85R7340 MM-F By: Lozano, Zerwas H.B. No. 2290 A BILL TO BE ENTITLED AN ACT relating to the establishment of the Texas Returning Adult Student Grant Program for certain students enrolled in baccalaureate degree programs at certain postsecondary educational institutions. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 56, Education Code, is amended by adding Subchapter U to read as follows: SUBCHAPTER U. TEXAS RETURNING ADULT STUDENT GRANT PROGRAM Sec. 56.601. DEFINITIONS. In this subchapter: (1) "Coordinating board" means the Texas Higher Education Coordinating Board. (2) "Eligible institution" means: (A) a general academic teaching institution; or (B) a nonprofit, tax-exempt, regionally accredited college or university operating in accordance with a memorandum of understanding with this state under an executive order issued by the governor and offering competency-based, exclusively online baccalaureate degree programs. (3) "Expected family contribution" means the amount of discretionary income that should be available to a student from the resources of the student and of the student's family, as determined by the coordinating board following the methodology prescribed by the United States Department of Education for the purpose of determining a student's eligibility for need-based student financial assistance. (4) "General academic teaching institution" has the meaning assigned by Section 61.003. (5) "Program" means the Texas Returning Adult Student Grant Program established under this subchapter. (6) "Returning adult student" means a student who: (A) is over the age of 25; (B) has earned college credit but has not obtained a postsecondary degree; and (C) is enrolled in a baccalaureate degree program at an eligible institution. Sec. 56.602. PURPOSE. The purpose of the Texas Returning Adult Student Grant Program is to provide financial assistance to eligible returning adult students enrolling in baccalaureate degree programs at eligible institutions. Sec. 56.603. ADMINISTRATION OF PROGRAM; PRIORITY FOR FINANCIAL NEED. (a) The coordinating board shall: (1) administer the program; (2) using the negotiated rulemaking procedures under Chapter 2008, Government Code, adopt rules for determining the allocation of funds under the program among eligible institutions; and (3) adopt any other rules necessary to implement the program or this subchapter. (b) The coordinating board shall consult with the student financial aid officers of eligible institutions in developing the rules adopted under Subsection (a). (c) The total amount of grants awarded under the program may not exceed the amount available for the program from appropriations, gifts, grants, or other funds. (d) In determining who should receive a grant under the program, the coordinating board and the eligible institutions shall give highest priority to awarding grants to students who demonstrate the greatest unmet financial need. Sec. 56.604. INITIAL ELIGIBILITY FOR GRANT. (a) To be eligible initially for a grant under the program, a person must: (1) be a resident of this state as determined by coordinating board rules; (2) meet financial need requirements as defined by coordinating board rules, including a requirement that the person's expected family contribution for the academic year does not exceed the maximum expected family contribution established for this purpose by the coordinating board; (3) be a returning adult student; (4) not be receiving a TEXAS grant under Subchapter M, a tuition equalization grant under Subchapter F, Chapter 61, or any other state-funded student financial assistance for the same academic period; and (5) comply with any additional requirement adopted by the coordinating board under this subchapter. (b) A person may not receive a grant under the program for more than the greater of: (1) 135 semester credit hours or the equivalent; or (2) 15 semester credit hours or the equivalent in excess of the number of semester credit hours required for the degree program in which the person is enrolled. Sec. 56.605. CONTINUING ELIGIBILITY AND ACADEMIC PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a grant under the program, a person may continue to receive a grant under the program during each semester or term in which the person is enrolled at an eligible institution only if the person: (1) meets the criteria for initial eligibility under Section 56.604(a); (2) makes satisfactory academic progress toward a baccalaureate degree; and (3) complies with any additional requirement adopted by the coordinating board. (b) If a person fails to meet any of the requirements of Subsection (a) after the completion of any semester or term, the person may not receive a grant under the program during the next semester or term in which the person enrolls. Unless the person is no longer eligible for a grant under Section 56.604(b), a person may become eligible to receive a grant under the program in a subsequent semester or term if the person: (1) completes at least 15 semester credit hours or an equivalent number of competency units or credits in a semester or term during which the student is not eligible for a grant; and (2) meets all the requirements of Subsection (a). (c) For the purpose of this section, a person makes satisfactory academic progress toward a baccalaureate degree only if the person completes at least 15 semester credit hours or an equivalent number of competency units or credits in each semester or term in which the person is enrolled. (d) The coordinating board shall adopt rules to allow a person who is otherwise eligible to receive a grant under the program to receive a grant if the student's completion rate falls below the satisfactory academic progress requirements of this section in the event of a hardship or for other good cause shown, including: (1) a showing of a severe illness or other debilitating condition that may affect the person's academic performance; or (2) a showing that the person is responsible for the care of a sick, injured, or needy person and that the person's provision of care may affect the person's academic performance. Sec. 56.606. GRANT USE. A person receiving a grant under this subchapter may use the money only to pay the amount of tuition and required fees and the cost of required textbooks incurred by the student at an eligible institution. The institution may disburse all or part of the proceeds of a grant under the program to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid. Sec. 56.607. GRANT AMOUNT. The amount of a grant awarded to a person under the program for a semester or other academic term is an amount not to exceed the lesser of: (1) the difference between: (A) the amount of tuition and required fees incurred by the student at an eligible institution for that semester or term plus a textbook stipend in an amount determined by the coordinating board; and (B) the amount of the Pell Grant for which the student is eligible, if any; or (2) the student's unmet financial need for that semester or term. Sec. 56.608. GRANT NOT TO AFFECT ADMISSION. An eligible institution may not deny admission to or enrollment in the institution based on a person's eligibility to receive a grant under the program or a person's receipt of a grant under the program. SECTION 2. (a) The Texas Higher Education Coordinating Board shall adopt rules to administer Subchapter U, Chapter 56, Education Code, as added by this Act, as soon as practicable after the effective date of this Act. For that purpose, the coordinating board may adopt the initial rules in the manner provided by law for emergency rules. (b) The Texas Higher Education Coordinating Board shall begin allocating funds to eligible institutions under Subchapter U, Chapter 56, Education Code, as added by this Act, for the first academic year for which money is appropriated for that purpose, except that the coordinating board may not allocate funds under that subchapter for an academic year before the 2018-2019 academic year. SECTION 3. 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, 2017.