82R2387 KEL-D By: Branch H.B. No. 10 A BILL TO BE ENTITLED AN ACT relating to eligibility for a TEXAS grant and to administration of the TEXAS grant program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 56.301(2), Education Code, is amended to read as follows: (2) "Eligible institution" means: (A) for a person who graduates from high school on or after May 1, 2013, a general academic teaching institution as defined by Section 61.003; and (B) for any other person, an institution of higher education that offers one or more undergraduate degree or certification programs. SECTION 2. Section 56.303, Education Code, is amended by amending Subsection (d) and adding Subsections (e) and (f) to read as follows: (d) From money appropriated by the legislature for the purposes of this subchapter, the coordinating board annually shall determine the allocation among eligible institutions of money available for TEXAS grants and shall distribute the money accordingly. In allocating available grant money among general academic teaching institutions, the coordinating board shall ensure that each of those institutions' percentage share of the total amount of grant money allocated to general academic teaching institutions under this subsection for an academic year does not, as a result of the number of students who establish eligibility at the institution for an initial TEXAS grant under Section 56.3041(a)(2)(A), change from the institution's percentage share of the total amount allocated to those institutions under this subsection for the preceding academic year. (e) In determining who should receive a TEXAS grant, the coordinating board and the eligible institutions shall give [highest] priority to awarding TEXAS grants to students who demonstrate the greatest financial need. (f) Beginning with TEXAS grants awarded for the 2013-2014 academic year, in determining who should receive an initial TEXAS grant, each eligible institution, in addition to giving priority as provided by Subsection (e), shall give highest priority to students who meet the eligibility criteria described by Section 56.3041(a)(2)(A). If there is money available in excess of the amount required to award an initial TEXAS grant to all students meeting those criteria, an institution shall make awards to other students who meet the eligibility criteria described by Section 56.304(a)(2)(A), provided that the institution continues to give priority to students as provided by Subsection (e). SECTION 3. Subchapter M, Chapter 56, Education Code, is amended by amending Section 56.3041 and adding Section 56.3042 to read as follows: Sec. 56.3041. INITIAL ELIGIBILITY OF PERSON GRADUATING FROM HIGH SCHOOL ON OR AFTER MAY 1, 2013. (a) To be eligible initially for a TEXAS grant, a person graduating from high school on or after May 1, 2013, must: (1) be a resident of this state as determined by coordinating board rules; (2) meet the academic requirements prescribed by Paragraph (A), (B), or (C) as follows: (A) be a graduate of a public or accredited private high school in this state who completed the recommended high school program established under Section 28.025 or its equivalent and have accomplished any two or more of the following: (i) graduation under the advanced high school program established under Section 28.025 or its equivalent, successful completion of the course requirements of the international baccalaureate diploma program, or earning of 12 or more credits in high school through courses described in Sections 28.009(a)(1), (2), and (3); (ii) satisfaction of the Texas Success Initiative (TSI) college readiness benchmarks prescribed by the coordinating board under Section 51.3062(f) on any assessment instrument designated by the coordinating board under Section 51.3062(c) or (e), or qualification for an exemption as described by Section 51.3062(p), (q), or (q-1); (iii) graduation in the top one-third of the person's high school graduating class or graduation from high school with a grade point average of at least 3.0 on a four-point scale or the equivalent; or (iv) completion for high school credit of at least one advanced mathematics course following the successful completion of an Algebra II course, as permitted by Section 28.025(b-3), or at least one advanced career and technical course, as permitted by Section 28.025(b-2); (B) have received an associate degree from a public or private institution of higher education; or (C) if sufficient money is available, meet the eligibility criteria described by Section 56.304(a)(2)(A); (3) meet financial need requirements established by the coordinating board; (4) be enrolled in an undergraduate degree program at an eligible institution; (5) except as provided under rules adopted under Subsection (g), be enrolled as: (A) an entering undergraduate student for at least three-fourths of a full course load, as determined by the coordinating board, not later than the 16th month after the date the person graduates from high school; (B) an entering undergraduate student who entered military service not later than 12 months after graduating from high school and who enrolled at an eligible institution not later than 12 months after being honorably discharged from military service; or (C) a continuing undergraduate student for at least three-fourths of a full course load, as determined by the coordinating board, not later than the 12th month after the date the person receives an associate degree from a public or private institution of higher education; (6) have applied for any available financial aid or assistance; and (7) comply with any additional nonacademic requirements adopted by the coordinating board under this subchapter. (b) A person is not eligible to receive a TEXAS grant if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code, or under the law of another jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has: (1) received a certificate of discharge from the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court and at least two years have elapsed from the date of the receipt of completion; or (2) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a grant under this subchapter. (c) A person is not eligible to receive a TEXAS grant if the person has been granted a baccalaureate degree. (d) A person may not receive a TEXAS grant for more than 150 semester credit hours or the equivalent. (e) Except as provided under rules adopted under Subsection (f), a person's eligibility for a TEXAS grant ends on: (1) the fifth anniversary of the initial award of a TEXAS grant to the person if the person is enrolled in a degree or certificate program of four years or less; or (2) the sixth anniversary of the initial award of a TEXAS grant to the person if the person is enrolled in a degree or certificate program of more than four years. (f) The coordinating board shall adopt rules to provide a person who is otherwise eligible to receive a TEXAS grant additional time during which the person may receive a TEXAS grant in the event of a hardship or other good cause shown that prevents the person from continuing the person's enrollment during the period the person would otherwise have been eligible to receive a TEXAS grant, including a showing of: (1) severe illness or other debilitating condition experienced by the person; or (2) responsibility of the person for the care of a sick, injured, or needy person. (g) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a TEXAS grant in the event of a hardship or for other good cause shown, including a showing of a severe illness or other debilitating condition that may affect the person's academic performance or that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance, to receive a TEXAS grant while enrolled in a number of semester credit hours that is less than the number required by Subsection (a)(5). The coordinating board may not allow a person to receive a TEXAS grant while enrolled in fewer than six semester credit hours or the equivalent. Sec. 56.3042. INITIAL QUALIFICATION [ELIGIBILITY] OF PERSON ON TRACK TO MEET ELIGIBILITY REQUIREMENTS [COMPLETE RECOMMENDED OR ADVANCED CURRICULUM]. (a) If at the time an eligible institution awards TEXAS grants to initial recipients for an academic year an applicant has not completed high school or the applicant's final high school transcript is not yet available to the institution, the student is considered to have satisfied the eligibility requirements of Section 56.304(a)(2)(A) or 56.3041(a)(2)(A) if the student's available high school transcript indicates that at the time the transcript was prepared the student was on schedule to graduate from high school and to meet the eligibility requirements [complete the recommended or advanced high school curriculum or its equivalent], as applicable to the student, in time to be eligible for a TEXAS grant for the academic year. (b) The coordinating board or the eligible institution may require the student to forgo or repay the amount of an initial TEXAS grant awarded to the student as described by Subsection (a) if the student fails to meet the eligibility requirements of Section 56.3041(a)(2)(A) [complete the recommended or advanced high school curriculum or its equivalent] after the issuance of the available high school transcript. (c) A person who is required to forgo or repay the amount of an initial TEXAS grant under Subsection (b) may become eligible to receive an initial TEXAS grant under Section 56.304 or 56.3041 by satisfying the associate degree requirement prescribed by Section 56.304(a)(2)(B) or 56.3041(a)(2)(B) and the other applicable requirements of the [that] section applicable to the person at the time the person reapplies for the grant. (d) A person who receives an initial TEXAS grant under Subsection (a) and is not required to forgo or repay the amount of the grant under Subsection (b) may become eligible to receive a subsequent TEXAS grant under Section 56.305 only by satisfying the associate degree requirement prescribed by Section 56.304(a)(2)(B) or 56.3041(a)(2)(B), as applicable to the person, in addition to the requirements of Section 56.305 at the time the person applies for the subsequent grant. SECTION 4. This Act takes effect January 1, 2013.