84R3264 KEL-F
By: Ellis S.B. No. 869
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 use
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. Section 56.459, Education Code, is amended by
adding Subsection (g) to read as follows:
(g) An eligible institution that elects to retain the total
amount of tuition set aside for the Texas B-On-time loan program
under Section 56.465(a) shall determine the amount of each Texas
B-On-time loan awarded at that institution, not to exceed the
amount determined under Subsection (a), and shall use the money the
institution allocates to award Texas B-On-time loans to eligible
students enrolled at the institution according to financial need.
SECTION 2. 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 more uniform student
participation among those institutions.
(b) The coordinating board shall assist the financial aid
office 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 3. Section 56.465(b), Education Code, is amended to
read as follows:
(b) Except as provided by Section 56.466, 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.
SECTION 4. Subchapter Q, Chapter 56, Education Code, is
amended by adding Section 56.466 to read as follows:
Sec. 56.466. OPTIONAL RETENTION OF TUITION SET ASIDE FOR
FINANCIAL AID. (a) Notwithstanding the other provisions of this
subchapter, not later than January 1 preceding an academic year,
the governing board of an eligible institution, other than a
private or independent institution of higher education, may elect
to retain all or a stated portion of the amount of tuition to be set
aside by students of the institution under Section 56.465(a) in the
following academic year. The institution shall promptly notify the
coordinating board of its election for each academic year.
(b) An eligible institution that under Subsection (a)
elects to retain an amount of tuition set aside at the institution
in an academic year may use that amount only to:
(1) provide Texas B-On-time loans to eligible students
of the institution; or
(2) provide financial assistance to students of the
institution in the same manner as the institution may use tuition
set aside at the institution under Section 56.011.
(b-1) An eligible institution may retain tuition set aside
at the institution under this section beginning with the tuition
set aside under Section 56.465 in the 2016-2017 academic year. This
subsection expires January 1, 2018.
(c) An eligible student enrolled at an institution that
elects to retain tuition under this section in an academic year may
not be awarded a Texas B-On-time loan in that academic year that is
funded from the Texas B-On-time student loan account unless the
eligible institution uses the entire amount of the tuition withheld
in that academic year to award Texas B-On-time loans to other
students of the institution.
(d) The coordinating board may prohibit institutions from
retaining tuition under Subsection (a) if that action would have a
direct adverse impact on the repayment of any bonds issued on or
before September 1, 2015, to provide funding to support the Texas
B-On-time loan program.
SECTION 5. (a) The change in law made by this Act to Section
56.459, Education Code, applies beginning with the 2016-2017
academic year.
(b) The changes in law made by this Act to Subchapter Q,
Chapter 56, Education Code, do not affect the application of that
subchapter to tuition set aside under that subchapter for any
semester or other academic term before the 2016-2017 academic year,
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 6. 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.