TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 7. PREPAID HIGHER EDUCATION TUITION PROGRAM

SUBCHAPTER I. REFUNDS, TERMINATION

34 TAC §7.81

The Comptroller of Public Accounts proposes an amendment to §7.81, concerning refunds. This section establishes the criteria that determine how refunds will be calculated when a contract of the Prepaid Higher Education Tuition Program (Program) is cancelled or terminated. This Program is also known as the Texas Tomorrow Fund I and the Texas Guaranteed Tuition Plan and was the Board's first prepaid tuition plan established in 1995. It is governed by the Texas Prepaid Higher Education Tuition Board (Board).

Texas Education Code, §54.632(c) gives the Board the authority to determine how refunds will be calculated when a Program contract is cancelled. The Board has determined that the fund will benefit from a change to the current refund policy as proposed in this amendment. The current refund policy is varied based upon the circumstances underlying a cancellation, i.e., the timing of the cancellation, whether it is voluntary, and the age of the beneficiary, and it allows refunds to include earnings based on the weighted average tuition and required fee rate paid to public or private universities or colleges in effect on the effective date of the refund. The proposed amendment will change the current rule to limit refunds to the amount of money paid for those hours under the contract, less fees, and less any funds paid under the contract. It will also exempt those contracts cancelled due to the death of the purchaser or beneficiary or the graduation of the beneficiary from an eligible educational institution from being assessed a cancellation fee.

The Board believes it is in the best interest of the fund to revise this refund policy in order to extend the financial viability of this Program while providing for a reasonable methodology for refunds. The Program is financially infeasible as actuarial projections reflect a deficiency in future assets needed to pay future liabilities. Because this Program is a guaranteed tuition plan, once these funds are exhausted, the state must compensate out of general revenue for any shortfall under the existing contracts. Through a more financially sound refund policy based on the Board's actuarial analysis, the proposed rule may prolong the inevitable draw on the state's general revenue. The proposed amendment will not affect the disbursement to the schools.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rule will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rule is in effect, the proposed amendment would benefit the public by setting forth the criteria that determine how refunds will be calculated. The proposed amendment would have no fiscal impact on small businesses. There is no significant anticipated economic cost to individuals who are required to comply with the proposed rule.

Comments on the proposal may be submitted to Linda Fernandez, CEO and Manager, Educational Opportunities and Investment Division, Post Office Box 13407, Austin, Texas 78711-3407, or transmitted electronically to linda.fernandez@cpa.state.tx.us.

This rule amendment is proposed under Texas Education Code, §54.618(b)(2) which authorizes the Board to adopt rules to implement the Program.

The proposed amendment implements Texas Education Code, §54.632.

§7.81.Refunds.

(a) Refunds shall be made in accordance with provisions of these rules and the prepaid tuition contract, in a manner that will not adversely affect the tax status of the program under applicable provisions of the Internal Revenue Code, as amended from time to time. Refunds shall be governed by these rules as amended and as in effect on the date the request for refund is submitted to the board. The [In general, it is the board's intent that the ] amount of any refund shall be the sum of all payments made under the contract for tuition and required fees, less fees due and payable to the program under the board's fee schedule and less any amounts paid by the program pursuant to the prepaid tuition contract prior to the refund. If a contract is cancelled due to the death of the purchaser or beneficiary or due to the graduation of the beneficiary from an eligible educational institution, no cancellation fee will be assessed against the contract.

(b) Refunds shall be made to the purchaser of the prepaid tuition contract unless otherwise designated by the purchaser in writing to the board in the event of the purchaser's death.

(c) Should a beneficiary terminate his/her student status on or after the date on which the institution denies refunds to students withdrawing for a particular semester, no refund shall be paid under the prepaid tuition contract for amounts relating to such semester.

[(d) Examples of circumstances under these rules in which refunds may be made include, but are not limited to, the following.]

[(1) Under any plan if the beneficiary receives a full scholarship for tuition and required fees, the amount of tuition and required fees that would have been paid under the plan selected may be refunded. Under a junior college plan, junior/senior college plan, or a senior college plan, the amount of such refund shall not exceed the tuition scholarship amount. Refund payments may be issued each academic term as long as the scholarship is effective. The purchaser of the prepaid tuition contract shall be entitled to such refund. Proof of scholarship must be submitted in a form acceptable to the board.]

[(2) Under the junior college plan, junior/senior college plan or senior college plan, if a beneficiary receives a partial scholarship for tuition and required fees, the tuition scholarship amount may be refunded. Under the private college plan, if a beneficiary receives a partial scholarship, a refund may be made in an amount equal to the excess of the estimated average private tuition and required fee amounts, over the actual tuition and required fee amounts less the scholarship amount. Refund payments up to the amount determined in accordance with this paragraph may be issued each academic term as long as the scholarship is effective. The purchaser of the prepaid tuition contract shall be entitled to such refund. Proof of scholarship must be submitted in a form acceptable to the board.]

[(3) If the beneficiary dies or becomes disabled while attending an institution of higher education or a private or independent institution of higher education, the amount of benefits remaining available under the prepaid tuition contract, less any applicable fees, may be refunded. A lump sum refund may be made within 60 days of the date the program is notified of the death or disability to the purchaser of the prepaid tuition contract, provided proof of death or disability is submitted in a form acceptable to the board.]

[(4) If the beneficiary dies or becomes disabled after having graduated from high school but prior to attending an institution of higher education or a private or independent institution of higher education, a refund may be issued or the benefits under such contract may be transferred to another qualified beneficiary. If a change of beneficiary is not requested, a lump sum refund may be made within 60 days of the date the program is notified of the death or disability to the purchaser of the prepaid tuition contract, provided proof of death or disability is submitted in a form acceptable to the board. Under the junior college plan, junior/senior college plan, or senior college plan, the refund will equal the average amount of tuition and required fees in effect at the time the refund is requested. Under the private college plan, the refund will equal the estimated average of private tuition and required fees as determined annually by the board.]

[(5) If the beneficiary dies or becomes disabled before the contract is paid in full, a refund may be issued or the benefits under such contract may be transferred to another qualified beneficiary. If a change of beneficiary is not requested, a lump sum refund may be made within 60 days of the date the program is notified of the death or disability to the purchaser of the prepaid tuition contract, provided proof of death or disability is submitted in a form acceptable to the board. For junior college plans, junior/senior college plans, or senior college plans, the refund amount will be equal to a pro rata amount of the average amount of tuition and required fees in effect at the time the refund is requested, such pro rata amount determined by the number of payments made under the contract by the purchaser to the number of payments required to pay the contract in full. For private college plans, the refund amount will be equal to a pro rata amount of the estimated amount of private tuition and required fees set forth in the prepaid tuition contract, such pro rata amount determined by the number of payments made under the contract by the purchaser to the number of payments required to pay the contract in full.]

[(6) If a prepaid tuition contract is terminated under §7.82(c) of this title (relating to Termination of Prepaid Tuition Contract), such contract may be refunded in an amount equal to the present lump sum actuarial value, as of the date of termination, of the average amount of tuition or the estimated amount of private tuition and required fees of junior college plans, junior/senior college plans or the estimated amount of private tuition and required fees for the private college plan, less a cancellation fee; and any other applicable fee. In no case shall a refund be made in an amount less than the total amount paid by the purchaser under the contract less any applicable administrative fees or amounts previously distributed.]

[(7) If the purchaser who selected the junior college plan, junior/senior college plan, or senior college plan dies or becomes disabled and payments cease before the contract is paid in full, and unless otherwise directed by the purchaser in writing, a refund may be made. The refund amount will be equal to a percentage of the average amount of tuition and required fees in effect at the time the refund is requested, determined by reference to the percentage of payments made under the contract by the purchaser. If the purchaser who selected the private college plan dies or becomes disabled and payments cease before the contract is paid in full, a refund may be made. The refund amount will be equal to a percentage of the estimated amount of private tuition and required fees set forth in the prepaid tuition contract, determined by reference to the percentage of payments made under the contract by the purchaser. A lump sum refund may be made within 60 days to the purchaser of the prepaid tuition contract unless otherwise specified in writing by the purchaser as described in this paragraph. In the alternative, contract benefits may be converted to a plan with reduced benefits. Proof of death or disability shall be in a form acceptable to the board. Notwithstanding any other provision of this paragraph, the purchaser, in a writing to the board, and providing such other information as the board may request, may designate a person who shall have a right of survivorship with respect to purchaser's rights and obligations pursuant to a prepaid tuition contract; provided that such designation shall in no way affect the purchaser's ability to modify or terminate the contract and receive a refund without the consent or authorization of the designee.]

[(8) Refunds may be made for other reasons as approved by the board. By way of example, such refunds may be made in an amount equal to the lowest amount of tuition and required fees of all institutions under the plan selected, less a cancellation fee. Refund payments may be made in semiannual installments to the purchaser of the prepaid tuition contract.]

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

Filed with the Office of the Secretary of State on June 19, 2009.

TRD-200902488

Martin Cherry

General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2009

For further information, please call: (512) 475-0387


CHAPTER 8. JOBS AND EDUCATION FOR TEXANS (JET) GRANT PROGRAM

The Comptroller of Public Accounts proposes new Chapter 8, concerning Jobs and Education for Texans (JET) Grant Program. New Chapter 8 is necessary to implement House Bill 3 and House Bill 1935, 81st Legislature, 2009, and to better define the role of the comptroller's office and the JET advisory board in implementing these requirements. The new rules will reside under Texas Administrative Code, Title 34, Part 1, Chapter 8, new Subchapter A, §8.1, concerning Definitions; Subchapter B, §§8.11 - 8.14, concerning Advisory Board Composition, Meeting Guidelines; Subchapter C, §§8.21 - 8.25, concerning Grant Programs; Subchapter D, §8.31, concerning Grants to Nonprofit Organizations for Innovative and Successful Programs; Subchapter E, §8.41, concerning Grants to Educational Institutions for Career and Technical Education Programs; and Subchapter F, §8.51, concerning Grants for Scholarships. The Texas State Comptroller's report, "Texas Works: Training and Education for All Texans (2008)" states that Texas faces growing shortages of the skilled workers that help attract and retain business. According to the U.S. Department of Education, 90% of the fastest-growing jobs in the new information and service economy will require some postsecondary education.

These bills establish the JET grant program to counter the shortages by providing grants to public junior colleges, public technical institutes, and eligible nonprofits that foster work force development in emerging industries and high-demand occupations. In addition, the Comptroller of Public Accounts is authorized to award scholarships to public junior college or public technical institute students who demonstrate a financial need and are training for a high-demand occupation.

John Heleman, Chief Revenue Estimator, has determined that for the first five-year period the rules will be in effect, there will be no significant revenue impact on the state or units of local government.

Mr. Heleman also has determined that for each year of the first five years the rules are in effect, the proposed new rules would benefit the public by clarifying the comptrollers procedures for implementing the JET program. The proposed amendment would have no fiscal impact on small businesses. There is no anticipated economic cost to individuals who are required to comply with the proposed rules.

Comments on the proposals may be submitted to Linda Fernandez, CFO and Manager, Educational Opportunities and Investment Division, at linda.fernandez@cpa.state.tx.us or at P.O. Box 13528, Austin, Texas 78711.

SUBChAPTER A. DEFINITIONS

34 TAC §8.1

The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.

The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.

§8.1.Definitions.

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

(1) "Act" means Education Code, Chapter 134, as adopted by House Bill 3, 81st Legislature, 2009, and Government Code, Chapter 403, Subchapter O, as adopted by House Bill 1935, 81st Legislature, 2009.

(2) "Advisory board" means the advisory board of education and workforce stakeholders created pursuant to the Act.

(3) "Career and technical education" means organized educational activities that offer a sequence of courses that:

(A) provides individuals with coherent and rigorous content aligned with challenging academic standards and relevant technical knowledge and skills needed to prepare for further education and careers in high-demand occupations or emerging industries;

(B) includes competency-based applied learning that contributes to the academic knowledge, problem-solving skills, work attitudes, general employability skills, technical skills, and occupation-specific skills, and knowledge of all aspects of an industry, including entrepreneurship, of an individual; or

(C) provides a license, a certificate, or a postsecondary degree.

(4) "Certificate or degree completion" means receiving a degree, certificate or other award for completion of a curriculum.

(5) "Comptroller" means the Comptroller of Public Accounts.

(6) "Developmental education" means courses, tutorials, laboratories, or other efforts to bring students' skill levels in reading, writing, and mathematics to college entrance level.

(7) "Emerging industry" means a growing, evolving or developing industry based on new technological products or concepts.

(8) "Enrolled" means registered for or in the process of registering for a post-secondary education or training program.

(9) "Financial need" may be determined by proof of:

(A) annual household adjusted income at or below the federal poverty income guidelines;

(B) eligibility for Aid to Families with Dependent Children or other public assistance programs (includes Women, Infants, and Children (WIC) program participants);

(C) eligibility for a Pell Grant or comparable state program of need-based financial assistance;

(D) eligibility for benefits under the Food Stamp Act of 1977 or the Health and Human Services (HHS) Poverty Guidelines; or

(E) eligibility as determined by the Free Application for Federal Student Aid (FAFSA).

(10) "High-demand occupation" means a job, profession, skill, or trade for which employers within the State of Texas generally, or within particular regions or cities of the state, have or will have a substantial need. In determining whether there is or will be a substantial need for a particular job, profession, trade, or skill, the comptroller may consider:

(A) the Texas Workforce Commission's list of high-demand occupations and/or its labor market projections;

(B) whether the occupation has been targeted for Workforce Investment Act (WIA) training as a result of employer or community input; or

(C) research, projections, or workforce data that are compiled by the comptroller or derived from one of the following sources:

(i) the Texas Workforce Commission;

(ii) the United States Department of Labor; or

(iii) another source which provides evidence that a particular job, profession, skill, or trade will provide potential economic benefits to the state or a local or regional area within the state.

(11) "In-kind contribution" means a cash value placed on a non-monetary contribution or investment.

(12) "JET" means the Jobs and Education for Texans Grant Program.

(13) "Low income student" means a student who demonstrates financial need as determined under this section.

(14) "Nonprofit organization" means an organization that is exempt from federal income taxation under Internal Revenue Code of 1986, §501(a), and that is described by §501(c)(3) of that code.

(15) "Notice of Availability" or "NOA" means the notice of availability that is published by the comptroller pursuant to §8.22 of this title (relating to Notice of Grant Availability and Application).

(16) "Persistence rates" means the rate at which students persist in career and technology education courses, often measured by the percentage of students who continue to be enrolled from one year to the succeeding year.

(17) "Prevailing wage" means a wage determination as used by the Texas Workforce Commission for the Skills Development Fund or similar TWC programs or as determined by the comptroller using relevant federal, state and local labor wage data.

(18) "Public junior college" means any junior college certified by the Texas Higher Education Coordinating Board (THECB) in accordance with Education Code, §61.003.

(19) "Public technical institute" means the Lamar Institute of Technology or the Texas State Technical College System in accordance with Education Code, §61.003.

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 June 22, 2009.

TRD-200902548

Ashley Harden

Chief Deputy General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2009

For further information, please call: (512) 475-0387


SUBCHAPTER B. ADVISORY BOARD COMPOSITION, MEETING GUIDELINES

34 TAC §§8.11 - 8.14

The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.

The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.

§8.11.Advisory Board Purpose and Composition.

(a) The advisory board shall assist the comptroller in administering the Jobs and Education for Texans (JET) Grant Program.

(b) The comptroller is the presiding officer of the board.

§8.12.Meetings Required.

(a) The advisory board is required to meet at least once each quarter to recommend awarding grants to public junior colleges, public technical institutes, and eligible nonprofit organizations.

(b) Meetings may be called at the request of the board's presiding officer.

(c) Meetings shall be subject to the requirements of the Open Meetings Act.

§8.13.General Advisory Board Responsibilities.

The advisory board shall provide advice and recommendations to the comptroller on:

(1) the manner in which public junior colleges, public technical institutes, and eligible nonprofit organizations apply for Jobs and Education for Texans (JET) Grant Program grants; and

(2) the JET grants to be awarded by the comptroller.

§8.14.General Comptroller Responsibilities to the Advisory Board.

The comptroller serves as presiding officer of the board. The presiding officer shall perform all duties and responsibilities imposed by law and in this chapter.

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

Filed with the Office of the Secretary of State on June 22, 2009.

TRD-200902549

Ashley Harden

Chief Deputy General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2009

For further information, please call: (512) 475-0387


SUBCHAPTER C. GRANT PROGRAM

34 TAC §§8.21 - 8.25

The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.

The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.

§8.21.General Statement of Purpose.

In accordance with the Act, the comptroller establishes the Jobs and Education for Texans (JET) Grant Program which shall be administered pursuant to the Act and the rules in this chapter to award grants from the JET fund for the following purposes:

(1) to develop, support, or expand programs of nonprofit organizations that meet the requirements of Education Code, §134.005 and Government Code, §403.355, and that prepare low-income students for careers in high-demand occupations;

(2) for the development of new career and technical education programs at public junior colleges and public technical institutes that meet the requirements of Education Code, §134.006 and Government Code, §403.356; and

(3) to provide scholarships for students in career and technical education programs who meet the requirements of Education Code, §134.007 and Government Code, §403.357.

§8.22.Notice of Grant Availability and Application.

(a) From time to time, the comptroller may publish a Notice of Availability (NOA) of grant funds under this chapter. The notice shall be published in the Texas Register and on the comptroller's Web site. In addition to the respective purpose for each grant program under this chapter, the notice may include:

(1) the total grant funds available for award;

(2) the minimum and maximum amount of grant funds available for each grant recipient;

(3) eligibility criteria;

(4) application requirements;

(5) grant award and evaluation criteria;

(6) any grant requirements in addition to those set forth in this chapter;

(7) the date by which the application must be submitted to the comptroller;

(8) the anticipated date of grant awards; and

(9) any other information or instructions necessary and appropriate for awarding the grant as determined by the comptroller.

(b) To be eligible for a grant award, an applicant meeting the eligibility criteria identified in the NOA shall submit an application in the form and manner as prescribed by the comptroller in the NOA.

(c) The comptroller may request additional information at any time prior to grant award in order to effectively evaluate any application.

§8.23.Grant Award and Acceptance.

(a) To award a grant, the comptroller shall provide a grant contract to the grant recipient that shall contain all the terms and conditions for the use of the grant funds.

(b) To receive grant funds, an applicant must execute and return the contract to the comptroller's office.

§8.24.Reporting Requirements.

A public junior college, public technical institute, nonprofit organization or any other entity receiving a grant under this chapter must comply with all reporting requirements of the contract in a frequency and format determined by the comptroller in order to maintain eligibility for grant payments. Failure to comply with the reporting requirements may result in termination of the grant award and the entity being ineligible for future grants under this chapter.

§8.25.Enforcement.

(a) Grant funds must be used in compliance with the terms of the contract for the purposes designated in the contract or will be subject to refund by the grantee, disqualification from receiving further funds under this chapter or any other available legal remedies. If deemed appropriate, the grantee may also be referred to another department or agency including, but not limited to, the Attorney General's Office, the Comptroller's Criminal Investigation Division, or the Comptroller's Internal Audit Department.

(b) The comptroller or the comptroller's designee may audit the use of 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 June 22, 2009.

TRD-200902550

Ashley Harden

Chief Deputy General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2009

For further information, please call: (512) 475-0387


SUBCHAPTER D. GRANTS TO NONPROFIT ORGANIZATIONS FOR INNOVATIVE AND SUCCESSFUL PROGRAMS

34 TAC §8.31

The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.

The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.

§8.31.Grants to Nonprofit Organizations.

(a) This subchapter is applicable to the Jobs and Education for Texans (JET) Grant Program awards to nonprofit organizations to develop, support, or expand programs of nonprofit organizations that meet the requirements of Education Code, §134.005 and Government Code, §403.355, and that prepare low-income students for careers in high-demand occupations.

(b) The nonprofit organization must meet the following criteria to be eligible to receive an award:

(1) provide a program to offer assistance to low-income students in preparing for, applying to, and enrolling in a public junior college or public technical institute;

(2) be governed by a board or other governing structure that includes recognized leaders of broad-based community organizations and members of the local business community;

(3) demonstrate the organization's program has achieved or will achieve success among program participants in the following areas, to the extent applicable to the type of program the organization provides:

(A) above average completion of developmental education among participating public junior college or public technical institute students;

(B) above average persistence rates among participating public junior college or public technical institute students; and

(C) above average certificate or degree completion rates by participating students within a three-year period compared to demographically comparable public junior college and public technical institute students; and

(4) provide matching funds in accordance with the Act and this chapter.

(c) To be eligible to receive a grant under JET, a nonprofit organization must be exempt from federal income taxation under Internal Revenue Code of 1986, §501(a), as an organization described by §501(c)(3) of that code. In its application, the nonprofit organization must provide proof of its federal income taxation exemption in a format determined by the comptroller.

(d) The comptroller shall not award a grant to:

(1) a nonprofit organization to provide a comprehensive educational program to students that serves as a substitute for a regular educational program provided by a school district or open-enrollment charter school;

(2) a private elementary or secondary school; or

(3) a nonprofit organization that provides services to an individual who also receives a scholarship awarded by the comptroller under this chapter.

(e) A grant recipient shall provide the matching funds as identified in its application.

(1) Matching funds may be obtained from any source available to the nonprofit organization, including in-kind contributions, community or foundation grants, individual contributions, and local governmental agency operating funds.

(2) A grant recipient's matching share may consist of one or more of the following contributions:

(A) cash;

(B) in-kind contributions;

(C) equipment, equipment use, materials or supplies;

(D) personnel or curriculum development cost; or

(E) administrative costs that are directly attributable to the project.

(3) The matching funds must be expended on the same project for which the grant funds are provided and valued in a manner acceptable or as determined by the comptroller.

(f) The comptroller may disburse grants to nonprofit organizations in one or more payments.

(g) Grants awarded under this subchapter shall be distributed only upon a showing by the nonprofit organization that the funds awarded will be used for low income current or prospective students age 18 or older who have graduated from high school or obtained a GED and that are preparing for, applying to and enrolling in a public junior college or public technical institute.

(h) Grants awarded under this subchapter shall be awarded in a manner that takes a balanced geographical distribution into account. A balanced geographical distribution shall be determined by the comptroller and notice of balanced geographical distribution considerations shall be provided in the Notice of Availability (NOA).

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 June 22, 2009.

TRD-200902551

Ashley Harden

Chief Deputy General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2009

For further information, please call: (512) 475-0387


SUBCHAPTER E. GRANTS TO EDUCATIONAL INSTITUTIONS FOR CAREER AND TECHNICAL EDUCATION PROGRAMS

34 TAC §8.41

The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.

The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.

§8.41.Grants for Career and Technical Education Programs.

(a) This subchapter is applicable to the Jobs and Education for Texans (JET) Grant Program awards to public junior colleges and public technical institutes for the development of career and technical education programs that meet the requirements of Education Code, §134.006 and Government Code, §403.356.

(b) A grant received under this subchapter may be used only:

(1) to support courses or programs that prepare students for career employment in occupations that are identified by local business as being in high demand;

(2) to finance the initial costs of career and technical education courses or program development, including the costs of purchasing equipment, and other expenses associated with the development of an appropriate course; and

(3) to finance a career and technical education course or program that leads to a license, certificate, or postsecondary degree.

(c) In awarding a grant under this subchapter, the comptroller shall primarily consider the potential economic returns to the state from the development of the career and technical education course or program. The comptroller may also consider whether the course or program:

(1) is part of a new, emerging industry or high-demand occupation;

(2) offers new or expanded dual credit career and technical educational opportunities in public high schools; or

(3) is provided in cooperation with other public junior colleges or public technical institutes across existing service areas.

(d) A grant recipient shall provide the matching funds as identified in its application.

(1) Matching funds may be obtained from any source available to the college, including in-kind contributions, industry consortia, community or foundation grants, individual contributions, and local governmental agency operating funds.

(2) A grant recipient's matching share may consist of one or more of the following contributions:

(A) cash;

(B) in-kind contributions or equipment use;

(C) equipment, equipment use, materials or supplies;

(D) personnel or curriculum development cost; or

(E) administrative costs that are directly attributable to the project.

(3) The matching funds must be expended on the same project for which the grant funds are provided and valued in a manner acceptable or as determined by the comptroller.

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 June 22, 2009.

TRD-200902552

Ashley Harden

Chief Deputy General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2009

For further information, please call: (512) 475-0387


SUBCHAPTER F. GRANTS FOR SCHOLARSHIPS

34 TAC §8.51

The new subchapter is authorized under Education Code, §134.008 and Government Code, §403.358, which provides the comptroller the authority to adopt rules as necessary for the administration of the JET program.

The new subchapter implements Education Code, §134.002 and Government Code, §403.352, which requires the comptroller to establish and administer the Jobs and Education for Texans fund as a dedicated account in the general revenue fund.

§8.51.Scholarship Grants.

(a) This subchapter is applicable to the Jobs and Education for Texans (JET) Grant Program awards that provides scholarships for students in career and technical education programs who meet the requirements of Education Code, §134.007 and Government Code, §403.357.

(b) The comptroller may award grants to public junior college and public technical institutes that meet the eligibility criteria as published in a Notice of Availability (NOA). A public junior college or public technical institute that receives a grant under this subchapter shall award scholarships to students who:

(1) demonstrate financial need;

(2) are permanent legal residents of the United States; and

(3) are enrolled or enrolling in a public junior college's or public technical institute's training program for a high-demand occupation as determined by the comptroller.

(c) The comptroller may authorize an eligible public junior college or public technical institute to make the final selection of the scholarship recipient.

(d) Students receiving a scholarship under this subchapter may only use the scholarship funds to pay for tuition and fees, including lab fees and exam or certification fees, for qualifying training programs for high-demand occupations as determined by the comptroller.

(e) The comptroller will publish a list of approved training programs for high-demand occupations on an annual basis or more frequently if necessary.

(f) The comptroller shall not award a scholarship under this subchapter to an individual who also receives assistance from a nonprofit organization that receives a grant under this chapter. A recipient violating this requirement may be prohibited from reapplying for a scholarship under this chapter in subsequent years.

(g) If the public junior college or public technical institute attended by the scholarship recipient determines that the recipient is not complying with the scholarship conditions under this chapter or any subsequent agreements entered into with the recipient, then the recipient's scholarship shall terminate. The public junior college or public technical institute must either refund the amount of the scholarship received, prorated according to the fraction of the semester or academic year not completed, to the comptroller or ensure that the amount is made available to another eligible student who is selected to receive a JET scholarship.

(h) Each public junior college or public technical institute that receives scholarship funding under this chapter must ensure that the scholarship recipient consents to the release of personal and educational information to the comptroller to enable the comptroller to study and compile a report on the effectiveness of the JET program.

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

Filed with the Office of the Secretary of State on June 22, 2009.

TRD-200902553

Ashley Harden

Chief Deputy General Counsel

Comptroller of Public Accounts

Earliest possible date of adoption: August 2, 2009

For further information, please call: (512) 475-0387