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A BILL TO BE ENTITLED
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AN ACT
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relating to the establishment of the Texas Competency-Based |
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Education Grant Program for certain students enrolled in |
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competency-based online or other distance education baccalaureate |
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degree programs at certain private institutions of higher |
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education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 56, Education Code, is amended by adding |
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Subchapter U to read as follows: |
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SUBCHAPTER U. TEXAS COMPETENCY-BASED EDUCATION GRANT PROGRAM |
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Sec. 56.601. DEFINITIONS. In this subchapter: |
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(1) "Coordinating board" means the Texas Higher |
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Education Coordinating Board. |
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(2) "Eligible institution" means a nonprofit, |
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tax-exempt, regionally accredited college or university located in |
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this state that offers competency-based online or other distance |
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education. |
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(3) "Expected family contribution" means the amount of |
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discretionary income that should be available to a student from the |
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resources of the student and of the student's family, as determined |
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by the coordinating board following the methodology prescribed by |
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the United States Department of Education for the purpose of |
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determining a student's eligibility for need-based student |
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financial assistance. |
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(4) "General academic teaching institution" has the |
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meaning assigned by Section 61.003. |
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(5) "Program" means the Texas Competency-Based |
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Education Grant Program established under this subchapter. |
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Sec. 56.602. PURPOSE. The purpose of the Texas |
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Competency-Based Education Grant Program is to provide financial |
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assistance to enable eligible students to enroll in |
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competency-based online or other distance education baccalaureate |
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degree programs at eligible institutions. |
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Sec. 56.603. ADMINISTRATION OF PROGRAM; PRIORITY FOR |
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FINANCIAL NEED. (a) The coordinating board shall administer the |
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program and adopt any rules necessary to implement the program or |
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this subchapter. The coordinating board shall consult with the |
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student financial aid officers of eligible institutions in |
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developing the rules. |
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(b) The total amount of grants awarded under the program may |
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not exceed the amount available for the program from |
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appropriations, gifts, grants, or other funds. |
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(c) In determining who should receive a grant under the |
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program, the coordinating board and the eligible institutions shall |
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give highest priority to awarding grants to students who |
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demonstrate the greatest financial need. |
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Sec. 56.604. INITIAL ELIGIBILITY FOR GRANT. (a) To be |
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eligible initially for a grant under the program, a person must: |
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(1) be a resident of this state as determined by |
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coordinating board rules; |
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(2) meet financial need requirements as defined by |
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coordinating board rules, including a requirement that the person's |
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expected family contribution for the academic year does not exceed |
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the maximum expected family contribution established for this |
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purpose by the coordinating board; |
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(3) be enrolled in a competency-based online or other |
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distance education baccalaureate degree program at an eligible |
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institution; |
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(4) not be receiving a grant or other gift aid under |
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any other state financial aid grant program for the same academic |
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period; and |
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(5) comply with any additional nonacademic |
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requirement adopted by the coordinating board under this |
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subchapter. |
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(b) A person is not eligible to receive a grant under the |
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program if the person has been granted a baccalaureate degree. |
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(c) A person's eligibility for a grant under the program |
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ends on the earliest of the following dates: |
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(1) the fourth anniversary of the initial award of a |
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grant under the program to the person and the person's enrollment in |
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an eligible institution, if at the time of the initial award the |
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person had earned less than 60 semester credit hours or an |
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equivalent number of competency units or credits toward the |
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person's degree; |
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(2) the second anniversary of the initial award of a |
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grant under the program to the person and the person's enrollment in |
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an eligible institution, if at the time of the initial award the |
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person had earned 60 or more semester credit hours or an equivalent |
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number of competency units or credits toward the person's degree; |
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or |
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(3) the date the person receives a baccalaureate |
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degree. |
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Sec. 56.605. CONTINUING ELIGIBILITY AND ACADEMIC |
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PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a |
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grant under the program, a person may continue to receive a grant |
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under the program during each semester or term in which the person |
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is enrolled at an eligible institution only if the person: |
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(1) meets the criteria for initial eligibility under |
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Section 56.604(a); |
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(2) makes satisfactory academic progress toward a |
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baccalaureate degree; and |
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(3) complies with any additional nonacademic |
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requirement adopted by the coordinating board. |
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(b) If a person fails to meet any of the requirements of |
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Subsection (a) after the completion of any semester or term, the |
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person may not receive a grant under the program during the next |
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semester or term in which the person enrolls. Unless the person's |
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eligibility for a grant expires under Section 56.604(c), a person |
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may become eligible to receive a grant under the program in a |
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subsequent semester or term if the person: |
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(1) completes at least 15 semester credit hours or an |
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equivalent number of competency units or credits in a semester or |
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term during which the student is not eligible for a grant; and |
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(2) meets all the requirements of Subsection (a). |
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(c) For the purpose of this section, a person makes |
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satisfactory academic progress toward a baccalaureate degree only |
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if the person completes at least 15 semester credit hours or an |
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equivalent number of competency units or credits in each semester |
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or term in which the person is enrolled. |
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(d) The coordinating board shall adopt rules to allow a |
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person who is otherwise eligible to receive a grant under the |
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program to receive a grant if the student's completion rate falls |
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below the satisfactory academic progress requirements of this |
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section in the event of a hardship or for other good cause shown, |
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including: |
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(1) a showing of a severe illness or other |
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debilitating condition that may affect the person's academic |
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performance; or |
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(2) a showing that the person is responsible for the |
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care of a sick, injured, or needy person and that the person's |
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provision of care may affect the person's academic performance. |
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Sec. 56.606. GRANT USE. A person receiving a grant under |
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the program may use the money to pay any usual and customary cost of |
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attendance at an eligible institution incurred by the student. The |
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institution may disburse all or part of the proceeds of a grant |
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under the program to an eligible person only if the tuition and |
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required fees incurred by the person at the institution have been |
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paid. |
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Sec. 56.607. GRANT AMOUNT. (a) The maximum annual amount |
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of a grant under the program for a full-time undergraduate student |
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equivalent enrolled at an eligible institution is an amount equal |
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to 75 percent of the average state appropriation for the state |
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fiscal biennium preceding the biennium in which the grant is |
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awarded for a full-time undergraduate student equivalent enrolled |
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at a general academic teaching institution, as determined by the |
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coordinating board. |
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(b) The coordinating board may adopt rules that allow the |
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coordinating board to increase or decrease, in proportion to the |
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number of semester credit hours or competency units or credits in |
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which a student is enrolled, the amount of a grant award to a |
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student who is enrolled in a number of semester credit hours or |
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competency units or credits in excess of or below 15 semester credit |
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hours or an equivalent number of competency units or credits. |
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Sec. 56.608. GRANT NOT TO AFFECT ADMISSION. An eligible |
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institution may not deny admission to or enrollment in the |
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institution based on a person's eligibility to receive a grant |
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under the program or a person's receipt of a grant under the |
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program. |
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SECTION 2. (a) The Texas Higher Education Coordinating |
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Board shall adopt rules to administer Subchapter U, Chapter 56, |
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Education Code, as added by this Act, as soon as practicable after |
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the effective date of this Act. For that purpose, the coordinating |
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board may adopt the initial rules in the manner provided by law for |
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emergency rules. |
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(b) The Texas Higher Education Coordinating Board shall |
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begin awarding scholarships under Subchapter U, Chapter 56, |
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Education Code, as added by this Act, for the first academic year |
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for which money is appropriated for that purpose, except that the |
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coordinating board may not award grants under that subchapter for |
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an academic year before the 2016-2017 academic year. |
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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, 2015. |