85R3739 MM-F
 
  By: Seliger S.B. No. 885
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to eligibility for a TEXAS grant and to administration of
  the TEXAS grant program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 56.303(f), Education Code, is amended to
  read as follows:
         (f)  Beginning with TEXAS grants awarded for the 2013-2014
  academic year, in determining who should receive an initial TEXAS
  grant, each eligible institution, in addition to giving priority as
  provided by Subsection (e), shall give highest priority to students
  who meet the eligibility criteria described by Section
  56.3041(a)(1)(A) [56.3041(2)(A)]. If there is money available in
  excess of the amount required to award an initial TEXAS grant to all
  students meeting those criteria, an eligible institution shall make
  awards to other students who meet the eligibility criteria
  described by Section 56.3043(a)(1)(A) [56.304(a)(2)(A)], provided
  that the institution continues to give priority to students as
  provided by Subsection (e).
         SECTION 2.  The heading to Section 56.304, Education Code,
  is amended to read as follows:
         Sec. 56.304.  GENERAL [INITIAL] ELIGIBILITY FOR GRANT.
         SECTION 3.  Sections 56.304(a), (e-1), and (h), Education
  Code, are amended to read as follows:
         (a)  To be eligible [initially] for a TEXAS grant, a person
  [who graduated from high school before May 1, 2013,] must:
               (1)  be a resident of this state as determined by
  coordinating board rules;
               (2)  [meet either of the following academic
  requirements:
                     [(A)     be a graduate of a public or accredited
  private high school in this state who graduated not earlier than the
  1998-1999 school year and who completed the recommended or advanced
  high school curriculum established under Section 28.002 or 28.025
  or its equivalent; or
                     [(B)     have received an associate degree from a
  public or private institution of higher education not earlier than
  May 1, 2001;
               [(3)]  meet financial need requirements as defined by
  the coordinating board;
               (3) [(4)]  be enrolled in a baccalaureate degree
  program at an eligible institution;
               (4)  subject to Sections 56.3041(a)(2) and
  56.3043(a)(2), be enrolled in at least three-fourths of a full
  course load for an undergraduate student, as determined by the
  coordinating board [(5)  be enrolled as:
                     [(A)     an entering undergraduate student for at
  least three-fourths of a full course load for an entering
  undergraduate student, as determined by the coordinating board, not
  later than the 16th month after the date of the person's graduation
  from high school; or
                     [(B)     an entering student for at least
  three-fourths of a full course load for an undergraduate student as
  determined by the coordinating board, not later than the 12th month
  after the month the person receives an associate degree from a
  public or private institution of higher education];
               (5) [(6)]  have applied for any available financial aid
  or assistance; and
               (6) [(7)]  comply with any additional nonacademic
  requirement adopted by the coordinating board under this
  subchapter.
         (e-1)  Unless a [If a person is initially awarded a TEXAS
  grant during or after the 2005 fall semester, unless the] person is
  provided additional time during which the person may receive a
  TEXAS grant under Subsection (e-2), the person's eligibility for a
  TEXAS grant ends on:
               (1)  the fifth anniversary of the initial award of a
  TEXAS grant to the person, if the person is enrolled in a degree
  program of four years; or
               (2)  the sixth anniversary of the initial award of a
  TEXAS grant to the person, if the person is enrolled in a degree
  program of more than four years.
         (h)  The coordinating board shall adopt rules to allow a
  person who is otherwise eligible to receive a TEXAS grant, in the
  event of a hardship or for other good cause shown, including a
  showing of a severe illness or other debilitating condition that
  may affect the person's academic performance or that the person is
  responsible for the care of a sick, injured, or needy person and
  that the person's provision of care may affect the person's academic
  performance, to receive a TEXAS grant while enrolled in a number of
  semester credit hours that is less than the number of semester
  credit hours required under Subsection (a)(4) [(a)(5)] or Section
  56.3041(a)(2) or 56.3043(a)(2) [56.3041(5)], as applicable. The
  coordinating board may not allow a person to receive a TEXAS grant
  while enrolled in fewer than six semester credit hours.
         SECTION 4.  Section 56.3041, Education Code, is amended to
  read as follows:
         Sec. 56.3041.  ADDITIONAL REQUIREMENTS REGARDING INITIAL
  ELIGIBILITY [OF PERSON GRADUATING FROM HIGH SCHOOL ON OR AFTER MAY
  1, 2013]. (a) In addition to the requirements under Section 56.304
  and except as provided by Section 56.3043, to [To] be eligible
  initially for a TEXAS grant, a person graduating from high school
  [on or after May 1, 2013,] and enrolling in an eligible institution
  must:
               (1)  [be a resident of this state as determined by
  coordinating board rules;
               [(2)]  meet the academic requirements prescribed by
  Paragraph (A), (B), (C), or (D) as follows:
                     (A)  be a graduate of a public or accredited
  private high school in this state who completed the foundation high
  school program established under Section 28.025 or its equivalent
  and have accomplished any two or more of the following:
                           (i)  successful completion of the course
  requirements of the international baccalaureate diploma program or
  earning of the equivalent of at least 12 semester credit hours of
  college credit in high school through courses described in Sections
  28.009(a)(1), (2), and (3);
                           (ii)  satisfaction of the Texas Success
  Initiative (TSI) college readiness benchmarks prescribed by the
  coordinating board under Section 51.3062(f) on any assessment
  instrument designated by the coordinating board under Section
  51.3062(c) or qualification for an exemption as described by
  Section 51.3062(p), (q), [or] (q-1), or (q-2);
                           (iii)  graduation in the top one-third of
  the person's high school graduating class or graduation from high
  school with a grade point average of at least 3.0 on a four-point
  scale or the equivalent; or
                           (iv)  completion for high school credit of
  at least one advanced mathematics course following the successful
  completion of an Algebra II course or at least one advanced career
  and technical or technology applications course;
                     (B)  have received an associate degree from a
  public or private institution of higher education;
                     (C)  be an undergraduate student who has:
                           (i)  previously attended another
  institution of higher education;
                           (ii)  received an initial Texas Educational
  Opportunity Grant under Subchapter P for the 2014 fall semester or a
  subsequent academic term;
                           (iii)  completed at least 24 semester credit
  hours at any institution or institutions of higher education; and
                           (iv)  earned an overall grade point average
  of at least 2.5 on a four-point scale or the equivalent on all
  course work previously attempted; or
                     (D)  if sufficient money is available, meet the
  eligibility criteria described by Section 56.3043(a)(1)(A)
  [56.304(a)(2)(A)]; and
               (2) [(3)     meet financial need requirements established
  by the coordinating board;
               [(4)     be enrolled in an undergraduate degree or
  certificate program at an eligible institution;
               [(5)]  except as provided under rules adopted under
  Section 56.304(h), be enrolled as:
                     (A)  an entering undergraduate student for at
  least three-fourths of a full course load, as determined by the
  coordinating board, not later than the 16th month after the
  calendar month in which the person graduated from high school;
                     (B)  an entering undergraduate student who
  entered military service not later than the first anniversary of
  the date the person graduated from high school and who enrolled for
  at least three-fourths of a full course load, as determined by the
  coordinating board, at the eligible institution not later than 12
  months after being honorably discharged from military service;
                     (C)  a continuing undergraduate student for at
  least three-fourths of a full course load, as determined by the
  coordinating board, not later than the 12th month after the
  calendar month in which the person received an associate degree
  from a public or private institution of higher education; or
                     (D)  an undergraduate student described by
  Subdivision (1)(C) [(2)(C)] who has never previously received a
  TEXAS grant[;
               [(6)     have applied for any available financial aid or
  assistance; and
               [(7)     comply with any additional nonacademic
  requirements adopted by the coordinating board under this
  subchapter].
         (b)  For purposes of Subsection (a)(1)(A) [(a)(2)(A)], a
  student who graduated under the recommended or advanced high school
  program is considered to have successfully completed the curriculum
  requirements of Section 51.803(a)(2)(A)(i). This subsection
  expires September 1, 2020.
         SECTION 5.  Sections 56.3042(a), (a-1), (c), and (d),
  Education Code, are amended to read as follows:
         (a)  If at the time an eligible institution awards TEXAS
  grants to initial recipients for an academic year an applicant has
  not completed high school or the applicant's final high school
  transcript is not yet available to the institution, the student is
  considered to have satisfied the eligibility requirements of
  Section 56.3041(a)(1)(A) [56.304(a)(2)(A) or 56.3041(2)(A)] if the
  student's available high school transcript indicates that at the
  time the transcript was prepared the student was on schedule to
  graduate from high school and to meet the eligibility requirements,
  as applicable to the student, in time to be eligible for a TEXAS
  grant for the academic year.
         (a-1)  If at the time an eligible institution awards TEXAS
  grants to initial recipients for an academic year an applicant who
  is an associate degree candidate has not completed that degree or
  the applicant's final college transcript is not yet available to
  the institution, the student is considered to have satisfied the
  associate degree requirement of Section 56.3041(a)(1)(B)
  [56.304(a)(2)(B) or 56.3041(2)(B)] if the student's available
  college transcript indicates that at the time the transcript was
  prepared the student was on schedule to complete the associate
  degree in time to be eligible for a TEXAS grant for the academic
  year.
         (c)  A person who is required to forgo or repay the amount of
  an initial TEXAS grant under Subsection (b) may subsequently become
  eligible to receive an initial TEXAS grant only [under Section
  56.304 or 56.3041] by satisfying the associate degree requirement
  prescribed by Section 56.3041(a)(1)(B) [56.304(a)(2)(B) or
  56.3041(2)(B)] and the other requirements of that section and
  Section 56.304 [those sections] applicable to the person at the
  time the person reapplies for the initial grant.
         (d)  A person who receives an initial TEXAS grant under
  Subsection (a) or (a-1) but does not satisfy the applicable
  eligibility requirement that the person was considered to have
  satisfied under the applicable subsection and who is not required
  to forgo or repay the amount of the grant under Subsection (b) may
  become eligible to receive a subsequent TEXAS grant [under Section
  56.305] only by satisfying the associate degree requirement
  prescribed by Section 56.3041(a)(1)(B) [56.304(a)(2)(B) or
  56.3041(2)(B), as applicable to the person,] in addition to the
  requirements of Sections 56.304 and [Section] 56.305 applicable to
  the person at the time the person applies for the subsequent grant.
         SECTION 6.  Subchapter M, Chapter 56, Education Code, is
  amended by adding Section 56.3043 to read as follows:
         Sec. 56.3043.  ADDITIONAL REQUIREMENTS REGARDING INITIAL
  ELIGIBILITY OF PERSON GRADUATING FROM HIGH SCHOOL BEFORE MAY 1,
  2013. (a) In addition to the requirements under Section 56.304, to
  be eligible initially for a TEXAS grant, a person who graduated from
  high school before May 1, 2013, must:
               (1)  meet either of the following academic
  requirements:
                     (A)  be a graduate of a public or accredited
  private high school in this state who graduated not earlier than the
  1998-1999 school year and who completed the recommended or advanced
  high school curriculum established under Section 28.002 or 28.025
  or its equivalent; or
                     (B)  have received an associate degree from a
  public or private institution of higher education not earlier than
  May 1, 2001; and
               (2)  except as provided under rules adopted under
  Section 56.304(h), be enrolled as:
                     (A)  an entering undergraduate student for at
  least three-fourths of a full course load for an entering
  undergraduate student, as determined by the coordinating board, not
  later than the 16th month after the date of the person's graduation
  from high school; or
                     (B)  an entering student for at least
  three-fourths of a full course load for an undergraduate student,
  as determined by the coordinating board, not later than the 12th
  month after the month the person received an associate degree from a
  public or private institution of higher education.
         (b)  The requirement in Subsection (a)(1)(A) that a person
  must have completed the recommended or advanced high school
  curriculum does not apply to a person who:
               (1)  attended a public high school in a school district
  that certifies to the commissioner of education that the high
  school did not offer all the necessary courses for a person to
  complete all parts of the recommended or advanced high school
  curriculum; and
               (2)  completed all courses at the high school offered
  toward the completion of the recommended or advanced high school
  curriculum.
         (c)  Not later than March 1 of each year, the commissioner of
  education shall provide to the coordinating board a list of all the
  public high schools that do not offer all the courses necessary to
  complete all parts of the recommended or advanced high school
  curriculum as described by Subsection (b)(1).
         SECTION 7.  Section 56.3045(b), Education Code, is amended
  to read as follows:
         (b)  Provided that the person meets the requirements
  described by Sections 56.304 and [Section] 56.305(a), a person to
  whom this section applies is eligible to receive an initial TEXAS
  grant in any academic year in which funding is sufficient to award
  initial TEXAS grants to eligible applicants for that year. The
  person's eligibility for an initial TEXAS grant under this section
  is not affected by:
               (1)  the period for which the person has been enrolled
  at an eligible institution; or
               (2)  any statutory changes to the eligibility
  requirements for initial TEXAS grants that are enacted after the
  person first established eligibility for an initial TEXAS grant as
  described by Subsection (a)(1).
         SECTION 8.  The heading to Section 56.305, Education Code,
  is amended to read as follows:
         Sec. 56.305.  CONTINUING ELIGIBILITY [AND ACADEMIC
  PERFORMANCE REQUIREMENTS].
         SECTION 9.  Sections 56.305(a), (c), (e-1), and (g),
  Education Code, are amended to read as follows:
         (a)  After initially qualifying for a TEXAS grant, a person
  may continue to receive a TEXAS grant during each semester or term
  in which the person is enrolled at an eligible institution only if,
  in addition to the requirements under Section 56.304, the person[:
               [(1)     meets financial need requirements as defined by
  the coordinating board;
               [(2)     is enrolled in a baccalaureate degree program at
  an eligible institution;
               [(3)     is enrolled for at least three-fourths of a full
  course load for an undergraduate student, as determined by the
  coordinating board;
               [(4)]  makes satisfactory academic progress toward a
  baccalaureate degree[; and
               [(5)     complies with any additional nonacademic
  requirement adopted by the coordinating board].
         (c)  If a person fails to meet any of the requirements of
  Subsection (a) and Section 56.304(a) after the completion of any
  semester or term, the person may not receive a TEXAS grant during
  the next semester or term in which the person enrolls. A person may
  become eligible to receive a TEXAS grant in a subsequent semester or
  term if the person:
               (1)  completes a semester or term during which the
  student is not eligible for a scholarship; and
               (2)  meets all the requirements of Subsection (a) and
  Section 56.304(a).
         (e-1)  For purposes of this section, a person [who is
  initially awarded a TEXAS grant during or after the 2005 fall
  semester] makes satisfactory academic progress toward an
  undergraduate degree or certificate only if:
               (1)  in the person's first academic year the person
  meets the satisfactory academic progress requirements of the
  institution at which the person is enrolled; and
               (2)  in a subsequent academic year, the person:
                     (A)  completed at least 24 semester credit hours
  in the student's most recent academic year; and
                     (B)  has earned an overall grade point average of
  at least 2.5 on a four-point scale or the equivalent on coursework
  previously attempted at institutions of higher education.
         (g)  The coordinating board shall adopt rules to allow a
  person who is otherwise eligible to receive a TEXAS grant, in the
  event of a hardship or for other good cause shown, including a
  showing of a severe illness or other debilitating condition that
  may affect the person's academic performance or that the person is
  responsible for the care of a sick, injured, or needy person and
  that the person's provision of care may affect the person's academic
  performance, to receive a TEXAS grant[:
               [(1)     while enrolled in a number of semester credit
  hours that is less than the number of semester credit hours required
  under Subsection (a)(3); or
               [(2)]  if the student's grade point average or the
  student's completion rate or number of semester credit hours
  completed, as applicable, falls below the satisfactory academic
  progress requirements of Subsection [(e) or] (e-1).
         SECTION 10.  Section 56.306, Education Code, is amended to
  read as follows:
         Sec. 56.306.  GRANT USE.  A person receiving a TEXAS grant
  may use the money to pay tuition and required fees [any usual and
  customary cost of attendance] at an eligible institution incurred
  by the student. The institution may not disburse any [all or] part
  of the proceeds of a TEXAS grant directly to an eligible person
  [only if the tuition and required fees incurred by the person at the
  institution have been paid].
         SECTION 11.  Section 56.307, Education Code, is amended by
  amending Subsections (a), (f), (i-1), and (j) and adding
  Subsections (b) and (j-1) to read as follows:
         (a)  The maximum amount of a TEXAS grant for a semester or
  term for a person enrolled [full-time] at an eligible institution
  is an amount not to exceed the lesser of: 
               (1)  the difference between:
                     (A)  the amount of tuition and required fees
  incurred by the person for that semester or term at the institution
  awarding the grant; and
                     (B)  the amount of the Pell Grant for which the
  person is eligible, if any; or
               (2)  the person's unmet financial need for that
  semester or term [determined by the coordinating board as the
  average statewide amount of tuition and required fees that a
  resident student enrolled full-time in a baccalaureate degree
  program would be charged for that semester or term at general
  academic teaching institutions].
         (b)  For purposes of Subsection (a)(1), if the amount of a
  person's Pell Grant exceeds the amount of tuition and required fees
  for a semester or term, the person is not eligible to receive a
  TEXAS grant for that semester or term.
         (f)  Except as otherwise provided by this subsection, the
  [The] amount of a TEXAS grant may not be reduced by any gift aid,
  other than a Pell Grant, for which the person receiving the grant is
  eligible. If[, unless] the total amount of a person's grant plus
  any gift aid received exceeds the person's [student's] financial
  need, the amount of the grant shall be reduced so that the total
  amount of the person's grant plus any gift aid received equals the
  person's financial need.
         (i-1)  A public institution of higher education may elect to
  award a TEXAS grant to any student in an amount that is less than the
  applicable amount established under Subsection (a) [or (e)].
         (j)  A public institution of higher education shall use other
  available sources of financial aid, other than a loan or work study,
  to cover any difference in the amount of a TEXAS grant awarded to
  the student and the actual amount of tuition and required fees at
  the institution if the difference results from:
               (1)  a reduction in the amount of a TEXAS grant under
  Subsection (i-1); or
               (2)  a deficiency in the amount of the grant as
  established under Subsection (a) [or (e), as applicable,] to cover
  the full amount of tuition and required fees charged to the student
  by the institution.
         (j-1)  A public institution of higher education is exempted
  from the requirements under Subsection (j) for any person who did
  not receive a priority for the award under Section 56.303(e).
         SECTION 12.  Sections 56.308(b) and (d), Education Code, are
  amended to read as follows:
         (b)  Each school district shall:
               (1)  notify its middle school students, junior high
  school students, and high school students, those students' teachers
  and school counselors, and those students' parents of the TEXAS
  grant program [and Teach for Texas grant programs], the eligibility
  requirements of the [each] program, the need for students to make
  informed curriculum choices to be prepared for success beyond high
  school, and sources of information on higher education admissions
  and financial aid in a manner that assists the district in
  implementing a strategy adopted by the district under Section
  11.252(a)(4); and
               (2)  ensure that each student's official transcript or
  diploma indicates whether the student has completed or is on
  schedule to complete:
                     (A)  the recommended or advanced high school
  curriculum required for grant eligibility under Section 28.002 or
  28.025; or
                     (B)  for a school district covered by Section
  56.3043(b)(1) [56.304(f)(1)], the required portion of the
  recommended or advanced high school curriculum in the manner
  described by Section 56.3043(b)(2) [56.304(f)(2)].
         (d)  In addition to the eligibility requirements of Sections
  [Section] 56.304, 56.3041, and 56.3043, a person who graduated from
  an accredited private high school is eligible to receive a grant
  under this subchapter only if the student's official transcript or
  diploma includes the information required as provided by
  Subsections (b)(2)(A) and (c).
         SECTION 13.  Sections 56.311(a), (b), (c), (c-1), (e), and
  (g), Education Code, are amended to read as follows:
         (a)  The Legislative Oversight Committee on the TEXAS grant
  program [and Teach for Texas grant program] is composed of six
  members as follows:
               (1)  three members of the senate appointed by the
  lieutenant governor; and
               (2)  three members of the house of representatives
  appointed by the speaker of the house of representatives.
         (b)  The committee shall:
               (1)  meet at least twice a year with the coordinating
  board; and
               (2)  receive information regarding rules relating to
  the TEXAS grant program [and Teach for Texas grant program] that
  have been adopted by the coordinating board or proposed for
  adoption by the coordinating board.
         (c)  The committee may request reports and other information
  from the coordinating board relating to the operation of the TEXAS
  grant program [and Teach for Texas grant program] by the
  coordinating board.
         (c-1)  The [Not later than September 1 of each year, the]
  coordinating board shall include in its annual report to the
  legislature on financial aid in this state [provide] a report to the
  committee regarding the operation of the TEXAS grant program,
  including information from the three preceding state fiscal years
  as follows:
               (1)  allocations of TEXAS grants by eligible
  institution, disaggregated by initial and subsequent awards;
               (2)  the number of TEXAS grants awarded to students
  disaggregated by race, ethnicity, and expected family
  contribution;
               (3)  disaggregated as required by Subdivision (2) and
  reported both on a statewide basis and for each eligible
  institution, the number of TEXAS grants awarded to students who
  meet:
                     (A)  [only the eligibility criteria described by
  Section 56.304; or
                     [(B)]  the eligibility criteria described by
  Section 56.3041(a)(1)(A) [56.3041(2)(A)]; or [and]
                     (B)  the eligibility criteria described by
  Section 56.3043(a)(1)(A); and
               (4)  the persistence, retention, and graduation rates
  of students receiving TEXAS grants.
         (e)  The committee shall monitor the operation of the TEXAS
  grant program [and Teach for Texas grant program], with emphasis on
  the manner of the award of grants, the number of grants awarded, and
  the educational progress made by persons who have received grants
  under the program [those programs].
         (g)  The report shall include identification of any problems
  in the TEXAS grant program [and Teach for Texas grant program] with
  recommended solutions for the coordinating board and for
  legislative action.
         SECTION 14.  The following sections of the Education Code
  are repealed:
               (1)  Section 56.303(d-1);
               (2)  Sections 56.304(e), (f), and (g);
               (3)  Sections 56.305(b), (d), and (e);
               (4)  Sections 56.307(d-1), (e), and (g); and
               (5)  Section 56.3071.
         SECTION 15.  The changes in law made by this Act apply
  beginning with initial or subsequent TEXAS grants awarded for the
  2018 fall semester.  Initial or subsequent TEXAS grants awarded for
  a semester or term before the 2018 fall semester are governed by the
  applicable law in effect immediately before the effective date of
  this Act, and the former law is continued in effect for that
  purpose.
         SECTION 16.  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, 2017.