By: Giddings H.B. No. 3372
A BILL TO BE ENTITLED
AN ACT
relating to the administration of the Texas B-On-time loan program
and to permitting an institution of higher education to retain
excess B-On-time tuition set-asides to provide financial
assistance to students of the institution.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Q, Chapter 56, Education Code, is
amended by adding Section 56.4601 to read as follows:
Sec. 56.4601. PROMOTING UNIFORM STUDENT PARTICIPATION IN
PROGRAM. (a) The coordinating board shall examine the
administration of the Texas B-On-time loan program at institutions
of higher education to identify the reasons for different rates of
student participation in the program at those institutions and
shall develop strategies for achieving a more uniform student
participation among those institutions.
(b) The coordinating board shall assist the financial aid
office and administration of each institution of higher education
with a student participation rate in the Texas B-On-time loan
program that is less than the average statewide student
participation rate in the program for institutions of higher
education to develop and implement strategies to improve student
participation at the institution, including strategies to better
inform students and prospective students about the program and to
assist students to qualify for and achieve maximum benefits under
the program.
SECTION 2. Section 56.465, Education Code, is amended by
amending Subsection (b) and adding Subsections (c), (c-1), and (d)
to read as follows:
(b) Subject to Subsection (c), the [The] amount of tuition
set aside under Subsection (a) shall be deposited to the credit of
the Texas B-On-time student loan account established under Section
56.463 or to the interest and sinking fund established by the
coordinating board under Section 52.91(b) in accordance with the
resolution of the board establishing such fund.
(c) If in the preceding academic year the students of an
institution of higher education receive a percentage of the total
amount of Texas B-On-time loans made to students at all
institutions of higher education that is less than the percentage
of the total amount of tuition set aside under Subsection (a) in
that year at all institutions of higher education that was set aside
at that institution, the coordinating board shall permit the
institution to retain a portion of the tuition set aside at the
institution in the current academic year so that the amount of that
tuition set aside at that institution in the current academic year
that is deposited to the credit of the Texas B-On-time student loan
account or to the interest and sinking fund established under
Section 52.91(b) reflects the institution's percentage of the total
amount of Texas B-On-time loans made to students at all
institutions of higher education in the preceding academic year.
The institution may use the retained portion of the tuition set
aside under Subsection (a) only to provide financial assistance to
students of the institution in the same manner as tuition set aside
at the institution under Section 56.011.
(c-1) The coordinating board shall permit qualifying
institutions of higher education to retain a portion of the tuition
set aside at each institution under Subsection (c) beginning with
the tuition set aside under Subsection (a) in the 2013-2014
academic year, based on the appropriate information regarding Texas
B-On-time loans and tuition set-asides for the 2012-2013 academic
year. This subsection expires January 1, 2015.
(d) Under Subsection (c), the coordinating board may not
permit institutions to retain a portion of tuition set aside under
Subsection (a) that would have a direct adverse impact on the
repayment of bonds issued on or before September 1, 2013, to provide
funding to support the Texas B-On-time loan program.
SECTION 3. The change in law made by this Act to Section
56.465, Education Code, does not affect the application of that
section to tuition set aside under that section for any semester or
other academic term before the 2013 fall semester, and the former
law is continued in effect for purposes of the use of that amount
under the Texas B-On-time loan program.
SECTION 4. 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, 2013.