Texas 2015 - 84th Regular

Texas Senate Bill SB869 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R3264 KEL-F
2	2	By: Ellis S.B. No. 869
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the administration of the Texas B-On-time loan program
8	8	and to permitting an institution of higher education to use
9	9	B-On-time tuition set-asides to provide financial assistance to
10	10	students of the institution.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 56.459, Education Code, is amended by
13	13	adding Subsection (g) to read as follows:
14	14	(g) An eligible institution that elects to retain the total
15	15	amount of tuition set aside for the Texas B-On-time loan program
16	16	under Section 56.465(a) shall determine the amount of each Texas
17	17	B-On-time loan awarded at that institution, not to exceed the
18	18	amount determined under Subsection (a), and shall use the money the
19	19	institution allocates to award Texas B-On-time loans to eligible
20	20	students enrolled at the institution according to financial need.
21	21	SECTION 2. Subchapter Q, Chapter 56, Education Code, is
22	22	amended by adding Section 56.4601 to read as follows:
23	23	Sec. 56.4601. PROMOTING UNIFORM STUDENT PARTICIPATION IN
24	24	PROGRAM. (a) The coordinating board shall examine the
25	25	administration of the Texas B-On-time loan program at institutions
26	26	of higher education to identify the reasons for different rates of
27	27	student participation in the program at those institutions and
28	28	shall develop strategies for achieving more uniform student
29	29	participation among those institutions.
30	30	(b) The coordinating board shall assist the financial aid
31	31	office of each institution of higher education with a student
32	32	participation rate in the Texas B-On-time loan program that is less
33	33	than the average statewide student participation rate in the
34	34	program for institutions of higher education to develop and
35	35	implement strategies to improve student participation at the
36	36	institution, including strategies to better inform students and
37	37	prospective students about the program and to assist students to
38	38	qualify for and achieve maximum benefits under the program.
39	39	SECTION 3. Section 56.465(b), Education Code, is amended to
40	40	read as follows:
41	41	(b) Except as provided by Section 56.466, the [The] amount
42	42	of tuition set aside under Subsection (a) shall be deposited to the
43	43	credit of the Texas B-On-time student loan account established
44	44	under Section 56.463 or to the interest and sinking fund
45	45	established by the coordinating board under Section 52.91(b) in
46	46	accordance with the resolution of the board establishing such fund.
47	47	SECTION 4. Subchapter Q, Chapter 56, Education Code, is
48	48	amended by adding Section 56.466 to read as follows:
49	49	Sec. 56.466. OPTIONAL RETENTION OF TUITION SET ASIDE FOR
50	50	FINANCIAL AID. (a) Notwithstanding the other provisions of this
51	51	subchapter, not later than January 1 preceding an academic year,
52	52	the governing board of an eligible institution, other than a
53	53	private or independent institution of higher education, may elect
54	54	to retain all or a stated portion of the amount of tuition to be set
55	55	aside by students of the institution under Section 56.465(a) in the
56	56	following academic year. The institution shall promptly notify the
57	57	coordinating board of its election for each academic year.
58	58	(b) An eligible institution that under Subsection (a)
59	59	elects to retain an amount of tuition set aside at the institution
60	60	in an academic year may use that amount only to:
61	61	(1) provide Texas B-On-time loans to eligible students
62	62	of the institution; or
63	63	(2) provide financial assistance to students of the
64	64	institution in the same manner as the institution may use tuition
65	65	set aside at the institution under Section 56.011.
66	66	(b-1) An eligible institution may retain tuition set aside
67	67	at the institution under this section beginning with the tuition
68	68	set aside under Section 56.465 in the 2016-2017 academic year. This
69	69	subsection expires January 1, 2018.
70	70	(c) An eligible student enrolled at an institution that
71	71	elects to retain tuition under this section in an academic year may
72	72	not be awarded a Texas B-On-time loan in that academic year that is
73	73	funded from the Texas B-On-time student loan account unless the
74	74	eligible institution uses the entire amount of the tuition withheld
75	75	in that academic year to award Texas B-On-time loans to other
76	76	students of the institution.
77	77	(d) The coordinating board may prohibit institutions from
78	78	retaining tuition under Subsection (a) if that action would have a
79	79	direct adverse impact on the repayment of any bonds issued on or
80	80	before September 1, 2015, to provide funding to support the Texas
81	81	B-On-time loan program.
82	82	SECTION 5. (a) The change in law made by this Act to Section
83	83	56.459, Education Code, applies beginning with the 2016-2017
84	84	academic year.
85	85	(b) The changes in law made by this Act to Subchapter Q,
86	86	Chapter 56, Education Code, do not affect the application of that
87	87	subchapter to tuition set aside under that subchapter for any
88	88	semester or other academic term before the 2016-2017 academic year,
89	89	and the former law is continued in effect for purposes of the use of
90	90	that amount under the Texas B-On-time loan program.
91	91	SECTION 6. This Act takes effect immediately if it receives
92	92	a vote of two-thirds of all the members elected to each house, as
93	93	provided by Section 39, Article III, Texas Constitution. If this
94	94	Act does not receive the vote necessary for immediate effect, this
95	95	Act takes effect September 1, 2015.