TITLE 19.EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 1. AGENCY ADMINISTRATION

Subchapter A. GENERAL PROVISIONS

19 TAC §1.16

The Texas Higher Education Coordinating Board proposes new §1.16, concerning Contracts for Materials and Services. Specifically, this new section requires that the Board approve all contractors for the purchase of materials or services through a vendor other than a state or local governmental entity if the cost for those materials or services is expected to exceed $750,000.00. The Agency Operations Committee shall approve all such contracts if the cost is greater than $100,000.00 but less than $750,000.00 and the Commissioner shall approve all such contracts if the cost is less than $100,000.00. The Commissioner is required to report to the Agency Operations Committee, describing all such contracts.

Jan Greenberg, General Counsel, 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 section.

Ms. Greenberg 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 is that the public is notified of the limitations on the authority to contract on behalf of the Board. 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 Jan Greenberg, General Counsel, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or by e-mail to jan.greenberg@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The new section is proposed under the Texas Education Code, §61.067, which provides the Board with the authority to contract and Texas Education Code, §61.027, which provides the Board with the authority to adopt rules.

The new section affects Texas Education Code, §61.967.

§1.16.Contracts for Materials and Services.

(a) The Board shall approve all contracts for the purchase of materials or services through a vendor other than a state or local governmental entity if the cost for those materials or services is expected to exceed $750,000.00.

(b) The Agency Operations Committee shall approve all contracts for the purchase of materials or services through a vendor other than a state or local governmental entity if the cost for those materials or services is greater than $100,000.00 but less than or equal to $750,000.00.

(c) The Commissioner shall approve all contracts for the purchase of materials or services through a vendor other than a state or local governmental entity if the contract amount is less than or equal to $100,000.00.

(d) The Commissioner shall provide a report to the Agency Operations Committee, at least quarterly, describing all contracts for the purchase of materials or services through a vendor other than a state or local governmental entity.

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 15, 2006.

TRD-200602693

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


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

Subchapter B. TRANSFER OF CREDIT, CORE CURRICULUM AND FIELD OF STUDY CURRICULA

19 TAC §4.28

The Texas Higher Education Coordinating Board proposes amendments to §4.28(d), (j) and (k), concerning core curriculum implementation. Specifically, the amendment to subsection (d) would provide clarification to institutions of higher education regarding the institutional core curriculum a student must follow. The new subsections (j) and (k) would provide clarification to institutions of higher education regarding the specific prohibition of institutional representatives allowing exemptions or waivers for any core curriculum course or component area requirements. It would also establish a limited procedure for Board staff to approve certain accommodations to the core curriculum requirements at a specific institution on a case-by-case basis. Several institutions have indicated that there is confusion about how to determine whether a student is a "degree-seeking" student. The proposed amendment to subsection (d) clarifies an existing rule and provides guidance to institutions as they develop policies about identifying enrolled students as "degree-seeking." The addition of subsections (j) and (k) will insure consistency and quality in the implementation of core curricula at the diverse institutions of higher education in Texas. Since 1997, institutional decisions regarding substitutions and/or waivers of core curriculum requirements have been discouraged as a matter of policy. These clarifications and the establishment of a procedure for requesting an accommodation to an institution's core curriculum should reflect consistency and fairness while protecting the integrity of the exemplary educational outcomes for each component area of the core curriculum. The matter of waivers or exemptions to the core curriculum is not specifically addressed in the statutory requirement concerning the statewide transfer of undergraduate core curriculum, but the matter is frequently brought to Board staff by institutional representatives requesting clarification and guidance.

Dr. Carol Raney has determined that for each year of the first five years the amendments are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the amended section.

Dr. Raney 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 would be the increased ease of transfer of lower-division academic course credit and the subsequent facilitation of the Closing the Gaps Success goal through more efficient transfer practices. There is no effect on small businesses. There are 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 proposal may be submitted to Dr. Catherine Parsoneault ((512) 427-6168 FAX; or e-mail to Catherine.Parsoneault@thecb.state.tx.us). Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §61.827, which provides the Coordinating Board with the authority to adopt rules to implement the subchapter regarding core curriculum and other transfer curricula.

The amendments affect Texas Education Code, §61.822.

§4.28.Core Curriculum.

(a) General. In accordance with Texas Education Code, §§61.821-831, each general academic institution, community college, and health-related institution shall design and implement a core curriculum, including specific courses composing the curriculum, of no less than 42 lower-division semester credit hours. Health-related institutions should encourage their students to complete their core curriculum requirement at a general academic institution or community college.

(b) Component Areas. Each institution's core curriculum must be designed to satisfy the exemplary educational objectives specified for the component areas of the "Core Curriculum: Assumptions and Defining Characteristics" adopted by the Board; all lower-division courses included in the core curriculum must be consistent with the "Texas Common Course Numbering System," and must be consistent with the framework identified in Charts I and II of this subsection. Chart I specifies the minimum number of semester credit hours required in each of five major component areas that a core curriculum must include (with sub-areas noted in parentheses). Chart II specifies options available to institutions for the remaining 6-12 semester credit hours.

Figure: 19 TAC §4.28(b) (No change.)

(c) Transfer of Credit--Completed Core Curriculum. If a student successfully completes the 42 semester credit hour core curriculum at a Texas public institution of higher education, that block of courses may be transferred to any other Texas public institution of higher education and must be substituted for the receiving institution's core curriculum. A student shall receive academic credit for each of the courses transferred and may not be required to take additional core curriculum courses at the receiving institution unless the Board has approved a larger core curriculum at that institution.

(d) Concurrent Enrollment.

(1) A student concurrently enrolled at more than one institution of higher education shall follow the core curriculum requirements in effect for the institution at which the student is classified as a degree-seeking student.

(2) A student who is concurrently enrolled at more than one institution of higher education may be classified as a degree-seeking student at only one institution.

(3) If a student maintains continuous enrollment from a spring semester to the subsequent fall semester at an institution at which the student has declared to be seeking a degree, the student remains a degree-seeking student at that institution regardless of the student's enrollment during the intervening summer session(s) at another institution.

(e) Transfer of Credit--Core Curriculum Not Completed. Except as specified in subsection (f) of this section, a student who transfers from one institution of higher education to another without completing the core curriculum of the sending institution shall receive academic credit within the core curriculum of the receiving institution for each of the courses that the student has successfully completed in the core curriculum of the sending institution. Following receipt of credit for these courses, the student may be required to satisfy the remaining course requirements in the core curriculum of the receiving institution.

(f) Satisfaction of Component Areas. Each student must meet the minimum number of semester credit hours in each component area; however, an institution receiving a student in transfer is not required to accept component core course semester credit hours beyond the maximum specified in a core component area.

(g) Exemplary Educational Objectives From More Than One Component Area. An institution may include within its core curriculum a course or courses that combine exemplary educational objectives from two or more component areas of the exemplary educational objectives defined in this section.

(h) Transcripts. Each institution must note core courses on student transcripts as recommended by the Texas Association of Collegiate Registrars and Admissions Officers (TACRAO).

(i) Notice. Each institution must publish and make readily available to students its core curriculum requirements stated in terms consistent with the "Texas Common Course Numbering System."

(j) Substitutions and Waivers. No institution or institutional representative may approve course substitutions or waivers of core curriculum requirements.

(k) Accommodations.

(1) The Commissioner or the Commissioner's designated staff representative may, on a case-by-case basis, approve an accommodation of a specific core curriculum component area requirement for a student with a medically-documented learning disability, including but not limited to dyslexia, dysgraphia, or Asperger's Syndrome.

(2) Accommodation shall not include a waiver or exemption of any core curriculum requirement.

(3) In requesting an accommodation under this subsection, an institution may request approval of core curriculum applicability for a course the institution offers but that is not approved as a part of that institution's core curriculum, if the institution demonstrates that the course has been approved to fulfill the same specific core curriculum component area requirement at five or more other Texas public colleges or universities. The Texas Common Course Numbering System course number may be used as evidence of the suitability of the course under this subsection.

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 15, 2006.

TRD-200602694

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Chapter 7. PRIVATE AND OUT-OF-STATE PUBLIC POSTSECONDARY EDUCATIONAL INSTITUTIONS OPERATING IN TEXAS

Subchapter A. GENERAL PROVISIONS

19 TAC §§7.6, 7.7, 7.9

The Texas Higher Education Coordinating Board proposes amendments to §§7.6, 7.7, and 7.9, concerning clarifying the rules and removing some incorrect references in the rules. Specifically, amendments to: §7.6(f)(2) (related to Duty to Report) adds language to clarify that the information reported will be evaluated by the Board in order to confirm that the institution continues to meet the standards of the Board; §7.7(2) (related to Qualifications of Institutional Officers) is modified to replace minimum standards for qualifications of a chief academic offer which are too rigid and which do not accurately reflect good practice in higher education with qualifications that are sufficiently flexible and more accurately convey the expectations of the higher education community; and §7.9(a) (related to Operation of Branch Campuses, Extension Centers, or Other Off-Campus Units by Exempt Institutions) is modified by removing paragraphs which created unintended consequences. These paragraphs contained redundant information, incorrect references to other sections of the rules, and unintended changes to the process of approving off-campus operations in Texas from out-of-state institutions.

Dr. Carol Raney, Acting Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the amendments are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the amended sections.

Dr. Raney 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 a greater compliance with quality standards of the Board by institutions offering degrees to Texas citizens. There is no effect on small businesses. There are 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 proposal may be submitted to Carol Raney, Acting Assistant Commissioner for Academic Affairs and Research, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or carol.raney@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §61.311, which provides the Board with the authority to adopt rules relating to Subchapter G on Regulation of Private Postsecondary Educational Institutions.

The amendments affect Texas Education Code, §§61.301 - 61.319.

§7.6.Certificate of Authority--Eligibility, Applications, Renewals, and Amendments.

(a) - (e) (No change.)

(f) Duty to Report.

(1) (No change.)

(2) Any change in principal location, ownership, governance, administrative personnel, faculty, or facilities at the institution, or any other changes relevant to the Board's standards for certification, shall be reported to the Board within ten days of the change by the chief administrative officer of the institution in order for the Board to determine if such changes adversely affect the conditions under which the certificate was granted .

(g) (No change.)

§7.7.Standards for Certificates of Authority.

The decision to grant a certificate of authority to an institution will be based on its demonstrated compliance with the following twenty-one standards. Particular attention will be paid to the institution's commitment to education, responsiveness to recommendations and suggestions for improvement, and, in the case of a renewal of a certificate of authority, record of improvement and progress following initial approval which would ensure accreditation within the time limits specified in §7.6(c)(3) of this title (relating to Certificate of Authority). The twenty-one standards represent generally accepted administrative and academic practices and principles of accredited institutions of higher education in Texas. Such practices and principles are generally set forth by regional and specialized accrediting bodies and the academic and professional societies which have established standards for their members' programs, such as the National Association of College and University Business Officers and the American Association of Collegiate Registrars and Admissions Officers.

(1) (No change.)

(2) Qualifications of Institutional Officers.

(A) The character, education, and experience in higher education of governing board members, administrators, supervisors, counselors, agents, and other institutional officers shall be such as may reasonably ensure that the institution can maintain the standards of the Board and progress to accreditation within the time limits set by the Board [ students will receive education consistent with the objectives of the course or program of study ].

(B) The [ In particular, the ] chief academic officer shall hold an earned doctorate awarded by an institution accredited by an agency recognized by the Board or from a foreign institution demonstrated to be equivalent to an accredited institution, and shall demonstrate sound aptitude for and experience with curriculum development and assessment; accreditation standards and processes as well as all relevant state regulations; leadership and development of faculty, including the promotion of scholarship, research, and service; and the promotion of student success [ be qualified by level and area of academic preparation, as well as through appropriate experience, to direct the academic affairs of the institution. In general, this requires at least five years of administrative experience at an institution of higher education accredited by a recognized accreditor or a master's degree with major in higher education administration awarded by an institution accredited by a recognized accreditor ].

(C) In the case of a renewal of a certificate of authority, the institutional officers also shall demonstrate a record of effective leadership in administering the institution.

(3) - (21) (No change.)

§7.9.Operation of Branch Campuses, Extension Centers, or Other Off-Campus Units by Exempt Institutions.

(a) Off-Campus Operations.

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

(5) Formal Review and Evaluation.

(A) [ (5) ] Accreditor's on-site review and evaluation [ survey ]. The applicant institution shall inform its recognized accreditor of the institution's temporary authorization [ initial approval ] from the Board to begin operations, as provided in paragraph (4) of this subsection, so that the accreditor may conduct a site visit at the branch campus or extension center to verify compliance with that accreditor's criteria for branch campuses.

(i) [ (A) ] The institution shall invite the Southern Association of Colleges and Schools (SACS) to participate in the on-site review and evaluation [ survey ], to provide representatives to examine the institution, and to supply comments on the branch's ability to meet the standards set forth herein. The institution must inform SACS of the impending visit by its accreditor at least six weeks prior to the visit, to facilitate coordination between the two accreditors.

(ii) [ (B) ] The institution shall submit to the Board the report of the recognized accreditor's review and evaluation [ accreditor ] and SACS' comments [ to the Board ].

(iii) [ (C) ] After examining the report [ reports ] of the recognized accreditor and SACS comments , the Commissioner may issue continuing approval, place conditions on continuing approval, or revoke the Board's temporary authorization [ approval ] of the branch campus or extension center.

(iv) [ (D) ] Final approval by the accreditor must be made within two years of the initial approval by the Commissioner, or the Board's temporary authorization [ initial approval ] will lapse.

(v) [ (E) ] If the accreditor denies approval, the Board's temporary authorization [ approval ] shall immediately expire.

(B) [ (6) ] Board's on-site review and evaluation [ site-visit ]. If the accreditor does not conduct an on-site review and evaluation [ survey ] of the branch campus or extension center, the Board will conduct an on-site review and evaluation [ survey ] to determine whether the branch complies with the Board's standards of operations.

(i) [ (A) ] The Board will invite SACS to provide representation, to accompany the visiting team, and to supply comments.

(ii) [ (B) ] The institution shall be assessed the fee for an on-site survey to a branch campus or extension center, as provided in §7.5(c) of this title (relating to Administrative Procedures Related to Certification of Nonexempt Institutions).

(iii) The institution shall be sent the report of the Board's review and evaluation and shall have 30 days to submit a written response to the report.

(iv) After examining the report of review and evaluation and the institution's written response, the Commissioner may issue continuing approval, place conditions on continuing approval, or revoke the Board's temporary approval of the branch campus or extension center.

[(C) The Board's review of the branch campus or extension center's application for Board approval shall follow the procedure described in §7.5(d)(2) - (4) of this title (relating to Administrative Procedures Related to Certification of Nonexempt Institutions), concerning the Board's review of applications for certificates of authority.]

[(D) The Board shall consider the reports and recommendations of the Commissioner, SACS, and the certification advisory council, and shall make a final determination regarding approval or denial of the branch campus or extension center at a regularly scheduled Board meeting.]

(6) [ (7) ] The Board requires reviews, including site visits, of the branch campus or extension center according to the schedule used for accreditation of the main campus by the recognized accreditor. The review will be conducted in the same manner as described in paragraph (5) [ (1) ] of this subsection. The Commissioner may deny continuing approval of any branch campus or extension site which fails to maintain the conditions and standards on which approval was based.

(7) [ (8) ] In the event of any adverse determination made under the authority of this section by [ the Board or ] the Commissioner, the institution shall receive notice of the determination, and shall be given the reasons for the denial in writing.

(8) [ (9) ] If a determination under this section is adverse to an institution, it shall become final and binding unless, within 45 days of receipt of the adverse determination, the institution invokes the administrative remedies contained in Chapter 1, subchapter B of this title (relating to Hearings and Appeals).

(9) Any change in location, ownership, governance, administrative personnel, faculty, or facilities at the of the branch campus or extension center, or any other changes relevant to the Board's standards for off-campus operations at exempt institutions, shall be reported to the Board within ten days of the change by the chief administrative officer of the institution in order for the Board to determine if such changes adversely affect the conditions under which approval to operate a branch campus, extension center, or other off-campus unit was granted.

(b) (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 May 15, 2006.

TRD-200602695

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Chapter 13. FINANCIAL PLANNING

Subchapter H. REPORTING OF TUITION AND FEES

19 TAC §13.142

The Texas Higher Education Coordinating Board proposes amendments to §13.142, concerning Reporting of Tuition and Fees. Specifically, proposed changes to §13.142(14) clarify that community colleges (by statute) can not charge designated tuition.

Susan Brown, Assistant Commissioner for Planning and Accountability, has determined that for each year of the first five years the amendments are in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the amended section.

Ms. Brown 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 consistent use of terms regarding higher education tuition and fees. 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 proposal may be submitted to Lois Hollis, Assistant Commissioner for Student Services, P.O. Box 12788, Austin, Texas 78711; lois.hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §54.0015.

The amendments affect Texas Education Code, §54.0513.

§13.142.Definitions.

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

(1) - (13) (No change.)

(14) Tuition--Statutory, designated, and/or board-authorized tuition.

(A) (No change.)

(B) Designated tuition--A tuition charge authorized under Texas Education Code, §54.0513, that institutions other than public community colleges [ an institution ] may impose on any graduate or undergraduate, resident or nonresident student, in an amount that the governing board of the institution considers necessary for the effective operation of the institution.

(C) (No change.)

(15) (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 May 15, 2006.

TRD-200602696

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Chapter 21. STUDENT SERVICES

Subchapter A. GENERAL PROVISIONS

19 TAC §21.7

The Texas Higher Education Coordinating Board proposes new §21.7, concerning General Provisions. Specifically, Senate Bill 1528, 79th Legislature, mandated the Texas Higher Education Coordinating Board to adopt by rule definitions related to tuition and fees for students under Chapter 54 of the Texas Education Code to ensure consistency in the application of state laws and policies. The new section incorporates the tuition and fee definitions found in Coordinating Board rules, Chapter 13, Financial Planning, Subchapter H, Reporting of Tuition and Fees.

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

Ms. Hollis 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 improved consistency in the use and meaning of terms used in state financial assistance programs as well as in the data reported by institutions regarding their charges. 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 section is proposed under the Texas Education Code, §56.055, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §§56.051 - 56.055 and §54.0071.

The new section affects the Texas Education Code, §§56.051 - 56.055 and §54.0071.

§21.7.Tuition and Fee Definitions.

The definitions found in Chapter 13, Subchapter H of this title (relating to Reporting of Tuition and Fees), are to be applied to all tuition and fee exemption and waiver programs provided under Texas Education Code, Chapter 54.

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 15, 2006.

TRD-200602706

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter B. DETERMINING RESIDENCE STATUS

19 TAC §§21.21 - 21.27

(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 §§21.21 - 21.27, concerning Determining Residence Status. Specifically, these sections are proposed for repeal and are superseded by §§21.727 - 21.735.

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

Ms.Lois Hollis has also determined that for each year of the first five years the repeals are in effect there will be more uniformity in the determination of residency among institutions, causing less confusion for students and parents. 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 repeals are proposed under the Texas Education Code, §54.075, which provides the Coordinating Board with the authority to adopt rules to carry out the purposes of Texas Education Code, §§54.0501 - 54.075.

The repeals affect Texas Education Code, §§54.0501 - 54.075.

§21.21.Authority, Scope, and Purpose.

§21.22.Definitions.

§21.23.Basic Rules.

§21.24.Residency during the Transition from Dependent to Independent Students.

§21.25.Procedures.

§21.26.Exceptions.

§21.27.Transition from Waiver Recipient to 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 May 15, 2006.

TRD-200602702

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter C. HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM

19 TAC §21.55, §21.63

The Texas Higher Education Coordinating Board proposes amendments to §21.55 and §21.63, concerning the Hinson-Hazlewood College Student Loan Program. Specifically, the amendment to §21.55 (Eligibility of Students) aligns program rules with the Texas Education Code, §52.32 and §52.33, and §144(b) of the federal Internal Revenue Code for municipal bonds. It will ensure that the Board's low interest non-guaranteed loans are not offered to students before federal aid is offered. The amendments to §21.63 (Deceased or Disabled Borrowers) authorize the discharge of judgment debt owed by deceased or disabled borrowers, as well as judgment debt owed by deceased or disabled cosigners. Additionally, in cases where there is a judgment against the borrower and the borrower is deceased or disabled, the amendments would allow the Commissioner to determine if the release of the liability of the cosigner is in the best interest of the loan program and, if so, allow the Commissioner to authorize a release of the cosigner's liability.

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 be no fiscal implications 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 improved access to affordable financial aid for the students of Texas and for persons seeking educator certification. There is no effect on small businesses. There are 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 proposal may be submitted to Lois Hollis, P.O. Box 12788, Austin, Texas 78711, (512) 427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under Texas Education Code, §52.01, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §52.01 and §§52.31 - 52.40.

The amendments affects Texas Education Code, §52.01 and §§52.31 - 52.40.

§21.55.Eligibility of Students.

(a) (No change.)

(b) When certifying a non-guaranteed loan, the institution shall certify that the amount of the loan does not exceed the difference between the cost of attendance and other forms of student assistance for which the student is eligible, with the exception of Federal Plus loans, whether or not the student actually receives such assistance.

(c) [ (b) ] If the institution to which the student has been accepted for enrollment was not an eligible institution, as defined in §21.54 of this title (relating to Eligibility of Institutions) on May 1, 1985, the student shall provide evidence that the student is unable to obtain a guaranteed student loan from a commercial lender.

§21.63.Deceased or Disabled Borrowers and Cosigners .

(a) Upon final verification of the death or determination of permanent and total disability of a borrower, all loans through the Program shall be discharged unless there is a judgment against the borrower and the Commissioner determines that a release of the borrower's liability is not in the best interest of the Program. [ All loans through the Program are discharged in the event of death or in the event of permanent and total disability of the borrower. ]

(b) Verification of death and determination of permanent and total disability of a borrower or cosigner through the FSL, FSLS, and CAL programs shall be made in accordance with the governing provisions of the FSL program.

(c) Verification of death or determination of permanent and total disability of a borrower or cosigner through the HEAL and HELP programs shall be made in accordance with the governing provisions of the HEAL program.

(d) The final verification of death and determination of permanent and total disability of a borrower or cosigner shall be made by the appropriate official for each loan program as follows:

(1) - (5) (No change.)

(e) (No change.)

(f) Upon final verification of the death or determination of permanent and total disability of a cosigner, the Commissioner shall determine if the release of the liability of the cosigner is in the best interest of the loan program and, if so, shall authorize a release of the cosigner's liability, whether or not there is a judgment against the cosigner.

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 15, 2006.

TRD-200602697

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter E. TEXAS B-ON-TIME LOAN PROGRAM

19 TAC §§21.122, 21.124, 21.126

The Texas Higher Education Coordinating Board proposes amendments to §§21.122, 21.124, and 21.126 concerning the Texas B-On-Time (BOT) Loan Program. Specifically, the amendments to §21.122 (Definitions) and §21.124 (Initial Eligibility for Loans) change the name of the required high school curriculum to correspond with the new title assigned by the Texas Education Agency. The amendments to §21.126 (Disbursement to Students) align program rules with the Texas Education Code, §52.32 and §52.33, and §144(b) of the federal Internal Revenue Code for municipal bonds. They will ensure that the zero-interest B-On-Time loans are not offered to students before federal aid is offered.

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

Ms. Hollis has also determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of administering the sections will be improved access to financial aid for the students of Texas. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

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

The amendments are proposed under the Texas Education Code, §56.453, which provides the Coordinating Board with the authority to adopt rules for the administration of Texas Education Code, §§56.451 - 56.465.

The amendment affects Texas Education Code, §§56.451 - 56.465.

§21.122.Definitions.

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

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

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

(5) (No change.)

§21.124.Initial Eligibility for Loans.

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

(1) (No change.)

(2) meets one of the following academic requirements:

(A) graduated not earlier than the 2002 - 2003 school year under the Recommended or distinguished achievement high school program- Advanced High School Program from a public or accredited private high school in Texas;

(B) - (C) (No change.)

(3) - (5) (No change.)

(b) - (c) (No change.)

§21.126.Disbursement to Students.

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

(1) the institution has certified that the amount of the loan does not exceed the difference between the cost of attendance and other forms of student assistance for which the student is eligible, with the exception of Federal Plus loans, whether or not the student actually receives such assistance;

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

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

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

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

(b) - (d) (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 May 15, 2006.

TRD-200602700

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter J. THE PHYSICIAN EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §§21.251, 21.257, 21.261 - 21.263

The Texas Higher Education Coordinating Board proposes amendments to §§21.251, 21.257, and 21.261 - 21.263, concerning the Physician Education Loan Repayment Program. Specifically, the proposed amendments update legislatively mandated changes to names of state agencies.

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 implications 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 the changes will be that the rules will clearly provide information on eligibility requirements for the program. There is no effect on small businesses. There are 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 proposal may be submitted to Lois Hollis, P.O. Box 12788, Austin, Texas 78711, (512) 427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §§61.531 - 61.540, which provides the Coordinating Board with the authority to establish procedures to administer this program and Texas Education Code, §61.027, which provides the Coordinating Board with the authority to adopt rules to effectuate the provisions of Texas Education Code, Chapter 61.

The amendments affect Texas Education Code, §§61.531 - 61.540.

§21.251.Authority and Purpose.

(a) (No change.)

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

§21.257.State Recommended Health Professional Shortage Area.

A State Recommended Health Professional Shortage Area shall be any area of the state recommended by the Texas Department of State Health Services (DSHS) [ Department of Health ] to the Division of Shortage Designation, Bureau of Primary Health Care, of the U.S. Department of Health and Human Services, or its successors, as having a shortage of health professionals.

(1) (No change.)

(2) A State Recommended Health Professional Shortage Area may be removed from the list of eligible areas in the state-funded portion of the program only after a recommendation to that effect by the DSHS [ Texas Department of Health ] to the Division of Shortage Designation.

§21.261.State-Funded Portion for Post-Residency Practice.

(a) An eligible physician is one who:

(1) has a current unrestricted license, or, in the case of a faculty member, a current unrestricted or institutional license to practice medicine in Texas from the Texas Medical Board [ State Board of Medical Examiners ];

(2) except in the case of general practitioners, has satisfactorily completed a postgraduate program approved by the Texas Medical Board [ State Board of Medical Examiners ] and accredited by the Accreditation Council on Graduate Medical Education or the American Osteopathic Association or has earned and maintained certification from an American Specialty Board that is a member of the American Board of Medical Specialties or the Bureau of Osteopathic Specialists in one of the following specialties: family practice, osteopathic general practice, obstetrics/gynecology, general internal medicine, general pediatrics, emergency medicine, general surgery, and psychiatry;

(3) (No change.)

(4) has completed at least one year of medical practice in:

(A) (No change.)

(B) the Texas Department of State Health Services, the Texas Department on Aging and Disability Services [ Texas Department of Health, the Texas Department of Mental Health and Mental Retardation ], the Texas Department of Criminal Justice, or the Texas Youth Commission; or

(C) (No change.)

(b) (No change.)

§21.262.Eligibility for State Loan Repayment Program (SLRP) Matching Federal Loan Repayments.

SLRP loan repayments are matched with an equivalent amount awarded under the provisions of §21.261 of this title (relating to State-Funded Portion for Post-Residency Practice). A physician eligible for matching loan repayments is one who:

(1) (No change.)

(2) has accepted Medicare and Medicaid assignment as full payment for medical services rendered to Medicaid and Medicare patients during the twelve month service period, as verified by Texas Health and Human Services Commission [ Texas Department of Human Services ];

(3) - (4) (No change.)

§21.263.Eligibility for Family Practice Faculty Participation.

(a) (No change.)

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

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

Filed with the Office of the Secretary of State on May 15, 2006.

TRD-200602698

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter K. THE GOOD NEIGHBOR SCHOLARSHIP PROGRAM

19 TAC §21.282

The Texas Higher Education Coordinating Board proposes an amendment to §21.282, concerning The Good Neighbor Scholarship Program. Specifically, Texas Education Code §54.207 authorizes the awarding of tuition waivers to certain citizens of other nations of the Western Hemisphere. One of the eligibility requirements is that the person be a "native-born citizen" of the nation he represents. This amendment will clarify that the term "native-born citizen" includes both a citizen of the country who was physically born in the country and one born abroad if at least one of the parents was a citizen of the country and not permanently residing in a foreign country.

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

Ms. Hollis also determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of administering the amended section will be a better understanding of the students who are eligible to compete for awards through the program. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the amendment 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 amendment is proposed under the Texas Education Code, §54.207, which provides the Coordinating Board with the authority to adopt rules necessary to implement the Good Neighbor Scholarship Program.

The amendment affects the Texas Education Code, §54.207.

§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) - (3) (No change.)

(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 or who was born abroad, if at least one of his or her parents was a citizen of the eligible country and not permanently residing in a foreign country .

(5) - (6) (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 May 15, 2006.

TRD-200602699

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter X. DETERMINATION OF RESIDENT STATUS AND WAIVER PROGRAMS FOR CERTAIN NONRESIDENT PERSONS

19 TAC §§21.728, 21.731, 21.732

The Texas Higher Education Coordinating Board proposes amendments to §§21.728, 21.731, and 21.732 concerning Determination of Resident Status and Waiver Programs for Certain Nonresident Persons. Specifically, the amendments to §21.728(3) enable institutions to base residency decisions for 2006 - 2007 on core questions that were promulgated by the Board prior to the passage of rules adopted in November, 2005, and based on Senate Bill 1528, 79th Legislature, Regular Session. Thousands of students apply for admission each year by using the Texas Common Application (TCA), which was developed and in place for the 2006 - 2007 academic year before the passage of SB1528. The printing of new TCAs and updating of the electronic application are under way, but without this change in rule institutions would have to require students who had completed the previous core questions and been admitted for fall 2006 to go back and complete a second set of questions. In addition, we do not believe that any of the changes to statute through SB1528 would cause a student who had previously been classified as a resident to lose that eligibility. The issue regarding the timing of the Texas Common Application will exist any time the core is updated and we recommend that this flexibility be added to the residency process. The amendment to §21.728(6) clarifies that international students who have applied for Permanent Resident status are only eligible to establish a domicile in Texas if their applications are being processed and any notice of action that is issued does not indicate the person's application has been rejected. The addition of §21.728(9) is to define "financial need" as referenced in §21.735(5)(C). The addition of this definition required a renumbering of previously numbered §§21.728(9) - (25). The amendment to §21.731 is intended to lessen the reporting burden of students and institutions when the institution has documentation from the student that indicates he or she qualifies as a resident based on having lived in Texas for the 36 months leading up to graduation from high school or the receipt of a GED. There is no need for the student to also complete the core questions, but it is necessary for the institution to have the student sign a shortened form, indicating certain facts that confirm his or her claim to residency. The amendment to §21.732 clarifies that persons who transfer between institutions but are continuously enrolled in public institutions of higher education in Texas will continue to be eligible to base their residency on the classification they received at their previous institution. This provision, by statute, is not limited to students enrolled in 2006.

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

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect there will be more uniformity in the determination of residency among institutions, causing less confusion for students and parents. 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 .

These amendments are proposed under the Texas Education Code, §54.075, which provides the Coordinating Board with the authority to adopt rules to carry out the purposes of Texas Education Code, §§54.0501 - 54.075.

These amendments affect Texas Education Code, §§54.0501 - 54.075.

§21.728.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) Core Residency Questions--the questions promulgated by the Board [ and set forth in Revised Chart II, which is incorporated into this subchapter for all purposes, ] to be completed by a person and used by an institution to determine if the person is a Texas resident. For enrollments prior to the 2007 - 2008 academic year, institutions may use the core questions developed and distributed by the Board in 1999 or later, including the core questions included in the Texas Common Application, or the core questions set forth in Revised Chart II, which is incorporated into this subchapter. The core questions to be used for enrollments on or after the 2007 - 2008 academic year shall be the core questions in the Texas Common Application or in Revised Chart II.

(4) - (5) (No change.)

(6) Eligible for Permanent Resident Status--a person who has filed an I-485 application for permanent residency and has been issued a fee/filing receipt or notice of action by USCIS showing that his or her I-485 has been reviewed and has not been rejected .

(7) - (8) (No change.)

(9) Financial need--The cost of attendance at a institution of higher education less the resources the family has available for paying for college.

(10) [ (9) ] Gainful employment--activities intended to provide an income to a person or allow a person to avoid the expense of paying another person to perform the tasks (as in child care or the maintenance of a home). A person who is self-employed, employed as a homemaker, or who is living off his/her earnings may be considered gainfully employed for purposes of establishing residency, as may a person whose primary support is public assistance.

(11) [ (10) ] General Academic Teaching Institution--The University of Texas at Austin; The University of Texas at El Paso; The University of Texas of the Permian Basin; The University of Texas at Dallas; The University of Texas at San Antonio; Texas A&M University, Main University; The University of Texas at Arlington; Tarleton State University; Prairie View A&M University; Texas Maritime Academy (now Texas A&M University--Galveston); Texas Tech University; University of North Texas; Lamar University; Lamar State College--Orange; Lamar State College--Port Arthur; Texas A&M University--Kingsville; Texas A&M University--Corpus Christi; Texas Woman's University; Texas Southern University; Midwestern State University; University of Houston; University of Texas--Pan American; The University of Texas at Brownsville; Texas A&M University--Commerce; Sam Houston State University; Texas State University--San Marcos; West Texas A&M University; Stephen F. Austin State University; Sul Ross State University; Angelo State University; and The University of Texas at Tyler, and as defined in Texas Education Code, §61.003(3).

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

(13) [ (12) ] Legal guardian--a person who is appointed guardian under the Texas Probate Code, Chapter 693, or a temporary or successor guardian.

(14) [ (13) ] Maintain a residence--to physically reside in a location. The maintenance of a residence is not interrupted by a temporary absence from the state, as provided in §21.730(e) of this title (relating to Determination of Resident Status).

(15) [ (14) ] Managing conservator--a parent, a competent adult, an authorized agency, or a licensed child-placing agency appointed by court order issued under the Texas Family Code, Title 5.

(16) [ (15) ] Nonresident tuition--the amount of tuition paid by a person who does not qualify as a Texas resident under this subchapter unless such person qualifies for a waiver program under §21.735 of this title, (relating to Waivers that Permit Nonresidents to Pay Resident Tuition).

(17) [ (16) ] Parent--a natural or adoptive parent, managing or possessory conservator, or legal guardian of a person. The term does not include a step-parent.

(18) [ (17) ] Possessory conservator--a natural or adoptive parent appointed by court order issued under the Texas Family Code, Title 5.

(19) [ (18) ] Private high school--a private or parochial school accredited by an accrediting agency that is recognized and accepted by the Texas Private School Accreditation Commission. The term does not include a home school.

(20) [ (19) ] Public technical institute or college--the Lamar Institute of Technology or any campus of the Texas State Technical College System.

(21) [ (20) ] Regular semester--a fall or spring semester, typically consisting of 16 weeks.

(22) [ (21) ] Residence--a person's home or other dwelling place.

(23) [ (22) ] Residence Determination Official--the primary individual at each institution who is responsible for the accurate application of state statutes and rules to individual student cases.

(24) [ (23) ] Resident tuition--the amount of tuition paid by a person who qualifies as a Texas resident under this subchapter.

(25) [ (24) ] Temporary absence--absence from the State of Texas with the intention to return, generally for a period of less than five years.

(26) [ (25) ] United States Citizenship and Immigration Services (USCIS)--the bureau of the U.S. Department of Homeland Security that is responsible for the administration of immigration and naturalization adjudication functions and establishing immigration services policies and priorities.

§21.731.Information Required to Initially Establish Resident Status.

(a) To initially establish resident status under §21.730 of this title, (relating to Determination of Resident Status),

(1) a person who qualifies for residency under §21.730(a) shall provide the institution with :

(A) a completed set of Core Residency Questions ; or

(B) a copy of supporting documentation along with a statement of the dates and length of time the person has resided in this state, as relevant to establish resident status under this subchapter and a statement by the person that the person's presence in this state for that period was for the purpose of establishing and maintaining a domicile in Texas. [ as set forth in Revised Chart II, which is incorporated into this subchapter for all purposes. ]

Figure: 19 TAC §21.731(a)(1)(B) (.pdf)

(2) a person who qualifies for residency under §21.730(b) or (c) shall provide the institution with a completed set of Core Residency Questions.

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

§21.732.Continuing Resident Status.

(a) Except as provided under subsection (c) of this section, a person who was enrolled in an institution for any part of the previous [ 2006 ] state fiscal year and who was classified as a resident of this state under Subchapter B, Chapter 54, Texas Education Code, in the last academic period of that year for which the person was enrolled is considered to be a resident of this state for purposes of this subchapter, as of the beginning of the following fall semester[ , 2006 ]. If an institution acquires documentation that a person is a continuing student who was classified as a resident at the previous institution, no additional documentation is required. The person is not required to complete a new set of Core Questions.

(b) - (c) (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 May 15, 2006.

TRD-200602701

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter CC. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM

19 TAC §§21.951 - 21.954, 21.956, 21.957, 21.959

The Texas Higher Education Coordinating Board proposes amendments to §§21.951, 21.952, 21.953, 21.954, 21.956, 21.957 and 21.959 concerning the Early High School Graduation Scholarship Program. Specifically, the amendment to 21.951 reflects the fact that Chapter 21, Subchapter B of Board rules (relating to Determining Residence Status), which reflects residency statutes in effect prior to fall 2006 will be repealed and replaced as of July 2006 by Chapter 21, Subchapter X, (Relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons) adopted by the Board in October 2005. The amendments to §§21.952 and 21.957 are corrections of punctuation or grammatical errors. The amendments to §§21.953(a) and (b) are being made to bring current rules into agreement with provisions of Texas Education Code §56.203, as amended by Senate Bill 1227 of the 79th Legislature, Regular Session. Current statutes reflect the statutory elimination of two old program requirements--a written statement of parental permission to graduate early and no previous awards through the Tuition Credit Program of 1993 - 1994. They also reflect the elimination of references to interim provisions for 2003 - 2005 which are no longer relevant to program operations. The amendments to §21.953(c) add clarity to eligibility of students who graduated on September 1, 2005, and the statutory requirement that recipients have completed high school only by attending public high schools in Texas. They also indicate that when students fail to complete the Recommended High School Curriculum for reasons beyond their control, the school district must provide a written explanation of the extenuating circumstances if it wants the student to be given consideration for an award. They also correct a previous indication that students could receive awards if they graduated in not more than 46 months, when the limit in statute is not more than 45 months. The amendments to §21.954(a) indicate the Board will make the application available though its web site. Amendments to §21.954(b) clarify that the applications, when submitted to the Board, must be signed and certified by the principal. In addition, they clarify the eligibility of students who graduated on September 1, 2005, and reflect the elimination of references to interim provisions for 2003 - 2005 which are no longer relevant to program operations. The addition of §21.954(c) indicates that if an award is made based on incorrect information from the school district, the district will be held responsible for making reimbursements to the program. Changes to renumbered §21.954(d) indicate applications should not be submitted to the Board more than 30 days prior to a student's graduation from high school. This change is made in order to improve the accuracy of the applications submitted to the Board. Changes to renumbered §21.954(d) also eliminate references to interim program provisions that are no longer relevant. The amendment to renumbered §21.954(g) reflects that in order for a student to receive an eligibility letter for an institution other than the one indicated on the original application, he or she must notify the Board of the change. The amendments to §21.956(a)(1) and renumbered (3) are made primarily to eliminate references to interim provisions and restrictions that are no longer relevant to program operations and clarify the statutory provision that students who graduated prior to 9/1/2005 may use their awards only for paying tuition (not fees). Amendments to §21.956(a)(1)(C) is repealed but re-worded with clearer language in the new (a)(2). Renumbered §21.956(a)(4) is reworded to add clarity regarding the use of Early High School Graduation Scholarships by students who graduated prior to 9/1/2005 to take unfunded continuing education courses. The amendments to §21.956(b) clarify the status of students who graduate on September 1, 2005, and clarify that the awards for students who graduate on or after 9/1/2005 may be used for paying for tuition and mandatory fees. Section 21.956(b)(1)(D) is renumbered to reflect the fact that it applies to all levels of awards listed in §21.956(b)(1) and renumbered §21.956(b)(3) is reworded to add clarity regarding the use of Early High School Graduation Scholarships by students who graduate on or after 2/1/2005 to take unfunded continuing education courses. The amendments to §21.959 reflect the elimination of references to interim provisions for 2003 - 2005 which are no longer relevant to program operations and to add active duty military service as a basis of granting a hardship extension of a student's period of eligibility.

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 are no fiscal implications for these amendments because the program is funded through the Foundation Program. The program is funded through the savings generated from students graduating early. The savings per student more than offset the costs of awarding the scholarships. There will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect, the public benefit would be that rules are no longer cluttered with provisions that have lapsed and language is simplified to make the rules easier to understand. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

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

The amendments are proposed under the Texas Education Code, §56.209, which states that the Coordinating Board is authorized to adopt rules to administer Texas Education Code, Chapter 56, Subchapter K, relating to the Early High School Graduation Scholarship Program.

The amendments affect the Texas Education Code, §§56.202 - 56.209.

§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) - (5) (No change.)

(6) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter X [ 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) - (b) (No change.)

(c) Responsibilities.

(1) (No change.)

(2) Disbursements to Students.

(A) (No change.)

(B) Procedures in Case of Illegal Disbursements. If the Commissioner has reason for concern that an [ 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) - (4) (No change.)

§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 [ from high school before September 1, 2003 or who graduated between September 1, 2003, and ] September 1, 2005[ , under conditions listed in subsection (b) of this section ] must:

(1) be a resident of Texas; and

(2) have completed the requirements for a high school diploma in not more than [ graduate from a Texas public high school within ] thirty-six consecutive 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) A student who graduated between September 1, 2003, and September 1, 2005, without completing the Recommended or Advanced High School Program, may receive an award through the Early High School Graduation Scholarship as it existed on August 31, 2003, if the student's high school counselor provides the Board a certified statement that the student was on track as of August 31, 2003, to graduate in accordance with Early High School Graduation Scholarship program requirements in place at that time, and the student graduated meeting requirements listed in subsection (a) this section. ]

(b) [ (c) ] To receive an award through the Early High School Graduation Scholarship Program, a student [ other than those described in subsection (b) of this section ] who graduated from high school on or after September 1, 2005, [ 2003 ] must:

(1) (No change.)

(2) have attended high school exclusively in one or more public high schools in this state [ 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 provides a written explanation along with [ 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) shortage of qualified teachers [ course scheduling ];

(B) - (C) (No change.)

(4) have graduated:

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

(B) in not more than 45 [ 46 ] consecutive months, if the student graduated with at least 30 hours of college credit.

(c) [ (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 and/or download them from the CollegeforTexans web site .

(b) The application has three parts. The completed forms must be certified [ 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, 2005 [ 2003, and students who graduated between September 1, 2003, and September 1, 2005, in accordance with §21.953 (b) of this title (relating to Eligible Students) ].

(2) Parts I, II, and III are to be completed for all applicants who graduated on or after September 1, 2005 [ 2003 ].

(c) If a student is incorrectly certified by a school district as eligible for an exemption, the school district is responsible for reimbursing the program for any funds that might be issued to the student through the program.

(d) [ (c) ] High school counselors [ or principals ] are to send the completed and signed applications certified by the principal to the Board for processing. Applications should not be sent to the Board more than 30 days prior to a student's graduation date. [ If the application is for a student who qualifies for an award in accordance with §21.953(b) of these rules, the application must be accompanied by a certified statement from the high school counselor, on high school letterhead, confirming the student was on track on August 31, 2003, to graduate under the provisions of the Early High School Graduation Scholarship Program as it existed at that time. ]

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

(f) [ (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.

(g) [ (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.

(h) [ (g) ] If the student chooses to attend an institution other than the one indicated in the application, he or she must [ 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.

§21.956.Award Amounts and Processing Cycle.

(a) Amounts for students graduating prior to September 1, 2005. [ 2003 or between September 1, 2003 and September 1, 2005, in accordance with conditions outlined in §21.953(b) of this title (relating to Eligible Students). ]

(1) The aggregate amount of state [ tuition ] credit that shall be awarded to a student through this program may not exceed $1,000 to be applied only toward tuition. [ 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) 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.

(3) [ (2) ] If a state [ 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.

(4) [ (3) ] State credits may not be used for continuing education classes that do not receive formula funding. [ 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 on or after September 1, 2005 [ 2003, other than those graduating under the conditions outlined in §21.953(b) of this title ]:

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

(A) $2,000 to apply toward tuition and mandatory fees 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 to apply toward tuition and mandatory fees 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 to apply toward tuition and mandatory fees if the student completed the Recommended or Advanced High School Program and graduated from high school in more than 41 consecutive months but not more than 45 [ 46 ] consecutive months with at least 30 hours of college credit.

(2) [ (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.

(3) [ (2) ] State credits may not be used for continuing education classes that do not receive formula funding. [ 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) (No change.)

§21.957.Reimbursements.

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

(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 institution [ 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 [ foundation school fund ] for use in reimbursing institutions or students for their Early High School Graduation Scholarship program awards.

§21.959.Hardship Provisions.

An otherwise eligible student as defined under §21.953(a) and (b) of this subchapter [ who graduated from high school on or after September 1, 2003, other than those who graduated in accordance with the requirements outlined in §21.953(b), ] 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 ; or [ . ]

(3) active duty or other service in the United States armed forces.

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 15, 2006.

TRD-200602703

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Subchapter MM. DOCTORAL INCENTIVE LOAN REPAYMENT PROGRAM

19 TAC §21.2083, §21.2084

The Texas Higher Education Coordinating Board proposes amendments to §21.2083 and §21.2084, concerning the Doctoral Incentive Loan Repayment Program. Specifically, the amendment to §21.2083 would amend the definition of "low income school" to include high schools whose percentage of economically disadvantaged students is greater than or equal to the statewide average for the same year. The amendments to §21.2084 would allow applicants to be considered eligible for participation if, in addition to meeting all other program requirements, they attended (or resided in an area near) a high school that was among the lowest 50 percent of Texas high schools with regard to sending students to college.

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 be no fiscal implications 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 encourage greater participation in the program. There is no effect on small businesses. There are 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 proposal may be submitted to Lois Hollis, P.O. Box 12788, Austin, Texas 78711, (512) 427-6465, Lois.Hollis@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register .

The amendments are proposed under the Texas Education Code, §56.091, which authorizes the Coordinating Board to establish and administer the Doctoral Incentive Loan Repayment Program and adopt rules as necessary.

The amendments affect the Texas Education Code, §§56.091 - 56.095.

§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) - (6) (No change.)

(7) Low Income School--a high school in which the percentage of [ that has at least 10 percent more ] economically disadvantaged students is greater than or equal to the statewide average for the same year, according to data published by the Texas Education Agency.

(8) - (10) (No change.)

§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) (No change.)

(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 50 [ 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 50 [ ten ] percent among high schools, with regard to sending students to public institutions of higher education; or

(ii) a low-income school;

(3) - (5) (No change.)

(b) (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 May 15, 2006.

TRD-200602704

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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


Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter B. PROVISIONS FOR THE TUITION EQUALIZATION GRANT PROGRAM

19 TAC §22.27

The Texas Higher Education Coordinating Board proposes an amendment to §22.27 concerning the Tuition Equalization Grant Program. Specifically, Senate Bill 1227, 79th Legislature, authorized the awarding of grants equal to 150 percent of the basic grant amount to students otherwise eligible for the Tuition Equalization Grant and who have exceptional financial need. This amendment will clarify that this provision applies to all students, new and continuing, who are awarded Tuition Equalization Grants on or after September 1, 2005.

Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the amendment is in effect, there will be no fiscal implications 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 amendment is in effect the public benefit anticipated as a result of administering the amended section will be improved ability on the part of the Tuition Equalization Grant program to meet the financial needs of exceptionally needy students. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the amendment 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 amendment is proposed under the Texas Education Code, §61.229, which provides the Coordinating Board with the authority to adopt rules necessary to implement the Tuition Equalization Grant Program.

The amendment affects the Texas Education Code, §§61.221 - 61.230.

§22.27.Award Amounts and Uses.

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

(c) Program maximum.

(1) (No change.)

(2) An undergraduate awarded a [ his or her initial ] TEG grant on or after September 1, 2005, and who has exceptional financial need may receive a grant in an amount not to exceed 150 percent of the program maximum.

(d) - (f) (No change.)

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

Filed with the Office of the Secretary of State on May 15, 2006.

TRD-200602705

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 20, 2006

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