HBA-SEP S.B. 1596 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1596
By: Bivins
Higher Education
4/22/2001
Engrossed



BACKGROUND AND PURPOSE 

Community and technical colleges constitute the largest sector of higher
education in Texas, accounting for an enrollment of over 430,000 students
or 45 percent of the total student enrollment.  However, community and
technical college students only received approximately 14 percent of the
total allocation of Toward EXcellence, Access, & Success (TEXAS) grant
funds for fiscal year 2000.  With 70 percent of the state's freshman and
sophomore students, and 75 percent of the state's minority freshman and
sophomore students attending community and technical colleges, it may be
important to develop an additional method to assist these students in
completing their educational goals.  Senate Bill 1596 establishes the
Toward EXcellence, Access, & Success (TEXAS) grant II program to provide
grants to enable eligible students to attend public junior colleges and
technical institutes in this state.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Higher Education Coordinating
Board in SECTION 1 (Sections 56.403 and 56.407, Education Code) and in
SECTION 2 of this bill. 

ANALYSIS

Senate Bill 1596 amends the Education Code to establish the Toward
EXcellence, Access, & Success (TEXAS) grant II program to provide grants to
enable eligible students to attend eligible public junior colleges and
technical institutes in this state (Sec. 56.402).  The bill requires the
Texas Higher Education Coordinating Board (board) to administer the TEXAS
grant II program and to adopt any rules necessary to implement the program.
The board is also required to consult with the student financial aid
officers of eligible institutions in developing the rules and to adopt
rules to provide a TEXAS grant II to an eligible student enrolled in an
eligible institution in a manner consistent with the administration of
federal student financial aid programs.  In determining who should receive
a TEXAS grant II, the board and the eligible institution are required to
give the highest priority to students who demonstrate the greatest
financial need (Sec. 56.403). 

The bill sets forth initial eligibility requirements and continued
eligibility and academic performance requirements for a TEXAS grant II
(Secs. 56.404 and 56.405).  A student receiving a TEXAS grant II is
authorized to use the money to pay any usual and customary cost of
attendance at an eligible institution incurred by the student.  The
institution is authorized to disburse all or part of the proceeds of a
TEXAS grant II to an eligible person only if the tuition and required fees
incurred by the person at the institution have been paid (Sec. 56.406).   

The amount of a TEXAS grant II for a semester or term for a person enrolled
full-time at an eligible institution is the amount determined by the board
as the average statewide amount of tuition and required fees that a
resident student enrolled full-time in an associate degree program would be
charged for that semester or term at a public junior college or public
technical institute.   

The bill authorizes the board to adopt rules that allow the board to
increase or decrease, in proportion to  the number of semester credit hours
in which a student is enrolled, the amount of a TEXAS grant II award to a
student who is enrolled in a number of semester credit hours in excess of
or below the number of semester credit hours necessary for initial or
continuing eligibility.  The bill prohibits the amount of a TEXAS grant II
from being reduced by any gift aid for which the person receiving the grant
is eligible, unless the total amount of a person's grant plus any gift aid
received exceeds the total cost of attendance at an eligible institution.
Not later than January 31 of each year, the board is required to publish
the amounts of each grant established by the board for the academic year
beginning the next fall semester.   

The total amount of grants that a student is authorized to receive for a
TEXAS grant II and a tuition equalization grant is prohibited from
exceeding an amount equal to 50 percent of the average state appropriation
in the biennium preceding the biennium in which the grant is made for a
full-time student or the equivalent at public senior colleges and
universities, as determined by the board.  An eligible institution is
prohibited from charging a person attending the institution who also
receives a TEXAS grant II an amount of tuition and required fees in excess
of the amount of the TEXAS grant II received by the person, and is
prohibited from denying admission to or enrollment in the institution based
on a person's eligibility to receive a TEXAS grant II or a person's receipt
of a TEXAS grant II.  An institution is authorized to use other available
sources of financial aid to cover any difference in the amount of a TEXAS
grant II and the actual amount of tuition and required fees (Sec. 56.407).

The bill requires the board and eligible institutions to award TEXAS grant
II scholarships beginning with the 2001 fall semester.  The bill requires
the board to adopt the initial rules for awarding a TEXAS grant II no later
than July 31, 2001 (SECTION 2). 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.