83R21496 KSD-F
 
  By: Branch H.B. No. 2755
 
  Substitute the following for H.B. No. 2755:
 
  By:  Branch C.S.H.B. No. 2755
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to student financial assistance for certain students of
  WGU Texas or similar online nonprofit colleges or universities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 56, Education Code, is
  amended by adding Section 56.009 to read as follows:
         Sec. 56.009.  FINANCIAL ASSISTANCE FOR STUDENTS ENROLLED AT
  WGU TEXAS OR SIMILAR ONLINE COLLEGES OR UNIVERSITIES. (a) In this
  section, "general academic teaching institution" and "private or
  independent institution of higher education" have the meanings
  assigned by Section 61.003.
         (b)  The Texas Higher Education Coordinating Board by rule
  shall:
               (1)  provide student financial assistance grants
  during the 2013-2014 and 2014-2015 academic years for students
  enrolled:
                     (A)  at WGU Texas, or a similar nonprofit,
  tax-exempt, regionally accredited college or university operating
  in accordance with a memorandum of understanding with this state
  pursuant to an executive order issued by the governor and offering
  competency-based, exclusively online or other distance education;
  and
                     (B)  in a degree program approved by the
  coordinating board for purposes of this section; and
               (2)  in consultation with representatives of the
  coordinating board's financial aid advisory committee,
  representatives of financial aid offices of institutions of higher
  education and private or independent institutions of higher
  education offering online or other distance education courses and
  programs similar to those offered by nonprofit colleges or
  universities described by Subdivision (1)(A), and representatives
  of financial aid offices of nonprofit colleges or universities
  described by Subdivision (1)(A):
                     (A)  conduct a study regarding, and prepare
  proposed draft legislation for, the creation of a state-funded
  student financial assistance program:
                           (i)  that is available only to students of
  nonprofit, tax-exempt, regionally accredited universities or
  colleges domiciled in this state that offer competency-based,
  exclusively online or other distance education; and
                           (ii)  under which the highest priority is
  given to awarding grants to those eligible students who demonstrate
  the greatest financial need; and
                     (B)  not later than October 1, 2014, submit to
  each standing committee of the legislature with primary
  jurisdiction of higher education a report of the results of the
  study conducted under Paragraph (A), together with the proposed
  draft legislation prepared under that paragraph.
         (c)  The rules adopted under Subsection (b)(1) must
  prescribe eligibility requirements for an award of a grant under
  that subdivision, including:
               (1)  a requirement that a student:
                     (A)  be a resident of this state; and
                     (B)  demonstrate financial need; and
               (2)  any additional eligibility requirements, such as
  academic achievement, satisfactory academic progress, course load,
  or course completion requirements, that the coordinating board
  considers reasonable and appropriate for students enrolled in
  online or other distance education programs.
         (d)  The amount of a grant awarded to a student under
  Subsection (b)(1) for an academic year may not exceed the lesser of:
               (1)  the amount prescribed under Section 61.227(c) as
  the maximum annual amount of a tuition equalization grant paid to a
  student; or
               (2)  the amount of the difference between:
                     (A)  the tuition charged to the student by the
  college or university in which the student is enrolled for that
  academic year; and
                     (B)  the average tuition charged to a similarly
  situated student by a general academic teaching institution for
  that academic year, as determined by the coordinating board.
         (e)  This section expires January 1, 2016.
         SECTION 2.  (a) The Texas Higher Education Coordinating
  Board shall adopt any rules necessary under Section 56.009,
  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.
         (b)  The coordinating board shall begin awarding grants in
  accordance with Section 56.009(b)(1), Education Code, as added by
  this Act, as soon as practicable after this Act takes effect.
         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, 2013.