Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

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

19 TAC §§22.228 - 22.230, 22.234

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§22.228, 22.229, 22.230, and 22.234 concerning the Toward EXcellence, Access and Success (TEXAS) Grant Program. Specifically, the proposed amendment to §22.228(a)(6)(A) reflects changes from SB 1699, passed by the 80th Texas Legislature, which requires the superintendent of a district to certify for the Coordinating Board if a high school in his or her school district does not offer the Recommended Curriculum. Prior language required the district to notify the Texas Education Agency, which would then have to notify the Coordinating Board. The proposed amendment to §22.228(a)(6)(C) removes outdated language regarding the date a student must have received an associate's degree to qualify for a grant. Proposed amendments to §22.229(a) clarify that all initial award recipients are subject to the same academic progress requirements. There has been some confusion about whether an associate degree holder who enters the TEXAS Grant program as an initial award recipient should meet initial award academic progress requirements or continuation award requirements. Changes to §22.229(b)(1) clarifies that continuation award recipients who were awarded their initial TEXAS Grant awards prior to September 1, 2005, must complete 75 percent of their attempted hours and maintain an overall grade point average of 2.5 or more in order to receive awards in subsequent years. Proposed changes to §22.229(b)(2) indicate that continuation award recipients who were awarded their initial TEXAS Grants awards on or after September 1, 2005, must complete 75 percent of their attempted hours, complete at least 24 hours per year, and maintain an overall grade point average of 2.5 or more in order to receive awards in subsequent years. Proposed amendments to §22.230(f) and new subsection 22.230(g) are based on new provisions included in SB 1699, passed by the 80th Texas Legislature. In particular, changes to subsection (f) eliminate old language dealing with eligibility restrictions for individuals convicted of a felony or crime involving a controlled substance. Proposed new subsection (g) reflects new language from SB 1699 and indicates an individual may not receive a TEXAS Grant if he or she has been convicted of a felony unless he or she has received a certificate of discharge from the Texas Department of Criminal Justice or a correctional facility and two years have passed or the individual has been pardoned. In addition, if an individual has been convicted of any offense under a federal or state law involving the possession or sale of a controlled substance during a period of enrollment while receiving a TEXAS Grant, he or she may not again receive a TEXAS Grant until he or she has met the same requirements as are currently in place for federal financial aid. Current subsection 22.230(g) has been re-lettered as subsection (h). Proposed amendments to §22.234(b)(3) are made to eliminate language that was relevant in FY 2006 as the program transitioned to current statutes that indicate awards going to students attending private or independent institutions cannot exceed the maximum award authorized through the Tuition Equalization Grant Program. In FY 2006, this provision was only applied to students awarded grants on or after June 18, 2005. The provision now applies to all private or independent school recipients of TEXAS Grants. The addition of proposed subsection (c) to §22.234 is based on new provisions included in SB 1699, passed by the 80th Texas Legislature. In particular, new statutory language authorizes the awarding of TEXAS Technology Grants if enough money has been appropriated for the TEXAS Grant program to make awards to all students who meet the program's requirements or if funds are appropriated specifically for this purpose. The Technology Grants are targeted towards students in undergraduate engineering or computer science programs. The Coordinating Board is to determine the award amounts, subject to a maximum of twice the regular TEXAS Grant award. Award amounts may be varied for students based on the amount of coursework completed by the students. If TEXAS Technology Grant funds are limited, the Coordinating Board may indicate priority is to be given to the neediest students. This proposed section is to expire on September 1, 2013. Subsections (c) and (d) are re-lettered as (d) and (e).

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that, for each year of the first five years the proposed amendments are in effect, there will be no fiscal implications on local government as a result of enforcing or administering these changes in the rules. There will be a fiscal impact to the state if it decides to provide additional General Revenue funding for the TEXAS Technology Grant Program.

Ms. Hollis has also determined that, for each year of the first five years the proposed amendments are in effect, the public benefits anticipated as a result of administering the sections will be an easier understanding of program requirements due to the elimination of outdated language and an increase in the number of students graduating with degrees in engineering and computer science (if funding is made available for the Technology Grants). There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

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

The amendment is proposed under the Texas Education Code, §56.303, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §§56.301 - 56.311.

The proposed amendments affect Texas Education Code, §§56.301 - 56.311.

§22.228.Eligible Students.

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

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

(6) have completed the Recommended or Advanced High School Program, or if a graduate of a private high school, its equivalent, unless the student:

(A) graduated from a public high school that has been certified no later than March 1 of the school year in which the person is to graduate by the superintendent of its district not to offer all the courses necessary to complete all parts of the Recommended or Advanced High School Program, and the student has completed all courses that the high school offered toward the completion of such a curriculum; or

(B) (No change.)

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

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

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

§22.229.Satisfactory Academic Progress.

(a) As of the end of the first academic year in which a person receives an initial award , each recipient of the TEXAS Grant shall meet the academic progress requirements as indicated by the financial aid office of his or her institution.

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

(b) At the end of the year in which a person receives a continuation award [ the second and subsequent years ]:

(1) a recipient who [ received a TEXAS grant prior to fall 2005 or ] was awarded an initial year TEXAS grant [ for the 2005-2006 academic year ] prior to September 1, 2005, shall:

(A) [ (1) ] complete at least 75 percent of the hours attempted in his or her most recent academic year, as determined by institutional policies; and

(B) [ (2) ] maintain an overall grade point average of at least 2.5 on a four point scale or its equivalent, for all coursework attempted at public or private or independent institutions of higher education.

(2) [ (c) ] A recipient who was awarded an initial year award through the TEXAS Grant Program [ for the 2005-2006 academic year ] on or after September 1, 2005 shall, as of the end of the second and subsequent years:

(A) [ (1) ] complete at least 75 percent of the hours attempted in his or her most recent academic year, as determined by institutional policies;

(B) [ (2) ] complete at least 24 semester credit hours in his or her most recent academic year; and,

(C) [ (3) ] maintain an overall grade point average of at least 2.5 on a four point scale or its equivalent, for all coursework attempted at an institution or private or independent institution.

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

§22.230.Discontinuation of Eligibility or Non-Eligibility.

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

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

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

(g) A person who is convicted of any offense under a federal or state law, including the law of another state, involving the possession or sale of a controlled substance, as defined by Chapter 481, Health and Safety Code, for conduct that occurred during a period of enrollment in which the person is receiving a TEXAS Grant:

(1) is ineligible to receive a TEXAS Grant for the same period for which 20 U.S.C. §1091(r) provides for ineligibility to receive a federal grant, loan, or work assistance had the conduct occurred during a period of enrollment in which their person was receiving a federal grant, loan, or work assistance; and

(2) may become eligible to receive a TEXAS Grant before the end of the ineligibility period provided by paragraph (1) in the same manner as provided by 20 U.S.C. §1091(r) for a person to resume eligibility for a federal grant, loan, or work assistance.

(h) [ (g) ] Other than as described in §22.231 of this title (relating to Hardship Provisions), if a person fails to meet any of the requirements for receiving a continuation award as outlined in subsection (b) of this section after completion of any year, the person may not receive a TEXAS Grant until he or she completes courses while not receiving a TEXAS Grant and meets all the requirements of subsection (b) of this section as of the end of that period of enrollment.

§22.234.Award Amounts and Adjustments.

(a) (No change.)

(b) Award Amounts.

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

(3) For students enrolled in eligible private or independent institutions,

[ (A) if the student's award was made prior to June 18, 2005, the amount of the TEXAS Grant, when combined with the amount received through the Tuition Equalization Grant Program (Texas Education Code, §61.221) may not exceed the student's need or the total amount of tuition and required fees charged to the student for the academic periods for which one or more of the grants were awarded;]

(A) [ (B) ] The [ if the student's award was made on June 18, 2005, or thereafter, the ] amount of the TEXAS Grant may not exceed the maximum award possible through the Tuition Equalization Grant Program (Texas Education Code, §61.221).

(B) [ (C) ] No student [ attending a private or independent institution who is awarded a TEXAS Grant on or after September 1, 2005, ] may receive both a TEXAS Grant and a Tuition Equalization Grant in the same term or semester.

(4) - (7) (No change.)

(c) TEXAS Technology Grants. If the money appropriated for TEXAS Grants for an award period exceeds the amount necessary to award a TEXAS Grant to each eligible applicant in the applicable amount determined under §21.234(3) of this section, if funds are specifically appropriated for this purpose, or if other funds are made available, the Board may use the funds to award a TEXAS Technology Grant.

(1) To qualify for a TEXAS Technology Grant, the student must:

(A) be enrolled in an undergraduate engineering or computer science program;

(B) have completed at least 60 semester credit hours toward a baccalaureate degree in engineering or computer science;

(C) meet all eligibility requirements under §21.228 of this title (relating to Eligible Students); and

(D) may not simultaneously receive a TEXAS Grant.

(2) The amount of a TEXAS Technology Grant, specified by the Board:

(A) may not exceed two times the amount of a TEXAS Grant;

(B) may differ based on the amount of coursework a student has completed towards earning a degree in engineering or computer science.

(3) If funding for TEXAS Technology Grants is insufficient to make awards to all eligible applicants, the board may indicate priority is to be given to students with the greatest need.

(4) This section expires September 1, 2013.

(d) [ (c) ] Uses. A person receiving a TEXAS Grant or a TEXAS Technology Grant may only use the money to pay any usual and customary cost of attendance at an institution of higher education incurred by the student.

(e) [ (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.

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 24, 2007.

TRD-200702024

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 97. PLANNING AND ACCOUNTABILITY

Subchapter AA. ACCOUNTABILITY AND PERFORMANCE MONITORING

19 TAC §97.1004

(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 §97.1004 is not included in the print version of the Texas Register. The figure is available in the on-line version of the June 8, 2007, issue of the Texas Register.)

The Texas Education Agency (TEA) proposes an amendment to §97.1004, concerning adequate yearly progress (AYP). The section establishes provisions related to AYP and sets forth the process for evaluating campus and district AYP status. The section also adopts the most recently published AYP guide. The proposed amendment would adopt applicable excerpts, Sections II-V, of the 2007 Adequate Yearly Progress Guide , dated June 2007.

Under the accountability provisions in the federal No Child Left Behind (NCLB) Act, all public school campuses, school districts, and the state are evaluated for AYP. Districts, campuses, and the state are required to meet AYP criteria on three measures: reading/English language arts, mathematics, and either graduation rate (for high schools and districts) or attendance rate (for elementary and middle/junior high schools). If a campus, district, or state receiving Title I, Part A funds fails to meet AYP for two consecutive years, that campus, district, or state is subject to certain requirements such as offering supplemental educational services, offering school choice, or taking corrective actions. To implement these requirements, the agency developed the AYP guide.

Agency legal counsel has determined that the commissioner of education should take formal rulemaking action to place into the Texas Administrative Code procedures related to AYP. Through 19 TAC §97.1004, adopted effective July 14, 2005, the commissioner exercised rulemaking authority to establish provisions related to AYP and set forth the process for evaluating campus and district AYP status. Portions of each AYP guide have been adopted beginning with the 2004 AYP Guide, and the intent is to annually update 19 TAC §97.1004 to refer to the most recently published AYP guide.

The proposed amendment to 19 TAC §97.1004 would update the rule to adopt applicable excerpts, Sections II-V, of the 2007 Adequate Yearly Progress Guide, dated June 2007. These excerpted sections describe specific features of the system, AYP measures and standards, and appeals. In 2007, the U.S. Department of Education (USDE) approved changes to specific components of the AYP system, including the areas addressed in the applicable excerpts of the 2007 AYP Guide. Examples of approved changes include expiration of the May 23, 2006, flexibility agreement regarding evaluation and reporting of information about students displaced by Hurricanes Katrina and Rita; USDE's response to Texas' compliance with the Elementary and Secondary Education Act/NCLB Standards and Assessments Peer Review process; and final regulations regarding the inclusion of limited English proficient students in determining AYP.

In addition, subsection (d) would be modified to specify that the AYP guide adopted for the school years prior to 2007-2008 will remain in effect with respect to those school years.

Criss Cloudt, Associate Commissioner for Assessment, Accountability, and Data Quality, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for state and local government as a result of enforcing or administering the amendment.

Dr. Cloudt has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be to continue to inform the public of the AYP rating procedures for the public schools. 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.

The public comment period on the proposal begins June 8, 2007, and ends July 8, 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 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 amendment is proposed under the Texas Education Code (TEC), §7.055(b)(32), which authorizes the commissioner to perform duties in connection with the public school accountability system as prescribed by TEC, Chapter 39; TEC, §39.073, which authorizes the commissioner to determine how all indicators adopted under TEC, §39.051(b), may be used to determine accountability ratings; and TEC, §39.075(a)(4), which authorizes the commissioner to conduct special accreditation investigations in response to state and federal program requirements.

The amendment implements the TEC, §§7.055(b)(32), 39.073, and 39.075(a)(4).

§97.1004.Adequate Yearly Progress.

(a) In accordance with the federal No Child Left Behind Act and Texas Education Code, §§7.055(b)(32), 39.073, and 39.075, all public school campuses, school districts, and the state are evaluated for Adequate Yearly Progress (AYP). Districts, campuses, and the state are required to meet AYP criteria on three measures: reading/English language arts, mathematics, and either graduation rate (for high schools and districts) or attendance rate (for elementary and middle/junior high schools). The performance of a school district, campus, or the state is reported through indicators of AYP status established by the commissioner of education.

(b) The determination of AYP for school districts and charter schools in 2007 [ 2006 ] is based on specific criteria and calculations, which are described in excerpted sections of the 2007 [ 2006 ] AYP Guide provided in this subsection.

Figure: 19 TAC §97.1004(b) (.pdf)

[ Figure: 19 TAC §97.1004(b) ]

(c) The specific criteria and calculations used in AYP are established annually by the commissioner of education and communicated to all school districts and charter schools.

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

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 25, 2007.

TRD-200702073

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 8, 2007

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

19 TAC §97.1005

(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 §97.1005 is not included in the print version of the Texas Register. The figure is available in the on-line version of the June 8, 2007, issue of the Texas Register.)

The Texas Education Agency (TEA) proposes an amendment to §97.1005, concerning accountability and performance monitoring. The section describes the purpose of the Performance-Based Monitoring Analysis System (PBMAS) and manner in which school districts and charter school performance is reported. The section also adopts the most recently published PBMAS Manual. The proposed amendment would adopt applicable excerpts of the Performance-Based Monitoring Analysis System 2007 Manual, dated June 2007. Earlier versions of the manual will remain in effect with respect to the school years for which they were developed.

House Bill 3459, 78th Texas Legislature, 2003, added the Texas Education Code (TEC), §7.027, limiting and redirecting monitoring done by the TEA to that required to ensure school district and charter school compliance with federal law and regulations; financial accountability, including compliance with grant requirements; and data integrity for purposes of the Public Education Information Management System (PEIMS) and accountability under TEC, Chapter 39. Legislation passed in 2005 renumbered TEC, §7.027, to TEC, §7.028. To meet this monitoring requirement, the agency developed the PBMAS, which is used in conjunction with other evaluation systems, to monitor performance and program effectiveness of special programs in school districts and charter schools.

Agency legal counsel has determined that the commissioner of education should take formal rulemaking action to place into the Texas Administrative Code procedures related to the PBMAS. Given the statewide application of the PBMAS and the existence of sufficient statutory authority for the commissioner of education to formally adopt rules in this area, portions of each annual PBMAS Manual have been adopted since the first PBMAS Manual was developed in 2004-2005. The PBMAS evolves from year to year, and the intent is to annually update 19 TAC §97.1005 to refer to the most recently published PBMAS Manual.

The proposed amendment to 19 TAC §97.1005 would update the current rule by adopting excerpted sections of the PBMAS 2007 Manual, dated June 2007. These excerpted sections describe the specific criteria and calculations that will be used to assign 2007 PBMAS performance levels. The 2007 PBMAS includes several key changes from the 2006 system. A new graduation rate indicator is previewed in each of the four program areas. Performance levels will be assigned for the four Recommended High School Program / Distinguished Achievement Program indicators that have been Report Only for the last three years. The Career and Technology Education program area has been renamed Career and Technical Education (CTE). In addition, the Nontraditional Course indicators in the CTE program area are reported using a new list of nontraditional courses. The Highly Qualified Teachers indicator has been deleted from the No Child Left Behind program area. The required improvement component has been expanded to many more indicators, and science has been added as a subject area for which professional judgment special analysis is available on certain indicators. The Texas Assessment of Knowledge and Skills-Alternate (TAKS-Alt) has been added to the PBMAS participation indicators. Two indicators in the special education program area that evaluate placements in less restrictive environments (LRE) have changed. A performance level will be assigned to the 3-5 LRE indicator, and the age range for the 3-11 LRE indicator has changed to 6-11. Additional numerator controls have been added to the special education identification and representation indicators, and some of the performance level cut points for the representation indicators have been adjusted. The special education Statewide Assessment Exemption indicator has been suspended for 2007 and will be revised in 2008 to reflect new assessments for students with disabilities. Finally, additional specificity has been added to the 2007 PBMAS performance levels to designate required improvement and professional judgment special analysis. Changes to the PBMAS indicators for 2007 are marked in the manual as "New!" for easy reference.

The proposed amendment would also amend language in subsection (a) to update the name of the career and technical education program. In addition, subsection (d) would be modified to specify that the PBMAS manual adopted for the school years prior to 2007-2008 will remain in effect with respect to those school years.

Criss Cloudt, Associate Commissioner for Assessment, Accountability, and Data Quality, has determined that for the first five-year period the amendment is in effect there will be no fiscal implications for state and local government as a result of enforcing or administering the amendment.

Dr. Cloudt has determined that for each year of the first five years the amendment is in effect the public benefit anticipated as a result of enforcing the amendment will be to continue to inform the public of the existence of annual manuals specifying PBMAS procedures by including this 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.

The public comment period on the proposal begins June 8, 2007, and ends July 8, 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 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 amendment is proposed under the Texas Education Code, §7.028, which authorizes the agency to monitor as necessary to ensure school district and charter school compliance with state and federal law and regulations.

The amendment implements the Texas Education Code, §7.028.

§97.1005.Performance-Based Monitoring Analysis System.

(a) In accordance with Texas Education Code, §7.028(a), the purpose of the Performance-Based Monitoring Analysis System (PBMAS) is to report annually on the performance of school districts and charter schools in selected program areas: bilingual education/English as a Second Language, career and technical [ technology ] education, special education, and certain Title programs under the federal No Child Left Behind Act. The performance of a school district or charter school is reported through indicators of student performance and program effectiveness and corresponding performance levels established by the commissioner of education.

(b) The assignment of performance levels for school districts and charter schools in the 2007 [ 2006 ] PBMAS is based on specific criteria and calculations, which are described in excerpted sections of the PBMAS 2007 [ 2006 ] Manual provided in this subsection.

Figure: 19 TAC §97.1005(b) (.pdf)

[ Figure: 19 TAC §97.1005(b) ]

(c) The specific criteria and calculations used in the PBMAS are established annually by the commissioner of education and communicated to all school districts and charter schools.

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

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 25, 2007.

TRD-200702074

Cristina De La Fuente-Valadez

Director, Policy Coordination

Texas Education Agency

Earliest possible date of adoption: July 8, 2007

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