S.B. No. 1158
 
 
 
 
AN ACT
  relating to higher education for veterans and their families.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 54.341, Education Code, is amended by
  amending Subsections (a-2), (b), (d), (h), (i), (k), (k-1), (l),
  (m), and (n) and adding Subsections (a-4) and (o) to read as
  follows:
         (a-2)  The exemptions provided for in Subsection (a) also
  apply to the spouse of:
               (1)  a member of the armed forces of the United States:
                     (A)  who was killed in action;
                     (B)  who died while in service;
                     (C)  who is missing in action;
                     (D)  whose death is documented to be directly
  caused by illness or injury connected with service in the armed
  forces of the United States; or
                     (E)  who became totally and permanently disabled
  or meets the eligibility requirements for individual
  unemployability [for purposes of employability] according to the
  disability ratings of the Department of Veterans Affairs as a
  result of a service-related injury; or
               (2)  a member of the Texas National Guard or the Texas
  Air National Guard who:
                     (A)  was killed since January 1, 1946, while on
  active duty either in the service of this state or the United
  States; or
                     (B)  is totally and permanently disabled or meets
  the eligibility requirements for individual unemployability [for
  purposes of employability] according to the disability ratings of
  the Department of Veterans Affairs, regardless of whether the
  member is eligible to receive disability benefits from the
  department, as a result of a service-related injury suffered since
  January 1, 1946, while on active duty either in the service of this
  state or the United States.
         (a-4)  A person who before the 2014-2015 academic year
  received an exemption under this section continues to be eligible
  for the exemption provided by this section as this section existed
  on January 1, 2013.
         (b)  The exemptions provided for in Subsection (a) also apply
  to:
               (1)  the children of members of the armed forces of the
  United States:
                     (A)  who are or were killed in action;
                     (B)  who die or died while in service;
                     (C)  who are missing in action;
                     (D)  whose death is documented to be directly
  caused by illness or injury connected with service in the armed
  forces of the United States; or
                     (E)  who became totally and permanently disabled
  or meet the eligibility requirements for individual
  unemployability [for purposes of employability] according to the
  disability ratings of the Department of Veterans Affairs as a
  result of a service-related injury; and
               (2)  the children of members of the Texas National
  Guard and the Texas Air National Guard who:
                     (A)  were killed since January 1, 1946, while on
  active duty either in the service of their state or the United
  States; or
                     (B)  are totally and permanently disabled or meet
  the eligibility requirements for individual unemployability [for
  purposes of employability] according to the disability ratings of
  the Department of Veterans Affairs, regardless of whether the
  members are eligible to receive disability benefits from the
  department, as a result of a service-related injury suffered since
  January 1, 1946, while on active duty either in the service of this
  state or the United States.
         (d)  The governing board of each institution of higher
  education granting an exemption under this section shall require
  each applicant claiming the exemption to submit to the institution,
  in the form and manner prescribed by the Texas Veterans Commission
  for purposes of this section under Section 434.0079(b), Government
  Code, an application for the exemption and necessary [satisfactory]
  evidence that the applicant qualifies for the exemption not later
  than the last class date of the semester or term to which the
  exemption applies, except that the governing board may encourage
  the submission of an application and evidence by the official day of
  record for the semester or term to which the exemption applies on
  which the institution must determine the enrollment that is
  reported to the Texas Higher Education Coordinating Board [one year
  after the earlier of the date the institution:
               [(1)     provides written notice to the applicant of the
  applicant's eligibility for the exemption; or
               [(2)     receives a written acknowledgement from the
  applicant evidencing the applicant's awareness of the applicant's
  eligibility for the exemption].
         (h)  The governing board of each institution of higher
  education shall electronically report to the Texas Veterans
  Commission [Higher Education Coordinating Board] the information
  required by Section 434.00791, Government Code, [61.0516] relating
  to each individual receiving an exemption from fees and charges
  under Subsection (a), (a-2), [or] (b), or (k).  The institution
  shall report the information not later than January 31 [December
  31] of each year for the fall semester, June 30 [May 31] of each year
  for the spring semester, and September 30 of each year for the
  summer session.
         (i)  The Texas Veterans Commission [Texas Higher Education
  Coordinating Board] may adopt rules to provide for the efficient
  and uniform application of this section. In developing rules under
  this subsection, the commission shall consult with the Texas Higher
  Education Coordinating Board and institutions of higher education.
         (k)  The Texas Veterans Commission [Higher Education
  Coordinating Board] by rule shall prescribe procedures to allow:
               (1)  a person who becomes eligible for an exemption
  provided by Subsection (a) to waive the person's right to any unused
  portion of the [maximum] number of cumulative credit hours for
  which the person could receive the exemption and assign the
  exemption for the unused portion of those credit hours to a child of
  the person; and
               (2)  following the death of a person who becomes
  eligible for an exemption provided by Subsection (a), the
  assignment of the exemption for the unused portion of the credit
  hours to a child of the person, to be made by the person's spouse or
  by the conservator, guardian, custodian, or other legally
  designated caretaker of the child, if the child does not otherwise
  qualify for an exemption under Subsection (b).
         (k-1)  The procedures under Subsection (k) must provide:
               (1)  the manner in which a person may waive the
  exemption;
               (2)  the manner in which a child may be designated to
  receive the exemption;
               (3)  a procedure permitting the designation of a
  different child to receive the exemption if the child previously
  designated to receive the exemption did not use the exemption under
  this section for all of the assigned portion of credit hours; [and]
               (4)  a method of documentation to enable institutions
  of higher education to determine the eligibility of the designated
  child to receive the exemption; and
               (5)  a procedure permitting a person who waived the
  exemption and designated a child to receive the exemption to revoke
  that designation as to any unused portion of the assigned credit
  hours.
         (l)  To be eligible to receive an exemption under Subsection
  (k), the child must:
               (1)  be a student who is classified as a resident under
  Subchapter B when the child enrolls in an institution of higher
  education; [and]
               (2)  as a graduate or undergraduate student, maintain a
  grade point average that satisfies the grade point average
  requirement for making [make] satisfactory academic progress in a
  degree, certificate, or continuing education program as determined
  by the institution at which the child is enrolled in accordance with
  the institution's policy regarding eligibility for [of the
  institution's] financial aid; and
               (3)  be 25 years of age or younger on the first day of
  the semester or other academic term for which the exemption is
  claimed [department, except that the institution may not require
  the child to enroll in a minimum course load].
         (m)  For purposes of this section, a person is the child of
  another person if [the person is 25 years of age or younger on the
  first day of the semester or other academic term for which the
  exemption is claimed and]:
               (1)  the person is the stepchild or the biological or
  adopted child of the other person; or
               (2)  the other person claimed the person as a dependent
  on a federal income tax return filed for the preceding year or will
  claim the person as a dependent on a federal income tax return for
  the current year.
         (n)  The Texas Veterans Commission [Higher Education
  Coordinating Board] by rule shall prescribe procedures by which a
  child assigned an exemption under Subsection (k) who suffered from
  a severe illness or other debilitating condition that affected the
  child's ability to use the exemption before reaching the age
  described by Subsection (l)(3) [(m)] may be granted additional time
  to use the exemption corresponding to the time the child was unable
  to use the exemption because of the illness or condition.
         (o)  The Texas Higher Education Coordinating Board and the
  Texas Veterans Commission shall coordinate to provide each
  respective agency with any information required to ensure the
  proper administration of this section and the proper execution of
  each agency's statutory responsibilities concerning this section.
         SECTION 2.  Subchapter D, Chapter 54, Education Code, is
  amended by adding Section 54.3411 to read as follows:
         Sec. 54.3411.  PERMANENT FUND SUPPORTING MILITARY AND
  VETERANS EXEMPTIONS. (a)  In this section, "trust company" means
  the Texas Treasury Safekeeping Trust Company.
         (b)  The permanent fund supporting military and veterans
  exemptions is a special fund in the treasury outside the general
  revenue fund.  The fund is composed of:
               (1)  money transferred or appropriated to the fund by
  the legislature;
               (2)  gifts and grants contributed to the fund; and
               (3)  the returns received from investment of money in
  the fund.
         (c)  The trust company shall administer the fund. The trust
  company shall determine the amount available for distribution from
  the fund, determined in accordance with a distribution policy that
  is adopted by the comptroller and designed to preserve the
  purchasing power of the fund's assets and to provide a stable and
  predictable stream of annual distributions. Expenses of managing
  the fund's assets shall be paid from the fund.  Except as provided
  by this section, money in the fund may not be used for any purpose.  
  Sections 403.095 and 404.071, Government Code, do not apply to the
  fund.
         (d)  In managing the assets of the fund, through procedures
  and subject to restrictions the trust company considers
  appropriate, the trust company may acquire, exchange, sell,
  supervise, manage, or retain any kind of investment that a prudent
  investor, exercising reasonable care, skill, and caution, would
  acquire or retain in light of the purposes, terms, distribution
  requirements, and other circumstances of the fund then prevailing,
  taking into consideration the investment of all the assets of the
  fund rather than a single investment.
         (e)  The amount available for distribution from the fund may
  be appropriated only to offset the cost to institutions of higher
  education of the exemptions required by Section 54.341(k).  The
  amount appropriated shall be distributed to eligible institutions
  in proportion to each institution's respective share of the
  aggregate cost to all institutions of the exemptions required by
  Section 54.341(k), as determined by the Legislative Budget Board.  
  The amount appropriated shall be distributed annually to each
  eligible institution of higher education.
         (f)  The governing board of an institution of higher
  education entitled to receive money under this section may solicit
  and accept gifts and grants to the fund. A gift or grant to the fund
  must be distributed and appropriated for the purposes of the fund,
  subject to any limitation or requirement placed on the gift or grant
  by the donor or granting entity.
         SECTION 3.  Subchapter A, Chapter 434, Government Code, is
  amended by adding Section 434.0079 to read as follows:
         Sec. 434.0079.  DUTIES REGARDING CERTAIN TUITION AND FEE
  EXEMPTIONS FOR VETERANS AND FAMILY MEMBERS. (a)  The commission,
  through its veteran education program, shall assist veterans and
  their family members in claiming and qualifying for exemptions from
  the payment of tuition and fees at institutions of higher education
  under Section 54.341, Education Code.
         (b)  The commission shall establish the application and
  necessary evidence requirements for a person to claim an exemption
  under Section 54.341, Education Code, at an institution of higher
  education.
         (c)  The commission shall adopt rules governing the
  coordination of federal and state benefits of a person eligible to
  receive an exemption under Section 54.341(k), Education Code,
  including rules governing:
               (1)  the total number of credit hours assigned under
  that section that a person may apply to an individual degree or
  certificate program, consistent with the standards of the
  appropriate recognized regional accrediting agency; and
               (2)  the application of the assigned exemption to
  credit hours for which the institution of higher education does not
  receive state funding.
         SECTION 4.  Section 61.0516, Education Code, is transferred
  to Subchapter A, Chapter 434, Government Code, redesignated as
  Section 434.00791, Government Code, and amended to read as follows:
         Sec. 434.00791  [61.0516].  ELECTRONIC SYSTEM TO MONITOR
  TUITION EXEMPTIONS FOR VETERANS AND FAMILY MEMBERS [DEPENDENTS].
  (a)  In this section, "institution of higher education" has the
  meaning assigned by Section 61.003, Education Code.
         (b)  The commission [board] shall ensure [develop] a system
  to electronically monitor the use of tuition and fee exemptions at
  institutions of higher education under Section 54.341, Education
  Code, is developed. The system must allow the commission [board] to
  electronically receive, for each semester, the following
  information from institutions of higher education:
               (1)  the name of the institution;
               (2)  the name, identification number, and date of birth
  of each individual attending the institution and receiving benefits
  for the semester under Section 54.341, Education Code;
               (3)  for each individual receiving benefits, the number
  of credit hours for which the individual received an exemption for
  the semester;
               (4)  for each individual receiving benefits at the
  institution during the semester, the total cumulative number of
  credit hours for which the individual has received an exemption at
  the institution; and
               (5)  any other information required by the commission
  [board].
         (c)  Not later than January 1, 2014, the Texas Higher
  Education Coordinating Board, under an agreement with the
  commission, shall provide access to the system developed by the
  coordinating board that meets the requirements of this section.
  This subsection expires September 1, 2015.
         SECTION 5.  Chapter 434, Government Code, is amended by
  adding Subchapters F and G to read as follows:
  SUBCHAPTER F. VETERAN EDUCATION EXCELLENCE RECOGNITION AWARD
  NETWORK
         Sec. 434.251.  DEFINITIONS. In this subchapter:
               (1)  "Commission" means the Texas Veterans Commission.
               (2)  "Institution of higher education" has the meaning
  assigned by Section 61.003, Education Code.
         Sec. 434.252.  VETERAN EDUCATION EXCELLENCE RECOGNITION
  AWARD NETWORK. (a)  The commission by rule shall establish an
  award program under which institutions of higher education may
  receive recognition from the commission for excellence in providing
  education and related services to veterans.
         (b)  For purposes of receiving an award under Subsection (a),
  the commission shall evaluate an institution of higher education
  regarding, as applicable, the existence and quality at the
  institution of:
               (1)  a centralized place for students who are veterans
  to meet or find assistance and information;
               (2)  an institution employee who serves as a central
  point of contact for students who are veterans;
               (3)  a United States Department of Veterans Affairs
  work-study program;
               (4)  admissions and enrollment policies for veterans;
               (5)  new student orientation and courses for veterans;
               (6)  a student organization for veterans;
               (7)  academic support services for students who are
  veterans;
               (8)  mental health and disability services;
               (9)  a housing policy that applies to veterans;
               (10)  faculty and staff training on issues affecting
  students who are veterans;
               (11)  career services for students who are veterans;
  and
               (12)  any other criteria considered necessary or
  appropriate by the commission.
         Sec. 434.253.  RULEMAKING AUTHORITY. The commission may
  adopt rules as necessary to administer this subchapter. In
  developing rules under this section, the commission shall consult
  with the Texas Higher Education Coordinating Board and institutions
  of higher education.
  SUBCHAPTER G. VETERANS EDUCATION COUNSELORS PROGRAM
         Sec. 434.301.  DEFINITIONS. In this subchapter:
               (1)  "Commission" means the Texas Veterans Commission.
               (2)  "Institution of higher education" has the meaning
  assigned by Section 61.003, Education Code.
         Sec. 434.302.  VETERANS EDUCATION COUNSELORS. The
  commission shall employ veterans education counselors. The
  veterans education counselors shall:
               (1)  work with institutions of higher education and any
  existing veterans programs at those institutions to:
                     (A)  create a hospitable and supportive
  environment for veterans;
                     (B)  enhance awareness of and encourage
  participation in veterans educational programs and commission
  programs providing other services to veterans, including
  employment and claims assistance services;
                     (C)  develop programs providing ancillary
  assistance to veterans based on the unique needs of veterans and
  their family members;
                     (D)  ensure that veterans successfully complete
  their education; and
                     (E)  promote the establishment of a student
  veterans group on each campus of those institutions;
               (2)  work with local, state, and national veterans
  groups, including the Veterans of Foreign Wars and the American
  Legion, to promote educational opportunities and benefits to the
  veteran population;
               (3)  work with local workforce development boards to:
                     (A)  ensure that the veterans education
  counselors are aware of available nontraditional educational
  opportunities, including on-the-job training programs and
  apprenticeships; and
                     (B)  advise employers of potential opportunities
  to create on-the-job training programs for veterans;
               (4)  work with education services officers at military
  installations to encourage active duty members of the armed forces
  of the United States and veterans to use federal and state
  educational benefits;
               (5)  create and manage publicity campaigns in concert
  with the commission and institutions of higher education to promote
  the use of education benefits under the federal Post-9/11 Veterans
  Educational Assistance Act of 2008 (38 U.S.C. Section 3301 et
  seq.), the tuition exemption program for veterans and their family
  members under Section 54.341, Education Code, and any other
  education benefit for veterans or their family members under
  federal or state law;
               (6)  support programs to assist students who are combat
  veterans in readjusting and reintegrating into a noncombat
  environment;
               (7)  maintain statistical information regarding
  demographics of veterans assisted, application success, program
  completion rates, dropout rates, and reasons for success or
  failure, as appropriate; and
               (8)  perform other activities, as assigned by the
  commission, to enhance the educational opportunities of veterans
  and their family members.
         Sec. 434.303.  SUPPORT FROM INSTITUTIONS OF HIGHER
  EDUCATION. Each institution of higher education shall cooperate
  with the commission to provide information, as permitted by law,
  related to student veterans at the institution, provide access to
  veteran resource centers or other student meeting areas, and
  otherwise support the work of veterans education counselors.
         Sec. 434.304.  RULEMAKING AUTHORITY. The commission may
  adopt rules to implement this subchapter. In developing rules
  under this section, the commission shall consult with the Texas
  Higher Education Coordinating Board and institutions of higher
  education.
         SECTION 6.  Subdivision (4), Subsection (b), Section 9.01,
  Chapter 1049 (Senate Bill No. 5), Acts of the 82nd Legislature,
  Regular Session, 2011, which would repeal Subsection (h), Section
  54.203, Education Code, effective September 1, 2013, is repealed
  and does not take effect, and Subsection (h), Section 54.341,
  Education Code, which was redesignated from Subsection (h), Section
  54.203, Education Code, by Chapter 359 (Senate Bill No. 32), Acts of
  the 82nd Legislature, Regular Session, 2011, remains in effect as
  amended by this Act.
         SECTION 7.  The changes in law made by this Act by amending
  Subsections (d), (h), (i), (k), and (n), Section 54.341, Education
  Code, apply beginning with tuition and fees for the 2014 fall
  semester. Tuition and fees for a term or semester before the 2014
  fall semester are covered by the law in effect immediately before
  the effective date of this Act, and the former law is continued in
  effect for that purpose.
         SECTION 8.  In adopting rules under this Act, including
  rules implementing authority transferred by this Act from the Texas
  Higher Education Coordinating Board, the Texas Veterans Commission
  shall engage institutions of higher education in a negotiated
  rulemaking process as described by Chapter 2008, Government Code.
         SECTION 9.  As soon as practicable after the effective date
  of this Act, the Texas Veterans Commission shall employ the
  veterans education counselors as required by Subchapter G, Chapter
  434, Government Code, as added by this Act.
         SECTION 10.  (a)  Except as provided by Subsection (b) of
  this section:
               (1)  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; and
               (2)  if this Act does not receive the vote necessary for
  immediate effect, this Act takes effect on the 91st day after the
  last day of the legislative session.
         (b)  Subchapter F, Chapter 434, Government Code, as added by
  Section 5 of this Act, takes effect September 1, 2014.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1158 passed the Senate on
  April 25, 2013, by the following vote:  Yeas 19, Nays 9;
  May 24, 2013, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 25, 2013, House
  granted request of the Senate; May 26, 2013, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1158 passed the House, with
  amendments, on May 22, 2013, by the following vote:  Yeas 147,
  Nays 1, two present not voting; May 25, 2013, House granted request
  of the Senate for appointment of Conference Committee;
  May 26, 2013, House adopted Conference Committee Report by the
  following vote:  Yeas 146, Nays 1, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor