81R8740 KEL-D By: Watson S.B. No. 1765 A BILL TO BE ENTITLED AN ACT relating to financial assistance funded from the amounts of certain fees charged to students enrolled at public institutions of higher education. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter B, Chapter 56, Education Code, is amended to read as follows: SUBCHAPTER B. FINANCIAL ASSISTANCE FUNDED FROM DESIGNATED TUITION AND STUDENT FEES Sec. 56.0105. DEFINITION. In this subchapter, "student fee" means a fee authorized by Section 54.504 or a fee or other charge authorized by Section 55.16(a). The term does not include an application fee or a fee for participation in a study abroad program or a field trip or other organized off-campus activity. Sec. 56.011. RESIDENT UNDERGRADUATE STUDENT ASSISTANCE. (a) The governing board of each institution of higher education shall cause to be set aside not less than 20 percent of the total amount of: (1) any amount of tuition charged to a resident undergraduate student under Section 54.0513 in excess of $46 per semester credit hour; (2) any student fee first imposed in the 2009 fall semester or a subsequent semester or term; and (3) any student fee increase that takes effect in the 2009 fall semester or a subsequent semester or term. (b) 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. (c) [(b)] To be eligible for assistance under this section, a student must establish financial need in accordance with rules and procedures established by the Texas Higher Education Coordinating Board. Priority shall be given to students who meet the coordinating board definition of financial need and whose cost for tuition and required fees is not met through other non-loan financial assistance programs. (d) [(c)] The financial assistance provided under this section: (1) may include grants, scholarships, or work-study programs; and (2) may not include[,] student loans or[, and] student loan repayment assistance. Sec. 56.012. RESIDENT GRADUATE STUDENT ASSISTANCE. (a) The governing board of each institution of higher education shall cause to be set aside not less than 15 percent of the total amount of: (1) any amount of tuition charged to a resident student enrolled in a graduate or professional degree program under Section 54.0513 in excess of $46 per semester credit hour; (2) any student fee first imposed in the 2009 fall semester or a subsequent semester or term; and (3) any student fee increase that takes effect in the 2009 fall semester or a subsequent semester or term. (b) The funds set aside under this section by an institution shall be used to provide financial assistance for resident students enrolled in graduate and professional degree programs at the institution. (c) [(b)] To be eligible for assistance under this section, a student must establish financial need in accordance with rules and procedures established by the Texas Higher Education Coordinating Board. Priority shall be given to students who meet the coordinating board definition of financial need and whose cost for tuition and required fees is not met through other non-loan financial assistance programs. (d) [(c)] The financial assistance provided under this section: (1) may include grants, scholarships, or work-study programs; and (2) may not include[,] student loans or[, and] student loan repayment assistance. Sec. 56.013. INFORMATION REGARDING FINANCIAL ASSISTANCE FUNDED FROM DESIGNATED TUITION AND STUDENT FEES. The Texas Higher Education Coordinating Board shall disseminate to each public or accredited private high school in this state information regarding the financial assistance available under this subchapter and shall include information designed to educate high school students and the parents of those students on available opportunities and required preparation with respect to institutions of higher education. The coordinating board shall recommend a method of delivery of the information to parents and students under this section. SECTION 2. The change in law made by this Act applies to student fees and charges charged beginning with the 2009 fall semester. 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, 2009.