79R5640 KEL-D
By: Shapiro, West, Royce S.B. No. 1227
A BILL TO BE ENTITLED
AN ACT
relating to payment of the costs of attending public and private
postsecondary 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. Section 52.17(e), 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. Section 54.0065, Education Code, is amended by
amending Subsections (a) and (c) and adding Subsections (a-1) and
(a-2) 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.
(a-1) A qualified student who is not eligible for a tuition
rebate under Subsection (a) is eligible for a rebate of a portion of
the undergraduate tuition the student has paid if the student:
(1) first enrolled in an institution of higher
education before the 2005 fall semester;
(2) is awarded a baccalaureate degree from a general
academic teaching institution before the 2010 fall semester; and
(3) [(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.
(a-2) Subsection (a-1) and this subsection expire January
1, 2011.
(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 information necessary to determine
eligibility for a rebate under this section [total number of hours
attempted by the student] can be verified.
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.
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
initial amount of tuition and fees due on installment and
immediately release any remaining amount of the award to the
student.
SECTION 6. Subchapter A, Chapter 54, Education Code, is
amended by adding Section 54.0071 to read as follows:
Sec. 54.0071. PAYMENT OPTIONS FOR STUDENT WITH DELAYED
FINANCIAL AID. (a) The governing board of an institution of higher
education shall 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) The 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, the governing board shall apply the awards toward the
amount 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, the governing board shall postpone the due date as
provided by this section for each installment payment that becomes
due before the student receives the awards.
SECTION 7. Sections 54.010(a) and (c), Education Code, are
amended to read as follows:
(a) Except as provided by Subsection (c), the [The]
governing board of an institution of higher education may reduce
the amount of tuition charged to a student under this chapter to an
amount less than the amount of tuition otherwise required by this
chapter if the board:
(1) offers the tuition reduction to the student as
part of an institutional policy adopted by the board to:
(A) increase the average semester credit hour
course load of students enrolled at the institution; or
(B) improve the retention and graduation rate of
students enrolled at the institution; and
(2) determines that the student is:
(A) enrolled in, and making satisfactory
progress toward completion of, a degree program offered at the
institution; and
(B) enrolled in more than 12 [at least 15]
semester credit hours at the institution during the semester or
term for which the reduction is offered.
(c) The amount of tuition charged [reduction offered] to a
student under this section for a semester or term may not be less
than [exceed] the amount of tuition otherwise required to be [that
would have been] charged to the student under this chapter for
enrollment in 12 [three] semester credit hours during that semester
or term.
SECTION 8. Section 54.214(c), 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. Section 54.5021(b), 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 56.203, Education Code, as amended by
Chapter 1317, Acts of the 78th Legislature, Regular Session, 2003,
is amended by adding Subsection (a-1) to read as follows:
(a-1) The requirement provided by Subsection (a)(2) that a
person must have successfully completed the recommended or advanced
high school program established under Section 28.025 to be eligible
for the Early High School Graduation Scholarship program does not
apply to a person who entered grade nine before the 2003-2004 school
year. This subsection expires January 1, 2007.
SECTION 13. Section 56.304(a), Education Code, is amended
to read as follows:
(a) To be eligible initially for a TEXAS grant, a person
must:
(1) be a resident of this state as determined by
coordinating board rules;
(2) meet either of the following academic
requirements:
(A) be a graduate of a public or accredited
private high school in this state who graduated not earlier than the
1998-1999 school year and who completed the recommended or advanced
high school curriculum established under Section 28.002 or 28.025
or its equivalent; or
(B) have received an associate degree from an
eligible institution not earlier than May 1, 2001;
(3) meet financial need requirements as defined by the
coordinating board;
(4) be enrolled in an undergraduate degree or
certificate program at an eligible institution;
(5) be enrolled as:
(A) an entering undergraduate student for [at
least three-fourths of] a full course load for an entering
undergraduate student, as determined by the coordinating board, not
later than the 16th month after the date of the person's graduation
from high school; or
(B) an entering student for [at least
three-fourths of] a full course load for an undergraduate student
as determined by the coordinating board, not later than the 12th
month after the month the person receives an associate degree from
an eligible institution;
(6) have applied for any available financial aid or
assistance; and
(7) comply with any additional nonacademic
requirement adopted by the coordinating board under this
subchapter.
SECTION 14. Section 56.305(a), Education Code, is amended
to read as follows:
(a) After initially qualifying for a TEXAS grant, a person
may continue to receive a TEXAS grant 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 undergraduate degree or
certificate program at an eligible institution;
(3) is enrolled for [at least three-fourths of] a full
course load for an undergraduate student, as determined by the
coordinating board;
(4) makes satisfactory academic progress toward an
undergraduate degree or certificate; and
(5) complies with any additional nonacademic
requirement adopted by the coordinating board.
SECTION 15. Section 56.307, Education Code, is amended by
adding Subsections (l) and (m) to read as follows:
(l) If the money available for TEXAS grants in a period for
which grants are awarded is insufficient to provide grants to all
eligible applicants in the amounts specified by this section, the
coordinating board shall determine the amount of available money
for that period and shall:
(1) award grants in the amounts specified by this
section, or on a pro rata basis if the money is insufficient to
award the grants in those amounts, to:
(A) eligible applicants who have previously
completed fewer than four semesters or terms; and
(B) eligible applicants described by Section
56.305(d) who have previously completed fewer than six semesters or
terms; and
(2) award any remaining amounts on a pro rata basis to
otherwise eligible applicants who did not receive a grant under
Subdivision (1).
(m) 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 16. Section 56.3075(a), 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 17. Section 56.405, Education Code, is amended by
amending Subsection (d) and adding Subsection (f) to read as
follows:
(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.
(f) The coordinating board shall adopt rules to allow a
person who is otherwise eligible to receive a TEXAS grant II, 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 II:
(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 18. 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 19. 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 20. Section 504.615(b), 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 21. Section 56.203, Education Code, as amended by
Chapter 365, Acts of the 78th Legislature, Regular Session, 2003,
is repealed.
SECTION 22. Sections 54.007(f) and 54.0071, Education Code,
as added by this Act, apply beginning with the 2006 spring semester.
SECTION 23. The changes in law made by this Act to Section
54.010, Education Code, apply beginning with tuition and fees
charged by an institution of higher education for the 2005 fall
semester.
SECTION 24. (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 Section 54.214(c), 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 Section 54.214(c),
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 25. 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 26. The change in law made by this Act to Sections
56.304, 56.305, 56.307, and 56.3075, 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 27. The change in law made by this Act to Section
56.405, Education Code, applies to the eligibility of a person to
receive a TEXAS grant II awarded on or after the effective date of
this Act.
SECTION 28. The Texas Higher Education Coordinating Board
shall make the initial report required by Section 61.066(c),
Education Code, as added by this Act, not later than November 1,
2006.
SECTION 29. This Act takes effect September 1, 2005.