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