By: West S.B. No. 1656
(In the Senate - Filed March 13, 2015; March 23, 2015, read
first time and referred to Committee on Higher Education;
April 7, 2015, reported favorably by the following vote: Yeas 7,
Nays 0; April 7, 2015, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the administration of the scholarship program for
certain students graduating in the top 10 percent of the students'
high school graduating class.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 56.483, 56.484, and 56.486, Education
Code, are amended to read as follows:
Sec. 56.483. ADMINISTRATION OF PROGRAM [AWARD OF
SCHOLARSHIP]. (a) The coordinating board shall administer the Top
10 Percent Scholarship Program established [award scholarships to
eligible students] under this subchapter and shall adopt rules as
necessary to implement the program at institutions of higher
education. The coordinating board shall consult with student
financial aid officers at institutions of higher education in
developing the rules.
(b) The total amount of scholarships awarded under this
subchapter may not exceed the amount available for the program from
legislative appropriations [An institution of higher education
shall provide to a student who receives a scholarship under the
program for a semester or other academic term:
[(1) a credit in the amount of the scholarship, to be
applied toward the payment of any amount of educational costs
charged by the institution for that semester or term; and
[(2) a check, electronic transfer, or other
disbursement of any remaining scholarship amount].
[(c) An amount paid under Subsection (b)(2) may be applied
only to any usual and customary cost incurred by the student to
attend the institution of higher education.]
Sec. 56.484. INITIAL ELIGIBILITY FOR SCHOLARSHIP. To be
eligible for a scholarship under this subchapter, a student must:
(1) have graduated from a public or accredited private
high school in this state while ranked in the top 10 percent of the
student's graduating class, subject to Section 56.487(b);
(2) have completed the recommended, [or] advanced, or
distinguished high school curriculum established under Section
28.025, the distinguished level of achievement under the foundation
high school program, or an [its] equivalent curriculum;
(3) demonstrate financial need as defined by
coordinating board rules [have applied for admission as a
first-time freshman student for the 2010-2011 academic year or a
subsequent academic year to an institution of higher education that
has elected to offer admissions for that academic year to
applicants as provided by Section 51.803(a-1)];
(4) unless granted a hardship extension under Section
56.490, enroll as a first-time freshman student in an institution
of higher education not later than the first fall semester
following the student's high school graduation and maintain
full-time enrollment through the census date of that fall semester
[not later than the 16th month after the date of the student's high
school graduation];
(5) [have been awarded a TEXAS grant under Subchapter
M for the same semester or other academic term for which the
scholarship will be awarded;
[(6)] be a Texas resident under Section 54.052; and
(6) [(7)] comply with any other eligibility
requirements established by coordinating board rule.
Sec. 56.486. AMOUNT OF SCHOLARSHIP. The [(a) Except as
provided by Subsection (b), the] amount of a scholarship for an
academic year [each semester or other academic term] in which an
eligible student is enrolled at an institution of higher education
is an amount determined annually by the coordinating board based on
available funds [sufficient to cover, but not exceed, the amount of
tuition charged to the student for that semester or term].
[(b) The amount of a scholarship for each semester or other
academic term may not exceed the amount of the student's unmet
financial need for that semester or term after any other gift aid
has been awarded.
[(c) The coordinating board shall issue to each eligible
student a certificate indicating the amount of the scholarship
awarded to the student.]
SECTION 2. Subchapter R, Chapter 56, Education Code, is
amended by adding Section 56.4865 to read as follows:
Sec. 56.4865. SCHOLARSHIP USE; PAYMENT. (a) A student
receiving a scholarship under the program may use the money to pay
any usual and customary cost of attendance incurred by the student
at an institution of higher education.
(b) An institution of higher education may disburse all or
part of a scholarship to an eligible student only if the tuition and
required fees incurred by the student at the institution have been
paid.
SECTION 3. Sections 56.487(a), (b), and (c), Education
Code, are amended to read as follows:
(a) The coordinating board shall establish application
procedures for the program. [The procedures may require an officer
of the applicable high school or school district to verify the
eligibility of a student to receive a scholarship under the
program.]
(b) An institution of higher education shall obtain the
necessary documentation from the applicable high school or school
district to verify a student's eligibility. An institution of
higher education shall verify a student's [The coordinating board
may permit a student to establish] initial eligibility based on the
student's class rank at the end of the student's seventh semester in
high school unless the institution uses a different semester in
determining student eligibility for admission to the institution.
[The board may revoke an initial scholarship awarded to a student
who subsequently loses eligibility based on the student's class
rank on graduation from high school.]
(c) An institution of higher education [The coordinating
board] may consider applications received after the uniform
priority [application] deadline prescribed by the coordinating
board under Section 56.008 only if sufficient funding for
scholarships remains after the institution [board] awards
scholarships to all eligible students who applied on or before the
deadline.
SECTION 4. Sections 56.488, 56.489, 56.490, and 56.492,
Education Code, are amended to read as follows:
Sec. 56.488. CONTINUING ELIGIBILITY FOR SCHOLARSHIP.
(a) After establishing eligibility to receive an initial
scholarship under the program, a student may qualify for a renewal
scholarship award in a [continue to receive additional scholarships
during each] subsequent [semester or other] academic year [term] in
which the student is enrolled at an institution of higher education
if the student:
(1) makes satisfactory academic progress as required
by Section 56.489;
(2) submits to the institution transcripts for any
coursework completed at other public or private institutions of
higher education; and
(3) [has been awarded a TEXAS grant under Subchapter M
for the same semester or other academic term for which the
scholarship will be awarded; and
[(4)] complies with any other eligibility
requirements established by coordinating board rule.
(b) If a student fails to meet any of the requirements of
Subsection (a) as of the end of an academic year [after completing a
semester or other academic term], the student may not receive a
scholarship during the next [semester or other] academic year
[term] in which the student enrolls. A student may become eligible
to receive a scholarship in a subsequent academic year [semester or
term] if the student:
(1) completes an academic year [a semester or term]
during which the student is not eligible for a scholarship; and
(2) meets all the requirements of Subsection (a).
(c) Except as provided by Section 56.490(b), a student's
eligibility for a scholarship under the program ends on the fourth
anniversary of the first day of the semester or other academic term
for which the student was awarded an initial scholarship under the
program.
Sec. 56.489. SATISFACTORY ACADEMIC PROGRESS. A [For each
academic year in which a] student initially awarded a scholarship
under this subchapter in an academic year makes satisfactory
academic progress in a subsequent academic year for purposes of
this subchapter only if [receives one or more scholarships under
the program,] the student [must]:
(1) completes [complete] for that year[:
[(A) at least 75 percent of all credit hours
attempted, as determined by the institution of higher education in
which the student is enrolled; and
[(B)] at least 30 credit hours or the number of
credit hours needed to complete the student's degree or certificate
program, whichever is less; and
(2) maintains [maintain] an overall grade point
average of at least 3.25 on a four-point scale or its equivalent for
all coursework attempted at any public or private institution of
higher education.
Sec. 56.490. EXCEPTION FOR HARDSHIP OR OTHER GOOD CAUSE.
(a) Each institution of higher education shall adopt a policy to
allow a student who fails to enroll as a first-time freshman student
at an institution of higher education within the period prescribed
by Section 56.484(4) or who fails to make satisfactory academic
progress as required by Section 56.489 to receive a scholarship in a
subsequent semester or other academic term on a showing of hardship
or other good cause, including:
(1) a showing of a severe illness or other
debilitating condition that could affect the student's academic
performance;
(2) an indication that the student is responsible for
the care of a sick, injured, or needy person and that the student's
provision of care could affect the student's academic performance;
or
(3) any other cause considered acceptable by the
coordinating board.
(b) An institution of higher education may extend the
eligibility period described by Section 56.488(c) in the event of
hardship or other good cause as provided by the institution's
policy adopted under Subsection (a), except that the institution
may not extend a student's eligibility beyond four annual
scholarship awards or for less than full-time enrollment.
(c) An institution of higher education shall maintain
documentation of each exception granted to a student under this
section [and shall provide timely notice of those exceptions to the
coordinating board].
Sec. 56.492. DISBURSEMENTS [REIMBURSEMENT]. (a) Each
institution of higher education that provides scholarships under
the program to eligible students enrolled at the institution shall
receive, in accordance with coordinating board rules, a share of
the funds appropriated for the program [is entitled to
reimbursement by the coordinating board of the amounts provided.
The institution must request reimbursement in the manner specified
by coordinating board rule].
(b) On approval of an institution's request for funds
[reimbursement], the coordinating board shall direct the
comptroller to transfer the appropriate amount to the institution.
The institution may use the transferred funds as reimbursement for
any credits provided to students under this subchapter, to
reimburse students for charges previously paid to the institution,
or to make scholarship payments to students, as applicable.
SECTION 5. Sections 56.485 and 56.487(d), Education Code,
are repealed.
SECTION 6. The changes in law made by this Act to Subchapter
R, Chapter 56, Education Code, apply beginning with scholarships
awarded under that subchapter for the 2015-2016 academic year.
SECTION 7. 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, 2015.
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