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 §4.3

The Texas Higher Education Coordinating Board proposes an amendment to §4.3 of Board rules, concerning the definition for a new type of degree program. Specifically, this amendment will add the Associate of Arts in Teaching to the list of approved degree titles. The amendment also specifies that only a Board-approved degree program should receive this degree title.

Dr. Glenda 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 implications 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 easier identification of degree programs that are designed to transfer into baccalaureate programs that lead to initial Texas teacher certification. 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 Dr. Julie Leidig, P.O. Box 12788, Austin, Texas 78711, Julie.Leidig@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendment is proposed under the Texas Education Code, §§61.003, 61.051(e) - (f), 61.0513, 61.053, 61.054, 61.055, 61.061, 61.062(c) - (d), 61.075, 130.001(b)(3) - (4), 130.003(e)(1)(2)(3) and (7) and 135.04), which provide the Coordinating Board with the authority to review degree and certificate programs offered by the public institutions of higher education to assure that they meet the present and future needs of the state.

The amendment affects §§61.003, 61.051(e) - (f), 61.0513, 61.053, 61.054, 61.055, 61.061, 61.062(c) - (d), 61.075, 130.001(b)(3) - (4), 130.003(e)(1)(2)(3) and (7) and 135.04) of the Texas Education Code.

§4.3.Definitions.

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

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

(3) Associate of Arts in Teaching degree--Board-approved collegiate degree programs consisting of lower-division courses intended for transfer to baccalaureate programs that lead to initial Texas teacher certification.

(4) [ (3) ] Bachelor of General Studies degree--a program designed principally for mature students who seek a flexible degree program and who do not desire or may not meet prerequisites of a highly structured traditional degree program, and to permit students to plan, with advisement, an individualized program with access to a wide range of academic disciplines and fields of professional study.

(5) [ (4) ] Bachelor of Applied Arts and Sciences degree--a program designed to provide a path to a bachelor's degree for students who have earned previous collegiate credit through workforce education curricula. The degree program combines general education requirements and a professional component designed to complement the student's technical or vocational competence.

(6) [ (5) ] Board--The Texas Higher Education Coordinating Board.

(7) [ (6) ] Commissioner--The Commissioner of Higher Education.

(8) [ (7) ] Common calendar--dates and information pertaining to the beginning and ending (and lengths) of academic semesters and sessions, applicable to all Texas public universities and community, technical and state colleges.

(9) [ (8) ] Consulting or testifying expert witness--any non-fact witness whose name must be disclosed during litigation as required by the Texas Rules of Civil Procedure.

(10) [ (9) ] Degree program--any grouping of subject matter courses which, when satisfactorily completed by a student, will entitle the student to a degree from an institution of higher education.

(11) [ (10) ] Faculty or professional staff of an institution of higher education--a non-classified, full-time employee who is a member of the faculty or staff and whose duties include teaching, research, administration or performing professional services, including professional library services.

(12) [ (11) ] Fiscal year--the State of Texas' fiscal year, September 1 through August 31.

(13) [ (12) ] 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.

(14) [ (13) ] Interdisciplinary baccalaureate degrees--the Bachelor of General Studies degree (defined in paragraph (4) of this section) and such general degrees as liberal arts or humanities. These broad-based degrees vary in the amount of prescriptive structure but share the characteristics of flexibility for the student and interdisciplinary course selection.

(15) [ (14) ] Non-classified--an employee whose position is not controlled by the institution's classified personnel system or a person employed in a similar position if the institution does not have a classified personnel system.

(16) [ (15) ] Religious holy day--A holy day observed by a religion whose places of worship are exempt from property taxation under the Texas Tax Code, §11.20.

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 April 29, 2004.

TRD-200402873

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Chapter 5. RULES APPLYING TO PUBLIC UNIVERSITIES AND/OR HEALTH-RELATED INSTITUTIONS OF HIGHER EDUCATION IN TEXAS

Subchapter D. OPERATION OF OFF-CAMPUS EDUCATIONAL UNITS OF PUBLIC SENIOR COLLEGES, UNIVERSITIES AND HEALTH-RELATED INSTITUTIONS

19 TAC §5.73, §5.78,

The Texas Higher Education Coordinating Board proposes amendments to §5.73 and §5.78, concerning student enrollments to be counted toward the enrollment thresholds of the Higher Education Supply/Demand Pathway model. Specifically, the amendments specify which upper-division and graduate semester credit hours (SCH) generated at or by Pathway Education Centers are eligible for inclusion toward the thresholds for the Supply/Demand Pathway. The thresholds are stated in terms of full-time student equivalents (FTSE). The proposed rule will ensure that the standards used for determine eligible SCHs are known and are uniformly applied.

Dr. Marshall A. Hill, Assistant Commissioner for Universities and Health-Related Institutions, 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. Hill 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 the improved organization and clarity of rules affecting public institutions of higher education. 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 rules may be submitted to 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. Comments will be accepted for 30 days following publication of the proposed rules in the Texas Register .

The amendments are proposed under the Texas Education Code, §61.027, which provides the Coordinating Board with general rule-making authority; §61.002, which establishes the Coordinating Board as an agency charged to provide leadership and coordination for the Texas higher education system; §61.051, which provides the Coordinating Board with authority to coordinate institutions of public higher education in promoting quality education; and §61.0651, which charges the Board to adopt and recommend management policies applicable to institutions of higher education in relation to management of human resources and physical plants.

The amendments affect Texas Education Code, §61.002; TEC, §61.051; and TEC, §61.0651.

§5.73.Definitions.

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

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

(11) Pathway Education Center (PEC) --A higher education center that is on the Supply/Demand Pathway.

(12) - (14) (No change.)

(15) Supply/Demand Pathway (SDP) --The Supply/Demand Pathway is a developmental approach to providing access which allows for the gradual increase of resources as demand grows, operating under the principle of avoiding over-commitment as well as under-commitment of state resources.

(16) (No change.)

(17) University System Center (USC) --A higher education center administered by a university system or individual institution in a system. It has minimal administration and locally provided facilities.

§5.78.Supply/Demand Pathway.

(a) - (b) (No change.)

(c) The supply/demand pathway consists of three categories:

(1) (No change.)

(2) Category B. As demand increases, offerings may be organized through a multi-institution teaching center or as a university system center as a Pathway Education Center. A group of institutions may request that the Board authorize the establishment of a MITC. Alternatively, a university system may request that the Board authorize the establishment of a university system center. In either case, a lead institution shall [ should ] be designated to provide leadership for the center and facilitate the provision of programs and resources from other institutions.

(3) (No change.)

(d) Counting. The following general criteria and standards will be used to determine enrollments applicable to the Supply/Demand Pathway thresholds. [ Reporting. Institutions will report enrollments at centers on the pathway and all off-campus educational units according to guidelines set up by the Commissioner. For the purpose of establishing the need for a new institution of higher education and meeting the enrollment threshold of 3,500 FTE students established in paragraph (3) of this section, internet-based courses and other courses offered in non-traditional formats that do not require the physical presence of the student at the center for a normal number of contact hours will not generally be counted. Exceptions to this general rule may be allowed if prior agreements are made with the Commissioner, but such exceptions will generally only be made for courses that are substantially supported from the center and represent a significant on-going educational need that can most effectively be served from the center. ]

(1) Upper-division and graduate semester credit hours generated in academic courses delivered by the parent universities or by other institutions to on-site students at a Pathway Education Center (PEC) shall be counted towards the relevant Supply/Demand Pathway (SDP) threshold.

(2) Upper-division and graduate semester credit hours generated in academic courses delivered electronically to students on-site at a Pathway Education Center shall be counted towards the SDP threshold. For interactive video courses that originate at a PEC, only students taking the course at the PEC shall be counted.

(3) Upper-division and graduate semester credit hours generated in academic Internet-based courses and other courses offered in non-traditional formats that do not require the physical presence of the student at a PEC for a normal number of contact hours shall not be counted.

(4) Lower-division semester credit hours generated in academic courses offered at PECs shall not be counted towards the thresholds.

(5) Enrollments in extension courses, continuing education and non-formula funded courses shall not be counted towards the thresholds.

(6) Semester credit hours generated in courses that do not receive formula funding (e.g., military science, theology and religious vocations, some basic skills, personal awareness) shall not be counted toward the thresholds.

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 April 29, 2004.

TRD-200402874

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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 of Board rules, concerning the Nursing, Allied Health and Other Health-related Education Grant Program. Specifically, these amendments allow oral presentations on applications to be considered in making funding decisions and specify minimum and maximum awards for any fiscal year within the three-year grant period.

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

Dr. Hill has also determined that for each year of the first five years this section is in effect, the public benefit anticipated as a result of administering this section will be the improved organization and clarity of rules affecting public institutions of higher education. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

Comments on the proposed rule may be submitted to 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. Comments will be accepted for 30 days following publication of the proposed rules in the Texas Register .

The amendments are proposed under the Texas Education Code, §61.027, which provides the Board with general rule-making authority; and Texas Education Code, §63.202(c), which provides the Board with the authority to adopt rules for the Tobacco Settlement Funds Program.

The amendments affect Texas Education Code, §63.202(c).

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

(a) - (b) (No change.)

(c) Application and Review Process.

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

(4) Board staff shall rank each application based on points assigned by peer reviewers, and then may request that individuals representing the most highly-ranked applications make oral presentations on their applications to the peer reviewers and Board staff. The Board staff may consider reviewer comments from the oral presentations in recommending [ recommend ] a priority ranked list of applications to the Commissioner for approval.

(d) - (g) (No change.)

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

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

(3) In subsections (a)(5), (a)(8), (a)(9), (a)(10) and (b)(4), of this section, the following pertain to subsection (h)(1)(A) of this section:

(A) (No change.)

(B) Minimum award - Minimum award is $10,000 per award in any fiscal year for a two-year or three-year grant.

(C) Maximum award - Maximum award is $150,000 per award in any fiscal year for a two-year grant and $750,000 per award in any fiscal year for a three year grant .

(D) Maximum award length - A program is eligible to receive funding for up to three years, contingent upon evaluation of the progress and effectiveness of the program after one year of funding.

(E) [ (D) ] Peer review award criteria and weights may be adjusted to best fulfill the purpose of the grant 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 April 29, 2004.

TRD-200402875

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Chapter 14. RESEARCH FUNDING PROGRAMS

Subchapter A. GENERAL PROVISIONS

19 TAC §14.1

The Texas Higher Education Coordinating Board proposes an amendment to §14.1, concerning the administration of the research funding programs including Advanced Research Program, Advanced Technology Program, and Technology Development and Transfer Program. Specifically, §14.1(10) is amended to include a collaborating investigator in the definition of "investigator."

Dr. Linda Domelsmith, Director of Research 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 rule.

Dr. Domelsmith 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 development and growth of technology and related industries in 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 Dr. Linda Domelsmith, P. O. Box 12788, Austin, Texas 78711, e-mail Linda.domelsmith@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendment is proposed under Texas Education Code, §142.003 and §143.004 which provides the Coordinating Board with the authority to administer Advanced Research Program and Advanced Technology Program.

The amendment affects Texas Education Code, Chapters 142 and 143.

§14.1.Definitions.

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

(1) - (9) (No change.)

(10) Investigator--an applicant whose name appears as a principal investigator, [ or ] co-principal investigator, or collaborating investigator on a pre-proposal or proposal submitted for any of the research funding programs.

(11) (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 April 29, 2004.

TRD-200402870

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter E. PROCEDURAL ADMINISTRATION OF THE RESEARCH FUNDING PROGRAMS

19 TAC §14.74, §14.78

The Texas Higher Education Coordinating Board proposes amendments to §14.74 and §14.78, concerning the administration of the research funding programs including Advanced Research Program, Advanced Technology Program, and Technology Development and Transfer Program. Specifically, §14.74(c) is amended for clarity. Section 14.78(c) and 14.78(d) are amended to add the complete name of the external evaluation committee and to permit a member of that committee, other than the chair, to present the committee’s findings to the board. Specifically, this new chapter will provide the Coordinating Board the regulating guidelines that are fundamental for the successful administration of such research funding programs.

Dr. Linda Domelsmith, Director of Research 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. Domelsmith 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 the development and growth of technology and related industries 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 impact on local employment.

Comments on the proposal may be submitted to Linda Domelsmith, P. O. Box 12788, Austin, Texas 78711, e-mail Linda.domelsmith@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 Texas Education Code, §142.003 and §143.004 which provides the Coordinating Board with the authority to administer Advanced Research Program and Advanced Technology Program.

The amendments affect Texas Education Code, Chapters 142 and 143.

§14.74.Confidentiality.

(a) - (b) (No change.)

(c) Pre-proposals and proposals submitted by investigators or their institutions shall not be available to persons or entities other than the submitting investigators or their institutions at any time, except that the copies of the project summaries of awarded research projects [ project ] may be made available in a manner specified by the Coordinating Board.

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

§14.78.Merit Review.

(a) - (b) (No change.)

(c) The external evaluation committee will meet in Austin to discuss the research funding programs with representatives of the State government, institutional research offices, investigators, industry, the Advisory Committee, and the Coordinating Board research staff.

(d) A member [ The chair ] of the external evaluation [ review ] committee will present the committee’s findings to the Coordinating 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 April 29, 2004.

TRD-200402871

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Chapter 17. CAMPUS PLANNING

Subchapter A. GENERAL PROVISIONS

19 TAC §§17.1 - 17.7

(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 §§17.1 - 17.7 concerning the general rule provisions for Campus Planning. Specifically, the rules proposed for repeal cover a wide variety of topics. To provide better organization and to increase clarity, these rules are being reorganized into several new chapters being proposed contemporaneously in this issue of the Texas Register .

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The repeal is proposed under the Texas Education Code, §61.027, which provides the Coordinating Board with the authority to adopt rules.

The repeal affects the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.1.Authority, Scope, and Purpose.

§17.2.Definitions.

§17.3.Governing Board Approval Required.

§17.4.Delegation of Authority.

§17.5.Application Procedures.

§17.6.Coordinating Board Standards.

§17.7.Intercollegiate Athletic Funded Projects.

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 May 3, 2004.

TRD-200402981

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter B. NEW CONSTRUCTION AND REPAIR AND REHABILITATION PROJECTS

19 TAC §17.10, §17.11

(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 §§17.10 - 17.11 of Board rules concerning new construction and repair and rehabilitation projects. Specifically, the rules proposed for repeal cover a variety of topics related to new construction and repair and rehabilitation projects. To provide better organization and to increase clarity, these rules are being reorganized into several new chapters being proposed contemporaneously in this issue of the Texas Register .

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The repeal is proposed under the Texas Education Code, §61.027, which provides the Coordinating Board with the authority to adopt rules.

The repeal affects the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.10.Evaluation Considerations.

§17.11.Time Limit on Approval.

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 May 3, 2004.

TRD-200402982

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter C. REAL PROPERTY ACQUISITION PROJECTS

19 TAC §§17.20 - 17.24

(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 §§17.20 - 17.24 of Board rules concerning real property acquisition projects. Specifically, the rules proposed for repeal cover a variety of topics related to real property acquisition projects. To provide better organization and to increase clarity, these rules are being reorganized into several new chapters being proposed contemporaneously in this issue of the Texas Register .

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The repeal is proposed under the Texas Education Code, §61.027, which provides the Coordinating Board with the authority to adopt rules.

The repeal affects the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.20.Additional Application Materials Required.

§17.21.Emergency Requests.

§17.22.Time Limit on Approval.

§17.23.Property Acquisitions not Approved.

§17.24.Eminent Domain.

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 May 3, 2004.

TRD-200402983

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter D. LEASED SPACE

19 TAC §17.30, §17.31

(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 §§17.30 - 17.31 of Board rules concerning leased space. Specifically, the rules proposed for repeal cover a variety of topics related to leased space. To provide better organization and to increase clarity, these rules are being reorganized into several new chapters being proposed contemporaneously in this issue of the Texas Register .

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The repeal is proposed under the Texas Education Code, §61.027, which provides the Coordinating Board with the authority to adopt rules.

The repeal affects the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.30.Limitations.

§17.31.Evaluation Considerations.

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 May 3, 2004.

TRD-200402984

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter E. INSTITUTIONAL REPORTING

19 TAC §§17.40 - 17.42

(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 §§17.40 - 17.42 of Board rules concerning institutional reporting, space utilization, and space projection models. Specifically, the rules proposed for repeal cover a variety of topics related to institutional reporting, space utilization, and space projection models. To provide better organization and to increase clarity, these rules are being reorganized into several new chapters being proposed contemporaneously in this issue of the Texas Register .

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The repeal is proposed under the Texas Education Code, §61.027, which provides the Coordinating Board with the authority to adopt rules.

The repeal affects the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.40.Required Reports.

§17.41.Space Utilization.

§17.42.Space Projection Models.

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 May 3, 2004.

TRD-200402985

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter A. GENERAL PROVISIONS

19 TAC §§17.1 - 17.3

The Texas Higher Education Coordinating Board proposes new §§17.1 through 17.3 concerning the general rule provisions for Campus Planning. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions of Board approval or disapproval of construction projects, property acquisitions, or lease-purchase arrangements; assuring maximum use of facilities; and developing standards and policies for management of physical plants designed to streamline operations and improve accountability. Significant additions and changes are indicated as follows: §17.1 (Purpose and Scope) defines the purpose for these rules. There is no change recommended from the current rules. It also defines the application of these rules to all public general academic institutions, Texas State Technical Colleges, Lamar State Colleges, and health-related institutions as defined in §61.058, Texas Education Code, except community colleges. Section 17.2 (Authority) states the authority for this title and that these rules establish and enforce standards to assure the efficient use of construction funds, and provide for the orderly development of physical plants to accommodate projected college student enrollments. Section 17.3 (Definitions) adds new definitions, and the language has been edited for consistency.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.1.Purpose and Scope.

The purpose of this chapter is to provide guidance to the public and to public institutions of higher education regarding approval or disapproval of construction projects, property acquisitions, or lease-purchase arrangements; assuring maximum use of facilities; developing standards and policies for management of physical plants designed to streamline operations and improve accountability; and to achieve the goals of the higher education plan approved by the Board.

§17.2.Authority.

Texas Education Code, §61.0572, requires the Board to assure the efficient use of construction funds and the orderly development of physical plants to accommodate projected college student enrollments. Texas Education Code, §61.058, authorizes the Board to approve or disapprove all new construction and repair and rehabilitation of buildings and facilities at institutions. Texas Education Code, §61.0582, requires that each institution submit a campus master plan to the Board, and Texas Education Code, §61.0583, requires the Board to conduct a comprehensive audit of all educational and general facilities. Texas Education Code, §51.927, authorizes the Board to establish guidelines and an approval process for awarding energy savings performance contracts.

§17.3.Definitions.

The following words and terms shall have the following meanings, unless the context clearly indicates otherwise.

(1) Acquisition--To come into possession or control of real property or facilities. This includes the acceptance, purchase, lease-purchase, sale, transfer, or exchange of land or facilities.

(2) Academic Facilities--Facilities used for primary instruction, research, and public service functions of the institution. Typical academic facilities include classrooms, libraries, administrative and faculty offices, and student and research laboratories.

(3) Addition--Expansion or extension of an existing facility that increases its size or capacity.

(4) Assignable Area of a Building--The sum of all areas within the interior walls of rooms on all floors of a building assigned to, or available for assignment to, an occupant or use, excluding unassigned space. This is also referred to as net assignable square feet (NASF).

(5) Athletic Facilities--Facilities used for athletic programs, including intercollegiate athletics, intramural athletics, and athletically-oriented academic programs.

(6) Auxiliary Enterprise Buildings or Space-Income-generating structures and space such as dormitories, cafeterias, student union buildings, stadiums, athletic facilities, housing or boarding facilities used by a fraternity, sorority, or private club, and alumni centers used solely for those purposes. Auxiliary space is not supported by State appropriations.

(7) Board or Coordinating Board--The Texas Higher Education Coordinating Board members and the agency.

(8) Building--A structure with at least two walls for permanent or temporary shelter of persons, animals (excluding animal caging equipment), plants, materials, or equipment that is attached to a foundation, roofed, serviced by a utility (exclusive of lighting), is a source of maintenance and repair activities, and is under the control or jurisdiction of the institution’s governing board, regardless of its location.

(9) Campus Deferred Maintenance Plan (MP2)--A detailed report of institutional programs to address deferred maintenance and critical deferred maintenance.

(10) Campus Master Plan--A detailed audit of institutional physical plant needs, including facilities construction and/or development, and campus facilities infrastructure; the plan provides long-range and strategic analyses and facilities development guidelines.

(11) Certification--Institutional attestation of reports or other submissions as being true or as represented.

(12) Classroom--A room used for scheduled classes. These rooms may be called lecture rooms, lecture-demonstration rooms, seminar rooms, or general purpose classrooms. A classroom may contain multimedia or telecommunications equipment, such as those used for distance learning. A classroom may be furnished with special equipment (e.g., globes, maps, pianos) appropriate to a specific area of study. A classroom does not include conference rooms, meeting rooms, auditoriums, or class laboratories.

(13) Class Laboratory--A room used primarily by regularly scheduled classes that require special-purpose equipment for student participation, experimentation, observation, or practice in a field of study. Class laboratories may be referred to as teaching laboratories, instructional shops, computer laboratories, drafting rooms, band rooms, choral rooms, group studios. Laboratories that serve as individual or independent study rooms are not included.

(14) Clinical Facility--A facility often associated with a hospital or medical school that is devoted to the diagnosis and care of patients in the instruction of health professions and allied health professions; medical instruction may be conducted, and patients may be examined and discussed. Clinical facilities include, but are not limited to, patient examination rooms, testing rooms, and consultation rooms.

(15) Committee on Campus Planning--The members of the Board appointed to consider facility-related issues.

(16) Commissioner--The chief executive officer of the Texas Higher Education Coordinating Board.

(17) Critical Deferred Maintenance--The physical conditions of a building or facility that places its occupants at risk of harm or the facility at risk of not fulfilling its functions.

(18) Deferred Maintenance--An existing or imminent building maintenance-related deficiency from prior years or the current year that needs to be corrected, or scheduled preventive maintenance tasks that were not performed because other tasks funded within the budget were perceived to have higher priority status. The accumulation of facility components in need of repair brought about by age, use, or damage for which remedies are postponed or considered backlogged. This may include those repairs postponed due to insufficient funding.

(19) Diagnostic Support Laboratory-the central diagnostic service area for a health care facility. Included are pathology laboratories, pharmacy laboratories, autopsy rooms, isotope rooms, etc., providing such services as hematology, tissue chemistry, bacteriology, serology, blood banks, and basal metabolism. In veterinary facilities, this includes necropsy rooms.

(20) Education and General (E&G)--Space used for teaching, research, or the preservation of knowledge, including the proportional share used for those activities in any building or facility used jointly with auxiliary enterprise, or space that is permanently unassigned. E&G space is supported by state appropriations.

(21) Emergency--An unforeseen combination of circumstances that calls for immediate action and requires an urgent need for assistance or relief that, if not taken, would result in an unacceptable cost to the state; or, an urgent need for assistance or relief due to a nature disaster; or, an unavoidable circumstance whereby the delay of the project approval would critically impair the institution’s function.

(22) Eminent Domain--A legal process wherein the institution takes private property for public use.

(23) Energy Systems--Infrastructure in a building that includes facility electric, gas, heating, ventilation, air conditioning, and water systems.

(24) Energy Savings Performance Contract--A contract for energy or water conservation measures to reduce energy or water consumption or operating costs of institutional facilities. The estimated savings in utility costs resulting from the conservation measures is guaranteed to offset the cost of the measures over a specified period.

(25) Facilities Audit--Comprehensive review of institutional facility development, planning activities, and reports.

(26) Facilities Inventory--A collection of building and room records that reflects institutional space and how it is being used. The records contain codes that are uniformly defined by the Board and the United States Department of Education and reported by the institutions on an ongoing basis to reflect a current facilities inventory. The facilities inventory includes a record of property owned by or under the control of the institution.

(27) Facilities Development Plan (MP1)--A detailed formulation of institutional programs to address deferred maintenance, critical deferred maintenance, facilities construction, or physical plant development.

(28) Financing Directly Derived from Students--Funds resulting from the collection of fees or other charges to students, such as designated tuition, student activities fees, housing revenue, bookstore or student union revenue, etc. Bond proceeds for which one or more of these sources provides debt service shall also be considered financing directly derived from students.

(29) Financing Indirectly Derived from Students--Funds generated from funds accumulated from students, primarily interest on funds accumulated directly from students.

(30) Gift-A donation or bequest of money or another tangible item, a pledge of a contribution, or the acquisition of real property or facilities at no cost to the state or to the institution. It may also represent a method of finance for a project.

(31) Gross Square Feet (GSF)--The sum of all square feet of floor areas within the outside faces of a building's exterior walls. This includes the areas, finished and unfinished, on all floors of an enclosed structure, i.e., within the environmentally controlled envelope, for all stories or areas which have floor surfaces.

(32) Housing Facility--A single- or multi-family residence used exclusively for housing or boarding students, faculty, or staff members.

(33) Information Resource Project--Projects related to the purchase or lease-purchase of computer equipment, purchase of computer software, purchase or lease-purchase of telephones, telephone systems, and other telecommunications and video-teleconferencing equipment.

(34) Intercollegiate Athletic Facility--Any facility used primarily to support intercollegiate athletics, including stadiums, arenas, multi-purpose centers, playing fields, locker rooms, coaches’ offices, and similar facilities.

(35) Infrastructure--The underlying foundation or basic framework of a building or facility, including but not limited to, plumbing, heating/ventilation/air conditioning, electrical, sewage, drainage, architectural, safety and Code compliance, roads, grounds, and landscaping.

(36) Institution or institution of higher education--A Texas public institution of higher education as defined in Texas Education Code, §61.003(8), except a community/junior college.

(37) Legislative Authority--Specific statutory authorization.

(38) Lease--A contract by which real estate, equipment, or facilities are conveyed for a specified term and for a specified rent. Includes the transfer of the right to possession and use of goods for a term in return for consideration. Unless the context clearly indicates otherwise, the term includes a sublease.

(39) Lease-Purchase--A lease project that includes the acquisition of real property by sale, mortgage, security interest, pledge, gift, or any other voluntary transaction at some future time.

(40) Net Assignable Square Feet (NASF)--The sum of all areas within the interior walls of rooms on all floors of a building assigned to, or available for assignment to, an occupant or use, excluding unassigned areas. NASF includes auxiliary space and E&G space.

(41) New Construction--The creation of a new building or facility, the addition to an existing building or facility, or new infrastructure that does not currently exist on campus. New construction would add square footage to an institution's existing space.

(42) Non-student Sources--Funds generated from athletic department operations, gifts and grants, facility usage fees, related revenue, and appropriated funds.

(43) NCAA Football Bowl Championship Series--A program of the NCAA under which certain NCAA Division I-A football universities share proceeds of college bowl games.

(44) Phased Project--A project that has more than one part, each one having fixed beginning and ending dates, specified cost estimates, and scope. Phased projects consider future phase needs in the project plan; each phase is able to stand alone as an individual project.

(45) Private Funding--Gifts, grants, or other funds to be used for facilities development projects that are provided by persons or entities other than the university or institution requesting consideration of the project.

(46) Project--A task or activity that includes the construction, repair, renovation, addition, alteration of a building or facility or its infrastructure, or the acquisition of real property.

(47) Real Property--Land with or without improvements such as buildings.

(48) Repair and Renovation (R&R)--Construction upgrades to an existing building, facility, or infrastructure that currently exists on campus; this includes the finish-out of shell space. R&R may add E&G space, but does not increase a building or facility's overall gross square footage.

(49) Replacement Value--The value of an institution’s overall campus facilities, as determined annually by the Board. The method of calculation is based upon recently approved Board project costs, with adjustments based upon room types and the institution’s location within the state. Replacement values for public universities, the Lamar State Colleges, and the Texas State Technical Colleges are calculated only for E&G space. Replacement values for public health-related institutions are calculated for the NASF space. Replacement values are used to measure the validity of construction projects that are submitted to the Board for approval and are not recommended for insurance purposes.

(50) Research Facility--A facility used primarily for experimentation, investigation, or training in research methods, professional research and observation, or a structured creative activity within a specific program. Included are laboratories used for experiments or testing in support of instructional, research, or public service activities.

(51) Shell Space--An area within a building with an unfinished interior designed to be converted into usable space at a later date.

(52) Space Need--The result of the comparison of an institution’s actual space to the predicted need as calculated by the Board’s Space Projection Model.

(53) Standard--Basis, criteria, or benchmark used for evaluating the merits of a project request or an institutional comparison to a benchmark.

(54) Tracking Report--Institutional reports indicating the status of approved projects.

(55) Tuition Revenue Bonds Project--A project for which an institution has legislative authority to finance a construction or land acquisition project as provided for in Texas Education Code, §§55.01- 55.25.

(56) Unimproved Real Property--Real property on which there are no buildings or facilities.

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 May 3, 2004.

TRD-200402969

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter B. BOARD APPROVAL

19 TAC §§17.10 - 17.14

The Texas Higher Education Coordinating Board proposes new §§17.10 - 17.14 concerning Campus Planning, Board Approval. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the provisions of Board approval or disapproval of construction projects, property acquisitions, or lease-purchase arrangements; assuring maximum use of facilities; and developing standards and policies for management of physical plants designed to streamline operations and improve accountability. Significant additions and changes are indicated as follows: §17.10 clarifies that the following types of projects require Board approval: new construction of buildings and facilities and/or additions to buildings and facilities; repair and renovation projects for buildings and facilities; unimproved and improved real property purchases; improved real property acquired by gift or lease-purchase if the institution intends to include the improved real property in its E&G buildings and facilities inventory and the value of the improved property is more than $300,000; auxiliary enterprise projects; intercollegiate athletic projects; and Energy Savings Performance Contract projects. This section also clarifies the process for notification in the event that a facilities development project not approved by the Board has been developed by the institution. Section 17.11 clarifies that the following types of projects are exempt from Board approval: new construction and addition projects costing less than $1 million; repair and renovation projects costing less than $2 million; Projects at The University of Texas at Austin, Texas A&M University, and Prairie View A&M University financed more than 50 percent with Permanent University Fund bond proceeds or Available University Fund funds; Construction, repair, or rehabilitation of privately owned buildings and facilities on land leased from an institution if the construction, repair, or rehabilitation is financed entirely from funds not under the control of the institution; Gifts, grants, or lease-purchase arrangements intended for clinical or research facilities; New construction or major repair and rehabilitation projects specifically approved by the legislature; Gifts or lease-purchase of unimproved real property; and Gifts or lease-purchase of improved real property that the institution does not intend to include in its E&G buildings and facilities inventory. Board approval is required prior to inclusion of previously accepted E&G space in the institution's facilities inventory. Section 17.12 (Delegation of Approval Authority) provides for the delegation of approval authority from the Board to the Commissioner and the Committee on Campus Planning. The change in this section clarifies the approval authority for gifts or acquisition of improved real property and provides for approval of emergency requests. Section 17.13 (Approval Considerations) provides clarification of factors the Board or its delegates shall consider for campus development projects. This section requires appropriate governing board approval prior to submission to the Board for approval and clarifies the submission of unrelated projects in a single application. Additionally, this section identifies the criteria the project must consider, including the Board standards, gifts or donations, increases in student fees, consideration of privatization for auxiliary projects, compliance with other state and federal standards, inclusion in the institutions long-range master plan and reports to the Board, and compliance with HUB subcontracting requirements. This section also requires verification that the project complies with energy efficiency requirements and consideration of Energy Savings Performance Contract as a viable alternative. Section 17.14 (Re-approval Required) clarifies that re-approval consideration is required when changes in the project cause increases in cost or square footage or funding sources. It also clarifies that re-approval consideration is required if contracts or property purchases are not consummated within the specified time frames.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.10.Board Approval.

(a) Unless exempted from Board approval under the provisions of §17.11 of this title (relating to Projects Exempt from Board Approval), the Board shall approve or disapprove the following projects or phase of a project at institutions of higher education, regardless of funding source:

(1) New construction of building and facilities and/or additions to buildings and facilities;

(2) Repair and renovation projects for buildings and facilities;

(3) Unimproved and improved real property purchases;

(4) Improved real property acquired by gift or lease-purchase if the institution intends to include the improved real property in its E&G buildings and facilities inventory and the value of the improved property is more than $300,000;

(5) Auxiliary enterprise projects;

(6) Intercollegiate Athletic projects; and

(7) Energy Savings Performance Contract projects.

(b) If an institution does not obtain Board approval for these projects, a notification of noncompliance shall be sent to the president of the institution by the Commissioner, requesting that a project application be submitted for consideration, and an explanation of the reason for not seeking Board approval for the project shall be included. A copy of the notification shall be provided to the Board members, chairman of the institution's governing board, Governor, Lieutenant Governor, Speaker of the House of Representatives, the State Auditor, and the Legislative Budget Board.

§17.11.Projects Exempt from Board Approval.

The following types of projects are exempt from Board approval:

(1) New construction projects costing less than $1 million;

(2) Repair and renovation projects costing less than $2 million;

(3) Projects at The University of Texas at Austin, Texas A&M University, and Prairie View A&M University financed more than 50 percent with Permanent University Fund bond proceeds or Available University Fund funds;

(4) Construction, repair, or rehabilitation of privately owned buildings and facilities on land leased from an institution if the construction, repair, or rehabilitation is financed entirely from funds not under the control of the institution;

(5) Gifts, grants, or lease-purchase arrangements intended for clinical or research facilities;

(6) New construction or repair and rehabilitation projects to be undertaken pursuant to specific legislative authority;

(7) Lease of property or facilities;

(8) Gifts or lease-purchase of unimproved real property; and

(9) Gifts or lease-purchase of improved real property that the institution does not intend to include in its E&G buildings and facilities inventory and the value of the improved real property is $300,000 or less.

§17.12.Delegation of Approval Authority.

(a) Commissioner. The Board authorizes the Commissioner to review or approve the following types of projects upon certification of authority by the proposing institution's governing board, providing the project meets all of the specified Board standards for that project type:

(1) New construction with a total project cost of not more than $5 million;

(2) Repair and renovation of existing buildings or facilities with a total project cost of not more than $5 million;

(3) Gifts or acquisition of improved real property with E&G space having a value of not more than $300,000;

(4) Purchase of real property having a value of not more than $300,000;

(5) Evaluation of projects funded more than 50 percent with tuition revenue bond proceeds that meet Board standards;

(6) Auxiliary enterprise projects being acquired, constructed, or renovated without the use of state general revenue funds and with a total project cost of not more than $10 million;

(7) Projects previously reviewed or approved by the Commissioner but requiring first or second reconsideration under the provisions of §17.14 of this title (relating to Re-approval of Projects), providing they continue to be eligible for Commissioner approval; and

(8) Projects previously reviewed or approved by the Board, Committee, or Commissioner that require reconsideration under the provisions of §17.14 of this title (relating to Re-approval of Projects) relating to any change in the funding source of an approved project; and

(9) Emergency requests eligible for Commissioner approval under the provisions of §17.22 of this title (relating to Emergency Approval of Projects).

(b) Committee on Campus Planning. The Board authorizes the Committee on Campus Planning to approve the following types of projects, upon certification of authority by the proposing institution's governing board:

(1) New construction projects having a total project cost more than $5 million but not more than $10 million;

(2) Repair and renovation of existing buildings or facilities having a total project cost of more than $5 million;

(3) Purchase of real property having a value more than $300,000 but not more than $5 million;

(4) Gifts or acquisition of improved real property with E&G space having a value more than $300,000 but not more than $5 million;

(5) Evaluation of projects funded more than 50 percent with tuition revenue bond proceeds and not qualifying for Commissioner approval;

(6) Auxiliary enterprise projects costing more than $10 million but more than $20 million;

(7) Projects previously approved but requiring re-approval under the provisions of §17.14 of this title (relating to Re-approval of Projects) and not eligible for re-approval by the Commissioner;

(8) Any new construction, major repair and renovation, or property acquisition submitted by a system that only affects the system, and not a component institution;

(9) Emergency requests eligible for Committee approval under the provisions of § 17.22 of this title (relating to Emergency Approval of Projects).

(10) Any project referred to the Committee on Campus Planning by the Commissioner; and

(11) Any project requiring a third re-approval under the provisions of §17.14 of this title (relating to Re-approval of Projects).

(c) Board. The following types of projects shall be approved by the Board:

(1) New construction with a total project cost of more than $10 million;

(2) Purchase of real property having a value of more than $5 million;

(3) Gifts or acquisition of improved real property with E&G space having a value of more than $5 million;

(4) Auxiliary enterprise projects costing more than $20 million; and

(5) Any project referred to the Board by the Committee on Campus Planning or the Commissioner.

(d) The Commissioner may refer projects to the Committee on Campus Planning or the Board. The Committee on Campus Planning may refer projects to the Board.

(e) Decisions of the Committee on Campus Planning are final. Decisions of the Commissioner may be appealed to the Board.

§17.13.Approval Considerations.

(a) The Board's consideration and determination shall be limited to the purpose for which the new or remodeled buildings are to be used to assure conformity with approved space utilization standards and the institution's approved programs, role, and mission.

(b) The Board shall consider the purpose for which the new or remodeled buildings are to be used, cost factors, and the financial implications of the project to the state.

(c) The Board shall consider the extent to which each of the standards outlined in §§17.30 - 17.51 of this title (relating to Rules Applying to New Construction and Addition Projects, Repair and Renovation Projects, and Real Property Acquisition Projects) have been met.

(d) The Board shall ascertain that standards and specifications for new construction or repair and rehabilitation of all buildings and facilities are in accordance with Texas Government code, §§469.001 - 469.105, concerning the elimination of architectural barriers.

§17.14.Re-approval of Projects.

(a) Previously approved construction and renovation projects shall be resubmitted to the Board for re-approval if:

(1) the total cost of a project exceeds cost estimates by more than 10 percent; or

(2) gross square footage is changed by more than 10 percent; or

(3) the institution has not contracted for the project within 18 months from its final Board approval date; or

(4) any funding source of an approved project is changed.

(b) Approvals for the purchase of real property are valid for two years from the date of Board approval. Property acquisitions not completed in that time shall be resubmitted.

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 May 3, 2004.

TRD-200402970

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter C. RULES APPLYING TO ALL PROJECTS

19 TAC §§17.20 - 17.22

The Texas Higher Education Coordinating Board proposes new §§17.20 - 17.22 concerning rules applying to all projects. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for Board and institutional reporting. Significant additions and changes are indicated as follows: §17.20 (Criteria for Approval of Projects) clarifies the criteria for project approval, including: the obligation of meeting the Board's standards; consideration of financing and source of funds for the project; consideration of alternatives and feasibility for privatization of both construction and operation of auxiliary facilities; consideration of the effect of property acquisitions on residential neighborhoods; consideration of inclusion of the project in the institutional Master Plan; and compliance with applicable state and federal regulations and rules. Section 17.21 (Application Procedures) provides instructions for submission of a project for consideration by the Board and the project submission schedule. Section 17.22 (Emergency Requests) is a new section providing that the Commissioner or the Committee on Campus Planning may act upon requests of an emergency nature between scheduled meetings of the Board. This section clarifies the application process, ratification by the Committee on Campus Planning, and the criteria for determining if the request is justified. In addition, this section would require that the President of the institution sign the request and that this authority may not be delegated within the institution.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.20.Criteria for Approval of Projects.

Projects considered for approval shall meet the following criteria:

(1) The project shall meet all applicable Board standards as described in §§17.30 - 17.51 of this title (relating to Rules Applying to New Construction and Addition Projects, Repair and Renovation Projects, and Real Property Acquisition Projects).

(2) If the project financing involves private gift or grant funds, these funds are either in-hand or the governing board shall commit an alternative source of funds, or if the private gift or grant funds are not received, the governing board agrees to forego the project.

(3) If the project causes an increase in student fees, such increases are executed in accordance with the applicable laws concerning approval by the student body.

(4) If the project involves construction of a dormitory, bookstore, food service facility, or other facility for which privatization may be a viable alternative, the governing board shall have considered the feasibility of privatization of both construction and operation of the facility.

(5) If applicable, the project complies with the minimum flood plain management standards established by the Texas Commission on Environmental Quality (TQEC) and the Federal Emergency Management Agency (FEMA).

(6) If the project includes the acquisition of real property, the governing board shall have given appropriate consideration to the effect of the acquisition on residential neighborhoods.

(7) If the project includes the acquisition of real property, the acquisition shall be included in the institution's long-range campus master plan.

(8) The project shall be included in the institution's most recently submitted Facilities Development Plan (MP1 report) or the institution shall certify that the project represents an opportunity or emergency that could not be foreseen.

(9) If applicable, the project complies with Texas Government Code, §§469.001 - 469.105, concerning the elimination of restrictive barriers.

(10) The project shall comply with Life Safety Standards adopted by the State Fire Marshal.

(11) The institution verifies that the project complies with Texas Government Code, §447.004, regarding energy efficiency and shall provide a Certificate of Compliance to the State Energy Conservation Office prior to occupancy. If the project involves energy savings or conservation, the governing board shall have considered the feasibility of an Energy Savings Performance Contract as a viable alternative.

(12) The institution shall verify that it will comply with Texas Government Code, §2161.252 - 2161.253, concerning Historically Underutilized Business Subcontracting Plans.

§17.21.Application Procedures.

(a) Institutions shall request Board consideration for approval of projects on forms specified by the Board. The project application shall be submitted electronically.

(b) Institutions shall submit the following materials for the consideration of projects by the Commissioner, Committee on Campus Planning, or Board:

(1) a completed project application submitted electronically through the Board's website;

(2) a signed Board of Regents Certification form certifying that the institution's Board of Regents has approved the project and that the project meets the criteria specified in §17.20 of this title (relating to Criteria for Approval of Projects);

(3) a signed verification of compliance with applicable state and or federal requirements, and

(4) any other documentation or information the institution believes will assist in the evaluation of the project.

(c) Project submission schedule:

(1) Projects to be considered by the Commissioner may be submitted at any time.

(2) Projects to be considered by the Committee on Campus Planning or the Board shall be submitted at least 70 days prior to the regularly scheduled Board meeting at which consideration is desired.

§17.22.Emergency Approval of Projects.

(a) An emergency project may be approved by the Commissioner or the Committee on Campus Planning between regularly scheduled meetings of the Board. If necessary to address the emergency, the Commissioner may approve emergency projects between regularly scheduled meetings of the Board in consultation with the Chair of the Committee on Campus Planning.

(b) If an emergency project is approved by the Commissioner, the project shall be reported to the next regularly scheduled Committee on Campus Planning meeting.

(c) Approval of each emergency project shall be signed by the president of the institution. The president of the institution may not delegate this authority within the requesting institution.

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 May 3, 2004.

TRD-200402971

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter D. RULES APPLYING TO NEW CONSTRUCTION AND ADDITION PROJECTS

19 TAC §17.30, §17.31

The Texas Higher Education Coordinating Board proposes new §§17.30 through 17.31 concerning new construction and addition projects. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for the consideration of new construction and addition projects. Significant additions and changes are indicated as follows: §17.30 (Board Standards) clarifies and defines the institutional and project standards set by the Board for new construction and addition projects. The new section requires that the institution meet standards for deferred maintenance and critical deferred maintenance. The new section also requires that the project meet standards for space need, cost, and efficiency. The proposed change would provide for variances from a single standard for efficiency to accommodate special or mixed-use facilities, office space, and diagnostic support laboratories. In addition, the proposed change would provide for variances in space need to accommodate consideration of future enrollment. Section 17.31 (Additional Requirements) specifies that space utilization guidelines for classrooms and class laboratories will be considered by the Board in its evaluation of new construction and/or addition projects.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research 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. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. 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 Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711 email: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.30.Standards for New Construction and/or Addition Projects.

To obtain Board approval for a new construction and/or addition project, an institution shall demonstrate that the project complies with the following standards:

(1) Institutional Standards. The institution shall demonstrate that a new construction and/or addition project complies with the following institutional standards:

(A) Deferred Maintenance.

(i) The Board standard for deferred maintenance shall be the ratio of campus deferred maintenance costs to replacement value of 5 percent or less.

(ii) If the ratio of campus deferred maintenance costs to replacement value is more than 5 percent, a project may be approved if the institution demonstrates that:

(I) the project is intended to reduce the deferred maintenance on the campus, or

(II) the institution has demonstrated a reduction in its deferred maintenance to replacement value ratio 10 percent or more for the immediate prior three years.

(iii) Alternatively, if the deferred maintenance to replacement value ratio is greater than 5 percent, a project may be approved if the institution:

(I) submits a written plan on a form specified by the Board for substantial progress toward meeting the standard; and

(II) provides the Board with a statement signed by the president of the institution, regarding its ability to support and maintain the proposed facility while continuing to address current institutional facility maintenance needs. The president of the institution may not delegate this authority.

(B) Critical Deferred Maintenance.

(i) The Board standard for critical deferred maintenance is zero.

(ii) If the critical deferred maintenance is greater than zero, a project may be approved if the institution:

(I) Develops an acceptable plan in place to address any critical deferred maintenance reported on the master plan; and

(II) the institution shall demonstrate progress towards meeting the plan goals; and

(III) the institution shall provide the Board with a statement signed by the president of the institution regarding its ability to support and maintain the proposed facility while continuing to address current institutional facility maintenance needs. The president of the institution may not delegate this authority.

(2) Project Standards. The institution shall demonstrate that a new construction or addition project complies with the following project standards:

(A) Space Need--The project shall not create a campus space surplus, or add to an existing surplus, as determined by the Board's space projection model report, required by § 17.100 of this title (relating to Board Reports).

(i) If the institution has a predicted surplus of space in the current Space Projection Model report and the project is required to accommodate future predicted enrollment growth, the Board may consider a written plan from the institution, on a form specified by the Board, for substantial progress toward meeting the standard. The plan must include:

(I) an explanation of the expected growth and how the predicted growth will impact the institution;

(II) a demonstration of progress towards eliminating the surplus;

(III) a statement regarding the ability of the institution to support and maintain the proposed facility while continuing to address current institutional facility needs; and

(IV) a demonstration that, upon completion of the project, the institution will comply with the Board standard and eliminate the space surplus.

(V) The plan shall be signed by the president of the institution. The president of the institution may not delegate this authority within the requesting institution.

(ii) If more than one project is submitted for an agenda, all projects submitted for the current agenda will be considered in the determination of a campus surplus or deficit.

(B) Cost--The construction building cost per gross square foot shall be within the range of similar projects approved by the Board within the last five years, adjusted for inflation as described in the board’s Construction Cost report (§17.100 of this title relating to Board Reports). If the construction cost per gross square foot exceeds the maximum cost of similarly approved projects, the cost per gross square foot shall not exceed the highest actual construction cost per gross square foot reported to R.S. Means.

(C) Efficiency--The ratio of NASF to GSF for the space in projects for classrooms and general purpose facilities shall be 0.60 or greater. Where the following specialized space is predominant in the project, the ratios of NASF to GSF shall be as follows:

(i) Office space: 0.65 or greater;

(ii) Diagnostic support laboratories: 0.50 or greater; and

(iii) For mixed-use facilities, the ratio of NASF to GSF shall be calculated for each space type and considered separately.

§17.31.Additional Requirements.

In addition to the consideration of the standards provided in §17.30 of this title (relating to Standards for New Construction and/or Addition Projects), the Board shall consider the following space utilization guidelines for classroom and/or class laboratories:

(1) For classrooms, 38 hours average weekly hours of use; and

(2) For class laboratories, 25 hours of average weekly hours of use.

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 May 3, 2004.

TRD-200402972

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter E. RULES APPLYING TO REPAIR AND RENOVATION PROJECTS

19 TAC §17.40, §17.41

The Texas Higher Education Coordinating Board proposes new §17.40 and §17.41, concerning repair and renovation projects. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for the consideration of repair and renovation projects. Significant additions and changes are indicated as follows: §17.40, Standards for Repair and Renovation Projects, clarifies the institutional and project standards for repair and renovation projects. The new section requires that the institution meet standards for deferred maintenance, critical deferred maintenance, and space utilization. The new section also requires that the project meet standards for space need, cost, and that the project would not reduce the existing ratio of assignable square feet to gross square feet for the building. Section 17.41, Additional Requirements, would require that projects for repair and renovation of energy systems consider Energy Savings Performance Contract and demonstrate to the Board that the presented alternative is in the best interest of the state.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the sections.

Dr. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.40.Standards for Repair and Renovation Projects.

To obtain Board approval for a repair or renovation project, an institution shall demonstrate that the project complies with the following standards:

(1) Institutional Standards. The institution shall demonstrate that a repair or renovation project complies with the standards required in §17.30(1) of this title (relating to Institutional Standards) and the additional requirements for space utilization described in §17.31 of this title (relating to Additional Requirement).

(2) Project Standards.

(A) Space Need and Cost--The institution shall demonstrate that the repair or renovation project complies with the standards required in §17.30(2)(A) and (B) of this title (relating to Space Need and Cost).

(B) Efficiency--The institution shall demonstrate that the project does not reduce the existing ratio of NASF to GSF for the building.

§17.41.Additional Requirements.

For projects for the repair and/or renovation of energy systems, an institution shall be required, in addition to the requirements of §17.21 of this title (relating to Application Procedures), to:

(1) award an Energy Savings Performance Contract; or

(2) demonstrate that an alternative to the use of an Energy Savings Performance Contract is in the best interest of the State.

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 May 3, 2004.

TRD-200402973

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter F. RULES APPLYING TO REAL PROPERTY ACQUISITION PROJECTS

19 TAC §§17.50 - 17.52

The Texas Higher Education Coordinating Board proposes new §§17.50 - 17.52, concerning real property acquisition projects. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for the consideration of real property acquisition projects. Significant additions and changes are indicated as follows: §17.50, Standards for Real Property Acquisition Projects, clarifies and defines the institutional and project standards set by the Board for real property projects. The new section requires that the institution meet standards for deferred maintenance, critical deferred maintenance, and space utilization; it also requires that the project meet standards for space need and cost. Section 17.51, Additional Requirements, would require that applications for real property projects include appropriate property appraisal reports estimating the market value of the real property and required appraiser credentials. Section 17.52, Eminent Domain, would provide that Board approval is required prior to commencement of eminent domain proceedings, that the institution shall provide evidence of efforts made to reach an agreement with the property's owner, and that the intuition must report the costs associated with eminent domain proceedings to the Board. This section removes the requirement for the institution to report estimated legal costs in the project application.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the sections.

Dr. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.50.Standards for Real Property Acquisition Projects.

To obtain Board approval for a real property acquisition project, an institution shall demonstrate that the project complies with the following standards:

(1) Space Need--The institution shall demonstrate that the real property project complies with the standards required in §17.30(2)(A) of this title (relating to Space Need).

(2) Cost--The proposed purchase price shall be within the two appraisal values.

(3) Repair and Renovation--If the project includes repair and renovation of any improvements on the property, the standards in §17.40(2) of this title (relating to Project Standards) shall apply.

§17.51.Additional Requirements.

(a) Appraisals.

(1) If the cost of the real property is $50,000 or more, an institution shall provide two appraisal reports providing a current value of the property. The most recent appraisal of the local property tax appraisal district may be used for one of these reports.

(2) If the cost of the real property is less than $50,000, an institution shall submit a brief description of the information that it has relied upon to determine the current market value or provide an appraisal report estimating the current market value of the property.

(b) Appraiser Credentials. Any appraisal report provided to the Board under this section shall certify that the appraiser(s) meets one of the following requirements:

(1) Is a senior member of the Appraisal Institute (M.A.I, S.R.P.A. and S.R.A.);

(2) Is a senior member of the American Society of Appraisers with the professional designation in real estate; or

(3) Is a senior member or appraiser-counselor of the National Association of Independent Fee Appraisers (designated I.F.A.S. or I.F.A.C.).

(c) The requirement for appraisals in no way obligates the institution to release the figures to property owners during the acquisition process, nor does the requirement of appraisals deny the institution the right to settle a purchase at a price below the appraisals.

(1) An institution may place the word "Confidential" on each appraisal submitted to the Board under this section.

(2) The Board shall refer any public request for an appraisal that is marked "Confidential" to the Office of the Attorney General and provide notice to the institution that a request for the appraisal has been made under the Public Information Act found in Texas Government Code, Chapter 552.

§17.52.Eminent Domain.

(a) Board approval for acquisitions in which eminent domain may be necessary shall be obtained prior to the commencement of eminent domain proceedings.

(b) The institution shall provide to the Board evidence of good faith efforts made to reach an agreement with the property's owner.

(c) Upon resolution, the institution shall promptly report to the Board the costs associated with the eminent domain proceedings. Re-approval of the project by the Board shall not be necessary unless the court establishes a purchase price 10 percent higher than that approved 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 May 3, 2004.

TRD-200402974

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter G. RULES APPLYING TO AUXILIARY ENTERPRISE PROJECTS

19 TAC §17.60

The Texas Higher Education Coordinating Board proposes new §17.60, concerning auxiliary enterprise projects. Specifically, this new section replaces existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new section assembles in one chapter, renumber, and clarify current Board rules regarding the general provisions for the consideration of auxiliary enterprise projects. Significant additions and changes are indicated as follows: §17.60, Standards for Auxiliary Enterprise Projects, clarifies and defines the institutional and project standards set by the Board for auxiliary enterprise projects. The new section requires that the project meet the associated standards for similar project types.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new section is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the section.

Dr. Greene has also determined that for each year of the first five years the new section is in effect, the public benefit anticipated as a result of administering the section will be more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new section affects the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.60.Standards for Auxiliary Enterprise Projects.

To obtain Board approval for an auxiliary enterprise project, an institution shall demonstrate that the project complies with the following standards:

(1) Institutional Standards. The institution shall demonstrate that an auxiliary enterprise project complies with the standards required in §17.30(1)(A) and (B) of this title (relating to Deferred Maintenance and Critical Deferred Maintenance).

(2) Project Standards. The following basic standards shall apply to all auxiliary enterprise projects considered by the Board, Committee on Campus Planning, or the Commissioner:

(A) New construction and/or Additions--New construction of or additions to Auxiliary Enterprise Projects shall be considered under the provisions of §17.30(2) of this title (relating to Project Standards).

(B) Repair and Renovation--Repair or renovation of Auxiliary Enterprise Projects shall be considered under the provisions of §17.40(2) of this title (relating to Project Standards) and §17.41 of this title (relating to Additional Requirements).

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 May 3, 2004.

TRD-200402975

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter H. RULES APPLYING TO INTERCOLLEGIATE ATHLETIC PROJECTS

19 TAC §17.70, §17.71

The Texas Higher Education Coordinating Board proposes new §17.70 and §17.71, concerning intercollegiate athletic projects. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for the consideration of intercollegiate athletic projects. Significant additions and changes are indicated as follows: §17.70, Standards Applying to Intercollegiate Athletic Projects, clarifies and defines the institutional and project standards set by the Board for intercollegiate athletic projects. The new section requires that the project meet the associated standards for similar project types. Section 17.71, Additional Requirements defines considerations and limitations on projects that support intercollegiate athletics. There is no change proposed in the provisions of this section.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the sections.

Dr. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.70.Standards Applying to Intercollegiate Athletic Projects.

To obtain Board approval for an intercollegiate athletic project, an institution must demonstrate that the project complies with the following standards:

(1) Institutional Standards. The institution shall demonstrate that an Intercollegiate Athletic Project complies with the standards required in §17.30(1)(A) and (B) of this title (relating to Deferred Maintenance and Critical Deferred Maintenance).

(2) Project Standards. The following basic standards shall apply to all Intercollegiate Athletic Projects considered by the Board, Committee on Campus Planning, or the Commissioner:

(A) New construction and/or Additions--New construction of or addition to an Intercollegiate Athletic Project shall be considered under the provisions of §17.30(2) of this title (relating to Project Standards).

(B) Repair and Renovation--Repair or renovation of an Intercollegiate Athletic Project shall be considered under the provisions of §17.40(2) of this title (relating to Project Standards) and §17.41 of this title (relating to Additional Requirements).

§17.71.Additional Requirements.

The following additional requirements shall be considered by the Board in evaluating projects that support intercollegiate athletics at Texas public universities:

(1) If a facility is used for both intercollegiate athletics and educational and general purposes, the cost of the facility shall be appropriately prorated.

(2) The use of student fees for financing construction projects that support intercollegiate athletics shall be limited to no more than 50 percent of the total project cost at Texas institutions that participate in the Bowl Championship Series and to 75 percent of the total project cost at other universities.

(3) For institutions participating in the NCAA Football Bowl Championship Series, Board approval of projects supporting intercollegiate athletics normally shall be conditional upon a finding that no more than 50 percent of the financing is derived, directly or indirectly, from students.

(4) For institutions not participating in the NCAA Football Bowl Championship Series, Board approval of projects supporting intercollegiate athletics shall normally be conditional upon a finding that no more than 75 percent of the financing is derived, directly or indirectly, from students.

(5) In making its findings, the Board may consider the total allocation of revenue supporting intercollegiate athletics.

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 May 3, 2004.

TRD-200402976

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter I. RULES APPLYING TO ENERGY SAVINGS PERFORMANCE CONTRACT PROJECTS

19 TAC §§17.80 - 17.82

The Texas Higher Education Coordinating Board proposes new §§17.80 - 17.82, concerning Energy Savings Performance Contract projects. Specifically, these new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for the consideration of Energy Savings Performance Contract projects. Significant changes are indicated as follows: §17.80, Projects Requiring Board Approval, clarifies that the Board shall approve or disapprove all Energy Savings Performance Contract projects and specifies that Energy Savings Performance Contract projects be considered under the provisions of §17.40 and §17.41 of this title. This section specifies the types of renovations to be included in Energy Savings Performance Contract projects. Section 17.81, Standards for Energy Savings Performance Contract projects clarifies that the institutional and project standards set by the Board for repair and renovation projects apply to Energy Savings Performance Contract projects. Section 17.82, Additional Requirements would require that applications for Energy Savings Performance Contract projects include specified certifications by a professional engineer licensed in the State of Texas. These certifications include compliance with applicable state, federal, and local statutes; inclusion of an energy assessment report and a calculation of energy savings as a direct result of the project; and a definition of the savings to be realized. Additionally, this section would require that institutions provide a copy of the signed Energy Savings Performance Contract within 30 days of the effective date of the contract.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the sections.

Dr. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, 61.0583, and 51.927.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.80.Projects Requiring Board Approval.

Board approval is required before an institution enters into an energy savings performance contract. Energy savings performance contracts include the installation or implementation of:

(1) insulation of a building structure and systems within a building;

(2) storm windows or doors, caulking or weather stripping, multi-glazed windows or doors, heat-absorbing or heat-reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption;

(3) automatic energy control systems, including computer software and technical data licenses;

(4) heating, ventilating, or air conditioning system modifications or replacements that reduce energy or water consumption;

(5) lighting fixtures that increase energy efficiency;

(6) energy recovery systems;

(7) electric systems improvements;

(8) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment;

(9) water-conserving landscape irrigation equipment;

(10) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including:

(A) landscape contouring, including the use of berms, swales, and terraces; and

(B) the use of soil amendments that increase the water-holding capacity of the soil, including compost;

(11) rainwater harvesting equipment and other equipment to make use of water collected as part of a storm-water system installed for water quality control;

(12) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent;

(13) equipment needed to capture water from non-conventional, alternate sources, including air conditioning condensate or graywater, for non-potable uses;

(14) metering equipment needed to segregate water use in order to identify water conservation opportunities or verify water savings; or

(15) other energy or water conservation-related improvements or equipment, including improvements or equipment related to renewable energy or non-conventional water sources or water reuse.

§17.81.Standards for Energy Savings Performance Contract Projects.

(a) Institutional Standards. The institution shall demonstrate that an Energy Savings Performance Contract project complies with the standards required in §17.30(1)(A) and (B) of this title (relating to Deferred Maintenance and Critical Deferred Maintenance).

(b) Project Standards. Energy Savings Performance Contract Projects shall be considered under the provisions of §17.40(2) of this title (relating to Project Standards) and §17.41 of this title (relating to Additional Requirements).

§17.82.Additional Requirements.

(a) In addition to those outlined in §17.21 of this title (relating to Application Procedures), a statement shall be included with the application, certified by a Professional Engineer licensed in the State of Texas who shall not be an officer or employee of the offeror for the contract, the institution seeking approval, or otherwise associated with the contract, that:

(1) the contract has been reviewed in accordance with the International Performance Measurement and Verification Protocol (IPMVP) and/or the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) Guidelines; and

(2) that the contract meets the following guidelines:

(A) The contract complies with any and all applicable federal, state and local statutes;

(B) The contract contains an energy audit report, a measurement and verification plan that documents current energy consumption, and a detailed calculation of energy savings as a direct result of the project;

(C) The savings achieved over the specified term is equal to or greater than the cost of the project; and

(D) The contract meets the guidelines specified in Texas Education Code, §51.927 (relating to Energy Savings Performance Contracts).

(b) The institution shall provide to the Board a copy of the signed contract within 30 days of the effective date of the contract.

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 May 3, 2004.

TRD-200402977

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter J. RULES APPLYING TO TUITION REVENUE BOND PROJECTS

19 TAC §17.90, §17.91

The Texas Higher Education Coordinating Board proposes new §17.90 and §17.91, concerning Tuition Revenue Bond projects. Specifically, these new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for the consideration of Tuition Revenue Bond projects. Significant changes are indicated as follows: §17.90, Standards for Tuition Revenue Bond Projects clarifies and defines the institutional and project standards set by the Board for Tuition Revenue Bond projects. The new section requires that the institution and the project meet the associated standards for similar project types. Section 17.91, Projects Not Meeting Board Standards, requires that the Board notify the governor, lieutenant governor, the Speaker of the House of Representatives, and the Legislative Budget Board of the results of the evaluation for projects that do not meet the specified Board standards.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the sections.

Dr. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.90.Standards for Tuition Revenue Bond Projects.

Unless specifically exempted by legislative authority, each Tuition Revenue Bond Project shall be submitted to the Board for an evaluation to determine if the project meets the following standards:

(1) Institutional Standards. The institution shall demonstrate that the Tuition Revenue Bond project complies with the standards required in §17.30(1)(A) and (B) of this title (relating to Deferred Maintenance and Critical Deferred Maintenance).

(2) Project Standards. The following basic standards shall apply to all Tuition Revenue Bond projects considered by the Board, Committee on Campus Planning, or the Commissioner:

(A) Tuition Revenue Bond Projects for a new construction and/or addition shall be considered under the provisions of §17.30(2) of this title (relating to Project Standards).

(B) Tuition Revenue Bond Projects for repair and renovation shall be considered under the provisions of §17.40(2) of this title (relating to Project Standards) and §17.41 of this title (relating to Additional Requirements).

(3) Real Property. Tuition Revenue Bond Projects for the acquisition of real property shall be considered under the provisions of §17.50 and §17.51 of this title (relating to Rules Applying to Real Property Acquisition Projects).

(4) Auxiliary Enterprise Projects. Tuition Revenue Bond Projects for auxiliary enterprises shall be considered under the provisions of §17.60 of this title (relating to Rules Applying to Auxiliary Enterprise Projects).

(5) Intercollegiate Athletic Projects. Tuition Revenue Bond Projects for intercollegiate athletics shall be considered under the provisions of §17.70 and §17.71 of this title (relating to Rules Applying to Intercollegiate Athletic Projects).

(6) Energy Savings Performance Contract Projects. Tuition Revenue Bond Projects that include an energy savings performance contract shall be considered under the provisions of §§17.80 - 17.82 of this title (relating to Rules Applying to Energy Savings Performance Contract Projects).

§17.91.Projects Not Meeting Board Standards.

The Board shall notify the Governor, Lieutenant Governor, the Speaker of the House of Representatives, and the Legislative Budget Board the results of the evaluation.

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 May 3, 2004.

TRD-200402978

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter K. REPORTS

19 TAC §17.100, §17.101

The Texas Higher Education Coordinating Board proposes new §17.100 and §17.101, concerning Reports. Specifically, these new sections replace existing sections which are contemporaneously proposed for repeal in this issue of the Texas Register . The new sections assemble in one chapter, renumber, and clarify current Board rules regarding the general provisions for Board and institutional reporting. Significant additions and changes are indicated as follows: §17.100, Board Reports, clarifies that the Board develop and publish reports concerning deferred maintenance and replacement value calculations, construction costs, and space planning models to estimate the assignable E&G space needed at institutions of higher education. This section clarifies the periodic review and use of these reports. Section 17.101, Institutional Reports, provides that institutions of higher education submit periodic reports to the Board related to its facilities inventory, facilities development efforts, accumulated deferred maintenance, project status and tracking, and other reports required by the Board. A new provision in this section would require the institutions to annually report any facilities development or renovation projects approved by the institution's governing board that add E&G space to the institution's facilities inventory. This section clarifies the periodic review and use of these reports.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the sections.

Dr. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.100.Board Reports.

The Board shall annually prepare the following reports:

(1) Space Projection Model. The Board, in consultation with the institutions, shall develop space planning models to estimate the NASF of E&G space needed at institutions of higher education.

(A) Periodic Review. Each biennium, the Commissioner may convene an advisory committee of institutional representatives to review the model and recommend changes.

(B) Use. The Board shall use the models developed under this section to determine the need for space on campuses, as a component of funding formulas for public institutions other than community colleges, and in the evaluation of facilities development projects.

(2) Space Utilization. The Board shall collect data and publish reports designed to inform the public and other state agencies of the intensity of use of E&G facilities at institutions of higher education. Classroom and class lab utilization data are not calculated for health-related institutions.

(A) Periodic Review. The Board shall annually calculate the utilization of classrooms and class laboratories for the institutions.

(B) Use. The Board shall use the models developed under this section to determine the utilization of classrooms and class laboratories for the institutions.

(3) Deferred Maintenance and Replacement Value. The Board shall collect data and publish reports on institutional deferred maintenance designed to inform the public and other state agencies of the condition and value of facilities at institutions of higher education.

(A) Periodic Review. This report shall annually calculate and report a replacement value of E&G facilities that reflects the cost to replace the function of a facility.

(B) Use. The Board shall use the data on deferred maintenance and replacement value to determine compliance with Board standards and shall include the results in its annual report as required by Texas Education Code, §61.0582.

(4) Construction Costs.

(A) Periodic Review. The Board shall annually (not later than October 1 of each year) calculate and report average construction building costs per square foot. The costs shall be based on similar projects approved by the Board, within the immediate prior five years, annually adjusted for inflation. As a minimum, the calculations shall be developed for the following project types and shall be published on the agency website.

(i) New construction/addition;

(ii) Repair and renovation;

(iii) Parking construction costs; and

(iv) Housing costs per bed for residential projects.

(B) Use. The Board shall use the data on construction costs to evaluate project applications and any other required or requested analyses.

§17.101.Institutional Reports.

Institutions of higher education shall submit current data to the Board for the following reports:

(1) Facilities Inventory.

(A) Periodic Review. Institutions shall report a record of all property, buildings, and rooms occupied or in the control of an institution in a format specified by the Board.

(i) The inventory of facilities shall be updated on an ongoing basis.

(ii) The inventory is subject to periodic audits.

(iii) The inventory shall be certified by the institution annually on or before December 15, or as specified by the Board.

(B) Use. The Board shall use the data reported in the facilities inventory to evaluate project applications, perform facilities audits, to determine compliance with Board Standards, and other required or requested analyses. The facilities inventory shall be used to complete the following reports as required by this section:

(i) the Space Projection Model;

(ii) calculation of replacement values; and

(iii) calculation of classroom and class lab utilization.

(2) Facilities Development Reports. The Board shall consider projects that are included in the facilities development plans (MP1 and MP2). A project that is not included in the plan may be considered if the Board determines that the institution, even with careful planning, could not reasonably have foreseen the project need.

(A) Facilities Development Plan (MP1). On or before July 1 of every year, beginning in 2004, an institution shall submit an update to its Facilities Development Plan (MP1) on file with the Board, as required by Texas Education Code, §61.0582. In every even-numbered year, the Board shall provide Facilities Development Plan data to the Bond Review Board for inclusion in the Capital Expenditure Report. The report shall include:

(i) any proposed new construction greater than $250,000, repair and rehabilitation greater than $1,000,000, information resource project greater than $1,000,000, and property purchases for any amount that may be submitted within the next five years to the Board, regardless of funding source;

(ii) the funding source for any planned project identified in clause (i) of this subparagraph; and

(iii) a description of the proposals the institution plans to finance with the Higher Education Assistance Fund or Permanent University Fund.

(B) Campus Deferred Maintenance Plan (MP2). On or before October 15 of every year, an institution shall submit an update to its Campus Deferred Maintenance Plan (MP2) on file with the Board. The report shall include:

(i) a list of an institution's facilities backlogged or deferred maintenance needs for the next five years that cost $10,000 or greater;

(ii) the amount the institution plans to designate each fiscal year for the next five years to address the backlogged or deferred maintenance reported in the Campus Deferred Maintenance Plan;

(iii) the amount of an institution's facilities critical backlogged or deferred maintenance needs for the next five years that cost $10,000 or greater;

(iv) a plan to address deferred maintenance if a project is delayed three years beyond its originally scheduled completion date; and

(v) an explanation for the delay in a project and a plan to address deferred maintenance if a project has remained on the institution's MP4 report for a third year.

(C) Campus Addressed Deferred Maintenance Report (MP4). On or before October 15 of every year, an institution shall submit an update to its Campus Addressed Deferred Maintenance Report (MP4) on file with the Board. The report shall include the amount of backlogged or deferred maintenance addressed in previous fiscal year.

(3) Project Status and Tracking Reports.

(A) Annually, from the date of approval, institutions shall report the status of an approved project to the Board. Reporting to the Board on an annual basis shall cease after the construction project is placed into service and included in the Facilities Inventory Report, or the property acquisition is completed, or the renovation shall be reported to be complete. The report shall include, but is not limited to:

(i) approved and actual project cost;

(ii) approved and actual building cost;

(iii) approved and actual GSF;

(iv) approved and actual NASF;

(v) approved and actual E&G NASF;

(vi) approved and actual source(s) of funding; and

(B) If the actual costs, square footage, or source(s) of funding changed beyond the thresholds defined in §17.14 of this title (relating to Re-approval of Projects), the institution shall submit a project application requesting re-approval of the project and include a justification for the delay in the request.

(4) Governing Board Approved Projects. Institutions shall report to the Board annually, on a form specified by the Board, all projects approved by the institution's governing board but not requiring Board approval that add E&G space to the institution's facilities inventory. The report shall be submitted electronically not later than December 1 of each year.

(5) Other Reports. Institutions are required to submit such other reports required 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 May 3, 2004.

TRD-200402979

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter L. FACILITIES AUDIT

19 TAC §§17.110 - 17.114

The Texas Higher Education Coordinating Board proposes new §§17.110 - 17.114, concerning facilities audits. Specifically, these new sections assemble in one chapter and specify current Board rules regarding the general provisions for periodic comprehensive audits of all education and general facilities on the campuses of public senior colleges and universities, health-related institutions, Lamar State Colleges, and the Texas State Technical Colleges to verify the accuracy of institutional facilities inventories and approved facilities development projects for each of those institutions. Section 17.110, General Provisions, defines the requirement that the Board conduct periodic comprehensive audits of all education and general facilities on the campuses of public institutions of higher education to verify the accuracy of institutional facilities inventories and approved facilities development projects. This section provides that the Board may contract with a recognized accounting firm to conduct the audit and that institutions may request assistance from the Board to conduct these audits. Section 17.111, Facilities Audit Objectives, defines the objectives for the audit that would include verification of the accuracy of institutional reporting, institutional control systems, compliance with Board rules, verification of appropriate approvals for facilities projects, and whether the projects have been completed as approved. Section 17.112, Data Sources, outlines the minimum data sources the Board will use in the course of the facilities audit. These data sources include reports to the Board made by the institution, Board reports for space need and utilization, facilities inventory reports, deferred maintenance and replacement value calculation reports, facilities condition assessments, applicable contracts, and governing board approvals. Section 17.113, Institutional Audit Cycle, requires that the Board establish the frequency and scope of institutional facilities assessments. This section provides that each institution be reviewed a minimum of once each five years, beginning in September 2005, and that the Board publish a schedule of assessments no later than August 15 of each year, beginning in August of 2005, for the succeeding fiscal year. This section also provides for a comprehensive assessment to determine if circumstances warrant a substantial audit by an independent auditing firm. Section 17.114, On-Site Audit, specifies that, should the determination be made that an on-site audit be required or requested, costs incurred in performing such audits be reimbursed to the Board by the institution. This section also requires that a copy of the resulting audit report be provided to the institution, the applicable university system, the State Auditor, and the Legislative Budget Board.

Dr. Deborah L. Greene, Assistant Commissioner for Finance, Campus Planning, and Research has determined that for each year of the first five years the new sections are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the sections.

Dr. Greene 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 more efficient Board meetings and Board operations related to Campus Planning activities. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Nancy Ellen Soteriou, Director, Campus Planning, P.O. Box 12788, Austin, Texas 78711; e-mail: Nancy.Soteriou@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 Texas Education Code, §61.027, which provides the Board with the authority to adopt rules, and Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

The new sections affect the Texas Education Code, §§61.058, 61.0572, 61.0582, and 61.0583.

§17.110.General Provisions.

(a) The Board shall periodically conduct a comprehensive audit of all education and general facilities on the campuses of institutions to verify the accuracy of the institutional facilities inventory and approved facilities development projects for each of those institutions.

(b) The Board may contract with a recognized accounting firm with substantial experience in auditing facilities to conduct the audit of the institution. The accounting firm selected to conduct the audits shall report the results of those audits directly to the Board through its Committee on Campus Planning.

(c) Institutions may request assistance from the Board to conduct audits of facilities. Costs for such requests shall be the responsibility of the requesting institution.

§17.111.Facilities Audit Objectives.

The objectives of the audit are to determine whether selected institutions of higher education:

(1) are accurately reporting their facilities data to the Board;

(2) have control systems in place over their facilities development and management programs;

(3) have followed the Board rules and received approval by the Board and the institutional governing board for facilities projects; and

(4) approved facilities projects have been completed as specified in the request.

§17.112.Data Sources.

As a minimum, the following Board data sources shall be used in the course of the audit:

(1) Institutional Facilities Development Plans (MP1);

(2) Institutional Deferred Maintenance Plans and Reports (MP2, MP4);

(3) Campus Master Plans;

(4) Space Model Projection Reports;

(5) Reports required by the Educational Data Center;

(6) Facilities Inventory Reports;

(7) Facilities Development and Improvement Applications and Approvals;

(8) Classroom and Class Laboratory Utilization Reports;

(9) Deferred Maintenance and Replacement Value Calculations;

(10) Institutional Facilities Condition Audit Reports;

(11) Institutional Energy Contracts;

(12) Governing Board facilities approvals; and

(13) Any other institutional data deemed appropriate by the auditor.

§17.113.Institutional Audit Cycle.

(a) The Board shall determine the frequency and the scope of the audits authorized by this section; audits shall be limited to facilities planning, development, operation, and maintenance.

(b) Beginning in September 2005, each institution of higher education shall be reviewed a minimum of once each five years. Audits of institutions may be conducted more often than every five years upon the request of the institution, the Board, the Legislature, or another agency within revenue appropriated for this purpose.

(c) Not later than August 15 of each year, beginning in 2005, the Office of Campus Planning shall publish a schedule of audits for the succeeding fiscal year.

(d) The Board shall conduct a comprehensive audit of institutional facilities as provided for in this subsection, within revenue appropriated for this purpose, to determine if circumstances warrant a substantial audit by an independent auditing firm.

§17.114.On-Site Audit.

(a) The institution shall reimburse the Board for the costs incurred in performing on site audits.

(b) The institution shall reimburse the Board for the costs of the audit not later than the 30th day after the date the institution receives a statement of audit costs paid by the Board under this subsection.

(c) The Board shall pay the costs of each audit under this section only from money appropriated to the Board and approved for that purpose by the Board.

(d) No later than 30 days after the Board receives an audit report, a copy of the report shall be filed with the institution, the applicable university system, the State Auditor, and the Legislative Budget 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 May 3, 2004.

TRD-200402980

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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, 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, the proposed amendments implement statutory changes to Texas Education Code §54.058, passed in House Bill 261 by the 78th Texas Legislature, Regular Session, and more clearly reflect that waivers remain in effect for eligible students as long as those students remain in Texas or continue to be enrolled in the same degree or certificate program. This obviates the old requirement in §21.26(b)(11)(A) for students to annually document their assignment to duty in Texas once their initial eligibility is established. Changes to §21.26(b)(11)(B) - (K) are recommended to improve the flow of rule language.

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

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 amended section 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 is no anticipated economic cost to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

Comments on the amendments may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

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 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) Military and Their Families. Members of the U.S. Armed Forces, Army National Guard, Air National Guard, and Commissioned Officers of the Public Health Service , and their spouses or dependent children, who become eligible for the following waivers, will remain eligible as long as they remain 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 .

(A) Assigned to Duty in Texas. 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 are assigned to duty in Texas , and their spouses, or dependent children, are entitled to pay the resident tuition rate [ for themselves, their spouses and dependent children ]. To qualify, the student must submit during his or her first semester of enrollment in which he or she will be using the waiver [ at least once a year ] a statement from an appropriately authorized officer in the service, certifying that he or she (or a parent or court-appointed legal guardian) will be assigned to duty in Texas at the time of enrollment and is not a member of the National Guard or Reserves who will be in Texas only to attend training with Texas units. Such students are entitled to pay the resident rate as long as they reside continuously in Texas or remain continuously enrolled in the same degree or certificate program.

(B) After Assignment in Texas. A spouse [ The spouses ] and/or dependent child [ children ] of a nonresident member [ members ] of the U.S. Armed Forces, or of a [ members of ] Texas unit [ units ] of the Army or Air National Guard, or of a Commissioned Officer [ Officers ] of the Public Health Service who has been reassigned elsewhere after having been assigned to duty in Texas is [ are ] entitled to pay the resident tuition rate as long as the spouse or child resides continuously in Texas.

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

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

(E) Spouse and Dependents who Previously Lived in Texas. A spouse and/or dependent child of a member of the U.S. Armed Forces, or of a [ The spouse and dependent children of a nonresident member of the U.S. Armed Forces, members of ] Texas unit [ units ] of the Army or Air National Guard, or of a Commissioned Officer of the Public Health Service who previously resided in Texas for at least six [ 6 ] months may establish residency for tuition purposes if the member or commissioned officer (at least 12 months prior to the family member's enrollment):

(i) - (iii) (No change.)

(F) Members Who Change their Residency to Texas. A member of the U.S. Armed Forces whose state of record is not Texas may change his/her residency to Texas if he/she does the following things at least 12 months prior to the member’s enrollment:

(i) has been [ be ] assigned to duty in Texas for at least 12 consecutive months, during which the member files proper documentation with the military to change his/her permanent residence to Texas, and

(ii) meets four of the eight [ 8 ] conditions listed below for the 12 months prior to enrollment:

(I) has purchased [ purchase ] a residence in Texas and claims [ claim ] it as a homestead;

(II) has registered [ register ] to vote in Texas;

(III) has registered [ register ] an automobile in Texas;

(IV) has maintained [ maintain ] a Texas driver's license;

(V) has maintained [ maintain ] checking, savings or safety deposit box in Texas;

(VI) has had [ have ] a will or other legal documents on file in Texas that indicates [ indicate ] residence in Texas;

(VII) has established [ have ] membership in professional organizations or other state organizations; and/or

(VIII) has established [ establish ] a business in Texas.

(G) Honorably Discharged Veterans. A former member of the U.S. Armed Forces or Commissioned Officer of the Public Health Service and his/her spouse and /or dependent child [ children ] are entitled to pay the resident tuition rate for any term beginning prior to the first anniversary of separation from the military or health service if the former member : [ has ]

(i) - (iii) (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.]

(H) [ (I) ] 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.

(I) [ (J) ] 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.

(J) [ (K) ] 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 April 28, 2004.

TRD-200402817

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter E. TEXAS B-ON-TIME LOAN PROGRAM

19 TAC §§21.124 - 21.127, 21.129

The Texas Higher Education Coordinating Board proposes amendments to §§21.124 - 21.127 and §21.129, concerning the Texas B-On-Time Loan Program. Specifically, the proposed amendments to §21.124 would reflect the instructions provided to institutional aid officers in meeting the statutory requirement to award Texas B-On-Time loans to students having financial need if there are not sufficient funds for loans to all eligible students. The proposed amendments to §21.125 would reflect a statutory provision that was inadvertently excluded from the previously adopted rules. The proposed amendments to §21.126 would bring the rules in line with current procedures and reflect the fact that all funds for the B-On-Time Loan Program are now transferred electronically, so any language referencing "warrants" is no longer applicable. The proposed amendments to §21.127 would clarify that the Board is delegating to the institutions the authority to determine if a waiver of the full-time course load requirement is warranted based on the student's documented circumstances. The proposed amendments to §21.129 would clarify the loan forgiveness requirements and allow for forgiveness of loans for students who have completed one-year certificate programs.

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

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 amended 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 cost to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §56.453, which authorizes the Coordinating Board to administer the Texas B-On-Time Loan Program.

The amendments affect Texas Education Code §§56.451 - 56.465.

§21.124.Initial Eligibility for Loans.

(a) - (b) (No change.)

(c) If program funds are not sufficient to provide Texas B-On-Time Loans to all qualified students, priority must be given to students with demonstrated financial need.

§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) as of the end of the person's first academic year he or she meets the satisfactory academic progress requirements as indicated by the financial aid office of his or her institution.

(A) If a student ends his/her first year in the program without meeting the academic progress requirements of his/her institution, he/she may not get back into the program until the institution has determined that the student has met its academic performance requirements.

(B) A loan recipient who is below program grade point average requirements as of the end of a spring term may appeal his/her grade point average calculation if he/she has taken courses previously at one or more different institutions. In the case of such an appeal, the current institution (if presented with transcripts from the previous institutions), must calculate an overall grade point average counting all classes and grade points previously earned. If the resulting grade point average exceeds the current institution's academic progress requirement, an otherwise eligible student may receive an award in the following fall term.

(2) As of the end of the second and subsequent years, the student must complete at least 75 percent of the hours attempted in his/her most recent academic year, and maintain 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.

(A) The completion rate calculations may be made in keeping with institutional policies.

(B) Grade point average calculations may be made in keeping with institutional policies except that if a loan recipient's grade point average falls below program requirements and the student transfers to another institution, the receiving institution cannot make a continuation award to the transfer student until he/she provides transcripts of previous coursework to the new institution's financial aid office and that office re-calculates an overall grade point average, including hours and grade points for courses taken at the old and new institutions that proves the student's overall grade point average now meets or exceeds program requirements.

(C) A loan recipient who is below program grade point average requirements as of the end of a spring term may appeal his/her grade point average calculation if he/she has taken courses previously at one or more different institutions. In the case of such an appeal, the current institution (if presented with transcripts from the previous institutions), must calculate an overall grade point average counting all classes and grade points previously earned. If the resulting grade point average exceeds the program's academic progress requirement, an otherwise eligible student may receive an award in the following fall term.

(3) enrolls in a program leading to a bachelor's degree within 12 months after the month in which the student received an undergraduate certificate or associate's degree.

[(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) - (c) (No change.)

§21.126.Disbursement to Students.

(a) (No change.)

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

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

§21.127. Hardship Provisions [ Waiver of Course Load Requirement ].

(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 B-On-Time loan while enrolled for an equivalent of less than full-time but at least six semester hours. Such conditions are not limited to, but include: [ 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. ]

(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) 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.]

(b) [ (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 institution [ Commissioner ] determines that the student is justified by his or her circumstances in dropping to no fewer than six semester hours, the institution [ 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 institution [ 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.

§21.129.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, and received [ within ]:

(A) a baccalaureate degree within four calendar years after the date the student initially enrolled in an eligible [ four year ] institution;

(B) a baccalaureate degree within five calendar years after the date the student initially enrolled in an eligible institution , 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) a degree or certificate from a two-year program within two calendar years after the date the student initially enrolled in an eligible institution [ public technical institute or public junior college; or ]

(D) a certificate from a one-year program within one calendar year after the date the student initially enrolled in an eligible institution; 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. ]

(A) six hours more than the number of credit hours required to complete a two-year certificate or a baccalaureate degree; or

(B) three hours more than the number of credit hours required to complete a one-year certificate.

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 April 28, 2004.

TRD-200402818

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter G. TEACH FOR TEXAS LOAN REPAYMENT ASSISTANCE PROGRAM

19 TAC §21.174

The Texas Higher Education Coordinating Board proposes amendments to §21.174, concerning the Teach for Texas Loan Repayment Assistant Program. Specifically, the proposed amendments would correct an omission in the rules of certain educators from loan repayment eligibility as mandated in the statute. Current rules do not include the provision for loan repayment for educators who are teaching in a community experiencing a shortage of teachers.

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

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 amended section will be to increase the retention of certified teachers. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §56.3575 which authorizes the Coordinating Board to adopt rules necessary for the administration of the Teach for Texas Loan Repayment Assistant Program.

The amendments affect Texas Education Code §§56.351 - 56.359.

§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 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 that teaching field; or [ and ]

(2) be a certified educator in the year in which the individual receives the assistance, and 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 community identified by the Texas Education Agency as having an acute shortage of teachers; and :

[(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) (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 April 28, 2004.

TRD-200402819

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter J. THE PHYSICIAN EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §21.256

The Texas Higher Education Coordinating Board proposes amendments to §21.256, concerning the Physician Education Loan Repayment Program. Specifically, the proposed amendments would establish criteria for ranking applications from physicians who are applying for participation in the program for the first time and would give continued priority to renewal applicants.

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

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 amended section will be to increase the number of physicians practicing in underserved areas of Texas. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §61.537 which authorizes the Coordinating Board to adopt rules necessary for the administration of the Physician Education Loan Repayment Program.

The amendments affect Texas Education Code §§61.531 - 61.539.

§21.256.Priorities of Application Acceptance.

Acceptance of applicants will depend on the availability of funds. An application deadline will be established each year, at which time the applications will be grouped according to whether they are renewal or first-time applications. Renewal applicants will be given priority treatment over first-time applicants. If there are not sufficient funds to provide loan repayment to all qualified applicants in a group, the applications in that group will be ranked according to the following criteria:

(1) Service at a non-profit facility;

(2) Health Professional Shortage Area (HPSA) score or equivalent;

(3) Service in an area which has been designated as a HPSA for more than five years;

(4) Service in a rural county;

(5) Full-time service;

(6) Graduate of a Texas medical school; and

(7) Current or returning Texas resident.

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 April 28, 2004.

TRD-200402820

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter K. THE GOOD NEIGHBOR SCHOLARSHIP PROGRAM

19 TAC §§21.281 - 21.288

(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 §§21.281 - 21.288, concerning the Good Neighbor Scholarship Program. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 21, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). In conducting the review of Chapter 21, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

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

Ms. Hollis has also determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of the repeal 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 cost to persons who are required to comply with the repeal as proposed. There is no impact on local employment.

Comments on the repeal may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The repeal is proposed under the Texas Education Code, §54.207, which states that the Coordinating Board is authorized to formulate and prescribe a plan governing the admission and distribution of all applicants desiring to qualify under the provisions of this section.

The repeal affects Texas Education Code, Chapter 54, Subchapter D, §54.207.

§21.281.Purpose.

§21.282.Administration.

§21.283.Authorization.

§21.284.Definitions.

§21.285.Eligible Institution of Higher Education.

§21.286.Designation of Good Neighbor Scholarship Officer.

§21.287.Eligible Student Criteria.

§21.288.Selection Procedures.

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 April 28, 2004.

TRD-200402822

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§21.281 - 21.287

The Texas Higher Education Coordinating Board proposes new §§21.281 - 21.287, concerning the Good Neighbor Scholarship Program. Specifically, the proposed new sections would establish procedures to administer the program for students from other nations of the American hemisphere, more commonly known as the Good Neighbor Scholarship Program. The new sections would state the Board's authority to administer the program, and clarify Board administrative procedures and the value of awards received through the program.

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 not be any fiscal implication to state or local government as a result of enforcing or administering the sections.

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 cost to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The new sections are proposed under the Texas Education Code, §54.207, which states that the Coordinating Board is authorized to formulate and prescribe a plan governing the admission and distribution of all applicants desiring to qualify under the provisions of this section.

The new sections affect Texas Education Code, Chapter 54, Subchapter D, §54.207.

§21.281.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter B, Tuition Rates. These rules establish procedures to administer the program authorized in §54.207, Students from Other Nations of the American Hemisphere, more commonly known as the Good Neighbor Scholarship Program.

(b) Purpose. The purpose of the Good Neighbor Scholarship Program is to encourage academically talented students from the countries of the Western (American) hemisphere to pursue higher education in the State of Texas, thus establishing a beneficial link between the State of Texas and the home countries of the students.

§21.282.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, the Chief Executive Officer of the Board.

(3) Eligible country--A politically independent nation, other than Cuba and the United States, located in the Western, or American hemisphere.

(4) Native-born citizen of an eligible country--A person who is a citizen of an eligible country and who was born in that country.

(5) Resident of an eligible country--A person who is a citizen of a country and has that country as his or her place of home residence and who intends to return to that country to live immediately after finishing the educational program for which this scholarship will be used.

(6) Scholastically qualified--Meets the basic admissions requirements of the nominating institution and maintains satisfactory progress toward a degree.

§21.283.Eligible Institutions.

(a) Texas public institutions of higher education are eligible to participate in the Good Neighbor Scholarship Program.

(b) Program Officer. The chief executive officer at each participating institution shall name the principal international student advisor or another appropriate person to serve as the Good Neighbor Scholarship Program Officer. The Program Officer shall certify all scholarship applications and activities with respect to the Good Neighbor Scholarship Program and shall be responsible for all related records and reports.

§21.284.Eligible Students.

To be eligible for a Good Neighbor Scholarship a person must:

(1) be a bona fide native-born citizen and resident of an eligible country;

(2) have resided in the Western (American) Hemisphere for a period of at least five years;

(3) demonstrate that he or she is scholastically qualified for admission to the nominating institution;

(4) not be a member of the Communist Party;

(5) be recommended for a scholarship by an eligible institution; and

(6) not be eligible for a waiver of nonresident tuition fees.

§21.285.Selection Procedures.

Each year eligible institutions may submit scholarship recommendations (applications) to the Board. Applications for the 12-month awards must be submitted to the Board no later than March 15.

(1) Prioritization. Participating institutions will assign priority numbers to their applicants, so that if all applicants cannot receive scholarships the Board will know which applicants are given highest priority by the nominating institutions. Within the confines of the basic allotment formula the Board will do its best to accommodate institutional priorities.

(2) Basic allotment. From the pool of valid applications submitted, the Board shall select:

(A) up to 10 students per eligible country, plus

(B) 35 students from a Latin American country designated by the United States Department of State.

(3) Reallocation of unused scholarships. In the event any nation fails to have 10 students available and qualified for scholarships or if the designated country fails to have 35 such students, the Board may allocate such unused scholarships as determined appropriate, with priority being given to students from Mexico, except that the total of all scholarships shall not exceed 235 in a year. If an institution notifies the Board by October 15 of a selected student's failure to use the offered scholarship, the Board will offer the scholarships to the first statewide alternate for that country. Awards canceled after October 15 will be allowed to lapse.

§21.286.Award Amount.

Students selected to receive awards through the Good Neighbor Scholarship Program may be exempted from the payment of tuition for the 12-month period beginning with the fall semester following the students' selection as recipients.

§21.287.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

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 April 28, 2004.

TRD-200402821

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter M. TEXAS COLLEGE WORK-STUDY PROGRAM

19 TAC §§21.401 - 21.410

(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 §§21.401 - 21.410, concerning the Texas College Work-Study Program. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 21, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). In conducting the review of Chapter 21, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

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

Ms. Hollis has also determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of administering the repeal 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 cost to persons who are required to comply with the repeal as proposed. There is no impact on local employment.

Comments on the repeal may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The repeal is proposed under the Texas Education Code, §56.073, which states that the Coordinating Board is authorized to administer the Texas College Work-Study Program.

The repeal affects Texas Education Code, Chapter 56, Subchapter E, §§56.071 - 56.078.

§21.401.Purpose.

§21.402.Delegation of Powers and Duties.

§21.403.Definitions.

§21.404.Advisory Committees.

§21.405.Eligible Institutions.

§21.406.Eligible Students.

§21.407.Eligible Employers.

§21.408.Sources of Funding.

§21.409.Allocation and Disbursement of Funds.

§21.410.Reporting Requirements.

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 April 28, 2004.

TRD-200402824

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§21.401 - 21.408

The Texas Higher Education Coordinating Board proposes new §§21.401 - 21.408, concerning the Texas College Work-Study Program. Specifically, the proposed new sections would implement Texas Education Code §§56.071 - 56.078 and incorporate the general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules so that they would be a complete, stand-alone document. The new sections would clarify the source of the Board's authority to administer the program, add definitions to increase consistency in the interpretation of program rules and procedures, state the Board's authority to penalize institutions failing to meet program requirements, and provide institutions more detail regarding Board procedures in allocating and reallocating funds.

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 not be any fiscal implication to state or local government as a result of enforcing or administering the sections.

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 cost to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The new sections are proposed under the Texas Education Code, §56.073, which states that the Coordinating Board is authorized to administer the Texas College Work-Study Program.

The new sections affect Texas Education Code, Chapter 56, Subchapter E, §§56.071 - 56.078.

§21.401.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 56, Subchapter E. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.071 - 56.078.

(b) Purpose. The purpose of the Texas College Work-Study Program is to provide eligible students with jobs, funded in part by the State of Texas, to enable those students to attend eligible institutions of higher education in Texas.

§21.402.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, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(4) Encumbered funds--Program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(5) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(6) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(7) Half-time student--For undergraduates, a person who is enrolled or is expected to be enrolled for the equivalent of six or more semester credit hours. For graduate students, a person who is enrolled or is expected to be enrolled for the equivalent of 4.5 or more semester credit hours.

(8) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(9) Resident of Texas--A resident of the State of Texas as determined in accordance with Subchapter B of this chapter (relating to Determining Residence Status). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

§21.403.Institutions.

(a) Eligibility.

(1) Any public, private, or independent institution of higher education as defined by Texas Education Code, §61.003, except a theological or religious seminary, is eligible to participate in the program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise work-study award recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and financial aid director and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of work-study funds shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting.

(A) Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion. Such reporting requirements shall include reports specific to allocation and reallocation of grant funds (including the Financial Aid Database Report) as well as progress and year-end reports of program activities.

(B) Penalties for Late Reports.

(i) An institution that postmarks or electronically submits a progress report a week or more after its due date will be ineligible to receive additional funding through the reallocation occurring at that time.

(ii) The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10 percent for each progress report that is postmarked or submitted electronically more than a week late.

(iii) The Commissioner may assess more severe penalties against an institution if any report is received by the Board more than one month after its due date. The maximum penalty for a single year is 30 percent of the school's allocation. If penalties are invoked in two consecutive years the institution may be penalized an additional 20 percent.

(C) Appeal of Penalty. If the Commissioner determines that a penalty is appropriate, the institution will be notified by certified mail, addressed to the Program Officer and copied to the financial aid director. Within 21 days from the time that the Program Officer receives the written notice, the institution must submit a written response appealing the Board's decision, or the penalty shall become final and no longer subject to an appeal. An appeal under this section will be conducted in accordance with the rules provided in Chapter 1 of this title.

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Texas College Work-Study Program.

§21.404.Eligible Students.

(a) To be eligible for employment in the work-study program a person must:

(1) be a Texas resident as defined by Board rules;

(2) be enrolled for at least the number of hours required of a half-time student, and be seeking a degree or certification in an eligible institution; and

(3) establish financial need in accordance with Board procedures.

(b) A person is not eligible to participate in the work-study program if the person:

(1) concurrently receives an athletic scholarship;

(2) is enrolled in a seminary or other program leading to ordination or licensure to preach for a religious sect or to be a member of a religious order.

§21.405.Eligible Employers.

An eligible institution may enter into agreements with outside employers to participate in the program. To be eligible to participate, an employer must:

(1) provide part-time employment to an eligible student in nonpartisan and nonsectarian activities;

(2) provide, insofar as is practicable, employment to an eligible student that is related to the student's academic interests;

(3) use Texas college work-study program positions only to supplement and not to supplant positions normally filled by persons not eligible to participate in the work-study program; and

(4) provide not less than 30 percent of an employed student's wages and 100 percent of other employee benefits for the employed student from sources other than federal college work-study program funds, if the employer is a nonprofit entity; or

(5) provide not less than 50 percent of an employed student's wages and 100 percent of other employee benefits for the employed student, if the employer is a profit-making entity.

§21.406.Award Amounts and Uses.

(a) Funding. Funds awarded through this program may not exceed the amount appropriated by the Legislature for that purpose, plus matching funds provided by the students' employers.

(b) Award Amount. No award amount shall exceed a student's financial need.

(c) Uses. No work-study funds earned through this program may be used for any purpose other than for meeting the cost of attending an approved institution.

(d) Over awards. If, at a time after an award has been offered by the institution and accepted by the student, the student receives assistance that was not taken into account in the student's estimate of financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

§21.407.Allocation and Disbursement of Funds.

(a) Allocations. The Board shall allocate work-study funds to participating institutions in proportion to the financial need of the students at each school. At the beginning of each year or upon request by the institution, the year's full allocation or funds needed for immediate disbursement to students will be provided to each participating institution for use in reimbursing students for their work.

(b) Reallocations. Institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber all funds allocated to them. On that date, institutions lose claim to their unencumbered funds and the unencumbered funds are available to the Board for reallocation to other institutions. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed

(c) Unless given specific permission by the Board to use funds for summer awards, schools will be required to utilize their state work-study funds for employment during the nine-month academic year (fall and spring terms).

§21.408.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

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 April 28, 2004.

TRD-200402823

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter R. DENTAL EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §21.560

The Texas Higher Education Coordinating Board proposes amendments to §21.560, concerning the Dental Education Loan Repayment Program. Specifically, the proposed amendments would update the authority and purpose of the program.

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

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 amended section will be to increase the number of dentists practicing in underserved areas of Texas. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §61.908 which authorizes the Coordinating Board to adopt rules necessary for the administration of the Dental Education Loan Repayment Program.

The amendments affect Texas Education Code §§61.901 - 61.910.

§21.560. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter T, Repayment of Certain Dental Education Loans. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.901 - 61.910.

(b) The purpose of the Dental Education Loan Repayment Program is to recruit and retain qualified dentists to provide dental services in areas of the state that are underserved with respect to dental care.

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 April 28, 2004.

TRD-200402825

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter W. EDUCATION LOAN REPAYMENT PROGRAM FOR ATTORNEYS EMPLOYED BY THE OFFICE OF THE ATTORNEY GENERAL

19 TAC §§21.710, 21.711, 21.714

The Texas Higher Education Coordinating Board proposes amendments to §§21.710, 21.711, and 21.714, concerning the Education Loan Repayment Program for Attorneys Employed by the Office of the Attorney General. Specifically, the proposed amendments would update the rules to be consistent with current legislation by changing the program from a loan repayment/loan forgiveness program to a loan repayment program only.

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

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 amended sections will be to increase the retention of attorneys employed by the Attorney General's Office. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the amendments as proposed. There is no impact on local employment.

Comments on the proposed amendments may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The amendments are proposed under the Texas Education Code, §61.9729, which authorizes the Coordinating Board to adopt rules necessary for the administration of Subchapter DD of the Texas Education Code, concerning the Repayment of Certain Education Loans Owed by Certain State Attorneys.

The amendments affect Texas Education Code §§61.9729 - 61.9732.

§21.710.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter X, Repayment of Certain Education Loans Owed by Certain State Attorneys. These rules establish procedures to administer the program as prescribed in the Texas Education Code, §§61.9721 - 61.9732 [ §§61.951 through 61.962 ].

(b) (No change.)

(c) Purpose. This subchapter establishes guidelines for administering the program for the purpose of recruiting[ , ] and retaining [ for at least three years, ] attorneys in the Office of the Attorney General of the State of Texas.

§21.711.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) Program--The [ Conditional ] Education Loan Repayment Program for OAG Attorneys.

(5) (No change.)

§21.714.Eligible Attorney.

To be eligible for loan repayment, an applicant must:

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

(3) have been [ be ] employed for at least one year [ by or have been offered employment ] as an attorney with the Attorney General's Office at the time the application is submitted to the Board,

[(4) sign an agreement to serve as an attorney in the Attorney General's Office for at least three consecutive years, and]

[(5) sign a promissory note promising to repay all loan repayments made if the three years of service are not completed.]

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 April 28, 2004.

TRD-200402826

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter W. CONDITIONAL LOAN REPAYMENT PROGRAM FOR ATTORNEYS EMPLOYED BY THE OFFICE OF THE ATTORNEY GENERAL

19 TAC §21.717 - 21.722

(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 §§21.717 - 21.722, concerning the Conditional Loan Repayment Program for Attorneys Employed by the Office of the Attorney General. Specifically, this repeal will delete the current sections. The repeal is the result of the Texas Higher Education Board's review of Chapter 21, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). In conducting the review of Chapter 21 and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing these sections and proposing a new §21.717.

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

Ms. Hollis has also determined that for each year of the first five years the repeal is in effect, the public benefit anticipated as a result of administering the repeal will be to increase the retention of attorneys employed by the Attorney General's Office. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal as proposed. There is no impact on local employment.

Comments on the repeal may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The repeal is proposed under the Texas Education Code, §61.9729, which authorizes the Coordinating Board to adopt rules necessary for the administration of Subchapter DD of the Texas Education Code, concerning the Repayment of Certain Education Loans Owed by Certain State Attorneys.

The repeal affects Texas Education Code §§61.9729 - 61.9732.

§21.717.Conditions of Loan Repayment(s) and Noncompliance.

§21.718.Terms of Loans.

§21.719.Forbearance.

§21.720.Enforcement of Collections.

§21.721.Provisions for Disability and Death.

§21.722.Advisory Committee.

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 April 28, 2004.

TRD-200402827

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter W. EDUCATION LOAN REPAYMENT PROGRAM FOR ATTORNEYS EMPLOYED BY THE OFFICE OF THE ATTORNEY GENERAL

19 TAC §21.717

The Texas Higher Education Coordinating Board proposes new §21.717, concerning the Education Loan Repayment Program for Attorneys Employed by the Office of the Attorney General. Specifically, the proposed new section would update the rules to be consistent with current legislation by changing the program from a loan repayment/loan forgiveness program to a loan repayment program only.

Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the new section is in effect, there will not be any fiscal implication to state or local government as a result of enforcing or administering the section.

Ms. Hollis has also determined that for each year of the first five years the new section is in effect, the public benefit anticipated as a result of administering the section will be to increase the retention of attorneys employed by the Attorney General's Office. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the new section as proposed. There is no impact on local employment.

Comments on the new section may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The new section is proposed under the Texas Education Code, §61.9729, which authorizes the Coordinating Board to adopt rules necessary for the administration of Subchapter DD of the Texas Education Code, concerning the Repayment of Certain Education Loans Owed by Certain State Attorneys.

The new section affects Texas Education Code §§61.9729 - 61.9732.

§21.717.Advisory Committee.

The Commissioner may appoint an advisory committee from outside the Board's membership and may request assistance in performing the duties herein from the State Bar of Texas and the Attorney General's Office.

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 April 28, 2004.

TRD-200402828

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter X. INCENTIVE GRANTS FOR PROFESSIONAL NURSING STUDENT RETENTION

19 TAC §§21.740 - 21.749

(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 §§21.740 - 21.749, Subchapter X, concerning Incentive Grants for Professional Nursing Student Retention, in its entirety. Specifically, this repeal will delete current Subchapter X, concerning Incentive Grants for Professional Nursing Student Retention, and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 21, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). Although the program was created by the Advisory Committee for Professional Nursing Financial Aid Programs in keeping with its statutory assignment to advise the Board on how funds are to be used, it has been determined that the program lies outside the purview of statutory authority and that the program should be discontinued.

Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. 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 Office of General Counsel at the Texas Higher Education Coordinating Board has determined that there is no statutory authority for this program at this time.

The Office of General Counsel at the Texas Higher Education Coordinating Board has determined that there is no statutory authority for this program at this time.

§21.740.Purpose.

§21.741.Administration.

§21.742.Delegation of Powers and Duties.

§21.743.Definitions.

§21.744.Eligible Institutions.

§21.745.Advisory Committee.

§21.746.Incentive Grants Proposals.

§21.747.Funding.

§21.748.Dissemination of Information.

§21.749.Program Evaluation and Review Requirements.

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 April 28, 2004.

TRD-200402829

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter Y. INCENTIVE GRANTS FOR VOCATIONAL NURSING STUDENT RETENTION

19 TAC §§21.770 - 21.779

(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 §§21.770 - 21.779, Subchapter Y, concerning Incentive Grants for Vocational Nursing Student Retention, in its entirety. Specifically, this repeal will delete current Subchapter Y, concerning Incentive Grants for Vocational Nursing Student Retention, and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 21, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). Although the program was created by the Advisory Committee for Professional Nursing Financial Aid Programs in keeping with its statutory assignment to advise the Board on how funds are to be used, it has been determined that the program lies outside the purview of statutory authority and that the program should be discontinued.

Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. 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 Office of General Counsel at the Texas Higher Education Coordinating Board has determined that there is no statutory authority for this program at this time.

The Office of General Counsel at the Texas Higher Education Coordinating Board has determined that there is no statutory authority for this program at this time.

§21.770.Purpose.

§21.771.Administration.

§21.772.Delegation of Powers and Duties.

§21.773.Definitions.

§21.774.Eligible Institutions.

§21.775.Advisory Committee.

§21.776.Incentive Grant Proposals.

§21.777.Funding.

§21.778.Dissemination of Information.

§21.779.Program Evaluation and Review Requirements.

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 April 28, 2004.

TRD-200402830

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter CC. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM

19 TAC §§21.950 - 21.960

(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 §§21.950 - 21.960, concerning the Early High School Graduation Scholarship Program. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board’s review of Chapter 21, which was posted in the Texas Register on February 20, 2004. In conducting the review of Chapter 21, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the repeal is in effect, there will not be any fiscal implication 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 repeal is in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the repeal may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The repeal is proposed under the Texas Education Code, §56.209, which states that the Coordinating Board is authorized to adopt rules to administer the Early High School Graduation Scholarship Program.

The repeal affects Texas Education Code, Chapter 56, Subchapter K, §§56.202 - 56.209.

§21.950.Authority and Purpose.

§21.951.Delegation of Powers and Duties.

§21.952.Definitions.

§21.953.Eligible Institutions.

§21.954.Eligibility.

§21.955.Source of Funding.

§21.956.Award Amounts.

§21.957.Awarding of Scholarships.

§21.958.Refunds.

§21.959.Reporting Requirements.

§21.960.Hardship Extensions.

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 April 28, 2004.

TRD-200402832

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§21.950 - 21.960

The Texas Higher Education Coordinating Board proposes new §§21.950 - 21.960, concerning the Early High School Graduation Scholarship Program. Specifically, the new sections would incorporate institutional eligibility requirements comparable to those found in rules for other state grant and scholarship programs. The new sections would state the Board’s authority to penalize institutions failing to meet program requirements and provide institutions more detail regarding Board procedures in processing applications and requests for reimbursement.

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 not be any fiscal implication 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 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 cost to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The new sections are proposed under the Texas Education Code, §56.209, which states that the Coordinating Board is authorized to adopt rules to administer the Early High School Graduation Scholarship Program.

The repeal affects Texas Education Code, Chapter 56, Subchapter K, §§56.202 - 56.209.

§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 - 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 assistance to eligible students.

§21.951.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, the Chief Executive Officer of the Board.

(3) High school graduate--An individual who has completed the requisite number of units, the prescribed courses, the examinations and other requirements and has received, or is eligible to receive, a high school diploma from a public high school in Texas.

(4) Institutional aid--Funds which have not originated from any government source.

(5) Program Officer--The individual named by each participating institution’s chief executive officer to serve as agent for the Board. The Program Officer is responsible for all activities with respect to the program, including all records and reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(6) 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 who are eligible to pay resident tuition rates are not residents of Texas.

§21.952.Institutions.

(a) Eligibility.

(1) Any public institution of higher education as defined by Texas Education Code, §61.003, is eligible to participate in the Early High School Graduation Scholarship Program. Private or independent institutions as defined by Texas Education Code, §61.003, are eligible only if they agree to provide scholarship recipients with at least an equal amount of institutional aid.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on probation by its accrediting agency, it must immediately advise scholarship recipients of this condition and maintain evidence in each student’s file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student’s school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that and institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and financial aid director and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting. Each participating institution must meet Board reporting requirements, in particular the submission of the Financial Aid Database Report, in a timely fashion.

(4) Program Reviews. If selected for such by the Board, participating institutions must agree to submit to program reviews of activities related to the Early High School Graduation Scholarship Program.

§21.953.Eligible Students.

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

(1) be a resident of Texas;

(2) graduate from a Texas public high school within thirty-six months of his/her original enrollment, having completed all years of high school in Texas;

(3) have written approval to graduate early from a parent or person standing in parental relation to the student; and

(4) not be a recipient of $1000 through the Tuition Credit Program in operation in 1993 and 1994.

(b) 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) be a resident of Texas;

(2) have attended high school only in Texas;

(3) 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 and exemption program application 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;

(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 46 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).

§21.954.The Application and Awarding Process.

(a) Application forms and instructions developed by the Board will be distributed primarily through school district offices throughout the state. The Board will also provide them to financial aid offices of approved institutions, and students will be able to request the forms directly from the Board.

(b) The application has three parts. It must be completed and signed by the high school counselor or principal on behalf of the student applicant.

(1) Parts I and III are to be completed for all applicants who graduated prior to September 1, 2003.

(2) Parts I, II, and III are to be completed for all applicants who graduated after September 1, 2003.

(c) High school counselors or principals are to send the completed and signed applications to the Board for processing.

(d) Applications will be processed by the Board as they are submitted by the high schools.

(e) As soon as possible after processing applications, the Board will notify the relevant institutions, students and school districts of the students’ eligibility for awards.

(f) Institutions must confirm that the student is a resident of Texas before they can grant a scholarship through the program outlined in this subchapter.

(g) If the student chooses to attend an institution other than the one indicated in the application, he or she should advise the Board of the change and the Board will send the new institution a letter of eligibility and an award may be made at that institution after the student’s residency is confirmed.

§21.955.Source of Funding.

Amounts sufficient to reimburse colleges for 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 and Processing Cycle.

(a) Amounts for students graduating prior to September 1, 2003.

(1) The aggregate amount of state tuition credit that shall be awarded to a student through this program may not exceed the least of:

(A) $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.

(2) If a tuition and fee 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.

(3) A disbursement in any given term or semester may be applied only to reduce the student’s tuition for any courses taken, except that students enrolled in continuing education courses for which the institution does not receive state funding may not use their tuition credit for such courses.

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

(1) the aggregate 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 46 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 institutional aid 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 for any courses taken, except that students enrolled in continuing education courses for which the institution does not receive state funding may not use their tuition credit for such courses.

(c) Form of Award--Exemption or Reimbursement.

(1) If applications are processed and announced in time, institutions should exempt recipients from the payment of relevant charges and then request reimbursement from the Board.

(2) If applications are processed and/or announced too late for the student to be exempted from such payments at registration, the student may be required to pay these charges first, and then be reimbursed by the institution when reimbursement funds are received from the Board.

§21.957.Reimbursements.

(a) Source of Funding. The funds used to reimburse institutions or students for awards made through the Early High School Graduation Scholarship program will come from the state’s Foundation School Fund.

(b) Requesting Reimbursements. To request reimbursement for student awards, institutions must complete and submit a Request for Reimbursement Form designed and distributed by the Board. Such forms must be submitted to the Board with sufficient documentation (student billing information) to confirm that the requests are being made for authorized charges.

(c) Disbursements by the Board. The Board will process institutional Requests for Reimbursement at least once a month and will subsequently have appropriate amounts transferred to institutions by the State Comptroller’s office. Such funds are to be used by the institutions either to reimburse itself (if it exempted the students from the payment of the relevant charges) or to reimburse students for the relevant charges they paid to the institution.

(d) Transfers from the Foundation Program. At least once a year the Board will request a transfer of funds from the foundation school fund for use in reimbursing institutions or students for their Early High School Graduation Scholarship program awards.

§21.958.Refunds.

The institution attended by an Early High School Graduation Scholarship program award recipient who withdraws from a class or drops classes during the term for which the award was made will be expected to make a refund to the Early High School Graduation Scholarship Program for an amount calculated in accordance with the institution’s general refund policies.

§21.959.Hardship Provisions.

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.

§21.960.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

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 April 28, 2004.

TRD-200402831

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter EE. TEXAS NATIONAL STUDENT EXCHANGE PROGRAM

19 TAC §§21.990 - 21.999

(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 §§21.990 - 21.999, concerning the Texas National Student Exchange Program. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board’s review of Chapter 21, which was posted in the Texas Register on February 20, 2004. In conducting the review of Chapter 21, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the repeal is in effect, there will not be any fiscal implication 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 repeal is in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the repeal may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The repeal is proposed under the Texas Education Code, §51.930, which states that the Coordinating Board is authorized to adopt rules relating to the participation of institutions of higher education and students in the National Student Exchange Program.

The repeal affects Texas Education Code, Chapter 51, Subchapter Z, §51.930.

§21.990.Purpose.

§21.991.Administration.

§21.992.Definitions.

§21.993.Eligible Students.

§21.994.Tuition Charges.

§21.995.Transcripts.

§21.996.Financial Aid.

§21.997.Reciprocity.

§21.998.Testing Waiver.

§21.999.Reporting Requirements.

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 April 28, 2004.

TRD-200402834

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§21.990 - 21.994

The Texas Higher Education Coordinating Board proposes new §§21.990 - 21.994, concerning the Texas National Student Exchange Program. Specifically, the proposed new sections would more specifically reflect the statute authorizing public general academic teaching institutions to contract with National Student Exchange and participate in that organization’s exchange program. The new sections would reflect simply the restrictions and authorities noted in statute. Other details regarding program operations should be acquired by the institution from the National Student Exchange.

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 not be any fiscal implication 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 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 cost to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The new sections are proposed under the Texas Education Code, §51.930, which states that the Coordinating Board is authorized to adopt rules relating to the participation of institutions of higher education and students in the National Student Exchange Program.

The new sections affect Texas Education Code, Chapter 51, Subchapter Z, §51.930.

§21.990.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, §51.930, the National Student Exchange Program. These rules establish procedures to administer the Exchange Program.

(b) Purpose. The purpose of the National Student Exchange Program is to provide reciprocal educational opportunities for undergraduate students of colleges and universities in the United States.

§21.991.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) National Student Exchange--The student exchange program administered by National Student Exchange.

(3) Undergraduate--A student who has not received a baccalaureate degree.

§21.992.Eligible Students.

To participate in the National Student Exchange Program:

(1) a student from a Texas institution must be an undergraduate attending a Texas general academic teaching institution as defined in the Education Code, §61.003(3), that is under contract with the National Student Exchange to participate in the program.

(2) a student from an institution outside the State of Texas must be an undergraduate enrolled in an institution under contract with the National Student Exchange to participate in the program.

(3) a student may not participate in the program for more than one year.

§21.993.Tuition Charges.

Out-of-state students attending Texas institutions under the provisions of the National Student Exchange are eligible to pay the resident tuition rate while attending the Texas institution as an exchange participant.

§21.994.Testing Waiver.

A student participating in the program from another state shall be exempt from the provisions of Texas Education Code §51.3062 (Success Initiative) unless that student becomes a degree-seeking undergraduate student at a Texas public institution of higher education.

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 April 28, 2004.

TRD-200402833

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter II. EDUCATIONAL AIDE EXEMPTION PROGRAM

19 TAC §§21.1080 - 21.1089

(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 §§21.1080 - 21.1089, concerning the Educational Aide Exemption Program. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board’s review of Chapter 21, which was posted in the Texas Register on February 20, 2004. In conducting the review of Chapter 21, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the repeal is in effect, there will not be any fiscal implication 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 repeal is in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the repeal may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The repeal is proposed under the Texas Education Code, §54.214, which states that the Coordinating Board is authorized to adopt rules as necessary to implement this section.

The repeal affects Texas Education Code, Chapter 54, Subchapter D, §54.214.

§21.1080.Authority, Scope, and Purpose.

§21.1081.Definitions.

§21.1082.Eligible Institutions.

§21.1083.Eligible Students.

§21.1084.The Application Process.

§21.1085.Selection Criteria.

§21.1086.Award Announcements.

§21.1087.Award Cycle.

§21.1088.Reimbursement for Exemptions.

§21.1089.Program Review Requirements.

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 April 28, 2004.

TRD-200402836

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§21.1080 - 21.1089

The Texas Higher Education Coordinating Board proposes new §§21.1080 - 21.1089, concerning the Educational Aide Exemption Program. Specifically, the proposed new sections would include additional definitions to clarify policies and program requirements; additional details (similar to details in other state program rules) regarding the responsibilities of participating institutions; and additional details regarding Board operations; and a new statement describing the statutory exemption from student teaching for program participants.

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 not be any fiscal implication 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 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 cost to persons who are required to comply with the sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The new sections are proposed under the Texas Education Code, §54.214, which states that the Coordinating Board is authorized to adopt rules as necessary to implement these sections.

The new sections affect Texas Education Code, Chapter 54, Subchapter D, §54.214.

§21.1080.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 54, Subchapter B, Tuition Rates. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §54.214, relating to an exemption for educational aides.

(b) Purpose. The purpose of the Educational Aide Exemption Program is to encourage certain educational aides to complete full teacher certification by providing need-based exemptions from the payment of tuition and certain mandatory fees at Texas public institutions of higher education.

§21.1081.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, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(4) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his/her family, as determined following the federal methodology.

(5) Financial need--An indication of a student’s inability to meet the full cost of attending a college or university, measured by one of the following methods:

(A) The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines; or

(B) An income methodology, which considers a student to have financial need if his or her adjusted gross annual income is less than income levels set annually by the Commissioner. If the student is a dependent, the family’s adjusted gross family income is considered; if the student is independent, only the student’s income (and the income of the student’s spouse, if he or she is married) are considered.

(6) Program Officer--The individual named by each participating institution’s chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(7) 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 who are eligible to pay resident tuition rates are not residents of Texas.

§21.1082.Institutions.

(a) Eligibility.

(1) Any public institution of higher education as defined by Texas Education Code, §61.003, is eligible to participate in the Educational Aide Exemption Program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on probation by its accrediting agency, it must immediately advise scholarship recipients of this condition and maintain evidence in each student’s file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student’s school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that and institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and Financial Aid Director and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting. Each participating institution must meet Board reporting requirements, in particular the submission of the Financial Aid Database Report, in a timely fashion.

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Educational Aide Exemption Program.

§21.1083.Eligible Students.

To receive an award through the Educational Aide Exemption Program, a student must:

(1) be a resident of Texas;

(2) have at least one school year of experience as an educational aide during the five years preceding the term or semester for which the student receives the exemption;

(3) be employed in some capacity by a school district in Texas during the school year for which the student receives the award;

(4) show financial need;

(5) be enrolled in courses required for teacher certification at the institution granting an exemption under this subchapter or (if enrolled in lower-level course-work), sign a statement indicating an intention to become certified as a teacher and teach in Texas;

(6) meet the academic progress standards of the institution; and

(7) follow application procedures and schedules as indicated by the Board.

§21.1084.The Application and Awarding Process.

(a) Application forms and instructions developed by the Board will be distributed primarily through school district offices throughout the state. The Board will also provide forms to financial aid offices of approved institutions and students may request the forms directly from the Board.

(b) The application has three parts that must be completed prior to the form’s submission to the Board for processing.

(1) Part I is to be completed by the student applicant, who shall then forward the application to an authorized officer of the school or school district in which the applicant is employed.

(2) Part II is to be completed and signed by the school or school district authorized officer, who shall then forward the application to the financial aid office of the institution the applicant is attending.

(3) Part III is to be completed by the Program Officer at the institution, who shall then forward the application to the Board for processing.

(c) Applications will be processed by the Board as they are submitted by the institutions. Priority deadlines for submitting applications for the fall-spring terms and for the summer term will be announced in the instructions distributed with the applications. Applications received after those deadlines will be given consideration only if funds remain available after all applications received by the deadline have been processed.

(d) As soon as possible after processing applications, the Board will notify the relevant institutions, students and school districts of their awards.

§21.1085.Special Considerations if Funding is Limited.

(a) Allotment of Acceptable Applications. If funding is limited, the Board will limit the number of applications that may be submitted by an institution. This allotment will be announced to the institutions at least a month prior to the deadline for submitting applications.

(b) Recipient Selection. If funding is limited such that the Board cannot fund all applications submitted by approved institutions, the Board will select recipients on the basis of the following criteria:

(1) the financial need of the student;

(2) the number of years the student has been employed as an educational aide;

(3) the priority assigned each applicant by the institution; and

(4) the student’s anticipated date for certification as a teacher.

(c) The number of awards made each year will depend on the funding available for reimbursing institutions for the exemptions they grant. No institution is required to award an exemption for which reimbursement funds are not available.

§21.1086.Award Amounts and Processing Cycle.

(a) Amounts. Students receiving awards through the Educational Aide Exemption Program shall be exempted from the payment of (or reimbursed for) tuition and required fees, other than laboratory and class fees, for courses taken during the relevant term.

(b) Form of Award--Exemption or Reimbursement.

(1) If applications are processed and announced in time, institutions should exempt recipients from the payment of such charges and then request reimbursement from the Board.

(2) If applications are processed and/or announced too late for the student to be exempted from such payments at registration, the student may be required to pay these charges first, and then be reimbursed by the institution once reimbursement funds are received from the Board.

(c) Unique Requirements for Each Term.

(1) Fall awards are made on the basis of the original fall/spring application.

(2) Spring awards are based on the original fall/spring application. If the student was not a recipient during the fall term, the original application functions as a stand-alone spring application. If the applicant also received a fall award, the spring award will not be released until the school or school district confirms that it will still be employing the applicant in the spring term.

(3) Summer awards are to be based on a summer application that will be distributed only upon confirmation that there is funding available for summer awards. Institutions, current year award recipients and school districts will be advised by the Board of the availability of funds by March 1 of each year. At that time, the Board will distribute copies of the summer application and instructions.

§21.1087.Reimbursements.

(a) Source of Funding. The funds used to reimburse institutions or students for awards made through the Educational Aide Exemption program will come from the state’s Foundation School Fund and any gifts, grants and donations made to the Texas Education Agency for that purpose.

(b) Requesting Reimbursements. To request reimbursement for student awards, institutions must complete and submit a Request for Reimbursement Form designed and distributed by the Board. Such forms must be submitted to the Board with sufficient documentation (student billing information) to confirm that the requests are being made for authorized charges.

(c) Disbursements by the Board. The Board will process institutional Requests for Reimbursement at least once a month and will subsequently have appropriate amounts transferred to institutions by the State Comptroller’s office. Such funds are to be used by the institutions either to reimburse itself (if it exempted the students from the payment of the relevant charges) or to reimburse students for the relevant charges they paid to the institution.

(d) Transfers from the Foundation Program. At least once a year the Board will request a transfer of funds from the foundation school fund for use in reimbursing institutions or students for their Educational Aide Exemption program awards.

§21.1088.Exemption from Student Teaching.

An individual who receives a bachelor’s degree required for a teaching certificate on the basis of higher education coursework completed while receiving an award through this subchapter shall not be required by his or her institution to participate in any field experience or internship consisting of student teaching as a requirement to receive a teaching certificate.

§21.1089.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

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 April 28, 2004.

TRD-200402835

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter JJ. THE KENNETH H. ASHWORTH FELLOWSHIP PROGRAM

19 TAC §§21.2001, 21.2003, 21.2004, 21.2006 - 21.2008

The Texas Higher Education Coordinating Board proposes amendments to §§21.2001, 21.2003, 21.2004, and 21.2006 - 21.2008, concerning the Kenneth H. Ashworth Fellowship Program. Specifically, the proposed amendments would clarify the source of the Board’s authority to administer the program, clarify the selection of recipients by reorganizing the presentation of related information, provide the Board more flexibility in the fiscal management of program funds and specify steps to be taken by the recipient in order to have funds released to them.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the amendments are in effect, there will not be any fiscal implication 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 improve and increase access to higher education in the state of Texas. 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 amendments may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The amendments are proposed under the Texas Education Code, §61.068, which allows the Board to accept gifts and donations from individuals and groups in order to offer programs that encourage students to attend college.

The amendments affect Texas Education Code §61.068.

§21.2001. Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, §61.068, which allows the Board to accept gifts and donations from individuals and groups in order to offer programs that encourage students to attend college.

(b) Purpose. The [ purpose of the ] Kenneth H. Ashworth Fellowship Program is to provide financial assistance to students with financial need enrolled in graduate programs in public affairs, public service or public administration.

§21.2003. Selection Committee [ Administration of the Program ].

(a) A committee is established to accept and evaluate applications from institutions and to select fellowship award recipients.

(b) The committee consists of three members of the Coordinating Board staff appointed by the Commissioner, including one representative from the universities division, one from the Student Services division and one from another division of the agency.

§21.2004.Eligible Students.

[ (a) ] To qualify for an award, a student must be a Texas resident identified by the dean of his/her program of study as needing financial assistance. The student must be enrolled as a graduate student in public affairs, public service or public administration and intend to work in Texas after completing his/her graduate studies.

[ (b) In determining student eligibility the committee shall consider the following factors relating to each applicant: ]

[ (1) academic ability and promise; ]

[ (2) career plans; and ]

[ (3) individual qualifications, with emphasis on leadership and communication skills. ]

§21.2006.Funding.

Funding for the program will be generated through donations [ Donations ] and gifts [ are the sources of funds for the Kenneth H. Ashworth Fellowship fund, which will be deposited (along with its earnings) in the Texas Opportunity Plan Fund ]. Awards will be made from the earnings of the funds [ fund ].

§21.2007.Submission of Applications and Selection of Recipients.

(a) Deans of colleges of public affairs, public service and public administration at eligible institutions will each be invited to submit applications and supportive documentation for up to two applicants per year. Applications for the awards must be submitted to the committee each year by February 20 or if February 20 does not fall on a work date, the first working date thereafter .

(b) The committee[ , following guidelines previously developed and shared with institutions, ] will rank applicants and select the recipients of awards for the following academic year. In determining student eligibility the committee shall consider at a minimum the following factors relating to each applicant:

(1) academic ability and promise;

(2) career plans; and

(3) individual qualifications, with emphasis on leadership and communication skills.

(c) (No change.)

§21.2008.Disbursement of Funds.

As soon as possible after the recipients register for the following fall semester and provide the board proof of enrollment, the board will send [ announcement of award recipients, ] funds representing the full annual award amount [ will be sent ] to the business offices of the relevant institutions for disbursement to the recipients [ of the awards ].

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 April 28, 2004.

TRD-200402837

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter MM. DOCTORAL INCENTIVE LOAN REPAYMENT PROGRAM

19 TAC §§21.2080 - 21.2089

The Texas Higher Education Coordinating Board proposes new §§21.2080 - 21.2089, concerning the Doctoral Incentive Loan Repayment Program. Specifically, the new sections would establish the eligibility requirements of applicants, educational loans and lenders, the priority of application acceptance, and the annual and aggregate loan repayment amounts.

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 these changes in the rules.

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 increase the number of faculty and administrators from groups underrepresented in higher education. 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 sections are proposed under the Texas Education Code, §56.091, which authorizes the Coordinating Board to establish and administer the Doctoral Incentive Loan Repayment Program and adopt rules as necessary.

The new sections affect the Texas Education Code, §§56.091 - 56.096.

§21.2080.Authority, Scope and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter F, Doctoral Incentive Loan Repayment Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.091 - 56.096.

(b) Scope. The rules set forth in this subchapter are applicable to Texas residents employed full-time as doctoral faculty or administrators in Texas.

(c) Purpose. The purpose of the Doctoral Incentive Loan Repayment Program is to provide student loan repayment assistance as an incentive to attract members of underrepresented groups to full-time service on the faculties or administrations of public and private or independent institutions of higher education in Texas.

§21.2081.Administration.

The Texas Higher Education Coordinating Board, or its successor or successors, shall administer the Doctoral Incentive Loan Repayment Program.

§21.2082.Dissemination of Information.

The Board shall disseminate information about the Doctoral Incentive Loan Repayment Program to eligible institutions and shall publish this information on the Board’s web site.

§21.2083.Definitions.

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

(1) Administrator--a person employed in an institution of higher education in a supervisory position.

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

(3) Commissioner--the Commissioner of Higher Education, the Chief Executive Officer of the Board.

(4) Eligible Institution--an institution of higher education, as defined in the Texas Education Code, §61.003(8), or a private or independent institution of higher education, as defined in §61.003(15) of this code.

(5) Encumbered funds--program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(6) Low Income School--a school that has at least 10 percent more economically disadvantaged students than the statewide average for the same year, according to data published by the Texas Education Agency.

(7) Program--the Doctoral Incentive Loan Repayment Program.

(8) Recognized Accrediting Agency--the Southern Association of Colleges and Schools and any other association or organization so designated by the Board, the standards for which are listed in §7.3(15) of this title (relating to Private and Out-of-State Public Postsecondary Educational Institutions Operating in Texas).

(9) Service period--employment as a full-time faculty member or administrator for at least nine months of a 12-month academic year.

(10) Doctoral Degree--a doctoral or other terminal degree, other than a law or health professional degree, from a college or university that is accredited by a recognized accrediting agency.

§21.2084.Eligibility for Encumbered Funds

(a) To become initially eligible to participate in this program, so that the Board encumbers available funds for the applicant, pending completion of his or her service requirements, an applicant:

(1) must have received a doctoral degree from a college or university that is accredited by a recognized accrediting agency;  

(2) must demonstrate:  

(A) that he or she graduated from a Texas high school that at the time of his or her graduation was:

(i) among the lowest ten percent among Texas high schools, with regard to sending students to public institutions of higher education; or

(ii) a low-income school; or

(B) that at the time of graduation from high school, he or she resided in an area of Texas where the high school closest to his or her residence was:

(i) among the lowest ten percent among high schools, with regard to sending students to public institutions of higher education; or

(ii) a low-income school;

(3) must have qualified for need-based financial assistance while enrolled in a graduate-level degree program;

(4) for applicants to the program for the 2005 state fiscal year, shall not be currently employed full-time as a faculty member or administrator in an eligible institution; and for subsequent program years, must not have been employed in an eligible institution for more than one semester; and

(5) must have a full-time job offer as a faculty member or administrator from, or be negotiating a contract with, an eligible institution.

(b) To become eligible for a renewal grant in this program, so that the Board encumbers available funds for the applicant, pending completion of his or her service requirements, an applicant:

(1) must have a contract for another service period as a full-time faculty member or administrator at the same institution by which he or she was employed in the prior year, or his or her application will be ranked with the initial applications under the priorities set forth in §21.2086 of this title (related to Priorities of Application Acceptance);

(2) must be a Texas resident; and

(3) must submit a timely renewal application.

§21.2085.Eligibility for Loan Repayment.

To be eligible to receive student loan repayment, an applicant must:

(1) have satisfied a service period beginning on or after September 1, 2003 as a full-time faculty member or administrator in an eligible institution; and

(2) be a Texas resident.

§21.2086.Priorities of Application Acceptance.

(a) Acceptance of applications will depend on the availability of funds. The Board, in consultation with the eligible institutions, will establish an application deadline each year, at which time the qualified applicants will be grouped according to whether they are renewal or initial applicants. Renewal applicants will receive priority over first-time applicants.

(b) If there are not sufficient funds to provide loan repayment to all qualified initial applicants, the applications will be scored according to their rank in relation to the following criteria, with the highest scoring applications receiving the awards:

(1) those applicants whose presence on the faculty or administration of the institution increases the racial/ethnic diversity of the faculty or administration;

(2) the length of time an applicant has held a doctoral degree, with priority given to new conferees; and

(3) the degree of racial/ethnic diversity among the faculty and administration at the applicant’s institution, as compared to the other institutions that have applicants in the pool, with priority given to the schools with less ethnic diversity.

(4) If there are not sufficient funds for all applicants with identical scores, the awards will be granted on the basis of the degree to which the applicants’ presence on the faculty or administration of the institution increases the racial/ethnic diversity of the faculty or administration.

(c) If there are not sufficient funds to provide loan repayment to all renewal applicants, available funds will be divided equally among all renewal applicants.

§21.2087.Eligible Education Loan.

A loan that is eligible for repayment is one that:

(1) was obtained through an eligible lender as determined in accordance with §21.2088 of this title (relating to Eligible Lender or Holder) for the purpose of attending an institution that is accredited by a recognized accrediting agency; and

(2) is evidenced by a promissory note that either:

(A) promises repayment of funds obtained through any loan program for higher education, with language that clearly indicates that loan proceeds must be used for direct and indirect expenses of education at an eligible institution; or

(B) consolidates the applicant’s education loans.

§21.2088.Eligible Lender or Holder.

The Board shall retain the right to determine eligibility of lenders and holders of education loans to which payments may be made. An eligible lender or holder shall, in general, make or hold education loans made to individuals for purposes of undergraduate and graduate education and shall not be any private individual. An eligible lender or holder may be, but is not limited to, a bank, savings and loan association, credit union, institution of higher education, secondary market, governmental agency, pension fund, private foundation, or insurance company.

§21.2089.Repayment of Education Loans.

(a) The maximum annual loan repayment amount to any applicant shall be $20,000, or the amount of student loan indebtedness, whichever is less.

(b) The total amount of loan repayment assistance available to any applicant shall not exceed $100,000.

(c) Annual repayment(s) shall be made co-payable to the applicant and any eligible lender(s) or holder(s), and must be applied to the total unpaid balance of the education loan.

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 April 28, 2004.

TRD-200402838

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter A. GENERAL PROVISIONS FOR ALL GRANT AND SCHOLARSHIP PROGRAMS DESCRIBED IN THIS CHAPTER

19 TAC §§22.1 - 22.8

(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 §§22.1 - 22.8, Subchapter A, concerning General Provisions for All Grant and Scholarship Programs Described in this Chapter, in its entirety. Specifically, this repeal will delete current Subchapter A, concerning the General Provisions for All Grant and Scholarship Programs Described in this Chapter, and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was posted in the Texas Register on February 20, 2004. Repeal of these sections is recommended because the general provisions are being added to individual program rules in order for the program rules to act as stand-alone documents reflecting all program requirements.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the rules repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. 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 repeal is proposed under the Texas Education Code, §§56.034, 56.303, 56.403, 61.221, 61.652, 61.753; and Transportation Code, §502.270, which authorize the Coordinating Board to administer the grant and scholarship programs.

The repeal affects the Texas Education Code, §§56.033 - 56.039, 56.301 - 56.311, 56 401 - 56.4075, 61.221 - 61.230, 61.651 - 61.658, 61.751 - 61.760; and Transportation Code, §502.270.

§22.1.Administration.

§22.2.Delegation of Powers and Duties.

§22.3.Definitions.

§22.4.Approved Institutions.

§22.5.Eligible Students.

§22.6.Awards and Adjustments.

§22.7.Advisory Committees.

§22.8.Dissemination of Information and Rules.

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 April 29, 2004.

TRD-200402882

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter A. PROVISIONS FOR THE SPECIAL LEVERAGING EDUCATIONAL ASSISTANCE GRANT PROGRAM FOR STUDENTS AT INDEPENDENT INSTITUTIONS

19 TAC §22.1, §22.2

The Texas Higher Education Coordinating Board proposes new §§22.1 and 22.2, concerning the Provisions for the Special Leveraging Educational Assistance Grant Program (SLEAP) for Students at Independent Institutions. Specifically, the new sections would provide guidance to independent institutions making matching grant awards through the Tuition Equalization Grant Program (Chapter 22, Subchapter B of Board rules).

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 these changes in the rules.

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 through the awarding of SLEAP Grants. 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 new sections are proposed under the Texas Education Code, §61.067, which authorizes the Coordinating Board to contract with any agency of the United States, and under Title IV, Part A, Subpart 4 of the Higher Education Act of 1965.

The new sections affect the administration of the Special Leveraging Educational Assistance Grant Program for Students at Independent Institutions.

§22.1.Adoption of Tuition Equalization Grant Program Rules.

The rules and regulations for the Tuition Equalization Grant Program, as contained in §§22.21-22.28 of this title (relating to Provisions for the Tuition Equalization Grant Program), are hereby adopted for use in the administration of any federal funds received by the board through the Special Leveraging Educational Assistance Grant for the purpose of making grants to students at independent institutions, other than as excepted in §22.2 of this title (relating to Provisions for the Special Leveraging Educational Assistance Grant Program for Students at Independent Institutions). Federal requirements governing the Special Leveraging Educational Assistance Grant Program are contained in 45 C.F.R. Part 192.

§22.2.Exceptions to Tuition Equalization Grant Rules.

(a) The conditions outlined in this rule are intended to cause compatibility between the Tuition Equalization Grant Program rules and regulations and the federal regulations for the Special Leveraging Educational Assistance Grant Program. Conditions which apply in the Special Leveraging Educational Assistance Grant Program which differ from and override similar conditions in the Tuition Equalization Grant Program are as follows:

(1) To qualify for a Special Leveraging Educational Assistance Grant, a student must be a national of the United States or must be in the United States for other than a temporary purpose, and must state an intention to become a permanent resident.

(2) To qualify for a Special Leveraging Educational Assistance Grant, a student at a private or independent institution must be the recipient of a grant through the Tuition Equalization Grant Program in an amount equal to or greater than twice the grant amount that he or she receives through the Special Leveraging Educational Assistance Grant Program.

(3) Students at private or independent institutions who receive both Leveraging Educational Assistance Grant funds and Special Leveraging Educational Assistance Grant Funds may not use the same Tuition Equalization Grant funds to match both federal programs. A Tuition Equalization Grant dollar may only be matched by a Leveraging Educational Assistance Grant dollar or by a Special Leveraging Assistance Grant dollar - not by both.

(b) A grant through the Special Leveraging Educational Assistance Grant Program for Students at Independent Institutions may be used to meet any cost related to a student's education.

(c) A student is not eligible to receive simultaneous grants through the Special Leveraging Educational Assistance Grant Program and Tuition Equalization Grant Programs if he or she:

(1) owes a refund on a grant received under the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Leveraging Educational Assistance Grant, or Special Leveraging Educational Assistance Grant programs; or

(2) is in default on a loan made, insured, or guaranteed under the Federal Perkins Loan, Federal Family Education Loan Program, or the Federal Direct Loan 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 April 29, 2004.

TRD-200402883

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter B. PROVISIONS FOR THE TUITION EQUALIZATION GRANT PROGRAM

19 TAC §§22.21 - 22.28

(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 §§22.21 - 21.28, concerning the Tuition Equalization Grant Program. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was posted in the Texas Register on February 20, 2004. In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the repeal is in effect, there will not be any fiscal implication 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 repeal is in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the repeal may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The repeal is proposed under the Texas Education Code, §61.221, which states that the Coordinating Board is authorized to provide tuition equalization grants to Texas residents enrolled in any approved private Texas college or university.

The repeal affects Texas Education Code, Chapter 61, Subchapter F, §§61.221 through 61.230.

§22.21.Purpose.

§22.22.Eligible Institutions.

§22.23.Eligible Students.

§22.24.Award Amounts.

§22.25.Refunds.

§22.26.Allocation of Funds.

§22.27.Disbursement Limits.

§22.28.Annual Audit Requirement.

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 April 29, 2004.

TRD-200402884

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§22.21 - 22.30

The Texas Higher Education Coordinating Board proposes new §§22.21 - 22.30, concerning the Tuition Equalization Grant Program. Specifically, the proposed new sections implement Texas Education Code §§61.221 - 61.230 and have been re-organized, primarily as a result of incorporating the general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules for individual programs so that each program's set of rules is a complete, stand-alone document. The new sections clarify the source of the Board's authority to administer the program, add definitions to increase consistency to the interpretation of program rules and procedures, state the Board's authority to penalize institutions failing to meet program requirements, limit eligibility requirements to those set in state statute only and provide institutions more detail regarding Board procedures in allocating and reallocating funds.

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 not be any fiscal implication 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 new sections are in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The new sections are proposed under the Texas Education Code, §61.221, which states that the Coordinating Board is authorized to provide tuition equalization grants to Texas residents enrolled in any approved private Texas college or university.

The new sections affect Texas Education Code, Chapter 61, Subchapter F, §§61.221 through 61.230.

§22.21.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter F, the Tuition Equalization Grant Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.221 through 61.230.

(b) Purpose. The purpose of the Tuition Equalization Grant Program is to promote the best use of existing educational resources and facilities within this state, both public and private, by providing need-based tuition equalization grants to Texas residents and eligible nonresidents enrolled in any approved private Texas college or university.

§22.22.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) Central processing--An approach to administering a grant program by having institutions submit application information to the Board, which then issues funds to students in keeping with a schedule specified by the institution in the application data.

(3) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(4) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(5) Encumbered funds--Program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(6) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(7) Full-time student--For undergraduates, a person who is enrolled or is expected to be enrolled for the equivalent of twelve or more semester credit hours. For graduate students, a person who is enrolled or expected to be enrolled for the equivalent of nine or more semester credit hours.

(8) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(9) Half-time student--For undergraduates, a person who is enrolled or is expected to be enrolled for the equivalent of six or more semester credit hours. For graduate students, a person who is enrolled or expected to be enrolled for the equivalent of 4.5 or more semester credit hours.

(10) Issue date--The date on which the Board's centralized processing system generates a voucher requesting a grant disbursement for specific students.

(11) Period of enrollment--The term or terms within the current state fiscal year (September 1-August 31) for which the student was enrolled in an approved institution and met all the eligibility requirements for an award through this program.

(12) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(13) 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 who are eligible to pay resident tuition rates are not residents of Texas.

(14) Tuition Equalization Grant Need (TEG need)--The total amount of Tuition Equalization Grant funds that full-time students at an approved institution would be eligible to receive if the program were fully funded.

§22.23.Institutions.

(a) Eligibility.

(1) Any college or university defined as a private or independent institution of higher education by Texas Education Code, §61.003, or that is located in Texas and meets the same program standards and accreditation as public institutions of higher education as determined by the Board, except theological or religious seminaries, are eligible to participate in the Tuition Equalization Grant Program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise grant recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the institution and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of grants or scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting.

(A) Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion.

(i) Such reporting requirements shall include reports specific to allocation and reallocation of grant funds (including the Financial Aid Database Report) as well as progress and year-end reports of program activities.

(ii) Each participating institution shall have its Tuition Equalization Grant Program operations audited on a regular basis by an independent auditor or by an internal audit office that is independent of the financial aid and disbursing offices. Reports on findings and corrective action plans (if necessary) are due to the Board by April 15 each year for institutions on annual audit schedules, and every other April 15 for institutions on biannual audit cycles. Biannual reports must cover operations for the prior two years.

(B) Penalties for Late Reports.

(i) An institution that postmarks or electronically submits a progress report a week or more after its due date will be ineligible to receive additional funding through the reallocation occurring at that time.

(ii) The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10 percent for each progress report that is postmarked or submitted electronically more than a week late.

(iii) The Commissioner may assess more severe penalties against an institution if any report is received by the Board more than one month after its due date. The maximum penalty for a single year is 30 percent of the school's allocation. If penalties are invoked in two consecutive years the institution may be penalized an additional 20 percent.

(C) Appeal of Penalty. If the Commissioner determines that a penalty is appropriate, the institution will be notified by certified mail, addressed to the Program Officer and copied to the Financial Aid Director. Within 21 days from the time that the Program Officer receives the written notice, the institution must submit a written response appealing the Board's decision, or the penalty shall become final and no longer subject to an appeal. An appeal under this section will be conducted in accordance with the rules provided in Chapter 1 of this title (relating to Agency Administration).

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Tuition Equalization Grant Program.

§22.24.Eligible Students.

To receive an award through the program described in the Tuition Equalization Grant Program, a student must:

(1) be enrolled at least half-time in an approved institution;

(2) show financial need;

(3) maintain satisfactory academic progress, as defined by the institution, in his or her program of study;

(4) be a Texas resident, unless such student is a national merit scholarship finalist;

(5) be enrolled in an approved institution, in an individual degree plan;

(6) be required to pay more tuition than is required at a comparable public college or university; and

(7) not be a recipient of any form of athletic scholarship during the semester or semesters he or she is receiving a Tuition Equalization Grant.

§22.25.Award Amounts and Uses.

(a) Funding. Funds awarded through this program may not exceed the amount appropriated by the Legislature for that purpose.

(b) Award Amount.

(1) No award shall exceed the least of:

(A) the student's financial need; or

(B) the difference between the amount of tuition paid at the participating institution and the amount the student would have paid for tuition had he or she been enrolled at a comparable public institution; or

(C) the program maximum.

(2) A grant to a part-time student shall be made on a pro rata basis of a full-time award.

(c) Program maximum. The Tuition Equalization Grant Program award maximum is determined by the Board in accordance with Texas Education Code, Section 61.227 (regarding Payment of Grant Amount).

(d) Uses. No grant disbursed to a student may be used for any purpose other than for meeting the cost of attending an approved institution.

(e) Disbursement Limit. The amount of any disbursement may not exceed the difference between the tuition paid at the private or independent institution attended and the tuition the student would have paid to attend a comparable public institution.

(f) Over Awards. If, at a time after an award has been offered by the institution and accepted by the student, the student receives assistance that was not taken into account in the student's estimate of financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

§22.26.Adjustments to Awards Made through Central Processing.

If a student officially withdraws from enrollment, or for some other reason, the amount of a student's disbursement exceeds the amount the student is eligible to receive except as provided by §22.25(f) of this title (relating to Award Amounts and Uses), the institution shall follow its general institutional refund policy in determining the amount to be returned to the program.

(1) Funds returned to the Board in the form of institution-issued checks shall be accompanied with sufficient documentation to enable the Board to identify the appropriate program and student(s) for whom the funds were originally issued.

(2) If the disbursement to be returned is in the form of a state warrant issued to an individual student, the warrant should be marked "void" and returned to the Board.

(3) Funds should be returned promptly, but in no case shall funds be returned more than 60 days from the issue date.

§22.27.Adjustments to Awards Made through Campus-Based Processing.

If a student officially withdraws from enrollment, or for some other reason, the amount of a student's disbursement exceeds the amount the student is eligible to receive, the institution shall follow its general institutional refund policy in determining the amount to be returned to the program.

(1) Funds administered through campus-based operations do not have to be returned directly to the Board, but should be re-awarded to other eligible students. If funds cannot be re-awarded in a timely manner, they should be returned to the Board in the form of an institution-issued check. Such payment shall be accompanied with sufficient documentation to enable the Board to identify the appropriate program for which the funds were originally issued.

(2) Funds should be returned promptly, but in no case shall they be returned more than 60 days from the issue date.

§22.28.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment.

(b) Funds that are disbursed retroactively must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.29.Allocation and Reallocation of Funds.

(a) Allocations. Available program funds will be allocated to each participating institution in proportion to each institution's Tuition Equalization Grant need.

(b) Reallocations. Institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber the program funds that have been allocated to them. On that date, institutions lose claim to any unencumbered funds, and the unencumbered funds are available to the Board for reallocation to other institutions. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed.

§22.30.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

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 April 29, 2004.

TRD-200402885

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter C. PROVISIONS FOR THE LEVERAGING EDUCATIONAL ASSISTANCE GRANT FOR STUDENTS AT INDEPENDENT INSTITUTIONS

19 TAC §22.41, §22.42

The Texas Higher Education Coordinating Board proposes amendments to §§22.41 and 22.42 concerning the Provisions for the Leveraging Educational Assistance Grant Program for Students at Independent Institutions. Specifically, the proposed amendments would reflect the federal name change for the program from the State Student Incentive Grant Program to the Leveraging Educational Assistance Grant Program. Information has also been added to reflect federal student eligibility requirements and restrictions that recipients have to meet in addition to the requirements of the Tuition Equalization Grant Program.

Ms. Lois Hollis, Assistant Commissioner for Student Services has determined that for each year of the first five years the amendments are in effect, there will not be any fiscal implication 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 section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the amendments may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The amendments are proposed under the Texas Education Code, §61.067, which authorizes the Coordinating Board to contract with any agency of the United States, and under Title IV, Part A, Subpart 4 of the Higher Education Act of 1965.

The amendments affect Texas Education Code §61.067 and the administration of the Leveraging Educational Assistance Grant Program for Students at Independent Institutions.

§22.41.Adoption of Tuition Equalization Grant Program Rules.

The rules and regulations for the Tuition Equalization Grant Program, as contained in §§22.21-22.28 of this title (relating to Provisions for the Tuition Equalization Grant Program), are hereby adopted for use in the administration of any federal funds received by the Board [ board ] through the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program for Students at Independent Institutions [ for the purpose of making grants to students at independent institutions ], other than as excepted in §22.42 of this title (relating to Provisions for the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program for Students at Independent Institutions). Federal requirements governing the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program are contained in 45 C.F.R. Part 192.

§22.42.Exceptions to Tuition Equalization Grant Rules.

(a) The conditions outlined in this section are intended to cause compatibility between the Tuition Equalization Grant Program rules and regulations and the federal regulations for the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program. Conditions which apply in the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program which differ from and override similar conditions in the Tuition Equalization Grant Program are as follows:

(1) Students qualifying for a Leveraging Educational Assistance Grant [ State Student Incentive Grant ] must be a national of the United States or be in the United States for other than a temporary purpose and intend to become a permanent resident.

(2) Students at private or independent institutions qualifying for a Leveraging Educational Assistance Grant [ State Student Incentive Grant ] must be the recipient of a grant through the Tuition Equalization Grant Program in an amount equal to or greater than the grant received through the Leveraging Educational Assistance Grant Program [ State Student Incentive Grant Program for Students at Independent Institutions ].

(3) Students at private or independent institutions receiving both Leveraging Educational Assistance Grant funds and Special Leveraging Educational Assistance Grant Funds may not use the same Tuition Equalization Grant funds to match both federal programs. A Tuition Equalization Grant dollar may only be matched by a Leveraging Educational Assistance Grant dollar or a Special Leveraging Assistance Grant dollar - not by both.

(4) Students who owe a refund on a grant received under the Federal Pell Grant, Federal Supplemental Educational Opportunity Grant, Leveraging Educational Assistance Grant or Special Leveraging Educational Assistance Grant Program are not eligible to receive awards through the Leveraging Educational Assistance Grant Program.

(5) Students in default on a loan made, insured, or guaranteed under the Federal Perkins Loan, Federal Family Education Loan Program, or the Federal Direct Loan Program are not eligible to receive awards through the Leveraging Educational Assistance Grant Program.

(b) Grants through the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program for Students at Independent Institutions may be used to meet any cost related to a student's education [ are not restricted so as to apply to tuition costs only ].

(c) Because the use of grants through the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program for Students at Independent Institutions is not restricted to payment for services that the grant recipient will [ necessarily ] purchase from the approved institution, the refund policy of the Tuition Equalization Grant Program cannot always apply in the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program for Students at Independent Institutions. However, if the institutional refund policy of the approved institution causes money to be available for refund to a withdrawing grant recipient, then such funds shall be refunded to the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program for Students at Independent Institutions up to the limits of and otherwise consistent with the Tuition Equalization Grant Program refund policy. Further, the approved institution shall encourage a [ the ] withdrawing grant recipient to make refund to the Leveraging Educational Assistance Grant [ State Student Incentive Grant ] Program for Students at Independent Institutions consistent with the intent of the Tuition Equalization Grant Program refund policy.

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 April 29, 2004.

TRD-200402886

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter D. PROVISIONS FOR THE TEXAS PUBLIC GRANT PROGRAMS

19 TAC §§22.61 - 22.66

(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 Chapter 22, Subchapter D, §§22.61 - 22.66 concerning Provisions for the Texas Public Grant Program, in its entirety. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was posted in the Texas Register on February 20, 2004. In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the rules repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

Comments on the proposal may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; Lois.Hollis@thecb.state.tx.us.

The repeal of these sections are proposed under the Texas Education Code, §56.034, which authorizes the Coordinating Board to review guidelines and to reject guidelines it determines to be contrary to the purposes of the sections.

The repeal of the sections affect the Texas Education Code, Chapter 56, Subchapter C. §§56.033 - 56.039.

§22.61.Purpose.

§22.62.Eligible Institutions.

§22.63.Program Titles and Distinctions.

§22.64.Eligible Students.

§22.65.Award Amounts.

§22.66.Allocations and Reallocations.

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 April 29, 2004.

TRD-200402888

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter D. PROVISIONS FOR THE TEXAS PUBLIC EDUCATIONAL GRANT PROGRAMS

19 TAC §§22.61 - 22.63

The Texas Higher Education Coordinating Board proposes new §§22.61 - 22.63, concerning the Texas Public Grant Program. Specifically, the proposed new sections implement Texas Education Code §§56.033 - 56.039 and remove references to programs that have been repealed (the Refund Texas Public Educational Grant Program and Tax Reimbursement Grant Program) and to the Public Student Incentive Grant, which does not provide the Board with rule-making authority. The new sections simply state the statutory assignments to the Board with regard to the Texas Public Educational Grant 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 not be any fiscal implication 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 new sections are in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The new sections are proposed under the Texas Education Code, §56.034, which authorizes the Coordinating Board to review guidelines and to reject guidelines it determines to be contrary to the purposes of the section.

The new sections affect Texas Education Code, Chapter 56, Subchapter C, §§56.033 - 56.039.

§22.61.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 56, Subchapter C. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.034, and 56.036 - 56.039.

(b) The purpose of the Texas Public Education Grant Programs is to provide need-based grants of money to students attending public institutions of higher education in Texas.

§22.62.Participating Institutions.

All institutions of higher education as defined in Texas Education Code, §61.003(8), are required to set tuition revenues aside for making grants through the Texas Public Educational Grant Program.

§22.63.Coordinating Board Responsibilities.

The Texas Higher Education Coordinating Board shall perform the following services with regard to the Texas Public Educational Grant Program:

(1) Review guidelines submitted by institutions for the administration of the Texas Public Educational Grant program on their campuses to ensure the program is being conducted in a manner that will fulfill the purpose of the program. If guidelines are rejected, the Board is to provide the institution a written explanation and an opportunity to submit revised guidelines.

(2) Accept funds transferred to the Board by institutions for use in matching federal or state grant funds, assure such matching funds are used to assist institutions and students with the greatest financial need, and return any funds on deposit from institutions if matching funds are not available.

(3) Monitor institutional use of program funds and accept funds transferred to the Board by institutions which fail to fully utilize the grant funds set aside in accordance with Texas Public Educational Grant Program requirements. If an institution's year-end TPEG balance, including funds on deposit with the Board, exceeds 150 percent of the amount set aside from tuition, the excess funds shall be sent to the Board which shall use the funds for the Toward EXcellence, Access and Success Grant 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 April 29, 2004.

TRD-200402887

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter F. PROVISIONS FOR THE SCHOLARSHIP PROGRAMS FOR VOCATIONAL NURSING STUDENTS

19 TAC §§22.101 - 22.107

(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 Chapter 22, Subchapter F, §§22.101 - 22.107 concerning Provisions for the Scholarship Programs for Vocational Nursing Students, in its entirety. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was posted in the Texas Register on February 20, 2004. In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the rules repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

Comments on the proposal may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; Lois.Hollis@thecb.state.tx.us.

The repeal of these sections are proposed under the Texas Education Code, §61.652, which authorizes the Coordinating Board to establish and administer a scholarship program for vocational nursing students.

The repeal of the sections affect the Texas Education Code, Chapter 61, Subchapter L. §§61.651, 65.652, and 61.655 - 61.658.

§22.101.Purpose.

§22.102.Eligible Institutions.

§22.103.Program Titles and Distinctions.

§22.104.Eligible Students.

§22.105.Award Amounts.

§22.106.Allocations.

§22.107.Advisory Committee.

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 April 29, 2004.

TRD-200402890

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§22.101 - 22.113

The Texas Higher Education Coordinating Board proposes new §§22.101 - 22.113, concerning the Scholarship Programs for Vocational Nursing Students. Specifically, the proposed new sections implement Texas Education Code §§61.651, 65.652, and 61.655 - 61.658 and have been re-organized, primarily as a result of incorporating the general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules for individual programs so that each program's set of rules is a complete, stand-alone document. The new sections clarify the source of the Board's authority to administer the program, and add definitions to increase consistency in the interpretation of program rules and procedures.

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 not be any fiscal implication 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 new sections are in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The new sections are proposed under the Texas Education Code, §61.652, which authorizes the Coordinating Board to establish and administer a scholarship program for vocational nursing students.

The new sections affect Texas Education Code, Chapter 61, Subchapter L, §§61.651, 65.652, and 61.655 - 61.658.

§22.101.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter L, Financial Aid for Professional Nursing Students and Vocational Nursing Students. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.651, 65.652, and 61.655 - 61.658.

(b) Purpose. The purpose of the Vocational Nursing Student Scholarship Programs is to promote the health care and health educational needs of the citizens of Texas.

§22.102.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, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(4) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(5) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(6) Half-time student--For undergraduates, enrollment for the equivalent of six or more semester credit hours. For graduate students, enrollment for the equivalent of 4.5 or more semester credit hours.

(7) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(8) 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 who are eligible to pay resident tuition rates are not residents of Texas.

(9) Rural--Located in a non-metropolitan area as defined by the United States Census Bureau in its most recent census.

(10) Vocational Nursing Student--A student enrolled in a nonprofit school or program that is preparing the student for licensure as a licensed vocational nurse.

§22.103.Institutions.

(a) Eligibility.

(1) Any college or university that is defined as a public or private or independent institution of higher education by Texas Education Code, §61.003, and that is preparing students for licensure as a licensed vocational nurse is eligible to participate in the Vocational Nursing Scholarship Programs.

(2) No participating school or program may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating school or program must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved school or program must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. A school or program must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise scholarship recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The school or program must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that a school or program has disbursed funds for unauthorized purposes, the Board will notify the school or program and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the school or program shall become primarily responsible for restoring the funds to the Board. No further disbursements of scholarship funds shall be permitted to students at that school or program until the funds have been repaid.

(3) Reporting Requirements/Deadlines. Participating schools or programs must submit vocational nursing enrollment data and (if a public or private institution of higher education) the Financial Aid Database Report in a timely fashion.

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Scholarship Programs for Vocational Nursing Students.

§22.104.Program Titles and Distinctions.

Two scholarship programs for nursing students are to be administered in accordance with this subchapter. Their titles are the Scholarship Program for Rural Vocational Nursing Students and the General Scholarship Program for Vocational Nursing Students. Both programs will be administered in keeping with this subchapter.

(1) Scholarship Program for Rural Vocational Nursing Students. Students eligible for these funds must have graduated from high schools located in rural areas or lived in rural areas of Texas for the 12 months prior to enrollment in a vocational nursing program. Furthermore, Rural Vocational Nursing Scholarship recipients must be attending a nursing program offered in a rural area of the state. Otherwise eligible students attending extension campuses in rural locations are eligible to participate.

(2) General Scholarship Program for Vocational Nursing Students. Funds awarded through this program may go to any eligible student.

§22.105.Eligible Students.

(a) To receive funds through one of the Vocational Nursing Student Scholarship Programs, a student must:

(1) be a resident of Texas;

(2) be enrolled in a vocational nursing program on at least a half-time basis at an approved institution;

(3) show financial need, which acts as one of the upper limits of a student's award through the program; and

(4) maintain satisfactory academic progress in his or her program of study as defined by the institution.

(b) In determining what best promotes the health care and educational needs of this State, the Board shall consider the following factors relating to each applicant. The importance to be given each factor will be determined by the Board in consultation with the advisory committee described in §22.112 of this title (relating to Advisory Committee).

(1) scholastic ability and performance as measured for entering freshmen by high school grade point average, rank and scores on standardized college entrance examination, and for continuing or transfer college students by college grade point average;

(2) financial need;

(3) whether the person is receiving Temporary Assistance for Needy Families or participates in another public welfare program;

(4) employment by a state agency; and

(5) whether the person, at the time of application to participate in the scholarship program is likely to practice in an area with an acute nursing shortage.

§22.106.Award Amounts and Uses.

(a) Funding. Funds awarded through this program may not exceed the amount appropriated by the Legislature for the program plus any gifts, grants and donations of real or personal property from any entity, subject to limitations or conditions set by law, for the purposes of this subchapter.

(b) Award Amounts and Disbursements. The maximum award for a student through any of the programs is the lesser of the student's financial need or $1,500.

(c) Uses. No scholarship disbursed to a student may be used for any purpose other than for meeting the cost of attending an approved institution.

(d) Over Awards. At the time an award is made to a student, it may not exceed the student's need. No future adjustment is required, however, if subsequent awards during the student's period of enrollment cause an over award of $300 or less.

§22.107.Allocations.

Approved institutions shall be invited to submit scholarship applications for eligible students to the Board by July 15. The number of applications which may be submitted by each school will be determined by the Board in keeping with the size of each school's vocational nursing student enrollment.

§22.108.Disbursements to Institutions.

Program officers will submit applications for eligible students to the Board, which will (through the State Comptroller's Office) issue state warrants for the students in accordance with disbursement schedules on the applications.

§22.109.Adjustments to Awards Made through Central Processing.

If a student officially withdraws from enrollment, or for some other reason, the amount of a student's disbursement exceeds the amount the student is eligible to receive except in accordance with §22.106(d) of this title (relating to Award Amounts and Uses), the institution shall follow its general institutional refund policy in determining the amount to be returned to the program.

(1) Funds returned to the Board in the form of institution-issued checks shall be accompanied with sufficient documentation to enable the Board to identify the appropriate program and student(s) for whom the funds were originally issued.

(2) If the disbursement to be returned is in the form of a state warrant issued to an individual student, the warrant should be marked "void" and returned to the Board.

(3) Funds shall be returned promptly, but in no case shall funds be returned more than 60 days from the issue date.

§22.110.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment for which the award is being made.

(b) Funds that are disbursed retroactively must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.111.Selection of Recipients.

The institution's Program Officer must specify a priority number for each application submitted. After applying the selection factors determined in accordance with §22.105(b) of this title (relating to Eligible Students), the Board will follow school priorities to the extent possible in selecting award recipients. However, no single institution will receive more than one award through a program until all institutions submitting valid applications have received at least one award through the program.

§22.112.Advisory Committee.

(a) The Board shall appoint an advisory committee to advise the Board concerning assistance provided under this subchapter to vocational nursing students.

(1) The advisory committee shall consist of:

(A) a chair named by the Board,

(B) one representative named by the License Vocational Nurses Association of Texas;

(C) one representative named by the Texas Organization of Nurse Executives,

(D) one representative named by the Board of Vocational Nurse Examiners of the State of Texas,

(E) two representative of vocational nursing educational programs named by the Texas Association of Vocational Nurse Educators,

(F) one representative named by the Texas Health Care Association, and

(G) one representative named by the Texas Association of Homes for the Aging.

(2) The costs of participation on an advisory committee of a member representing a particular organization or agency shall be borne by that member or the organization or agency the member represents.

(b) The duties of the advisory committee shall be to:

(1) advise the Board on appropriate rules for the Vocational Nursing Student Scholarship Programs;

(2) advise the Board on the priorities of emphasis among the scholarship, the matching fund employment program found in Chapter 21, Subchapter U of this title (relating to the Matching Fund Employment Program for Vocational Nursing Students) and loan repayment program found in Chapter 21, Subchapter Q of this title (relating to the Licensed Vocational Nurses' Student Loan Repayment Program), provided for in Texas Education Code, Chapter 61, Subchapter L;

(3) advise the Board on the amount of money needed to fund adequately the Vocational Nursing Student Scholarship Programs;

(4) advise the Board on the establishment of priorities among the criteria for consideration of application approval which are listed in Texas Education Code, Chapter 61, Subchapter L, and in these rules; and

(5) assist the Board in the dissemination of information on the Vocational Nursing Student Scholarship Programs.

§22.113.Dissemination of Information and Rules.

The Board and its advisory committees are responsible for publishing and disseminating general information and program rules for the programs described in this chapter.

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 April 29, 2004.

TRD-200402889

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter G. PROVISIONS FOR THE SCHOLARSHIP PROGRAMS FOR PROFESSIONAL NURSING STUDENTS

19 TAC §§22.121 - 22.128

(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 Chapter 22, Subchapter G, §§22.121 - 22.128 concerning Provisions for the Scholarship Programs for Professional Nursing Students, in its entirety. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was posted in the Texas Register on February 20, 2004. In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the rules repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

Comments on the proposal may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; Lois.Hollis@thecb.state.tx.us.

The repeal of these sections are proposed under the Texas Education Code, §61.652, which authorizes the Coordinating Board to establish and administer a scholarship program for professional nursing students.

The repeal of the sections affect the Texas Education Code, Chapter 61, Subchapter L. §§61.651, 65.652, and 61.655 - 61.658.

§22.121.Purpose.

§22.122.Eligible Institutions.

§22.123.Program Titles and Distinctions.

§22.124.Eligible Students.

§22.125.Award Amounts.

§22.126.Allocations.

§22.127.Advisory Committee.

§22.128.Refunds.

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 April 29, 2004.

TRD-200402892

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§22.121 - 22.133

The Texas Higher Education Coordinating Board proposes new §§22.121 - 22.133, concerning the Scholarship Programs for Professional Nursing Students. Specifically, the proposed new sections implement Texas Education Code §§61.651, 61.652, and 61.655 - 61.658 and have been re-organized, primarily as a result of incorporating general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules for individual programs so that each program's set of rules is a complete, stand-alone document. The new sections clarify the source of the Board's authority to administer the program and add definitions to increase consistency in the interpretation of program rules and procedures.

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 not be any fiscal implication 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 new sections are in effect, the public benefit anticipated as a result of administering the section 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 cost to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Ms. Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465. Lois.Hollis@thecb.state.tx.us

The new sections are proposed under the Texas Education Code, §61.652, which authorizes the Coordinating Board to establish and administer a scholarship program for professional nursing students.

The new sections affect Texas Education Code, Chapter 61, Subchapter L, §§61.651, 61.652, and 61.655 - 61.658.

§22.121.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter L, Financial Aid for Professional Nursing Students and Vocational Nursing Students. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.651, 61.652, and 61.655 - 61.658.

(b) Purpose. The purpose of the Professional Nursing Student Scholarship Programs is to promote the health care and health educational needs of the citizens of Texas.

§22.122.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, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(4) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(5) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(6) Half-time student--For undergraduates, enrollment for the equivalent of six or more semester credit hours. For graduate students, enrollment for the equivalent of 4.5 or more semester credit hours.

(7) Professional nursing student--A student enrolled in an eligible public, private or independent institution of higher education in a course of study leading to an initial or an advanced degree in professional nursing.

(8) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(9) 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 who are eligible to pay resident tuition rates are not residents of Texas.

(10) Rural--Located in a non-metropolitan area as defined by the United States Census Bureau in its most recent census.

§22.123.Institutions.

(a) Eligibility.

(1) Any college or university defined as a public or private or independent institution of higher education by Texas Education Code, § 61.003, or that is located in Texas and meets the same program standards and accreditation as public institutions of higher education as determined by the Board is eligible to participate in the Professional Nursing Scholarship Programs.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise scholarship recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the institution and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of scholarship funds shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting Requirements/Deadlines. Participating institutions must submit professional nursing student enrollment data and the Financial Aid Database Report to the Board in a timely fashion.

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Scholarship Programs for Professional Nursing Students.

§22.124.Program Titles and Distinctions.

Four scholarship programs for nursing students are to be administered in accordance with this subchapter. Their titles are the Scholarship Program for Rural Professional Nursing Students, the Scholarship Program for Licensed Vocational Nurses Becoming Professional Nurses, the Scholarship Program for Rural BSN and Graduate Nursing Students, and the General Scholarship Program for Professional Nursing Students. All four programs will be administered in keeping with this subchapter.

(1) Scholarship Program for Rural Professional Nursing Students. Students eligible for these funds must have graduated from high schools located in rural areas, or lived in such a rural area of Texas for the 12 months prior to enrollment in a professional nursing program. Furthermore, Rural Professional Nursing Scholarship recipients must be attending a nursing program offered in a rural area of the state. Otherwise eligible students enrolled in extended campuses in rural locations are eligible to participate.

(2) Scholarship Program for Licensed Vocational Nurses Becoming Professional Nurses. Students eligible for these funds must be Licensed Vocational Nurses who are enrolled in a program leading to licensure as a Professional Nurse.

(3) Scholarship Program for Rural BSN and Graduate Nursing Students. Students eligible for these funds must have graduated from high schools located in rural areas or must have lived in a rural area of Texas for the 12 months prior to enrollment in a professional nursing program. Rural BSN and graduate nursing students may be attending a nursing program offered at any eligible institution in the State.

(4) General Scholarship Program for Professional Nursing Students. Funds awarded through this program may go to any eligible student.

§22.125.Eligible Students.

(a) To receive funds through one of the Professional Nursing Student Scholarship Programs, a student must:

(1) be a resident of Texas;

(2) be enrolled on at least a half-time basis at an approved institution;

(3) show financial need, which acts as one of the upper limits of a student's award through the program;

(4) maintain satisfactory academic progress in his or her program of study as defined by the institution; and

(5) be enrolled in a professional nursing program and, (if applying for an award through the Scholarship Program for Licensed Vocational Nurses studying to become Professional Nurses), be a Licensed Vocational Nurse.

(b) In determining what best promotes the health care and educational needs of this State, the Board shall consider the following factors relating to each applicant. The importance given each factor will be determined by the Board in consultation with the advisory committee described in §22.132 of this title (relating to Advisory Committee).

(1) scholastic ability and performance as measured for entering freshmen by high school grade point average, rank and scores on standardized college entrance examination, and for continuing or transfer college students by its college grade point average;

(2) geographical area of intended nursing practice;

(3) financial need;

(4) whether the person is receiving Temporary Assistance for Needy Families or participates in another public welfare program;

(5) employment by a state agency;

(6) employment on a nursing school faculty of an eligible institution; and

(7) whether the person at the time of application to participate in the scholarship program is a practicing nurse in an area with an acute nursing shortage or is likely to practice in such an area.

§22.126.Award Amounts and Uses.

(a) Funding. Funds awarded through this program may not exceed the amount appropriated by the Legislature for that program plus any gifts, grants and donations of real or personal property from any entity, subject to limitations or conditions set by law, for the purposes of this subchapter.

(b) Award Amounts and Disbursements. The maximum award for a student through any of the programs is the lesser of the student's financial need or the program maximum as stated below:

(1) for the Scholarship Program for Rural Professional Nursing Students - $1,500 per year for those enrolled in an associate degree program; $2,500 for each student enrolled in a baccalaureate or graduate degree program;

(2) for the Scholarship Program for Licensed Vocational Nurses Becoming Professional Nurses - $1,500 for students enrolled in an associate degree program; $2,500 for those enrolled in a baccalaureate or graduate degree program;

(3) for the Scholarship Program for Rural BSN and Graduate Nursing Students - $2,500 per year; and

(4) for the General Scholarship for Professional Nursing Students - $2,000 per year.

(c) Uses. No scholarship disbursed to a student may be used for any purpose other than for meeting the cost of attending an approved institution.

(d) Over Awards. At the time an award is made to a student, it may not exceed the student's need. No future adjustment is required, however, if subsequent awards during the student's period of enrollment cause an over award of $300 or less.

§22.127.Allocations.

Approved institutions shall be invited to submit scholarship applications for eligible students to the Board by July 15. The number of applications which may be submitted by each school will be determined by the Board in keeping with the size of each school's professional nursing student enrollment. The Board shall notify each school how many applications may be submitted by April 30 of each year.

§22.128.Disbursements to Institutions.

Program officers will submit applications for eligible students to the Board, which will (through the State Comptroller's Office) issue state warrants for the students in accordance with disbursement schedules on the applications.

§22.129.Adjustments to Awards Made through Central Processing

If a student officially withdraws from enrollment, or for some other reason, the amount of a student's disbursement exceeds the amount the student is eligible to receive except in accordance with §22.126(d) of this title (relating to Award Amounts and Uses), the institution shall follow its general institutional refund policy in determining the amount to be returned to the program.

(1) Funds returned to the Board in the form of institution-issued checks shall be accompanied with sufficient documentation to enable the Board to identify the appropriate program and student(s) for whom the funds were originally issued.

(2) If the disbursement to be returned is in the form of a state warrant issued to an individual student, the warrant should be marked "void" and returned to the Board.

(3) Funds shall be returned promptly, but in no case shall funds be returned more than 60 days from the issue date.

§22.130.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment for which the award is being made.

(b) Funds that are disbursed retroactively must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.131.Selection of Recipients.

The institution's Program Officer must specify a priority number for each application submitted. After applying the selection factors listed in §22.125(b) of this title (relating to Eligible Students), the Board will follow school priorities to the extent possible in selecting award recipients. However, no single institution will receive more than one award through a program until all institutions submitting valid applications have received at least one award through the program.

§22.132.Advisory Committee.

(a) The Board shall appoint an advisory committee to advise the Board concerning assistance provided under this subchapter to professional nursing students.

(1) The advisory committee shall consist of:

(A) a chair named by the Board,

(B) one representative named by the Texas Nurses Association,

(C) one representative named by the Texas Organization of Nurse Executives,

(D) one representative named by the Board of Nurse Examiners,

(E) a head of each of the three types of professional nursing educational programs, named by the deans and directors of nursing programs in this state,

(F) a representative of graduate nursing education named by the deans and directors of nursing programs in this state,

(G) one representative named by the Texas Health Care Association, and

(H) one representative named by the Texas Association of Homes for the Aging.

(2) The costs of participation on an advisory committee of a member representing a particular organization or agency shall be borne by that member or the organization or agency the member represents.

(b) The duties of the advisory committee shall be to:

(1) advise the Board on appropriate rules for the Professional Nursing Student Scholarship Programs;

(2) advise the Board on the priorities of emphasis among the scholarship, the matching fund employment program found in Chapter 21, Subchapter T of this title (relating to the Matching Fund Employment Program for Professional Nursing Students) and loan repayment program found in Chapter 21, Subchapter P of this title (relating to the Professional Nurses' Student Loan Repayment Program), provided for in Texas Education Code, Chapter 61, Subchapter L;

(3) advise the Board on the amount of money needed to fund adequately the Professional Nursing Student Scholarship Programs;

(4) advise the Board on the establishment of priorities among the criteria for consideration of application approval which are named in Texas Education Code, Chapter 61, Subchapter L, and in these rules; and

(5) assist the Board in the dissemination of information on the Professional Nursing Student Scholarship Programs.

§22.133.Dissemination of Information and Rules.

The Board and its advisory committees are responsible for publishing and disseminating general information and program rules for the programs described in this chapter.

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 April 29, 2004.

TRD-200402891

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter H. PROVISIONS FOR THE LICENSE PLATE INSIGNIA SCHOLARSHIP PROGRAM

19 TAC §§22.141 - 22.148

(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 Chapter 22, Subchapter H, §§22.141 - 22.148 concerning Provisions for the License Plate Insignia Scholarship Program, in its entirety. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; Lois.Hollis@thecb.state.tx.us.

The repeal is proposed under the Texas Transportation Code, §502.270, which authorizes the Transportation Department to issue for passenger cars and light trucks specially designed license plates that include the name and insignia of either an institution of higher education as defined by §61.003(8), Texas Education Code, or a private college or university described by §61.222, Texas Education Code, and allows a portion of the money collected from the issuance of the license plates to be used for scholarships to students who demonstrate a need for financial assistance under Texas Higher Education Coordinating Board rule.

The repeal affects the Texas Transportation Code, §502.270, Collegiate License Plates.

§22.141.Purpose.

§22.142.Eligible Institutions.

§22.143.Eligible Students.

§22.144.Award Amounts.

§22.145.Funding.

§22.146.Allocations and Reallocations.

§22.147.Disbursements.

§22.148.Year-end Reports from Public Universities.

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 April 29, 2004.

TRD-200402893

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§22.141 - 22.148

The Texas Higher Education Coordinating Board proposes new §§22.141 - 22.148, concerning the Provisions for the License Plate Insignia Scholarship Program. Specifically, the proposed new sections implement the Texas Transportation Code §502.270 and have been re-organized, primarily as a result of incorporating general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules for individual programs so that each program's set of rules is a complete, stand-alone document. The new sections clarify the source of the Board's authority to administer the program and add definitions to increase consistency in the interpretation of program rules and procedures.

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 not be any fiscal implication to state or local government as a result of enforcing or administering the sections.

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 cost to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The new sections are proposed under the Texas Transportation Code, §502.270, which authorizes the Transportation Department to issue for passenger cars and light trucks specially designed license plates that include the name and insignia of either an institution of higher education as defined by §61.003(8), Texas Education Code, or a private college or university described by Texas Education Code, §61.222, and allows a portion of the money collected from the issuance of the license plates to be used for scholarships to students who demonstrate a need for financial assistance under Texas Higher Education Coordinating Board rule.

The new sections affect Texas Transportation Code, §502.270, Collegiate License Plates.

§21.141.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Transportation Code regarding Collegiate License Plates. These rules establish procedures to administer the subchapter as prescribed in the Texas Transportation Code, §502.270, generally known as the License Plate Insignia Scholarship Program.

(b) Purpose. The purpose of the License Plate Insignia Scholarship Program is to provide financial assistance to needy students attending eligible public or independent colleges or universities in Texas.

§22.142.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) Cost of Attendance--A Board-approved estimate of the expenses incurred by a typical financial aid recipient in attending a particular college or university. It includes direct educational costs (tuition, fees, books and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(3) Department--The Department of Highways and Public Transportation.

(4) Expected Family Contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(5) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution and any gift aid for which the student is entitled. The cost of education and family contribution figures are to be determined in accordance with Board guidelines.

§22.143.Institutions.

(a) Eligibility.

(1) Any college or university defined as a public, private or independent institution of higher education by Texas Education Code, §61.003, is eligible to participate in the License Plate Insignia Scholarship Program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise grant recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the institution and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of grants or scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion. Such reporting requirements shall include the Financial Aid Database Report as well as progress and year-end reports of program activities.

(4) In addition, the institution must meet the Department of Transportation's requirements for designing and issuing license plates bearing the institution's insignia.

§22.144.Eligible Students.

In order to qualify for an award through this program a student must demonstrate financial need.

§22.145.Award Amounts and Uses.

(a) Funding. No awards may be made by an institution in excess of the amount of money on balance at the State Comptroller's Office for that institution, generated through the sale of special license plates bearing the institution's insignia.

(1) The License Plate Insignia Scholarship Program is funded through funds paid to the department for the purchase of automobile license plates bearing the insignia of Texas colleges and universities. The amount of money available for scholarships to students at each institution will depend on the number of license plates purchased with that school's insignia.

(2) Funds for license plates bearing the insignia of public senior colleges and universities will be held on deposit by the State Comptroller's Office, for the institutions to draw down as needed. Funds for license plates bearing the insignia of other public, private and independent institutions will be deposited in the State Treasury to the credit of the Board, which in turn will allocate the funds to the relevant institutions.

(b) Award Amount. No award received through this program may exceed a student's financial need.

(c) Uses. No scholarship disbursed to a student may be used for any purpose other than for meeting the cost of attending an approved institution.

(d) Over Awards. If, at a time after an award has been offered by the institution and accepted by the student, the student receives assistance that was not taken into account in the student's estimate of financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

§22.146.Allocations and Reallocations.

Each institution will have at its disposal the portion of funds generated through the sale of its own license plates in accordance with Texas Transportation Code, §506.270(d).

§22.147.Disbursements.

Awards are to be made to eligible students at each institution in accordance with these rules and regulations.

(1) For public senior colleges and universities. The department deposits funds from purchased license plates directly into the institution's account at the State Comptroller's Office. Therefore, public senior colleges and universities may draw from those funds as appropriate to make awards to eligible students.

(2) For other public institutions. Funds will be made available to the institution through the Board. On a regular basis (at least monthly), the Board will send the institution a state warrant for the amount of License Plate Insignia Scholarship funds generated through the sale of license plates and deposited by the department in the State Comptroller's Office for that institution.

(3) For private or independent institutions. At the beginning of each fiscal year and periodically as funds are deposited in the State Comptroller's Office by the department, the Board will notify the institution as to the amount of funds available for awarding as scholarships. On receipt of a student's application and certification by the financial aid officer of the amount of the scholarship for which the student is eligible, the Board shall forward funds to the institution for disbursement to the students.

§22.148.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

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 April 29, 2004.

TRD-200402894

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


Subchapter I. PROVISIONS FOR THE FIFTH-YEAR ACCOUNTING STUDENT SCHOLARSHIP PROGRAM

19 TAC §§22.161 - 22.169

(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 Chapter 22, Subchapter I, §§22.161 - 22.169, concerning Provisions for the Fifth-Year Accounting Student Scholarship Program, in its entirety. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; Lois.Hollis@thecb.state.tx.us.

The repeal is proposed under the Texas Education Code, §61.7530, which authorizes the Coordinating Board to establish and administer scholarships for fifth-year accounting students.

The repeal affects the Texas Education Code, Chapter 61, Subchapter N, §§61.751 - 61.760.

§22.161.Purpose.

§22.162.Eligible Institutions.

§22.163.Eligible Students.

§22.164.Award Amounts.

§22.165.Funding.

§22.166.Allocations and Reallocations.

§22.167.Disbursements.

§22.168.Advisory Committee.

§22.169.Reporting Requirements.

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 April 29, 2004.

TRD-200402896

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


19 TAC §§22.161 - 22.172

The Texas Higher Education Coordinating Board proposes new §§22.161 - 22.172, concerning the Provisions for the Fifth-Year Accounting Students Scholarship Program. Specifically, the proposed new sections implement the Texas Education Code §§61.751 - 61.760 and have been re-organized, primarily as a result of incorporating general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules for individual programs so that each program's set of rules is a complete, stand-alone document. The new sections clarify the source of the Board's authority to administer the program and add definitions to increase consistency in the interpretation of program rules and procedures, state the Board's authority to penalize institutions failing to meet program requirements and provide institutions more detail regarding Board procedures in allocating and reallocating funds.

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 not be any fiscal implication to state or local government as a result of enforcing or administering the sections.

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 cost to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The new sections are proposed under the Texas Education Code, §61.753, which authorizes the Coordinating Board to establish and administer scholarships for fifth-year accounting students.

The new sections affect the Texas Education Code, Chapter 61, Subchapter N, §§61.751 - 61.760.

§22.161.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter N, Scholarships for Fifth-Year Accounting Students. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.751 - 61.758.

(b) The purpose of the Fifth-Year Accounting Student Scholarship Program is to promote the professional and educational needs of the state; increase the number of highly trained and educated professional accountants available to serve the residents of this state; improve the state's business environment and encourage economic development and financial stability; and identify, recognize and support outstanding scholars who plan to pursue careers in accounting.

§22.162.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) Central processing--An approach to administering a scholarship program by having institutions submit application information to the Board, which then issues funds to students in keeping with a schedule specified by the institution in the application data.

(3) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(4) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(5) Encumbered funds--Program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(6) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(7) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(8) Half-time student--For undergraduates, a person who is enrolled or is expected to be enrolled for the equivalent of six or more semester credit hours. For graduate students, a person who is enrolled or expected to be enrolled for the equivalent of 4.5 or more semester credit hours.

(9) Issue date--The date on which the Board's centralized processing system generates a voucher requesting a grant disbursement for specific students.

(10) Period of enrollment--The term or terms within the current state fiscal year (September 1 - August 31) for which the student was enrolled in an approved institution and met all the eligibility requirements for an award through the program described in this chapter.

(11) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(12) 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 who are eligible to pay resident tuition rates are not residents of Texas.

§22.163.Institutions.

(a) Eligibility.

(1) Any college or university defined as a public, private or independent institution of higher education by Texas Education Code, §61.003, is eligible to participate in the Fifth-Year Accounting Student Scholarship Program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age or disability exclude an individual from participation in, or deny the benefits of the program descried in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive scholarships in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise scholarship recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the institution and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of scholarship funds shall be permitted to students at that institution until the funds have been repaid.

(d) Reporting.

(1) Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion. Such reporting requirements shall include reports specific to allocation and reallocation of scholarship funds (including the Financial Aid Database Report) as well as progress and year-end reports.

(2) Penalties for Late Reports.

(A) An institution that postmarks or electronically submits a progress report a week or more after its due date will be ineligible to receive additional funding through the reallocation occurring at that time.

(B) The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10 percent for each progress report that is postmarked or submitted electronically more than a week late.

(C) The Commissioner may assess more severe penalties against an institution if any report is received by the Board more than one month after its due date. The maximum penalty for a single year is 30 percent of the school's allocation. If penalties are invoked two consecutive years, the institution may be penalized an additional 20 percent.

(3) Appeals. If the Commissioner determines that a penalty is appropriate, the institution will be notified by certified mail, addressed to the Program Officer. Within 21 days from the time that the Program Officer receives the written notice, the institution must submit a written response appealing the Board's decision, or the penalty shall become final and no longer subject to an appeal. An appeal under this section will be conducted in accordance with the rules provided in Chapter 1 of this title.

(e) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the Fifth-Year Accounting Student Scholarship Program.

§22.164.Eligible Students.

(a) To receive funds, a student must:

(1) be enrolled on at least a half-time basis at an approved institution;

(2) maintain satisfactory academic progress in his or her program of study as defined by the institution; and

(3) have completed at least 120 credit hours of college work, including at least 15 hours of accounting;

(4) sign a written statement confirming his/her intent to take the written examination conducted by the Texas State Board of Public Accountancy for the purpose of granting a certificate of "certified public accountant";

(5) confirm he or she has not yet taken the CPA examination;

(6) maintain a cumulative grade point average, as determined by the institution, that is equal to or greater than the grade point average required by the institution for graduation; and

(7) be enrolled in the additional hours of study required by Texas Occupation Code, §901.256(2)(A) (concerning Work Experience Requirements).

(b) In selecting recipients the Program Officer shall consider at a minimum the following factors relating to each applicant:

(1) financial need, which acts as an upper limit to the amount the student may receive;

(2) scholastic ability and performance as measured by the student's cumulative college grade point average as determined by the institution in which the student is enrolled;

(3) ethnic or racial minority status; and

(4) Texas residency.

§22.165.Award Amounts and Uses.

(a) Funding. Funds awarded through this program may not exceed the amount appropriated by the Legislature for that program plus any gifts, grants and donations of real or personal property from any entity, subject to limitations or conditions set by law, for the purposes of this subchapter.

(b) Award Amount and Disbursements.

(1) The maximum annual award for a student through this program is $3,000 less any amount received through this program in the past.

(2) No individual may receive an aggregate total of more than $3,000 through the program.

(3) An individual student's scholarship is to be paid out in the form of at least one disbursement per semester.

(c) Uses. No scholarship disbursed to a student may be used for any purpose other than for meeting the cost of attending an approved institution.

(d) Over Awards. At the time an award is made to a student, it may not exceed the student's need. No future adjustment is required, however, if subsequent awards during the student's period of enrollment cause an over award of $300 or less.

§22.166.Allocations and Reallocations.

(a) Allocations. One third of the funds allocated to participating institutions shall be allocated by the Board in proportion to each institution's number of students graduating with degrees in accounting in the previous year. Two thirds of the funds will be allocated based on the number of students reported to have significant amounts of financial need via each institution's prior year Financial Aid Database Report.

(b) Reallocations. Unless otherwise indicated, institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber all funds allocated to them. On that date, institutions lose claim to any unencumbered funds and the unencumbered funds are available to the Board for reallocation to other institutions. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed.

§22.167.Disbursements to Institutions.

(a) Public Universities and Technical Colleges. Funds allocated to each institution will be transferred to a cost center at the State Comptroller's Office, to be drawn down by the institution as needed to cover local awards.

(b) Private and Independent Institutions and Public Community Colleges. Funds allocated to each institution will be accessed through the Board. Program officers will submit applications for eligible students to the Board, which will issue state warrants for the students in accordance with disbursement schedules on the applications.

§22.168.Adjustments to Awards Made through Central Processing.

If a student officially withdraws from enrollment, or for some other reason, the amount of a student's disbursement exceeds the amount the student is eligible to receive except in accordance with §22.165(d) of this title (relating to Award Amounts and Uses), the institution shall follow its general institutional refund policy in determining the amount to be returned to the program.

(1) Funds returned to the Board in the form of institution-issued checks shall be accompanied with sufficient documentation to enable the Board to identify the appropriate program and student(s) for whom the funds were originally issued.

(2) If the disbursement to be returned is in the form of a state warrant issued to an individual student, the warrant should be marked "void" and returned to the Board.

(3) Funds shall be returned promptly, but in no case shall funds be returned more than 60 days from the issue date.

§22.169.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment for which the award is being made.

(b) Funds that are disbursed retroactively must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.170.Advisory Committee.

(a) The Board shall appoint an advisory committee to advise the Board concerning assistance provided under this subchapter to fifth-year accounting students.

(1) The advisory committee shall consist of:

(A) a chair named by the Board;

(B) one representative named by the Texas State Board of Public Accountancy;

(C) one representative named by the Texas Society of Certified Public Accountants;

(D) a Texas representative of the American Accounting Association named by that organization;

(E) one representative named by the National Association of Black Accountants;

(F) one representative named by the American Association of Hispanic Certified Public Accountants; and

(G) two representatives named by the Board who are the chairs of accounting departments at Texas colleges and universities, at least one of whom must be a representative of a private college or university and at least one other of whom must be a representative from a college or university that primarily serves minority students.

(2) The costs of participation on an advisory committee of a member representing a particular organization or agency shall be borne by that member or the organization or agency the member represents.

(b) The duties of the advisory committee shall be to advise the Board on:

(1) how the scholarships provided for under this subchapter should be established and administered to best promote the public purpose of the scholarships;

(2) the amount of money needed to adequately fund the scholarship program;

(3) setting priorities among the factors identified by §22.164(b) of this title (relating to Eligible Students).

§22.171.Reporting Requirements.

Before January 15 of each odd-numbered year, the Board shall report to the Legislature concerning the scholarship program. The report must include:

(1) the number and amount of scholarships awarded in the two calendar years preceding the year in which report is due; and

(2) the number of minority students, by racial or ethnic background, who have been awarded scholarships during that two-year period.

§22.172.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the program described in this subchapter.

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 April 29, 2004.

TRD-200402895

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


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

19 TAC §§22.225 - 22.234

(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 Chapter 22, Subchapter L, §§22.225 - 22.234, concerning Toward EXcellence, Access & Success (TEXAS) Grant Program, in its entirety. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; Lois.Hollis@thecb.state.tx.us.

The repeal is proposed under the Texas Education Code, §56.303, which provides the Coordinating Board the authority to administer the TEXAS Grant program and to adopt any rules necessary to implement the program.

The repeal affects the Texas Education Code, §§56.301 - 56.311.

§22.225.Authority and Purpose.

§22.226.Definitions.

§22.227.Eligible Institutions.

§22.228.Eligible Students.

§22.229.Hardship Provisions.

§22.230.Priorities in Funding.

§22.231.Priority in Awards to Students.

§22.232.Awards and Adjustments.

§22.233.Dissemination of Information and Rules.

§22.234.Funds Provided from Student Deposit Fees.

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 April 29, 2004.

TRD-200402898

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


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

19 TAC §§22.225 - 22.236

The Texas Higher Education Coordinating Board proposes new §§22.225 - 22.236, concerning the Toward EXcellence, Access & Success (TEXAS) Grant Program. Specifically, the proposed new sections implement the Texas Education Code §§56.301 - 56.311 and have been re-organized, primarily as a result of incorporating general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules for individual programs so that each program's set of rules is a complete, stand-alone document. The new sections add definitions to clarify program requirements; provide detailed information regarding calculations related to program academic progress requirements, and provide additional information about procedures for allocating, reallocating and disbursing funds to institutions.

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 not be any fiscal implication to state or local government as a result of enforcing or administering the sections.

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 cost to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

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

The new sections affect the Texas Education Code, §§56.301 - 56.311.

§22.225.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter M, Toward EXcellence, Access & Success (TEXAS) Grant Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.301 - 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) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses.)

(4) Encumbered funds--Program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(5) Enrolled on at least a three-quarter basis--Enrolled for the equivalent of nine semester credit hours in a regular semester.

(6) Entering undergraduate--A student enrolled in the first 30 semester credit hours or their equivalent, excluding hours taken during dual enrollment in high school and courses for which the student received credit through examination.

(7) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(8) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(9) Initial year award--The grant award made in the student's first year in the TEXAS Grant program, typically made up of a fall and spring disbursement.

(10) Period of enrollment--The term or terms within the current state fiscal year (September 1 - August 31) for which the student was enrolled in an approved institution and met all the eligibility requirements for an award through this program.

(11) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(12) Recommended or advanced high school programs--The curriculum specified in the Texas Education Code, §28.025, and the rules promulgated there under by the State Board of Education.

(13) 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 who are eligible to pay resident tuition rates are not residents of Texas.

§22.227.Institutions.

(a) Eligibility.

(1) Public and private or independent institutions of higher education as defined in §61.003 of the Texas Education Code are eligible to participate in the TEXAS Grant program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise grant recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and financial aid officer and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of grants or scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting.

(A) Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion. Such reporting requirements shall include reports specific to allocation and reallocation of grant funds (including the Financial Aid Database Report) as well as progress and year-end reports of program activities.

(B) Penalties for Late Reports.

(i) An institution that postmarks or electronically submits a progress report a week or more after its due date will be ineligible to receive additional funding through the reallocation occurring at that time.

(ii) The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10% for each progress or year-end report that is postmarked or submitted electronically more than a week late.

(iii) The Commissioner may assess more severe penalties against an institution if any report is received by the Board more than one month after its due date. The maximum penalty for a single year is 30% of the school's allocation. If penalties are invoked in two consecutive years the institution may be penalized an additional 20%.

(C) Appeal of Penalty. If the Commissioner determines that a penalty is appropriate, the institution will be notified by certified mail, addressed to the Program Officer with a copy sent to the financial aid officer. Within 21 days from the time that the Program Officer receives the written notice, the institution must submit a written response appealing the Board's decision, or the penalty shall become final and no longer subject to an appeal. An appeal under this section will be conducted in accordance with the rules provided in Chapter 1 of this title.

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the TEXAS Grant Program.

§22.228.Eligible Students.

(a) To receive 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) show financial need;

(3) have applied for any available financial aid assistance;

(4) not have been granted a baccalaureate degree;

(5) be a graduate of an accredited high school in this state not earlier than the 1998 - 1999 school year;

(6) have completed the Recommended or Advanced High School Program, or if a graduate of a private high school, its equivalent, unless the student:

(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;

(7) enroll in an undergraduate degree or certificate program at an approved 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.

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

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

(2) show financial need;

(3) be enrolled at least three-quarter time;

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

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

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

(A) as of the end of the person's first academic year he or she meets the satisfactory academic progress requirements as indicated by the financial aid office of his or her institution.

(i) If a student ends his/her first year in the program without meeting the academic progress requirements of his/her institution, he/she may not get back into the program until the institution has determined that the student has met its academic performance requirements.

(ii) A grant recipient who is below program grade point average requirements as of the end of a spring term may appeal his/her grade point average calculation if he/she has taken courses previously at one or more different institutions. In the case of such an appeal, the current institution (if presented with official transcripts from the previous institutions), must calculate an overall grade point average counting all classes and grade points previously earned. If the resulting grade point average exceeds the current institution's academic progress requirement, an otherwise eligible student may receive an award in the following fall term.

(B) As of the end of the second and subsequent years, the student must complete at least 75 percent of the hours attempted in his/her most recent academic year, and maintain 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.

(i) The completion rate calculations may be made in keeping with institutional policies.

(ii) Grade point average calculations may be made in keeping with institutional policies except that if a grant recipient's grade point average falls below program requirements and the student transfers to another institution, the receiving institution cannot make a continuation award to the transfer student until he/she provides official transcripts of previous coursework to the new institution's financial aid office and that office re-calculates an overall grade point average, including hours and grade points for courses taken at the old and new institutions that proves the student's overall grade point average now meets or exceeds program requirements.

(iii) A grant recipient who is below program grade point average requirements as of the end of a spring term may appeal his/her grade point average calculation if he/she has taken courses previously at one or more different institutions. In the case of such an appeal, the current institution (if presented with transcripts from the previous institutions), must calculate an overall grade point average counting all classes and grade points previously earned. If the resulting grade point average exceeds the program's academic progress requirement, an otherwise eligible student may receive an award in the following fall term.

(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 to do so by the institution through which the TEXAS Grant was made, repay the amount of the TEXAS Grant that was previously received.

(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 first disbursement of an initial TEXAS Grant award, 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, a student's eligibility ends four years from the date of the semester or term in which the student received his or her first disbursement of an initial TEXAS Grant award 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 first disbursement of an initial TEXAS Grant award, 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 can receive an additional four years of eligibility.

(4) A student who is eligible for a TEXAS Grant based on completion of the Recommended or Advanced High School Program or its equivalent in high school may receive a TEXAS Grant for no more than 150 semester credit hours or the equivalent

(5) A student who is eligible for a TEXAS Grant based on receiving an associate's degree may receive a TEXAS Grant for no more than 90 semester credit hours.

(6) 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.

(7) Other than as described in §22.229 of this title, 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) The director of financial aid may grant an extension of the six- or four-year limits found in §22.228(c) of this title in the event of 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) The financial aid director may allow a student to receive his/her first award after more than 16 months have passed since high school graduation 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, continuation awards will be given priority.

§22.231.Priority in Awards to Students.

In determining who should receive a TEXAS Grant, an institution shall give highest priority to students who demonstrate the greatest financial need at the time the award is made.

§22.232.Award Amounts and Adjustments.

(a) Funding. Funds awarded through this program may not exceed the amount of appropriations, gifts, grants and other funds that are available for this use.

(b) Award Amounts.

(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) The Board shall determine and announce the maximum amount of a TEXAS Grant award prior to the start of each fiscal year. The calculation of the maximum amount will be based on the mandates contained in Texas Education Code, §56.307. However, no student's award shall be greater than the amount of the student's financial need.

(3) For students enrolled in eligible private or independent institutions, the amount of the TEXAS Grant, when combined with the amount received through the Tuition Equalization Grant Program (Texas Education Code, §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;

(4) 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 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(a)(6)(B) of this title (relating to Eligible Students) if the student is determined to have failed to complete the Recommended or Advanced High School Program or its equivalent as evidenced by the final high school transcript.

(c) Uses. A person receiving a TEXAS Grant may only use the money to pay any usual and customary cost of attendance at an institution of higher education incurred by the student.

(d) Over Awards. If, at a time after an award has been offered by the institution and accepted by the student, the student receives assistance that was not taken into account in the student's estimate of financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

§22.233.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment.

(b) Funds that are disbursed retroactively must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.234.Allocation and Reallocation of Funds.

(a) Allocations.

(1) Initial Year Funds. Available program funds for initial year awards will be allocated to each participating institution in proportion to each institution's share of the state's undergraduate financial aid population with significant amounts of financial need.

(2) Renewal Year Funds. Available program funds for continuation or renewal awards will be allocated in proportion to the number of prior year recipients reported for each institution, adjusted for the institution's student retention rate.

(b) Reallocations. Institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber the program funds that have been allocated to them. On that date, institutions lose claim to any unencumbered funds, and the unencumbered funds are available to the Board for reallocation to other institutions. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed.

(c) Disbursement of Funds to Institutions. As requested by institutions throughout the academic year, the Board shall forward to each participating institution a portion of its initial and renewal year allocations of funds for immediate release to students or immediate application to student accounts at the institution.

(d) Release of Funds to Students. The institution may release all or part of the proceeds of a TEXAS Grant to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid.

§22.235.Funds Provided from Student Deposit Fees.

Student deposit funds that are not claimed by students may only be used to make TEXAS Grants. If the year-end balance of funds at an institution exceeds 150 percent of the amount its students have forfeited during that year, the excess funds are to be forwarded to the Coordinating Board for disbursement through the TEXAS Grant Program. If an institution established an endowment fund from funds forfeited prior to the end of state Fiscal Year 2001, no additional forfeited funds may be added to the endowment corpus. All forfeited funds and their earnings (including the earnings of the endowment fund) must be used in calculating the year-end balance subject to the 150 percent limit, and are to be used for making need-based grants.

§22.236.Dissemination of Information and Rules.

The Board and its advisory committee is responsible for publishing and disseminating general information and program rules for the program described in this subchapter. The Board shall distribute to each eligible institution and to each school district a copy of the rules adopted under this subchapter.

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 April 29, 2004.

TRD-200402897

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


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

19 TAC §§22.253 - 22.260

(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 Chapter 22, Subchapter M, §§22.253 - 22.260, concerning Toward EXcellence, Access, & Success (TEXAS) Grant II Program, in its entirety. Specifically, this repeal will delete the current subchapter and all sections within it. The repeal is the result of the Texas Higher Education Board's review of Chapter 22, which was published in the February 20, 2004, issue of the Texas Register (29 TexReg 1677). In conducting the review of Chapter 22, and in light of recent legislative changes in many of the programs administered by the Student Services Division at this agency, the Office of General Counsel concluded that the advisability of restructuring many of the rules for ease of reading, and the numerous new sections, would be more efficiently managed by repealing the whole subchapter and proposing all new sections.

Lois Hollis, Assistant Commissioner for Student Services, has determined that there will not be any fiscal implications to state or local government as a result of the repeal.

Ms. Hollis has also determined that for each year of the first five years that the repeal is in effect, there will be no public benefit anticipated. There is no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the repeal. There is no impact on local employment.

Comments on the proposal may be submitted to Lois Hollis, Assistant Commissioner for Student Services, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711; Lois.Hollis@thecb.state.tx.us.

The repeal is proposed under the Texas Education Code, §56.403, which provides the Coordinating Board the authority to administer the TEXAS Grant II program and to adopt any rules necessary to implement the program.

The repeal affects the Texas Education Code, §§56.401 - 56.4075.

§22.253.Authority, Scope, and Purpose.

§22.254.Definitions.

§22.255.Eligible Institutions.

§22.256.Eligible Students.

§22.257.Priorities in Funding.

§22.258.Priority in Awards to Students.

§22.259.Awards and Adjustments.

§22.260.Dissemination of Information and Rules.

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 April 29, 2004.

TRD-200402900

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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


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

19 TAC §§22.253 - 22.262

The Texas Higher Education Coordinating Board proposes new §§22.253 - 22.262, concerning the Toward EXcellence, Access & Success (TEXAS) Grant II Program. Specifically, the proposed new sections implement the Texas Education Code §§56.401 - 56.4075 and have been re-organized, primarily as a result of incorporating general provisions regarding state grant and scholarship programs (currently Chapter 22, Subchapter A) into the rules for individual programs so that each program's set of rules is a complete, stand-alone document. The new sections add definitions to clarify program requirements; provide detailed information regarding calculations related to program academic progress requirements, and provide additional information about procedures for allocating, reallocating and disbursing funds to institutions.

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 not be any fiscal implication to state or local government as a result of enforcing or administering the sections.

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 cost to persons who are required to comply with the new sections as proposed. There is no impact on local employment.

Comments on the new sections may be submitted to Lois Hollis, Texas Higher Education Coordinating Board, P.O. Box 12788; Austin, Texas 78711; (512) 427-6465; Lois.Hollis@thecb.state.tx.us.

The new sections are proposed under the Texas Education Code, §56.403, which provides the Coordinating Board the authority to administer the TEXAS Grant II Program and to adopt any rules necessary to implement the program.

The new sections affect the Texas Education Code, §§56.401 - 56.4075.

§22.253.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter P, Toward EXcellence, Access & Success (TEXAS) Grant II Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.401 - 56.4075.

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

§22.254.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, the Chief Executive Officer of the Board.

(3) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses.)

(4) Encumbered funds--Program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(5) Enrolled on at least a half-time basis--Enrolled for the equivalent of six semester credit hours in a regular semester.

(6) Entering student--A student enrolled in the first 30 semester credit hours or their equivalent, excluding hours taken during dual enrollment in high school and courses for which the student received credit through examination.

(7) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(8) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(9) Initial year award--The grant award made in the student's first year in the TEXAS Grant II program, typically made up of a fall and spring disbursement.

(10) Period of enrollment--The term or terms within the current state fiscal year (September 1 - August 31) for which the student was enrolled in an approved institution and met all the eligibility requirements for an award through this program.

(11) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(12) 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 who are eligible to pay resident tuition rates are not residents of Texas.

§22.255.Institutions.

(a) Eligibility.

(1) Public junior colleges, technical colleges and state colleges as defined in §61.003 of the Texas Education Code are eligible to participate in the TEXAS Grant II program.

(2) No institution may, on the grounds of race, color, national origin, gender, religion, age, or disability exclude an individual from participation in, or deny the benefits of the program described in this subchapter.

(3) Each participating institution must follow the Civil Rights Act of 1964, Title VI (Public Law 88-353) in avoiding discrimination in admissions.

(b) Approval.

(1) Agreement. Each approved institution must enter into an agreement with the Board, the terms of which shall be prescribed by the Commissioner.

(2) Approval Deadline. An institution must be approved by April 1 in order for qualified students enrolled in that institution to be eligible to receive grants in the following fiscal year.

(c) Responsibilities.

(1) Probation Notice. If the institution is placed on public probation by its accrediting agency, it must immediately advise grant recipients of this condition and maintain evidence in each student's file to demonstrate that the student was so informed.

(2) Disbursements to Students.

(A) Documentation. The institution must maintain records to prove the receipt of program funds by the student or the crediting of such funds to the student's school account.

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an institution has disbursed funds for unauthorized purposes, the Board will notify the Program Officer and financial aid officer and offer an opportunity for a hearing pursuant to the procedures outlined in Chapter 1 of this title (relating to Agency Administration). Thereafter, if the Board determines that funds have been improperly disbursed, the institution shall become primarily responsible for restoring the funds to the Board. No further disbursements of grants or scholarships shall be permitted to students at that institution until the funds have been repaid.

(3) Reporting.

(A) Requirements/Deadlines. All institutions must meet Board reporting requirements in a timely fashion. Such reporting requirements shall include reports specific to allocation and reallocation of grant funds (including the Financial Aid Database Report) as well as progress and year-end reports of program activities.

(B) Penalties for Late Reports.

(i) An institution that postmarks or electronically submits a progress report a week or more after its due date will be ineligible to receive additional funding through the reallocation occurring at that time.

(ii) The Commissioner may penalize an institution by reducing its allocation of funds in the following year by up to 10% for each progress or year-end report that is postmarked or submitted electronically more than a week late.

(iii) The Commissioner may assess more severe penalties against an institution if any report is received by the Board more than one month after its due date. The maximum penalty for a single year is 30% of the school's allocation. If penalties are invoked in two consecutive years the institution may be penalized an additional 20%.

(C) Appeal of Penalty. If the Commissioner determines that a penalty is appropriate, the institution will be notified by certified mail, addressed to the Program Officer with a copy sent to the financial aid officer. Within 21 days from the time that the Program Officer receives the written notice, the institution must submit a written response appealing the Board's decision, or the penalty shall become final and no longer subject to an appeal. An appeal under this section will be conducted in accordance with the rules provided in Chapter 1 of this title.

(4) Program Reviews. If selected for such by the Board, participating institutions must submit to program reviews of activities related to the TEXAS Grant II Program.

§22.256.Eligible Students.

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

(1) be a resident of Texas;

(2) show financial need;

(3) have applied for any available financial aid assistance;

(4) be enrolled on at least a half-time basis in an associate's degree or certificate program at an eligible institution;

(5) not be eligible for a TEXAS Grant; and

(6) not have been granted an associate's or baccalaureate degree.

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

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

(2) show financial need;

(3) be enrolled on at least a half-time basis;

(4) be enrolled in an associate's degree or certificate program at an eligible institution;

(5) not have been granted a baccalaureate degree;

(6) not be eligible for a TEXAS Grant; and

(7) make satisfactory academic progress towards an undergraduate degree or certificate, which requires 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.

(A) The completion rate calculations may be made in keeping with institutional policies.

(B) Grade point average calculations may be made in keeping with institutional policies except that if a grant recipient's grade point average falls below program requirements and the student transfers to another institution, the receiving institution cannot make a continuation award to the transfer student until he/she provides official transcripts of previous coursework to the new institution's financial aid office and that office re-calculates an overall grade point average, including hours and grade points for courses taken at the old and new institutions that proves the student's overall grade point average now meets or exceeds program requirements.

(c) Discontinuation of Eligibility or Non-Eligibility.

(1) A student may not receive a TEXAS Grant II for more than 75 semester credit hours or its equivalent.

(2) A student's eligibility for a TEXAS Grant II award ends four years from the start of the semester or term in which the student received his or her initial award of a TEXAS Grant II.

(3) A person is not eligible to receive an initial or continuation TEXAS Grant II award 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.

(4) 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 II award until he or she completes courses while not receiving a TEXAS Grant II and meets all the requirements of subsection (b) of this section as of the end of that period of enrollment.

§22.257.Priorities in Funding.

If appropriations for the TEXAS Grant II Program are insufficient to allow awards to all eligible students, continuation awards will be given priority.

§22.258.Priority in Awards to Students.

In determining who should receive a TEXAS Grant II award, an institution shall give highest priority to students who demonstrate the greatest financial need at the time the award is made.

§22.259.Award Amounts and Adjustments.

(a) Funding. Funds awarded through this program may not exceed the amount of appropriations, grants and other funds that are available for this use.

(b) Award Amounts.

(1) The amount of a TEXAS Grant II award 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) The Board shall determine and announce the maximum amount of a TEXAS Grant II award prior to the start of each fiscal year. The calculation of the maximum amount will be based on the mandates contained in Texas Education Code, §56.407. However, no student's award shall be greater than the amount of the student's financial need.

(3) An approved 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 II award 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 II award. If an institution's tuition and fee charges exceed the TEXAS Grant II award 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 to cover any difference in the amount of a TEXAS Grant II award 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.

(c) Uses. A person receiving a TEXAS Grant II award may only use the money to pay any usual and customary cost of attendance at an institution of higher education incurred by the student.

(d) Over Awards. If, at a time after an award has been offered by the institution and accepted by the student, the student receives assistance that was not taken into account in the student's estimate of financial need, so that the resulting sum of assistance exceeds the student's financial need, the institution is not required to adjust the award under this program unless the sum of the excess resources is greater than $300.

§22.260.Retroactive Disbursements.

(a) A student may receive a disbursement after the end of his/her period of enrollment if the student:

(1) owes funds to the institution for the period of enrollment for which the award is being made; or

(2) received a student loan that is still outstanding for the period of enrollment.

(b) Funds that are disbursed retroactively must either be used to pay the student's outstanding balance from his/her period of enrollment at the institution or to make a payment against an outstanding loan received during that period of enrollment. Under no circumstances are funds to be released to the student.

§22.261.Allocation and Reallocation of Funds.

(a) Allocations.

(1) Initial Year Funds. Available program funds for initial year awards will be allocated to each participating institution in proportion to each institution's share of the state's undergraduate financial aid population with significant amounts of financial need.

(2) Renewal Year Funds. Available program funds for continuation or renewal awards will be allocated in proportion to the number of prior year recipients reported for each institution, adjusted for the institution's student retention rate.

(b) Reallocations. Institutions will have until a date specified by the Board via a policy memo addressed to the Program Officer at the institution to encumber the program funds that have been allocated to them. On that date, institutions lose claim to any unencumbered funds, and the unencumbered funds are available to the Board for reallocation to other institutions. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed.

(c) Disbursement of Funds to Institutions. As requested by institutions throughout the fall and spring terms, the Board shall forward to each participating institution a portion of its initial and renewal year allocations of funds for immediate release to students or immediate application to student accounts at the institution.

(d) Release of Funds to Students. The institution may release all or part of the proceeds of a TEXAS Grant II award to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid.

§22.262.Dissemination of Information and Rules.

The Board and its advisory committee is responsible for publishing and disseminating general information and program rules for the program described in this subchapter. The Board shall distribute to each eligible institution and to each school district a copy of the rules adopted under this subchapter.

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 April 29, 2004.

TRD-200402899

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 15, 2004

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