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  H.B. No. 700
 
 
 
 
AN ACT
  relating to the repeal of the Texas B-On-time student loan program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 52.89(c), Education Code, is amended to
  read as follows:
         (c)  The board shall deposit to the credit of the fund any
  proceeds from the sale of bonds, excluding:
               (1)  any accrued interest on the bonds which shall be
  deposited in the board interest and sinking fund relating to the
  bonds; and
               (2)  proceeds from the sale of bonds issued by the board
  under Section 56.464(b), as that subsection existed immediately
  before September 1, 2015 [to provide Texas B-On-time student
  loans].
         SECTION 2.  Sections 52.90(a) and (b), Education Code, are
  amended to read as follows:
         (a)  The board[:
               [(1)]  shall make a loan from the fund to a student who
  qualifies for a loan under Subchapter C[; and
               [(2)     may make a loan from the fund to a student who
  qualifies for a Texas B-On-time student loan under Subchapter Q,
  Chapter 56].
         (b)  Loans from the fund are governed by Subchapter C [of
  this chapter or Subchapter Q, Chapter 56, as appropriate, as if made
  under that subchapter, except to the extent of conflict with this
  subchapter].
         SECTION 3.  The heading to Section 52.91, Education Code, is
  amended to read as follows:
         Sec. 52.91.  BONDS FOR FORMER TEXAS B-ON-TIME STUDENT LOAN
  PROGRAM.
         SECTION 4.  Sections 52.91(a) and (c), Education Code, are
  amended to read as follows:
         (a)  The board shall deposit to the credit of the Texas
  B-On-time student loan account established under Section 56.0092
  [56.463] any proceeds from the sale of bonds issued by the board to
  fund Texas B-On-time student loans under Section 56.464(b), as that
  subsection existed immediately before September 1, 2015, other
  than[:
               [(1)]  accrued interest on the bonds, which shall be
  deposited to the credit of the interest and sinking fund related to
  the bonds[; and
               [(2)     any proceeds from the sale of the bonds that the
  board by resolution deposits to the student loan auxiliary fund
  under Section 52.89(c-1)].
         (c)  The board shall repay bonds described by Subsection (a)
  [issued by the board to fund the Texas B-On-time student loan
  program] using proceeds from the bonds, legislative
  appropriations, and money collected by the board as repayment for
  Texas B-On-time student loans awarded by the board under Section
  56.0092(c) for a semester or term occurring before the 2020 fall
  semester.  The board may also repay the bonds by using [use] tuition
  set aside under Section 56.465, as that section existed immediately
  before September 1, 2015, for a semester or term occurring before
  the 2015 fall semester [to repay bonds issued by the board for the
  Texas B-On-time student loan program].  The board may not repay the
  bonds with [use] money collected by the board as repayment for
  student loans awarded by the board under Subchapter C [to repay
  bonds issued by the board for the Texas B-On-time student loan
  program under Section 56.464(b)].
         SECTION 5.  Section 54.0065(a), Education Code, is amended
  to read as follows:
         (a)  A qualified student is eligible for a rebate of a
  portion of the undergraduate tuition the student has paid if the
  student:
               (1)  is awarded a baccalaureate degree from a general
  academic teaching institution within:
                     (A)  four calendar years after the date the
  student initially enrolled in the institution or another
  postsecondary educational institution if:
                           (i)  the institution awarding the degree is
  a four-year institution; and
                           (ii)  the student is awarded a degree other
  than a degree in engineering, architecture, or any other program
  determined by the coordinating board to require more than four
  years to complete; or
                     (B)  five calendar years after the date the
  student initially enrolled in the institution or another
  postsecondary educational institution if:
                           (i)  the institution awarding the degree is
  a four-year institution; and
                           (ii)  the student is awarded a degree in
  engineering, architecture, or any other program determined by the
  coordinating board to require more than four years to complete [the
  period prescribed by Section 56.462(1)(A) or (B), as applicable, to
  qualify for forgiveness of a Texas B-On-time loan]; and
               (2)  has attempted no more than three hours in excess of
  the minimum number of semester credit hours required to complete
  the degree program:
                     (A)  including:
                           (i)  transfer credits; and
                           (ii)  course credit earned exclusively by
  examination, except that, for purposes of this subsection, only the
  number of semester credit hours earned exclusively by examination
  in excess of nine semester credit hours is treated as hours
  attempted; and
                     (B)  excluding:
                           (i)  course credit that is earned to satisfy
  requirements for a Reserve Officers' Training Corps (ROTC) program
  but that is not required to complete the degree program; and
                           (ii)  course credit, other than course
  credit earned exclusively by examination, that is earned before
  graduating from high school.
         SECTION 6.  Subchapter A, Chapter 56, Education Code, is
  amended by adding Section 56.0092 to read as follows:
         Sec. 56.0092.  TEXAS B-ON-TIME STUDENT LOAN ACCOUNT; FORMER
  LOAN PROGRAM CONTINUED IN EFFECT FOR CERTAIN ACADEMIC YEARS ONLY.
  (a) The Texas B-On-time student loan account previously
  established by former Section 56.463 continues as an account in the
  general revenue fund. The account consists of:
               (1)  gifts and grants;
               (2)  any legislative appropriations received for the
  purpose of awarding Texas B-On-time student loans to students who
  qualify and establish eligibility for the loans as described by
  Subsection (c) and for discharging any other remaining obligations
  under the former Texas B-On-time student loan program;
               (3)  tuition set aside under Section 56.465, as that
  section existed immediately before September 1, 2015, for a
  semester or term occurring before the 2015 fall semester;
               (4)  bond proceeds deposited under Section 52.91(a);
  and
               (5)  any other money in the account on September 1,
  2015.
         (b)  Money in the Texas B-On-time student loan account may be
  used only to pay any costs of the coordinating board related to
  loans awarded under the Texas B-On-time student loan program as
  provided by Subsection (c) for a semester or term occurring before
  the 2020 fall semester.
         (c)  Beginning with the 2015 fall semester, the coordinating
  board may not award an initial Texas B-On-time student loan under
  the Texas B-On-time student loan program. The coordinating board
  may award, for a semester or term occurring before the 2020 fall
  semester, a subsequent Texas B-On-time student loan to an eligible
  student who received an initial Texas B-On-time student loan before
  the 2015-2016 academic year.  For Texas B-On-time student loans to
  be awarded as described by this subsection:
               (1)  students may qualify and establish continued
  eligibility, as applicable, under Subchapter Q as that subchapter
  existed immediately before September 1, 2015; and
               (2)  the coordinating board may make loans using any
  money available for the purposes of the former Texas B-On-time
  student loan program.
         (d)  On September 1, 2020, the Texas B-On-time student loan
  account is abolished, and any remaining money in the account may be
  appropriated only to eligible institutions in the manner provided
  by Subsection (e).
         (e)  An appropriation under Subsection (d) must be made in
  accordance with a formula, adopted by coordinating board rule, that
  the coordinating board determines fairly allocates the
  appropriated amount to those eligible institutions at which the
  Texas B-On-time student loan program was underutilized. For
  purposes of this subsection, the Texas B-On-time student loan
  program is considered to have been underutilized by students of an
  institution in any period if the institution's percentage of the
  total amount of tuition set aside by all institutions under the
  program during the period was greater than the institution's
  percentage of all students who received a Texas B-On-time student
  loan under the program for the same period. The coordinating board
  shall base the coordinating board's determination on a period of
  academic years occurring before the 2015-2016 academic year that
  the coordinating board considers representative of eligible
  institutions' student participation in the Texas B-On-time student
  loan program.
         (f)  In this section, "eligible institution" means a general
  academic teaching institution described by Section 56.451(2)(A) or
  a medical and dental unit described by Section 56.451(2)(B), as
  those paragraphs existed immediately before September 1, 2015.
         SECTION 7.  Section 56.011(a), Education Code, is amended to
  read as follows:
         (a)  The governing board of each institution of higher
  education shall cause to be set aside not less than 15 [20] percent
  of any amount of tuition charged to a resident undergraduate
  student under Section 54.0513 in excess of $46 per semester credit
  hour. The funds set aside under this section by an institution
  shall be used to provide financial assistance for resident
  undergraduate students enrolled in the institution.
         SECTION 8.  The following provisions of the Education Code
  are repealed:
               (1)  Sections 52.89(c-1) and 52.91(b);
               (2)  Section 56.307(l); and
               (3)  Subchapter Q, Chapter 56.
         SECTION 9.  (a)  Notwithstanding any other law, Subchapter
  Q, Chapter 56, Education Code, as that subchapter existed
  immediately before the effective date of this Act, is continued in
  effect solely for the purposes of:
               (1)  awarding Texas B-On-time student loans as provided
  by Section 56.0092(c), Education Code, as added by this Act; and
               (2)  discharging any other remaining obligations under
  the former Texas B-On-time student loan program.
         (b)  The repeal by this Act of Section 56.465, Education
  Code, applies beginning with tuition charged for the 2015 fall
  semester.
         SECTION 10.  Section 56.011(a), Education Code, as amended
  by this Act, applies beginning with tuition charged for the 2015
  fall semester.  Tuition charged for an academic period before that
  term or semester is 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 11.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 700 was passed by the House on April
  23, 2015, by the following vote:  Yeas 130, Nays 10, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 700 was passed by the Senate on May
  22, 2015, by the following vote:  Yeas 25, Nays 6.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor