88R545 KJE-D
By: Raney, Lalani, Darby H.B. No. 4005
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the Texas Competency-Based
Education Grant Program for certain students enrolled in
competency-based baccalaureate degree programs and to formula
funding and dropped and repeated course restrictions for students
enrolled in those degree programs at public institutions of higher
education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 56, Education Code, is amended by adding
Subchapter T to read as follows:
SUBCHAPTER T. TEXAS COMPETENCY-BASED EDUCATION GRANT PROGRAM
Sec. 56.521. DEFINITIONS. In this subchapter:
(1) "Competency-based baccalaureate degree program"
means a baccalaureate degree program under which academic credit is
awarded based solely on a student's attainment of competencies.
The term may include a program that is organized around traditional
course-based units, including for online or other distance
education, that a student must earn for degree completion.
(2) "Coordinating board" means the Texas Higher
Education Coordinating Board.
(3) "Eligible institution" means:
(A) a general academic teaching institution;
(B) a private or independent institution of
higher education;
(C) a public junior college authorized to offer
baccalaureate degree programs under Subchapter L, Chapter 130; or
(D) 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.
(4) "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.
(5) "General academic teaching institution," "private
or independent institution of higher education," and "public junior
college" have the meanings assigned by Section 61.003.
(6) "Program" means the Texas Competency-Based
Education Grant Program established under this subchapter.
Sec. 56.522. PURPOSE. The purpose of the Texas
Competency-Based Education Grant Program is to provide financial
assistance to enable eligible students to enroll in
competency-based baccalaureate degree programs at eligible
institutions.
Sec. 56.523. 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. 56.524. 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 enrolled in a competency-based baccalaureate
degree program at an eligible institution;
(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 nonacademic
requirement adopted by the coordinating board under this
subchapter.
(b) A person is not eligible to receive a grant under the
program if the person has been granted a baccalaureate degree.
(c) A person's eligibility for a grant under the program
ends on the earliest of the following dates:
(1) the fourth anniversary of the initial award of a
grant under the program to the person, if at the time of the initial
award the person had earned less than 60 semester credit hours or an
equivalent number of competency units or credits toward the
person's degree;
(2) the second anniversary of the initial award of a
grant under the program to the person, if at the time of the initial
award the person had earned 60 or more semester credit hours or an
equivalent number of competency units or credits toward the
person's degree; or
(3) the date the person receives a baccalaureate
degree.
Sec. 56.525. 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 56.524(a);
(2) makes satisfactory academic progress toward a
baccalaureate degree; and
(3) complies with any additional nonacademic
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's
eligibility for a grant expires under Section 56.524(c), 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 12 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 12 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. 56.526. GRANT USE. A grant awarded under the program
may be applied only to the payment of tuition and required fees at
an eligible institution.
Sec. 56.527. GRANT AMOUNT. (a) The amount of a grant
awarded under the program to a full-time undergraduate student
equivalent enrolled at an eligible institution for an academic year
may not exceed the lesser of:
(1) the difference between the amount of tuition and
required fees charged to the student by the institution for that
academic year and the amount of any other gift aid, including state
or federal grants or scholarships, awarded to the student for that
academic year; or
(2) $500.
(b) The coordinating board may adopt rules that allow the
coordinating board to increase or decrease, in proportion to the
number of semester credit hours or competency units or credits in
which a student is enrolled, the amount of a grant award to a
student who is enrolled in a number of semester credit hours or
competency units or credits in excess of or below 12 semester credit
hours or an equivalent number of competency units or credits.
Sec. 56.528. 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. Section 51.907, Education Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) This section does not apply to a student enrolled in a
competency-based baccalaureate degree program, as defined by
Section 56.521.
SECTION 3. Section 61.059, Education Code, is amended by
adding Subsection (s) to read as follows:
(s) Notwithstanding any other law, the board may not exclude
from being counted in the hours reported to the Legislative Budget
Board for formula funding contact hours or semester credit hours
for a student's enrollment in a course for which the student has
previously generated formula funding if the student is enrolled in
a competency-based baccalaureate degree program, as defined by
Section 56.521.
SECTION 4. Section 61.0595, Education Code, is amended by
adding Subsection (f-1) to read as follows:
(f-1) In the formulas established under Section 61.059, the
board shall include without consideration of Subsection (a) or (e)
of this section funding for semester credit hours earned by a
student who is enrolled in a competency-based baccalaureate degree
program, as defined by Section 56.521.
SECTION 5. Subchapter C, Chapter 61, Education Code, is
amended by adding Section 61.088 to read as follows:
Sec. 61.088. DROPPED OR REPEATED COURSES UNDER
COMPETENCY-BASED BACCALAUREATE DEGREE PROGRAM. The board by rule
shall develop standards for and limitations on dropping or
repeating courses by students enrolled in a competency-based
baccalaureate degree program, as defined by Section 56.521.
SECTION 6. Section 51.907(b-1), Education Code, as added by
this Act, applies beginning with the fall 2023 semester.
SECTION 7. (a) The Texas Higher Education Coordinating
Board shall adopt rules to administer Subchapter T, Chapter 56,
Education Code, as added by this Act, as soon as practicable after
the effective date of this Act.
(b) The Texas Higher Education Coordinating Board shall
begin allocating funds to eligible institutions under Subchapter T,
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 2024-2025 academic
year.
SECTION 8. The changes in law made by this Act to Sections
61.059 and 61.0595, Education Code, apply beginning with funding
recommendations made under Section 61.059, Education Code, for the
state fiscal biennium beginning September 1, 2025.
SECTION 9. The Texas Higher Education Coordinating Board
shall adopt rules under Section 61.088, Education Code, as added by
this Act, as soon as practicable after this Act takes effect.
SECTION 10. 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, 2023.