By:  Duncan                                                       S.B. No. 1696


A BILL TO BE ENTITLED

AN ACT

relating to a pilot project to provide additional capacity for 
higher education undergraduate education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter M, Chapter 56, Education Code, is 
amended by adding Section 56.3076 to read as follows:
	Sec. 56.3076.  Pilot Project to provide additional capacity 
for higher education undergraduate education.
	(a)  To the extent existing facilities, administrative 
infrastructure and faculty can address growing higher education 
undergraduate enrollment, and in order to mitigate the need for 
additional construction and the hiring of additional faculty, The 
Texas Higher Education Coordinating Board shall award grants in 
keeping with this Subchapter in an amount equal to the grant award 
under Section 56.307 to a student who:
		(1)  enrolls in either of the pilot project 
institutions established by this section who fulfills the 
eligibility requirements of Section 56.304; and
		(2)  meets all the requirements to receive a grant 
award under Section 56.307.
	(b)  The Texas Higher Education Coordinating Board shall 
award initial awards under this Subchapter to up to 1,000 students 
at Angelo State University and 600 students at Sul Ross State 
University for the academic year 2006-07 and shall award 
continuation awards to pilot project students in future years in 
accordance with Section 56.305.
	(c)  Students eligible for Texas Grants under the Pilot 
Project provisions of Section 56.0876 are also eligible to apply 
for and receive other financial aid that they may be qualified to 
receive at Angelo State University or Sul Ross State University.  
The sum of all financial aid may not exceed the student's financial 
need.
	(d)  Funding for awards to pilot project students shall be 
provided through Texas Grants and B-on-Time funding.
	(e)  The Higher Education Coordinating Board shall develop a 
criteria for evaluating the pilot project and will report on their 
findings to the 80th Legislature in the spring of 2007.  The pilot 
project will be evaluated by the legislature and a determination 
will be made by the 80th legislature concerning the continuation of 
the project.
	SECTION 2.  (a)  Section 1 of this Act applies beginning 
with the 2006-2007 academic year.
	(b)  The Texas Higher Education Coordinating Board shall 
adopt rules for the administration of Subchapter M, Chapter 56, 
Education Code, as added by this Act, as soon as practicable after 
this Act takes effect, but no later than December 1, 2005.  For that 
purpose, The Coordinating Board may adopt the initial rules in the 
manner provided by law for emergency rules.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the votes necessary for immediate effect, this 
Act takes effect September 1, 2005.