TITLE 19. EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 1. AGENCY ADMINISTRATION

Subchapter A. GENERAL PROVISIONS

19 TAC §1.18

The Texas Higher Education Coordinating Board proposes new §1.18, concerning Agency Administration. Specifically, this new section will provide rules for the operation of the Education Research Centers created by Texas Education Code §1.005.

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

Ms. Brown 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 ability for the Education Research Centers to have access to data that will allow them to research topics related to P-16 education. 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 Susan Brown, Assistant Commissioner, 1200 East Anderson Lane, Austin, Texas 78752, susan.brown@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, §61.027, which provides the Coordinating Board with the authority to adopt rules, and Texas Education Code, §1.005 (j), which authorizes the Coordinating Board and the Commissioner of Education to make rules to implement §1.005.

The new section affects Texas Education Code, §1.005.

§1.18.Operation of Education Research Centers.

(a) DRAFT ERC Rules Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context clearly indicates otherwise.

(1) "FERPA" means the Family Educational Rights and Privacy Act, 42 U.S.C. 1232g, including regulations and informal written guidance issued by the United States Department of Education and any amendments or supplementation thereof.

(2) "Confidential information" as applied to data provided to an Education Research Center (ERC) by Texas Education Agency (TEA) or the Texas Higher Education Coordinating Board (CB) includes all student-level data, including any data cells small enough to allow identification of an individual student. All social security numbers, student names, student birthdates and data cells containing between one and four students, inclusive, are confidential.

(3) "Small data cells" will be considered any cell containing between one and four students inclusive. Information may not be disclosed where small data cells can be determined through subtraction or other simple mathematical manipulations or subsequent cross-tabulation of the same data with other variables. Institutions may use any of the common methods for masking including:

(A) hiding the small cell and the next larger cell on the row and column so the size of the small cell can not be determined; or

(B) hiding the small cell and displaying the total for both the row and column as a range of at least ten; or

(C) any methodology approved by the TEA and CB.

(b) Purpose.

(1) ERCs may be established by joint approval of the commissioner of education and the CB. An ERC may only be established at a sponsoring public institution of higher education in Texas, but may be awarded to a consortium of such institutions. An ERC must be physically located within Texas and may not provide access to student-level data at any other location.

(2) The CB is responsible for general oversight, technical assistance and state support of ERCs, except as otherwise provided in this chapter. All policy decisions and rulemaking shall be jointly approved by TEA and the CB.

(3) Sponsoring institutions of higher education are responsible for all equipment, salaries and other operating costs of an ERC, including staff and necessary equipment at TEA and the CB necessary to prepare and maintain data for the ERCs, as well as reimbursable expenses of the Joint Advisory Board.

(c) Joint Advisory Board.

(1) The commissioner of education and the commissioner of higher education shall co-chair an advisory board to review and approve research involving access to confidential information and to adopt policies governing ERC operations. Each commissioner may delegate to an agency employee the ability to act as co-chair and vote on matters coming before the Joint Advisory Board.

(2) The commissioner of education and the commissioner of higher education shall jointly appoint ten additional members to the Joint Advisory Board. All research involving access to confidential information must be approved by the said board.

(3) Members of the Joint Advisory Board serve at the pleasure of the commissioner of education and the commissioner of higher education and must be reappointed annually. The Joint Advisory Board will post its agenda and conduct its meetings in compliance with the Texas Open Meetings Act.

(4) The Joint Advisory Board shall meet at the call of the two chairs at least twice each year.

(d) Operation.

(1) An ERC may operate only under written authorization by the commissioner of education and the CB. Status as an ERC may not be assigned, delegated or transferred to any other entity.

(2) An ERC shall be lead by a managing director who is a professional employee of the sponsoring institution of higher education (IHE). The managing director shall report directly to the chief operating officer of the sponsoring IHE unless a different reporting structure is approved by TEA and the CB.

(3) All research at an ERC involving access to confidential information shall be conducted only with the approval of and under the joint oversight of TEA and the CB through the Joint Advisory Board. Research that does not involve access to confidential information may be conducted by the ERCs without approval of the Joint Advisory Board upon 30 days notice to TEA and the CB and certification by the ERC that sufficient resources will be available to meet all demands for resources to conduct research or manipulate data under the direction of the Joint Advisory Board or on behalf of TEA or the CB.

(4) Confidential information provided to an ERC by TEA or the CB shall be protected by procedures to ensure that any unique identifying number is not traceable to any individual. Such procedures must be maintained as confidential by TEA and the CB and may not be shared with an ERC, or used for any other purpose. Under no circumstances may social security numbers, names, or birthdates be accessed for the purpose of research at an ERC.

(5) ERCs shall adopt written procedures for research conducted using confidential information, subject to approval by the Joint Advisory Board. An ERC may not access confidential information until all such procedures are approved. Such procedures shall include:

(A) measures to ensure against unauthorized disclosure of confidential information;

(B) independent review of all research products to ensure against unauthorized disclosure of confidential information;

(C) review of all datasets created by a researcher to ensure that confidential information is not copied or removed from the ERC;

(D) annual certification of full compliance with all requirements of state and federal laws and regulations regarding the use of confidential information for research purposes by the internal auditor of each participating IHE;

(E) approval of research design by an accredited IHE, including any applicable requirements for research involving human subjects, before submitting a research proposal to the Joint Advisory Board for approval; and

(F) criteria for allocating research access capacity for researchers not affiliated with the sponsoring IHEs.

(6) All research produced at an ERC shall:

(A) be made available upon request to TEA and the CB;

(B) be available for public distribution, copying or reproduction at no cost to TEA or the CB;

(C) contain a disclaimer in a form acceptable to TEA and the CB stating that the conclusions of the research do not necessarily reflect the opinion or official position of those entities or of the State of Texas;

(D) be reviewed before publication or other distribution by individuals other than those conducting the research to ensure that confidential information is not disclosed, in accordance with guidelines adopted under FERPA or by TEA or the CB;

(7) An ERC shall comply with the requirements of the Texas Public Information Act, including requirements relating to data manipulation. An ERC shall process any Public Information Act requests referred by TEA or the CB in a timely manner. Charges for processing Public Information Act requests shall be based on guidelines developed by the Texas Attorney General's Office and approved by the Joint Advisory Board.

(8) A sponsoring IHE shall cooperate fully with all audit requests made by TEA or the CB. Each ERC shall annually request and undergo a security audit performed by the Texas Department of Information Resources, or a contractor approved by that Department, which shall include a penetration test of computer equipment and access.

(e) Sanctions and Termination.

(1) Upon a determination that confidential information has been released or has been copied to another location, or that appropriate security measures are not in place to protect confidential information, the Joint Advisory Board may require an ERC to obtain appropriate services or equipment or to remove confidential information from such other location in order to remedy a security deficit. Such services or equipment shall be purchased by the ERC from vendors subject to approval of the Joint Advisory Board.

(2) An ERC may be terminated by joint action of TEA and the CB for failure to meet the requirements of state or federal law, of this subchapter, or of the terms of a contract establishing the ERC. An ERC shall be entitled to an informal review of a determination to terminate its status by a designee of the commissioner of education and the commissioner of higher education prior to the effective date of the termination.

(3) Notice of termination under subsection (a) and (b) of this section shall be provided to the ERC's designated representative and shall contain information regarding the reasons for the termination.

(4) A termination made pursuant to this section shall become final and binding unless, within 30 days of its receipt of the notice of termination, the ERC invokes the administrative remedies contained in Chapter 1, subchapter B of the Rules of the CB (relating to Hearings and Appeals).

(5) Any ultimate recommendation regarding termination shall be made to both the CB and the commissioner of education. The CB and the commissioner of education must concur for any termination of an ERC invoking such administrative remedies to become final.

(f) Security.

(1) An ERC must comply with all requirements of FERPA in accessing confidential information to conduct research. Notwithstanding any other provision in this subchapter, failure to maintain adequate security to avoid the unauthorized disclosure of confidential information provided to the ERC shall be grounds for immediate termination of the authorization to access such data.

(2) All physical locations at which confidential information may be accessed at an ERC must be located within Texas, at a sponsoring IHE, and approved by both TEA and the CB.

(3) Either TEA or the CB may suspend access to confidential information provided to an ERC based on a significant risk of unauthorized disclosure of confidential information.

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 21, 2007.

TRD-200701951

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


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

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

19 TAC §4.85

The Texas Higher Education Coordinating Board proposes an amendment to §4.85, concerning Dual Credit Requirements. Specifically, this amendment will provide more high school students with access to college-level courses.

Dr. Glenda O. Barron, Associate Commissioner of Participation and Success, has determined that for each year of the first five years the section is in effect, there will not be any fiscal implications to state or local government as a result of enforcing or administering the rules.

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 providing more high school students with access to college-level courses. 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 Glenda O. Barron, Associate Commissioner of Participation and Success, P.O. Box 12788, Austin, Texas 78711 or via email at Glenda.Barron@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, §§29.182, 29.184, 61.027, 61.076(J), 130.001(b)(3) - (4), 130.008, 130.090, and 135.06(d), which provides the Coordinating Board with the authority to regulate dual credit partnerships between public two-year associate degree-granting institution and public universities with secondary schools.

The amendment affects §§29.182, 29.184, 61.027, 61.076(J), 130.001(b)(3) - (4), 130.008, 130.090, and 135.06(d).

§4.85.Dual Credit Requirements.

(a) (No change.)

(b) Student Eligibility.

(1) (No change.)

(2) An eleventh grade high school student is also eligible to enroll in dual credit courses under [ either of ] the following conditions;

(A) a student achieves a score of 2200 on Mathematics and/or a score of 2200 on English Language Arts with a writing subsection score of at least 3 on the tenth grade TAKS relevant to the courses to be attempted. An eligible high school student who has enrolled in dual credit courses in the eleventh grade under this provision shall not be required to demonstrate further evidence of eligibility to enroll in dual credit courses in the twelfth grade; or

(B) the student achieves a combined score of 107 on the PSAT/NMSQT with a minimum of 50 on the critical reading and/or mathematics test relevant to the courses to be attempted. An eligible high school student who has enrolled in dual credit under this provision must demonstrate eligibility to enroll in dual credit courses in twelfth grade; or

(C) the student achieves a composite score of 23 on the PLAN with a 19 or higher in mathematics and English. An eligible high school student who has enrolled in dual credit under this provision must demonstrate eligibility to enroll in dual credit courses in twelfth grade.

(3) - (9) (No change.)

(c) - (i) (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 21, 2007.

TRD-200701966

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Chapter 13.FINANCIAL PLANNING

Subchapter K. TECHNOLOGY WORKFORCE DEVELOPMENT GRANT PROGRAM

19 TAC §13.193

The Texas Higher Education Coordinating Board (CB) proposes an amendment to §13.193 concerning the periodicity and frequency of new request for proposals it issues for the Technology Workforce Development (TWD) Grant Program. Specifically, this amendment will allow the CB to be flexible and issue requests for proposals in response to when federal money becomes available for a new cycle of grants.

Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and 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 rules.

Dr. Stafford 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 a quicker, more effective, and more appropriate CB response to the requirements and needs of both the agencies granting federal funds to the program and the potential subrecipient institutions. 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 Reinold Cornelius, Program Director, Department of Research, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or Reinold.Cornelius@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, §51.857, which provides the Coordinating Board with the authority to administer a peer-review grants competition for the Technology Workforce Development Grant Program.

The amendment affects implementation of Texas Education Code, §51.857.

§13.193.Proposal Solicitation.

(a) The [ At least once each biennium, and no more often than once each fiscal year, the ] Board shall authorize distribution of a request for proposals.

(b) - (e) (No change.)

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

Filed with the Office of the Secretary of State on May 21, 2007.

TRD-200701954

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Chapter 17. CAMPUS PLANNING

Subchapter D. RULES APPLYING TO NEW CONSTRUCTION AND ADDITION PROJECTS

19 TAC §17.30

The Texas Higher Education Coordinating Board proposes an amendment to §17.30, concerning Campus Planning. Specifically, the amendment to §17.30(2)(B) will apply current and applicable industry costs standards for facility projects.

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

Ms. Brown 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 the ability to apply current industry standards to measure costs effectiveness for facility projects. 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 Jeff Treichel, Director Finance and Resource Planning, P.O. Box 12788, Austin, Texas 78711; jeff.treichel@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, §61.027 and §61.058.

The amendment affects the Texas Education Code §61.058.

§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) (No change.)

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

(A) (No change.)

(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 based on industry standards [ reported to R.S. Means ] unless the institution can demonstrate that the higher cost is due to market conditions or other circumstances that warrant the higher cost.

(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 21, 2007.

TRD-200701952

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Subchapter K. REPORTS

19 TAC §17.101

The Texas Higher Education Coordinating Board proposes amendments to §17.101, concerning Campus Planning. Specifically, the amendments to §17.101(3)(A) will set up an annual uniform reporting date for the status of all approved facility projects until completion.

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

Ms. Brown 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 accountability of institutions for complying with state standards for facility projects. 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 Jeff Treichel, Director Finance and Resource Planning, P.O. Box 12788, Austin, Texas 78711; jeff.treichel@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, §61.027, §61.058, and §61.0583.

The amendments affect the Texas Education Code §61.058 and §61.0583.

§17.101.Institutional Reports.

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

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

(3) Project Status and Tracking Reports.

(A) Annually, on or before November 1 [ from the date of approval ], institutions shall report the status of all [ an ] approved projects [ 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 sources(s) of funding; and

(B) If the actual costs, square footage, or sources(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) - (5) (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 21, 2007.

TRD-200701953

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Chapter 21. STUDENT SERVICES

Subchapter C. HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM

19 TAC §21.55

The Texas Higher Education Coordinating Board proposes amendments to §21.55 concerning the Hinson-Hazlewood College Student Loan Program. Specifically, the proposed amendments would remove the requirement, for the College Access Loan (CAL) Program, that cosigner signatures be notarized and would clarify that cosigners must receive a favorable credit report evaluation to qualify as eligible cosigners.

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

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 this change will be improved efficiency in the delivery of loan funds to students and the rules will more 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 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, §§52.31-52.40, which provides the Coordinating Board with the authority to establish procedures to administer the Hinson-Hazlewood College Student Loan Program and Texas Education Code, §52.31, which provides the Coordinating Board with the authority to adopt rules to effectuate the provisions of Texas Education Code, Chapter 52.

The amendments affect Texas Education Code, §§52.31 - 52.40.

§21.55.Eligibility of Students.

(a) Subject to the requirement in subsection (b) of this provision, the Commissioner may authorize, or cause to be authorized, Hinson-Hazlewood College Student Loans to students at any eligible institution which certifies that the student meets program qualifications, if the student:

(1) - (7) (No change.)

(8) for CALP loans, has received a favorable evaluation of his/her credit report or has obtained the [ notarized ] signature of a qualified cosigner/accommodation party who has received a favorable evaluation of his/her credit report ;

(9) - (10) (No change.)

(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 21, 2007.

TRD-200701955

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Subchapter M. TEXAS COLLEGE WORK-STUDY PROGRAM

19 TAC §21.402, §21.404

The Texas Higher Education Coordinating Board proposes amendments to §21.402 and §21.404 concerning the Texas College Work-Study Program. All amendments are proposed in order to delete references to the Work-Study Mentorship Program. Rules for the mentorship program will be proposed in new sections of Board rules. Specifically, amendments to §21.402 are proposed to remove definitions of "Junior", "Mentor", and "Senior"--terms relevant only to the mentorship program and not necessary for the general work-study program and include renumbering the remaining definitions. In addition, amendments to the definition of "Resident of Texas" reflect that Senate Bill 1528, 79th Texas Legislature, Regular Session, enacted Texas Education Code, §§54.0501 - 54.075, establishing new provisions to determine if a person is a Texas resident for tuition purposes at institutions of higher education. The new sections were applied beginning with enrollments for the Fall Semester 2006. Amendments to §21.404 remove language that defines the eligibility requirements for students employed through the mentorship program.

Ms. Lois Hollis, Assistant Commissioner for Student Services, in keeping with the Legislative Budget Board's fiscal note for Senate Bill 201, has determined that for each year of the first five years the amendments are in effect, there will be no significant fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of administering the sections will be a free-standing set of rules for the Mentorship Program, making it easier for the participants to understand the program's unique requirements. 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, §56.077 which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 56, Subchapter E.

The amendments affect Texas Education Code, §§56.071 - 56.079.

§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) - (9) (No change.)

[ (10) Junior--a person who has completed at least 60 semester credit hours of college work, including hours acquired while dual-enrolled or through examination.]

[ (11) Mentor--an individual employed to help students raise their academic performance to meet institutional standards.]

(10) [ (12) ] Program--the Texas College Work-Study Program.

(11) [ (13) ] 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) [ (14) ] Resident of Texas--A resident of the State of Texas as determined in accordance with §21.727 [ §21.21 ] through §21.736 [ §21.27 ] of this title (relating to Determination of [ Determining ] Residence Status and Waiver Programs for Certain Nonresident Persons ). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

[ (15) Senior--a person who has completed at least 90 semester credit hours of college work, including hours acquired while dual-enrolled or through examination, but who has not yet acquired a bachelor's degree.]

§21.404.Eligible Student Employees.

(a) (No change.)

[ (b) To be eligible for employment in the mentorship program, a person shall:]

[ (1) meet all the requirements of §21.404(a) of this subsection (relating to Eligible Student Employees),]

[ (2) be enrolled as a junior or senior, and]

[ (3) meet his or her institution's standards for employment as a tutor.]

(b) [ (c) ] 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.

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 21, 2007.

TRD-200701958

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


19 TAC §§21.405 - 21.411

(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 §§21.405 - 21.411 concerning the Texas College Work-Study Program. Specifically, §§21.405 - 21.411 are proposed for repeal in order to delete references to the Work-Study Mentorship Program from Board rules. Rules for the mentorship program will be proposed in new sections of Board rules.

Ms. Lois Hollis, Assistant Commissioner for Student Services, in keeping with the Legislative Budget Board's fiscal note for Senate Bill 201, has determined that for each year of the first five years the repeal is in effect, there will be no significant 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 repeal is in effect the public benefit anticipated as a result of administering the sections will be a free-standing set of rules for the Mentorship Program, making it easier for the participants to understand the program's unique requirements. 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 repeal is proposed under the Texas Education Code, §56.077, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 56, Subchapter E.

The repeal affects Texas Education Code, §§56.071 - 56.079.

§21.405.Students Eligible for Mentoring.

§21.406.Eligible Employers.

§21.407.Award Amounts and Uses.

§21.408.Allocation and Disbursement of Funds.

§21.409.Dissemination of Information and Rules

§21.410.Mentorship Progress Report.

§21.411.Authority to Transfer Funds.

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 21, 2007.

TRD-200701957

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


19 TAC §§21.405 - 21.409

The Texas Higher Education Coordinating Board proposes new §§21.405 - 21.409 concerning the Texas College Work-Study Program. Specifically, the new sections are proposed as a result of deleting sections that reference the Work-Study Mentorship Program. Rules for the mentorship program will be proposed in new sections of Board rules. New §21.405 describes requirements of eligible employers and removes language that defines eligible employers for the mentorship program. New §21.406 describes award amounts and uses and removes language that describes the use of funds for the mentorship program. New §21.407 describes the procedure whereby work-study funds are to be allocated and disbursed to institutions. New §21.408 describes how information and rules about the program are to be disseminated. New §21.409 describes under what circumstances institutions may transfer funds among programs.

Ms. Lois Hollis, Assistant Commissioner for Student Services, in keeping with the Legislative Budget Board's fiscal note for Senate Bill 201, has determined that for each year of the first five years the new rules are in effect, there will be no significant 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 new rules are in effect the public benefit anticipated as a result of administering the sections will be a free-standing set of rules for the Mentorship Program, making it easier for the participants to understand the program's unique requirements. 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, §56.077 which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 56, Subchapter E.

The new sections affect Texas Education Code, §§56.071 - 56.079.

§21.405.Eligible Employers.

(a) An eligible institution may enter into agreements with outside employers to participate in the general work-study 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) unless eligible for a waiver of matching funds under subsection (b) of this section, provide not less than 25 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.

(b) Institutions eligible to receive Title III funds from the U. S. Department of Education are exempted from the general work-study program requirement to provide 25 percent of an employed student's wages, if they provide the Board with a copy of a current Title III eligibility letter from the U. S. Department of Education.

§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 general 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.

§21.409.Authority to Transfer Funds.

Institutions participating in a combination of the Toward EXcellence, Access and Success Grant, Tuition Equalization Grant, and Texas College Work-Study Programs, in accordance with instructions from the Board, may transfer in a given fiscal year up to the lesser of 10 percent or $10,000 between these programs.

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 21, 2007.

TRD-200701956

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


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

19 TAC §21.735

The Texas Higher Education Coordinating Board proposes an amendment to §21.735(5)(B)(ii), concerning Student Services regarding waiver program for certain nonresident persons. Specifically, this amendment will remove the stipulation that the higher education institution must have a surplus of space above the amount of predicted space calculated by the latest space projection model.

Ms. Susan Brown, Assistant Commissioner for Planning and Accountability, has determined that for each year of the first five years the section is in effect, there will be approximately $3,500,000 in waived out of state tuition based on the existing waivers reported by the academic institutions as a result of enforcing or administering the rules.

Ms. Brown, Assistant Commissioner for Planning and Accountability, 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 ability of the general academic institutions to compete in the recruitment of students in the geographic region of the institution. 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 Gary Johnstone, Deputy Assistant Commissioner, 1200 East Anderson Lane, Austin, Texas 78752, gary.johnstone@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, §54.00601, which provides the Coordinating Board with the authority to establish rules.

The amendment affects no statutes.

§21.735.Waiver Programs for Certain Nonresident Persons.

A person who is classified as a nonresident under the provisions of this section shall be permitted to pay resident tuition, if the person qualifies for one of the following waiver programs:

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

(5) Programs for Lowered Tuition for Individuals from Bordering States or Mexico.

(A) (No change.)

(B) Programs That Do Not Require Reciprocity. Persons who reside in another state may pay a lowered nonresident tuition not less than $30 per semester credit hour above the current resident tuition rate when they attend a general academic teaching institution located within 100 miles of the Texas border if:

(i) (No change.)

(ii) the Commissioner approves the tuition rate [ by finding that the institution has a surplus of total educational and general space as calculated by the Board's most current space projection model ]. This obligation to obtain the approval of the Commissioner is continuing and approval to participate in this waiver program must be obtained at least every two years.

(C) (No change.)

(6) - (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 May 21, 2007.

TRD-200701959

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Subchapter II. EDUCATIONAL AIDE EXEMPTION PROGRAM

19 TAC §21.1081, §21.1083

The Texas Higher Education Coordinating Board proposes amendments to §21.1081 and §21.1083, concerning the Educational Aide Exemption Program.

Specifically, the amendment to §21.1081(4) adds a definition for "educational aide" and clarifies that substitute teachers who have worked in the classroom with students for a minimum of 180 full days in a teaching capacity are included in the definition, allowing such persons to qualify for an exemption under this program. Subsequent definitions in §21.1081 are renumbered accordingly. The definition of "Resident of Texas" is amended to reflect that Senate Bill 1528, 79th Texas Legislature, Regular Session, enacted Texas Education Code, §§54.0501 - 54.075, establishing new provisions to determine if a person is a Texas resident for tuition purposes at institutions of higher education. The new sections were applied beginning with enrollments for the Fall Semester 2006. The amendment to §21.1083 incorporates the definition of "educational aide" into the requirements for being considered an eligible student.

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 be no fiscal implications to state or local government as a result of enforcing or administering these changes in the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of administering the sections will be better understanding of the ability of certain substitute teachers to participate in the Educational Aide Exemption Program. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

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

The amendments are proposed under the Texas Education Code, §54.214(e), which authorizes the Coordinating Board to establish and administer scholarships for the educational aide exemption program.

The amendments affect Texas Education Code, §54.214.

§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) - (3) (No change.)

(4) Educational Aide--A person who has been employed by a public school district in Texas in a teaching capacity working in the classroom directly with the students for at least one year on a full-time basis. It may include substitute teachers who have been employed by a public school district in Texas for 180 or more full days in a teaching capacity working in the classroom directly with students.

(5) [ (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.

(6) [ (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.

(7) [ (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.

(8) [ (7) ] Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter X [ B ], §§21.727 - 21.736 of this title (relating to Determination of [ Determining ] Residence Status and Waiver Programs for Certain Nonresident Persons ). Nonresident students who are eligible to pay resident tuition rates are not residents of Texas.

§21.1083.Eligible Students.

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

(1) (No change.)

(2) have met the definition of an Educational Aide at some time [ at least one school year of full-time experience as an educational aide ] during the five years preceding the term or semester for which the student is awarded his or her initial exemption;

(3) - (7) (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 21, 2007.

TRD-200701960

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Subchapter NN. EXEMPTION PROGRAM FOR VETERANS AND THEIR DEPENDENTS (THE HAZELWOOD ACT)

19 TAC §§21.2100 - 21.2103, 21.2105, 21.2108

The Texas Higher Education Coordinating Board proposes amendments to §§21.2100 - 21.2103, 21.2105, and 21.2108, concerning the Exemption Program for Veterans and Their Dependents (The Hazlewood Act).

Specifically, the amendment to §21.2100(4) defines a child who will be eligible to receive a Hazlewood Act exemption because an otherwise eligible parent chooses to assign his or her unused hours of eligibility to the child. The previous definition of "children" is now provided as §21.2100(18) under the definition of "Surviving Children," which is relevant for children who are eligible for a Hazlewood Act exemption because an otherwise eligible parent is deceased. Section 21.2100(5) is deleted because the term "citizen of Texas" no longer appears in the Hazlewood Act statute. Section 21.2100(6) - (18) are renumbered due to the deletion of the definition of "Citizen of Texas," formerly §21.2100(5). Amendments to renumbered §21.2100(7) reflect the deletion of information irrelevant to the Hazlewood Act exemption regarding the dependency of a child. The statute does not require surviving children to be dependents at the time their veteran parent dies in order to qualify for a survivor exemption. Amendments to renumbered §21.2100(16) correct the cross-reference to Coordinating Board rules regarding residency, which now exist as Chapter 21, §§21.727 - 21.736. Section 21.2100 new paragraph (18) is added to provide a distinct definition for a surviving child of a veteran. Amendments to §21.2101 delete subsection (g), regarding flight training at community colleges because this section no longer appears in the Hazlewood Act statute. Section 21.2101(h) and (i) are relettered as (g) and (h). Amendments to §21.2102(a)(1) reflect new language from Senate Bill 874, passed by the 80th Texas Legislature, which eliminated the requirement that a veteran have been a citizen of Texas at the time he or she entered the service. The phrase "citizen of Texas" had been interpreted by the State Attorney General in AG-347, issued August 18, 2005, to mean the veteran had to be a U.S. citizen at the time of entry into service. Texas Education Code, §54.203, The Hazlewood Act statute, as amended by Senate Bill 874, does not use the term "citizen of Texas." Amendments to §21.2102(a)(1)(B) eliminate an outdated reference to Coordinating Board rules on residency. The remaining language relies on the definition of "resident of Texas," as provided in §21.2100(17). Amendments to §21.2102(3) now have the paragraph rely on the definition of "honorably discharged" as provided in §21.2100(12). Amendments to §21.2102(5) clarify that persons cannot receive Hazlewood exemptions if they are in default on a federal loan but only if that default causes the student to lose access to his or her federal veterans' benefits. Amendments to §21.2103(1)(A) reflect changes to the Hazlewood Act arising from the passage of S.B. 874 and H.B. 125 by the 80th Texas Legislature. In particular, S.B. 874 allows persons to qualify for the exemption if they were residents of Texas at the time they entered the service or if their place of entry into the service was Texas. H.B. 125 opens the program to the children of veterans who become totally disabled for purposes of employability. In the past, the only children who could participate were children of deceased veterans. Amendments to §21.2103(1)(B) reflect changes to the exemption from the passage of H.B. 125, which opens the program to the children of certain Texas National Guard or Texas Air National Guard members who are totally disabled. In the past, only children of deceased members of the Guard could participate. Amendments to §21.2105 adjust the documentation to be collected by institutions in determining student eligibility in keeping with the provisions of S.B. 874 that allow persons to qualify for the exemption if they were residents of Texas at the time they entered the service or if their place of entry into the service was Texas. Amendments to §21.2108 specify that institutions are to submit student-specific data for Hazlewood exemption recipients via the CBM 001 report, the state's enrollment report.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the amendments are in effect, the fiscal impact of these changes would be insignificant for the state. There will be no fiscal implications to local government as a result of enforcing or administering these changes in the rules. This determination is based on fiscal notes issued for S.B. 874 and H.B. 125 by the Legislative Budget Board.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect, the public benefits anticipated as a result of administering the sections will be improved access to the Hazlewood exemption by veterans due to clarification and simplification of the residency requirement while entering the service and the expansion of the exemption to include the children of totally disabled veterans, enabling or making it easier for these individuals to go to college. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

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

The amendments are proposed under the Texas Education Code, §54.203(i), which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §54.203.

The amendments affect Texas Education Code, §54.203.

§21.2100.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) Child [ Children ]-- A person who is a natural or adoptive child of an otherwise eligible veteran. [ Persons who were dependents of members of the armed forces of the United States at the time they were killed or died as a result of injuries directly associated with military service or dependents of members of the Texas National Guard and the Texas Air National Guard killed since January 1, 1946, while on active duty either in the service of Texas or the United States. ]

[ (5) Citizen of Texas--A resident of Texas as determined in accordance with Chapter 21, §§21.21 - 21.27 of this title (relating to Determining Residence Status) or an individual whose Place of Entry into the service, according to military documents, was Texas.]

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

(6) [ (7) ] Contact hours--A unit of measure that represents an hour of scheduled instruction given to students of which 50 minutes must be of direct instruction. Also referred to as clock hours.

(7) [ (8) ] Dependent--An individual who was claimed as a dependent for federal income tax purposes by the individual's parent or court-appointed legal guardian in a particular year and in the previous tax year. A veteran was a dependent if he or she was claimed as such by a parent or legal guardian during the veteran's year of entry into the service and in the previous tax year. [ A child was a dependent if he or she was claimed as a dependent for tax purposes at the time his or her parent or legal guardian died of injuries or illness directly related to military service. ]

(8) [ (9) ] Extraordinary costs--(for community/junior colleges only) tuition and fee costs that exceed the average tuition and fee charges at the institution.

(9) [ (10) ] Federal survivor benefits--Benefits offered the surviving children of deceased veterans through Title 38, United States Code, Chapter 35.

(10) [ (11) ] Hazlewood Act Exemption--The tuition and partial fee exemption authorized under Texas Education Code, §54.203.

(11) [ (12) ] Honorably discharged--Released from active duty military service with an Honorable Discharge, General Discharge under Honorable Conditions, or Honorable Separation or Release from Active Duty, as documented by the Certificate of Release or Discharge from Active Duty (DD214) issued by the Department of Defense.

(12) [ (13) ] Identification number--An individual's social security number.

(13) [ (14) ] Institution--A Texas public institution of higher education as defined in Texas Education Code, §61.003(8).

(14) [ (15) ] Property deposit fees--Fees that an institution may, under Texas Education Code, §54.502, elect to charge to insure that institution against losses, damages, and breakage in libraries and laboratories.

(15) [ (16) ] Registration, date of--The census date of the term for which the student is applying for the Hazlewood Act Exemption.

(16) [ (17) ] Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter X, §§21.727 - 21.736 [ §§21.21 - 21.27 ], of this title (relating to Determination of Resident Status and Waiver Programs for Certain Nonresident Persons [ Determining Residence Status ]).

(17) [ (18) ] Student service fees--Fees that an institution may, under Texas Education Code, §§54.503, 54.5061 and 54.513, elect to charge to students to cover the cost of student services.

(18) Surviving Children--Persons who were dependents of members of the armed forces of the United States at the time they were killed or died as a result of injuries directly associated with military service or dependents of members of the Texas National Guard and the Texas Air National Guard killed since January 1, 1946, while on active duty either in the service of Texas or the United States.

(19) - (20) (No change.)

§21.2101.Hazlewood Act Exemption.

(a) - (f) (No change.)

[ (g) The governing board of a community college may choose to deny a Hazlewood Act Exemption for a course fee or training fee charged the district to cover flight time costs associated with a course in aircraft flight training for individuals who do not have a private pilot rating or who have a private pilot rating but are not actively seeking to fulfill the requirements of the Federal Aviation Administration for an additional certification or rating. This provision does not apply for terms or semesters beginning in spring 2006 or later.]

(g) [ (h) ] Beginning with admissions for spring 2006, the governing board of a junior college district may establish a fee for extraordinary costs associated with a specific course or program.

(h) [ (i) ] In determining whether to admit a person to any certificate program or any baccalaureate, graduate, postgraduate, or professional degree program, an institution may not consider the fact that the person is eligible for an exemption through this chapter.

§21.2102.Eligible Veterans.

In order to be eligible to receive a Hazlewood Act Exemption, a veteran shall demonstrate that he or she:

(1) at the time he or she entered the service, [ was a citizen of the United States and ]

(A) (No change.)

(B) was a resident of Texas[ , as determined in accordance with §§21.21 - 21.27 of this title (relating to Determining Residence Status) ].

(2) (No change.)

(3) was honorably discharged from service [ has an honorable discharge from service, general discharge from service under honorable conditions or an honorable separation from service ];

(4) (No change.)

(5) is not in default on an education loan made or guaranteed [ by the federal government or ] by the State of Texas and is not in default on a federal loan if that default is the reason the student cannot use his or her federal veterans' benefits ;

(6) - (8) (No change.)

§21.2103.Eligible Children.

In order to be eligible to receive a Hazlewood Act Exemption, children shall demonstrate that they:

(1) are natural or adopted children of:

(A) members of the U.S. Armed Forces who were [ citizens of the United States and ] residents of Texas when they entered the service or whose place of entry for the service was Texas and who :

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

(iv) became totally disabled for purposes of employability according to the disability ratings of the Department of Veterans Affairs as a result of a service-related injury; or

(B) members of the Texas National Guard or Texas Air National Guard who:

(i) were killed since January 1, 1946 while on active duty either in the service of Texas or the United States; or

(ii) are totally disabled for purposes of employability according to the disability ratings of the Department of Veterans Affairs, regardless of whether the members are eligible to receive disability benefits from the department, as a result of a service-related injury suffered since January 1, 1946, while on active duty either in the service of this state or the United States.

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

§21.2105.Supporting Documentation for the Hazlewood Act Exemption Application.

(a) When applying for the first time for the Hazlewood Act Exemption, a veteran shall provide to the institution, along with the Hazlewood Act Exemption Application, the following supporting documentation:

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

(3) documentation of Texas residency at the time the veteran entered the service or that the person's place of entry into the service was Texas .

(b) When applying for the first time for the Hazlewood Act Exemption, a child shall provide to the institution, along with the Hazlewood Act Exemption Application, the following supporting documentation:

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

(4) documentation that the parent was a resident of Texas when he or she entered the service or that the parent's place of entry into the service was Texas.

§21.2108.Reporting.

(a) All institutions shall report by means of the Texas Higher Education Coordinating Board's CBM 001 report , for each eligible veteran and child who is exempted from the payment of tuition and mandatory and discretionary fees, other than property deposit and student service fees, the following information to the Board:

(1) - (4) (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 21, 2007.

TRD-200701961

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


19 TAC §21.2109, §21.2110

The Texas Higher Education Coordinating Board proposes new §21.2109 and §21.2110, concerning the Exemption Program for Veterans and Their Dependents (The Hazlewood Act).

Specifically, new §21.2109 reflects new provisions to the Hazlewood exemption for veterans and their dependents that were included in Senate Bill 874, passed by the 80th Texas Legislature. In particular, the new provisions authorize otherwise eligible veterans to assign any unused hours of eligibility for the Hazlewood exemption to a child. Each eligible veteran receives 150 semester credit hours of free tuition and reduced fees. Section 21.2109(a) indicates the veteran can assign unused hours to a child and indicates the process for doing so. Section 21.2109(b) reflects provisions in S.B. 874 that indicate the veteran may terminate his or her previous assignment of hours if the child previously selected to receive the hours fails to use them. In that case, the veteran can reassign the unused hours to a different child. Section 21.2109(c) describes the eligibility requirements for the child who can receive the hours. New §21.2110 reflects provisions in S.B. 874 that authorize hardship conditions under which a child who is older than 25 years of age may receive assigned hours.

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, the fiscal impact of these changes would be insignificant for the state. There will be no fiscal implications to local government as a result of enforcing or administering the new sections. This determination is based on fiscal notes issued for S.B. 874 by the Legislative Budget Board.

Ms. Hollis has also determined that for each year of the first five years the new sections are in effect, the public benefits anticipated as a result of administering the sections will be greater benefits for honorably discharged veterans who will have the option of using their exemptions themselves or signing the hours of eligibility to a child. 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, §54.203(i), which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §54.203.

The new sections affect Texas Education Code, §54.203.

§21.2109.Legacy--Assignation of Unused Hours.

(a) An otherwise eligible veteran who has not used all 150 hours of eligibility under this chapter may assign his or her right to any unused portion of the hours to one of the veteran's children.

(1) To assign hours to a child, the veteran must submit a completed Legacy Application to the Board. The form will include:

(A) the child's name;

(B) the child's identification number;

(C) the child's contact information (address and phone number); and

(D) the number of hours assigned to the child.

(2) The Legacy Application is to be accompanied by proof that the individual to whom the veteran is assigning hours meets program definitions for a child.

(3) Upon receipt of the Legacy application, the Board shall confirm the number of hours available for the child and send the child (with a copy going to the veteran) a letter of eligibility which the child is to submit to his/her institution.

(b) If the first child assigned the unused hours fails to use all of them, the veteran may submit a Legacy Cancellation and Reassignment Form to the Board, indicating the previous assignee is now denied access to any remaining hours and identifying another child as eligible for them.

(c) To be eligible to use assigned hours, a person must:

(1) be classified as a resident by his or her institution;

(2) make satisfactory academic progress towards a degree or certificate as determined by the institution at which the person is enrolled in accordance with the policy of the institution's financial aid department, except that the institution may not require the person to enroll in a minimum course load; and

(3) be 25 years of age or younger on the first day of the term for which the exemption is claimed, unless granted a hardship extension in keeping with §21.2110 of this title (relating to Hardship Extension of Legacy Eligibility).

§21.2110.Hardship Extension of Legacy Eligibility.

An otherwise eligible child who is greater than 25 years of age on the first day of the term for which the exemption is to be claimed may qualify for an exemption under this chapter if the person provides the institution proof that he or she was unable to use the exemption at an earlier age because he or she suffered from a severe illness or other debilitating condition.

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 21, 2007.

TRD-200701962

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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 §22.24

The Texas Higher Education Coordinating Board proposes amendments to §22.24, concerning the Provisions for the Tuition Equalization Grant Program.

Specifically, the amendments to §22.24 will bring rules into agreement with new language passed by the 80th Legislature as Senate Bill 1699. The amendments indicate that, at the end of a student's first year in the Tuition Equalization Grant (TEG) Program, he or she is to meet the academic progress requirements of his or her school in order to qualify for a TEG in the following year. Thereafter, the student must complete 24 hours per year (18 hours for graduate students) with at least a 2.5 grade point average.

Ms. Lois Hollis, Assistant Commissioner for Student Services, in keeping with the Legislative Budget Board's fiscal note for Senate Bill 201, has determined that for each year of the first five years the amendments are in effect, there will be no significant fiscal implications to state or local government as a result of enforcing or administering the 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 section will be that students will more successfully continue in the program, thus improving retention and, eventually, graduation rates. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

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

The amendments are proposed under the Texas Education Code, §61.229, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Subchapter F.

The amendments affect Texas Education Code, §§61.221 - 61.230.

§22.24.Eligible Students.

To receive an award through the TEG Program, a student must:

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

(3) maintain satisfactory academic progress in his or her program of study which requires:

(A) (No change.)

(B) if the person was awarded his or her initial TEG award on or after September 1, 2005:

(i) as of the end of the first year in the TEG program, meet the academic progress requirements as set by the institution;

(ii) as of the end of the second or later years in the program:

(I) [ (i) ] completion of at least 24 semester credit hours in the person's most recent academic year in an undergraduate degree or certificate program; or completion of at least 18 semester credit hours in the person's most recent academic year in a graduate or professional degree program (unless fewer hours are required for the completion of the degree), and

(II) [ (ii) ] establishment and maintenance of an overall grade point average of at least 2.5 on a four-point scale or the equivalent on coursework previously attempted at public or private institutions.

(C) (No change.)

(4) - (7) (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 21, 2007.

TRD-200701963

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Subchapter I. PROVISIONS FOR THE FIFTH-YEAR ACCOUNTING STUDENT SCHOLARSHIP PROGRAM

19 TAC §22.165

The Texas Higher Education Coordinating Board proposes amendments to §22.165 concerning Provisions for the Fifth-Year Accounting Student Scholarship Program. Specifically, the amendments indicate that the maximum award amount will be set each year by the program's advisory committee and that the amount will be announced to the institutions when fund allocations are announced. This will enable the committee to adjust award maximum amounts as appropriate for the funds available for awarding. This is in keeping with the Texas Education Code, §61.757(c), which states: "In addition to any other duties assigned by the board, the advisory committee specifically shall advise the board on . . . the amount of money needed to adequately fund the scholarships and the maximum amount that may be awarded in any given year to an individual student."

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 be no fiscal implications to state or local government as a result of enforcing or administering these changes in the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect, the public benefit anticipated as a result of administering the sections will be award amounts that more accurately reflect available funding. 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 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, §61.753 and §61.755, which authorizes the Coordinating Board to establish and administer scholarships for fifth-year accounting students.

The amendments affect Texas Education Code, §§61.751 - 61.760.

§22.165.Award Amounts and Uses.

(a) (No change.)

(b) Award Amount and Disbursements.

(1) The maximum annual award for a student through this program is an amount set by the advisory committee and announced to institutions in the allocation announcement sent out for the relevant year, [ $3,000 ] less any amount received through this program in the past.

(2) No individual may receive an aggregate total of more than the amount set by the advisory committee and announced to institutions in the allocation announcement [ $3,000 ] through the program.

(3) (No change.)

(c) - (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 21, 2007.

TRD-200701964

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Subchapter P. EXEMPTION PROGRAM FOR CLINICAL PRECEPTORS AND THEIR CHILDREN

19 TAC §22.305, §22.306

The Texas Higher Education Coordinating Board proposes amendments to §22.305 and §22.306 concerning the Exemption Program for Clinical Preceptors and their Children. Specifically, the amendments to §22.305 clarify that in a given term the preceptor, in order to receive an exemption, must serve at a minimum an average of one day per week for the time period the program conducts clinicals. In addition, the amendments reflect changes to the authorizing legislation as a result of the passage of Senate Bill 201 by the 80th Texas Legislature, which extended the preceptor's eligibility to use an exemption to any term that begins within one year of the end of the term in which the person served as a preceptor. Previously, the program required the employment and use of the exemption to be simultaneous. The amendments to §22.306 simplify the description of the enabling parent by referencing §22.305 (relating to Eligible Preceptors), in which the parent's requirements are outlined. In addition, in keeping with Senate Bill 201, the section now clarifies that a child and the preceptor parent may both receive exemptions based on the same semester or term of service.

Ms. Lois Hollis, Assistant Commissioner for Student Services, in keeping with the Legislative Budget Board's fiscal note for Senate Bill 201, has determined that for each year of the first five years the amendments are in effect, there will be no significant fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of administering the sections will be that the exemption will encourage students to continue their work as preceptors, thus enabling more nursing students to receive additional clinical instruction. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

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

The amendments are proposed under the Texas Education Code, §54.222(g), which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §54.222.

The amendments affect Texas Education Code, §54.222.

§22.305.Eligible Preceptors.

To receive an exemption under this program, a preceptor must:

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

(3) serve, on an average, at least one day per week [ be serving ] under a written preceptor agreement with an undergraduate professional nursing program as a clinical preceptor for students enrolled in the program for ;

(A) the time period the program conducts clinicals during the semester or other academic term for which the exemption is sought; or

(B) the time period the program conducts clinicals during a semester or other academic term that ended less than one year prior to the beginning of the semester or term in which the exemption is to be used.

§22.306.Eligible Children.

To receive an exemption under this program, a child must:

(1) (No change.)

(2) be the child of a clinical preceptor as described in §22.305 of this title (relating to Eligible Preceptors) whether or not the preceptor is receiving or has received an exemption based on the same period of service [ who is serving under a written preceptor agreement with an undergraduate professional nursing program as a clinical preceptor for students enrolled in the program for the semester or other academic term for which the exemption is sought ] ; 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 May 21, 2007.

TRD-200701965

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: July 19, 2007

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


Part 2. TEXAS EDUCATION AGENCY

Chapter 97. PLANNING AND ACCOUNTABILITY

Subchapter AA. ACCOUNTABILITY AND PERFORMANCE MONITORING

The Texas Education Agency (TEA) proposes amendment to §97.1001 and repeal of §97.1002, concerning accountability. The proposed amendment to §97.1001 would adopt applicable excerpts of the 2007 Accountability Manual, dated May 2007. The proposed repeal of §97.1002 would repeal the separate rule relating to identification of technical assistance team campuses since this provision is addressed in the 2007 Accountability Manual.

Legal counsel with the TEA has recommended that the procedures for issuing accountability ratings for public school districts and campuses be adopted as part of the Texas Administrative Code. This decision was made in 2000 given a court decision challenging state agency decision making via administrative letter/publications. Given the statewide application of the accountability rating process and the existence of sufficient statutory authority for the commissioner of education to formally adopt rules in this area, portions of each annual accountability manual have been adopted since 2000. The accountability system evolves from year to year so the criteria and standards for rating and acknowledging schools in the most current year differ to some degree over those applied in the prior year. The intention is to annually update 19 TAC §97.1001 to refer to the most recently published accountability manual.

The proposed amendment to 19 TAC §97.1001 would adopt excerpts of the 2007 Accountability Manual, dated May 2007, into rule as a figure. The excerpts, Chapters 2 - 6, 8, 10 - 12, and 14 - 16 of the 2007 Accountability Manual, specify the indicators, standards, and procedures used by the commissioner of education to determine accountability ratings, both standard and alternative education accountability (AEA), for districts, campuses, and charter schools. These chapters also specify indicators, standards, and procedures used to determine Gold Performance Acknowledgment (GPA) on additional indicators for Texas public school districts and campuses. The TEA will issue accountability ratings under the procedures specified in the 2007 Accountability Manual in August 2007. Ratings may be revised as a result of investigative activities by the commissioner as authorized under TEC, §39.074 and §39.075.

In 2007, campuses and districts will be evaluated using four base indicators: Texas Assessment of Knowledge and Skills (TAKS) results, completion rates, annual dropout rates, and student performance on the State Developed Alternative Assessment (SDAA) II. In 2007, the GPA system will award acknowledgment on 14 separate indicators to districts and campuses rated Academically Acceptable or higher: Attendance Rate for Grades 1-12; Advanced Course/Dual Enrollment Completion; Advanced Placement/International Baccalaureate Results; College Admissions Test Results; Commended Performance on Reading/English Language Arts (ELA), Mathematics, Writing, Science and/or Social Studies; Recommended High School Program/Distinguished Achievement Program Participation; Comparable Improvement on Reading/ELA and/or Mathematics; and Texas Success Initiative-Higher Education Readiness Component on ELA and/or Mathematics.

The proposed repeal of 19 TAC §97.1002 is necessary since language from the current 19 TAC §97.1002 is included in the 2007 Accountability Manual ; therefore, the separate rule is no longer needed.

Criss Cloudt, associate commissioner for assessment, accountability, and data quality, has determined that, for the first five-year period the proposed amendment and repeal are in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the proposed amendment and repeal.

Dr. Cloudt has determined that, for each year of the first five years the proposed amendment and repeal are in effect, the public benefit anticipated as a result of enforcing the proposed amendment and repeal will be to continue to inform the public of the existence of annual manuals specifying rating procedures for the public schools by including the rule in the Texas Administrative Code . There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed amendment and repeal.

The public comment period on the proposal begins June 1, 2007, and ends July 1, 2007. Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028. All requests for a public hearing on the proposed amendment and repeal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of the proposal has been published in the Texas Register.

19 TAC §97.1001

(Editor's note: In accordance with Government Code, §2002.014, which permits the omission of material which is "cumbersome, expensive, or otherwise inexpedient," the figure in 19 TAC §97.1001 is not included in the print version of the Texas Register. The Figure is available in the on-line edition of the June 1, 2007, issue of the Texas Register.)

The amendment is proposed under the Texas Education Code, §§39.051(c) - (d), 39.072(c), 39.0721, 39.073, and 29.081(e), which authorize the commissioner of education to specify the indicators, standards, and procedures used to determine standard accountability ratings and alternative education accountability ratings, and to determine acknowledgment on additional indicators. Texas Education Code, §39.1322, requires the commissioner of education to select and assign a technical assistance team to assist a campus in executing a school improvement plan, and any other school improvement strategies the commissioner determines appropriate, for a campus that is rated academically acceptable for the current school year but would be rated as academically unacceptable if performance standards to be used for the following school year were applied to the current school year.

The amendment implements the Texas Education Code, §§39.051(c) - (d), 39.072(c), 39.0721, 39.073, 39.1322, and 29.081(e).

§97.1001.Accountability Rating System.

(a) (No change.)

(b) The standard and alternative procedures by which districts, campuses, and charter schools are rated and acknowledged for 2007 [ 2006 ] are based upon specific criteria and calculations, which are described in excerpted sections of the 2007 [2006] Accountability Manual , dated May 2007 [ May 2006 ], provided in this subsection.

Figure: 19 TAC §97.1001(b) (.pdf)

[ Figure: 19 TAC §97.1001(b) ]

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

(e) The specific criteria and calculations used in the annual accountability manual adopted for school years prior to 2007-2008 [ 2006-2007 ] remain in effect for all purposes, including accountability, data standards, and audits, with respect to those school years.

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

Filed with the Office of the Secretary of State on May 18, 2007.

TRD-200701944

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 1, 2007

For further information, please call: (512) 475-1497


19 TAC §97.1002

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

The repeal is proposed under the Texas Education Code, §§39.051(c) - (d), 39.072(c), 39.0721, 39.073, and 29.081(e), which authorize the commissioner of education to specify the indicators, standards, and procedures used to determine standard accountability ratings and alternative education accountability ratings, and to determine acknowledgment on additional indicators. Texas Education Code, §39.1322, requires the commissioner of education to select and assign a technical assistance team to assist a campus in executing a school improvement plan, and any other school improvement strategies the commissioner determines appropriate, for a campus that is rated academically acceptable for the current school year but would be rated as academically unacceptable if performance standards to be used for the following school year were applied to the current school year.

The proposed repeal implements the Texas Education Code, §§39.051(c) - (d), 39.072(c), 39.0721, 39.073, 39.1322, and 29.081(e).

§97.1002.Identification of Technical Assistance Team Campuses.

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 18, 2007.

TRD-200701945

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 1, 2007

For further information, please call: (512) 475-1497


Subchapter CC. COMMISSIONER'S RULES CONCERNING THE ANNUAL EVALUATION OF DISCIPLINARY ALTERNATIVE EDUCATION PROGRAMS

19 TAC §97.1021

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

The Texas Education Agency (TEA) proposes the repeal of §97.1021, concerning disciplinary alternative education programs. The proposed repeal would remove from rule specifications relating to evaluation of the performance of disciplinary alternative education programs. This repeal is proposed in order to comply with legislative changes relating to limitation on compliance monitoring in accordance with House Bill (HB) 3459, 78th Texas Legislature, 2003.

Effective February 14, 2001, the commissioner of education adopted 19 TAC §97.1021, exercising rulemaking authority over developing a process for evaluating a school district disciplinary alternative education program in accordance with Texas Education Code, §37.008(m). The rule addresses the definition of the program and describes an annual evaluation by the TEA of each district's program, including performance data and specific indicators to be evaluated.

In 2003, the 78th Texas Legislature enacted HB 3459, adding TEC, §7.027 (renumbered to §7.028 in subsequent legislative session), which limits compliance monitoring by the state. TEC, §7.028, gives the board of trustees of a school district or the governing body of an open-enrollment charter school the primary responsibility for ensuring that the district or school complies with all applicable requirements of state educational programs. As a consequence of TEC, §7.028, activities relating to provisions under TEC, §37.008(m), including rulemaking requirements, were suspended.

In addition to TEC, §7.028, TEC, §37.008(m-1), was added and directs the commissioner to identify districts that indicate high risk of data and compliance violations. As a result of these two legislative requirements, the TEA developed a new agency-wide Performance-Based Monitoring (PBM) system. This new monitoring system replaced the former process outlined in the rule being repealed and includes a data validation component.

The proposed repeal of 19 TAC Chapter 97, Subchapter CC, §97.1021, would implement these legislative changes.

Adrain Johnson, associate commissioner for school district services, has determined that, for the first five-year period the proposed repeal is in effect, there will be no fiscal implications for state or local government as a result of enforcing or administering the repeal.

Dr. Johnson has determined that, for each year of the first five years the proposed repeal is in effect, the public benefit anticipated as a result of enforcing the repeal will be alignment of rules with current statute. There will be no effect on small businesses. There is no anticipated economic cost to persons who are required to comply with the proposed repeal.

The public comment period on the proposal begins June 1, 2007, and ends July 1, 2007. Comments on the proposal may be submitted to Cristina De La Fuente-Valadez, Policy Coordination Division, Texas Education Agency, 1701 North Congress Avenue, Austin, Texas 78701, (512) 475-1497. Comments may also be submitted electronically to rules@tea.state.tx.us or faxed to (512) 463-0028. All requests for a public hearing on the proposed repeal submitted under the Administrative Procedure Act must be received by the commissioner of education not more than 15 calendar days after notice of the proposal has been published in the Texas Register .

The repeal is proposed under the Texas Education Code (TEC), §7.028, which establishes a limitation on compliance monitoring (including suspension of rulemaking requirements under TEC, §37.008(m)) and TEC, §37.008(m-1), which directs the commissioner to identify districts that indicate a high risk of data and compliance violations. As a result of TEC, §7.028 and §37.008(m-1), the TEA developed a new agency-wide Performance-Based Monitoring system that includes a data validation component.

The repeal implements the TEC, §7.028 and §37.008(m-1).

§97.1021.Annual Evaluation of Disciplinary Alternative Education Programs.

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 18, 2007.

TRD-200701946

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 1, 2007

For further information, please call: (512) 475-1497