By: Seliger, et al. S.B. No. 18
A BILL TO BE ENTITLED
AN ACT
relating to public institutions of higher education setting aside
portions of designated tuition for student financial assistance.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 56, Education Code, is
amended by adding Sections 56.0093 and 56.0094 to read as follows:
Sec. 56.0093. REPORT REGARDING DESIGNATED TUITION SET ASIDE
FOR STUDENT FINANCIAL ASSISTANCE. (a) In this section,
"coordinating board" means the Texas Higher Education Coordinating
Board.
(b) This section applies only to the governing board of an
institution of higher education that sets aside any portion of the
tuition charged by the institution to a resident student under
Section 54.0513 for the purpose of providing financial assistance
for resident students enrolled in an undergraduate, graduate, or
professional degree program at the institution.
(c) Not later than August 31 of each year, the governing
board of an institution to which this section applies shall submit
to the coordinating board a written report regarding any tuition
set aside by the institution as described by Subsection (b) in the
preceding fall, spring, or summer term. The report must include:
(1) the amount of tuition set aside by the institution
as described by Subsection (b) for each applicable term;
(2) the percentage of the total amount of tuition
charged by the institution under Section 54.0513 for each
applicable term that was set aside by the institution as described
by Subsection (b); and
(3) the types of student financial assistance provided
using the funds set aside by the institution as described by
Subsection (b).
(d) The coordinating board shall disseminate to each public
or accredited private high school in this state the information
provided in Subsection (c) in a way designed to educate high school
students and the parents of those students on available
opportunities and required preparation with respect to
institutions of higher education.
(e) The coordinating board may adopt rules to administer
this section.
Sec. 56.0094. NOTICE TO STUDENTS REGARDING TUITION SET
ASIDE FOR FINANCIAL ASSISTANCE. (a) An institution of higher
education that sets aside a portion of a student's tuition payments
to provide financial assistance for students enrolled in the
institution shall provide to each student of the institution who
pays tuition from which a portion is set aside for that purpose a
notice regarding the specific amount that is set aside by the
institution.
(b) The institution shall provide the notice required by
Subsection (a) to the student in a prominently printed statement
that appears on or is included with:
(1) the student's tuition bill or billing statement,
if the institution provides the student with a printed bill or
billing statement for the payment of the student's tuition; or
(2) the student's tuition receipt, if the institution
provides the student with a printed receipt evidencing the payment
of the student's tuition.
(c) If for any semester or other academic term the
institution does not provide the student with a printed tuition
bill, tuition billing statement, or tuition receipt, the
institution shall include the notice required by Subsection (a) for
that semester or other term in a statement prominently displayed in
an e-mail sent to the student. The notice may be included in any
other e-mail sent to the student in connection with the student's
tuition charges for that semester or other term.
(d) The Texas Higher Education Coordinating Board by rule
shall prescribe minimum standards for the manner, form, and content
of the notice required by this section.
SECTION 2. Chapter 56, Education Code, is amended by adding
Subchapter U to read as follows:
SUBCHAPTER U. TEXAS STUDENTS FIRST GRANT PROGRAM
Sec. 56.641. DEFINITIONS. In this subchapter:
(1) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(2) "General academic teaching institution" has the
meaning assigned by Section 61.003.
(3) "Eligible institution" means a general academic
teaching institution that satisfies the requirements of Section
56.644.
(4) "Program" means the Texas Students First Grant
Program established under this subchapter.
(5) "Tuition" includes:
(A) tuition for which the rates are prescribed by
Chapter 54; and
(B) tuition charged by a general academic
teaching institution under Section 54.0513 or another law
authorizing an institution to establish tuition rates.
Sec. 56.642. PURPOSE. The purpose of the Texas Students
First Grant Program is to provide financial assistance to students
with financial need at general academic teaching institutions that
have successfully controlled tuition costs charged to students at
the institution.
Sec. 56.643. ADMINISTRATION OF PROGRAM; PRIORITY FOR GRANT
AWARDS. (a) The coordinating board shall:
(1) administer the program;
(2) 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 rules
adopted under Subsection (a).
(c) In awarding grants under the program, priority shall be
given to eligible students whose cost for tuition and required fees
is not fully met through other non-loan financial assistance
programs.
Sec. 56.644. ELIGIBLE INSTITUTIONS. (a) A general
academic teaching institution is eligible to participate in the
program for an academic year only if the total amount of tuition
charged by the institution to each student for that academic year is
at least five percent less than the total amount of tuition that the
institution would have charged to a similarly situated student for
the 2017-2018 academic year.
(b) For purposes of this section, students are similarly
situated if they share the same residency status, degree program,
course load, course level, tuition exemption status, and other
circumstances affecting the tuition charged to the student.
Sec. 56.645. ELIGIBILITY FOR GRANT. To be eligible for a
grant under the program, a person must:
(1) be a resident of this state as determined by
coordinating board rules;
(2) be enrolled as an undergraduate student at an
eligible institution;
(3) meet financial need requirements as defined by
coordinating board rules;
(4) comply with any additional requirement adopted by
the coordinating board under this subchapter; and
(5) be eligible for federal financial aid, except that
a person is not required to meet any financial aid need requirement
applicable to a particular federal financial aid program.
Sec. 56.646. 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.
Sec. 56.647. GRANT AMOUNT. (a) The coordinating board by
rule shall prescribe the maximum amount of a grant awarded to a
person under the program for a semester or other academic term.
(b) 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.
Sec. 56.648. FUNDING. (a) The coordinating board may
solicit and accept gifts, grants, and donations from any public or
private source for the purposes of this subchapter.
(b) The legislature may appropriate money for the purposes
of this subchapter.
SECTION 3. Subchapter B, Chapter 56, Education Code, is
repealed.
SECTION 4. The changes in law made by this Act apply
beginning with tuition charged for the 2018 spring semester.
Tuition charged for any semester or other academic term before the
2018 spring semester is covered by the applicable law as it existed
before the effective date of this Act, and the former law is
continued in effect for that purpose.
SECTION 5. The Texas Higher Education Coordinating Board
shall adopt rules for the administration of Subchapter U, Chapter
56, Education Code, as added by this Act, as soon as practicable
after the effective date of this Act.
SECTION 6. This Act takes effect September 1, 2017.