By: Shapiro, West S.B. No. 1227
(In the Senate - Filed March 9, 2005; March 21, 2005, read
first time and referred to Subcommittee on Higher Education;
April 19, 2005, reported adversely, with favorable Committee
Substitute to Committee on Education; April 25, 2005, reported
adversely, with favorable Committee Substitute from Committee on
Education by the following vote: Yeas 7, Nays 0; April 25, 2005,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1227 By: Shapiro
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. 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 5. 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 6. 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 7. 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 8. 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. Subsection (e), Section 56.304, Education Code,
is amended to read as follows:
(e) Unless the person is provided additional time during
which the person may receive a TEXAS grant under this subsection, a
[A] person's eligibility for a TEXAS grant ends on the fifth [sixth]
anniversary of the initial award of a TEXAS grant to the person and
the person's enrollment in an eligible institution, if the person
is enrolled in a degree or certificate program of four years or
less, or on the sixth anniversary of the initial award of a TEXAS
grant to the person and the person's enrollment in an eligible
institution, if the person is enrolled in a degree program of more
than four years[, unless the person is provided additional time
during which the person may receive a TEXAS grant under this
subsection]. 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 under this subsection, 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 15. Subsections (e) and (g), Section 56.305,
Education Code, are amended to read as follows:
(e) For the purpose of this section, a person 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 [completes] at least 24 [75 percent
of the] semester credit hours [attempted] in the student's most
recent academic year; and
(B) has earned [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.
(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 number
of semester credit hours completed by the student [completion rate]
falls below the satisfactory academic progress requirements of
Subsection (e).
SECTION 16. 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 17. 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 18. 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 19. 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 20. 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 21. 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 22. 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 23. 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 24. 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 25. 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 26. 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 27. 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 28. Section 61.225, Education Code, is amended to
read as follows:
Sec. 61.225. ELIGIBILITY [QUALIFICATIONS] FOR GRANT.
(a) 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 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.
(b) After qualifying for a tuition equalization grant under
Subsection (a), 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 (a); and
(2) completed at least 24 semester credit hours in the
person's most recent academic year.
(c) Unless the student is provided additional time during
which the student may receive a tuition equalization grant under
Subsection (d), an undergraduate student's eligibility for a
tuition equalization grant ends:
(1) on the fifth anniversary of the initial award of a
tuition equalization grant to the student, if the student is
enrolled in an undergraduate degree or certificate program of four
years or less; or
(2) on the sixth anniversary of the initial award of a
tuition equalization grant to the student, if the student is
enrolled in an undergraduate degree program of more than four
years.
(d) The coordinating board shall adopt rules to provide an
undergraduate student who is otherwise eligible to receive a
tuition equalization grant additional time during which the student
may receive a tuition equalization grant in the event of a hardship
or other good cause shown that prevents the student from continuing
the student's enrollment during the period the student would
otherwise have been eligible under Subsection (c) to receive a
tuition equalization grant, including a showing of a severe illness
or other debilitating condition or that the student is or was
responsible for the care of a sick, injured, or needy person.
SECTION 29. 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 30. 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 31. Section 56.203, Education Code, as amended by
Chapter 365, Acts of the 78th Legislature, Regular Session, 2003,
is repealed.
SECTION 32. (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 October 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 33. Subsection (f), Section 54.007 and Section
54.0071, Education Code, as added by this Act, apply beginning with
the 2006 spring semester.
SECTION 34. (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 35. 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 36. 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 37. 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 38. 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 39. 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 40. 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 41. 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 42. The changes in law made by this Act to Section
61.225, 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 43. This Act takes effect September 1, 2005.
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