81R2503 KSD-F

By: Zaffirini S.B. No. 1797

A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Texas Future Scholars Pilot Program and the Workforce Shortage Education Loan Repayment Program and to the elimination of certain other student financial assistance programs.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 56, Education Code, is amended by adding Subchapter R to read as follows:

SUBCHAPTER R. TEXAS FUTURE SCHOLARS PILOT PROGRAM

Sec. 56.501. DEFINITIONS. In this subchapter:

(1) "Coordinating board" means the Texas Higher Education Coordinating Board.

(2) "Eligible institution of higher education" means a general academic teaching institution or other institution of higher education that offers undergraduate degree or certificate programs.

(3) "General academic teaching institution" has the meaning assigned by Section 61.003.

(4) "Qualifying middle school" means a public middle school from which a school district regularly assigns students to subsequently attend a public high school in this state that is designated by the coordinating board as having one of the lowest college attendance rates among public high schools in this state.

(5) "Pilot program" means the Texas Future Scholars Pilot Program (TFS) established under this subchapter.

Sec. 56.502. PILOT PROGRAM. The coordinating board shall establish the Texas Future Scholars Pilot Program (TFS) under which:

(1) the coordinating board purchases, on behalf of each participating student, tuition units under the prepaid tuition unit undergraduate education program established under Subchapter H, Chapter 54; and

(2) each participating student who is certified by the coordinating board as having successfully completed the requirements of the pilot program is entitled to apply the tuition units purchased on the student's behalf under Subdivision (1) to the cost of the student's tuition and required fees at an eligible institution of higher education.

Sec. 56.503. SELECTION OF PARTICIPATING STUDENTS; PURCHASE OF TUITION UNITS. (a) Not later than November 1 of each year, from among those students who qualify under Section 56.504, the coordinating board shall select not more than 500 students to participate in the pilot program.

(b) On behalf of each participating student, the coordinating board promptly shall purchase, under the prepaid tuition unit undergraduate education program, 400 Type II tuition units or another number of units sufficient to cover the cost of a student's undergraduate tuition and required fees for four academic years at an eligible institution of higher education.

Sec. 56.504. INITIAL ELIGIBILITY. To be initially eligible to participate in the pilot program, a student must:

(1) apply to the coordinating board in the form and manner prescribed by the coordinating board;

(2) be enrolled as a seventh grader at a qualifying middle school;

(3) be eligible for the national school lunch program;

(4) meet the requirements for a beneficiary designated under a prepaid tuition contract under Subchapter H, Chapter 54, prescribed by Section 54.756(c); and

(5) submit to the coordinating board the following written pledge, signed by the student and the student's custodial parent or guardian:

"I will graduate from a public high school in this state with a grade point average of at least 3.0 on a 4-point scale.

"I will successfully complete the recommended Texas high school curriculum, or a more advanced curriculum.

"I will not use illegal drugs or alcohol or commit a crime.

"I will take approved diagnostic college readiness assessments while enrolled in my junior and senior high school years and, if necessary, work to become college-ready before enrolling in college.

"I will apply for admission to an eligible Texas college or university.

"I will apply for federal financial aid not later than March 1 of my senior high school year and each subsequent year in which I am enrolled in college."

Sec. 56.505. ELIGIBILITY TO REDEEM TUITION UNITS. Notwithstanding any other provision of this subchapter or Subchapter H, Chapter 54, a student may redeem tuition units purchased on behalf of the student under this subchapter only if the coordinating board certifies that the student:

(1) has substantially fulfilled the student's pledge under Section 56.504;

(2) enrolled as a full-time student at an eligible institution of higher education not later than nine months after the date of the student's high school graduation;

(3) is a resident of this state on the date the student enrolls in the institution;

(4) has filed an accurate Free Application for Federal Student Aid (FAFSA);

(5) is determined to have financial need as indicated by the FAFSA;

(6) meets all financial aid and academic progress requirements of the institution in which the student is enrolled;

(7) if determined necessary by the coordinating board, is continuing to work toward achieving and demonstrating college readiness; and

(8) has not received a TEXAS grant.

Sec. 56.506. GRANTS FOR BOOKS AND SUPPLIES FOR CERTAIN STUDENTS. The coordinating board shall provide a grant in an amount not to exceed $1,000 per semester for each student redeeming tuition units under this subchapter who is enrolled in a degree program in a field designated by the coordinating board as experiencing an acute workforce shortage in this state, to be used by the student toward the costs of books and supplies for that semester.

Sec. 56.507. ACCEPTANCE OF FUNDS. The coordinating board may solicit and accept gifts, grants, and donations from any public or private source for the purposes of the pilot program.

Sec. 56.508. RULES. The coordinating board shall adopt rules for the administration of this subchapter.

SECTION 2. Chapter 61, Education Code, is amended by adding Subchapter FF to read as follows:

SUBCHAPTER FF. WORKFORCE SHORTAGE EDUCATION LOAN

REPAYMENT PROGRAM

Sec. 61.9771. DEFINITIONS. In this subchapter:

(1) "Program" means the Workforce Shortage Education Loan Repayment Program established under this subchapter.

(2) "Workforce shortage field" means an employment field designated by the commissioner of higher education, in consultation with the Texas Workforce Commission, as experiencing an acute workforce shortage in this state or in one or more particular geographic regions of this state.

Sec. 61.9772. REPAYMENT ASSISTANCE AUTHORIZED. The board may provide, using funds appropriated for that purpose and in accordance with this subchapter and board rules, assistance in the repayment of student loans for persons who apply and qualify for the assistance.

Sec. 61.9773. ELIGIBILITY. (a) To be eligible to receive repayment assistance under this subchapter, a person must:

(1) apply to the board;

(2) have completed at least one year of full-time employment in a workforce shortage field;

(3) be currently employed full-time in this state in a workforce shortage field; and

(4) if the person is employed in a field designated by the board as experiencing an acute workforce shortage only in a particular geographic region or regions of this state, be currently employed in that field in such a designated region.

(b) The board shall give priority in granting repayment assistance to a person who received repayment assistance under this subchapter for the preceding year. The priority terminates if the person does not apply for or becomes ineligible for that assistance.

Sec. 61.9774. ELIGIBLE LOANS. (a) The board may provide repayment assistance for the repayment of any student loan received by a student through any lender for the costs of attendance at an institution of higher education or a private or independent institution of higher education, including loans for undergraduate or graduate education.

(b) The board may not provide repayment assistance for a student loan that is in default at the time of the person's application.

Sec. 61.9775. REPAYMENT. (a) The board shall deliver any repayment made under this subchapter in a lump sum payable to the lender and the recipient, in accordance with any applicable federal law.

(b) A repayment made under this subchapter may be applied to the principal amount of the loan and to interest that accrues.

(c) The minimum amount of repayment assistance that may be awarded in one year to a person who qualifies for the assistance under Section 61.9773 is the lesser of:

(1) an amount determined by the commissioner of higher education as appropriate to further the purposes of this subchapter considering the total amount available to fund loan repayment assistance in that year; or

(2) the amount of principal and accrued interest that is due on the person's eligible loans in that year.

(d) A person may not receive repayment assistance under this subchapter for each of more than five years.

Sec. 61.9776. ADVISORY COMMITTEES. The commissioner of higher education may appoint advisory committees to assist in performing duties under this subchapter.

Sec. 61.9777. ACCEPTANCE OF FUNDS. The board may solicit and accept gifts, grants, and donations from any public or private source for the purposes of the program.

Sec. 61.9778. RULES. (a) The board shall adopt rules necessary for the administration of this subchapter, including a rule that sets a maximum amount of repayment assistance that may be received in one year by a person who qualifies for the assistance.

(b) The board shall distribute a copy of the rules adopted under this section and pertinent information in this subchapter to:

(1) each institution of higher education;

(2) any appropriate state agency; and

(3) any appropriate employer or professional association.

SECTION 3. 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) the Texas Future Scholars Pilot Program under Subchapter R, Chapter 56, Education Code [scholarships to students who demonstrate a need for financial assistance under Texas Higher Education Coordinating Board rule]; or

(2) the Workforce Shortage Education Loan Repayment Program under Subchapter FF, Chapter 61, Education Code [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 4. The following laws are repealed:

(1) Sections 54.212 and 54.214, Education Code;

(2) Subchapter K, Chapter 56, Education Code; and

(3) Subchapter L, Chapter 61, Education Code.

SECTION 5. Subchapter R, Chapter 56, Education Code, as added by this Act, applies beginning with the 2010-2011 school year.

SECTION 6. A person receiving a scholarship or other financial assistance under Subchapter K, Chapter 56, Education Code, or Subchapter L, Chapter 61, Education Code, before the effective date of this Act for the 2009-2010 academic year may continue to receive a scholarship or other financial assistance under that law as applicable to the person immediately before the effective date, until the person is no longer eligible for the scholarship or other assistance under Subchapter K, Chapter 56, Education Code, or Subchapter L, Chapter 61, Education Code, as the applicable law exists on January 1, 2009, and the former law is continued in effect for that purpose. The costs of the scholarships or other financial assistance authorized under this section shall be covered by appropriations for the Texas Future Scholars Pilot Program established by Subchapter R, Chapter 56, Education Code, as added by this Act, and for the Workforce Shortage Education Loan Repayment Program established by Subchapter FF, Chapter 61, Education Code, as added by this Act.

SECTION 7. The Texas Higher Education Coordinating Board shall adopt the rules required by Subchapter R, Chapter 56, Education Code, and Subchapter FF, Chapter 61, Education Code, as added by this Act, as soon as practicable after this Act takes effect. For that purpose, the coordinating board may adopt the initial rules in the manner provided by law for emergency rules.

SECTION 8. This Act takes effect September 1, 2009.