| 1 | 1 | | 84R800 KSD-D |
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| 2 | 2 | | By: Turner of Tarrant H.B. No. 1325 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the administration of the Texas B-On-time loan program |
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| 8 | 8 | | to permit a portion of tuition set-asides to be used to fund tuition |
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| 9 | 9 | | exemptions for veterans and other student financial assistance. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 56.465, Education Code, is amended by |
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| 12 | 12 | | amending Subsection (b) and adding Subsections (c) and (d) to read |
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| 13 | 13 | | as follows: |
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| 14 | 14 | | (b) Subject to Subsection (c), the [The] amount of tuition |
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| 15 | 15 | | set aside under Subsection (a) shall be deposited to the credit of |
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| 16 | 16 | | the Texas B-On-time student loan account established under Section |
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| 17 | 17 | | 56.463 or to the interest and sinking fund established by the |
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| 18 | 18 | | coordinating board under Section 52.91(b) in accordance with the |
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| 19 | 19 | | resolution of the board establishing such fund. |
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| 20 | 20 | | (c) If the amount of tuition set aside under Subsection (a) |
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| 21 | 21 | | at an institution of higher education in an academic year exceeds |
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| 22 | 22 | | the amount necessary to fund loans to students of the institution |
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| 23 | 23 | | under the Texas B-On-time loan program in that academic year, the |
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| 24 | 24 | | coordinating board shall permit the institution to retain the |
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| 25 | 25 | | portion of the tuition set aside at the institution that exceeds the |
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| 26 | 26 | | amount necessary to fund loans to students of the institution under |
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| 27 | 27 | | the program. The institution is not required to deposit that |
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| 28 | 28 | | portion of the tuition to the credit of the Texas B-On-time student |
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| 29 | 29 | | loan account or to the interest and sinking fund established under |
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| 30 | 30 | | Section 52.91(b). Any amount retained by the institution under |
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| 31 | 31 | | this subsection may be used only to fund exemptions for veterans and |
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| 32 | 32 | | their family members under Section 54.341. If the amount retained |
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| 33 | 33 | | exceeds the amount necessary to fully fund those exemptions, the |
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| 34 | 34 | | institution shall use any remaining amount to provide financial |
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| 35 | 35 | | assistance to students of the institution in the same manner as |
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| 36 | 36 | | tuition set aside at the institution under Section 56.011. |
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| 37 | 37 | | (d) Under Subsection (c), the coordinating board may not |
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| 38 | 38 | | permit institutions to retain a portion of tuition set aside under |
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| 39 | 39 | | Subsection (a) that would have an adverse impact on the repayment of |
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| 40 | 40 | | bonds issued to provide funding to support the Texas B-On-time loan |
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| 41 | 41 | | program. |
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| 42 | 42 | | SECTION 2. The change in law made by this Act to Section |
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| 43 | 43 | | 56.465, Education Code, does not affect the application of that |
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| 44 | 44 | | section to tuition set aside under that section for any semester or |
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| 45 | 45 | | other academic term before the 2015 fall semester, and the former |
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| 46 | 46 | | law is continued in effect for purposes of the use of that amount |
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| 47 | 47 | | under the Texas B-On-time loan program. |
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| 48 | 48 | | SECTION 3. This Act takes effect immediately if it receives |
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| 49 | 49 | | a vote of two-thirds of all the members elected to each house, as |
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| 50 | 50 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 51 | 51 | | Act does not receive the vote necessary for immediate effect, this |
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| 52 | 52 | | Act takes effect September 1, 2015. |
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