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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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and to permitting an institution of higher education to retain |
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excess B-On-time tuition set-asides to provide financial |
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assistance to students of the institution. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Q, Chapter 56, Education Code, is |
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amended by adding Section 56.4601 to read as follows: |
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Sec. 56.4601. PROMOTING UNIFORM STUDENT PARTICIPATION IN |
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PROGRAM. (a) The coordinating board shall examine the |
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administration of the Texas B-On-time loan program at institutions |
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of higher education to identify the reasons for different rates of |
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student participation in the program at those institutions and |
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shall develop strategies for achieving a more uniform student |
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participation among those institutions. |
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(b) The coordinating board shall assist the financial aid |
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office and administration of each institution of higher education |
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with a student participation rate in the Texas B-On-time loan |
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program that is less than the average statewide student |
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participation rate in the program for institutions of higher |
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education to develop and implement strategies to improve student |
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participation at the institution, including strategies to better |
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inform students and prospective students about the program and to |
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assist students to qualify for and achieve maximum benefits under |
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the program. |
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SECTION 2. Section 56.465, Education Code, is amended by |
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amending Subsection (b) and adding Subsections (c), (c-1), and (d) |
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to read 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 in the preceding academic year the students of an |
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institution of higher education receive a percentage of the total |
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amount of Texas B-On-time loans made to students at all |
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institutions of higher education that is less than the percentage |
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of the total amount of tuition set aside under Subsection (a) in |
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that year at all institutions of higher education that was set aside |
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at that institution, the coordinating board shall permit the |
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institution to retain a portion of the tuition set aside at the |
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institution in the current academic year so that the amount of that |
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tuition set aside at that institution in the current academic year |
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that is deposited to the credit of the Texas B-On-time student loan |
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account or to the interest and sinking fund established under |
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Section 52.91(b) reflects the institution's percentage of the total |
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amount of Texas B-On-time loans made to students at all |
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institutions of higher education in the preceding academic year. |
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The institution may use the retained portion of the tuition set |
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aside under Subsection (a) only to provide financial assistance to |
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students of the institution in the same manner as tuition set aside |
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at the institution under Section 56.011. |
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(c-1) The coordinating board shall permit qualifying |
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institutions of higher education to retain a portion of the tuition |
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set aside at each institution under Subsection (c) beginning with |
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the tuition set aside under Subsection (a) in the 2013-2014 |
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academic year, based on the appropriate information regarding Texas |
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B-On-time loans and tuition set-asides for the 2012-2013 academic |
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year. This subsection expires January 1, 2015. |
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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 a direct adverse impact on the |
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repayment of bonds issued on or before September 1, 2013, to provide |
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funding to support the Texas B-On-time loan program. |
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SECTION 3. 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 4. 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. |