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A BILL TO BE ENTITLED
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AN ACT
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relating to public institutions of higher education setting aside |
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portions of designated tuition for student financial assistance. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 56, Education Code, is |
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amended by adding Sections 56.0093 and 56.0094 to read as follows: |
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Sec. 56.0093. REPORT REGARDING DESIGNATED TUITION SET ASIDE |
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FOR STUDENT FINANCIAL ASSISTANCE. (a) In this section, |
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"coordinating board" means the Texas Higher Education Coordinating |
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Board. |
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(b) This section applies only to the governing board of an |
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institution of higher education that sets aside any portion of the |
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tuition charged by the institution to a resident student under |
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Section 54.0513 for the purpose of providing financial assistance |
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for resident students enrolled in an undergraduate, graduate, or |
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professional degree program at the institution. |
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(c) Not later than August 31 of each year, the governing |
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board of an institution to which this section applies shall submit |
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to the coordinating board a written report regarding any tuition |
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set aside by the institution as described by Subsection (b) in the |
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preceding fall, spring, or summer term. The report must include: |
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(1) the amount of tuition set aside by the institution |
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as described by Subsection (b) for each applicable term; |
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(2) the percentage of the total amount of tuition |
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charged by the institution under Section 54.0513 for each |
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applicable term that was set aside by the institution as described |
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by Subsection (b); and |
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(3) the types of student financial assistance provided |
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using the funds set aside by the institution as described by |
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Subsection (b). |
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(d) The coordinating board shall disseminate to each public |
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or accredited private high school in this state the information |
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provided in Subsection (c) in a way designed to educate high school |
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students and the parents of those students on available |
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opportunities and required preparation with respect to |
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institutions of higher education. |
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(e) The coordinating board may adopt rules to administer |
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this section. |
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Sec. 56.0094. NOTICE TO STUDENTS REGARDING TUITION SET |
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ASIDE FOR FINANCIAL ASSISTANCE. (a) An institution of higher |
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education that sets aside a portion of a student's tuition payments |
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to provide financial assistance for students enrolled in the |
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institution shall provide to each student of the institution who |
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pays tuition from which a portion is set aside for that purpose a |
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notice regarding the specific amount that is set aside by the |
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institution. |
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(b) The institution shall provide the notice required by |
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Subsection (a) to the student in a prominently printed statement |
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that appears on or is included with: |
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(1) the student's tuition bill or billing statement, |
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if the institution provides the student with a printed bill or |
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billing statement for the payment of the student's tuition; or |
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(2) the student's tuition receipt, if the institution |
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provides the student with a printed receipt evidencing the payment |
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of the student's tuition. |
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(c) If for any semester or other academic term the |
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institution does not provide the student with a printed tuition |
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bill, tuition billing statement, or tuition receipt, the |
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institution shall include the notice required by Subsection (a) for |
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that semester or other term in a statement prominently displayed in |
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an e-mail sent to the student. The notice may be included in any |
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other e-mail sent to the student in connection with the student's |
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tuition charges for that semester or other term. |
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(d) The Texas Higher Education Coordinating Board by rule |
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shall prescribe minimum standards for the manner, form, and content |
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of the notice required by this section. |
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SECTION 2. 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 STUDENTS FIRST GRANT PROGRAM |
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Sec. 56.641. 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) "General academic teaching institution" has the |
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meaning assigned by Section 61.003. |
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(3) "Eligible institution" means a general academic |
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teaching institution that satisfies the requirements of Section |
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56.644. |
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(4) "Program" means the Texas Students First Grant |
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Program established under this subchapter. |
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(5) "Tuition" includes: |
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(A) tuition for which the rates are prescribed by |
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Chapter 54; and |
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(B) tuition charged by a general academic |
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teaching institution under Section 54.0513 or another law |
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authorizing an institution to establish tuition rates. |
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Sec. 56.642. PURPOSE. The purpose of the Texas Students |
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First Grant Program is to provide financial assistance to students |
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with financial need at general academic teaching institutions that |
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have successfully controlled tuition costs charged to students at |
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the institution. |
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Sec. 56.643. ADMINISTRATION OF PROGRAM; PRIORITY FOR GRANT |
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AWARDS. (a) The coordinating board shall: |
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(1) administer the program; |
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(2) adopt rules for determining the allocation of |
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funds under the program among eligible institutions; and |
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(3) adopt any other rules necessary to implement the |
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program or this subchapter. |
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(b) The coordinating board shall consult with the student |
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financial aid officers of eligible institutions in developing rules |
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adopted under Subsection (a). |
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(c) In awarding grants under the program, priority shall be |
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given to eligible students whose cost for tuition and required fees |
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is not fully met through other non-loan financial assistance |
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programs. |
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Sec. 56.644. ELIGIBLE INSTITUTIONS. (a) A general |
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academic teaching institution is eligible to participate in the |
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program for an academic year only if the total amount of tuition |
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charged by the institution to each student for that academic year is |
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at least five percent less than the total amount of tuition that the |
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institution would have charged to a similarly situated student for |
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the 2017-2018 academic year. |
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(b) For purposes of this section, students are similarly |
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situated if they share the same residency status, degree program, |
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course load, course level, tuition exemption status, and other |
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circumstances affecting the tuition charged to the student. |
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Sec. 56.645. ELIGIBILITY FOR GRANT. To be eligible for a |
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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) be enrolled as an undergraduate student at an |
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eligible institution; |
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(3) meet financial need requirements as defined by |
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coordinating board rules; |
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(4) comply with any additional requirement adopted by |
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the coordinating board under this subchapter; and |
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(5) be eligible for federal financial aid, except that |
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a person is not required to meet any financial aid need requirement |
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applicable to a particular federal financial aid program. |
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Sec. 56.646. GRANT USE. A person receiving a grant under |
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this subchapter may use the money only to pay the amount of tuition |
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and required fees and the cost of required textbooks incurred by the |
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student at an eligible institution. |
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Sec. 56.647. GRANT AMOUNT. (a) The coordinating board by |
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rule shall prescribe the maximum amount of a grant awarded to a |
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person under the program for a semester or other academic term. |
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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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Sec. 56.648. FUNDING. (a) The coordinating board may |
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solicit and accept gifts, grants, and donations from any public or |
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private source for the purposes of this subchapter. |
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(b) The legislature may appropriate money for the purposes |
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of this subchapter. |
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SECTION 3. Subchapter B, Chapter 56, Education Code, is |
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repealed. |
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SECTION 4. The changes in law made by this Act apply |
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beginning with tuition charged for the 2018 spring semester. |
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Tuition charged for any semester or other academic term before the |
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2018 spring semester is covered by the applicable law as it existed |
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before the effective date of this Act, and the former law is |
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continued in effect for that purpose. |
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SECTION 5. The Texas Higher Education Coordinating Board |
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shall adopt rules for the administration of Subchapter U, Chapter |
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56, Education Code, as added by this Act, as soon as practicable |
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after the effective date of this Act. |
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SECTION 6. This Act takes effect September 1, 2017. |