84R18011 KJE-D
	By: Zerwas	H.B. No. 3027
	Substitute the following for H.B. No. 3027:
	By:  Raney	C.S.H.B. No. 3027

	A BILL TO BE ENTITLED
	AN ACT
	relating to the establishment of the Texas Competency-Based
	Education Grant Program for certain students enrolled in
	competency-based baccalaureate degree programs at certain
	institutions of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 56, Education Code, is amended by adding
	Subchapter U to read as follows:
	SUBCHAPTER U. TEXAS COMPETENCY-BASED EDUCATION GRANT PROGRAM
	Sec. 56.601.  DEFINITIONS. In this subchapter:
	(1)  "Competency-based baccalaureate degree program"
	means a baccalaureate degree program under which academic credit is
	awarded based solely on a student's attainment of competencies.
	The term may include a program that is organized around traditional
	course-based units, including for online or other distance
	education, that a student must earn for degree completion.
	(2)  "Coordinating board" means the Texas Higher
	Education Coordinating Board.
	(3)  "Eligible institution" means:
	(A)  a general academic teaching institution;
	(B)  a private or independent institution of
	higher education;
	(C)  a public junior college authorized to offer
	baccalaureate degree programs under Section 130.0012; or
	(D)  a nonprofit, tax-exempt, regionally
	accredited college or university operating in accordance with a
	memorandum of understanding with this state under an executive
	order issued by the governor and offering competency-based,
	exclusively online baccalaureate degree programs.
	(4)  "Expected family contribution" means the amount of
	discretionary income that should be available to a student from the
	resources of the student and of the student's family, as determined
	by the coordinating board following the methodology prescribed by
	the United States Department of Education for the purpose of
	determining a student's eligibility for need-based student
	financial assistance.
	(5)  "General academic teaching institution," "private
	or independent institution of higher education," and "public junior
	college" have the meanings assigned by Section 61.003.
	(6)  "Program" means the Texas Competency-Based
	Education Grant Program established under this subchapter.
	Sec. 56.602.  PURPOSE. The purpose of the Texas
	Competency-Based Education Grant Program is to provide financial
	assistance to enable eligible students to enroll in
	competency-based baccalaureate degree programs at eligible
	institutions.
	Sec. 56.603.  ADMINISTRATION OF PROGRAM; PRIORITY FOR
	FINANCIAL NEED. (a) The coordinating board shall:
	(1)  administer the program;
	(2)  using the negotiated rulemaking procedures under
	Chapter 2008, Government Code, adopt rules for determining the
	allocation of funds under the program among eligible institutions;
	and
	(3)  adopt any other rules necessary to implement the
	program or this subchapter.
	(b)  The coordinating board shall consult with the student
	financial aid officers of eligible institutions in developing the
	rules adopted under Subsection (a).
	(c)  The total amount of grants awarded under the program may
	not exceed the amount available for the program from
	appropriations, gifts, grants, or other funds.
	(d)  In determining who should receive a grant under the
	program, the coordinating board and the eligible institutions shall
	give highest priority to awarding grants to students who
	demonstrate the greatest unmet financial need.
	Sec. 56.604.  INITIAL ELIGIBILITY FOR GRANT. (a) To be
	eligible initially for a grant under the program, a person must:
	(1)  be a resident of this state as determined by
	coordinating board rules;
	(2)  meet financial need requirements as defined by
	coordinating board rules, including a requirement that the person's
	expected family contribution for the academic year does not exceed
	the maximum expected family contribution established for this
	purpose by the coordinating board;
	(3)  be enrolled in a competency-based baccalaureate
	degree program at an eligible institution;
	(4)  not be receiving a TEXAS grant under Subchapter M,
	a tuition equalization grant under Subchapter F, Chapter 61, or any
	other state-funded student financial assistance for the same
	academic period; and
	(5)  comply with any additional nonacademic
	requirement adopted by the coordinating board under this
	subchapter.
	(b)  A person is not eligible to receive a grant under the
	program if the person has been granted a baccalaureate degree.
	(c)  A person's eligibility for a grant under the program
	ends on the earliest of the following dates:
	(1)  the fourth anniversary of the initial award of a
	grant under the program to the person, if at the time of the initial
	award the person had earned less than 60 semester credit hours or an
	equivalent number of competency units or credits toward the
	person's degree;
	(2)  the second anniversary of the initial award of a
	grant under the program to the person, if at the time of the initial
	award the person had earned 60 or more semester credit hours or an
	equivalent number of competency units or credits toward the
	person's degree; or
	(3)  the date the person receives a baccalaureate
	degree.
	Sec. 56.605.  CONTINUING ELIGIBILITY AND ACADEMIC
	PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a
	grant under the program, a person may continue to receive a grant
	under the program during each semester or term in which the person
	is enrolled at an eligible institution only if the person:
	(1)  meets the criteria for initial eligibility under
	Section 56.604(a);
	(2)  makes satisfactory academic progress toward a
	baccalaureate degree; and
	(3)  complies with any additional nonacademic
	requirement adopted by the coordinating board.
	(b)  If a person fails to meet any of the requirements of
	Subsection (a) after the completion of any semester or term, the
	person may not receive a grant under the program during the next
	semester or term in which the person enrolls. Unless the person's
	eligibility for a grant expires under Section 56.604(c), a person
	may become eligible to receive a grant under the program in a
	subsequent semester or term if the person:
	(1)  completes at least 12 semester credit hours or an
	equivalent number of competency units or credits in a semester or
	term during which the student is not eligible for a grant; and
	(2)  meets all the requirements of Subsection (a).
	(c)  For the purpose of this section, a person makes
	satisfactory academic progress toward a baccalaureate degree only
	if the person completes at least 12 semester credit hours or an
	equivalent number of competency units or credits in each semester
	or term in which the person is enrolled.
	(d)  The coordinating board shall adopt rules to allow a
	person who is otherwise eligible to receive a grant under the
	program to receive a grant if the student's completion rate falls
	below the satisfactory academic progress requirements of this
	section in the event of a hardship or for other good cause shown,
	including:
	(1)  a showing of a severe illness or other
	debilitating condition that may affect the person's academic
	performance; or
	(2)  a showing 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.
	Sec. 56.606.  GRANT USE. A person receiving a grant under
	the program may use the money to pay any usual and customary cost of
	attendance at an eligible institution incurred by the student.  The
	institution may disburse all or part of the proceeds of a grant
	under the program to an eligible person only if the tuition and
	required fees incurred by the person at the institution have been
	paid.
	Sec. 56.607.  GRANT AMOUNT. (a) The maximum annual amount
	of a grant under the program for a full-time undergraduate student
	equivalent enrolled at an eligible institution is an amount equal
	to 75 percent of the average state appropriation for the state
	fiscal biennium preceding the biennium in which the grant is
	awarded for a full-time undergraduate student equivalent enrolled
	at a general academic teaching institution, as determined by the
	coordinating board.
	(b)  The coordinating board may adopt rules that allow the
	coordinating board to increase or decrease, in proportion to the
	number of semester credit hours or competency units or credits in
	which a student is enrolled, the amount of a grant award to a
	student who is enrolled in a number of semester credit hours or
	competency units or credits in excess of or below 12 semester credit
	hours or an equivalent number of competency units or credits.
	Sec. 56.608.  GRANT NOT TO AFFECT ADMISSION.  An eligible
	institution may not deny admission to or enrollment in the
	institution based on a person's eligibility to receive a grant
	under the program or a person's receipt of a grant under the
	program.
	SECTION 2.  (a)  The Texas Higher Education Coordinating
	Board shall adopt rules to administer Subchapter U, Chapter 56,
	Education Code, as added by this Act, as soon as practicable after
	the effective date of this Act. For that purpose, the coordinating
	board may adopt the initial rules in the manner provided by law for
	emergency rules.
	(b)  The Texas Higher Education Coordinating Board shall
	begin allocating funds to eligible institutions under Subchapter U,
	Chapter 56, Education Code, as added by this Act, for the first
	academic year for which money is appropriated for that purpose,
	except that the coordinating board may not allocate funds under
	that subchapter for an academic year before the 2016-2017 academic
	year.
	SECTION 3.  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, 2015.