81R2503 KSD-F
By: Zaffirini S.B. No. 1797
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the Texas Future Scholars Pilot Program
and the Workforce Shortage Education Loan Repayment Program and to
the elimination of certain other student financial assistance
programs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 56, Education Code, is amended by adding
Subchapter R to read as follows:
SUBCHAPTER R. TEXAS FUTURE SCHOLARS PILOT PROGRAM
Sec. 56.501. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "Eligible institution of higher education" means a
general academic teaching institution or other institution of
higher education that offers undergraduate degree or certificate
programs.
(3) "General academic teaching institution" has the
meaning assigned by Section 61.003.
(4) "Qualifying middle school" means a public middle
school from which a school district regularly assigns students to
subsequently attend a public high school in this state that is
designated by the coordinating board as having one of the lowest
college attendance rates among public high schools in this state.
(5) "Pilot program" means the Texas Future Scholars
Pilot Program (TFS) established under this subchapter.
Sec. 56.502. PILOT PROGRAM. The coordinating board shall
establish the Texas Future Scholars Pilot Program (TFS) under
which:
(1) the coordinating board purchases, on behalf of
each participating student, tuition units under the prepaid tuition
unit undergraduate education program established under Subchapter
H, Chapter 54; and
(2) each participating student who is certified by the
coordinating board as having successfully completed the
requirements of the pilot program is entitled to apply the tuition
units purchased on the student's behalf under Subdivision (1) to
the cost of the student's tuition and required fees at an eligible
institution of higher education.
Sec. 56.503. SELECTION OF PARTICIPATING STUDENTS; PURCHASE
OF TUITION UNITS. (a) Not later than November 1 of each year, from
among those students who qualify under Section 56.504, the
coordinating board shall select not more than 500 students to
participate in the pilot program.
(b) On behalf of each participating student, the
coordinating board promptly shall purchase, under the prepaid
tuition unit undergraduate education program, 400 Type II tuition
units or another number of units sufficient to cover the cost of a
student's undergraduate tuition and required fees for four academic
years at an eligible institution of higher education.
Sec. 56.504. INITIAL ELIGIBILITY. To be initially eligible
to participate in the pilot program, a student must:
(1) apply to the coordinating board in the form and
manner prescribed by the coordinating board;
(2) be enrolled as a seventh grader at a qualifying
middle school;
(3) be eligible for the national school lunch program;
(4) meet the requirements for a beneficiary designated
under a prepaid tuition contract under Subchapter H, Chapter 54,
prescribed by Section 54.756(c); and
(5) submit to the coordinating board the following
written pledge, signed by the student and the student's custodial
parent or guardian:
"I will graduate from a public high school in this state with
a grade point average of at least 3.0 on a 4-point scale.
"I will successfully complete the recommended Texas high
school curriculum, or a more advanced curriculum.
"I will not use illegal drugs or alcohol or commit a crime.
"I will take approved diagnostic college readiness
assessments while enrolled in my junior and senior high school
years and, if necessary, work to become college-ready before
enrolling in college.
"I will apply for admission to an eligible Texas college or
university.
"I will apply for federal financial aid not later than March 1
of my senior high school year and each subsequent year in which I am
enrolled in college."
Sec. 56.505. ELIGIBILITY TO REDEEM TUITION UNITS.
Notwithstanding any other provision of this subchapter or
Subchapter H, Chapter 54, a student may redeem tuition units
purchased on behalf of the student under this subchapter only if the
coordinating board certifies that the student:
(1) has substantially fulfilled the student's pledge
under Section 56.504;
(2) enrolled as a full-time student at an eligible
institution of higher education not later than nine months after
the date of the student's high school graduation;
(3) is a resident of this state on the date the student
enrolls in the institution;
(4) has filed an accurate Free Application for Federal
Student Aid (FAFSA);
(5) is determined to have financial need as indicated
by the FAFSA;
(6) meets all financial aid and academic progress
requirements of the institution in which the student is enrolled;
(7) if determined necessary by the coordinating board,
is continuing to work toward achieving and demonstrating college
readiness; and
(8) has not received a TEXAS grant.
Sec. 56.506. GRANTS FOR BOOKS AND SUPPLIES FOR CERTAIN
STUDENTS. The coordinating board shall provide a grant in an amount
not to exceed $1,000 per semester for each student redeeming
tuition units under this subchapter who is enrolled in a degree
program in a field designated by the coordinating board as
experiencing an acute workforce shortage in this state, to be used
by the student toward the costs of books and supplies for that
semester.
Sec. 56.507. ACCEPTANCE OF FUNDS. The coordinating board
may solicit and accept gifts, grants, and donations from any public
or private source for the purposes of the pilot program.
Sec. 56.508. RULES. The coordinating board shall adopt
rules for the administration of this subchapter.
SECTION 2. Chapter 61, Education Code, is amended by adding
Subchapter FF to read as follows:
SUBCHAPTER FF. WORKFORCE SHORTAGE EDUCATION LOAN
REPAYMENT PROGRAM
Sec. 61.9771. DEFINITIONS. In this subchapter:
(1) "Program" means the Workforce Shortage Education
Loan Repayment Program established under this subchapter.
(2) "Workforce shortage field" means an employment
field designated by the commissioner of higher education, in
consultation with the Texas Workforce Commission, as experiencing
an acute workforce shortage in this state or in one or more
particular geographic regions of this state.
Sec. 61.9772. REPAYMENT ASSISTANCE AUTHORIZED. The board
may provide, using funds appropriated for that purpose and in
accordance with this subchapter and board rules, assistance in the
repayment of student loans for persons who apply and qualify for the
assistance.
Sec. 61.9773. ELIGIBILITY. (a) To be eligible to receive
repayment assistance under this subchapter, a person must:
(1) apply to the board;
(2) have completed at least one year of full-time
employment in a workforce shortage field;
(3) be currently employed full-time in this state in a
workforce shortage field; and
(4) if the person is employed in a field designated by
the board as experiencing an acute workforce shortage only in a
particular geographic region or regions of this state, be currently
employed in that field in such a designated region.
(b) The board shall give priority in granting repayment
assistance to a person who received repayment assistance under this
subchapter for the preceding year. The priority terminates if the
person does not apply for or becomes ineligible for that
assistance.
Sec. 61.9774. ELIGIBLE LOANS. (a) The board may provide
repayment assistance for the repayment of any student loan received
by a student through any lender for the costs of attendance at an
institution of higher education or a private or independent
institution of higher education, including loans for undergraduate
or graduate education.
(b) The board may not provide repayment assistance for a
student loan that is in default at the time of the person's
application.
Sec. 61.9775. REPAYMENT. (a) The board shall deliver any
repayment made under this subchapter in a lump sum payable to the
lender and the recipient, in accordance with any applicable federal
law.
(b) A repayment made under this subchapter may be applied to
the principal amount of the loan and to interest that accrues.
(c) The minimum amount of repayment assistance that may be
awarded in one year to a person who qualifies for the assistance
under Section 61.9773 is the lesser of:
(1) an amount determined by the commissioner of higher
education as appropriate to further the purposes of this subchapter
considering the total amount available to fund loan repayment
assistance in that year; or
(2) the amount of principal and accrued interest that
is due on the person's eligible loans in that year.
(d) A person may not receive repayment assistance under this
subchapter for each of more than five years.
Sec. 61.9776. ADVISORY COMMITTEES. The commissioner of
higher education may appoint advisory committees to assist in
performing duties under this subchapter.
Sec. 61.9777. ACCEPTANCE OF FUNDS. The board may solicit
and accept gifts, grants, and donations from any public or private
source for the purposes of the program.
Sec. 61.9778. RULES. (a) The board shall adopt rules
necessary for the administration of this subchapter, including a
rule that sets a maximum amount of repayment assistance that may be
received in one year by a person who qualifies for the assistance.
(b) The board shall distribute a copy of the rules adopted
under this section and pertinent information in this subchapter to:
(1) each institution of higher education;
(2) any appropriate state agency; and
(3) any appropriate employer or professional
association.
SECTION 3. Section 504.615(b), Transportation Code, is
amended to read as follows:
(b) After deduction of the department's administrative
costs, the remainder of the fee for issuance of the license plates
shall be deposited to the credit of the general revenue fund. The
money may be used only for:
(1) the Texas Future Scholars Pilot Program under
Subchapter R, Chapter 56, Education Code [scholarships to students
who demonstrate a need for financial assistance under Texas Higher
Education Coordinating Board rule]; or
(2) the Workforce Shortage Education Loan Repayment
Program under Subchapter FF, Chapter 61, Education Code [Texas
Public Educational Grants awarded under Subchapter C, Chapter 56,
Education Code, if the fee is for the issuance of a license plate
for a college described by Subsection (e)(1)].
SECTION 4. The following laws are repealed:
(1) Sections 54.212 and 54.214, Education Code;
(2) Subchapter K, Chapter 56, Education Code; and
(3) Subchapter L, Chapter 61, Education Code.
SECTION 5. Subchapter R, Chapter 56, Education Code, as
added by this Act, applies beginning with the 2010-2011 school
year.
SECTION 6. A person receiving a scholarship or other
financial assistance under Subchapter K, Chapter 56, Education
Code, or Subchapter L, Chapter 61, Education Code, before the
effective date of this Act for the 2009-2010 academic year may
continue to receive a scholarship or other financial assistance
under that law as applicable to the person immediately before the
effective date, until the person is no longer eligible for the
scholarship or other assistance under Subchapter K, Chapter 56,
Education Code, or Subchapter L, Chapter 61, Education Code, as the
applicable law exists on January 1, 2009, and the former law is
continued in effect for that purpose. The costs of the scholarships
or other financial assistance authorized under this section shall
be covered by appropriations for the Texas Future Scholars Pilot
Program established by Subchapter R, Chapter 56, Education Code, as
added by this Act, and for the Workforce Shortage Education Loan
Repayment Program established by Subchapter FF, Chapter 61,
Education Code, as added by this Act.
SECTION 7. The Texas Higher Education Coordinating Board
shall adopt the rules required by Subchapter R, Chapter 56,
Education Code, and Subchapter FF, Chapter 61, Education Code, as
added by this Act, as soon as practicable after this Act takes
effect. For that purpose, the coordinating board may adopt the
initial rules in the manner provided by law for emergency rules.
SECTION 8. This Act takes effect September 1, 2009.