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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 use |
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B-On-time tuition set-asides to provide financial assistance to |
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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. Section 56.459, Education Code, is amended by |
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adding Subsection (g) to read as follows: |
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(g) An eligible institution that elects to retain the total |
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amount of tuition set aside for the Texas B-On-time loan program |
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under Section 56.465(a) shall determine the amount of each Texas |
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B-On-time loan awarded at that institution, not to exceed the |
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amount determined under Subsection (a), and shall use the money the |
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institution allocates to award Texas B-On-time loans to eligible |
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students enrolled at the institution according to financial need. |
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SECTION 2. 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 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 of each institution of higher education with a student |
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participation rate in the Texas B-On-time loan program that is less |
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than the average statewide student participation rate in the |
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program for institutions of higher education to develop and |
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implement strategies to improve student participation at the |
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institution, including strategies to better inform students and |
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prospective students about the program and to assist students to |
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qualify for and achieve maximum benefits under the program. |
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SECTION 3. Section 56.465(b), Education Code, is amended to |
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read as follows: |
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(b) Except as provided by Section 56.466, the [The] amount |
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of tuition set aside under Subsection (a) shall be deposited to the |
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credit of the Texas B-On-time student loan account established |
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under Section 56.463 or to the interest and sinking fund |
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established by the coordinating board under Section 52.91(b) in |
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accordance with the resolution of the board establishing such fund. |
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SECTION 4. Subchapter Q, Chapter 56, Education Code, is |
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amended by adding Section 56.466 to read as follows: |
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Sec. 56.466. OPTIONAL RETENTION OF TUITION SET ASIDE FOR |
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FINANCIAL AID. (a) Notwithstanding the other provisions of this |
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subchapter, not later than January 1 preceding an academic year, |
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the governing board of an eligible institution, other than a |
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private or independent institution of higher education, may elect |
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to retain all or a stated portion of the amount of tuition to be set |
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aside by students of the institution under Section 56.465(a) in the |
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following academic year. The institution shall promptly notify the |
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coordinating board of its election for each academic year. |
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(b) An eligible institution that under Subsection (a) |
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elects to retain an amount of tuition set aside at the institution |
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in an academic year may use that amount only to: |
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(1) provide Texas B-On-time loans to eligible students |
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of the institution; or |
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(2) provide financial assistance to students of the |
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institution in the same manner as the institution may use tuition |
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set aside at the institution under Section 56.011. |
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(b-1) An eligible institution may retain tuition set aside |
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at the institution under this section beginning with the tuition |
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set aside under Section 56.465 in the 2016-2017 academic year. This |
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subsection expires January 1, 2018. |
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(c) An eligible student enrolled at an institution that |
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elects to retain tuition under this section in an academic year may |
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not be awarded a Texas B-On-time loan in that academic year that is |
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funded from the Texas B-On-time student loan account unless the |
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eligible institution uses the entire amount of the tuition withheld |
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in that academic year to award Texas B-On-time loans to other |
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students of the institution. |
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(d) The coordinating board may prohibit institutions from |
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retaining tuition under Subsection (a) if that action would have a |
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direct adverse impact on the repayment of any bonds issued on or |
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before September 1, 2015, to provide funding to support the Texas |
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B-On-time loan program. |
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SECTION 5. (a) The change in law made by this Act to Section |
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56.459, Education Code, applies beginning with the 2016-2017 |
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academic year. |
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(b) The changes in law made by this Act to Subchapter Q, |
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Chapter 56, Education Code, do not affect the application of that |
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subchapter to tuition set aside under that subchapter for any |
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semester or other academic term before the 2016-2017 academic year, |
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and the former law is continued in effect for purposes of the use of |
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that amount under the Texas B-On-time loan program. |
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SECTION 6. 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, 2015. |