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A BILL TO BE ENTITLED
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AN ACT
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relating to the administration of the Texas B-On-time loan program |
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to permit a portion of tuition set-asides to be used to fund tuition |
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exemptions for veterans and other student financial assistance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 56.465, Education Code, is amended by |
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amending Subsection (b) and adding Subsections (c) and (d) to read |
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as follows: |
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(b) Subject to Subsection (c), the [The] amount of tuition |
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set aside under Subsection (a) shall be deposited to the credit of |
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the Texas B-On-time student loan account established under Section |
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56.463 or to the interest and sinking fund established by the |
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coordinating board under Section 52.91(b) in accordance with the |
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resolution of the board establishing such fund. |
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(c) If the amount of tuition set aside under Subsection (a) |
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at an institution of higher education in an academic year exceeds |
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the amount necessary to fund loans to students of the institution |
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under the Texas B-On-time loan program in that academic year, the |
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coordinating board shall permit the institution to retain the |
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portion of the tuition set aside at the institution that exceeds the |
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amount necessary to fund loans to students of the institution under |
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the program. The institution is not required to deposit that |
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portion of the tuition to the credit of the Texas B-On-time student |
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loan account or to the interest and sinking fund established under |
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Section 52.91(b). Any amount retained by the institution under |
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this subsection may be used only to fund exemptions for veterans and |
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their family members under Section 54.341. If the amount retained |
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exceeds the amount necessary to fully fund those exemptions, the |
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institution shall use any remaining amount to provide financial |
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assistance to students of the institution in the same manner as |
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tuition set aside at the institution under Section 56.011. |
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(d) Under Subsection (c), the coordinating board may not |
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permit institutions to retain a portion of tuition set aside under |
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Subsection (a) that would have an adverse impact on the repayment of |
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bonds issued to provide funding to support the Texas B-On-time loan |
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program. |
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SECTION 2. The change in law made by this Act to Section |
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56.465, Education Code, does not affect the application of that |
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section to tuition set aside under that section for any semester or |
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other academic term before the 2013 fall semester, and the former |
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law is continued in effect for purposes of the use of that amount |
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under the Texas B-On-time loan program. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2013. |