Texas 2023 - 88th Regular

Texas House Bill HB4005 Compare Versions

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1	1	H.B. No. 4005
2	2
3	3
4	4	AN ACT
5	5	relating to the establishment of the Texas Competency-Based
6	6	Education Grant Program for certain students enrolled in
7	7	competency-based baccalaureate degree programs and to formula
8	8	funding and dropped and repeated course restrictions for students
9	9	enrolled in those degree programs at public institutions of higher
10	10	education.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 56, Education Code, is amended by adding
13	13	Subchapter T to read as follows:
14	14	SUBCHAPTER T. TEXAS COMPETENCY-BASED EDUCATION GRANT PROGRAM
15	15	Sec. 56.521. DEFINITIONS. In this subchapter:
16	16	(1) "Competency-based baccalaureate degree program"
17	17	means a baccalaureate degree program under which academic credit is
18	18	awarded based solely on a student's attainment of competencies.
19	19	The term may include a program that is organized around traditional
20	20	course-based units, including for online or other distance
21	21	education, that a student must earn for degree completion.
22	22	(2) "Coordinating board" means the Texas Higher
23	23	Education Coordinating Board.
24	24	(3) "Eligible institution" means:
25	25	(A) a general academic teaching institution;
26	26	(B) a private or independent institution of
27	27	higher education;
28	28	(C) a public junior college authorized to offer
29	29	baccalaureate degree programs under Subchapter L, Chapter 130; or
30	30	(D) a nonprofit, tax-exempt, regionally
31	31	accredited college or university operating in accordance with a
32	32	memorandum of understanding with this state under an executive
33	33	order issued by the governor and offering competency-based,
34	34	exclusively online baccalaureate degree programs.
35	35	(4) "Expected family contribution" means the amount of
36	36	discretionary income that should be available to a student from the
37	37	resources of the student and of the student's family, as determined
38	38	by the coordinating board following the methodology prescribed by
39	39	the United States Department of Education for the purpose of
40	40	determining a student's eligibility for need-based student
41	41	financial assistance.
42	42	(5) "General academic teaching institution," "private
43	43	or independent institution of higher education," and "public junior
44	44	college" have the meanings assigned by Section 61.003.
45	45	(6) "Program" means the Texas Competency-Based
46	46	Education Grant Program established under this subchapter.
47	47	Sec. 56.522. PURPOSE. The purpose of the Texas
48	48	Competency-Based Education Grant Program is to provide financial
49	49	assistance to enable eligible students to enroll in
50	50	competency-based baccalaureate degree programs at eligible
51	51	institutions.
52	52	Sec. 56.523. ADMINISTRATION OF PROGRAM; PRIORITY FOR
53	53	FINANCIAL NEED. (a) The coordinating board shall:
54	54	(1) administer the program;
55	55	(2) using the negotiated rulemaking procedures under
56	56	Chapter 2008, Government Code, adopt rules for determining the
57	57	allocation of funds under the program among eligible institutions;
58	58	and
59	59	(3) adopt any other rules necessary to implement the
60	60	program or this subchapter.
61	61	(b) The coordinating board shall consult with the student
62	62	financial aid officers of eligible institutions in developing the
63	63	rules adopted under Subsection (a).
64	64	(c) The total amount of grants awarded under the program may
65	65	not exceed the amount available for the program from
66	66	appropriations, gifts, grants, or other funds.
67	67	(d) In determining who should receive a grant under the
68	68	program, the coordinating board and the eligible institutions shall
69	69	give highest priority to awarding grants to students who
70	70	demonstrate the greatest unmet financial need.
71	71	Sec. 56.524. INITIAL ELIGIBILITY FOR GRANT. (a) To be
72	72	eligible initially for a grant under the program, a person must:
73	73	(1) be a resident of this state as determined by
74	74	coordinating board rules;
75	75	(2) meet financial need requirements as defined by
76	76	coordinating board rules, including a requirement that the person's
77	77	expected family contribution for the academic year does not exceed
78	78	the maximum expected family contribution established for this
79	79	purpose by the coordinating board;
80	80	(3) be enrolled in a competency-based baccalaureate
81	81	degree program at an eligible institution;
82	82	(4) not be receiving a TEXAS grant under Subchapter M,
83	83	a tuition equalization grant under Subchapter F, Chapter 61, or any
84	84	other state-funded student financial assistance for the same
85	85	academic period; and
86	86	(5) comply with any additional nonacademic
87	87	requirement adopted by the coordinating board under this
88	88	subchapter.
89	89	(b) A person is not eligible to receive a grant under the
90	90	program if the person has been granted a baccalaureate degree.
91	91	(c) A person's eligibility for a grant under the program
92	92	ends on the earliest of the following dates:
93	93	(1) the fourth anniversary of the initial award of a
94	94	grant under the program to the person, if at the time of the initial
95	95	award the person had earned less than 60 semester credit hours or an
96	96	equivalent number of competency units or credits toward the
97	97	person's degree;
98	98	(2) the second anniversary of the initial award of a
99	99	grant under the program to the person, if at the time of the initial
100	100	award the person had earned 60 or more semester credit hours or an
101	101	equivalent number of competency units or credits toward the
102	102	person's degree; or
103	103	(3) the date the person receives a baccalaureate
104	104	degree.
105	105	Sec. 56.525. CONTINUING ELIGIBILITY AND ACADEMIC
106	106	PERFORMANCE REQUIREMENTS. (a) After initially qualifying for a
107	107	grant under the program, a person may continue to receive a grant
108	108	under the program during each semester or term in which the person
109	109	is enrolled at an eligible institution only if the person:
110	110	(1) meets the criteria for initial eligibility under
111	111	Section 56.524(a);
112	112	(2) makes satisfactory academic progress toward a
113	113	baccalaureate degree; and
114	114	(3) complies with any additional nonacademic
115	115	requirement adopted by the coordinating board.
116	116	(b) If a person fails to meet any of the requirements of
117	117	Subsection (a) after the completion of any semester or term, the
118	118	person may not receive a grant under the program during the next
119	119	semester or term in which the person enrolls. Unless the person's
120	120	eligibility for a grant expires under Section 56.524(c), a person
121	121	may become eligible to receive a grant under the program in a
122	122	subsequent semester or term if the person:
123	123	(1) completes at least 12 semester credit hours or an
124	124	equivalent number of competency units or credits in a semester or
125	125	term during which the student is not eligible for a grant; and
126	126	(2) meets all the requirements of Subsection (a).
127	127	(c) For the purpose of this section, a person makes
128	128	satisfactory academic progress toward a baccalaureate degree only
129	129	if the person completes at least 12 semester credit hours or an
130	130	equivalent number of competency units or credits in each semester
131	131	or term in which the person is enrolled.
132	132	(d) The coordinating board shall adopt rules to allow a
133	133	person who is otherwise eligible to receive a grant under the
134	134	program to receive a grant if the student's completion rate falls
135	135	below the satisfactory academic progress requirements of this
136	136	section in the event of a hardship or for other good cause shown,
137	137	including:
138	138	(1) a showing of a severe illness or other
139	139	debilitating condition that may affect the person's academic
140	140	performance; or
141	141	(2) a showing that the person is responsible for the
142	142	care of a sick, injured, or needy person and that the person's
143	143	provision of care may affect the person's academic performance.
144	144	Sec. 56.526. GRANT USE. A grant awarded under the program
145	145	may be applied only to the payment of tuition and required fees at
146	146	an eligible institution.
147	147	Sec. 56.527. GRANT AMOUNT. (a) The amount of a grant
148	148	awarded under the program to a full-time undergraduate student
149	149	equivalent enrolled at an eligible institution for an academic year
150	150	may not exceed the lesser of:
151	151	(1) the difference between the amount of tuition and
152	152	required fees charged to the student by the institution for that
153	153	academic year and the amount of any other gift aid, including state
154	154	or federal grants or scholarships, awarded to the student for that
155	155	academic year; or
156	156	(2) $500.
157	157	(b) The coordinating board may adopt rules that allow the
158	158	coordinating board to increase or decrease, in proportion to the
159	159	number of semester credit hours or competency units or credits in
160	160	which a student is enrolled, the amount of a grant award to a
161	161	student who is enrolled in a number of semester credit hours or
162	162	competency units or credits in excess of or below 12 semester credit
163	163	hours or an equivalent number of competency units or credits.
164	164	Sec. 56.528. GRANT NOT TO AFFECT ADMISSION. An eligible
165	165	institution may not deny admission to or enrollment in the
166	166	institution based on a person's eligibility to receive a grant
167	167	under the program or a person's receipt of a grant under the
168	168	program.
169	169	SECTION 2. Section 51.907, Education Code, is amended by
170	170	adding Subsection (b-1) to read as follows:
171	171	(b-1) This section does not apply to a student enrolled in a
172	172	competency-based baccalaureate degree program, as defined by
173	173	Section 56.521.
174	174	SECTION 3. Section 61.059, Education Code, is amended by
175	175	adding Subsection (s) to read as follows:
176	176	(s) Notwithstanding any other law, the board may not exclude
177	177	from being counted in the hours reported to the Legislative Budget
178	178	Board for formula funding contact hours or semester credit hours
179	179	for a student's enrollment in a course for which the student has
180	180	previously generated formula funding if the student is enrolled in
181	181	a competency-based baccalaureate degree program, as defined by
182	182	Section 56.521.
183	183	SECTION 4. Section 61.0595, Education Code, is amended by
184	184	adding Subsection (f-1) to read as follows:
185	185	(f-1) In the formulas established under Section 61.059, the
186	186	board shall include without consideration of Subsection (a) or (e)
187	187	of this section funding for semester credit hours earned by a
188	188	student who is enrolled in a competency-based baccalaureate degree
189	189	program, as defined by Section 56.521.
190	190	SECTION 5. Subchapter C, Chapter 61, Education Code, is
191	191	amended by adding Section 61.088 to read as follows:
192	192	Sec. 61.088. DROPPED OR REPEATED COURSES UNDER
193	193	COMPETENCY-BASED BACCALAUREATE DEGREE PROGRAM. The board by rule
194	194	shall develop standards for and limitations on dropping or
195	195	repeating courses by students enrolled in a competency-based
196	196	baccalaureate degree program, as defined by Section 56.521.
197	197	SECTION 6. Section 51.907(b-1), Education Code, as added by
198	198	this Act, applies beginning with the fall 2023 semester.
199	199	SECTION 7. (a) The Texas Higher Education Coordinating
200	200	Board shall adopt rules to administer Subchapter T, Chapter 56,
201	201	Education Code, as added by this Act, as soon as practicable after
202	202	the effective date of this Act.
203	203	(b) The Texas Higher Education Coordinating Board shall
204	204	begin allocating funds to eligible institutions under Subchapter T,
205	205	Chapter 56, Education Code, as added by this Act, for the first
206	206	academic year for which money is appropriated for that purpose,
207	207	except that the coordinating board may not allocate funds under
208	208	that subchapter for an academic year before the 2024-2025 academic
209	209	year.
210	210	SECTION 8. The changes in law made by this Act to Sections
211	211	61.059 and 61.0595, Education Code, apply beginning with funding
212	212	recommendations made under Section 61.059, Education Code, for the
213	213	state fiscal biennium beginning September 1, 2025.
214	214	SECTION 9. The Texas Higher Education Coordinating Board
215	215	shall adopt rules under Section 61.088, Education Code, as added by
216	216	this Act, as soon as practicable after this Act takes effect.
217	217	SECTION 10. This Act takes effect immediately if it
218	218	receives a vote of two-thirds of all the members elected to each
219	219	house, as provided by Section 39, Article III, Texas Constitution.
220	220	If this Act does not receive the vote necessary for immediate
221	221	effect, this Act takes effect September 1, 2023.
222	222	______________________________ ______________________________
223	223	President of the Senate Speaker of the House
224	224	I certify that H.B. No. 4005 was passed by the House on April
225	225	25, 2023, by the following vote: Yeas 116, Nays 31, 1 present, not
226	226	voting.
227	227	______________________________
228	228	Chief Clerk of the House
229	229	I certify that H.B. No. 4005 was passed by the Senate on May
230	230	16, 2023, by the following vote: Yeas 26, Nays 5.
231	231	______________________________
232	232	Secretary of the Senate
233	233	APPROVED: _____________________
234	234	Date
235	235	_____________________
236	236	Governor