows: Sec. 56.052. ELIGIBILITY. (a) The governing board of each institution shall adopt rules establishing eligibility criteria. The rules must allow eligible students to obtain loans on the basis of the order of receipt of applications, except as provided by Subsection (b). (b) The governing board may adopt rules that allow the institution to select loan recipients from the eligible applicants according to financial need, regardless of when their applications are received, if money available for the program is insufficient to provide loans to each eligible applicant. SECTION 14. Section 56.076, Education Code, is amended to read as follows: Sec. 56.076. ELIGIBLE EMPLOYER. An eligible institution may enter into agreements with employers that participate in the work-study program. To be eligible to participate in the work-study program, an employer must: (1) provide part-time employment to an eligible student in nonpartisan and nonsectarian activities; (2) provide, insofar as is practicable, employment to an eligible student that is related to the student's academic interests; (3) use Texas college work-study program positions only to supplement and not to supplant positions normally filled by persons not eligible to participate in the work-study program; (4) provide from sources other than federal college work-study program funds a percentage [not less than 30 percent] of an employed student's wages that is equal to the percentage of a student's wages that the employer would be required to provide to the student in that academic year under the [and 100 percent of other employee benefits for the employed student from sources other than] federal college work-study program [funds, if the employer is a nonprofit entity]; and (5) provide from sources other than federal college work-study funds [not less than 50 percent of an employed student's wages and] 100 percent of other employee benefits for the employed student[, if the employer is a profit-making entity]. SECTION 15. Subchapter K, Chapter 56, Education Code, is amended by adding Section 56.2011 to read as follows: Sec. 56.2011. DEFINITION. In this subchapter, "coordinating board" means the Texas Higher Education Coordinating Board. SECTION 16. Section 56.202, Education Code, is amended to read as follows: Sec. 56.202. PURPOSE. (a) The Early High School Graduation Scholarship program is created to increase efficiency in the Foundation School Program and to provide assistance for tuition or tuition and mandatory fees, as provided by Section 56.204, to an eligible person to enable that person to attend a [Texas] public or private institution of higher education in this state. (b) A portion of the savings to the Foundation School Program that occur as a result of the program is dedicated to state credits for tuition or tuition and mandatory fees, as applicable, provided to an eligible person under the program. SECTION 17. Section 56.203, Education Code, as amended by Chapters 365 and 1317, Acts of the 78th Legislature, Regular Session, 2003, is reenacted and amended to read as follows: Sec. 56.203. ELIGIBLE PERSON. (a) To be eligible for an award through the Early High School Graduation Scholarship program, a person must: (1) [have the written approval of at least one of the person's parents or a person standing in parental relation to the person, if the person graduated from high school in not more than 41 consecutive months; [(2)] have [successfully completed the recommended or advanced high school program established under Section 28.025 and] graduated from [a Texas public] high school: (A) in not more than 41 consecutive months and successfully completed the recommended or advanced high school program established under Section 28.025, if the person graduated on or after September 1, 2005; (B) in not more than 45 consecutive months, [or, if the person graduated] with at least 30 hours of college credit, and successfully completed the recommended or advanced high school program established under Section 28.025, if the person graduated on or after September 1, 2005 [in not more than 45 consecutive months]; or (C) in not more than 36 consecutive months after successfully completing the requirements for a high school diploma, if the person graduated before September 1, 2005, regardless of whether the person successfully completed the recommended or advanced high school program established under Section 28.025; (2) [(3)] have attended high school exclusively in one or more public high schools in this state [only]; and (3) [(4)] be a Texas resident as defined by coordinating board [Texas Higher Education Coordinating Board] rule. (b) The [A person's] eligibility for the Early High School Graduation Scholarship program of a person described by Subsection (a)(1)(A) or (B) ends on the sixth anniversary of the date that the person first becomes eligible to participate in the program, unless the person is provided additional time to participate in the program under Subsection (c). (c) The coordinating board shall adopt rules to provide a person described by Subsection (a)(1)(A) or (B) who is otherwise eligible to participate in the Early High School Graduation Scholarship program additional time to use a state credit for tuition and mandatory fees under the program. The rules must require a person seeking an extension under this subsection to show hardship or other good cause that prevents the person from enrolling in or continuing enrollment in an eligible institution during the period provided by Subsection (b). For purposes of this subsection, hardship or other good cause includes a severe illness or other debilitating condition, [or] responsibility for the care of a sick, injured, or needy person, or active duty or other service in the United States armed forces. (d) A person who does not satisfy the curriculum requirements for the recommended or advanced high school program as required to establish eligibility under Subsection (a)(1)(A) or (B) [of Subsection (a)(2)] is considered to have satisfied those requirements if the high school from which the person graduated indicates on the person's transcript that the person was unable to complete the appropriate curriculum within the time prescribed by that subsection solely because of a reason beyond the person's control, such as [necessary courses were unavailable to the person at the appropriate times in the person's high school career as a result of course scheduling,] lack of enrollment capacity[,] or a shortage of qualified teachers [another cause not within the person's control]. SECTION 18. The heading to Section 56.204, Education Code, is amended to read as follows: Sec. 56.204. ENTITLEMENT[; MATCHING CREDIT]. SECTION 19. Section 56.204(a), Education Code, is amended to read as follows: (a) An eligible person under the Early High School Graduation Scholarship program is entitled to a state credit to apply toward tuition or [pay] tuition and mandatory fees, as applicable, at a public or private institution of higher education in this state in the following amounts: (1) $2,000 to apply toward tuition and mandatory fees if the person successfully completed the recommended or advanced high school program established under Section 28.025 and graduated from high school on or after September 1, 2005, in 36 consecutive months or less and an additional $1,000 to apply toward tuition and mandatory fees if the person graduated with at least 15 hours of college credit; (2) $500 to apply toward tuition and mandatory fees if the person successfully completed the recommended or advanced high school program established under Section 28.025 and graduated from high school on or after September 1, 2005, in more than 36 consecutive months but not more than 41 consecutive months and an additional $1,000 to apply toward tuition and mandatory fees if the person graduated with at least 30 hours of college credit; [or] (3) $1,000 to apply toward tuition and mandatory fees if the person successfully completed the recommended or advanced high school program established under Section 28.025 and graduated from high school on or after September 1, 2005, in more than 41 consecutive months but not more than 45 consecutive months with at least 30 hours of college credit; or (4) $1,000 to apply only toward tuition if the person graduated before September 1, 2005, after successfully completing the requirements for a high school diploma in not more than 36 consecutive months. SECTION 20. Section 56.205, Education Code, is amended to read as follows: Sec. 56.205. ISSUANCE OF CERTIFICATE. As soon as practicable after the coordinating board confirms with the high school from which a person graduated that the person is eligible for an award through the Early High School Graduation Scholarship program, the [The] coordinating board shall provide a certificate for state credits for tuition or tuition and mandatory fees, as applicable, to the [an] eligible person. SECTION 21. Sections 56.206(a), (c), and (d), Education Code, are amended to read as follows: (a) On enrollment of an eligible person in an eligible institution of higher education, the institution shall apply to the person's charges for tuition or tuition and mandatory fees, as applicable, for the enrollment period an amount equal to the lesser of: (1) the amount of the state credit available to the person; or (2) the person's actual tuition or tuition and mandatory fees, as applicable. (c) For each student using a state credit for tuition or tuition and mandatory fees under this subchapter, the institution of higher education shall report to the coordinating board the following information: (1) the student's name; (2) the school district from which the student graduated from high school; [and] (3) the amount of the state credit applied; and (4) whether the state credit was applied toward tuition or tuition and mandatory fees. (d) Subject to Section 56.203(b), an eligible person may use the state credit for enrollment in an eligible institution of higher education during any semester or summer session, except the [person's] initial use of the credit by a person who qualifies for an award under Section 56.203(a)(1)(A) or (B) may not be for enrollment during any term of a summer session immediately following the person's graduation from high school. SECTION 22. Section 56.207(b), Education Code, is amended to read as follows: (b) On receipt of a report from the coordinating board under Subsection (a), the commissioner of education shall transfer to the coordinating board, from funds appropriated for the Foundation School Program, an amount sufficient to pay each eligible institution of higher education the amount of state credit for tuition or tuition and mandatory fees, as applicable, that is applied by the institution during the period covered by the report. SECTION 23. Section 56.2075(b), Education Code, is amended to read as follows: (b) The commissioner of education shall distribute money from the foundation school fund in an amount sufficient to pay each school district under Subsection (a). SECTION 24. Subchapter K, Chapter 56, Education Code, is amended by adding Section 56.210 to read as follows: Sec. 56.210. NOTIFICATION BY HIGH SCHOOLS REGARDING PROGRAM REQUIREMENTS. (a) When the student initially enrolls in the school, each public high school in this state shall provide information regarding the requirements of the Early High School Graduation Scholarship program: (1) to each freshman student enrolled when the school year begins and to a parent, conservator, or guardian of the student; and (2) to each student who: (A) enrolls in the school before the student's senior year; and (B) did not receive the information under Subdivision (1). (b) The information provided under Subsection (a) must include: (1) the number and type of high school course credits necessary to satisfy the eligibility requirements for the Early High School Graduation Scholarship program; and (2) the appropriate order in which those high school course credits must be earned to satisfy the eligibility requirements, including course credits related to the curriculum for the recommended or advanced high school program. (c) The Texas Education Agency shall prepare a publication that includes the information required to be provided under this section and shall post that publication on the agency's website in a form that enables a public high school to reproduce the information for distribution to students, parents, and other persons as required by this section. SECTION 25. Section 56.304, Education Code, is amended by amending Subsection (e) and adding Subsections (e-1) and (e-2) to read as follows: (e) If a person is initially awarded a TEXAS grant for an academic period before the 2005 fall semester, the [A] person's eligibility for a TEXAS grant ends on the sixth anniversary of the initial award of a TEXAS grant to the person and the person's enrollment in an eligible institution, unless the person is provided additional time during which the person may receive a TEXAS grant under Subsection (e-2) [this subsection]. (e-1) If a person is initially awarded a TEXAS grant for the 2005 fall semester or a later academic period, unless the person is provided additional time during which the person may receive a TEXAS grant under Subsection (e-2), the person's eligibility for a TEXAS grant ends on: (1) the fifth anniversary of the initial award of a TEXAS grant to the person, if the person is enrolled in a degree or certificate program of four years or less; or (2) the sixth anniversary of the initial award of a TEXAS grant to the person, if the person is enrolled in a degree program of more than four years. (e-2) The coordinating board shall adopt rules to provide a person who is otherwise eligible to receive a TEXAS grant additional time during which the person may receive a TEXAS grant in the event of a hardship or other good cause shown that prevents the person from continuing the person's enrollment during the period the person would otherwise have been eligible to receive a TEXAS grant, including a showing of a severe illness or other debilitating condition or that the person is or was responsible for the care of a sick, injured, or needy person. SECTION 26. Section 56.305, Education Code, is amended by amending Subsections (e) and (g) and adding Subsection (e-1) to read as follows: (e) For the purpose of this section, a person who is initially awarded a TEXAS grant for an academic period before the 2005 fall semester makes satisfactory academic progress toward an undergraduate degree or certificate only if: (1) in the person's first academic year the person meets the satisfactory academic progress requirements of the institution at which the person is enrolled; and (2) in a subsequent academic year, the person: (A) completes at least 75 percent of the semester credit hours attempted in the student's most recent academic year; and (B) earns an overall grade point average of at least 2.5 on a four-point scale or the equivalent on coursework previously attempted at institutions of higher education. (e-1) For purposes of this section, a person who is initially awarded a TEXAS grant for the 2005 fall semester or a later academic period makes satisfactory academic progress toward an undergraduate degree or certificate only if: (1) in the person's first academic year the person meets the satisfactory academic progress requirements of the institution at which the person is enrolled; and (2) in a subsequent academic year, the person: (A) completed at least 24 semester credit hours in the student's most recent academic year; and (B) has earned an overall grade point average of at least 2.5 on a four-point scale or the equivalent on coursework previously attempted at institutions of higher education. (g) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a TEXAS grant: (1) while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(3); or (2) if the student's grade point average or the student's completion rate or number of semester credit hours completed, as applicable, falls below the satisfactory academic progress requirements of Subsection (e) or (e-1). SECTION 27. Section 56.307, Education Code, is amended by amending Subsections (b), (c), (d), (i), and (j) and adding Subsections (d-1), (i-1), and (l) to read as follows: (b) The amount of a TEXAS grant for a semester or term for a student enrolled full-time at a private or independent institution of higher education is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in a baccalaureate degree program would be charged for that semester or term at general academic teaching institutions. (c) The amount of a TEXAS grant for a semester or term for a student enrolled full-time at a public technical institute is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in an associate degree or certificate program would be charged for that semester or term at public technical institutes. (d) The amount of a TEXAS grant for a semester or term for a student enrolled full-time at a public junior college is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a student who is a resident of the junior college district and is enrolled full-time in an associate degree or certificate program would be charged for that semester or term at public junior colleges. (d-1) The coordinating board shall determine the average statewide tuition and fee amounts for a semester or term of the next academic year for purposes of this section by using the amounts of tuition and required fees that will be charged by the applicable eligible institutions for that semester or term in that academic year. The board may estimate the amount of the charges for a semester or term in the next academic year by an institution if the relevant information is not yet available to the board. (i) A public institution of higher education may not: (1) unless the institution complies with Subsection (j), charge a person attending the institution who also receives a TEXAS grant an amount of tuition and required fees in excess of the amount of the TEXAS grant received by the person; or (2) deny admission to or enrollment in the institution based on a person's eligibility to receive a TEXAS grant or a person's receipt of a TEXAS grant. (i-1) A public institution of higher education may elect to award a TEXAS grant to any student in an amount that is less than the applicable amount established under Subsection (a), (c), (d), or (e). (j) A public [An] institution of higher education shall [may] use other available sources of financial aid, other than a loan, to cover any difference in the amount of a TEXAS grant awarded to the student and the actual amount of tuition and required fees at the institution if the difference results from: (1) a reduction in the amount of a TEXAS grant under Subsection (i-1); or (2) a deficiency in the amount of the grant as established under Subsection (a), (c), (d), or (e), as applicable, to cover the full amount of tuition and required fees charged to the student by the institution. (l) The coordinating board shall provide information regarding the Texas B-On-time loan program established under Subchapter Q to each eligible applicant who receives less than the full amount of a TEXAS grant. SECTION 28. Subchapter M, Chapter 56, Education Code, is amended by adding Section 56.3071 to read as follows: Sec. 56.3071. EFFECT OF ELIGIBILITY FOR TUITION EQUALIZATION GRANT. (a) Notwithstanding Section 56.307, the total amount of financial aid that a student enrolled in a private or independent institution of higher education is eligible to receive in a state fiscal year from TEXAS grants awarded under this subchapter may not exceed the maximum amount the student may receive in tuition equalization grants in that fiscal year as determined under Subchapter F, Chapter 61. (b) Notwithstanding any other law, a student enrolled in a private or independent institution of higher education may not receive a TEXAS grant under this subchapter and a tuition equalization grant under Subchapter F, Chapter 61, for the same semester or other term, regardless of whether the student is otherwise eligible for both grants during that semester or term. A student who but for this subsection would be awarded both a TEXAS grant and a tuition equalization grant for the same semester or other term is entitled to receive only the grant of the greater amount. SECTION 29. Subsection (a), Section 56.3075, Education Code, is amended to read as follows: (a) If the money available for TEXAS grants in a period for which grants are awarded is sufficient to provide grants to all eligible applicants in amounts specified by Section 56.307, the [The] coordinating board may use any excess money available for TEXAS grants to award a grant in an amount not more than three times the amount that may be awarded under Section 56.307 to a student who: (1) is enrolled in a program that fulfills the educational requirements for licensure or certification by the state in a health care profession that the coordinating board, in consultation with the Texas Workforce Commission and the statewide health coordinating council, has identified as having a critical shortage in the number of license holders needed in this state; (2) has completed at least one-half of the work toward a degree or certificate that fulfills the educational requirement for licensure or certification; and (3) meets all the requirements to receive a grant award under Section 56.307. SECTION 30. The heading to Subchapter P, Chapter 56, Education Code, is amended to read as follows:
SUBCHAPTER P. TEXAS EDUCATIONAL OPPORTUNITY [TOWARD
EXCELLENCE, ACCESS, & SUCCESS (TEXAS)] GRANT [II] PROGRAM
SECTION 31. Subsection (a), Section 56.402, Education Code, is amended to read as follows: (a) The student financial assistance program authorized by this subchapter is known as the Texas Educational Opportunity Grant Program [Toward EXcellence, Access, & Success (TEXAS) grant II program, and an individual grant awarded under this subchapter is known as a TEXAS grant II]. SECTION 32. Section 56.403, Education Code, is amended to read as follows: Sec. 56.403. ADMINISTRATION OF PROGRAM. (a) The coordinating board shall administer the [TEXAS] grant [II] program and shall adopt any rules necessary to implement the [TEXAS] grant [II] program or this subchapter. The coordinating board shall consult with the student financial aid officers of eligible institutions in developing the rules. (b) The coordinating board shall adopt rules to provide a [TEXAS] grant under this subchapter [II] to an eligible student enrolled in an eligible institution in a manner consistent with the administration of federal student financial aid programs. (c) The total amount of grants awarded under the [TEXAS] grant [II] program may not exceed the amount available for the program from appropriations, gifts, grants, or other funds. (d) In determining who should receive a [TEXAS] grant under this subchapter [II], the coordinating board and the eligible institutions shall give highest priority to awarding [TEXAS] grants [II] to students who demonstrate the greatest financial need. SECTION 33. Section 56.404, Education Code, is amended to read as follows: Sec. 56.404. INITIAL ELIGIBILITY FOR GRANT. (a) To be eligible initially for a grant under the [TEXAS] grant [II] program, a person must: (1) be a resident of this state as determined by coordinating board rules; (2) meet financial need requirements as defined by the coordinating board; (3) be enrolled in an associate degree or certificate program at an eligible institution; (4) be enrolled as an entering student for at least one-half of a full course load for an entering student in the associate degree or certificate program, as determined by the coordinating board; (5) have applied for any available financial aid or assistance; and (6) comply with any additional nonacademic requirement adopted by the coordinating board under this subchapter. (b) A person is not eligible to receive a [TEXAS] grant under this subchapter [II] if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has: (1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court and at least two years have elapsed from the date of the receipt or completion; or (2) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a grant under this subchapter. (c) A person is not eligible to receive a [TEXAS] grant under this subchapter [II] if the person has been granted an associate or baccalaureate degree. (d) A person may not receive a [TEXAS] grant under this subchapter [II] for more than 75 semester credit hours or the equivalent. (e) A person may not receive a [TEXAS] grant under this subchapter [II] if the person is eligible for a TEXAS grant. (f) A person's eligibility for a [TEXAS] grant under this subchapter [II] ends on the fourth anniversary of the initial award of a [TEXAS] grant under this subchapter [II] to the person and the person's enrollment in an eligible institution. SECTION 34. Section 56.405, Education Code, is amended to read as follows: Sec. 56.405. CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a [TEXAS] grant under this subchapter [II], a person may continue to receive a [TEXAS] grant under this subchapter [II] during each semester or term in which the person is enrolled at an eligible institution only if the person: (1) meets financial need requirements as defined by the coordinating board; (2) is enrolled in an associate degree or certificate program at an eligible institution; (3) is enrolled for at least one-half of a full course load for a student in an associate degree or certificate program, as determined by the coordinating board; (4) makes satisfactory academic progress toward an associate degree or certificate; and (5) complies with any additional nonacademic requirement adopted by the coordinating board. (b) A person is not eligible to continue to receive a [TEXAS] grant [II] under this section if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has: (1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court and at least two years have elapsed from the date of the receipt or completion; or (2) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a grant under this subchapter. (c) If a person fails to meet any of the requirements of Subsection (a) after the completion of any semester or term, the person may not receive a [TEXAS] grant under this subchapter [II] during the next semester or term in which the person enrolls. A person may become eligible to receive a [TEXAS] grant under this subchapter [II] in a subsequent semester or term if the person: (1) completes a semester or term during which the student is not eligible for a scholarship; and (2) meets all the requirements of Subsection (a). (d) For the purpose of this section, a person makes satisfactory academic progress toward an associate degree or certificate only if: (1) in the person's first academic year the person meets the satisfactory academic progress requirements of the institution at which the person is enrolled; and (2) in a subsequent academic year, the person: (A) [(1)] completes at least 75 percent of the semester credit hours attempted in the student's most recent academic year; and (B) has earned [(2) earns] an overall grade point average of at least 2.5 on a four-point scale or the equivalent on course work previously attempted at institutions of higher education. (e) A person who is eligible to receive a [TEXAS] grant under this subchapter [II] continues to remain eligible to receive the [TEXAS] grant [II] if the person enrolls in or transfers to another eligible institution. (f) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a grant under this subchapter, in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a grant under this subchapter: (1) while enrolled in a number of semester credit hours that is less than the number of semester credit hours required under Subsection (a)(3); or (2) if the student's grade point average or completion rate falls below the satisfactory academic progress requirements of Subsection (d). SECTION 35. Section 56.406, Education Code, is amended to read as follows: Sec. 56.406. GRANT USE. A person receiving a [TEXAS] grant under this subchapter [II] may use the money to pay any usual and customary cost of attendance at an eligible institution incurred by the student. The institution may disburse all or part of the proceeds of a [TEXAS] grant under this subchapter [II] to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid. SECTION 36. Subsections (a), (b), (c), (f), and (g), Section 56.407, Education Code, are amended to read as follows: (a) The amount of a [TEXAS] grant under this subchapter [II] for a student enrolled full-time at an eligible institution is the amount determined by the coordinating board as the average statewide amount of tuition and required fees that a resident student enrolled full-time in an associate degree or certificate program would be charged for that semester or term at eligible institutions. (b) The coordinating board may adopt rules that allow the coordinating board to increase or decrease, in proportion to the number of semester credit hours in which a student is enrolled, the amount of a [TEXAS] grant [II] 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 56.404(a)(4) or 56.405(a)(3). (c) The amount of a [TEXAS] grant under this subchapter [II] may not be reduced by any gift aid for which the person receiving the grant is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the total cost of attendance at an eligible institution. (f) An eligible institution may not: (1) charge a person attending the institution who also receives a [TEXAS] grant under this subchapter [II] an amount of tuition and required fees in excess of the amount of the [TEXAS] grant under this subchapter [II] received by the person; or (2) deny admission to or enrollment in the institution based on a person's eligibility to receive a [TEXAS] grant under this subchapter [II] or a person's receipt of a [TEXAS] grant under this subchapter [II]. (g) An institution may use other available sources of financial aid, other than a loan or a Pell grant, to cover any difference in the amount of a [TEXAS] grant under this subchapter [II] and the actual amount of tuition and required fees at the institution. SECTION 37. Subsection (b), Section 56.463, Education Code, is amended to read as follows: (b) Money in the Texas B-On-time student loan account may be used only to pay any costs of the coordinating board related to the operation of the Texas B-On-time loan program and as otherwise provided by this subchapter. SECTION 38. Subsection (b), Section 56.465, Education Code, is amended to read as follows: (b) The amount of tuition set aside under Subsection (a) shall be deposited to the credit of the Texas B-On-time student loan account established under Section 56.463 or to the interest and sinking fund established by the coordinating board under Section 52.91(b) in accordance with the resolution of the board establishing such fund. SECTION 39. Section 61.066, Education Code, is amended by adding Subsection (c) to read as follows: (c) The board shall conduct a biennial study to determine the total cost of attending each institution of higher education and the resources used by students to cover that cost, including the amounts of money received by students at each institution from the major sources of public and private financial aid, including grants, loans, scholarships, gifts, and work-study programs. In conducting the study, the board shall solicit information and comments from the financial aid office at each institution of higher education. Not later than November 1 of each even-numbered year, the board shall report the findings of the study to each legislative standing committee and subcommittee with primary jurisdiction over higher education. SECTION 40. Section 61.0776, Education Code, is amended by adding Subsection (f) to read as follows: (f) The board, in cooperation with the entities specified by Subsection (a) and the advisory committee established by Subsection (b), shall develop a comprehensive financial aid training program for public school counselors, employees of student financial aid offices of public and private or independent institutions of higher education, members of appropriate community-based organizations, and other appropriate persons. The board may adopt rules as necessary to administer the training program. The board shall design the training program to: (1) use the information required by Subsection (e) and any other information necessary to carry out this subdivision: (A) to inform persons receiving the training concerning: (i) the opportunities available to students for obtaining financial aid, including eligibility requirements; and (ii) the procedures for obtaining financial aid; and (B) to provide sufficient and accessible detail to enable the persons receiving the training to provide timely and consistent answers to the questions of students and their parents, conservators, or guardians concerning the opportunities and procedures; (2) teach methods to enable the persons receiving the training to effectively communicate financial aid information to students and their parents, conservators, or guardians; (3) support and promote the dissemination of financial aid information to students and their parents, conservators, or guardians throughout local areas; and (4) publicize the training and make the training easily available to public school counselors and other appropriate persons throughout this state. SECTION 41. Subchapter C, Chapter 61, Education Code, is amended by adding Section 61.088 to read as follows: Sec. 61.088. HIGHER EDUCATION ENROLLMENT ASSISTANCE PROGRAM. (a) To the extent that funds are available for the purpose, the board shall administer the Higher Education Enrollment Assistance Program. Under the program, the board shall: (1) provide information related to enrollment in public or private or independent institutions of higher education, including admissions and financial aid information, to prospective students in three areas of this state identified by the board as having a significant number of students who graduate from high school and do not attend an institution of higher education; and (2) assist those prospective students in completing applications related to enrollment in those institutions, including admissions and financial aid applications. (b) To the extent that funds are available for the purpose, the board shall expand the program to include additional areas identified by the board as meeting the criteria specified by Subsection (a). (c) The board shall provide the information and assistance required by this section at least twice each year at one or more appropriate locations in each area served by the program. (d) The board may coordinate with an institution of higher education or other entity to provide the information and assistance required by this section in each area served by the program. (e) Not later than August 31 of each year, the board shall submit to the legislature a report on the scope and effectiveness of the program. (f) The board shall adopt rules as necessary to implement this section. SECTION 42. Section 61.225, Education Code, is amended to read as follows: Sec. 61.225. ELIGIBILITY [QUALIFICATIONS] FOR GRANT; PERSONS AWARDED GRANTS BEFORE 2005-2006 ACADEMIC YEAR. (a) This section applies only to a person who initially received a tuition equalization grant for an academic period before the 2005-2006 academic year. (b) To be eligible for a tuition equalization grant, a person must: (1) be a Texas resident as defined by the coordinating board and meet, at a minimum, the resident requirements defined by law for Texas resident tuition in fully state-supported institutions of higher education; (2) be enrolled for at least one-half of a full course load conforming to an individual degree plan in an approved college or university; (3) be required to pay more tuition than is required at a public college or university and be charged no less than the regular tuition required of all students enrolled at the institution; (4) establish financial need in accordance with procedures and regulations of the coordinating board; (5) not be a recipient of any form of athletic scholarship; and (6) have complied with other requirements adopted by the coordinating board under this subchapter. (c) A grant to a part-time student under this section shall be made on a pro rata basis of a full-time equivalent. SECTION 43. Subchapter F, Chapter 61, Education Code, is amended by adding Section 61.2251 to read as follows: Sec. 61.2251. ELIGIBILITY FOR GRANT; PERSONS INITIALLY AWARDED GRANTS DURING OR AFTER 2005-2006 ACADEMIC YEAR. (a) This section does not apply to a person who initially received a tuition equalization grant for an academic period before the 2005-2006 academic year. (b) To be eligible for a tuition equalization grant in the first academic year in which the person receives the grant, a person must: (1) be a Texas resident as defined by the coordinating board and meet, at a minimum, the resident requirements defined by law for Texas resident tuition in fully state-supported institutions of higher education; (2) be enrolled for a full course load conforming to an individual degree plan in an approved college or university; (3) be required to pay more tuition than is required at a public college or university and be charged no less than the regular tuition required of all students enrolled at the institution; (4) establish financial need in accordance with procedures and regulations of the coordinating board; (5) not be a recipient of any form of athletic scholarship; and (6) have complied with other requirements adopted by the coordinating board under this subchapter. (c) After qualifying for a tuition equalization grant under Subsection (b), a person may receive a tuition equalization grant in a subsequent academic year in which the person is enrolled at an approved institution only if the person: (1) meets the requirements of Subsection (b); (2) completed at least: (A) 24 semester credit hours in the person's most recent academic year, if the person is enrolled in an undergraduate degree or certificate program; or (B) 18 semester credit hours in the person's most recent academic year, if the person is enrolled in a graduate or professional degree program; and (3) has earned an overall grade point average of at least 2.5 on a four-point scale or the equivalent on coursework previously attempted at public or private institutions of higher education. (d) Notwithstanding Subsections (b) and (c), a person's eligibility for a tuition equalization grant ends on: (1) the fifth anniversary of the initial award of a tuition equalization grant to the person, if the person is enrolled in an undergraduate degree or certificate program of four years or less; or (2) the sixth anniversary of the initial award of a tuition equalization grant to the person, if the person is enrolled in an undergraduate degree program of more than four years. (e) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a tuition equalization grant, in the event of a hardship or for other good cause shown, to receive a tuition equalization grant if the person does not: (1) complete the semester credit hours required by Subsection (c)(2); (2) maintain the grade point average required by Subsection (c)(3); or (3) complete the person's certificate or degree program within the period prescribed by Subsection (d). SECTION 44. Section 61.227, Education Code, is amended by adding Subsection (d) to read as follows: (d) Notwithstanding any other law, a student enrolled in a private or independent institution of higher education may not receive a tuition equalization grant under this subchapter and a TEXAS grant under Subchapter M, Chapter 56, for the same semester or other term, regardless of whether the student is otherwise eligible for both grants during that semester or term. A student who but for this subsection would be awarded both a tuition equalization grant and a TEXAS grant for the same semester or other term is entitled to receive only the grant of the greater amount. SECTION 45. Section 431.090, Government Code, is amended by amending Subsection (g) and adding Subsections (h) and (i) to read as follows: (g) Before each semester at a time determined by the adjutant general [Texas Higher Education Coordinating Board], the adjutant general shall certify to the appropriate public and private institutions of higher education [the coordinating board] a list of the persons to whom the adjutant general has awarded tuition assistance under this section for that semester. The amount of tuition assistance awarded by the adjutant general under this section may not exceed the amount of [After receipt of the list, the coordinating board shall determine whether sufficient] money [is] available to fund the tuition assistance awards [under Section 54.2155, Education Code. If the coordinating board determines that sufficient money is not available, the board shall notify the adjutant general, who shall reduce the number of awards according to the amount of money available and certify to the coordinating board a revised list of the persons to whom the adjutant general has awarded tuition assistance]. (h) From money appropriated for purposes of this section, the adjutant general shall authorize the comptroller to reimburse an institution of higher education in an amount equal to the amount of the tuition exemption the institution grants to a person under Section 54.2155, Education Code. (i) From money appropriated for purposes of this section, the adjutant general shall authorize the comptroller to make a grant to a person attending a private or independent institution of higher education to whom the adjutant general has awarded tuition assistance for the semester under this section. The amount of a grant under this subsection is an amount equal to the average amount of reimbursement the adjutant general estimates will be paid per student for the same semester under Subsection (h). SECTION 46. Subsection (b), Section 504.615, Transportation Code, is amended to read as follows: (b) After deduction of the department's administrative costs, the remainder of the fee for issuance of the license plates shall be deposited to the credit of the general revenue fund. The money may be used only for: (1) scholarships to students who demonstrate a need for financial assistance under Texas Higher Education Coordinating Board rule; or (2) Texas Public Educational Grants awarded under Subchapter C, Chapter 56, Education Code, if the fee is for the issuance of a license plate for a college described by Subsection (e)(1). SECTION 47. Subsection (h), Section 56.307, Education Code, is repealed. SECTION 48. The Texas Higher Education Coordinating Board shall, as necessary, adopt rules consistent with Sections 52.91, 56.463, and 56.465, Education Code, as amended 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 49. (a) The Texas Higher Education Coordinating Board shall conduct a study of the tuition exemptions and waivers authorized under Chapter 54, Education Code. The study must include an evaluation of the extent to which the tuition exemptions and waivers: (1) are a cost-effective and efficient method of providing financial assistance to students when compared to other types of available financial aid; (2) are consistent with one another in regard to eligibility requirements and application procedures; (3) are capable of being efficiently or properly administered by public institutions of higher education or other applicable entities; (4) effectively target students having substantial financial need or effectively accomplish the other purposes of those exemptions or waivers; and (5) distribute tuition assistance fairly among similarly situated students. (b) Not later than November 1, 2006, the Texas Higher Education Coordinating Board shall report the results of the study, including the board's recommendations for administrative or statutory changes to address the board's findings, to the governing board of each public institution of higher education and to the presiding officer of each legislative standing committee and subcommittee with primary jurisdiction over higher education. (c) This section expires January 1, 2007. SECTION 50. Subsection (f), Section 54.007, and Section 54.0071, Education Code, as added by this Act, apply beginning with the 2006 spring semester. SECTION 51. (a) The change in law made by this Act to Section 54.214, Education Code, applies to eligibility for an exemption from payment of tuition and fees for an academic period beginning with the 2005 fall semester and applies regardless of whether a person would have been exempt from payment of tuition and fees under Subsection (c), Section 54.214, Education Code, as that subsection existed before the amendment made by this Act. Eligibility for an exemption from payment of tuition and fees for an academic period before the 2005 fall semester is covered by the applicable law in effect before the effective date of this Act, and the former law is continued in effect for that purpose. (b) The Texas Higher Education Coordinating Board shall, as necessary, adopt rules consistent with Subsection (c), Section 54.214, Education Code, as amended 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. This subsection expires May 1, 2006. SECTION 52. The changes in law made by this Act to Section 54.2155, Education Code, and Section 431.090, Government Code, apply beginning with tuition assistance awards for the 2006-2007 academic year. Tuition assistance awards for an academic year before the 2006-2007 academic year are covered by the law in effect immediately preceding the effective date of this Act, and the former law is continued in effect for that purpose. SECTION 53. Sections 56.051 and 56.052, Education Code, as amended by this Act, apply beginning with the 2006 spring semester. The law governing emergency student loans in effect immediately before the effective date of this Act applies to those loans for a semester or term before the 2006 spring semester, and the former law is continued in effect for that purpose. SECTION 54. The changes in law made by this Act to Section 56.076, Education Code, apply only to an agreement entered into by an institution of higher education and an employer under that section on or after the effective date of this Act. SECTION 55. As soon as practicable after this Act takes effect, the Texas Higher Education Coordinating Board shall revise rules adopted under Section 56.209(a), Education Code, as necessary to conform to changes made by this Act to Subchapter K, Chapter 56, Education Code. For that purpose, the coordinating board may adopt the revisions to those rules in the manner provided by law for emergency rules. This section expires September 1, 2006. SECTION 56. The change in law made by this Act to Subchapter M, Chapter 56, Education Code, applies beginning with the 2005-2006 academic year, but does not affect the amount of or entitlement to any grant awarded before the effective date of this Act. SECTION 57. The change in law made by this Act relating to the eligibility of a person to receive a Texas Educational Opportunity Grant applies to each Texas Educational Opportunity Grant awarded on or after the effective date of this Act. SECTION 58. The Texas Higher Education Coordinating Board shall make the initial report required by Subsection (c), Section 61.066, Education Code, as added by this Act, not later than November 1, 2006. SECTION 59. The Texas Higher Education Coordinating Board shall implement the comprehensive financial aid training program under Subsection (f), Section 61.0776, Education Code, as added by this Act, not later than January 1, 2006. SECTION 60. The changes in law made by this Act by amending Sections 61.225 and 61.227, Education Code, and by adding Section 61.2251, Education Code, apply beginning with tuition equalization grants for the 2005-2006 academic year, but only for tuition equalization grants awarded on or after the effective date of this Act. A tuition equalization grant awarded before the effective date of this Act is governed by the law in effect immediately before the effective date, and the former law is continued in effect for that purpose. SECTION 61. This Act takes effect September 1, 2005.