TITLE 19.EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 4. RULES APPLYING TO ALL PUBLIC INSTITUTIONS OF HIGHER EDUCATION IN TEXAS

Subchapter A. GENERAL PROVISIONS

19 TAC §4.4

The Texas Higher Education Coordinating Board proposes amendments to §4.4, concerning excused absences for religious holy days for students in public institutions of higher education. Specifically, the amendments implement a change mandated by House Bill 256 of the 78th Legislature. The amendments remove a requirement that a student must notify his or her instructor in advance of an absence for the purpose of observing a religious holy day. Students will no longer be required to notify their instructors in advance regarding such absences. HB 256 also requires that a student shall be excused from attending classes or other required activities, including examinations, during time needed for travel for the purpose of the observance of a religious holy day, and it includes a provision for the resolution of any disputes that could arise regarding the nature of an absence under this section, or the provision for a reasonable time in which to make up the work that was missed during such an absence.

Dr. Marshall A. Hill, Assistant Commissioner for Universities and Health-Related Institutions, has determined that for each year of the first five years the section is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the proposed rules.

Dr. Hill has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering these sections will be to allow students to participate in observances of religious holy days without notifying instructors in advance of their absence, and to allow students to complete within a reasonable time any work missed as a result of those absences. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposed amendments to the rule may be submitted to Dr. Marshall A. Hill, Ph.D., Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711-2788, or by e-mail to Marshall.Hill@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §51.911(e), which requires the Board to adopt rules for the administration of the tuition rebate program. The amendments also implement required changes to the program that result from House Bill 256 of the 78th Legislature.

The amendments affect Texas Education Code, §51.911 (b).

§4.4.Student Absences on Religious Holy Days.

(a) Under Texas Education Code, §51.911, all institutions of higher education shall excuse [ allow ] a student [ who is absent ] from attending classes or other required activities, including examinations, for the observance of a religious holy day , including travel for that purpose. A student whose absence is excused under this subsection may not be penalized for that absence and shall be allowed to take an examination or complete an assignment from which the student is excused [ scheduled for that day ] within a reasonable time after the absence [ if, not later than the 15th day after the first day of the semester, the student notifies the instructor of each class the student had scheduled on that date that the student would be absent for a religious holy day. ]

(b) Each institution of higher education shall develop and include in its official bulletins, catalogs, and other appropriate publications a statement regarding its attendance policies and procedures for religious holy days. [ If the institution publishes a list of important academic dates or other schedule of significant dates, it would be appropriate to include the deadline date for notification by students to faculty members as set out in this section. ]

[(c) [Notifications of planned absences must be in writing and must be delivered by the student either personally to the instructor of each class, with receipt of the notification acknowledged and dated by the instructor; or by certified mail, return receipt requested, addressed to the instructor of each class.]

(c) [ (d) ] Each institution may include in its policies and procedures provisions whereby the instructor may appropriately respond if the student fails to satisfactorily complete the assignment or examination within a reasonable time after the absence. Such provisions must be communicated to the student when the student informs [ notifies ] the instructor about [ of ] an [ a planned ] absence under this section.

(d) If a student and an instructor disagree about the nature of the absence being for the observance of a religious holy day, or if there is similar disagreement about whether the student has been given a reasonable time to complete any missed assignments or examinations, either the student or the instructor may request a ruling from the chief executive officer of the institution or his or her designee. The chief executive officer or his/her designee must take into account the legislative intent of TEC §51.911(b), and the student and instructor shall abide by the decision of the chief executive officer or his/her designee.

(e) Each institution may exclude from these policies and procedures any student absence for religious holy days which may interfere with patient care.

(f) An institution choosing to establish more lenient polices with respect to the freedom of students to observe religious holy days may do so.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304567

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter C. TESTING AND DEVELOPMENTAL EDUCATION

19 TAC §§4.51 - 4.59

(Editor's note: The text of the following sections proposed for repeal will not be published. The sections may be examined in the offices of the Texas Higher Education Coordinating Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The Texas Higher Education Coordinating Board proposes the repeal of §§4.51-4.59, concerning implementation of the Success Initiative. Specifically, the proposed repeal of §§4.51 - 4.59, concerning the Texas Academic Skills Program (TASP) are being made to conform to the provisions of Senate Bill 286 of the 78th Texas Legislature. Senate Bill 286 repealed Texas Education Code, §§52.306 and 51.3061, concerning TASP, and enacted new §52.3062, establishing the Success Initiative. The proposed new sections set out the purpose, authority, and applicable definitions for the Texas Success Initiative. New §4.54 provides proposed exemptions and/or exceptions to the requirements of these rules and §§4.55, 4.56, and 4.57 establish the requirements of assessment by approved assessment instruments with minimum passing standards. Institutions are required to advise and determine a plan for academic success for each student under new §4.58 and determine a student's readiness to perform freshman-level academic coursework under §4.59. The evaluation and reporting requirements are set out in §4.60.

Dr. Leticia Hinojosa, Assistant Commissioner for Participation and Success, has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Hinojosa has also determined that for each year of the first five years these sections are in effect, the public benefit anticipated as a result of administering the sections will be a more individualized approach to preparing students for success in college-level work and eventually, success in the workforce. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Dr. Leticia Hinojosa, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, TX 78711 or by email at Leticia.hinojosa@thecb.state.tx.us . Comments will be accepted for 30 days following publication of the proposed rules in the Texas Register .

The repeal of the rules is proposed under the Texas Education Code, §51.3062, which provides the Coordinating Board with the authority to adopt rules for the Success Initiative.

The repeal of the rules affect the Texas Education Code, §51.3062.

§4.51.Purpose.

§4.52.Authority.

§4.53.Definitions.

§4.54.Institutional Developmental Education Plans.

§4.55.Eligibility and Exemptions/Exceptions.

§4.56.Criteria for Meeting TASP Requirements.

§4.57.Developmental Education and Advisement.

§4.58.Administration.

§4.59.Reporting and Funding.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304592

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter C. TEXAS SUCCESS INITIATIVE

19 TAC §§4.51 - 4.60

The Texas Higher Education Coordinating Board proposes new §§4.51 - 4.60, concerning implementation of the Success Initiative. Specifically, the new sections implement a change mandated by House Bill 256 of the 78th Legislature. Specifically, the proposed adoption of new §§4.51 - 4.60, concerning the Texas Success Initiative, are being made to conform to the provisions of Senate Bill 286 of the 78th Texas Legislature. Senate Bill 286 repealed Texas Education Code, §§52.306 and 51.3061, concerning TASP, and enacted new §52.3062, establishing the Success Initiative. The proposed new sections set out the purpose, authority, and applicable definitions for the Texas Success Initiative. New §4.54 provides proposed exemptions and/or exceptions to the requirements of these rules and §§4.55, 4.56, and 4.57 establish the requirements of assessment by approved assessment instruments with minimum passing standards. Institutions are required to advise and determine a plan for academic success for each student under new §4.58 and determine a student's readiness to perform freshman-level academic coursework under §4.59. The evaluation and reporting requirements are set out in §4.60.

Dr. Leticia Hinojosa, Assistant Commissioner for Participation and Success, has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Hinojosa has also determined that for each year of the first five years these sections are in effect, the public benefit anticipated as a result of administering the sections will be a more individualized approach to preparing students for success in college-level work and eventually, success in the workforce. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Dr. Leticia Hinojosa, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, TX 78711 or by email at Leticia.hinojosa@thecb.state.tx.us . Comments will be accepted for 30 days following publication of the proposed rules in the Texas Register .

The new sections are proposed under the Texas Education Code, §51.3062, which provides the Coordinating Board with the authority to adopt rules for the Success Initiative.

The new sections affect the Texas Education Code, §51.3062.

§4.51.Purpose.

The purpose of this subchapter is to implement the Texas Success Initiative for Texas public institutions of higher education. It is the intent of the Texas Higher Education Coordinating Board that Texas public institutions of higher education use the flexibility and responsibility granted under these rules to improve individualized programs to ensure the success of students in higher education.

§4.52.Authority.

Under Texas Education Code, §51.307, the Board is authorized to adopt rules to implement the provisions of Texas Education Code, §51.3062. Texas Education Code, §51.403(e), authorizes the Board to establish guidelines and reporting requirements.

§4.53.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Assessment--the use of a Board-approved instrument to determine the academic skills of each entering undergraduate student and the student's readiness to enroll in freshman-level academic coursework.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Developmental Coursework--non-degree-credit coursework designed to address a student's deficiencies.

(4) Developmental Education--developmental courses, tutorials, laboratories, and other means of assistance that are included in a plan to ensure the success of a student in performing freshman-level academic coursework.

(5) Institution of higher education or institution--any public technical institute, public junior college, public senior college or university, medical or dental unit, or other agency of higher education as defined in Texas Education Code, §61.003(8).

(6) Minimum Passing Standards--The minimum scores which must be attained by a student in reading, writing, and mathematics that indicates the student's readiness to enroll in freshman-level academic coursework.

(7) Non-Degree Credit Course--A course which may not be counted toward a degree or certificate. The term includes developmental, pre-collegiate and continuing education courses.

§4.54.Exemptions/Exceptions.

(a) The following students shall be exempt from the requirements of this title:

(1) For a period of five (5) years from the date of testing, a student who is tested and performs at or above the following standards:

(A) ACT: composite score of 23 with a minimum of 19 on both the English and the mathematics tests;

(B) Scholastic Assessment Test (SAT): a combined verbal and mathematics score of 1070 with a minimum of 500 on both the verbal and the mathematics tests; or

(2) For a period of three (3) years from the date of testing, a student who is tested and performs on the Texas Assessment of Academic Skills (TAAS) with a minimum scale score of 1770 on the writing test, a Texas Learning Index (TLI) of 86 on the mathematics test and 89 on the reading test.

(3) A student who has graduated with an associate or baccalaureate degree from an institution of higher education.

(4) A student who transfers to an institution from a private or independent institution of higher education or an accredited out-of-state institution of higher education and who has satisfactorily completed college-level coursework as determined by the receiving institution.

(5) A student who has previously attended any institution and has been determined to have met readiness standards by that institution.

(6) A student who is enrolled in a certificate program of one year or less (Level-One certificates, 42 or fewer semester credit hours or the equivalent) at a public junior college, a public technical institute, or a public state college.

(7) A student who is serving on active duty as a member of the armed forces of the United States, the Texas National Guard, or as a member of a reserve component of the armed forces of the United States and has been serving for at least three years preceding enrollment.

(8) A student who on or after August 1, 1990, was honorably discharged, retired, or released from active duty as a member of the armed forces of the United States or the Texas National Guard or service as a member of a reserve component of the armed forces of the United States.

(b) An institution may exempt a non-degree-seeking or non-certificate-seeking student.

§4.55.Assessment.

(a) An institution shall assess, by an instrument approved in §4.56 of this title (relating to Assessment Instruments), the academic skills of each entering undergraduate student prior to enrollment of the student. Under exceptional circumstances, an institution may permit a student to enroll in freshman-level academic coursework without assessment but shall require the student to be assessed not later than the end of the first semester of enrollment in freshman-level academic coursework.

(b) An institution offering collegiate-level credit to students via a Multi-Institution Teaching Center (MITC) or a university system center, or to in-state students by distance learning delivery systems shall ensure that students are assessed as required by this section.

(c) An institution may not use the assessment or the results of the assessment as a condition of admission to the institution.

§4.56.Assessment Instruments.

The following assessment instruments are approved by the Board:

(1) ASSET and COMPASS offered by ACT;

(2) ACCUPLACER offered by The College Board

(3) Texas Higher Education Assessment (THEA) (formerly TASP Test) offered by National Evaluation Systems, Inc.

§4.57.Minimum Passing Standards.

(a) The following minimum passing standards shall be used by an institution to determine a student's readiness to enroll in freshman-level academic coursework:

(1) ASSET: Reading Skills - 41; Elementary Algebra - 38; Writing Skills (objective) - 40; and Written Essay - 6.

(2) COMPASS: Reading Skills - 81; Algebra - 39; Writing Skills (objective) - 59; and Written Essay - 6.

(3) ACCUPLACER: Reading Comprehension - 78; Elementary Algebra - 63; Sentence Skills - 80; and Written Essay - 6.

(4) THEA: Reading - 230; Mathematics - 230; Writing - 220.

(b) The minimum passing standard for the written essay portion of all tests is a score of 6. However, an essay with a score of 5 will meet this standard if the student meets the objective writing test standard.

(c) An institution may require higher passing standards.

§4.58.Advisement and Plan for Academic Success.

(a) For each student who fails to meet the minimum passing standards described in §4.57 of this title (relating to Minimum Passing Standards), an institution shall:

(1) Establish a program to advise the student regarding developmental education necessary to ensure the readiness of that student in performing freshman-level academic coursework.

(2) Determine a plan, working with the student, for academic success, which shall include developmental education and may include provisions for enrollment in appropriate non-developmental coursework.

(b) Each plan for academic success shall:

(1) Be designed on an individual basis to provide the best opportunity for each student to succeed in performing freshman-level academic coursework.

(2) Provide to the student a description of the appropriate developmental education considered necessary to ensure the readiness of that student to perform freshman-level academic coursework.

(3) Provide to the student an appropriate measure for determining readiness to perform freshman-level academic coursework, as described in §4.59 of this title (relating to Determination of Readiness to Perform Freshman-level Academic Coursework).

(c) Institutions shall consider all federal laws pertaining to individuals with disabilities when assessing and advising such students.

§4.59.Determination of Readiness to Perform Freshman-level Academic Coursework.

(a) An institution shall determine when a student is ready to perform freshman-level academic coursework on an individual basis according to the needs of the student.

(b) As indicators of readiness, institutions shall consider, as appropriate:

(1) Performance in developmental education.

(2) Performance in appropriate non-developmental coursework.

(3) Performance on an assessment instrument described in §4.56 of this title (relating to Assessment Instruments) or performance on an institutionally selected assessment.

(4) Other indicators of readiness, as determined by the institution.

(c) The determination shall include the requirement that a student shall retake an assessment instrument described in §4.56 of this title (relating to Assessment Instruments) if the student did not initially perform at or above the following scores:

(1) ASSET: Reading Skills - 35; Elementary Algebra - 30; and Writing Skills (objective) - 35.

(2) COMPASS: Reading Skills - 64; Algebra - 23; Writing Skills (objective) - 44.

(3) ACCUPLACER: Reading Comprehension - 61; Elementary Algebra - 42; Sentence Skills - 62.

(4) THEA: Reading - 201; Mathematics - 206; Writing - 205.

(5) An essay with a score of 5 will meet these criteria if the student meets the objective writing test standard.

(d) A student may retake an assessment instrument at any time, subject to availability, to determine the student's readiness to perform freshman-level academic coursework.

(e) An institution shall, as soon as practicable and feasible, indicate a student's readiness in reading, mathematics, and writing on the transcript of each student.

§4.60.Evaluation and Reporting.

(a) The Board shall evaluate the effectiveness of Texas Success Initiative on a statewide basis and with respect to each institution.

(b) At the end of each semester, institutions shall report to the Board the following information for undergraduate students: Social Security Number (SSN), semester credit hours (SCH), grade points earned, ethnicity, gender, date of birth, Texas Success Initiative status, initial assessment instrument, score on initial assessment, type of developmental education received for each area (reading, mathematics, writing), grade in first related non-developmental course, and the results of any subsequent assessment.

(c) On or before January 1, 2004, each institution shall submit to the Board a revised developmental education plan to reflect the Texas Success Initiative.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304590

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter D. DUAL CREDIT PARTNERSHIPS BETWEEN SECONDARY SCHOOLS AND TEXAS PUBLIC COLLEGES

19 TAC §4.85

The Texas Higher Education Coordinating Board proposes amendments to §4.85(b) and §4.85(i) of Board rules concerning the commissioners' funding agreement for dual credit courses, the waiver of all or part of tuition and fees for dual credit students by public institutions of higher education, and the Success Initiative requirements for dual credit students. Texas Education Code, §130.008(d) was amended by House Bill 415 of the 78th Texas Legislature, the requirement for the current funding agreement between the Commissioner of Education and the Commissioner of Higher Education was eliminated. Therefore, public high schools and institutions of higher education are eligible to receive funding for dual credit courses under the general rules concerning funding of high school courses and college credit courses. Texas Education Code, §54.216 was amended by Senate Bill 258, and public technical and state colleges, universities, and health-related institutions are now eligible to waive all or part of the tuition and fees for students enrolled in dual credit courses. Until passage of this legislation, only public community/junior colleges were allowed to waive these charges. Texas Education Code, §130.008 was amended by House Bill 1621 to align language in §130.008 with §54.216 as passed under Senate Bill 258. Under House Bill 1621 public community/junior colleges may waive all or part of the tuition and fees for students enrolled in dual credit courses beginning fall 2003. Under current statute, all tuition and fees may be waived but no portion of those charges could be waived. Texas Education Code, §51.306 and 51.3061 was amended by Senate Bill 286, repealing the Texas Academic Skills Program (TASP) and providing for the assessment of college-readiness under the new Success Initiative. Board rules have required students enrolling in dual credit courses to satisfy the requirements under TASP. With repeal of TASP and the enactment of the Success Initiative, students will be required to satisfy similar requirements prior to enrolling in dual credit courses.

Dr. Glenda O. Barron, Assistant Commissioner for Community and Technical Colleges has determined that for each year of the first five years the section is in effect, there will not be any fiscal implication to state or local government as a result of enforcing or administering the rule.

Dr. Barron has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the appropriate alignment of rules with legislation enacted by the 78th Texas Legislature. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposed rule may be submitted to Dr. Glenda O. Barron, Texas Higher Education Coordinating Board, 1200 East Anderson Lane, Austin, Texas 78752; Glenda.Barron@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §§29.182, 29.184, 54.216, 61.027, 61.076(j), 130.001(b)(3)-(4), 130.008, 130.090, and 135.06(d), which provide the Coordinating Board with the authority to regulate dual credit partnerships between public two-year associate degree granting institutions and public universities with secondary schools.

The amendments affect Texas Education Code §§29.182, 29.184, 54.216, 61.027, 61.076(j), 130.001(b)(3)-(4), 130.008, 130.090, and 135.06(d).

§4.85.Dual Credit Requirements.

(a) (No change.)

(b) Student Eligibility.

(1) To be eligible for enrollment in freshman-level academic coursework for dual credit, [ in a dual credit course for TASP-eligible programs (associate or baccalaureate degree or level-two certificate) ], the high school student must present a passing score on an [ the Texas Academic Skills Program (TASP) test or a Board-approved alternative ] assessment instrument approved by the Board in §4.56 of this title (relating to Assessment Instruments) in at least one area (mathematics, reading, writing) as deemed relevant by the college for the intended dual credit course in which the student shall enroll. Eligibility for students in the high school graduating class of 2005 to take dual credit courses during the 2003-2004 and 2004-2005 academic years may also be established by achieving at least the passing standard on the English/Language Arts and/or Mathematics sections (as applicable) of the tenth grade Texas Assessment of Knowledge and Skills (TAKS) test established by the State Board of Education.

(2) To be eligible for enrollment in a dual credit course included in a [ for TASP-waived ] college certificate program of one year or less [ programs ], the high school student must have passed all sections of the exit-level TAAS test. Eligibility for students in the high school graduating class of 2005 to take dual credit courses included in a [ in TASP-waived ] certificate program of one year or less [ programs ] during the 2003-2004 and 2004-2005 academic years may be established by achieving at least the passing standard on the English/Language Arts and/or Mathematics sections (as applicable) of the tenth grade Texas Assessment of Knowledge and Skills (TAKS) test established by the State Board of Education. A student who as received an exemption from taking the TAKS or TAAS test may qualify to enroll in a dual credit course by presenting a passing score on an [ the Texas Academic Skills Program (TASP) test or a Board-approved alternative ] assessment instrument approved by the Board in §4.56 of this title (relating to Assessment Instruments) in at least one area (mathematics, reading, writing) as deemed relevant by the college for the intended dual credit course in which the student shall enroll.

(3)-(6) (No change.)

(c)-(h) (No change.)

(i) Funding.

(1) The state funding for dual credit courses will be available to both public school districts and colleges based on the current funding rules of the State Board of Education and the Board [ agreement between the Commissioner of Education and the Commissioner of Higher Education ].

(2) (No change.)

(3) All [ Only a ] public colleges, universities, and health-related institutions [ community college ] may waive all or part of tuition and fees for a Texas [ public ] high school student enrolled in a course for which the student may receive dual course credit. [ Technical colleges, state colleges, and public universities must charge tuition to dual credit students following the same guidelines used for regular students. ]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304595

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Chapter 6. HEALTH EDUCATION, TRAINING, AND RESEARCH FUNDS

Subchapter C. TOBACCO LAWSUIT SETTLEMENT FUNDS

19 TAC §6.73

The Texas Higher Education Coordinating Board proposes amendments to §6.73, concerning the Permanent Fund for Nursing, Allied Health, and Other Health-Related Education Grant Program in accordance with recent legislation (House Bill 3126) and Texas Education Code, §§63.201 through 63.203. Specifically, these amendments will implement legislation that directs the Texas Higher Education Coordinating Board to give grant funds to eligible institutions with nursing programs.

Dr. Marshall A. Hill, Assistant Commissioner for Universities and Health-Related Institutions, has determined that for each year of the first five years the section is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the section as proposed.

Dr. Hill has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section will be the additional attention given to addressing the shortage of nurses. There will be no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Ms. Chris Fowler, 1200 East Anderson Lane, Austin, Texas, 78758, 512/427-6217, Chris.Fowler@thecb.state.tx.us.

The amendments are proposed under Texas Education Code, §63.202, which directs the Coordinating Board to adopt rules for the award of grants from investment returns of the Permanent Fund.

The amendments affect Texas Education Code, §§63.201 and 63.202.

§6.73.Nursing, Allied Health and Other Health-Related Education Grant Program.

(a) - (g) (No change.)

(h) This subsection pertains to the 2004-05 and 2006-07 biennia [ 2002-03 biennium ] only (rules are effective only from September 1, 2003 [ 2001 ] to August 31, 2007 [ 2003 ]).

(1) Funds available to the program for the 2004-05 and 2006-07 biennia [ 2002-03 biennium ] will be distributed as grants in proportions determined by the Commissioner through one or more [ three separate ] programs that are based on :

[ (A) a competitive, peer-reviewed process, as described in subsection (a)-(g) of this section;]

(A) [ (B) ] a competitive, peer-reviewed process for eligible institutions proposing to address the shortage of registered nurses, and nursing faculty, as described in subsections (a)-(g) of this section unless amended in subsections (h)(2) and (h)(3) of this section; or [ and ]

(B) [ (C) ] a criteria-based, funding formula for eligible institutions, as amended in subsection (h)(2) of this section [ that are seeking to increase enrollments in their nursing programs. The funding formula will give financial incentives to nursing faculty to provide clinical and classroom instruction in addition to carrying a full teaching load. In implementing a funding formula, the Board staff will consider semester credit hours, contact hours and full-time equivalent faculty positions and other data reported by or requested of eligible institutions ].

(2) In subsection (a)(4), of this section, eligible institutions, as they pertain to subsection (h)(1) [ (B) and (h) (1) (C) ] of this section, are public institutions of higher education, private or independent institutions of higher education and hospitals that offer nursing programs that prepare students for initial licensure as registered nurses or that prepare qualified faculty for such nursing programs .

(3) In subsections (a)(5), (a)(8), (a)(9), and (b)(4), of this section, the following pertain to subsection (h)(1) (A) [ (B) ] of this section:

(A) Eligible programs - Nursing initiatives that propose to address the shortage of registered nurses by developing new or existing activities and projects that will promote innovation in the education, [ the ] recruitment and retention of nursing students and qualified faculty.

(B) Minimum award - Minimum award is $10,000 per award in any fiscal year.

(C) Maximum award - Maximum award is $150,000 per award in any fiscal year.

(D) [ (C) ] Peer review award criteria and weights may be adjusted to best fulfill the purpose of the grant program.

[ (4) In subsection (a)(8) of this section, as it pertains to subsection (h) (1) (A) of this section, the minimum award will be $10,000.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304566

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Chapter 12. CAREER SCHOOLS AND COLLEGES

Subchapter A. PURPOSE, AUTHORITY, AND DEFINITIONS

19 TAC §§12.1 - 12.3

The Texas Higher Education Coordinating Board proposes amendments to §§12.1-12.3, concerning the Success Initiative assessment requirements and the replacement of references to proprietary schools or institutions with references to career schools or colleges. Specifically, the proposed amendments replace the term "proprietary school" with the term "career schools or colleges", to correspond with the change in terms mandated by amendments to Texas Education Code, Chapter 132 in Senate Bill 1343 of the 78th Texas Legislature. The amendment to §12.3 deletes the provision regarding the Texas Academic Skills Program (TASP), and replaces that provision with the requirements of the Success Initiative. Senate Bill 286 of the 78th Texas Legislature repealed Texas Education Code, §§51.306 and 51.3061 regarding TASP, and added new Texas Education Code, §51.3062, regarding the Success Initiative. The amendment to §12.3 requires the career schools or colleges to assess, advise, and develop a plan for each student to assure college-readiness.

Dr. Glenda Barron, Assistant Commissioner for Community and Technical Colleges has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implication to state or local government as a result of enforcing or administering the rules.

Dr. Barron has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the section will be the appropriate alignment of rules with legislation enacted by the 78th Texas Legislature. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Dr. Glenda O. Barron, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711; Glenda.Barron@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, Chapter 132, §132.063, and Chapter 61, Subchapter G, which provide the Coordinating Board with the authority to adopt policies, enact regulations, and establish rules to enforce minimum standards for the approval and on-going assessment of programs of study leading to associate degrees offered by career schools and colleges.

The amendments affect Texas Education Code, Chapter 132.

§12.1.Purpose.

The purpose of this chapter is to assure the quality and integrity of associate degree programs offered by career schools and colleges [ proprietary institutions ] by establishing minimum standards and operating requirements, encouraging continuous improvement of degree programs, and promoting institutional accountability.

§12.2.Authority.

The Texas Education Code, Chapter 132, §132.063, and Chapter 61, Subchapter G, authorize the Board to adopt policies, enact regulations, and establish rules to enforce minimum standards for the approval and on-going assessment of programs of study leading to associate degrees offered by career schools and colleges [ proprietary institutions ].

§12.3.Definitions.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Agent--A career schools and colleges [ proprietary institutions ] owner, partner, stockholder, officer, recruiter, administrator, faculty member, financial aid counselor, academic counselor or other person who represents the institution in an official capacity. Persons employed in clerical, custodial, or similar positions, or shareholders with no direct relationship to the institution, are not considered agents of an institution.

(2)-(3) (No change)

(4) [ (19) ] Career school or college [ Proprietary institution ]--Any business enterprise operated for a profit, or on a nonprofit basis, that maintains a place of business in the State of Texas or solicits business within the State of Texas, and that is not specifically exempted by this chapter, and:

(A) That offers or maintains a course or courses of instruction or study; or

(B) At which place of business such a course or courses of instruction or study is available through classroom instruction or by correspondence, or both, to a person for the purpose of training or preparing the person for a field of endeavor in a business, trade, technical, or industrial occupation, or for avocational or personal improvement.

(5) [ (4) ] Certificate of Authority--The document provided to a career school or college [ proprietary institution ] to certify that it has met the standards set forth in the rules of the Board and that, pursuant to the Texas Education Code, Chapter 132 and Chapter 61, Subchapter G, it is authorized to conduct courses and grant the degrees specified on the certificate.

(6) [ (5) ] Change of ownership or control--Any change in ownership or control of a career school or college [ proprietary institution ] or an agreement to transfer control of such institution. The ownership or control of a career school or college [ proprietary institution ] is considered to have changed:

(A) In the case of ownership by an individual, when more than 50 percent of the institution has been sold or transferred;

(B) In the case of ownership by a partnership or a corporation, when more than 50 percent of the institution or of the owning partnership or corporation has been sold or transferred;

(C) When the board of directors, officers, shareholders, or similar governing body has been changed to such an extent as to significantly alter the management and control of the institution; or

(D) A change of ownership or control does not include a transfer which occurs as a result of the retirement or death of the owner if transfer is to a member of the owner's family who has been directly and constantly involved in the management of the institution for a minimum of two years preceding the transfer. For the purposes of this section, a member of the owner's family is a parent, sibling, spouse or child; spouse's parent or sibling; or sibling's or child's spouse.

(7) [ (6) ] Cited--Any reference to an institution in a negative finding or action by an accreditor.

(8) [ (7) ] Classification of Instructional Programs (CIP) Code--The 4- or 6-digit code assigned to an approved associate degree program in accordance with the CIP manual published by the U. S. Department of Education, National Center for Education Statistics. CIP codes define the authorized teaching field of the specified degree program, based upon the occupation(s) for which the program is designed to prepare its graduates.

(9) [ (8) ] Commissioner or Commissioner of Higher Education--The chief executive officer of the Texas Higher Education Coordinating Board.

(10) [ (9) ] Concurrent instruction--Students enrolled in different classes, courses, and/or subjects being taught, monitored, or supervised simultaneously by a single faculty member.

(11) [ (10) ] Contract instruction--Specifically targeted instruction designed by a career school or college [ proprietary institution ] and a contracting entity.

(12) [ (11) ] Degree--Any title or designation, mark, abbreviation, appellation, or series of letters or words, including associate, bachelor's, master's, doctor's and their equivalents, which signify, purport to signify, or are generally taken to signify satisfactory completion of the requirements of all or part of a program of study which is generally regarded and accepted as an academic/occupational degree-level program among Texas postsecondary institutions.

(13) [ (12) ] Exempt institution--A degree-granting institution exempt from the Texas Education Code, Chapter 132.

(14) [ (13) ] Guidelines for Instructional Programs in Workforce Education--Board-approved publication of policies and guidelines for the effective design, development, operation, and evaluation of workforce education programs, in two-year associate degree-granting institutions, including the elements of applied associate degree programs in career schools and colleges [ proprietary institutions ].

(15) [ (14) ] Institution--A career school or college [ proprietary institution ].

(16) [ (15) ] Owner--The owner of a career school or college [ proprietary institution ] means:

(A) in the case of an institution owned by an individual, that individual;

(B) in the case of an institution owned by a partnership, all full, silent, and limited partners;

(C) in the case of an institution owned by a corporation, the corporation, its directors, officers, and each shareholder owning shares of issued and outstanding stock aggregating at least 10 percent of the total of the issued and outstanding shares;

(D) in the case of an institution in which the ownership interest is held in trust, the beneficiary of that trust; or

(E) in the case of an institution owned by another legal entity, a person who owns at least 10 percent ownership interest in that entity.

(17) [ (16) ] Private postsecondary institution--An institution of higher education that:

(A) Is not a public junior college, public senior college, or university, medical or dental unit or other agency as defined in the Texas Education Code, §61.003;

(B) Is incorporated under the laws of this state, or maintains a place of business in this state, or has a representative present in this state, or solicits business in this state; and

(C) Furnishes or offers to furnish courses of instruction in person, by electronic media, or by correspondence leading to a degree or provides or offers to provide credits alleged to be applicable to a degree.

(18) [ (17) ] Program approval--The process whereby a career school or college [ proprietary institution ] requests approval from the Board to implement a technical or vocational program of study leading to an applied associate degree.

(19) [ (18) ] Program or program of study--Any course or grouping of courses which entitles a student to an applied associate degree or to credits which are applicable to an applied associate degree.

(20) Prospective student--An individual who expresses interest in a program of study and who is provided with written information about the institution or any of the institutions' programs.

(21) Texas Success Initiative--A program for each career school or college to:

(A) Assess the academic skills of each entering student to determine the student's readiness to enroll in freshman-level academic coursework using test instruments approved by the Coordinating Board;

(B) Advise students regarding coursework and other means by which to develop academic skills required for successful completion of college-level work; and

(C) Provide a written plan to work with the student to become ready to perform freshman-level coursework.

(22) [ (21) ] Target market area--The local, regional, statewide, and/or national area from which the career school’s or college’s [ proprietary institution’s ] students are drawn and in which employment opportunities have been identified for graduates of that institution's associate degree programs.

(23) [ (22) ] Teach-out agreement--A formal arrangement between a closed career school or college [ proprietary institution ] and another institution authorized by the Board to grant the associate degree, which provides for student transfer, completion of degree requirements, and awarding degrees to students transferred from the closed career school or college [ proprietary institution ].

(24) [ (23) ] Teach-out institution--An institution authorized by the Board to grant the associate degree and has formally accepted the transfer of students from a closed career school or college [ proprietary institution ].

[ (24) Texas Academic Skills Program (TASP) Test--The test required under the Texas Education Code, §51.306, that is uniformly administered statewide on days prescribed by the Board and is scored by the testing contractor. The test measures college readiness in reading, writing, and mathematics and includes a written essay and is administered under secure conditions and for which each student is provided diagnostic information regarding test performance.]

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304568

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter B. GENERAL PROVISIONS

19 TAC §§12.22 - 12.33, 12.35 - 12.39

The Texas Higher Education Coordinating Board proposes amendments to §§12.22-12.33, and §§12.35-12.39, concerning the Success Initiative assessment requirements and the replacement of references to proprietary schools or institutions with references to career schools or colleges. Specifically, the proposed amendments replace the term "proprietary school" with the term "career schools or colleges", to correspond with the change in terms mandated by amendments to Texas Education Code, Chapter 132 in Senate Bill 1343 of the 78th Texas Legislature. An amendment to §12.38 is proposed only to correct a cross reference to Board rules that were reorganized and renumbered. §§12.24, 12.28, and 12.30 are also amended to delete provisions regarding the Texas Academic Skills Program (TASP) and replace those provisions with the requirements of the Success Initiative. Senate Bill 286 of the 78th Texas Legislature repealed Texas Education Code, §§51.306 and 51.3061 regarding TASP, and added new Texas Education Code, §51.3062, regarding the Success Initiative. The amendments to these rules require the career schools or colleges to assess, advise, and develop a plan for each student to assure college-readiness.

Dr. Glenda Barron, Assistant Commissioner for Community and Technical Colleges has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implication to state or local government as a result of enforcing or administering the rules.

Dr. Barron has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the section will be the appropriate alignment of rules with legislation enacted by the 78th Texas Legislature. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Dr. Glenda O. Barron, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711; Glenda.Barron@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, Chapter 132, §132.063, and Chapter 61, Subchapter G, which provide the Coordinating Board with the authority to adopt policies, enact regulations, and establish rules to enforce minimum standards for the approval and on-going assessment of programs of study leading to associate degrees offered by career schools and colleges.

The amendments affect Texas Education Code, Chapter 132.

§12.22.Fees and Expenses.

(a) The Board is authorized to establish and collect fees from institutions to offset the costs of associate degree program coordination and administration for career schools and colleges [ proprietary institutions ]. The Commissioner is authorized by the Board to set these fees in an amount not to exceed the actual cost incurred for the service or services provided by the staff. The current fee schedule and the nature of the fees are outlined in the Guidelines for Instructional Programs in Workforce Education.

(b)-(d) (No change.)

§12.23.Application for a Certificate of Authority.

(a) Prior to submission of an initial request for approval to offer an associate degree program, a career school or college [ proprietary institution ] shall submit to the Board an Application for a Certificate of Authority.

(b) A career school or college [ proprietary institution ] may submit an Application for a Certificate of Authority to the Board if it:

(1)-(2) (No change.)

(c) (No change.)

§12.24.Standards for Associate Degree-Granting Career Schools and Colleges [ Proprietary Institutions ].

The decision to grant a Certificate of Authority to a career school or college [ proprietary institution ] shall be based upon its compliance with the following 16 standards.

(1)-(6) (No change.)

(7) Administrative Resources. The director of a career school or college [ proprietary institution ] having a Certificate of Authority shall have daily access to electronic communication, including e-mail and a connection to the Internet/World Wide Web. All institutions shall be able to receive time-sensitive information about Board rules and policies via electronic media.

(8)-(9) (No change.)

(10) Catalog. The information described by subparagraphs (A) through (Q) of this paragraph shall be provided to prospective students prior to enrollment. The institution shall provide students and other interested persons with a catalog or brochure. If any of the information is provided to students in the form of a supplement or addendum to a printed and bound catalog, the institution shall retain documentation on file to verify that every enrolled student received a copy of the addendum or supplement along with the catalog. The institution shall, on an annual basis, furnish the Board with a copy of its most current catalog and a current roster of all faculty members including names, addresses, teaching assignments, and highest degree earned. The institution shall provide students and other interested persons with a catalog or brochure containing, at minimum, the following information:

(A)-(O) (No change.)

(P) a statement of Texas Success Initiative [ TASP ] requirements; and

(Q) (No change.)

(11)-(16) (No change.)

§12.25.Commissioner Action on an Application for a Certificate of Authority.

(a) The Commissioner or his/her designee shall approve or disapprove the Application for a Certificate of Authority. Approval of the Application grants the career school or college [ proprietary institution ] the authority to grant associate degrees. However, separate program approval shall be required for all associate degree programs in accordance with this chapter.

(b) (No change.)

§12.26.Change of Ownership or Control.

(a) In the event of a change in ownership or control of a career school or college [ proprietary institution ], the Certificate of Authority is automatically withdrawn.

(b) Authorization to retain the Certificate of Authority during the term of a change of ownership or control may be granted by the Commissioner provided that Board staff are notified of the impending transfer and that the following conditions are met:

(1) presentation of acceptable evidence that the new owner is complying with all Texas Workforce Commission requirements regarding the purchase or transfer of ownership of a career school or college [ proprietary institution ];

(2)-(3) (No change.)

(c)-(d) (No change.)

(e) If the ownership or control of a career school or college [ proprietary institution ] is transferred within, among, or between different subsidiaries, branches, divisions, or other components of a corporation and if said transfer in no way diminishes the career school’s or college’s [ proprietary institution’s ] administrative capability or educational program quality, the Commissioner may permit the school to retain its Certificate of Authority during the transfer period. In such cases, the career school or college [ proprietary institution ] shall fully comply with all provisions outlined in subsection (b) of this section.

§12.27.Closure of a Career School or College [ Proprietary Institution ].

(a) The governing board, owner, or chief executive officer of a career school or college [ proprietary institution ] which plans to cease operation shall provide the Board with written notification of intent to close at least 90 days prior to the planned closing date.

(b) If a career school or college [ proprietary institution ] closes or intends to close before all currently enrolled students have completed all requirements for graduation, the institution shall assure the continuity of students’ education by entering into a teach-out agreement with another career school or college [ proprietary institution ] authorized by the Board holding a Certificate of Authority or with a public community or technical college. The agreement shall be in writing and shall contain provisions for student transfer and specify the conditions for completion of degree requirements at the teach-out institution. The agreement shall also contain provisions for awarding degrees.

(c) The Certificate of Authority for a career school or college [ proprietary institution ] is automatically withdrawn when the institution closes. At his/her discretion, the Commissioner may transfer the Certificate of Authority to award a degree(s) through a formal agreement to an approved entity as outlined under subsection (b) on a temporary basis provided the curriculum and delivery are appropriate to accommodate the remaining students. No new students shall be allowed to enter the transferred degree program unless the new entity seeks and receives approval for the program(s) from the Coordinating Board.

§12.28.Institutional Evaluation.

(a) (No change.)

(b) The evaluation criteria shall include the following: mission, labor market need, curriculum, enrollment, graduates, student placement, follow-up results, ability to finance each program of study, facilities and equipment, instructional practices, student services, public and private linkages, [ and ] qualifications of faculty and administrative personnel , and success of its students and the effectiveness of the Texas Success Initiative .

§12.29.Accreditation.

(a) Career schools and colleges [ proprietary institutions ] having a Certificate of Authority and authorized to grant an associate degree shall make available, upon request by the Board, all accrediting agency reports and any findings and institutional responses to such reports and findings.

(b) If cited by an accreditor, a career school or college [ proprietary institution ] authorized to grant the associate degree shall, within 30 days of receipt of the accrediting agency’s final report, provide the Board with a copy of the citation, the accreditor’s final report, and a complete report to all subsequent actions by both the accreditor and the institution.

(c) A career school or college [ proprietary institution ] shall operate all associate degree programs in compliance with the standards of its institutional and/or program-level accreditation or with membership in a trade or professional association.

§12.30. Texas Success Initiative [ Texas Academic Skills Program (TASP) ].

Each degree-granting career school or college authorized by the Board to grant associate of applied science or associate of applied arts degrees shall assess, by instrument approved in §4.56 of this title (relating to Assessment Instruments), the academic skills of each entering student and otherwise comply with §§4.51 - 4.60 of this title (relating to the Texas Success Initiative). [ Any individual who enrolls in an associate degree program at a proprietary institution on or after September 1, 1997, shall pass all sections of a test taken for Texas Academic Skills Program (TASP) Test purposes, or otherwise meet TASP requirements as outlined under Chapter 5, Subchapter P, §5.314(a)(3)-(12), §5.34(b)(1)-(11), and §5.315 of this title (relating to Testing and Developmental Education) before the degree may be awarded. ] Career schools and colleges authorized to award an [ Individuals enrolled in an authorized ] Associate of Occupational Studies degree [ program ] are exempt from this requirement.

§12.31.Transfer of Credit.

A career school or college [ proprietary institution ] holding a Certificate of Authority to grant the associate degree shall publish in a prominent place in the institution’s catalog complete and clearly stated information about the transferability of credit to other postsecondary institutions including community and technical colleges and four-year institutions.

§12.32.Graduation and Job Placement Rates.

A career school or college [ proprietary institution ] authorized to grant the associate degree shall provide to each prospective student, newly-enrolled student, and returning student, complete, clearly presented information indicating the institution’s current graduation rate by program and job placement rate by program.

§12.33.The Associate of Occupational Studies (AOS) Degree.

Granting of the AOS degree shall only occur according to the following terms:

(1) (No change.)

(2) The State of Texas has four career schools or colleges [ proprietary Institutions ] awarding the AOS degree: MTI College of Business and Technology (known as Microcomputer Technology Institute when the policy was adopted), Universal Technical Institute, Southwest School of Electronics, and Western Technical Institute. The AOS degree shall be awarded in only the following fields: automotive mechanics, diesel mechanics, refrigeration, electronics, and business. Each of the four Institutions may continue to award the AOS degree for those fields listed above and shall be restricted to those fields.

(3) No new AOS degree programs in other fields from these four career schools or colleges [ proprietary institutions ] shall be considered by the Board.

(4) No new AOS degree programs from any other career schools or colleges [ proprietary institutions ] shall be considered by the Board.

(5) A career school or college [ proprietary institution ] authorized to grant the AOS degree shall not represent such degree by using the terms "associate" or "associates" without including the words "occupational studies." An institution authorized to grant the AOS degree shall not represent such degree as being the equivalent of the AAS or AAA degrees.

§12.35.Credit for Prior Learning.

(a) If a career school or college [ proprietary institution ] awards credit for prior learning obtained outside a formal collegiate setting, the institution shall establish and adhere to a systematic method for evaluating that prior learning, equating it with course content appropriate to the institution’s authorized degree program(s).

(b) (No change.)

§12.36.Complaints.

(a) The Board may investigate a written complaint about a career school or college [ proprietary institution ].

(b) (No change.)

(c) If the allegations in the complaint, if found to be true, constitute a violation of Board rules, standards, and/or guidelines, the Board shall, within 10 days of receipt of the complaint:

(1)-(2) (No change.)

(3) provide the Career Schools and Colleges [ Proprietary Institutions ] section at the Texas Workforce Commission with a copy of the complaint and copies of all relevant correspondence; and/or

(4) (No change.)

(d) Upon receipt of written notification from the Board under subsection (c) of this section, a career school or college [ proprietary institution ] shall, within 15 days, provide the Board with a written response and any necessary supporting documentation. The response shall bear the original signature of the institution's chief executive officer or his/her designee.

(e)-(g) (No change.)

§12.37.Legal Proceedings.

(a) A career school or college [ proprietary institution ] with a Certificate of Authority shall notify the Board if it becomes a defendant in any administrative, civil, or criminal legal proceeding.

(b)-(d) (No change.)

§12.38.Exemption from the Texas Education Code, Chapter 132.

(a) A career school or college [ proprietary institution ] that requests and is granted an exemption by the Texas Workforce Commission from the Texas Education Code, Chapter 132, shall not operate under the provisions of this chapter. Upon becoming exempt, a degree-granting career school or college [ proprietary institution ] shall immediately:

(1) apply for a Certificate of Authority to operate as a private postsecondary educational institution according to the provisions of Chapter 7 [ 5, Subchapter K ] of this title (relating to Private and Out of State Public Postsecondary [ Degree-Granting ] Institutions Operating in Texas); or

(2) (No change.)

(b) If an exempt institution relinquishes its exempt status and becomes licensed by the State of Texas to operate as a career school or college [ proprietary institution ], the institution shall apply for a Certificate of Authority as outlined under §12.23 of this title (relating to Application for a Certificate of Authority).

§12.39.Withdrawal of a Certificate of Authority.

(a) A Certificate of Authority may be withdrawn by the Commissioner if an agent of a career school or college [ proprietary institution ] with an approved associate degree program:

(1)-(3) (No change.)

(4) is found to have engaged in any deceptive practice, misrepresentation of fact, and/or fraud relating to the operation of the career school or college [ proprietary institution ] or in dealing with students or the public;

(5) is found to have engaged in any activity, conduct, and/or behavior relating to the operation of the career school or college [ proprietary institution ] or in dealing with students which is found by a court of law to be illegal and/or improper;

(6) intentionally inhibits, obstructs, or interferes with, either directly or indirectly, the official duties and/or activities of a member of the Board staff and/or a person who has been appointed to represent the Board for the purpose of conducting an on-site inspection of a career school or college [ proprietary institution ] and/or inquiring into a complaint against that institution; or

(7) intentionally harasses, causes to be harassed, or permits harassment of a member of the Board staff and/or a person who has been appointed to represent the Board while such individual(s) is/are on any property under the control of the career school or college [ proprietary institution ] and is/are engaged in official duties.

(b) (No change.)

(c) A Certificate of Authority is automatically withdrawn if after receiving 60 days advance notification of the annual fee amount and the date upon which the fee is due, a career school or college [ proprietary institution ] fails to remit the annual fee by the due date.

(d)-(e) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304569

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter C. ASSOCIATE DEGREE PROGRAMS

19 TAC §§12.41 - 12.44

The Texas Higher Education Coordinating Board proposes amendments to §§12.41-12.44, concerning the replacement of references to proprietary schools or institutions with references to career schools or colleges. Specifically, the proposed amendments replace the term "proprietary school" with the term "career schools or colleges", to correspond with the change in terms mandated by amendments to Texas Education Code, Chapter 132 in Senate Bill 1343 of the 78th Texas Legislature.

Dr. Glenda Barron, Assistant Commissioner for Community and Technical Colleges has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implication to state or local government as a result of enforcing or administering the rules.

Dr. Barron has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the section will be the appropriate alignment of rules with legislation enacted by the 78th Texas Legislature. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Dr. Glenda O. Barron, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711; Glenda.Barron@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, Chapter 132, §132.063, and Chapter 61, Subchapter G, which provide the Coordinating Board with the authority to adopt policies, enact regulations, and establish rules to enforce minimum standards for the approval and on-going assessment of programs of study leading to associate degrees offered by career schools and colleges.

The amendments affect Texas Education Code, Chapter 132.

§12.41.New Program Application.

In accordance with the Guidelines for Instructional Programs in Workforce Education, each career school or college [ proprietary institution ] wishing to offer a new associate degree program shall complete the following items and submit them to the Board's Community and Technical Colleges Division:

(1) (No change.)

(2) Application for Approval of a New Workforce Program (for Career Schools and Colleges [ Proprietary Institutions ]). The Application shall be approved by the chief executive officer and, if applicable, the governing board of the career school or college [ proprietary institution ]. The Application shall be received by the Board staff no less than three calendar months prior to the intended implementation date or approval deadline for external accreditation, whichever occurs first.

(3) Statement of Assurances (for career schools and colleges [ Proprietary Institutions ]). The Statement shall be approved by the chief executive officer and, if applicable, the governing board of the career school or college [ proprietary institution ], and submitted with the Application for Approval of a New Workforce Program. The following criteria are included in the Statement:

(A)-(L) (No change.)

(4) (No change.)

§12.42.New Program Approval.

(a) The Board staff shall review the Application and accompanying documentation for satisfactory fulfillment of the new program requirements and procedures as outlined in the Guidelines for Instructional Programs in Workforce Education. The staff shall confer with the career school or college [ proprietary institution ] when additional information or clarification is needed.

(b)-(d) (No change.)

(e) A career school or college [ proprietary institution ] offering an associate degree program at multiple sites shall receive separate approval of each program of study for each site.

§12.43.Program Revision and Closure.

(a) Each career school or college [ proprietary institution ] requesting a program revision shall submit a completed Application for Program Revision and comply with the Guidelines for Instructional Programs in Workforce Education.

(b) A career school or college [ proprietary institution ] may close a program voluntarily in accordance with evaluation procedures provided in the Guidelines for Instructional Programs in Workforce Education.

(c) (No change.)

§12.44.Contract Instruction.

Career schools and colleges [ Proprietary institutions ] may contract for specific instruction. All contract instruction shall have education as its primary purpose. In addition,

(1) (No change.)

(2) courses offered under a contractual agreement shall remain the responsibility of the contracting career school or college [ proprietary institution ] and shall be of the same quality as other approved courses.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304570

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Chapter 13. FINANCIAL PLANNING

Subchapter E. TUITION REBATES FOR CERTAIN UNDERGRADUATES

19 TAC §13.82

The Texas Higher Education Coordinating Board proposes amendments to §13.82 concerning the $1000 tuition rebate for certain undergraduates. Specifically, the amendments implement a change mandated by House Bill 1890 of the 78th Legislature. The amendments exclude up to nine hours of credit earned exclusively by examination from the total of hours attempted that is used to determine eligibility for the rebate.

Dr. Marshall A. Hill, Assistant Commissioner for Universities and Health-Related Institutions, has determined that for each year of the first five years the section is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules. There will be a small additional cost to general academic universities that will have to be paid from local funds.

Dr. Hill has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering these sections will be to encourage students to complete their undergraduate education within a few courses outside of their degree plans. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposed amendments to the rule may be submitted to Dr. Marshall A. Hill, Ph.D., Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711-2788, or by e-mail to Marshall.Hill@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §54.0065(i), which requires the Board to adopt rules for the administration of the tuition rebate program. The amendment also implements required changes to the program that result from House Bill 1890 of the 78th Legislature.

The amendments affect Texas Education Code, §54.0065.

§13.82.Eligible Students.

To be eligible for rebates under this program, students must meet all of the following conditions:

(1)-(3) (No change.)

(4) They must have attempted no more than three hours in excess of the minimum number of semester credit hours required to complete the degree under the catalog under which they were graduated. Hours attempted include transfer credits, course credit earned exclusively by examination, (except that, for the purposes of this program, only the number of semester credit hours earned exclusively by examination in excess of nine semester credit hours is treated as hours attempted), courses [ that are ] dropped after the official census date, for-credit developmental courses, optional internship and cooperative education courses, and repeated courses. Courses dropped for reasons that are determined by the institution to be totally beyond the control of the student shall not be counted. For students concurrently earning a baccalaureate degree and a Texas teaching certificate, required teacher education courses shall not be counted to the extent that they are over and above the free electives allowed in the baccalaureate degree program.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 28, 2003.

TRD-200304565

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Chapter 21. STUDENT SERVICES

Subchapter B. DETERMINING RESIDENCE STATUS

19 TAC §21.26

The Texas Higher Education Coordinating Board proposes amendments to §21.26 of Board rules, concerning tuition waivers for members of the U.S. Armed Forces, Army National Guard, Air National Guard, and Commissioned Officers of the Public Health Service. Specifically, amendments to §21.26 implement statutory changes to §54.058 of the Texas Education Code, passed in H.B. 261 by the 78th Texas Legislature, Regular Session, and provide that either the spouse or the child of a member of the Armed Forces may be considered a resident for tuition purposes in certain instances involving the relocation or death of the member of the Armed Forces. The amendments will allow the member of the Armed Forces or the member’s child or spouse to continue paying the resident tuition rate even if the person is no longer a member of the Armed Forces or a child or spouse of the member of the Armed Forces and will allow the resident tuition rate to be paid if a person is continuously enrolled in the same degree or certificate program. A person is not required to enroll in a summer term to remain continuously enrolled.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the new sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of administering the sections will be to allow members of the Armed Forces and their families to more easily obtain a higher education in Texas. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P. O. Box 12788, Austin, Texas 78711, 512-427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §54.053, which states that the governing board of each institution is subject to the residency rules and interpretations issued by the Coordinating Board, and §54.058.

The amendments affect the Texas Education Code, Chapter 54, §54.058.

§21.26.Exceptions.

(a) (no change)

(b) Waivers that Allow Nonresidents to Register While Paying the Resident Tuition Rate:

(1)- (10) (No change.)

(11) Members of the U.S. Armed Forces, Army National Guard, Air National Guard, and Commissioned Officers of the Public Health Service.

(A) (No change.)

(B) After [ First ] Assignment in [ after ] Texas. The spouses and /or dependent children of nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, or Commissioned Officers of the Public Health Service are entitled to pay the resident tuition rate as long as the spouse or child [ during the members’ first assignment after duty in Texas. To qualify, the spouse and children must ] resides [ reside ] continuously in Texas.

(C) Out-of-State Military. The spouse and /or dependents of nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, or Commissioned Officers of the Public Health Service stationed outside of Texas are entitled to immediately start paying the resident tuition rate in Texas if the spouse and/or child moves [ they move ] to this state, and files [ file ] a statement of intent to establish residence in Texas [ become permanent residents of Texas ] with the public institution of higher education they attend.

(D) Survivors. The spouse and /or dependents of nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, or Commissioned Officers of the Public Health Service who die while in service are entitled to pay the resident tuition rate if the spouse and/or child moves [ they move ] to Texas within 60 days of the date of death. To qualify, the students shall submit satisfactory evidence to the institution, establishing the date of death and current residence in Texas.

(E)- (G) (No change.)

(H) Previous Recipients of Military Waivers. A member of the Armed Forces of the United States or the child or spouse of a member of the Armed Forces of the United States who is entitled to pay tuition and fees at the rate provided for Texas residents under another provision of this section while enrolled in a degree or certificate program is entitled to pay tuition and fees at the rate pay tuition and fees at the rate provided for Texas residents in any subsequent term or semester while the person is continuously enrolled in the same degree or certificate program. For purposes of this subsection, a person is not required to enroll in a summer term to remain continuously enrolled in a degree or certificate program. The person's eligibility to pay tuition and fees at the rate provided for Texas residents under this subsection does not terminate because the person is no longer a member of the Armed Forces of the United States or the child or spouse of a member of the Armed Forces of the United States.

(I) [ (H) ] ROTC Students. A nonresident student who is a member of an ROTC unit must pay nonresident tuition until such time he or she signs a contract that cannot be terminated by the student and that obligates the student to serve a period of active duty in the U.S. Armed Forces. Once the student has signed such a contract, he or she has the same rights for qualifying to pay the resident rate as has a member of the U.S. Armed Forces.

(J) [ (I) ] NATO Forces. Foreign individuals stationed in Texas in keeping with the agreement between the parties to the North Atlantic Treaty regarding status of forces, their spouses and dependent children, are entitled to pay the same tuition rate as residents of Texas.

(K) [ (J) ] Radiological Science Students at Midwestern State University. Members of the U.S. Armed Forces stationed outside the State of Texas who are enrolled in a bachelor of science or master of science degree program in radiological sciences at Midwestern State University by instructional telecommunication will be entitled to pay tuition and other fees or charges provided for Texas residents if they began the program of study while stationed at a military base in Texas.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304584

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter C. HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM

19 TAC §21.53, §21.55

The Texas Higher Education Coordinating Board proposes amendments to §21.53 and §21.55, concerning a change in the definitions and the eligibility of students for a Hinson-Hazlewood College Student Loan. Specifically, the amendment to §21.53 implements the statutory change to §132.001 of the Texas Education Code, passed in S.B. 1343 by the 78th Texas Legislature, Regular Session, and changes the definition of an educational institution that is not public or private nonprofit from "proprietary institution of higher education" to "career college." The amendment to §21.55 implements new §52.41 of the Texas Education Code, passed in S. B. 286 of the 78th Texas Legislature, Regular Session, and restricts the issuance of loans under the Federal Stafford Student Loan Program to borrowers who have been or will be issued a student loan under any other also loan program administered by the Board.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of administering the sections will be to make our definitions reflect recent changes to state statutes, and to allocate loan funds between programs in a manner that is most beneficial to the state. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P.O. Box 12788, Austin, Texas 78711, 512-427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under §61.027 of the Texas Education Code, which provides the Coordinating Board with general rule-making authority; under §52.01 of the Texas Education Code, which provides the Board with the authority to administer the student loan program; §132.001 of the Texas Education Code; and new §52.41 of the Texas Education Code.

The amendments affect the Texas Education Code, §132.001, and §§52.31 - 52.41.

§21.53.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1)-(16) (No change.)

(17) Career college [ Proprietary Institution of Higher Education ]--An educational institution that is not a public or private nonprofit educational institution and is approved by the U.S. Secretary of Education under the Higher Education Act of 1965, as amended, and the regulations found in 34 C.F.R. §600.5.

(18)-(19) (No change.)

§21.55.Eligibility of Students.

The Commissioner may authorize, or cause to be authorized, Hinson-Hazlewood College Student Loans to students at any eligible institution which certifies that the student meets program qualifications, if the student:

(1)-(8) (No change.)

(9) for FSLP, if attending a career college [ Proprietary Institution of Higher Education ], is unable to obtain an FSL through a commercial lender and the Proprietary Institution of Higher Education that the student attends:

(A)-(G) (No change.)

(10) for FSLP, has been issued or will be issued a student loan under any loan program administered by the Board.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304585

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter E. TEXAS B-ON-TIME LOAN PROGRAM

19 TAC §§21.121 - 21.133

The Texas Higher Education Coordinating Board proposes new §§21.121-21.133, regarding the Texas B-On-Time Student Loan Program. Specifically, the new sections implement §§56.451-56.464 of the Texas Education Code, passed in S.B. 4 by the 78th Texas Legislature, Regular Session, define eligible institutions, and provide eligibility requirements for students receiving initial loans, as well as conditions whereby a student may remain eligible to receive a loan. The new sections provide for conditions whereby students who fail to meet eligibility requirements may later restore their eligibility, and provide conditions for making disbursements to students and for waiving the course load requirement. The new sections make provisions for loan amounts, the forgiveness of loans, loan interest, the repayment of loans, for discharging loans in the event of death or total disability of the borrower, and for methods of enforcing the collection of payments.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the new sections are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost for administering the program and for making loans will be approximately $23 million in Fiscal Year 2004 and $25 million in Fiscal Year 2005.

Ms. Hollis has also determined that for each year of the first five years the new sections are in effect, the public benefit anticipated as a result of administering the sections will be to improve and increase access to higher education in the state of Texas. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P. O. Box 12788, Austin, Texas 78711, 512-427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The new sections are proposed under the Texas Education Code, §§56.451-56.464.

The new sections affect the Texas Education Code, Chapter 56, Subchapter Q, §§56.451-56.464.

§21.121.Authority and Purpose.

(a) Authority. Unless otherwise noted in a section, the authority for these provisions is provided by the Texas Education Code, §§56.451 - 56.464.

(b) Purpose. This subchapter establishes rules relating to the administration of the Texas B-On-Time student loan program that has been authorized by the Texas Legislature to improve and increase access to higher education in the State of Texas.

§21.122.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board- the Texas Higher Education Coordinating Board

(2) Commissioner- the Commissioner of Higher Education

(3) Default- the failure of a borrower to make loan installment payments for a total of 180 days

(4) Recommended or Advanced High School Program- the high school curriculum recommended under §28.025 (a) of the Texas Education Code

(5) Resident of Texas- A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B, of this title (relating to Determining Residence Status). Nonresident students eligible to pay resident tuition rates are not included.

§21.123.Institutions.

(a) Institutions that are eligible for Texas B-On-Time loans are institutions of higher education as defined in Texas Education Code, §61.003(8), and private or independent institutions of higher education as defined in Texas Education Code, §61.003(15).

(b) The Board shall provide a roster of its borrowers to each eligible institution prior to the end of each enrollment period. Within a reasonable period after the institution receives the roster, the Office of the Registrar shall identify all records of each student, and the institution shall supply information on each student borrower to the Board in a form prescribed by the Commissioner.

(c) In any academic year, if there are insufficient funds available to provide Texas B-On-Time loans to all eligible students, the Board will allocate funds to the institutions in proportion to the size of their full-time undergraduate populations. The institutions shall award the loans to the students according to financial need.

§21.124.Initial Eligibility for Loans.

(a) The Commissioner may authorize Texas B-On-Time Loans to students at any eligible institution which certifies that the student:

(1) is a resident of Texas as defined in these rules;

(2) graduated not earlier than the 2002-2003 school year under the Recommended or Advanced High School Program from a public or accredited private high school in Texas or received an associate degree from an eligible institution not earlier than May 1, 2005;

(3) has not been granted a baccalaureate degree;

(4) is enrolled for a full-time course load, as determined by the institution, in an undergraduate degree or certificate program at an eligible institution;

(5) is eligible for federal financial aid, except that the student is not required to meet any financial need requirements applicable to other financial aid programs;

(b) A student is not required to be 18 years of age at the time that he or she establishes eligibility for participation in the program; for the purpose of any promissory note executed by a borrower, the defense that he or she was a minor at the time he or she executed a note shall not be available to him or her in any action arising on the note.

§21.125.Continued Eligibility for Loans.

(a) After initially qualifying for a Texas B-On-Time loan, a student may continue to receive a Texas B-On-Time loan for each semester or term at an eligible institution if he or she continues to meet all initial eligibility requirements in §21.124 of this title (relating to Initial Eligibility for Loans) and additionally:

(1) if the student is enrolled in his/her first academic year at the institution, the student must make satisfactory academic progress toward a degree or certificate as determined and reported to the Board by the institution;

(2) if the student is enrolled at a qualifying institution in any academic year after his/her first academic year, the student:

(A) must have completed at least 75 percent of the hours attempted in the most recent academic year; and

(B) must have a cumulative grade point average of at least 2.5 on a four-point scale, or the equivalent;

(b) A student may not receive a Texas B-On-Time loan for more than 150 semester credit hours or the equivalent. If, in any given academic period, a student drops courses so that he or she is no longer taking a full-time course load as determined by the institution, and the Board does not receive a refund of the Texas B-On-Time loan for that period, the dropped courses will be counted toward the calculation of the 150-hour limit.

(c) If a person fails to meet any of the requirements for receiving a continuation award as outlined in Subsection (a) of this section after completion of any year, the person may not receive a Texas B-On-Time Loan until he or she completes courses while not receiving a Texas B-On-Time Loan and meets all the requirements of Subsection (a) (2) of this section as of the end of that period of enrollment.

§21.126.Disbursement to Students.

(a) No disbursement shall be made to any student until:

(1) the student has submitted an application containing the names of two personal references who live at different addresses, who are gainfully employed, and who are expected to know the student’s whereabouts at all times throughout the life of the loan;

(2) the student certifies that he or she has read and understands the rights and responsibilities of a borrower of a Texas B -On-Time Loan;

(3) the student has executed a promissory note payable to the program for the full amount of any loan plus other authorized fees; and

(4) the Board has received the original of such executed promissory note.

(b) A loan warrant must be negotiated or returned to the Board on or before the 120th day after the loan warrant issue date, or the warrant will be cancelled and the student will no longer be considered to be in the program.

(c) A person receiving a Texas B-On-Time loan may use the money to pay for any usual and customary costs of attendance incurred by the student at an eligible institution, including tuition, fees, books, and room and board.

(d) Each student borrowing a Texas B-On-Time loan shall pay an origination fee in an amount that is determined from time to time by the Commissioner. The fee is deducted from the loan proceeds at the time of disbursement. The rate of the loan origination fee shall be posted on the Board’s web site.

§21.127.Waiver of Course Load Requirement.

(a) The Board may waive the full-time course load requirement based on hardship and other good cause for a student that is enrolled less than full time, but who is enrolled for at least six semester hours and who is otherwise eligible for a Texas B-On-Time loan.

(b) Hardship and other good cause may be determined by the Board based upon documented circumstances. The Board may request assistance from the program officer at the student’s institution in determining whether or not these circumstances warrant exception to the full-time course load requirement.

(c) If the onset of a condition that constitutes a hardship should occur after a student has enrolled for a full-time course load, and the Commissioner determines that the student is justified by his or her circumstances in dropping to no fewer than six semester hours, the Commissioner may also, at his discretion, make a determination that the dropped courses will not count against the 75 percent requirement described in §21.125 (a)(2)(A) of this title (relating to Continued Eligibility for Loans), or toward the 150 hour maximum described in §21.125 (b) of this title (relating to Continued Eligibility for Loans). Among the circumstances that the Commissioner may take into consideration in making this determination is whether the student has dropped below full-time in other academic periods while receiving loans under this program.

§21.128.Loan Amount.

(a) For students at public and private or independent four-year institutions, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load for resident undergraduate students at general academic teaching institutions.

(b) For students at public technical institutes, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load for resident students in an associate degree or certificate programs at public technical institutes.

(c) For students at public community/junior colleges and private or independent junior colleges, the maximum amount of loan for a semester or term shall be the amount determined by the Board as the average statewide amount of tuition and required fees for a full-time course load at a public junior college for students who are residents of junior college districts.

(d) In January of each year, the program’s annual loan limits for the following academic year shall be posted on the Board’s web site.

§21.129.Forgiveness of Loans.

A Texas B-On-Time loan shall be forgiven if the student is awarded an undergraduate degree or certificate from an eligible institution, and the student either:

(1) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, within:

(A) four calendar years after the date the student initially enrolled in an eligible four year institution;

(B) five calendar years, if the degree is in architecture, engineering, or any other program determined by the Board to require more than four years to complete; or

(C) two calendar years after the date the student initially enrolled in an eligible public technical institute or public junior college; or

(2) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, with a total number of course credit hours, including transfer credit hours and hours earned exclusively by examination, that is not more than six hours more than the number of credit hours required to complete the degree or certificate.

§21.130.Loan Interest.

There shall be no interest charged for a Texas B-On-Time Loan unless a judgment is obtained against the borrower for default in payment. If a judgment should be taken, the interest rate shall be the amount specified in §304.003 of the Texas Finance Code, (relating to Judgment Interest Rate: Interest Rate or Time Price Differential Not in Contract).

§21.131.Repayment of Loans.

(a) All loans extended under this program to any borrower shall be placed by the Board into an "account," with the full amount of principal and any fees and costs that accrue over the life of the loans to be repaid in monthly installments which shall be calculated to repay the account over a period of not more than 15 years from the beginning of the repayment period. In no case will the minimum annual repayment on the account be less than $900.

(b) The repayment period shall begin no earlier than six months after the date on which the student ceases to be enrolled continuously in an eligible institution, as determined by the institution.

(c) An education deferment is available to any borrower whose account is not in a default status and who provides the Board with documentation of enrollment for at least a half-time course load.

(d) The Commissioner may grant periods of forbearance in the form of postponed or reduced payments for unusual financial hardship if the Board receives a written request stating the circumstances that merit such consideration.

(e) A charge of 5 percent of the scheduled monthly payment or five dollars ($5.00), whichever is less, shall be assessed if the past due amount is not received within 20 days of the scheduled due date. These charges shall be collected for late payment of all sums due and payable and shall be taken out of the next payment received by the Board.

(f) In the case of delinquent accounts, the Commissioner may authorize the assessment of charges necessary to collect the loan, which may include returned check fees, court costs fees, attorney fees, skip-trace fees, and long-distance telephone charges.

(g) Each payment that is received from the borrower to be credited to his or her account will be applied in the following manner:

(1) first, to any outstanding late charges and collection costs that may have accrued to the account; and

(2) next, to principal of the earliest dated note in the account.

§21.132.Deceased or Disabled Borrowers.

(a) All loans through the Texas B-On-Time Loan Program are discharged in the event of the borrower’s death or permanent and total disability.  

(b) Verification of death, and determination of permanent and total disability of a borrower through the Texas B-On-Time Loan Program, shall be made in accordance with student loan industry standards.

(c) The final determination of permanent and total disability of a borrower shall be made by the Commissioner. 

§21.133.Enforcement of Collection.

(a) When any Texas B-On-Time borrower fails to make as many as five monthly payments due in accordance with his or her repayment schedule, the full amount of remaining principal and other charges shall become due and payable immediately. 

(b) When as many as six payments have been missed, the loans will be considered to be in default, and the Office of the Attorney General, at the request of the Commissioner, may file suit for the unpaid balance plus court costs, attorney fees, and judgment interest, as described in §21.130 of this title (relating to Loan Interest). 

(c) All records of each student who is a borrower under this Subchapter shall be so identified in the Office of the Registrar at each eligible institution. The institution may not release an official certified copy of such records, nor may any student in this program re-register for classes in the institution, until the Texas B-On-Time program officer at the institution certifies to the registrar that the borrower’s B-On-Time account is in good condition. The Commissioner must approve exceptions to this section in advance of the institution’s release of an official certified copy of the records or of the borrower’s re-registration.

(d) In accordance with state law, the Board will notify the Comptroller of Public Accounts when a borrower’s account has become 90 days or more past due. Until the delinquency is cured, no state warrant other than a wage warrant will be released to the borrower. This prevents the delinquent borrower from receiving further warrants for state student financial aid.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304579

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter G. TEACH FOR TEXAS LOAN REPAYMENT ASSISTANCE PROGRAM

19 TAC §§21.171 - 21.176

The Texas Higher Education Coordinating Board proposes new §§21.171-21.176, concerning the Teach for Texas Loan Repayment Assistance Program. Specifically, the new sections implement statutory changes to §§56.351 through 56.355 and §§56.3575 and 56.359 of the Texas Education Code, passed in S.B. 286 by the 78th Texas Legislature, Regular Session, and state the Board’s authority for the administration of the program, the purpose of the program, the priority of distribution of funds in case of competing applications, the eligibility requirements for teachers and for types of education loans that will be repaid by the program, and the conditions for repayment of education loans. The new sections will replace the Teach for Texas Conditional Grant program.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the proposed rules.

Ms. Hollis has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering these sections (if funds are appropriated) will be an increase in the number of classroom teachers in communities and subjects for which there is an acute shortage of teachers in Texas. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no negative impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711-2788, or by e-mail to lois.hollis@thecb.state.tx.us.

The new rules are proposed under the Texas Education Code, §56.3575, which authorizes the Coordinating Board to adopt rules necessary for the administration of this subchapter.

The new rules affect Texas Education Code, §§56.351- 56.355, §56.375 and §56.359.

§21.171.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Teach for Texas Loan Repayment Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §61.702.

(b) Purpose. The purpose of the Teach for Texas Loan Repayment Assistance Program is to recruit and retain classroom teachers in communities and subjects for which there is an acute shortage of teachers in Texas.

§21.172.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1) Board--The Texas Higher Education Coordinating Board.

(2) Classroom Teacher--A person who is employed full-time by a public school district and in that capacity teaches at least four hours each day. The term does not include a teacher's aide or a full-time administrator.

(3) Program--Teach for Texas Loan Repayment Assistance Program.

(4) Service Period--A period of service of at least 9 months of a 12-month academic year.

(5) Default--For purposes of this subchapter, a loan is considered in default if it is reduced to judgment.

§21.173.Priorities of Application Acceptance.

Acceptance of applications will depend upon the availability of funds. An application deadline will be established each year and published on the Board’s web site. Applications will be ranked according to the following criteria:

(1) Renewal applicants shall be given priority over first-time applicants unless a break in service periods has occurred.

(2) Financial need as evidenced by the total amount of student loan indebtedness.

(3) Severity of shortage of teachers in the community or teaching field as described in §21.174 of this title (relating to Eligible Teacher).

§21.174.Eligible Teacher.

To be eligible for loan repayment an individual must:

(1) be certified in a teaching field identified by the Texas Education Agency as experiencing a critical shortage of teachers in this state in the year in which the individual receives the assistance; and

(2) have for at least one year taught full-time, and be currently teaching full-time at the preschool, primary, or secondary level in a public school in this state in:

(A) a teaching field that has been designated by the Texas Education Agency as having an acute shortage of teachers in the year for which the teacher receives the assistance; or

(B) in a community that has been designated as having an acute shortage of teachers by the Texas Education Agency; and

(3) submit a completed application to the Board by the stated deadline.

§21.175.Eligible Education Loan.

An eligible education loan is one that:

(1) is evidenced by a promissory note or other writing which explicitly requires the loan proceeds to be used to pay for costs incurred for attendance at public or private institution of higher education; and

(2) is not in default at the time of the application.

§21.176.Repayment of Education Loans.

Eligible education loans shall be repaid under the following conditions:

(1) the annual repayment(s) shall be in one disbursement made co-payable to the teacher and the holder(s) of the loan(s);

(2) the annual repayment amount is the lesser of $5,000 or the total unpaid balance of the loans(s) and the aggregate amount of loan repayment shall not exceed $20,000; and

(3) the teacher shall not receive loan repayment assistance for more than five years.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304586

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter J. PHYSICIAN EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §§21.251, 21.255, 21.262, 21.263

The Texas Higher Education Coordinating Board proposes amendments to §§21.251, 21.255, 21.262, and 21.263 of Board rules, concerning the Physician Education Loan Repayment Program. Specifically, amendments to §21.251 clarify the authority for the administration of the program and the purpose of the program. Amendments to §§21.251 and 21.262 update the name of the office that handles the program. The amendment to §21.255 merely updates the statutory authority for the Medically Underserved Community-State Matching Incentive Program. Amendments to §§21.262 and 21.263 implement statutory changes to §61.532 of the Texas Education Code, passed in S.B. 286 by the 78th Texas Legislature, Regular Session, and eliminate the program for family practice residents and clinical faculty members who completed training in an approved family practice residency training program.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the new sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of administering the sections will enable the state to attract and retain more physicians to state agencies or underserved areas of the state by awarding additional loan repayments. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P. O. Box 12788, Austin, Texas 78711, 512-427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §61.531, and §61.532.

The amendments affect Texas Education Code, Chapter 61, Subchapter J, §§61.532 and 61.540.

§21.251. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter J, Repayment of Certain Physician Education Loans. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.531 through 61.539.

(b) Purpose. The purpose of the Physician Education Loan Repayment Program is to encourage qualified physicians to practice medicine in designated areas of the state or for specified state agencies. The purpose of the state-funded portion of the program is to encourage qualified physicians to practice medicine in a medically underserved area that is economically depressed or rural or for the Texas Department of Health, the Texas Department of Mental Health and Mental Retardation, the Texas Department of Criminal Justice, the Texas Youth Commission, or a Community Health Center. The purpose of the State Loan Repayment Program [ National Health Service Corps ] Matching Federal Loan repayments is to encourage qualified physicians to practice in Health Professional Shortage Areas. The purpose of the family practice faculty [ and resident ] portion of the program is to encourage employment as full-time faculty in an approved Texas Family Practice Residency training program. [ specializing in family practice and practicing in rural counties and Health Professional Shortage Areas in Texas. ]

§21.255.Special Limitations.

(a) An eligible physician is one who:

(1) (No change.)

(2) has not received start-up assistance from a sponsoring community under the Medically Underserved Community-State Matching Incentive Program under Government Code, Chapter 487, Subchapter F. [ and the State Board of Health under Chapter 46, Health and Safety Code. ]

(b) (No change.)

§21.262. Eligibility for State Loan Repayment Program (SLRP) [ National Health Service Corps (NHSC) ] Matching Federal Loan Repayments.

SLRP [ NHSC ] loan repayments are matched with an equivalent amount awarded under the provisions of §21.261 of this title (relating to State-Funded Portion for Post-Residency Practice) [ or §21.263 of this title (relating to Family Practice Resident and Faculty Participation) ]. A physician eligible for matching loan repayments is one who:

(1)-(4) (No change.)

§21.263. Eligibility for Family Practice [ Resident and ] Faculty Participation.

(a) The Texas Family Practice Residency Advisory Committee shall [ will ] establish priorities among eligible physicians for repayment assistance by taking into account the degree of physician shortage, geographic location, and other criteria the committee considers appropriate. The annual award amounts will be based on a point system that reflects the purpose of the program. A participant is eligible for no more than two awards.

[ (1) An eligible resident is a resident who has an unrestricted, temporary, or institutional license to practice medicine in Texas from the Texas State Board of Medical Examiners and is participating in an approved Texas Family Practice Residency Training Program in Texas. Residents ending their second and third years of training during any given state fiscal year are eligible.]

(b) [ (2) ] An eligible faculty member is one who practices at an approved Texas Family Practice Residency Training Program, has an unrestricted, temporary or institutional license to practice medicine in Texas from the Texas State Board of Medical Examiners, and has completed training in an approved Texas Family Practice Residency Training Program on or after July 1, 1994.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304583

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter CC. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM

19 TAC §§21.950, 21.954 - 21.958

The Texas Higher Education Coordinating Board proposes amendments to §§21.950, 21.954, 21.955, 21.956, 21.957, and 21.958, concerning the Early High School Graduation Scholarship Program. Specifically, the amendments to §21.950 clarify the authority for the administration of the program and implement statutory changes to §56.202 of the Texas Education Code, passed in H.B. 1882 by the 78th Texas Legislature, Regular Session, by clarifying that the purpose of the program is to provide financial assistance beyond the cost of tuition. Amendments to §21.954 implement statutory changes to §56.203 of the Texas Education Code, passed in H.B. 1882 by the 78th Texas Legislature, Regular Session. Students who graduate from high school after September 1, 2003, must successfully complete the Recommended or Advanced High School Program in order to be eligible for the Early High School Graduation Scholarship Program unless the required courses were unavailable due to course scheduling, lack of enrollment capacity, or another cause not with the person's control. The amendments lengthen the time within which a student must graduate from high school in order to be eligible from 36 to 41 consecutive months or, if the person graduated with at least 30 hours of college credit, to not more than 45 consecutive months. Further amendments to §21.954 clarify that a person's eligibility for the scholarship program ends on the sixth anniversary of the date the person first becomes eligible to receive funding through the program unless the person is granted an extension for hardship or other good cause. A student may not initially use a state credit for enrollment during any term of a summer session immediately following the person's graduation from high school. Amendments to §21.956 implement statutory changes to §56.204 of the Texas Education Code, passed in H.B. 1882 by the 78th Texas Legislature, Regular Session, and clarify that an eligible person is entitled to apply a state credit to pay mandatory fees in addition to tuition. For students whose graduation date is after September 1, 2003, the specific amount that an eligible person may receive will be based on how many months the student took to successfully complete the Recommended or Advanced High School Program, and the amount of college credit the student had earned at the time of graduation from high school. Amendments to §21.957 clarify the process for awarding scholarships, and amendments to §21.958 clarify the process by which an institution must make refunds to the Early High School Graduation Scholarship Program if an award recipient withdraws from or drops a class during the first four weeks of class.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the sections will be to clarify and enhance the eligibility requirements of the program and expand the assistance to include mandatory fees in addition to tuition. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P. O. Box 12788, Austin, Texas 78711, 512-427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §56.209, which provides the Coordinating Board with the authority to adopt rules to administer the Early High School Graduation Scholarship Program and §§56.202, 56.203, and 56.204.

The amendments affect the Texas Education Code, Chapter 56, §§56.201, 56.2075 and 56.213.

§21.950. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter K, Early High School Graduation Scholarship Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.201 through 56.209.

(b) Purpose. The purpose of the Early High School Graduation Scholarship Program is to increase the efficiency of the Foundation School Program and provide financial [ tuition ] assistance to eligible students.

§21.954. Eligibility [ Eligible Students ].

(a) To be eligible to receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school before September 1, 2003 , [ person ] must:

(1) (No change)

(2) have written approval to graduate early from a parent or person standing in parental relation to the student; [ provide the Program Officer proof of eligibility, in the form of a certificate issued by the board, ]

(3) be a Texas resident, and [ provide written approval of a parent or person standing in parental relation to the student; ]

[ (4) be a Texas resident; and]

(4) [ (5) ] not be a recipient of $1,000 through the Tuition Credit Program in operation in 1993 and 1994.

(b) To be eligible to receive an award through the Early High School Graduation Scholarship Program, a student who graduated from high school after September 1, 2003, must:

(1) have attended high school only in this state;

(2) have successfully completed the Recommended or Advanced High School Program established under Texas Education Code, §28.025, unless the principal or other authorized representative of the student's high school indicates on the student's transcript that the courses in the Recommended or Advanced High School Program which the student did not complete were unavailable to the student at the appropriate time in his or her high school career because of:

(A) course scheduling;

(B) lack of enrollment capacity; or

(C) another cause not within the person's control, an explanation for which is provided on the transcript by the official;

(3) be considered a Texas resident for tuition purposes as established by the Board in 19 TAC §21.21, et seq, (relating to Determining Residence Status); and

(4) have graduated:

(A) in not more than 41 consecutive months, in which case the student must provide written approval of a parent or person standing in parental relation to the student; or

(B) in not more than 45 consecutive months, if the student graduated with at least 30 hours of college credit.

(5) A student's eligibility to receive a tuition credit under the Early High School Graduation Scholarship Program begins with the first regular semester or term following the student's graduation, exclusive of summer sessions that immediately follow the student's graduation. A student's eligibility to receive a tuition credit under the program ends six years after it begins, unless the student seeks and is granted an extension under §21.960 of this title (relating to Hardship Extensions).

§21.955.Source of Funding.

Amounts sufficient to reimburse colleges for [ tuition ] scholarships awarded to students who meet the eligibility requirements of the program will be drawn from funds appropriated for Foundation School Program allocations and transferred to the Board by the Commissioner of Education.

§21.956.Award Amounts.

(a) If a tuition credit awarded through the Early High School Graduation Scholarship Program is more than the amount of the student's first semester's tuition plus, if applicable, mandatory fees, the balance of the student's award may be used in subsequent semesters. [ The amount awarded a student through this program may not exceed the least of: ]

(b) For students whose graduation date is before September 1, 2003, the amount of state tuition credit that shall be awarded to a student through this program:

(1) may not exceed the least of: [ the student's actual tuition charges for college courses, ]

(A) [ (2) ] $1,000; or

(B) the sum of $1,000 minus the amount the student received through the Tuition Credit Program; or

(C) for students attending eligible private or independent institutions of higher education, the amount of institutional tuition gift assistance that the institution agrees to offer during the same enrollment period to match the state award.

[ (3) the sum of $1,000 minus the amount the student received through the Tuition Credit Program. Students attending eligible private institutions of higher education must receive an equal amount of institutional tuition gift assistance during the same enrollment period.]

(2) may only be applied to reduce the student's tuition.

(c) For students whose graduation date is after September 1, 2003:

(1) the amount of tuition credit that may be awarded to a student through this program is:

(A) $2,000 if the student completed the Recommended or Advanced High School Program and graduated from high school in 36 consecutive months or less and an additional $1,000 if the person graduated with at least 15 hours of college credit; or

(B) $500 if the student completed the Recommended or Advanced High School Program and graduated from high school in more than 36 consecutive months but not more than 41 consecutive months and an additional $1,000 if the person graduated with at least 30 hours of college credit; or

(C) $1,000 if the student completed the Recommended or Advanced High School Program and graduated from high school in more than 41 consecutive months but not more than 45 consecutive months with at least 30 hours of college credit.

(D) A student who is attending a private or independent institution may not receive a greater state tuition credit in any enrollment period than the amount of gift assistance that is provided by the institution and credited in the same manner, during that enrollment period.

(2) The tuition credit award may be applied to reduce the student's tuition and mandatory fees.

§21.957.Awarding of Scholarships.

(a) A student who may be [ Students ] eligible for a [ the tuition ] tuition credit [ scholarships ] is [ are ] to have his or her [ their ] high school [ schools ] provide the board a letter which attests to the student's eligibility with respect to early graduation, parental approval and high school curriculum and location [ enrollment only in Texas ]. The letter must [ should ] also indicate the college or university the student plans to attend.

(b) Upon receipt of the high school letter, if the Board finds that, other than a determination of residency status, all eligibility requirements have been met, the Board will send a letter to the institution of higher education so advising the institution [ of the student's potential eligibility ]. A copy of the board's letter will be sent to the student.

(c) When the student registers at the institution, the institution is to verify the student's Texas resident status. If the student is a resident and the institution has a letter of eligibility from the board, it may then grant the student a tuition credit [ tuition scholarship ] in the appropriate amount.

(d) (No change.)

[ (e) If the tuition award in the student's first semester in the Early High School Graduation Scholarship Program, combined with funds received through the Tuition Credit Program, is less than $1,000, the balance of the student's eligibility may be used in a subsequent semester. ]

[ (f) Under no conditions may a student's total award through this program plus funds received through the Tuition Credit Program exceed $1,000 of state funds.]

§21.958.Refunds.

The institution attended by a Tuition Credit award recipient who withdraws from a class or drops classes during the first four weeks of class will be expected to make a refund to the Early High School Graduation Scholarship Program for the amount [ tuition ] received from the program for the dropped classes , calculated in accordance with the institution's general refund policies.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304581

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


19 TAC §21.960

The Texas Higher Education Coordinating Board proposes new §21.960, concerning the Early High School Graduation Scholarship Program. Specifically, §21.960 implements subsection (c) of §56.203 of the Texas Education Code, passed in H.B. 1882 by the 78th Texas Legislature, Regular Session, and allows an otherwise eligible student who graduated from high school on or after September 1, 2003, an extension of one year to use a state credit under the program if the student demonstrates hardship or other good cause to grant the extension.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the sections will be to clarify and enhance the eligibility requirements of the program and expand the assistance to include mandatory fees in addition to tuition. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P. O. Box 12788, Austin, Texas 78711, 512-427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The new section is proposed under the Texas Education Code, §56.209, which provides the Coordinating Board with the authority to adopt rules to administer the Early High School Graduation Scholarship Program and §§56.202, 56.203, and 56.204.

The new section affects the Texas Education Code, Chapter 56, §§56.201, 56.2075 and 56.213.

§21.960.Hardship Extensions.

An otherwise eligible student who graduated from high school on or after September 1, 2003, and who is unable to use his or her scholarship within the allotted six years may petition the Board for an extension. Such extensions, not to exceed one year, may be granted on the basis of hardships or other good causes, including but not limited to:

(1) a severe illness or other debilitating condition; or

(2) responsibility for the care of a sick, injured, or needy person.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304582

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter LL. EARLY CHILDHOOD CARE PROVIDER STUDENT LOAN REPAYMENT PROGRAM

19 TAC §§21.2050 - 21.2056

The Texas Higher Education Coordinating Board proposes new §§21.2050-21.2056, concerning the Early Childhood Care Provider Student Loan Repayment Program. Specifically, the new rules implement §§61.873 and 61.876 of the Texas Education Code, passed in S.B. 286 by the78th Texas legislature, Regular Session, and provide for the authority, scope and purpose of the program, applicable definitions, priorities of application acceptance and selection criteria, eligibility requirements for types of loans that may be repaid through the program, qualifications for participation in the program, amounts of repayment and limitations on repayment, and regarding the dissemination of information about the program. The new sections replace a previous program for Early Childhood Care Providers that was a combination of a loan forgiveness and loan repayment program, with a loan repayment program.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the proposed rules.

Ms. Hollis has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated (if funds are appropriated) as a result of administering the sections will be an increase in the number of qualified childcare providers who work in licensed Texas childcare facilities and whose duties consist primarily of providing childcare or education to children less than four years old. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711-2788, or by e-mail to lois.hollis@thecb.state.tx.us.

The new rules are proposed under the Texas Education Code, §61.872, which authorizes the Coordinating Board to provide assistance in the repayment of eligible student loans for persons who apply and qualify for the assistance, §61.873 and §61.876.

The new rules affect Texas Education Code, Subchapter T, §§61.873 and 61.876.

§21.2050.Authority and Purpose.

(a) Authority. The authority for this subchapter is provided in the Texas Education Code, Subchapter T, Early Childhood Child-Care Worker Student Loan Repayment Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.871 through 61.878, as amended effective September 1, 2003. For participants who were awarded loan repayment assistance under the law that was in effect before September 1, 2003 the agreement entered into with the Board continues in effect until the participant satisfies all the conditions of the agreement.

(b) Purpose. The purpose of the Early Childhood Care Provider Student Loan Repayment Program is to recruit and retain qualified child-care providers who work in licensed Texas child-care facilities and whose duties consist primarily of providing child care or education to children less than four years old.

§21.2051.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:  

(1) Child-care facility--A child-care facility licensed through the Division of Child Care Licensing of the Texas Department of Protective and Regulatory Services.  

(2) Default--for purposes of this subchapter a loan is considered in default if it is reduced to judgment.  

(3) Early childhood care provider--A person who works 31 hours or more a week in a child-care facility, whether as an employee, owner, or volunteer, and whose duties consist primarily of providing child care or education to children less than four years of age.  

(4) Early childhood degree--An associate, baccalaureate, or graduate degree in early childhood development or a degree that is equivalent to a degree in early childhood development.  

(5) Education loan--A loan made to an individual for the purpose of attending a qualifying institution.

(6) General academic teaching institution--As defined in the Texas Education Code, §61.003.  

(7) Qualifying Institution--a general academic teaching institution, as defined in Texas Education Code, §61.003(8), or a private or independent institution of higher education, as defined in Texas Education Code, §61.003(15), or an out of state institution that is accredited by a recognized accrediting agency, as defined within.  

(8) Recognized accrediting agency--The Southern Association of Colleges and Schools and any other association or organization so designated by the Board, which are listed in the Board’s rules at 19 TAC §7.3.  

(9) Repayment(s)--Financial assistance for repaying education loans.

§21.2052.Priorities of Application Acceptance and Selection Criteria.

(a) Acceptance of applications shall depend on the availability of funds. If funds are available an application deadline will be established each year and will be published on the Board’s web site at www.collegefortexans.com. Selection of applicants to participate in the program shall be based upon an assessment of an applicant’s financial need.  

(b) Renewal applicants shall be given priority over first-time applicants.  

§21.2053.Eligible Education Loan.

An education loan eligible for repayment is one that:  

(1) was obtained for purposes of attending any qualifying institution;  

(2) is evidenced by a promissory note:  

(A) promising repayment of funds received through any student loan program,  

(B) with language that clearly indicates that loan proceeds must be used for direct and indirect expenses at an eligible institution, or  

(C) for consolidating education loans;  

(3) is not in default at the time of the early childhood care provider’s application.  

§21.2054.Qualifications for Participation.

To be eligible for loan repayment a participant must:   

(1) hold an early childhood degree from a qualifying institution; and

(2) be currently employed as an early childhood care provider in a Texas child-care facility; and

(3) have completed at least one year of employment as an early childhood care provider in a Texas child-care facility by the application deadline.  

§21.2055.Amount of Repayments and Limitations.

(a) Participation in the program may not exceed a total of five years.  

(b) The total annual loan repayments may not exceed the lesser of the following:  

(1) 15 percent of the total of all remaining scheduled payments of all education loans based upon a leveled payment schedule on the date of the annual application deadline;

(2) the actual annual amount of the loan payments required by the note and holder of the education loans; or  

(3) an amount published on the Board’s web site, at www.collegefortexans.com, as the average amount of resident tuition and required fees paid by a person enrolled full time at a qualifying institution for the most recent academic year, excluding summer school.    

(c) Repayments shall be made copayable to the child-care provider and the holder of the education loan notes.  

§21.2056.Dissemination of Information.

If funds are available the Board shall distribute rules and pertinent information about the Early Childhood Care Provider Student Loan Repayment Program to qualifying institutions offering an early childhood degree and to appropriate associations, facilities, and other entities.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304587

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter L. TOWARD EXCELLENCE, ACCESS AND SUCCESS (TEXAS) GRANT PROGRAM

19 TAC §§22.225, 22.226, 22.228 - 22.230, 22.232

The Texas Higher Education Coordinating Board proposes amendments to §§22.225, 22.226, 22.228, 22.229, 22.230 and 22.232, concerning the Toward EXcellence, Access and Success (TEXAS) Grant Program. Specifically, amendments to §22.225 clarify the authority for the administration of the program, amendments to §22.226 clarify the definition of an initial disbursement, and amendments to §22.228 implement new §56.0341 of the Texas Education Code, passed in S.B. 1007 by the 78th Texas Legislature, Regular Session, allowing students who are on track to graduate from high school and complete the Recommended or Advanced High School Program based on the student's available high school transcript to receive an initial TEXAS Grant award. Eligibility for a TEXAS Grant ends in one year if the student fails to complete the Recommended or Advanced High School Program, but the student would have an additional four years of eligibility if the student later receives an associate's degree. Amendments to §22.229 implement statutory changes to §56.305 of the Texas Education Code, passed in S.B. 1007 by the 78th Texas Legislature, Regular Session, and add a hardship provision for students whose grade point average or completion rate falls below the requirements for satisfactory academic progress, and eliminate the requirement that recipients must be enrolled at least half-time in order to receive a TEXAS Grant. The amendment to §22.230 establishes priority among eligible students. Amendments to §22.232 implement new §56.0341 of the Texas Education Code, passed in S.B. 1007 by the 78th Texas Legislature, Regular Session, and add a requirement that a student who received an award based on expected high school graduation under the Recommended or Advanced High School Program may have to forgo or repay the amount of the initial award if the program is not completed. The amendments also implement statutory changes to §56.307 of the Texas Education Code and clarify that the amount of a TEXAS Grant may not be reduced by any gift aid unless the total amount of a person's gift aid exceeds the student's financial need.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the sections are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering these changes in the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of administering the sections will be to improve and increase access to higher education through the awarding of TEXAS Grants. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, P. O. Box 12788, Austin, Texas 78711, 512-427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §56.303, which provides the Coordinating Board the authority to administer the TEXAS Grant program and adopt any rules necessary to implement the program and §56.305, §56.307, and new §56.3041.

The amendments affect the Texas Education Code, Chapter 56, Subchapter M, §§56.3041, 56.305 and 56.307.

§22.225. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter M, Toward EXcellence, Access and Success (TEXAS) Grant Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.301 through 56.311.

(b) Purpose. The purpose of this program is to provide grants of money to enable eligible students to attend public and private institutions of higher education in this state.

§22.226.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise:

(1)-(3) (No change.)

(4) Initial disbursement [ Initial award ]--The first disbursement of the grant, [ grant award ] made in the first semester in which a student is eligible.

(5) (No change.)

§22.228.Eligible Students.

(a) To receive a disbursement [ an initial award ] through the TEXAS Grant Program, a student must:

(1) be a resident of Texas , as evidenced by answers to the Board's core residency questions ;

(2)-(3) (No change.)

(4) not have been granted a baccalaureate degree; [ be enrolled, unless approved under §22.229(a) of this title (relating to Hardship Provisions), at least three-quarter time in an undergraduate degree or certificate program at an eligible institution; ]

(5) be a graduate of an accredited high school in this state not earlier than the 1998-99 school year, [ be enrolled in an undergraduate degree or certificate program and not have been granted a baccalaureate degree; ]

(6) complete the Recommended or Advanced High School Program established under the Texas Education Code, §28.002 or §28.025, or its equivalent, unless the student: [ meet one of the two following conditions: ]

(A) graduated from a public high school that has been certified by its district not to offer all the courses necessary to complete all parts of the Recommended or Advanced High School Program, and the student has completed all courses that the high school offered toward the completion of such a curriculum; or

(B) did not graduate under the Recommended or Advanced High School Program as anticipated when the award was made;

(C) has received an associate degree from an eligible institution no earlier than May 1, 2001;

[ (A) be a graduate of a public or accredited private high school in this state not earlier than the 1998-99 school year; having completed the recommended or advanced high school curriculum established under the Texas Education Code, §28.002 or §28.025, or its equivalent (except as indicated in paragraph (7) of this subsection), and unless granted a hardship extension in keeping with §22.229 of this title, enroll as an entering undergraduate student not later than the end of the 16th month after the month of high school graduation; or]

[ (B) have received an associate degree from an eligible institution no earlier than May 1, 2001, and re-enroll not later than the end of the 12th month after the month the person receives an associate degree from an eligible institution;]

(7) enroll in an eligible institution on at least a three-quarter time basis:

(A) not later than the end of the 16th month after high school graduation, if an entering undergraduate student; or

(B) not later than the end of the 12th month after a student has received an associate degree. [ if a graduate of a public high school certified by its district not to offer all the courses necessary to complete all parts of the recommended or advanced high school curriculum, have completed all courses at the high school offered toward the completion of such a curriculum and enroll in an eligible institution not later than the end of the 16th month after the month of high school graduation (unless granted a hardship extension in keeping with §22.229 of this title); and ]

[ (8) if a graduate of a private high school, graduate from a high school identified by the Texas Education Agency as accredited so the high school transcript can be accepted as equivalent to the recommended or higher curriculum offered by public high schools.]

(b) To receive a continuation award through the TEXAS Grant Program, a student must:

(1) have previously received an initial disbursement [ award ] through this program;

(2) show financial need;

(3) [ unless approved under §22.229 of this title, ] be enrolled at least three-quarter time;

(4) be enrolled in an undergraduate degree or certificate program at an eligible institution;

(5) not have been granted a baccalaureate degree; and

(6) make satisfactory academic progress towards an undergraduate degree or certificate, which requires:

(A) in the person's first academic year that he or she met [ meet ] the satisfactory academic progress requirements as indicated by the financial aid office of his or her institution; and

(B) in subsequent years, completion of at least 75 percent of the hours attempted in the student's most recent academic year, and maintenance of an overall grade point average of at least 2.5 on a four-point scale or its equivalent , for all coursework attempted at public or private or independent institutions of higher education ;

(7) If a student's eligibility was based on the expectation that the student would complete the Recommended or Advanced High School Program, and the student failed to do so, then in order to resume eligibility such a student must:

(A) receive an associate's degree;

(B) meet all other qualifications for a TEXAS Grant; and

(C) if required by the institution through which the TEXAS Grant was made, repay the amount of the TEXAS Grant that was previously paid.

[ (7) have received a TEXAS grant for no more than 150 semester credit hours or the equivalent of no more than 90 semester credit hours for individuals eligible for TEXAS Grants based on receipt of an associate's degree; and]

[ (8) if already awarded an undergraduate certificate or associate degree while receiving a TEXAS grant, enroll in a program leading to a higher-level undergraduate degree no later than the end of the 12th month after the month the person receives the certificate or degree.]

(c) Discontinuation of Eligibility or Non-Eligibility.

(1) Unless granted a hardship postponement in accordance with §22.229(c) of this title (relating to Hardship Provisions), a student's eligibility for a TEXAS Grant ends six years from the start of the semester or term in which the student received his or her initial disbursement of a TEXAS Grant, if the student's eligibility for a TEXAS Grant was based on the completion of the Recommended or Advanced High School Program or its equivalent in high school.

(2) Unless granted a hardship postponement in accordance with §22.229(c) of this title (relating to Hardship Provisions), a student's eligibility ends four years from the date of the semester or term in which the student received his or her initial disbursement of a TEXAS Grant if the student's eligibility was based on receiving an associate's degree.

(3) A student's eligibility ends one year from the date of the semester or term in which the student received his or her initial disbursement, if the student's eligibility was based on the expectation that the student would complete the Recommended or Advanced High School Program, but the student failed to do so. However, if such a student later receives an associate's degree and again qualifies for TEXAS Grants, he or she receives an additional four years of eligibility.

(4) A student may receive a TEXAS Grant for no more than 150 semester credit hours or the equivalent, or for no more than 90 semester credit hours for an individual who is eligible for a TEXAS Grant based on receipt of an associate's degree.

(5) A person is not eligible to receive an initial or continuation TEXAS Grant if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of any other jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has:

(A) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or

(B) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a TEXAS Grant.

(6) Other than as described in §22.229 of this title (relating to Hardship Provisions), if a person fails to meet any of the requirements for receiving a continuation award as outlined in subsection (b) of this section after completion of any year, the person may not receive a TEXAS Grant until he or she completes courses while not receiving a TEXAS Grant and meets all the requirements of subsection (b) of this section as of the end of that period of enrollment.

[ (c) Unless granted a hardship postponement in keeping with §22.229 (c) of this title, a student's eligibility for a TEXAS Grant ends six years from the start of the semester or term in which the student received his or her initial award of a TEXAS grant if the student's eligibility for a TEXAS Grant was based on his or her high school performance. Unless granted a hardship postponement in keeping with §22.229 (c) of this title, a student's eligibility ends four years from the date of the semester or term in which the student received his or her initial award of a TEXAS Grant if the student's eligibility was based on receiving an associate's degree.]

[ (d) A person is not eligible to receive an initial or continuation TEXAS Grant if the person has been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of any other jurisdiction involving a controlled substance as defined by Chapter 481, Health and Safety Code, unless the person has met the other applicable eligibility requirements under this subchapter and has:]

[ (1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or]

[ (2) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a TEXAS grant.]

[ (e) If a person fails to meet any of the requirements for receiving a continuation award as outlined in subsection (b) of this section after completion of any year, the person may not receive a TEXAS Grant until he or she completes courses while not receiving a TEXAS Grant and meets all the requirements of subsection (b) of this section as of the end of that period of enrollment.]

§22.229.Hardship Provisions.

(a) In the event of a hardship or for other good cause, the Program Officer at an eligible institution may allow an otherwise eligible person to receive a TEXAS Grant while enrolled for an equivalent of less than three-quarter time or if the student's grade point average or completion rate falls below the satisfactory academic progress requirements of §22.228(b)(6) of this title (relating to Eligible Students) . Such conditions are not limited to, but include:

(1) a showing of a severe illness or other debilitating condition that may affect the student's academic performance;

(2) an indication that the student is responsible for the care of a sick, injured, or needy person and that the student's provision of care may affect his or her academic performance; or

(3) the requirement of fewer than nine hours to complete one's degree plan.

[ (b) Under no circumstances, other than fewer hours required for graduation, may a person enrolled less than half time receive a TEXAS grant.]

(b) [ (c) ] A student's general eligibility for a TEXAS Grant terminates six years from the term in which he or she receives the first award, if the student's eligibility was based on his or her high school performance or four years, if his or her eligibility was based on receiving an associate's degree. However, the director of financial aid may grant an extension of the six or four years in the event of extreme hardship. Documentation justifying the extension must be kept in the student's files, and the institution must identify students' granted extensions, and the length of their extensions to the Coordinating Board, so that it may appropriately monitor each student's period of eligibility.

(c) [ (d) ] A student must enroll in higher education within 16 months of high school graduation. However, the financial aid director may allow a student to receive his/her first award after more than 16 months have passed if the student and/or the student's family has suffered a hardship that would now make the student rank as one of the institution's neediest. Documentation justifying the exception must be kept in the student's files.

§22.230.Priorities in Funding.

If appropriations for the TEXAS Grant Program are insufficient to allow awards to all eligible students, the following priorities will be followed by the Board in the use of funds:

(1) continuation awards through the TEXAS Grant Program; and

(2) initial disbursements [ awards ] through the TEXAS Grant Program.

§22.232.Awards and Adjustments.

(a)-(c) (No change.)

(d) Amount of Grant.

(1) The amount of a TEXAS Grant may not be 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 student's financial need.

(2) [ (1) ] The maximum amount of state TEXAS Grant funds that may be received in a given semester or term by a student through the TEXAS Grant Program is an amount equal to the lesser of a student's need or average tuition and required fees charged students enrolled in similar institutions for the statewide average full-time load for financial aid recipients. The maximum state award for recipients enrolled at eligible private or independent institutions is based on the student's need and the average tuition and required fees at public universities. The maximum state award for students enrolled in public community colleges is based on the lesser of a student's need and the average in-district tuition and fee charges for such institutions. The Board shall determine and announce state award maximum amounts prior to the start of each fiscal year.

(3) [ (2) ] For students enrolled in eligible independent institutions, the amount of the TEXAS Grant, when combined with the amount received through the Tuition Equalization Grant Program (Texas Education Code, Chapter 61.221) may not exceed the student's need or the total amount of tuition and required fees charged to the student for the academic periods for which one or more of the grants were awarded; [ the maximum award for which the student is eligible through the Tuition Equalization Grant Program. ]

(4) [ (3) ] An eligible public institution may not charge a person receiving a TEXAS Grant through that institution, an amount of tuition and required fees in excess of the amount of the TEXAS Grant received by the person. Nor may it deny admission to or enrollment in the institution based on a person's eligibility to receive or actual receipt of a TEXAS Grant. If an institution's tuition and fee charges exceed the TEXAS Grant amount, it may address the shortfall in one of two ways:

(A) It may use other available sources of financial aid, other than a loan or work-study funds [ or a Pell grant, ] to cover any difference in the amount of a TEXAS Grant and the student's actual amount of tuition and required fees at the institution; or

(B) it may waive the excess charges for the student. However, if a waiver is used, the institution may not report the recipient's tuition and fees in a way that would increase the general revenue appropriations to the institution.

(5) The eligible institution may require a student to forgo or repay the amount of an initial TEXAS Grant awarded to the student as described in §22.228(6)(A)(2) of this title (relating to Eligible Students) if the student fails to complete the Recommended or Advanced High School Program or its equivalent after the issuance of the available high school transcript.

(e)-(f) (No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304589

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114


Subchapter N. INDIVIDUAL DEVELOPMENT ACCOUNT INFORMATION PROGRAM

19 TAC §§22.280 - 22.282

The Texas Higher Education Coordinating Board proposes new §§22.280-22.282, concerning the Individual Development Account Information Program. Specifically, the new sections implement §61.0816 of the Texas Education Code, passed in S.B. 968 by the 78th Texas Legislature, Regular Session. The new sections state the authority, scope and purpose of the program, applicable definitions, and new reporting requirements for eligible institutions that participate in the Individual Development Account Information Program. The new sections provide rules for the Individual Development Account Information Program (IDA) to increase awareness of the existence of the program and the benefits of participating, in the hope that students at community colleges and their families will use IDAs to finance a bachelor’s degree.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the sections are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of administering the program will be approximately $17,341 in FY2004 and $17, 341 in FY2005.

Ms. Hollis has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering these sections will be an increased awareness by students and families of the existence and benefits of participating in individual development accounts to help finance higher education. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P. O. Box 12788, Austin, Texas 78711-2788, or by e-mail to lois.hollis@thecb.state.tx.us.

The new rules are proposed under the Texas Education Code, §61.0816, which authorizes the Board to establish and administer a program to provide student financial aid offices at public community colleges with information and other assistance to enable those offices to provide appropriate students of those colleges with information and referrals regarding the availability of and services offered by individual development account programs.

The new rules affect Texas Education Code, Subchapter C, Chapter 61, §61.0816.

§22.280.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter C, Chapter 61, §61.0816, Individual Development Account Information Program.

(b) Purpose. The purpose of these rules is to set forth the applicable reporting requirements of institutions that participate in Individual Development Account Information Programs to increase the awareness of students and families of the existence and benefits of participating in individual development accounts in the hope that more of them will take advantage of such programs to help finance their higher education.

§22.281.Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Board--The Texas Higher Education Coordinating Board.

(2) Individual Development Account Information Program--A savings account program designed to help low-income students, while enrolled in public community colleges, acquire the funds needed to continue their education and attain bachelor’s degrees.

(3) Eligible institution--All public community colleges.

§22.282.Reporting Requirements.

Eligible institutions participating in the program shall report, at least on an annual basis:

(1) efforts made to counsel students and families regarding the existence of Individual Development Accounts and

(2) the number of Individual Development Account information brochures they have distributed to students and families.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State on July 29, 2003.

TRD-200304588

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 30, 2003

For further information, please call: (512) 427-6114