81R8740 KEL-D
 
  By: Watson S.B. No. 1765
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to financial assistance funded from the amounts of certain
  fees charged to students enrolled at public institutions of higher
  education.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 56, Education Code, is
  amended to read as follows:
  SUBCHAPTER B. FINANCIAL ASSISTANCE FUNDED
  FROM DESIGNATED TUITION AND STUDENT FEES
         Sec. 56.0105.  DEFINITION.  In this subchapter, "student
  fee" means a fee authorized by Section 54.504 or a fee or other
  charge authorized by Section 55.16(a). The term does not include an
  application fee or a fee for participation in a study abroad program
  or a field trip or other organized off-campus activity.
         Sec. 56.011.  RESIDENT UNDERGRADUATE STUDENT ASSISTANCE.
  (a)  The governing board of each institution of higher education
  shall cause to be set aside not less than 20 percent of the total
  amount of:
               (1)  any amount of tuition charged to a resident
  undergraduate student under Section 54.0513 in excess of $46 per
  semester credit hour;
               (2)  any student fee first imposed in the 2009 fall
  semester or a subsequent semester or term; and
               (3)  any student fee increase that takes effect in the
  2009 fall semester or a subsequent semester or term.
         (b)  The funds set aside under this section by an institution
  shall be used to provide financial assistance for resident
  undergraduate students enrolled in the institution.
         (c) [(b)]  To be eligible for assistance under this section,
  a student must establish financial need in accordance with rules
  and procedures established by the Texas Higher Education
  Coordinating Board. Priority shall be given to students who meet
  the coordinating board definition of financial need and whose cost
  for tuition and required fees is not met through other non-loan
  financial assistance programs.
         (d) [(c)]  The financial assistance provided under this
  section:
               (1)  may include grants, scholarships, or work-study
  programs; and
               (2)  may not include[,] student loans or[, and] student
  loan repayment assistance.
         Sec. 56.012.  RESIDENT GRADUATE STUDENT ASSISTANCE. (a)  
  The governing board of each institution of higher education shall
  cause to be set aside not less than 15 percent of the total amount
  of:
               (1)  any amount of tuition charged to a resident
  student enrolled in a graduate or professional degree program under
  Section 54.0513 in excess of $46 per semester credit hour;
               (2)  any student fee first imposed in the 2009 fall
  semester or a subsequent semester or term; and
               (3)  any student fee increase that takes effect in the
  2009 fall semester or a subsequent semester or term.
         (b)  The funds set aside under this section by an institution
  shall be used to provide financial assistance for resident students
  enrolled in graduate and professional degree programs at the
  institution.
         (c) [(b)]  To be eligible for assistance under this section,
  a student must establish financial need in accordance with rules
  and procedures established by the Texas Higher Education
  Coordinating Board. Priority shall be given to students who meet
  the coordinating board definition of financial need and whose cost
  for tuition and required fees is not met through other non-loan
  financial assistance programs.
         (d) [(c)]  The financial assistance provided under this
  section:
               (1)  may include grants, scholarships, or work-study
  programs; and
               (2)  may not include[,] student loans or[, and] student
  loan repayment assistance.
         Sec. 56.013.  INFORMATION REGARDING FINANCIAL ASSISTANCE
  FUNDED FROM DESIGNATED TUITION AND STUDENT FEES. The Texas Higher
  Education Coordinating Board shall disseminate to each public or
  accredited private high school in this state information regarding
  the financial assistance available under this subchapter and shall
  include information designed to educate high school students and
  the parents of those students on available opportunities and
  required preparation with respect to institutions of higher
  education. The coordinating board shall recommend a method of
  delivery of the information to parents and students under this
  section.
         SECTION 2.  The change in law made by this Act applies to
  student fees and charges charged beginning with the 2009 fall
  semester.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.