TITLE 19.EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 1. AGENCY ADMINISTRATION

Subchapter A. GENERAL PROVISIONS

19 TAC §1.5

The Texas Higher Education Coordinating Board proposes amendments to §1.5 concerning the membership in Board committees. Specifically, this amendment provides that each member of the Board is an ex-officio member of each committee and may participate in all committee meetings and vote on any committee actions.

Ms. Jan Greenberg, General Counsel, has determined that for each year of the first five years the proposed amendment is in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Ms. Greenberg has also determined that for each year of the first five years these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be the increased flexibility of Board committees to take action. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed amendment to the rules may be submitted to Ms. Jan Greenberg, General Counsel, P. O. Box 12788, Austin, Texas 78711.

The amendment to the rules is proposed under the Texas Education Code, Section 61.027, which provides the Coordinating Board with the authority to adopt rules

The amendment to the rules affect the Texas Education Code, Section 61.027.

§1.5.Coordinating Board Committees

(a) The chair of the Board shall appoint committees from the Board's membership as appropriate to conduct the business of the Coordinating Board and shall designate the chair and vice chair of each committee.

(b) A committee meeting may be called by the committee chair. The designated committee chair shall conduct each committee meeting. [ Each committee meeting shall be conducted by the designated committee chair but each member of the Board may participate in all committee meetings and may vote on any committee action. ]

(c) Committees will adopt recommendations on the agenda items for consideration by the Coordinating Board. In the event a decision cannot be reached by a committee on any agenda item, the Coordinating Board will consider that agenda item without a recommendation from the committee.

(d) Each member of the Board is an ex-officio member of each committee and may participate in all committee meetings and vote on any committee actions.

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 July 26, 2001.

TRD-200104338

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Chapter 5. PROGRAM DEVELOPMENT

Subchapter P. TESTING AND DEVELOPMENTAL EDUCATION

19 TAC §5.312, §5.314

The Texas Higher Education Coordinating Board proposes amendments to §5.312 and §5.314 concerning the Texas Academic Skills Program (TASP). Specifically, the amendments to §5.314(b)(10) exempts from TASP requirements members of the armed forces serving on active duty military and §5.314(b)(11) exempts from TASP requirements certain students who graduate from high school after completing the recommended or advanced high school curriculum with a 3.5 or higher GPA. The amendments to §5.312(1) defines "Accredited Private High School" and §5.312(5) defines "Equivalent or Similar Curriculum". Section 5.314(a)(6) has been amended for clarity; and §5.314(b)(2)(B)(ii) has been deleted since it no longer applies.

Dr. Leticia Hinojosa, Assistant Commissioner for Participation and Success, has determined that for each year of the first five years the proposed amendments are in effect, there will be decreased cost in the amount of $594,180 to state or local government as a result of enforcing or administering the rules.

Dr. Hinojosa has also determined that for each year of the first five years these amendments to the rules are in effect, the public benefit anticipated as a result of administering the sections will be an increased number of active-duty military personnel enrolling in Texas public institutions of higher education and a slight increase in the number of students just graduating from high school who will be exempt from the TASP requirements. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed amendments to the rules may be submitted to Dr. Leticia Hinojosa, Assistant Commissioner for Participation and Success, P. O. Box 12788, Austin, Texas 78711.

The amendments to the rules are proposed under the Texas Education Code, §51.306 and §51.3061 which provides the Coordinating Board with the authority to adopt rules concerning the TASP.

The amendments to the rules affect the Texas Education Code, §51.306 and §51.3061, as amended by House Bill 234 and House Bill 2109, 77th Texas Legislature.

§5.312.Definitions.

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

(1) Accredited Private High School -- Non-public schools accredited by the Texas Private School Accreditation Commission (TEPSAC), or, if outside of the State of Texas, accredited by an organization similar to the TEPSAC.

(2) [ (1) ] Alternative Test -- A test instrument other than the TASP Test approved by the Board for use by an institution to initially test a student for TASP purposes.

(3) [ (2) ] Blind student and Deaf student -- Students who are blind or deaf persons as defined by the Texas Education Code, § 54.205(a).

(4) [ (3) ] Developmental Education -- Courses, tutorials, laboratories, or other efforts to bring student skill levels in reading, writing and mathematics to entering college level. English as a Second Language (ESL) courses may be considered developmental education, but only when they are used to bring student skill levels in reading or writing to entering college level. The term does not include courses in study skills or thinking skills.

(5) Equivalent or Similar Curriculum -- At an accredited private high school or at a high school out-of-state, a high school curriculum that has been shown by a student to be equivalent or similar to the recommended or advanced high school curriculum in Texas.

(6) [ (4) ] Minimum Passing Standard -- Statewide testing standard each undergraduate student who enters a public institution of higher education, unless exempt, must meet or exceed on measures of reading, writing and mathematics skills in order to fulfill requirements specified in Texas Education Code, §51.306.

(7) [ (5) ] Non--Degree Credit Course - A course which may not be counted toward a degree or certificate. The term includes developmental, pre-collegiate and continuing education courses.

(8) [ (6) ] Testing irregularity -- Any occurrence in the course of administering the TASP Test or detected after administration of the test that violates rules of test participation, standards of test security and/or academic honesty.

(9) [ (7) ] TASP -- The Texas Academic Skills Program specified in Texas Education Code, § 51.306.

(10) [ (8) ] TASP requirements -- The statutory requirements of Texas Education Code, Section 51.306.

(11) [ (9) ] Texas Academic Skills Program (TASP) Test -- The test, other than an alternative test, as defined and reviewed by Texas higher education faculty and approved by the Board, that fulfills the statutory requirements of Texas Education Code, § 51.306. The test shall be uniformly administered statewide on days prescribed by the Board and shall be scored by the testing contractor. The test measures college readiness in reading, writing and mathematics and includes a written essay. It is administered under secure conditions and each student is provided with diagnostic information regarding test performance.

(12) [ (10) ] Upper-division course -- Any degree credit course beyond the sophomore level as defined by a four-year senior university, and any degree credit course offered by an upper-level institution.

§5.314.Eligibility and Exemptions/Exceptions.

(a) Eligibility

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

(6) After successful completion of an appropriate developmental program, a student must retake appropriate sections of the TASP Test [ unless the student has earned a grade of "B" or better in an approved course ].

(7) - (12) (No change.)

(b) Exemptions/Exceptions

(1) (No change.)

(2) A student who performs at or above a level set by the Board on the ACT, Scholastic Assessment Test (SAT) or exit-level Texas Assessment of Academic Skills (TAAS) shall be exempt from TASP requirements. This exemption shall be in effect for five years from the date the ACT or SAT was taken and for three years from the date the TAAS Test was taken. While a test may be retaken, ACT or SAT scores meeting or exceeding the standard set by the Board must be achieved on a single test administration. TAAS scores must meet or exceed exemption standards on the first attempt for each section. Standards for exemption from TASP requirements are:

(A) (No change.)

(B) SAT:

[(i)] for a test taken in April 1995 or later, a combined verbal and mathematics score of 1070 with a minimum of 500 on both the verbal and the mathematics tests; or

[(ii) for a test taken prior to April 1995, a combined verbal and mathematics score of 970, with a minimum of 420 on the verbal test and 470 on the mathematics test; or]

(C) TAAS: a minimum scale score of 1770 on the writing test, a Texas Learning Index (TLI) of 86 on the mathematics test and 89 on the reading test.

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

(10) A student who is serving on active duty as a member of the armed forces of the United States.

(11) A student who graduates from a public high school or an accredited private high school in any state with a grade point average of 3.5 or higher on a 4.0 scale or the equivalent and completed the recommended or advanced high school curriculum or an equivalent or similar curriculum at an accredited private high school or at a high school outside of Texas. This exemption is effective only for a student who enrolls in an institution of higher education on or before the second anniversary of the date the student graduated from high school.

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 July 26, 2001.

TRD-200104340

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Subchapter T. TOBACCO LAWSUIT SETTLEMENT FUNDS

19 TAC §5.420

The Texas Higher Education Coordinating Board proposes amendments to §5.420 concerning the Permanent Fund for Nursing, Allied Health, and Other Health-Related Education Grant Program in accordance with recent legislation (Senate Bill 572) and Texas Education Code, §§63.201 - 63.203. Specifically, this amendment will implement legislation to give priority to eligible institutions with nursing programs that prepare students for initial licensure as registered nurses.

Dr. Marshall Hill, Assistant Commissioner for Universities and Health-Related Institutions, has determined that for each year of the first five years the proposed amendments are in effect, there will be no fiscal implications to state or local government as a result of enforcing or administering the rules.

Dr. Hill has also determined that for each year of the first five years these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be the additional attention given to addressing the shortage of nurses. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed amendment to the rules may be submitted to Dr. Marshall Hill, Assistant Commissioner for Universities and Health-Related Institutions, P.O. Box 12788, Austin, Texas 78711.

The amendments to the rules are proposed under the Texas Education Code, §63.202, which directs the Coordinating Board to adopt rules for the award of grants from investment returns of the Permanent Fund.

The amendments to the rules affect the Texas Education Code, §63.201 and §63.202.

§5.420.Nursing, Allied Health and Other Health-related Education Grant Program.

(a) - (h) (No change.)

(i) This subsection pertains to the 2002-03 biennium only (rules are effective only from September 1, 2001 to August 31, 2003).

(1) Funds available to the program for the 2002-03 biennium will be distributed as grants in proportions determined by the Commissioner through three separate programs:

(A) a competitive, peer-reviewed process, as described in subsection (a)-(h) of this section;

(B) a competitive, peer-reviewed process for eligible institutions proposing to address the shortage of registered nurses, as described in subsections (a)-(h) unless amended in subsections (i)(2) and (i)(3) of this section; and

(C) a funding formula for eligible institutions, as amended in subsection (i)(2) of this section, that are seeking to increase enrollments in their nursing programs. The funding formula will give financial incentives to nursing faculty to provide clinical and classroom instruction in addition to carrying a full teaching load. In implementing a funding formula, the Board staff will consider semester credit hours and full-time equivalent faculty positions and other data reported by or requested of eligible institutions for each fall semester of the biennium.

(2) In subsection (a)(4), of this section, eligible institutions, as they pertain to subsections (i)(1)(B), and (i)(1)(C) of this section, are institutions of higher education that offer nursing programs that prepare students for initial licensure as registered nurses, including two-year institutions of higher education and public and independent or private institutions of higher education.

(3) In subsections (a)(5), and (a)(8), of this section, the following pertain to subsection (i)(1)(B) of this section:

(A) Eligible programs - Nursing initiatives that propose to address the shortage of registered nurses by developing new or existing activities and projects, that will promote innovation in the recruitment and retention of nursing students and faculty.

(B) Minimum award - Minimum award is $10,000 per award in any fiscal year.

(4) In subsection (a)(8) of this section, as it pertains to subsection (j)(1)(A) of this section, the minimum award will be $10,000.

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 July 26, 2001.

TRD-200104341

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Chapter 8. CREATION, EXPANSION, DISSOLUTION, OR CONSERVATORSHIP OF PUBLIC COMMUNITY/JUNIOR COLLEGE DISTRICTS

Subchapter E. BRANCH CAMPUS MAINTENANCE TAX

19 TAC §8.98

The Texas Higher Education Coordinating Board proposes amendments to §8.98 concerning the establishment of a branch campus maintenance tax. Specifically, this amendment will clarify the process for a county or school district governing board in establishing a branch campus maintenance tax.

Dr. Glenda Barron, Assistant Commissioner for Community and Technical Colleges, has determined that for each year of the first five years the proposed amendments are in effect, there will be no 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 these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be the clarification of the process for a county or school district governing board seeking authority to hold a branch campus maintenance tax election. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed amendment to the rules may be submitted to Dr. Glenda Barron, Assistant Commissioner for Community and Technical Colleges, P.O. Box 12788, Austin, Texas 78711.

The amendments to the rule are proposed under the Texas Education Code, §130.001(b)(3) which provides the Coordinating Board with the authority to adopt standards for the operation of public junior colleges and prescribe the rules and regulations, and §130.087, which allows a governing body of a school district or a county to levy a junior college district branch campus maintenance tax.

The amendments to the rule affect the Texas Education Code, §130.087, Branch Campus Maintenance Tax.

§8.98.Presentation of a Certified Petition to the Board

(a) Upon submission of a petition for an election to authorize a branch campus maintenance tax to a governing body of an independent school district or county, the governing body may propose an election and submit to the Commissioner a feasibility study and survey. Upon approval by the Commissioner, the governing body may enter an order for an election.

(b) [ (a) ] The governing body of a county with a population of 150,000 or less, on completion and approval of the feasibility study and survey by the Commissioner, on its own motion and without presentation and approval of a certified petition to the Board may order [ propose ] an election to authorize a branch campus maintenance tax.

(c) [ (b) ] The governing body of an independent school district or county notwithstanding subsection (b) [ (a) ] of this section, shall present a certified petition to the Commissioner who shall then present it to the Board for approval or disapproval.

(d) [ (c) ] After the petition and any additional documentation or information are presented to the Commissioner, a minimum of 45 days must elapse between the date on which the petition and supporting documents are received by the Commissioner and the quarterly meeting of the Board when the Board will consider the petition.

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 July 26, 2001.

TRD-200104342

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Chapter 9. PROGRAM DEVELOPMENT IN PUBLIC COMMUNITY/JUNIOR COLLEGE DISTRICTS AND TECHNICAL COLLEGES

Subchapter F. WORKFORCE CONTINUING EDUCATION COURSES

19 TAC §§9.113 - 9.116

The Texas Higher Education Coordinating Board proposes amendments to §§9.113, 9.114, 9.115, 9.116 concerning workforce continuing education courses. Specifically, these amendments will remove out-of-date references to the "Continuing Education Guidelines and Common Course Manual," a discontinued publication. In addition, they will allow the Commissioner to make limited exceptions to the minimum requirement for length of workforce continuing education courses to incorporate a recommendation made by an advisory committee.

Dr. Glenda Barron, Assistant Commissioner for Community and Technical Colleges, has determined that for each year of the first five years the proposed amendments are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. Although there will be no fiscal impact for the current biennium, there would likely be a small increase in the total number of workforce continuing education contact hours reported for funding in future biennia. Assuming that on average each two-year college campus might implement one shorter course, the estimated increase in formula funding costs statewide would be approximately $120,000 annually for the five years following the current biennium.

Dr. Barron has also determined that for each year of the first five years these proposed amendments are in effect, the public benefit anticipated as a result of administering the sections will be the ability of community and technical colleges to deliver additional needed workforce education courses. Delivery of workforce continuing education courses to employees of small businesses might also be enhanced. Economic costs to persons who are required to comply with the section as proposed will be reduced. Local employment will be affected in a positive manner by the availability of appropriate workforce continuing education courses that are certified by local, state, or national licensing, certifying, regulatory, or accrediting agencies but consist of fewer than seven contact hours.

Comments on the proposed amendments to the rules may be submitted to Dr. Glenda Barron, Assistant Commissioner for Community and Technical Colleges, P.O. Box 12788, Austin, Texas 78711.

The amendments to the rules are proposed under the Texas Education Code, §§54.051(n), 54.545, 61.051(j), 61.053, 61.054, 61.060, 61.061, 61.062, 130.001(b)(3)-(4), 130.003(e)(4), and 130.006, which authorizes the Coordinating Board to adopt policies, enact regulations, and establish rules for public community/junior and technical colleges for the coordination of workforce continuing education courses eligible for state appropriations.

The amendments do not affect any state statutes, article, or codes.

§9.113.General Provisions.

(a) (No change.)

[(b) Workforce continuing education courses shall be approved for five years from the beginning of the quarter following the approval date. The termination date for each course shall be reflected on the approved course list. Any course not offered within a five-year period shall be deleted from the approved course list.]

(b) [ (c) ] Any workforce continuing education program meeting or exceeding 360 contact hours shall be subject to all of the requirements for workforce education programs for state appropriations as outlined in Chapter 9, Subchapter E of this title (relating to New Certificate and Associate Degree Programs).

(c) [ (d) ] Any workforce continuing education program meeting or exceeding 780 contact hours in length must result in the award of semester or quarter credit hours and be applicable to a certificate and an applied associate degree program.

§9.114.Application and Approval Procedures for Workforce Continuing Education Courses.

(a) Any workforce continuing education course listed in the [ Continuing Education Guidelines and Common Course Manual (CCM) or the ] Workforce Education Course Manual (WECM) may be offered by any public community/junior or technical college without prior approval by the Board. Courses in the current [ CCM or ] WECM are valid until revised or deleted by subsequent updates of the [ CCM or ] WECM.

(b) All workforce continuing education courses shall meet the guidelines outlined in the Guidelines for Instructional Programs in Workforce Education as approved by the Board[ , the Continuing Education Guidelines and Common Course Manual, ] and the Workforce Education Course Manual.

§9.115.Funding.

(a) (No change.)

(b) [ All ] Workforce continuing education courses with fewer than seven (7) contact hours of instruction will not receive state funding unless the specific type and length of instruction are required by local, state, or national licensing, certifying, regulatory, or accrediting agencies. [ shall include no fewer than seven (7) contact hours of instruction for institutions to receive state funding. ]

§9.116.Reporting to the Board.

Contact hours for workforce continuing education courses from public community/junior and technical colleges must be determined and reported in compliance with Board policy as outlined in the Guidelines for Instructional Programs in Workforce Education as approved by the Board, the [ Continuing Education Guidelines and Common Course Manual, ] Workforce Education Course Manual, and state law.

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 July 26, 2001.

TRD-200104343

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Chapter 13. FINANCIAL PLANNING

Subchapter J. TEXAS FUND FOR GEOGRAPHY EDUCATION

19 TAC §§13.180 - 13.187

The Texas Higher Education Coordinating Board proposes new §§13.180 - 13.187 concerning the Texas Fund for Geography Education. Specifically, these new sections will establish the Texas Fund for Geography Education and provide for its management.

Dr. Roger Elliott, Assistant Commissioner for Finance, Campus Planning and Research, has determined that in the first year of the first five years the new rules are in effect, there will be a cost to the state of $500,000, but no fiscal implications exist for the four years thereafter as a result of enforcing or administering the rules.

Dr. Elliott has also determined that for each year of the first five years these amendments to the rules are in effect, the public benefit anticipated as a result of administering the sections will be improved geography education. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these new sections as proposed. There is no impact on local employment.

Comments on the new rules may be submitted to Dr. Roger Elliott, Assistant Commissioner for Finance, Campus Planning and Research, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §§61.941 - 61.945 which provides the Coordinating Board with the authority to enter an agreement with the National Geographic Society to create the Texas Fund for Geography Education and to appoint a committee to manage the fund.

The new rules affect the Texas Education Code, §§61.941 - 61.945.

§13.180.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter X, Texas Fund for Geography Education. These rules establish procedures to administer the fund as prescribed in the Texas Education Code, §§ 61.942 through 61.945.

(b) Scope. Unless otherwise noted, this subchapter applies to the National Geographic Society, the Texas Higher Education Board, and any institution seeking funding from the Texas Fund for Geography Education.

(c) Purpose. This subchapter establishes guidelines for the creation and implementation of the Texas Fund for Geography Education, which will support projects to improve the quality of geography education in Texas and promote a better understanding of Texas by all its residents.

§13.181.Definitions.

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

(1) Agreement - The agreement between the National Geographic Society and the Coordinating Board to create and administer the Texas Fund for Geography Education.

(2) Board - The Texas Higher Education Coordinating Board.

(3) Commissioner - The Commissioner of Higher Education.

(4) Committee - The advisory committee appointed by the Commissioner to solicit and recommend grant proposals.

(5) Fund - The Texas Fund for Geography Education, which consists of funds contributed by the Board, the Society, and donors and income to the fund.

(6) Society - The National Geographic Society of Washington, D.C.

§13.182.Agreement with National Geographic Society.

(a) The Board shall enter into an agreement with the Society to create and to manage the fund, subject to the following conditions:

(1) The Board shall deposit money into the fund only in an amount equal to the matching funds deposited by the Society;

(2) The Society shall provide to the advisory committee an annual report describing the fund's investments; and

(3) The Board shall retain the right to dissolve the agreement if the purposes herein are not being accomplished.

(b) The Board may transfer to the Society any amount appropriated by the Texas Legislature to the Board for that purpose.

(c) The Board may accept donations from private individuals or corporations who wish to contribute to the fund.

§13.183.Dissolution of the Fund.

If the Board dissolves the fund, the fund balance shall be distributed in the following manner:

(1) one-half to the general revenue fund of the State of Texas;

(2) remainder to donors to the fund, in the amount the donor deposited; and

(3) any further remainder to the Society.

§13.184.Advisory Committee.

The Commissioner shall appoint an advisory committee of seven (7) persons who have expertise and interest in geography education. The committee shall solicit grant proposals, consider those proposals, and make recommendations to the Society.

§13.185.Procedures for Solicitation and Recommendation of Grant Proposals.

The Committee shall, in cooperation with the Society, establish standards and procedures for soliciting grant proposals, the grant application process, consideration of proposals, committee recommendations to the Society, and awarding of grants.

§13.186.Eligibility.

Public and private and independent institutions of higher education as defined in Texas Education Code, § 61.003 shall be eligible to compete for grants.

§13.187.Reporting.

Not later than December 1 of each even-numbered year, the Commissioner shall report to the Board, the governor and the legislature. The report shall include:

(1) the value of the fund;

(2) the membership of the committee;

(3) a summary of each project supported by a grant from the fund during the preceding two years; and

(4) any other appropriate 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 July 26, 2001.

TRD-200104344

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Chapter 21. STUDENT SERVICES

Subchapter B. DETERMINING RESIDENCE STATUS

19 TAC §§21.21 - 21.43

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

The Texas Higher Education Coordinating Board proposes the repeal of §§21.21 through 21.43, concerning Determining Residence Status. Specifically, the repeal of the rules will provide the basic rules for determining residency, residency during a student's transition from dependent to independent status, procedures, exceptions, and the transition from waiver recipient to resident.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the repeal of the rules is in effect, there will be the following fiscal implications to state or local government as a result of enforcing or administering the rules: . FY2002 - $0; FY2003 - $0; FY2004 - $691,808; FY2005 - $714,948; and FY2006 - $739,232.

Ms. Hollis has also determined that for each year of the first five years the repeal of the rules is in effect, the public benefit anticipated as a result of administering the sections will be that the residency rules will be more understandable and comprehensive, and there will be more consistency in residency determination decisions. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the repeal of the rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P.O. Box 12788, Austin, Texas 78711.

The repeal of the rules is proposed under the Texas Education Code, §54.053, which states that the governing board of each institution is subject to the residency rules and interpretations issued by the Coordinating Board.

The repeal of the rules affect the Texas Education Code, Chapters 51, 52, 53, 54, 56, 61, 135, and 160.

§21.21.Minors and Dependents.

§21.22.Residence of Independent Individuals 18 Years of Age or Older.

§21.23.Reclassification.

§21.24.Loss of Residence.

§21.25.Re-establishment of Residence.

§21.26.Economic Development and Diversification Employees.

§21.27.Married Students.

§21.28.Military Personnel, Veterans and Commissioned Officers of the Public Health Service.

§21.29.Teachers, Professors and their Dependents.

§21.30.Students Employed as Teaching or Research Assistants.

§21.31.Competitive Scholarship Recipients.

§21.32.Tuition Rates of Individuals From Bordering States or Countries.

§21.33.Foreign Students.

§21.34.Student Responsibilities.

§21.35.Procedures for Reclassification.

§21.36.Penalties.

§21.37.Junior College Tuition Waivers for Ad Valorem Taxpayers.

§21.38.Responsibilities of the Public Institutions of Higher Education.

§21.39.Glossary.

§21.40.Homeless Individual.

§21.41.Students Enrolled in Radiological Sciences.

§21.42.Appeals to the Texas Higher Education Coordinating Board.

§21.43.Students Who Are Beneficiaries of the Texas Tomorrow Fund.

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 July 26, 2001.

TRD-200104346

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


19 TAC §§21.21 - 21.27

The Texas Higher Education Coordinating Board proposes new §§21.21 - 21.27, concerning Determining Residence Status. Specifically, these new rules reorganize and clarify the basic rules for determining residency, residency during a student's transition from dependent to independent status, procedures, exceptions, and the transition from waiver recipient to resident. Additionally, new sections are being proposed to implement the recent legislative changes in residency requirements for foreign students.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, there will be the following fiscal implications to state or local government as a result of enforcing or administering the rules: . FY2002 - $0; FY2003 - $0; FY2004 - $691,808; FY2005 - $714,948; and FY2006 - $739,232.

Ms. Hollis has also determined that for each year of the first five years these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be that the residency rules will be more understandable and comprehensive, and there will be more consistency in residency determination decisions. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §54.053, which states that the governing board of each institution is subject to the residency rules and interpretations issued by the Coordinating Board.

The new rules affect the Texas Education Code, Chapters 51, 52, 53, 54, 56, 61, 135, and 160.

§21.21.Authority, Scope, and Purpose.

(a) Authority. Texas Education Code, §54.053 states that the governing board of each institution is subject to the rules and interpretations issued by the Coordinating Board.

(b) Scope. The rules set forth in this subchapter are applicable to determining residency for students attending any Texas public institution of higher education. In addition, they govern the determination of residency for state financial aid programs that include Texas residency as an eligibility criterion.

(c) Purpose. The purpose of this subchapter is to provide guidance to residency determination officials and increase consistency in decisions.

§21.22.Definitions.

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

(1) Bona Fide Texas Resident. See Resident.

(2) Competitive Scholarship. A scholarship that is publicized in the school's catalog and open to both residents and nonresidents, that is designated as competitive by the institution, and whose sum either singularly or in combination with other competitive scholarships totals enough to be a basis for the waiver of nonresident tuition charges.

(3) Conclusive Evidence. Proof that removes uncertainties. In the case of proving residency, conclusive evidence may include but is not limited to the purchase of a homestead with substantial down-payment, significant employment, and business or personal ties in the state that imply a fixed intent to remain in Texas.

(4) Dependent. An individual (minor or 18 years of age or older) who will be claimed as a dependent for federal income tax purposes by a parent or court-appointed legal guardian the year of enrollment and was claimed in the tax year prior to enrollment.

(5) Domicile in Texas. Physically residing in Texas for at least 12 consecutive months with the intent to make Texas one's permanent home. The burden of proof that a domicile has been established lies with the student.

(A) Documenting 12 Months. Among the documents that may be used to prove 12 months' presence in Texas are:

(i) A Texas high school transcript for the full senior year immediately preceding the full semester enrolled;

(ii) A Texas college or university transcript (in conjunction with other documents from the institution);

(iii) An employer's statement of date of employment;

(iv) A permanent driver's license (at least 1 year old). The license expiration date minus date of enrollment should not exceed three years;

(v) Texas voter registration;

(vi) Lease agreement that includes student's name and period covered;

(vii) Property tax payments for the year preceding enrollment;

(viii) Cancelled checks,

(ix) Utility bills for the year preceding enrollment;

(x) A signed, dated and notarized comprehensive residence questionnaire;

(xi) An income tax form or (if current year federal tax form has not been filed) a signed, notarized statement regarding the student's independence or regarding the individual(s) who claim the student as a dependent;

(xii) A current credit report that documents the student's length and place of residence;

(xiii) Other third party documentation that confirms residency status for the 12-month period preceding enrollment;

(xiv) For a homeless individual, documentation may consist of written statements from the office of one or more legitimate social service agencies located in Texas, attesting to the provision of services to the individual over the previous 12-month period.

(B) Documenting a Domicile. Material to the determination of the establishment of a domicile in Texas are business or personal facts including, but not limited to:

(i) The length of residence and employment prior to enrolling in college;

(ii) The nature of employment while a student;

(iii) Physical presence in Texas as a part of a household transferred to the state by an employer (other than the U.S. Armed Forces or Public Health Service) or as a part of a household moved to the state to accept employment; and

(iv) Purchase of a homestead.

(6) Foreign Students. Individuals from other countries than the United States who are not U.S. citizens or permanent residents of this country and are not permitted by Congress to adopt the United States as their domicile while they are in this country.

(7) Gainful Employment. Lawful activities intended to provide an income to the individual or allow an individual to avoid the expense of paying another person to perform the tasks (as in child care or the maintenance of a home). A person who is self-employed, employed as a homemaker, or who is living off his/her earnings may be considered gainfully employed for tuition purposes, as may an individual whose primary support is the government (for instance, through a public assistance program).

(8) Homeless Individual. A homeless individual as defined by 42 U.S.C. §11302 including,

(A) an individual who lacks a fixed, regular, and adequate nighttime residence; and

(B) an individual who has a primary nighttime residence that is

(i) a supervised publicly or privately operated shelter designed to provide temporary living accommodations;

(ii) an institution that provides temporary residence for individuals intended to be institutionalized; or

(iii) a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings.

(C) See §21.28(b)(5) of this title (relating to Homeless Individual).

(9) Independent Student. A student 18 years of age or older or an emancipated minor who is not claimed by a parent or a legal guardian as a dependent for federal income tax purposes during the tax year including the enrollment period.

(10) Minor. An individual who is 17 years of age or younger.

(11) Nonresident. A citizen, national or permanent resident of the United States or an alien who has been permitted by Congress to adopt the United States as his or her domicile while in this country, who has not met the state requirements for establishing residency for tuition purposes.

(12) Official Census Date. The official reporting date for enrollments; the date upon which the student (by virtue of having obligated him/herself to pay requisite tuition and/or fees) is considered to be enrolled in the institution. (For 16-week semesters, the 12th class day; for 6-week summer sessions, the 4th class day.)

(13) Prior to Enrolling. Prior to and/or including the official census date.

(14) Public Institution of Higher Education. State-supported institutions of higher education, including public community colleges, state colleges, universities, health-related institutions, and technical colleges.

(15) Resident. A citizen, national or permanent resident of the United States or an alien who has been permitted by Congress to adopt the United States as his or her domicile while in this country, who has established a domicile in the state of Texas.

(16) Time of Enrollment. The end of working hours on the official census date for the semester or term for that institution.

(17) U.S. Armed Forces. A person who is an officer, enlisted person, selectee, or draftee of the Army, Army Reserve, Air Force, Air Force Reserve, Navy, Navy Reserve, Marine Corps, Marine Corps Reserve, Coast Guard, or Coast Guard Reserves of the United States. Members of the Army and Air National Guard may not qualify for every program directed at members of the U.S. Armed Forces. Where a rule does not explicitly include them, members of the Army or Air National Guard, or spouses or dependents of those members, should present documentation from an appropriately authorized officer that indicates that the individual was acting as a component of the Army or Air Force for the relevant time period.

§21.23.Basic Rules.

(a) Minors and Dependents. For a dependent or minor to acquire Texas residency through a parent or court-appointed legal guardian, the parent or legal guardian must meet residency requirements for individuals 18 years of age or older and the dependent or minor must be eligible to domicile in the United States. Residency of an eligible dependent or minor is based on one of the following circumstances:

(1) The residence of the parent who has claimed the dependent for federal income tax purposes both at the time of enrollment and for the tax year preceding enrollment; or

(2) The residence of the parent or court-appointed legal guardian with whom the dependent or minor has physically resided for the 12 months prior to enrollment; or

(3) The residence of a parent or legal guardian who has joint or single custody of the child, if that individual is not delinquent on the payment of child support; or

(4) The residence of the person to whom custody was granted by court order (e.g., divorce decree, child custody actions, guardianship or adoption proceedings), provided custody was granted at least 12 months prior to the student's enrollment and was not granted for the purpose of obtaining status as a resident student.

(5) If a student was classified as a resident prior to fall semester 2001 based upon the residency of a caretaker or relative, not a court-appointed legal guardian, he or she shall not be reclassified as a nonresident under this section.

(6) See §21.26(a) of this title (relating to Exceptions).

(b) Independent Individuals 18 or Older. Independent individuals 18 years of age or older who are gainfully employed in the state for a period of 12 months prior to enrollment are entitled to classification as residents. Students registering in an institution of higher education prior to having physically resided in the state for the 12 months prior to enrollment shall be classified as nonresidents for tuition purposes during that term. Accumulations of summer and other vacation periods do not satisfy the employment requirement. Employment while enrolled in college during a 12-month period can be a basis of reclassification as a resident at the end of that period if other evidence indicates the student has established a domicile in Texas. See §21.26(b) of this title (relating to Exceptions).

(c) Military Personnel. Members of the U.S. Armed Forces and commissioned Public Health Service Officers are presumed to maintain the same domicile that was in effect at the time of entering the service during their entire period of active service. They are presumed not to establish a domicile in other states in which they are assigned duty because their presence is not voluntary but under U.S. military or Public Health Service orders. See §21.26(c) of this title (relating to Exceptions).

(d) Foreign Students.

(1) A foreign individual has the same privilege of qualifying for Texas resident status for tuition purposes as does a citizen of the United States if he or she

(A) is living in this country under a visa permitting permanent residence, or

(B) is permitted by Congress to adopt the United States as his or her domicile, or

(C) has applied to or has a petition pending with the Immigration and Naturalization Service to attain lawful status under federal immigration law, or

(D) has met Coordinating Board requirements for being treated as a permanent resident.

(2) A foreign individual who enters a Texas institution of higher education in fall 2001 or later is a resident of Texas if he or she

(A) attended a public or private high school while residing with a parent or legal guardian;

(B) graduated from the high school or received the equivalent of a high school degree in Texas;

(C) resided in Texas for at least three (3) consecutive years as of the date he/she graduated from high school or received the equivalent of a high school degree;

(D) registers as an entering student no earlier than fall 2001; and

(E) provides his/her college an affidavit that he or she intends to file an application to become a permanent resident of the United States at the earliest opportunity the individual is eligible to do so.

(3) A list of eligible visas, along with a discussion of eligible applicants for permanent resident status, is available through the Coordinating Board web site at www.thecb.state.tx.us. If an individual provides proof from the Department of Justice or Immigration and Naturalization Service that the visa he/she holds has been granted eligibility to establish a domicile in the United States, such individuals may be granted the same privileges in establishing Texas residency for tuition purposes.

(e) Married Students. Marriage of a Texas resident to a nonresident does not jeopardize the Texas resident's claim to residency. A nonresident who marries a resident of Texas must establish his or her own residency by meeting the standard requirements of an independent individual 18 years of age or older.

(f) Federal employees other than Members of the U.S. Armed Forces or Public Health Service. The state has no special provisions for determining the residence of federal employees other than members of the U.S. Armed Forces or Public Health Service. Therefore, such persons (including civilian employees of the U.S. Armed Forces) must meet the basic residency requirements for non-military personnel.

(g) Short-Term Stop-Out Students. If the institution has documentation of residence on file when a dependent or independent student returns after being out of school for 12 months or less, it may continue the student's classification as resident upon confirmation from the student that his or her parents or court-appointed legal guardians (in the case of a dependent student) or the student him/herself (in the case of an independent student) have not changed their state of residence since the student's last enrollment.

(h) Persons Temporarily Absent from the State. Residents who move out of state should be classified as nonresidents upon leaving the state, unless their move is temporary and residence has not been established elsewhere.

(1) Persons who were residents of Texas for at least five years prior to moving from the state, and who return to the state to re-establish their home, having been gone less than a year, are still Texas residents.

(2) Students or parents or court-appointed legal guardians (in the case of dependent students) who are temporarily (generally less than five years) assigned to work outside the state may continue to claim residency in Texas if they provide conclusive evidence of their intent at the time they leave the state, to return. Among other things, a letter from an employer that the move outside the state is temporary and that a definite future date has been determined for return to Texas may qualify as proof of the temporary nature of the time spent out of state. Out-of-state internships that are part of the academic curriculum and that require the student to return to the school are temporary relocations and do not jeopardize a student's claim to residency.

(i) Inmates of Federal Prisons. Nonresidents incarcerated in federal prisons located in Texas shall be classified as nonresidents. If, however, such a prisoner files an affidavit with a proper prison authority or institution of higher education, indicating an intention to establish residency in Texas, such residency shall be granted 12 months from the date of the affidavit and shall continue after the prisoner's discharge if he or she remains in Texas.

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

(a) When Parents or Legal Guardians and Student Remain in Texas. If the resident parents or court-appointed legal guardians of a dependent student eligible to domicile in the United States cease claiming the minor as a dependent for federal income tax purposes, but remain in Texas and the minor remains in Texas, the minor is a resident.

(b) When the Parents Move Out of State.

(1) If the Parents or Legal Guardians Continue to Claim the Student as a Dependent. If the resident parents or court-appointed legal guardians of a dependent student move out of state and continue to claim the student as a dependent, the student becomes a resident of the state in which the parents or legal guardians reside. Even if he or she remains in Texas, the student will not be eligible to establish residence in Texas on his/her own until the student is 18 years of age or older, at least 12 months have passed since the parents last claimed him/her as a dependent for federal income tax purposes and the student has established a domicile in the state of Texas. See §21.28(a)(5) of this title (relating to Exceptions) for information about a waiver for students enrolled in a public college prior to the parents' or legal guardians' move out of state.

(2) If the Minor is an Abandoned or Emancipated Child. If the resident parents or court-appointed legal guardians of a minor move out of state and the minor remains in Texas, the minor may be classified as a resident only if he or she meets the qualifications for being an abandoned child or emancipated child. See §§21.28(a)(1) and 21.28(a)(3) of this title (relating to Exceptions).

(c) If the resident parents or court-appointed legal guardians of an individual 18 years of age or older move out of state but the student remains, and the parents provide the student's institution of higher education a letter indicating they will not claim the student as a dependent for federal tax purposes for the current tax year, the student retains his/her residency.

§21.25.Procedures.

(a) Core Questions. Each public institution is responsible for incorporating core residency questions into its student admissions process. The Coordinating Board, with advice from the institutions, shall develop the required core questions. Answers to the questions should be reviewed to determine each student's proper residency classification. If answers affirm the student's claim to residency, the core questions are sufficient for documenting the student's classification. However, if the student's answers to the core questions are inconsistent, the institution must acquire and maintain appropriate documents to support the student's classification as of the census date of the relevant term.

(b) Reclassification.

(1) Procedures. Students classified as nonresident students shall be considered to retain that status until they apply for reclassification in the form prescribed by the institution and are officially reclassified as residents for tuition purposes by the proper administrative officers of the institution. Application for reclassification must be submitted prior to the official census date of the relevant term. Reclassification as residents must be made in keeping with §21.25 of this title (relating to Basic Rules).

(2) Student Intent. If a student's residence in Texas is primarily for the purpose of education and not to establish a domicile, the student shall be classified as a nonresident. The following persons are NOT considered to have come here for the purpose of education: the spouse or dependent child of an individual transferred here by the U.S. Armed Forces, through the state's plan for economic development and diversification, or as a part of a household moved to the state to accept employment. Therefore, once such individuals have physically resided in Texas for 12 consecutive months, even though they may have been enrolled full-time, they may be considered residents if they have otherwise established a domicile in the state.

(c) Student Responsibilities. The student is responsible for registering under the proper residence classification and for providing documentation as required by the public institution. If there is any question as to the right to classification as a resident of Texas it is the student's obligation, prior to or at the time of enrollment, to raise the question with the administrative officials of the institution for official determination. Students classified as Texas residents must affirm the correctness of that classification by signing an oath of residency as a part of the admissions process. If the student's classification as a resident becomes inappropriate for any reason, it is the responsibility of the student to notify the proper administrative officials at the institution. Failure to notify the institution constitutes a violation of the oath of residency and shall result in disciplinary action by the institution.

(d) Institution Responsibilities. Each institution is responsible for incorporating the core questions and an oath of residency into its student admissions process. It is also responsible for reviewing enrollment and/or registration applications for errors, inconsistencies or misclassifications of residency status on file.

(1) If students who have been classified as residents of Texas are found to have been erroneously classified, those students shall be reclassified as nonresidents and shall be required to pay the difference between the resident and nonresident tuition for those semesters in which they were so erroneously classified.

(2) If it is found that students have been erroneously classified as nonresidents, they shall be reclassified as residents and may be entitled to a refund of the difference between the resident and nonresident fees for the semesters in which they were so erroneously classified. Normally, the refunds must be requested and substantiated during the current term.

(e) Penalties. Each institution has been authorized by statute to assess and collect from nonresident students failing to comply with the provisions of tuition statutes and the rules of this title a fee not to exceed $10 a semester.

(1) If students have obtained residence classification by concealing or misrepresenting facts, they may be subject to disciplinary action in keeping with procedures adopted by the governing boards of their institutions.

(2) If it is determined that the student has obtained resident classification by concealing or misrepresenting information, the student shall, not later than 30 days after the date the individual is notified of the determination, pay to the institution the amount the individual should have paid as a nonresident.

(3) If the individual fails to make a timely payment as required, the individual is not entitled to receive a transcript or to receive credit for courses taken during the time the individual was falsely registered as a resident student.

(f) Appeals to the Coordinating Board. If two or more Texas public institutions determine a different residency status for members of the same family with identical evidence of residency currently enrolled at each institution, the family members may appeal the unfavorable decision to the Commissioner of Higher Education. Before making an appeal to the Commissioner, the student classified as a nonresident must exhaust all appeal processes available at the institutional level. A decision by the Commissioner for one family member's residency status will apply to all family members with identical evidence of residency.

§21.26.Exceptions.

(a) Special Conditions for Minors or Dependents.

(1) Abandoned child. In the case of an abandoned child, the residence of a person who has stood in loco parentis for a period of time may determine the residence. The fact of abandonment must be clearly established and must not have been for the purpose of effecting the residence of the minor. The minor must have actually resided in the home of such person for two years immediately prior to enrolling in a Texas public institution of higher education and such person must have provided substantially all the minor's support. In the event that the in loco parentis relationship has not existed for the full two year period, a shorter period of time is acceptable in unusual hardship cases, such as death of both parents.

(2) Orphans. A public institution of higher education shall classify orphans as residents if the orphans graduated from established orphans homes in Texas operated by a fraternal, religious or civic organization after living there for at least a year, and resided in Texas from the time they graduated from the home until they enrolled in the institution.

(3) Emancipated Minors. A minor who has been legally emancipated may establish his or her claim to residency following the rules applicable to independent individuals 18 years of age or older.

(4) Married Minors. Minors who are married may establish their own claim to residency following the rules applicable to independent individuals 18 years of age or older.

(5) Minors or Dependents Enrolled before the Parents Move out of State. If a resident minor or dependent is enrolled in a public institution of higher education in Texas when the parents move out of state, the minor or dependent is eligible, although now a nonresident, to continue paying the resident tuition rate as long as he or she continues to enroll in Texas public institutions in the following fall and spring semesters. Vacation time spent with the parents does not jeopardize the students' eligibility for this waiver. The dependent or minor students must enroll for the next available fall or spring semester immediately following the parents' change of residence to another state.

(b) Waivers that Allow Nonresidents to Register While Paying the Resident Tuition Rate.

(1) Economic Development and Diversification. Nonresidents, (including citizens and permanent residents of the US and foreign students eligible to domicile in the United States, but excluding foreign students ineligible to domicile in the U.S.) whose families have been transferred to Texas by a company in keeping with the state's Economic Development and Diversification Program are entitled (although still nonresidents) to pay the resident tuition rate as soon as they move to Texas if they provide the college a letter of intent to establish Texas as their home. If a semester begins before the rest of the family moves to the state, the student may register and pay the resident tuition rate if he/she provides the college a letter from the company, indicating the family will move to Texas prior to the end of the given semester. However, in order to pay resident tuition for a second semester, the student will have to give the college a letter from the company, indicating the family has, indeed, moved to Texas. After the family has resided in Texas 12 months, the student is eligible to apply for reclassification as a resident. A current list of eligible companies is maintained on the Coordinating Board web site at www.collegefortexans.com.

(2) Teachers, Professors, their Spouses and Dependents. Nonresidents (including citizens and permanent residents of the U.S. and all foreign students) employed as teachers and professors at least half time on a regular monthly salary basis (not as hourly employees)by public institutions of higher education in Texas are entitled to pay the resident tuition rate at any public institution of higher education in the state for themselves, their spouses and children regardless of how long they have lived in the state. It is the intent of this rule that the employment and waiver last for the same period of time. If the spouse or children attend an institution other than the one employing the teacher or professor, they must provide proof of his or her current employment to the college they attend.

(3) Research and Teaching Assistants, their Spouses and Dependents. Nonresidents (including citizens and permanent residents of the U.S. and all foreign students) employed by public institutions of higher education as research or teaching assistants on at least a half-time basis in a position related to their degree programs are entitled to pay the resident tuition rate at any public institution of higher education in the state for themselves, their spouses and children regardless of how long they have lived in the state. The institutions that employ the students shall determine whether or not the students' jobs relate to their degree programs. It is the intent of this rule that the employment and waiver last for the same period of time. If the spouse or children attend an institution other than the one employing the research or teaching assistant, they must provide proof of his or her current employment to the college they attend.

(4) Competitive Scholarship Recipients.

(A) Nonresidents (including citizens and permanent residents of the U.S. and all foreign students) who receive eligible competitive scholarships from their institutions totaling at least $1,000 may be granted a waiver of nonresident tuition for the period of time covered by the scholarship, not to exceed 12 months.

(B) To be eligible as the basis of a waiver, the scholarship(s) must meet the following criteria:

(i) be granted by a scholarship committee authorized in writing by the institution's administration to grant scholarships that hold the waiver option;

(ii) be granted in keeping with criteria published in the institution's catalog, available to the public in advance of any application deadline;

(iii) be granted under circumstances that cause both the funds and the selection process to be under the control of the institution;

(iv) be open to both resident and nonresident students.

(C) A waiver based on a competitive scholarship lasts for the period of the scholarship (up to a 12-month period). The scholarship award must specify the term or terms in which the scholarship will be in effect. If the scholarship is terminated, so is the waiver. If the scholarship is to be issued in multiple disbursements and less than $1,000 is issued when a scholarship is terminated, the student does not owe a refund for the tuition that has been waived, since the waiver was originally made in a good faith expectation of a scholarship of at least $1,000, but the waiver is canceled for the terms for which the scholarship is canceled.

(D) The total number of students receiving waivers on the basis of competitive scholarships in any given term may not exceed 5 percent of the students enrolled in the same semester in the prior year.

(E) If the scholarship recipient is concurrently enrolled at more than one institution, the waiver of nonresident tuition is only effective at the institution awarding the scholarship. An exception for this rule exists for a nonresident student who is simultaneously enrolled in two or more institutions of higher education under a program offered jointly by the institutions under a partnership agreement. If one of the partnership schools awards the student a competitive scholarship-based waiver, the student is also entitled to a waiver at the second institution.

(F) If a nonresident or foreign student holds a competitive academic scholarship or stipend and is accepted in a clinical biomedical research training program designed to lead to both a doctor of medicine and doctor of philosophy degree, he or she is eligible to pay the resident tuition rate.

(5) Homeless Individuals. A homeless individual who resides in Texas for the 12-month period immediately preceding the date of registration, but who does not have a permanent residence in Texas, may enroll in vocational education courses at a public junior college by paying the resident tuition rate. Documentation for a homeless individual may consist of written statements from the office of one or more legitimate social service agencies located in Texas, attesting to the provision of services to the homeless individual over the previous 12-month period.

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

(A) Based on Reciprocity. Waivers of nonresident tuition made through each of the following three programs for students from states neighboring Texas must be based on reciprocity. In other words, the Texas institution cannot lower tuition for in-coming students unless it has on file a current written agreement with a similar school in the other state, to lower tuition for Texas students attending there. A participating Texas institution is required to file a copy of such agreements with the Coordinating Board. To be valid, the agreements may not be more than 2 years old. The amount charged in-coming nonresident students through these programs may not be less than the Texas resident tuition rate.

(i) New Mexico, Oklahoma, Arkansas or Louisiana students may pay a lowered nonresident tuition when they attend Texas A&M -Texarkana, Lamar-Port Arthur, Lamar-Orange or any public community or technical college located in a county adjacent to their home state, if the institution they attend has a current reciprocal agreement with a similar institution in the student's home state.

(ii) New Mexico and Oklahoma students may pay a lowered nonresident tuition when they attend a public technical college located within 100 miles of the border of their home state, if the institution they attend has a current reciprocal agreement with a similar institution in the student's home state.

(iii) Students from counties or parishes of New Mexico, Oklahoma, Arkansas or Louisiana adjacent to Texas may pay a lowered nonresident tuition when they attend any public institution in Texas, if the institution has a current reciprocal agreement with a similar institution in the student's home state.

(iv) Students who Move to Texas from Bordering States. If a dependent student's family or an independent student from a bordering state moves to Texas after the student has received a waiver of nonresident tuition based on reciprocity as described in this section, the student is eligible for a continued waiver for the 12-month period after the relocation to Texas. After that time, however, the student shall be reclassified as a nonresident unless he or she applies for reclassification and proves he or she has become a resident in keeping with these rules.

(B) Programs that do not Require Reciprocity.

(i) Undergraduate students from New Mexico, Oklahoma, Arkansas, Louisiana or other states within 135 miles of the Texas border may pay a lowered nonresident tuition when they attend a public university located within 100 miles of the Texas border if the Coordinating Board has approved the institution to participate in the program.

(ii) New Mexico, Oklahoma, Arkansas or Louisiana students who have graduated or completed 45 semester credit hours while enrolled on a reciprocal basis through Texarkana College may pay the resident tuition rate if they attend Texas A&M-Texarkana.

(C) Programs for Residents of Mexico.

(i) Residents of Mexico are those individuals who currently live in Mexico and individuals who are living outside of Mexico temporarily and with definite plans to return. Students planning to stay in the United States indefinitely are not residents of Mexico.

(ii) An unlimited number of residents of Mexico who have financial need may attend a public university or TSTC campus located in a county adjacent to Mexico, TAMU-Corpus Christi, TAMU-Kingsville, the University of Texas at San Antonio or Texas Southmost College while paying the resident tuition rate.

(iii) A limited number of residents of Mexico who have financial need may attend a public university located in counties away from the Mexico border while paying the resident tuition rate. The program is limited to the greater of two students per 1000 enrollment, or 10 students.

(iv) A resident of Mexico with financial need may register in courses that are part of a graduate degree program in public health conducted in a county immediately adjacent to Mexico and pay the resident tuition rate.

(7) Beneficiaries of the Texas Tomorrow Fund. The tuition and required fees charged by an institution of higher education for semester hours and fees that are paid for by a prepaid tuition contract shall be determined as if the beneficiary of that contract is a resident student. If a student is a nonresident, any tuition and fees not paid by the contract will be assessed at the nonresident rate.

(8) Inmates of the Texas Department of Criminal Justice. All inmates of the Texas Department of Criminal Justice are Texas residents for tuition purposes only.

(9) Foreign Service Officers. A foreign service officer employed by the U.S. Department of State and enrolled in an institution of higher education is entitled to pay resident tuition and fees if the person is assigned to an office of the department of state that is located in Mexico.

(10) Registered Nurses in Postgraduate Nursing Degree Programs. An institution of higher education may permit a registered nurse authorized to practice professional nursing in Texas to register by paying resident tuition and fees without regard to the length of time the registered nurse has resided in Texas if he/she

(A) is enrolled in a program designed to lead to a master's degree or other higher degree in nursing; and

(B) intends to teach in a program in Texas designed to prepare students for licensure as registered nurses.

(11) Members of the U.S. Armed Forces, Army National Guard, Air National Guard, and Commissioned Officers of the Public Health Service.

(A) Assigned to Duty in Texas. Nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, or Commissioned Officers of the Public Health Service who are assigned to duty in Texas are entitled to pay the resident tuition rate for themselves, their spouses and dependent children. To qualify, the student must submit at least once a year a statement from an appropriately authorized officer in the service, certifying that he or she (or a parent or court-appointed legal guardian) will be assigned to duty in Texas at the time of enrollment and is not a member of the National Guard or Reserves who will be in Texas only to attend training with Texas units.

(B) First Assignment after Texas. The spouses and dependent children of nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, or Commissioned Officers of the Public Health Service are entitled to pay the resident tuition rate during the members' first assignment after duty in Texas. To qualify, the spouse and children must reside continuously in Texas.

(C) Out-of-State Military. The spouse and dependents of nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, or Commissioned Officers of the Public Health Service stationed outside of Texas are entitled to immediately start paying the resident tuition rate in Texas if they move to this state, [ and ] file a statement of intent to become permanent residents of Texas with the public institution of higher education they attend.

(D) Survivors. The spouse and dependents of nonresident members of the U.S. Armed Forces, members of Texas units of the Army or Air National Guard, or Commissioned Officers of the Public Health Service who die while in service are entitled to pay the resident tuition rate if they move to Texas within 60 days of the date of death. To qualify, the students shall submit satisfactory evidence to the institution, establishing the date of death and current residence in Texas.

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

(i) filed proper documentation with the military or Public Health Service to change his/her permanent residence to Texas and designates Texas as his/her place of legal residence for income tax purposes;

(ii) registered to vote in Texas, and

(iii) shows one of the following three things has been in effect for the full 12 months prior to the first day of the relevant term or semester:

(I) ownership of real estate in Texas with no delinquent property taxes;

(II) registration of an automobile in Texas, or

(III) execution of a currently-valid will that indicates he/she is a resident of Texas that has been deposited with a county clerk in Texas.

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

(i) files proper documentation with the military to change his/her permanent residence to Texas, and

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

(I) purchase a residence in Texas and claim it as a homestead;

(II) register to vote in Texas;

(III) register an automobile in Texas;

(IV) maintain a Texas driver's license;

(V) maintain checking, savings or safety deposit box in Texas;

(VI) have a will or other legal documents on file in Texas that indicate residence in Texas;

(VII) have membership in professional organizations or other state organizations; and/or

(VIII) establish a business in Texas.

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

(i) filed proper documentation with the military or Public Health Service to change his/her permanent residence to Texas and designated Texas as his/her place of legal residence for income tax purposes;

(ii) registered to vote in Texas, and

(iii) shows one of the following three things has been in effect for the full 12 months prior to the first day of the relevant term or semester:

(I) ownership of real estate in Texas with no delinquent property taxes;

(II) registration of an automobile in Texas, or

(III) execution of a currently-valid will that indicates he/she is a resident of Texas that has been deposited with a county clerk in Texas.

(H) ROTC Students. A nonresident student who is a member of an ROTC unit must pay nonresident tuition until such time he or she signs a contract that cannot be terminated by the student and that obligates the student to serve a period of active duty in the U.S. Armed Forces. Once the student has signed such a contract, he or she has the same rights for qualifying to pay the resident rate as has a member of the U.S. Armed Forces.

(I) NATO Forces. Foreign individuals stationed in Texas in keeping with the agreement between the parties to the North Atlantic Treaty regarding status of forces, their spouses and dependent children, are entitled to pay the same tuition rate as residents of Texas.

(J) Radiological Science Students at Midwestern State University. Members of the U.S. Armed Forces stationed outside the State of Texas who are enrolled in a bachelor of science or master of science degree program in radiological sciences at Midwestern State University by instructional telecommunication will be entitled to pay tuition and other fees or charges provided for Texas residents if they began the program of study while stationed at a military base in Texas.

§21.27.Transition from Waiver Recipient to Resident.

Some nonresident students who pay the resident tuition rate as a result of waivers can acquire the right to be reclassified as residents. To do so, they must be U.S. citizens, or permanent residents, or foreign individuals eligible to domicile in the United States, or fall in a category identified as the Coordinating Board as eligible to be treated as permanent residents. See §21.23(d) of this title (relating to Basic Rules). In addition, they must follow the procedures for reclassification as outlined in §21.25(b) of this title (relating to Procedures), and show that they currently meet the requirements for classification as a resident.

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

Filed with the Office of the Secretary of State, on July 26, 2001.

TRD-200104345

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Subchapter C. HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM FOR ALL LOANS WHICH ARE SUBJECT TO THE PROVISIONS OF THE FEDERAL FAMILY EDUCATION LOAN PROGRAM, THE COLLEGE ACCESS LOAN PROGRAM, THE HEALTH EDUCATION ASSISTANCE LOAN PROGRAM, AND THE HEALTH EDUCATION LOAN PROGRAM

19 TAC §21.57

The Texas Higher Education Coordinating Board proposes amendments to §21.57 concerning the Hinson-Hazlewood College Student Loan Program. Specifically, the amendment would delete the requirement that College Access Loans be disbursed in a minimum of two equal disbursements.

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

Ms. Hollis has also determined that for each year of the first five years these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be the increased flexibility that institutions of higher education will have in disbursing College Access Loans. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed amendments to the rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The amendments to the rules are proposed under the Texas Education Code, Chapter 52, which provides the Coordinating Board with the authority to administer the student loan program authorized by this chapter pursuant to Article III, §§50b-1, 50b-2, 50b-3, and 50b-4, of the Texas Constitution.

The amendments to the rules affect the Texas Education Code, Chapter 52.

§21.57.Loan Limits.

(a) (No change.)

(b) Annual Loan Limit. The maximum loan amounts allowed for any qualified applicant during an academic year is stated in paragraphs (1) - (5) of this subsection for each type of Hinson-Hazlewood loan. Under no circumstances may the annual loan amount for the FSL and FSLS exceed the amounts prorated for less than full-time enrollment specified in Title IV, Part B, of the Higher Education Act of 1965 as amended. When the student progresses satisfactorily to the next classification level, that student may be eligible for another FSL, FSLS, or CAL.

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

(3) CAL - The annual loan limit may not exceed $7,500 per academic year. [ Annual loan amounts must be disbursed in a minimum of two disbursements. Each disbursement is not to exceed one half of the total loan amount unless at least one half of the loan period has elapsed. ] The amount of a CAL plus other student financial aid may not exceed the cost of education.

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

(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 July 26, 2001.

TRD-200104347

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Subchapter N. TEACH FOR TEXAS CONDITIONAL GRANT PROGRAM

19 TAC §§21.430 - 21.449

(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 §§21.430 through 21.449, concerning the Teach for Texas Conditional Grant Program. Specifically, the repeal of the rules will provide for setting priorities for approving applications, set requirements for eligible institutions and eligible students, define the eligibility period and service obligation, set requirements for hardship and other good causes, and define the amount of a grant and conditions for receiving a grant.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the proposed repeal of the rules are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of this program for Fiscal Year 2002 and Fiscal Year 2003 is estimated to be $2.5 million. For Fiscal Year 2004 through Fiscal Year 2006, the fiscal impact is estimated to be $2.5 million.

Ms. Hollis has also determined that for each year of the first five years the repeal of the rules are in effect, the public benefit anticipated as a result of administering the sections will be an increased number of teachers who become certified and teach in fields or communities having a critical shortage of teachers. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the repeal of the rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The repeal of the rules is proposed under the Texas Education Code, §56.352, which provides the Coordinating Board with the authority to award conditional grants to persons who serve as classroom teachers in the public schools of this state for a specified period.

The repealed rules affect the Texas Education Code, §§56.351 through 56.356.

§21.430.Purpose.

§21.431.Definitions.

§21.432.Priorities of Application Acceptance and Selection Criteria.

§21.433.Approved Institution.

§21.434.Eligible Students.

§21.435.Six-Year Eligibility Period.

§21.436.Hardship and Other Good Cause.

§21.437.Reduced Enrollment.

§21.438.Amount of Grant.

§21.439.Eighteen-Month Period Before Employment.

§21.440.Service Obligation Period.

§21.441.Conditions of Grant.

§21.442.Loan Interest.

§21.443.Repayment of Loans.

§21.444.Educational Deferments.

§21.445.Forbearance.

§21.446.Enforcement of Collection.

§21.447.Provisions for Disability and Death.

§21.448.Advisory Committee.

§21.449.Dissemination of 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 July 26, 2001.

TRD-200104349

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


19 TAC §§21.430 - 21.448

The Texas Higher Education Coordinating Board proposes new §§21.430 through 21.448, concerning the Teach for Texas Conditional Grant Program. Specifically, the new rules will provide for setting priorities for approving applications, set requirements for eligible institutions and eligible students, define the eligibility period and service obligation, set requirements for hardship and other good causes, and define the amount of a grant and conditions for receiving a grant.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of this program for Fiscal Year 2002 and Fiscal Year 2003 is estimated to be $2.5 million. For Fiscal Year 2004 through Fiscal Year 2006, the fiscal impact is estimated to be $2.5 million.

Ms. Hollis has also determined that for each year of the first five years these proposed rules are in effect, the public benefit anticipated as a result of administering the sections will be an increased number of teachers who become certified and teach in fields or communities having a critical shortage of teachers. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §56.352, which provides the Coordinating Board with the authority to award conditional grants to persons who serve as classroom teachers in the public schools of this state for a specified period.

The new rules affect the Texas Education Code, §§56.351 through 56.356.

§21.430.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Teach for Texas Financial Assistance Program. These rules establish procedures to administer the subchapter as prescribed in §§56.351 through 56.356.

(b) Scope. The rules set forth in this subchapter are applicable to the persons with financial need who are seeking educator certification.

(c) Purpose. The purpose of the Teach for Texas Conditional Grant Program is to encourage students to become teachers and to encourage these newly certified teachers to teach in fields having a critical shortage of teachers or in communities having a critical shortage of teachers.

§21.431.Definitions.

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

(1) Academic period -- A twelve-month period designated by an eligible institution.

(2) Board -- The Texas Higher Education Coordinating Board.

(3) Commissioner -- The Commissioner of Higher Education, the Chief Executive Officer of the Board.

(4) Community experiencing a critical shortage of teachers -- As defined by the Commissioner of Education.

(5) Eligible Institution -- Institutions of higher education and private or independent institutions of higher education, as defined in the Texas Education Code, Chapter 61.003, that offer an educator certification program (not applicable in the case of alternative educator certification programs).

(6) Enrolled for at least a three-quarter time -- For undergraduates, enrolled for the equivalent of nine semester credit hours in a regular semester.

(7) Enrolled at least half time -- For undergraduates, enrolled for the equivalent of six semester credit hours in a regular semester.

(8) Program -- The Teach for Texas Conditional Grant Program.

(9) Recipient -- A person who has received a Teach for Texas Conditional Grant.

(10) Program Completion Date -- The date the recipient is considered to have completed the requirements of the educator certification program and is eligible to take the appropriate ExCET exam.

(11) Satisfactory Academic Progress -- A student makes satisfactory academic progress toward completion of an educator certification program if he/she completes at least 75% of the semester credit hours attempted in the student's most recent academic year and earns an overall grade point average of at least 2.5 on a four-point scale on coursework previously attempted at institutions of higher education.

§21.432.Priorities of Application Approval.

Applications will be ranked according to the following priorities, in addition to other factors relating to the efficient use of funds furthering the program purpose:

(1) Renewal applicants shall be given priority over first-time applicants.

(2) Applicants who demonstrate the greatest financial need.

(3) Contingent upon available funding, applicants who demonstrate no financial need shall be considered based upon criteria such as earliest anticipated program completion date and residency.

§21.433.Requirements for Eligible Institution.

(a) Each eligible institution shall designate a Teach for Texas Conditional Grant program officer to administer the program. Unless otherwise designated by the chief executive officer, the Director of Student Financial Aid shall serve as program officer. If the day-to-day administration of this program is delegated to a student financial aid officer, the Director of Student Financial Aid must notify the Board and provide the name and telephone number for that person.

(b) All institutions participating in the program described in this subchapter must meet Board reporting requirements for the Teach for Texas Conditional Grant in a timely fashion.

§21.434.Eligible Students.

To be eligible a student must:

(1) be seeking educator certification and agree to teach full-time at the preschool, primary, or secondary level in a public school in Texas:

(A) in a teaching field certified by the Commissioner of Education as experiencing a critical shortage of teachers in Texas in the year in which the student receives the grant; or

(B) in a public school in Texas in a community certified by the Commissioner of Education as experiencing a critical shortage of teachers:

(i) in any year in which the person receives a Teach for Texas Conditional Grant; or

(ii) in any subsequent year in which the person fulfills the teaching obligation;

(2) be enrolled at least three-quarter time in an approved institution as a junior, senior, or, in the case of a person who has received a baccalaureate degree be:

(A) a renewal recipient enrolled in post baccalaureate courses required to complete the educator certification program; and

(B) in the first academic year in an educator certification program;

(3) make satisfactory academic progress toward completion of the educator certification program;

(4) be recommended by the dean of the college or school of education at the approved institution; and

(5) not have been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance, as defined by Chapter 481, Health and Safety Code, unless the student has:

(A) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or

(B) been pardoned, had the record of the offense expunged from the person's record, or otherwise has been released from the resulting ineligibility to receive a grant under this subchapter.

§21.435.Three-Year Grant Eligibility Period.

A person may not receive a conditional grant through the program for more than 90 course hours or if more than three years has passed since the first award.

§21.436.Hardship and Other Good Cause.

Hardship and other good cause may be determined by the Board based upon documented circumstances. The Board may request assistance from the program officer at an eligible institution in determining whether or not these circumstances warrant exception to the 90-hour grant eligibility limitation, the satisfactory academic progress requirements, the requirement to be enrolled at least three-quarter time, and the requirement to fulfill the five-year service obligation within a six-year period. Such situations include, but are not limited to, the following:

(1) a severe illness or other debilitating condition that may affect the recipient's ability to make satisfactory academic progress in the baccalaureate or educator certification program;

(2) responsibility for the care of a temporarily disabled dependent that may affect the recipient's ability to make satisfactory academic progress in the baccalaureate or educator certification program; or

(3) similar circumstances preventing the recipient from completing the five-year teaching obligation within six years after the date the person began to fulfill the teaching obligation.

§21.437.Amount of Grant.

(a) The maximum aggregate amount of a Teach for Texas Conditional Grant shall equal four times the current annual amount of the TEXAS Grant for a student enrolled at Texas public four-year institution of higher education. A student may receive a TEXAS Grant and a Teach for Texas Grant for the same academic period.

(b) The Coordinating Board shall pay the amount of the grant in installments based on the number of remaining semesters the student anticipates being enrolled in the educator certification program. The Coordinating Board may adjust the amount of a grant for a semester or term, or award a supplemental grant, to ensure that a grant recipient who meets the program requirements receives the maximum aggregate grant amount allowed.

§21.438.Eighteen-Month Period Before Employment.

The recipient must become certified to teach in Texas and must begin fulfilling the five-year service obligation not later than 18 months after the certification program completion date.

§21.439.Service Obligation Period.

(a) A recipient must teach full-time for five years as:

(1) a teacher certified in and teaching in a field having a critical shortage of teachers; or

(2) a certified teacher in a community experiencing a critical shortage of teachers.

(b) A recipient must complete a five-year service obligation.

(c) The service obligation period begins on the first day the recipient begins qualified employment.

(d) During the service obligation period, the recipient shall provide the Board with regular, periodic reports of his or her teaching status.

§21.440.Conditions of Grant.

(a) The Teach for Texas Conditional Grant becomes a loan and shall be reported to credit reporting agencies when the recipient fails to:

(1) remain enrolled at least half-time in an eligible educator certification program;

(2) make satisfactory academic progress in the educator certification program;

(3) complete the educator certification program within the three-year grant eligibility period;

(4) be certified as a teacher within eighteen months after the program completion date;

(5) begin the service obligation within eighteen months after the program completion date;

(6) maintain continuous full-time teaching and complete the five-year teaching obligation within six years of beginning the service obligation period; or

(7) provide a regular, periodic report of enrollment or employment status and location to the Board within a reasonable period of time as determined by the Board.

(b) Recipients must sign a promissory note acknowledging the conditional nature of the grant and promising to repay the outstanding principal, interest, and reasonable collection costs, if the grant conditions are not fulfilled.

§21.441.Loan Interest.

(a) The interest rate charged on Teach for Texas Conditional Grants shall be determined by the Commissioner and shall be a fixed, simple interest rate.

(b) Interest begins to accrue upon the date the grant becomes a loan or the program completion date, whichever is earlier.

(c) Interest does not accrue during of periods of educational deferment.

§21.442.Repayment of Loans.

(a) The Teach for Texas Conditional Grant shall be repaid in installments over a period of not more than ten years from the date the grant becomes a loan.

(b) A recipient shall begin making payments within sixty days of the date on which the Teach for Texas Conditional Grant becomes a loan.

(c) The repayment amount shall be based upon the proportion of the remaining unfulfilled service obligation.

(d) The minimum repayment amount is $1,200 annually or an amount required to repay the loan within 10 years, whichever is greater.

§21.443.Educational Deferments.

Deferments apply only to qualified recipients during periods of eligible enrollment during the six-year eligibility period.

§21.444.Forbearance.

Periods of forbearance may be granted to recipients of Teach for Texas Conditional Grants in repayment under certain documented circumstances as determined by the Board. Periods of forbearance shall extend the ten-year repayment period.

§21.445.Enforcement of Collection.

(a) When a recipient of a Teach for Texas Conditional Grant shall have failed to make six monthly payments in accordance with the promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The recipient's name and last known address and other information as requested by the Commissioner shall be reported to the Attorney General or any county or district attorney acting for him or her in the county of the recipient's residence or in Travis County, unless the Attorney General shall find reasonable justification for delaying suit and shall advise the Commissioner in writing.

(b) Upon notification by the Commissioner of default on the loan, the educational institution shall cause the records, including transcripts of the recipient, to become unavailable to him or her or any other person outside the institution until the participating institution has been notified by the Commissioner that default has been corrected.

(c) In all cases of default, the recipient shall be responsible for the payment of principal and all accrued charges, including interest, late charges, any collections costs incurred, court costs, and attorney fees.

§21.446.Provisions for Disability and Death.

The Board shall cancel a recipient's repayment or service obligation if it determines:

(1) on the basis of a sworn affidavit of a qualified physician, that the recipient is unable to teach on a full-time basis because the recipient is permanently, totally disabled; or

(2) on the basis of a death certificate, that the recipient has died. In the case of death, the Board may pursue collection from the recipient's estate if the debt has been reduced to judgment before the death of the recipient.

§21.447.Advisory Committee.

The Board's Financial Aid Advisory Committee shall function as the advisory committee to the Board in the administration of the program described in this subchapter.

§21.448.Dissemination of Information.

The Board and its advisory committee are responsible for publishing and disseminating general information and program rules for the Teach for Texas Conditional Grant Program to approved Texas institutions of higher education, appropriate associations, and other interested entities.

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 July 26, 2001.

TRD-200104348

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Subchapter V. TEACH FOR TEXAS ALTERNATIVE CERTIFICATION CONDITIONAL GRANT PROGRAM

19 TAC §§21.680 - 21.696

The Texas Higher Education Coordinating Board proposes new §§21.680 through 21.696, concerning the Teach for Texas Alternative Certification Conditional Grant Program. Specifically, these new rules will provide for application acceptance priorities, selection criteria and program requirements, eligibility and hardship circumstances, award amounts, pre-employment period and service obligation periods, grant conditions, loan interest and repayment provisions, forbearance and collection enforcement provisions, disability and death provisions, advisory committee functions, and dissemination of information provisions.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of this program for Fiscal Year 2002 is estimated to be $3,200,000 and for Fiscal Year 2003 is estimated to be $8,200,000. For Fiscal Year 2004 through Fiscal Year 2006, the fiscal impact is estimated to remain at $8,200,000.

Ms. Hollis has also determined that for each year of the first five years these proposed rules are in effect, the public benefit anticipated as a result of administering the sections will be an increased number of teachers who enjoy teaching, who have valuable experience and expertise, and who will help relieve the teacher shortage in Texas. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §56.357, which provides the Coordinating Board with the authority to award conditional grants to assist persons seeking educator certification through alternative educator certification programs.

The new rules affect the Texas Education Code, Chapter 56, §§56.357 through 56.358.

§21.680.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Teach for Texas Financial Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§56.357 through 56.358.

(b) Scope. The rules set forth in this subchapter are applicable to persons who show financial need and who enroll in an alternative certification program approved by the State Board for Educator Certification.

(c) Purpose. The purpose of the Teach for Texas Alternative Certification Conditional Grant Program is to attract to the teaching profession persons with undergraduate degrees who have expressed an interest in teaching, to support the certification of those persons as classroom teachers, and to encourage these newly certified teachers to teach in fields having a critical shortage of teachers or to teach in communities having a critical shortage of teachers.

§21.681.Definitions.

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

(1) Alternative Certification Program--an alternative certification educator preparation program approved by the State Board for Educator Certification.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Certification officer--The individual designated by the State Board for Educator Certification as the "Certification Officer" at an approved certification program.

(4) Certified Teacher--A person who has passed the appropriate certification exams and has been fully certified by the Texas State Board for Educator Certification (SBEC).

(5) Commissioner--The Commissioner of Higher Education.

(6) Community Experiencing a Critical Shortage of Teachers--As defined by the Texas Commissioner of Education.

(7) Good cause--See §21.436 of this title (relating to Teach for Texas Conditional Grant Program), "Hardship and Other Good Cause."

(8) Loan--A Teach for Texas Alternative Certification Conditional Grant that has become a loan because the grant conditions have not been fulfilled.

(9) Program Completion Date--The date the recipient is considered to have completed the requirements of the educator certification program and is eligible to take the appropriate ExCET exam.

(10) Program officer--The individual designated by the State Board for Educator Certification as the "Program Director" at an approved certification program.

(11) Recipient--A person who has received a Teach for Texas Alternative Certification Conditional Grant.

(12) Steady Progress--As defined by the individual program officer midway through the alternative certification program.

(13) Shortage Field--Subject or area of study designated by the Texas Commissioner of Education as having a critical shortage of teachers.

§21.682.Application Acceptance and Selection Criteria Priorities.

(a) Selection of applicants to receive grants shall be made either on a first-come, first-served basis or an annual application deadline and criteria for ranking applications that include an applicant's financial resources as well as the efficient use of funds will also be established by the Board.

(b) Applicants from all regions of Texas shall be given the opportunity to apply for and receive the conditional grant.

§21.683.Agreement to Program Requirements.

The program officer at each approved certification program shall sign an agreement acknowledging the requirements of the Teach for Texas Alternative Certification Conditional Grant Program.

§21.684.Eligible Recipient.

To be eligible an applicant must:

(1) be seeking educator certification and agree to teach full-time at the preschool, primary, or secondary level in a public school in Texas:

(A) in a teaching field designated by the Commissioner of Education as experiencing a critical shortage of teachers in Texas in the year in which the student receives the grant; or

(B) in a public school in Texas in a community designated by the Commissioner of Education as experiencing a critical shortage of teachers:

(i) in any year in which the person receives a Teach for Texas Alternative Certification Conditional Grant; or

(ii) in any subsequent year in which the person fulfills the teaching obligation; and

(2) be enrolled in an alternative educator certification program and must:

(3) make steady progress toward completion of the educator certification program;

(4) be recommended for a Teach for Texas Alternative Certification Conditional Grant award by the program officer at the alternative certification program;

(5) not have been convicted of a felony or an offense under Chapter 481, Health and Safety Code (Texas Controlled Substances Act), or under the law of another jurisdiction involving a controlled substance, as defined by Chapter 481, Health and Safety Code, unless the student has:

(A) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or

(B) been pardoned, had the record of the offense expunged from the person's record, or otherwise has been released from the resulting ineligibility to receive a grant under this subchapter.

§21.685.Hardship and Other Good Cause.

Hardship and other good cause may be determined by the Board based upon documented circumstances. The Board may request assistance from the program officer at an approved institution in determining whether or not circumstances warrant exception to the steady progress requirement and also the requirement to fulfill the five-year teaching obligation within a six-year period. Such situations include, but are not limited to, the following:

(1) a severe illness or other debilitating condition that may affect the recipient's ability to make steady progress in the alternative educator certification program or in completing the five-year teaching obligation; or

(2) responsibility of the recipient for the care of a temporarily disabled dependent that may affect the recipient's ability to make steady progress in the alternative educator certification program or in completing the five-year teaching obligation.

§21.686.Amount of Award.

The maximum amount of a Teach for Texas Alternative Conditional Grant shall equal two times the current annual amount of the TEXAS Grant for a student enrolled at a Texas four-year public institution of higher education.

§21.687.Eighteen-Month Period Before Employment.

The recipient must become certified to teach in Texas and must begin fulfilling the five-year service obligation not later than 18 months after the program completion date.

§21.688.Service Obligation Period.

(a) A recipient must teach full-time for five years as:

(1) a teacher certified in and teaching in a field having a critical shortage of teachers; or

(2) a certified teacher in a community experiencing a critical shortage of teachers.

(b) A recipient must complete a five-year service obligation.

(c) The service obligation period begins on the first day the recipient begins qualified employment.

(d) During the service obligation period, the recipient shall provide the Board with regular, periodic reports of his or her teaching status.

§21.689.Conditions of Grant.

(a) The Teach for Texas Alternative Certification Conditional Grant becomes a loan and shall be reported to credit reporting agencies when the recipient fails to:

(1) remain enrolled in or to make steady progress in the educator certification program;

(2) become certified as a teacher within eighteen months after the program completion date;

(3) begin the service obligation within eighteen months after the program completion date;

(4) maintain continuous full-time teaching and complete the five-year teaching obligation within six years of beginning the service obligation period;

(5) provide regular, periodic reports of enrollment or employment status and location to the Board within a reasonable period of time, as determined by the Board.

(b) Recipients must sign a promissory note acknowledging the conditional nature of the grant and promising to repay the outstanding principal, interest, and reasonable collection costs if the grant conditions are not fulfilled.

§21.690.Loan Interest.

(a) The interest rate on loans shall be determined by the Commissioner and shall be a fixed simple interest rate.

(b) Interest begins to accrue as of the date the grant becomes a loan, or the date the certification program was completed, whichever is earlier.

(c) Interest does not accrue during periods of eligible teaching.

§21.691.Repayment of Loans.

(a) The Teach for Texas Alternative Certification Conditional Loan shall be repaid in installments over a period of not more than ten years from the date the grant becomes a loan.

(b) A recipient shall begin making payments within sixty days of the date on which the Teach for Texas Alternative Certification Conditional Grant becomes a loan.

(c) The loan amount to be repaid shall be based upon the proportion of the remaining unfulfilled service obligation.

(d) The minimum repayment amount is $1,200 annually, or an amount required to repay the loan within 10 years, whichever is greater.

§21.692.Forbearance.

Periods of forbearance may be granted on loans under certain documented circumstances as determined by the Board. Periods of forbearance shall extend the ten-year repayment period.

§21.693.Enforcement of Collection.

(a) When a recipient of a Teach for Texas Alternative Certification Conditional Grant shall have failed to make six monthly payments due in accordance with the promissory note(s), then the full amount of remaining principal, interest, and/or late charges shall immediately become due and payable. The recipient's name and last known address, and other information as requested by the Commissioner, shall be reported to the Attorney General or any county or district attorney acting for him or her in the county of the recipient's residence or in Travis County, unless the Attorney General finds reasonable justification for delaying suit and advises the Commissioner in writing.

(b) In all cases of default, the recipient shall be responsible for the payment of principal and all accrued charges, including interest, late charges, any collections costs incurred, court costs, and attorney fees.

§21.694.Provisions for Disability and Death.

The Board shall cancel a recipient's repayment or service obligation if it determines:

(1) on the basis of a sworn affidavit of a qualified physician, that the recipient is unable to teach full-time because the recipient is permanently, totally disabled;

(2) on the basis of a death certificate, that the recipient has died; in the case of death, the Board may pursue collection from the recipient's estate if the debt has been reduced to judgment before the death of the recipient.

§21.695.Advisory Committee.

The Board's Financial Aid Advisory Committee shall function as the advisory committee to the Board in the administration of the program described in this subchapter.

§21.696.Dissemination of Information.

The Board and its advisory committee are responsible for publishing and disseminating general information and program rules for the Teach for Texas Alternative Certification Conditional Grant Program to approved Texas institutions of higher education, educator certification programs, appropriate associations, and other interested entities.

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 July 27, 2001.

TRD-200104356

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


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

19 TAC §§21.710 - 21.722

The Texas Higher Education Coordinating Board proposes new §§21.710 through 21.722, concerning the Conditional Loan Repayment Program for Attorneys Employed by the Office of the Attorney General. Specifically, these new rules will provide for application acceptance priorities, definitions of eligible schools of law, eligible attorneys, and eligible education loans. Additionally, these new rules provide for methods and conditions of loan repayment and noncompliance, loan terms, provisions on forbearance and enforcement of collections, death and disability provisions, and advisory committee functions.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of this program for Fiscal Year 2002 is estimated to be $50,000, including loan repayments and administrative costs. The cost for this program will remain at $50,000 for each year after Fiscal Year 2002.

Ms. Hollis has also determined that for each year of the first five years these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be an increased number of attorneys employed by nonprofit organizations providing services to indigent persons in Texas. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §61.951, which provides the Coordinating Board with the authority to provide assistance for attorneys employed by nonprofit organizations that provide legal services for indigent persons.

The new rules affect the Texas Education Code, §§61.951 through 61.962.

§21.710.Authority, Scope, and Purpose.

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

(b) Scope. The rules set forth in this subchapter are applicable to attorneys who apply and qualify for the assistance.

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

§21.711.Definitions.

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

(1) Attorney General's Office (OAG)--The Office of the Attorney General of the State of Texas.

(2) Board--The Texas Higher Education Coordinating Board.

(3) Commissioner--The Texas Commissioner of Higher Education.

(4) Program--The Conditional Education Loan Repayment Program for OAG Attorneys.

(5) Service Period--A twelve-month period of law practice that qualifies an eligible attorney for an annual education loan repayment.

§21.712.Priorities of Application Acceptance.

Acceptance of applicants will depend upon the availability of appropriated funds and will be made either on a first-come, first-served basis, or an annual application deadline. Criteria for ranking applications will be established. Renewal applicants will be given priority over first-time applicants.

§21.713.Eligible School of Law.

An eligible school of law is one that is accredited by the American Bar Association.

§21.714.Eligible Attorney.

To be eligible for loan repayment, an applicant must:

(1) be licensed by the State Bar of Texas,

(2) submit a complete application to the board,

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

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

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

§21.715.Eligible Education Loan.

An eligible education loan is one that:

(1) was obtained through a lender for purposes of attending an eligible school of law or for undergraduate education at a post-secondary institution,

(2) was obtained though a lender for purposes of consolidating education loans,

(3) does not entail a service obligation and is not being repaid through another loan repayment program,

(4) is not an education loan made to oneself from one's own insurance policy or pension plan or from the insurance policy or pension plan of a relative, and

(5) is not in default at the beginning of the service period.

§21.716.Education Loan Repayments.

Eligible education loans shall be repaid under the following conditions:

(1) The annual repayment(s) are made co-payable to the attorney and the holder(s) of the loan(s).

(2) The annual repayment amount shall be determined by the Commissioner for full-time eligible practice, but shall not exceed $6,000.

(3) Repayments shall be applied to the outstanding principal and accrued interest.

(4) All repayments are contingent upon availability of funds and the applicant's having met all program requirements at the end of the service period.

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

(a) Attorneys must serve as a full-time attorney in the Attorney General's Office for three consecutive years.

(b) If three consecutive years of service in the Attorney General's Office are not completed in full, all loan repayments made become loans and the terms of the promissory notes become effective on the date the attorney's employment with the Attorney General's Office ends.

(c) The Board may grant the attorney additional time to complete the service obligation for good cause, such as temporary disability, care for a dependent who is temporarily disabled, or other extenuating circumstances as determined by the Board.

§21.718.Terms of Loans.

(a) The principal and accrued interest shall be repaid in installments over a period of not more than five years;

(b) The fixed annual interest rate shall be determined by the Commissioner.

(c) Interest shall accrue beginning on the date the loan repayment was disbursed by the Board.

(d) Repayment shall begin 60 days after the attorney's last date of employment in the Attorney General's Office.

(e) Monthly payments shall be sufficient to repay the loan(s) within five years, or $200.00, whichever is greater.

§21.719.Forbearance.

Periods of forbearance may be granted at the discretion of the Board based on certain documented circumstances.

§21.720.Enforcement of Collections.

(a) When a recipient of education loan repayments which have become loans has failed to remit as many as six monthly payments due in accordance with the promissory note(s), the unpaid principal, accrued interest charges, late charges, and any collection costs shall become due and payable immediately. The recipient's name, last known address, and other information shall be reported to the Attorney General or any county or district attorney acting for him or her in the county of the recipient's residence or in Travis County, unless the Attorney General shall find reasonable justification for delaying suit and shall so advise the Commissioner in writing. The borrower is responsible for paying all amounts, including principal and all accrued charges, such as interest, late charges, collection costs, court costs, and attorney fees.

(b) Upon notification by the Commissioner of default on the loan, the educational institution shall not release official certified academic transcripts of the recipient until the participating institution has been notified by the Board that the default has been corrected.

(c) In all cases of default the recipient shall be responsible for the payment of principal and all accrued interest charges, late charges, any collections costs incurred, and attorney fees.

§21.721.Provisions for Disability and Death.

The Board shall cancel a recipient's repayment or service obligation upon receipt of a sworn affidavit of a qualified physician documenting permanent disability that prevents the attorney from being unable to complete the three-year service period as an attorney for the Attorney General's Office. Upon receipt of a death certificate of a recipient, the Board shall cancel the repayment obligation unless the debt has been reduced to judgment before the date of death. The Board may pursue collection from the recipient's estate.

§21.722.Advisory Committee.

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

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

Filed with the Office of the Secretary of State, on July 27, 2001.

TRD-200104357

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Subchapter FF. LAW EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §§21.1010 - 21.1017

The Texas Higher Education Coordinating Board proposes new §§21.1010 through 21.1017, concerning the Law Education Loan Repayment Program. Specifically, these new rules will provide for application acceptance priorities, in addition to eligibility requirements for an organization, an attorney, and an education loan. These sections also will provide for methods of repayment of education loans, and advisory committee functions.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of this program for Fiscal Year 2002 is estimated to be $100,000, including loan repayments and administrative costs. The costs for this program will remain at $100,000 for each year after Fiscal Year 2002.

Ms. Hollis has also determined that for each year of the first five years these proposed rules are in effect, the public benefit anticipated as a result of administering the sections will be an increased number of attorneys employed by nonprofit organizations providing services to indigent persons in Texas. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §61.951, which provides the Coordinating Board with the authority to provide assistance for attorneys employed by nonprofit organizations that provide legal services for indigent persons.

The new rules affect the Texas Education Code, §§61.951 through 61.958.

§21.1010.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter X, Repayment of Certain Law School Education Loans. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §§61.951 through 61.958.

(b) Scope. The rules set forth in this subchapter are applicable to attorneys employed by nonprofit organizations that provide either criminal defense or civil legal services for indigent individuals.

(c) Purpose. The purpose of the Law Education Loan Repayment Program is to recruit and retain attorneys in nonprofit organizations providing services to indigent persons in Texas.

§21.1011.Definitions.

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

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The Texas Commissioner of Higher Education.

(3) Program--The Law Education Loan Repayment Program.

(4) Service Period--A twelve-month period of service that qualifies an eligible attorney for an annual education loan repayment.

§21.1012.Priorities of Application Acceptance.

Approval of applications will depend upon the availability of appropriated funds and will be made either on a first-come, first-served basis or an annual application deadline and criteria for ranking applications will also be established. Renewal applicants will be given priority over first-time applicants.

§21.1013.Eligible Organization.

An eligible organization is one that:

(1) qualifies for an exemption from federal income taxes under §501 (c)(3), Internal Revenue Code of 1986, as amended;

(2) is prohibited from providing representation in a class-action lawsuit; and,

(3) receives funds for services to indigent individuals from:

(A) the Interest on Lawyer's Trust Accounts program administered by the Texas Equal Access to Justice Foundation; or

(B) the basic civil legal services account assistance grants under the Texas Government Code, §51.943.

§21.1014.Eligible Attorney.

To be eligible for loan repayment, an applicant must:

(1) be licensed by the State Bar of Texas,

(2) submit a completed application to the Board agreeing to meet the conditions of loan repayment through the program, and

(3) provide at least twelve consecutive months of service in an eligible organization.

§21.1015.Eligible Education Loan.

An eligible education loan is one that:

(1) was obtained through a lender for purposes of attending a law school that is accredited by the American Bar Association,

(2) does not entail a service obligation and is not being repaid through another loan repayment program,

(3) is not an education loan made to oneself from one's own insurance policy or pension plan or from the pension plan or insurance policy of a relative, and

(4) is not in default at the beginning of the service period.

§21.1016.Repayment of Education Loans.

Eligible education loans shall be repaid under the following conditions:

(1) The annual repayment(s) shall be made co-payable to the attorney and the holder(s) of the loan(s).

(2) The annual repayment amount and the number of service periods shall be determined by the Commissioner.

(3) The number of service periods shall not exceed ten years.

(4) The total amount of loan repayment received through this program shall not exceed 50% of the total amount of the attorney's outstanding law school loans, including scheduled interest payments at the beginning of the first service period.

(5) If education loans obtained during law school have been consolidated with undergraduate education loans or other professional education loans, and neither the attorney nor the consolidation lender can provide documentation of the indebtedness relating to the original loans for law school, the total amount of loan repayment received through this program shall not exceed 50% of the current average cost of education at eligible schools of law.

(6) All payments are contingent upon availability of funds and the applicant having met all program requirements at the end of the service period.

(7) Prior conditional approval shall be communicated to eligible attorneys.

§21.1017.Advisory Committee.

The Commissioner may appoint an advisory committee to provide assistance in matters relating to the 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 July 27, 2001.

TRD-200104358

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Subchapter II. EDUCATIONAL AIDE EXEMPTION PROGRAM

19 TAC §§21.1080 - 21.1091

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

The Texas Higher Education Coordinating Board proposes the repeal of §§21.1080 - 21.1091, concerning the Educational Aide Exemption Program. Specifically, the repeal of the rules will modernize the formatting of program rules and clarify current eligibility requirements in response to legislation.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years the repeal of the rules is in effect, the fiscal implications to state or local government as a result of enforcing or administering the rules will be that the annual cost is expected to grow from approximately $1 million to approximately $2 million. Since funding is provided through the Permanent School Fund and not General Revenue, there is no cost to the state 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 of the rules is in effect, the public benefit anticipated as a result of administering the sections will be an increase in the number of individuals working toward teacher certification. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the repeal of the rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P.O. Box 12788, Austin, Texas 78711.

The repeal of the rules is proposed under the Texas Education Code, §54.214, which authorizes the Coordinating Board to adopt rules as necessary to implement the educational aides program.

The repeal of the rules affect the Texas Education Code, §54.214.

§21.1080.Purpose.

§21.1081.Administration.

§21.1082.Delegation of Powers and Duties.

§21.1083.Definitions.

§21.1084.Eligible Institution.

§21.1085.Eligible Students.

§21.1086.The Application Process.

§21.1087.Selection Criteria.

§21.1088.Award Announcements.

§21.1089.Award Cycle.

§21.1090.Reimbursement for Exemptions.

§21.1091.Program Review Requirements.

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

Filed with the Office of the Secretary of State, on July 27, 2001.

TRD-200104361

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


19 TAC §§21.1080 - 21.1089

The Texas Higher Education Coordinating Board proposes new §§21.1080 through 21.1089, concerning the Educational Aide Exemption Program. Specifically, the new rules will modernize the formatting of program rules and clarify current eligibility requirements in response to legislation.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, the fiscal implications to state or local government as a result of enforcing or administering the rules will be that the annual cost is expected to grow from approximately $1 million to approximately $2 million. Since funding is provided through the Permanent School Fund and not General Revenue, there is no cost to the state as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be an increase in the number of individuals working toward teacher certification. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §54.214, which authorizes the Coordinating Board to adopt rules as necessary to implement the educational aides program.

The new rules affect the Texas Education Code, §54.214.

§21.1080.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, §54.214, which states that the Coordinating Board shall adopt rules as necessary to implement the educational aides program.

(b) Scope. The rules set forth in this subchapter are applicable to determining the eligibility of students to receive awards through the educational aides program.

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

§21.1081.Definitions.

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

(1) Board--The Texas Higher Education Coordinating Board.

(2) Commissioner--The commissioner of higher education, the chief executive officer of the board.

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

(4) Financial need--Based on the federal formula, the cost of education at an institution of higher education less the expected family contribution and any gift aid for which the student is entitled, or based on adjusted gross annual income for the most recent tax year as follows:

(A) single independent students must have an adjusted gross income of $25,000 or less,

(B) married independent students must have a combined gross income of $50,000 or less, and

(C) dependent students must have an adjusted gross income for the family of $50,000 or less.

(5) Program officer--The individual on a college campus who is designated by the institution's Chief Executive Officer to represent a program described in this subchapter on that campus. Unless otherwise designated by the Chief Executive Officer, the Director of Student Financial Aid shall serve as program officer.

(6) Resident of Texas--A resident of the State of Texas as determined in accordance with Chapter 21, Subchapter B of this title (relating to Determining Residence Status). Nonresident students eligible to pay resident tuition rates are not included.

§21.1082.Eligible Institutions.

(a) All public institutions of higher education are eligible to participate.

(b) The chief executive officer of an eligible institution shall designate a program officer who shall be the board's on-campus agent to certify all institutional transactions, activities and reports with respect to the program described in this subchapter. Unless otherwise indicated by the chief executive officer of the institution, the Director of Financial Aid shall serve as the program officer.

§21.1083.Eligible Students.

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

(1) be a resident of Texas;

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

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

(4) show financial need;

(5) be enrolled in courses required for teacher certification at the institution granting an exemption under this subchapter;

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

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

§21.1084.The Application Process.

(a) Application forms and instructions will be distributed primarily through school district offices throughout the state, although financial aid offices of eligible institutions will also be provided copies of the forms.

(b) Applications will be processed once a year, with award announcements made as soon as possible after the priority deadline named by the board.

(c) Part I of the application is to be completed and signed by the applicant, who is to forward the form to an authorized officer of the school or school district by which the applicant is employed.

(d) Part II of the application is to be completed and certified by an authorized officer of the school or school district by which the applicant is employed, who is to forward the application to the financial aid office of the college or university the applicant plans to attend.

(e) Part III of the application is to be completed and certified by the financial aid office of the relevant institution of higher education, which is responsible for forwarding the completed application to the board by the deadline indicated in the instructions.

(f) Due to limited funding, each institution will be allowed to submit only a certain number of applications to the board. This allotment will be announced to the institutions at least a month prior to the deadline for submitting applications.

(g) In order to be given priority consideration, applications with Parts I, II and III completed and duly certified must be received by the board by the established deadline. Applications received after that date will be given consideration only if funds remain available after all applications received by the deadline have been processed.

§21.1085.Selection Criteria.

From the pool of applicants submitted by participating institutions, the board will select recipients for the exemptions. Selection will be based on the following criteria:

(1) the financial need of each student,

(2) the number of years the individual has been employed as an educational aide,

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

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

§21.1086.Award Announcements.

As soon as possible after the priority deadline for submitting applications, the board will select award recipients and announce the selections to the institutions, the selected recipients, and the school districts employing the recipients. The number of awards made each year will depend on the funding available for reimbursing institutions for the exemptions they grant. No institution is required to award an exemption for which reimbursement funds are not available.

§21.1087.Award Cycle.

(a) Fall awards. Each individual selected for an award through this subchapter will be exempted from the payment of tuition and mandatory fees other than class or laboratory fees for the fall term for which the award was requested.

(b) Spring awards. At the end of the fall term and upon confirmation by the institution that the student continues to be eligible, the student will also be granted an exemption for tuition and mandatory fees other than class or laboratory fees for the spring term of that same academic year.

(c) A summer exemption may be granted if program funding is sufficient to meet summer expenses and if the student continues to meet program requirements. The availability of funding for summer awards will be announced to institutions by the board by March 1 of each year.

(d) Students who have received awards may compete for awards in subsequent years but must follow the same application process as students applying for the first time.

§21.1088.Reimbursement for Exemptions.

(a) Source of funding. The funds to be used to reimburse institutions for the exemptions awarded under this subchapter will come from the foundation school fund.

(b) To request reimbursements. After granting exemptions authorized by the board, the institutions may request reimbursement from the board by completing and submitting the reimbursement form prescribed and distributed by the board.

(c) Reimbursements. At least once a year the board will request a transfer of funds from the foundation school fund for use in reimbursing participating institutions and forward amounts to institutions in keeping with the reimbursement forms received from the schools.

§21.1089.Program Review Requirements.

Any institution of higher education whose students receive awards through the program described in this subchapter will be subject to a program review.

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 July 27, 2001.

TRD-200104359

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Subchapter KK. TEACHER EDUCATION LOAN REPAYMENT PROGRAM

19 TAC §§21.2020 - 21.2026

The Texas Higher Education Coordinating Board proposes new §§21.2020 - 21.2026, concerning the Teacher Education Loan Repayment Program. Specifically, these new rules will provide for application acceptance priorities, eligible teacher requirements, eligible loan requirements, provisions on the repayment of education loans, and advisory committee functions.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, there will be fiscal implications with a cost of $2.5 million to state or local government which includes loan repayments and administrative costs, as a result of enforcing or administering the rules.

Ms. Hollis has also determined that for each year of the first five years these proposed rules are in effect, the public benefit anticipated as a result of administering the sections will be an increased number of teachers in communities and subjects for which there is an acute shortage of teachers. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §61.702, which provides the Coordinating Board with the authority to provide assistance in the repayment of student loans for teachers who teach in communities and subject areas for which there is an acute shortage of teachers.

The new rules affect the Texas Education Code, §61.702.

§21.2020.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter M, Teach for Texas Financial Assistance Program. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §61.702.

(b) Scope. The rules set forth in this subchapter are applicable to full-time classroom teachers at the preschool, primary, or secondary level in a public school in this state in an area or field of acute teacher shortage as designated by the Commissioner of Education.

(c) Purpose. The purpose of the Teacher Education Loan Repayment Program is to recruit and retain classroom teachers in communities and subjects for which there is an acute shortage of teachers in Texas.

§21.2021.Definitions.

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

(1) Board--The Texas Higher Education Coordinating Board.

(2) Classroom Teacher--A person who is employed by a school district and teaches in an academic instructional setting or a career and technology instructional setting at least four hours each day. The term does not include a teacher's aide or a full-time administrator.

(3) Commissioner--The Texas Commissioner of Education.

(4) Program--The Teacher Education Loan Repayment Program.

(5) Service Period--A one-year period of service that qualifies an eligible teacher for an annual education loan repayment.

§21.2022.Priorities of Application Acceptance.

Approval of applications will depend upon the availability of appropriated funds and will be made either on a first-come, first-served basis, or on an annual application deadline. Criteria for ranking applications will be established. Renewal applicants will be given priority over first-time applicants.

§21.2023.Eligible Teacher.

To be eligible for loan repayment a teacher must:

(1) have been employed as a classroom teacher for at least one year as a full-time classroom teacher in a public school in Texas at the preschool, primary, or secondary level:

(A) in a school that has been designated by the Commissioner as having an acute shortage of teachers; or

(B) teaching a subject that has been designated as a field of acute teacher shortage by the Commissioner;

(2) be employed as a full-time classroom teacher in a public school in Texas at the preschool, primary, or secondary level:

(A) in a school that has been designated by the Commissioner as having an acute shortage of teachers; or

(B) teaching a subject that has been designated as a field of acute teacher shortage by the Commissioner;

(3) not have received a Teach for Texas Grant; and

(4) submit a completed application to the Board.

§21.2024.Eligible Education Loan.

An eligible education loan is one that:

(1) was obtained for the purpose of attending an institution of higher education,

(2) does not entail a service obligation and is not being repaid through another loan repayment program,

(3) is not an education loan made to oneself from one's own insurance policy or pension plan or from the pension plan or insurance policy of a relative, and

(4) is not in default at the beginning of the service period.

§21.2025.Repayment of Education Loans.

Eligible education loans shall be repaid under the following conditions:

(1) the annual repayment(s) shall be made co-payable to the teacher and the holder(s) of the loan(s);

(2) the annual repayment amount is the lesser of $1,000.00 or the amount of principal and interest that is scheduled to be paid during the service period;

(3) the total amount of loan repayment shall not exceed $5,000.00;

(4) the number of service periods shall not exceed five years;

(5) all payments are contingent upon availability of funds and the applicant's having met all program requirements at the end of the service period; and

(6) prior conditional approval shall be communicated to eligible teachers.

§21.2026.Advisory Committee.

The Commissioner may appoint an advisory committee to provide assistance in matters relating to the 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 July 27, 2001.

TRD-200104363

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter B. PROVISIONS FOR THE TUITION EQUALIZATION GRANT PROGRAM

19 TAC §22.22

The Texas Higher Education Coordinating Board proposes amendments to §22.22, concerning the Tuition Equalization Grant Program. Specifically, the amendments to the rule will clarify the eligible institutions of the program.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed amendments to the rule are in effect, there will be no additional fiscal implications to state or local government as a result of enforcing or administering the rule. The total cost of the program for the first five years the amendments are in effect is estimated to be $82,200,337 for each fiscal year.

Ms. Hollis has also determined that for each year of the first five years the proposed amendments are in effect, the public benefit anticipated as a result of administering the section will be a better understanding of what constitutes an eligible institution. There is no adverse 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 proposed amendments to the rule may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P.O. Box 12788, Austin, Texas 78711.

The amendments to the rule are proposed under the Texas Education Code, §61.221, which authorizes the Coordinating Board to provide tuition equalization grants to Texas residents enrolled in any approved private Texas college or university, based on student financial need.

The amendments to the rule affect the Texas Education Code, Chapter 61.

§22.22.Eligible Institutions.

(a) Any college or university defined as a private or independent institution of higher education by Texas Education Code, §61.003 or that is located in Texas and meets the same program standards and accreditation as public institutions of higher education as determined by the Board, is eligible to participate in the Tuition Equalization Grant Program. [ Any nonprofit, independent Texas college or university which is a regular member of, or candidate for accreditation by, the Commission on Colleges of the Southern Association of Colleges and Schools may apply to participate in the program. Nonprofit, independent professional schools which award bachelor's or other higher degrees, and which are not members of Southern Association of Colleges and Schools, may petition the board for consideration of approval. ]

(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 July 27, 2001.

TRD-200104364

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


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

19 TAC §§22.228, 22.229, 22.232

The Texas Higher Education Coordinating Board proposes amendments to §§22.228, 22.229, and 22.232, concerning the Toward Excellence, Access and Success (TEXAS) Grant Program. Specifically, the amendments will clarify the authority of financial aid officers to exercise professional judgment in granting hardship extensions to the program's 16-month window of opportunity to get into the program and extensions to a student's six or four years of grant eligibility due to emergency situations, enable the Coordinating Board to set award amounts at a flat rate, in keeping with recommendations from the TEXAS Grant Oversight Committee, and clarify that all forfeited student deposit funds are to be used to make need-based grants to students through the TEXAS Grant Program.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed rules are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of the program for Fiscal Year 2002 is estimated to be $120 million. The cost of the program is estimated to be $162 million for Fiscal Year 2003, $197 million for Fiscal Year 2004, $239 million for Fiscal Year 2005, and $251 million for Fiscal Year 2006.

Ms. Hollis has also determined that for each year of the first five years these proposed rules are in effect, the public benefit anticipated as a result of administering the sections will be increased efficiency in administering the program. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The amendments to the rules are proposed under the Texas Education Code, §56.302, which provides the Coordinating Board with the authority to provide a grant of money to enable eligible students to attend public and private institutions of higher education in this state.

The amendments affect the Texas Education Code, Chapter 56, Subchapter M.

§22.228.Eligible Students.

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

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

(6) meet one of the two following conditions:

(A) be a graduate of a public or accredited private high school in this state not earlier than the 1998-99 school year; having completed the recommended or advanced high school curriculum established under the Texas Education Code, §28.002 or §28.025, or its equivalent (except as indicated in paragraph (7) of this subsection), and unless granted a hardship extension in keeping with §22.229 of this title (relating to Hardship Provisions), enroll as an entering undergraduate student not later than the end of the 16th month after the month of high school graduation; or

(B) (No change.)

(7) if a graduate of a public high school in a school district certified not to offer all the courses necessary to complete all parts of the recommended or advanced high school curriculum, have completed all courses at the high school offered toward the completion of such a curriculum and enroll in an eligible institution not later than the end of the 16th month after the month of high school graduation unless granted a hardship extension in keeping with §22.229 of this title (relating to Hardship Provisions) ; and

(8) (No change.)

(b) To receive a continuation award through the TEXAS Grant Program, a student must:

(1) - (6) (No change.)

(7) have received a TEXAS grant for no more than 150 semester credit hours or the equivalent or no more than 90 semester credit hours for individuals eligible for TEXAS Grants based on receipt of an associate's degree ; and

(8) (No change.)

(c) Unless granted a hardship postponement in accordance with §22.229 (c) of this title (relating to Hardship Provisions), a student's [ A person's ] eligibility for a TEXAS grant ends six years from the start of the semester or term in which the student received his or her initial award of a TEXAS grant if the student's eligibility for a TEXAS Grant was based on his or her high school performance. Unless granted a hardship postponement in accordance with §22.229 (c) of this title (relating to Hardship Provisions), a student's eligibility ends four years from the start of the semester or term in which the student received his or her initial award of a TEXAS grant if the student's eligibility was based on receiving an associate's degree.

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

§22.229.Hardship Provisions.

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

(c) A student's general eligibility for a TEXAS grant terminates six years from the term in which he or she receives the first award, if the student's eligibility was based on his or her high school performance or four years, if his or her eligibility was based on receiving an associate's degree. However, the director of financial aid may grant an extension of the six or four years in the event of extreme hardship. Documentation justifying the extension must be kept in the student's files, and the institution must identify students granted extensions, and the length of their extensions to the Coordinating Board, so that it may appropriately monitor each student's period of eligibility.

(d) A student's first award must be received within 16 months of high school graduation. However, the financial aid director may allow a student to receive his/her first award after more than 16 months have passed if the student and/or the student's family has suffered a hardship that would now make the student rank as one of the institution's neediest. Documentation justifying the exception must be kept in the student's files.

§22.232.Awards and Adjustments.

(a) - (c) (No change.)

(d) Amount of Grant.

(1) The maximum amount that may be received in a given semester or term by a student through the TEXAS Grant Program is an amount equal to the average tuition and required fees charged students enrolled in similar institutions for 12 semester credit hours or their equivalent [ , prorated for more or less than full-time enrollments ]. The maximum award for recipients enrolled at eligible private or independent institutions is based on the average tuition and required fees at public universities. The maximum award for students enrolled in public community colleges is based on the average in-district tuition and fee charges for such institutions. The board shall determine and announce award maximum amounts prior to the start of each fiscal year.

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

(e) - (f) (No change)

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

Filed with the Office of the Secretary of State, on July 27, 2001.

TRD-200104365

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


19 TAC §22.234

The Texas Higher Education Coordinating Board proposes new §22.234, concerning the Toward Excellence, Access and Success (TEXAS) Grant Program. Specifically, the new rule will clarify the authority of financial aid officers to exercise professional judgment in granting hardship extensions to the program's 16-month window of opportunity to get into the program and extensions to a student's six or four years of grant eligibility due to emergency situations, enable the Coordinating Board to set award amounts at a flat rate, in keeping with recommendations from the TEXAS Grant Oversight Committee, and clarify that all forfeited student deposit funds are to be used to make need-based grants to students through the TEXAS Grant Program.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years this proposed new rule is in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of the program for Fiscal Year 2002 is estimated to be $120 million. The cost of the program is estimated to be $162 million for Fiscal Year 2003, $197 million for Fiscal Year 2004, $239 million for Fiscal Year 2005, and $251 million for Fiscal Year 2006.

Ms. Hollis has also determined that for each year of the first five years this proposed new rule is in effect, the public benefit anticipated as a result of administering the sections will be increased efficiency in administering the program. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rule may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rule is proposed under the Texas Education Code, §56.302, which provides the Coordinating Board with the authority to provide a grant of money to enable eligible students to attend public and private institutions of higher education in this state.

The new rule affects the Texas Education Code, Chapter 56, Subchapter M.

§22.234.Funds Provided from Student Deposit Fees.

Student deposit funds that are not claimed by students may only be used to make need-based grants through the TEXAS Grant Program. If the year-end balance of funds at an institution exceeds 150% of the amount forfeited during that year, the excess funds are to be forwarded to the Coordinating Board for disbursement through the TEXAS Grant Program. If an institution established an endowment fund from funds forfeited prior to the end of state Fiscal Year 2001, no additional forfeited funds may be added to the endowment corpus. All forfeited funds and their earnings (including the earnings of the endowment fund) must be used in calculating the year-end balance subject to the 150% limit, and are to be used for making need-based grants.

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 July 27, 2001.

TRD-200104366

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162


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

19 TAC §§22.253 - 22.260

The Texas Higher Education Coordinating Board proposes new §§22.253 through 22.260, concerning the Toward Excellence, Access and Success (TEXAS) Grant II Program. Specifically, the new rules will provide for the definition of an eligible institution and an eligible student, and also set funding priorities and priorities in determining which students should receive a TEXAS Grant II award. These new sections will also provide for policies in making awards and award adjustments, and provide rules on the dissemination of information.

Ms. Lois Hollis, Assistant Commissioner for Student Services, has determined that for each year of the first five years these proposed new rules are in effect, there will be fiscal implications to state or local government as a result of enforcing or administering the rules. The cost of this program for Fiscal Year 2002 is estimated to be $5 million, and for Fiscal Year 2003 an estimated $5 million. For Fiscal Year 2004 through Fiscal Year 2006, the fiscal impact is estimated to remain at $5 million. These costs include the cost of the grants as well as administrative expenses.

Ms. Hollis has also determined that for each year of the first five years these proposed new rules are in effect, the public benefit anticipated as a result of administering the sections will be the increased number of students earning an associate's degree. There is no adverse effect on small businesses. There are no anticipated economic costs to persons who are required to comply with these sections as proposed. There is no impact on local employment.

Comments on the proposed new rules may be submitted to Ms. Lois Hollis, Assistant Commissioner for Student Services, P. O. Box 12788, Austin, Texas 78711.

The new rules are proposed under the Texas Education Code, §56.352, which provides the Coordinating Board with the authority to provide a grant of money to enable eligible students to attend public two-year institutions of higher education in this state.

The new rules affect the Texas Education Code, §§56.351 through 56.357.

§22.253.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter O, Toward Excellence, Access, and Success (TEXAS) Grant II Program. These rules establish procedures to administer the program as prescribed in the Texas Education Code, §§56.351 through 56.357.

(b) Scope. The rules set forth in this subchapter are applicable to eligible students who show financial need and who are enrolled in an associate degree or certificate program at an eligible institution.

(c) Purpose. This subchapter establishes guidelines for the creation and implementation of the TEXAS Grant II Program, which will provide grants of money to enable eligible students to attend two-year public institutions of higher education in this state.

§22.254.Definitions.

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

(1) Encumber funds (for the TEXAS Grant II Program)--To commit specific award amounts to specific students, documented by a report submitted to the Board. This report includes, at a minimum, a list of student recipient Social Security numbers, number of hours taken and dollar amounts awarded.

(2) Enrolled for at least a half-time basis--The equivalent of six semester credit hours in a regular semester.

(3) Entering student--A student enrolled in the first 30 semester credit hours or their equivalent, excluding hours taken during concurrent enrollment in high school and courses for which the student received credit through examination.

(4) Initial award--The grant award made in the first year in which a student is eligible.

§22.255.Eligible Institutions.

(a) Eligible institutions include public junior colleges, technical colleges and state colleges as defined in Texas Education Code, Chapter 61.003 that meet the requirements outlined in Chapter 22, Subchapter A, §22.4 of this title (relating to Approved Institutions) for grant and scholarship programs, as well as the reporting requirements outlined below.

(b) Reporting.

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

(2) Penalties. If a progress report is postmarked up to a week late, the institution will be ineligible to receive additional funding through the reallocation occurring at that time. For each progress report postmarked more than five working days late, the institution will be penalized 5% of its allocation of funds for initial awards in the following year. If the year-end report is postmarked up to a week late, the institution will be penalized 5% of its allocation of funds for initial awards in the following year. If it is postmarked more than a week late, the institution will be penalized 10% of its allocation for initial awards in the following year. More severe penalties can be assessed if any report is received by the Board more than one month after its due date. The maximum penalty for a single year is 30% of the school's initial fund allocation. If penalties are invoked two years in a row, the institution may be penalized an additional 20%.

(3) Appeals. When Coordinating Board staff determines a penalty is appropriate, it will first contact the Program Officer by telephone or e-mail and then follow up with a written notification, sent through certified mail. The Program Officer will have three weeks from the time he or she receives the written notice to submit a written response and appeal the staff's decision.

§22.256.Eligible Students.

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

(1) be a resident of Texas;

(2) show financial need;

(3) have applied for any available financial aid assistance;

(4) be enrolled at least half time in an associate's degree or certificate program at an eligible institution;

(5) not be eligible for an award through the TEXAS Grant Program; and

(6) not have been granted an associate's or baccalaureate degree.

(b) To receive a continuation award through the TEXAS Grant II Program, a student must:

(1) have previously received an initial award through this program;

(2) show financial need;

(3) be enrolled at least half time;

(4) be enrolled in an associate's degree or certificate program at an eligible institution;

(5) not have been granted an associate's or baccalaureate degree;

(6) not be eligible for an award through the TEXAS Grant Program;

(7) make satisfactory academic progress towards an undergraduate degree or certificate, which requires completion of at least 75% of the hours attempted in the student's most recent academic year, and maintenance of an overall grade point average of at least 2.5 on a four point scale or its equivalent; and

(8) have received TEXAS Grant II awards for no more than 75 semester credit hours or the equivalent.

(c) A person's eligibility for a TEXAS Grant II award ends four years from the start of the semester or term in which the student received his or her initial award of a TEXAS Grant II.

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

(1) received a certificate of discharge by the Texas Department of Criminal Justice or a correctional facility, or completed a period of probation ordered by a court, and at least two years have elapsed from the date of the receipt or completion; or

(2) been pardoned, had the record of the offense expunged from the person's record, or otherwise been released from the resulting ineligibility to receive a TEXAS Grant II award.

(e) If a person fails to meet any of the requirements for receiving a continuation award as outlined in subsection (b) of this section after completion of any year, the person may not receive a TEXAS Grant II award until he or she completes courses while not receiving a TEXAS Grant II and meets all the requirements of subsection (b) of this section as of the end of that period of enrollment.

§22.257.Priorities in Funding.

If appropriations for the TEXAS Grant II Program are insufficient to allow awards to all eligible students, the following priorities will be followed by the Board in the use of funds:

(1) continuation awards through the TEXAS Grant II Program; and

(2) initial awards through the TEXAS Grant II Program.

§22.258.Priority in Awards to Students.

In determining who should receive a TEXAS Grant II award, an institution shall give highest priority to students who demonstrate the greatest financial need at the time the award is made.

§22.259.Awards and Adjustments.

(a) Allocations and Reallocations. Unless otherwise indicated, institutions will have until an established deadline each year to encumber all funds allocated to their students. As of that date, unencumbered funds are available for reallocation to students at other institutions on a first come/first served basis.

(b) Disbursement of Funds to Institutions. At the beginning of each fall term, the Board shall forward to each participating institution a portion of its preliminary allocation of funds for that year. Further disbursements to institutions will be made as appropriate for the balance of the institution's preliminary allocation and any reallocated funds.

(c) Use of Grant Funds. A person receiving a TEXAS Grant II award may use the money to pay any usual and customary cost of attendance at an institution of higher education incurred by the student. The institution may disburse all or part of the proceeds of a TEXAS Grant II award to an eligible person only if the tuition and required fees incurred by the person at the institution have been paid.

(d) Amount of Grant.

(1) The maximum amount that may be received in a given semester or term by a student through the TEXAS Grant II Program is an amount equal to the average tuition and required fees charged students enrolled in similar institutions for 12 semester credit hours or their equivalent. The maximum award for students enrolled in public community colleges is based on the average in-district tuition and fee charges for such institutions.

(2) The Board shall determine and announce award maximum amounts for the following year prior to the preceding January 31.

(3) An eligible public institution may not charge a person receiving a TEXAS Grant II award through that institution an amount of tuition and required fees in excess of the amount of the TEXAS Grant II award received by the person. Nor may it deny admission to or enrollment in the institution based on a person's eligibility to receive or actual receipt of a TEXAS Grant II award. If an institution's tuition and fee charges exceed the TEXAS Grant II amount, it may address the shortfall in one of two ways:

(A) It may use other available sources of financial aid, other than the Pell grant or loans, to cover any difference in the amount of a TEXAS Grant II award and the student's actual amount of tuition and required fees at the institution; or

(B) it may waive the excess charges for the student. However, if a waiver is used, the institution may not report the recipient's tuition and fees in a way that would increase the general revenue appropriations to the institution.

(e) Late Disbursements. For a student to receive a disbursement after the end of his/her period of enrollment, the program officer must document in the student's file that

(1) the student has completed the award period with satisfactory academic progress;

(2) the student has an outstanding balance at the school, or on a student loan or other education-related debt for the qualifying award period; and

(3) the institution will apply the award toward that outstanding balance or debt.

(f) Packaging with Other Awards. The amount of a TEXAS Grant II award may not be reduced by any gift aid for which the person is eligible, unless the total amount of a person's grant plus any gift aid received exceeds the total cost of attendance at an eligible institution.

§22.260.Dissemination of Information and Rules.

The Board and its advisory committee are responsible for publishing and disseminating general information and program rules for the program described in this subchapter. The Coordinating Board shall distribute to each eligible institution and to each school district a copy of the rules adopted under this subchapter.

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

Filed with the Office of the Secretary of State, on July 27, 2001.

TRD-200104367

Gary Prevost

Director of Business Services

Texas Higher Education Coordinating Board

Proposed date of adoption: October 26, 2001

For further information, please call: (512) 427-6162