TITLE 19.EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

Chapter 21. STUDENT SERVICES

Subchapter A. GENERAL PROVISIONS

19 TAC §21.3, §21.4

The Texas Higher Education Coordinating Board adopts amendments to §21.3 and §21.4 concerning Loan Repayment Deferral and Loan Forgiveness for Emergency Tuition and Fee Loans Made under Texas Education Code §56.051 and the Collection of Tuition, with changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5481). Senate Bill 1227, 79th Legislature, Regular Session, amended Texas Education Code §54.051 and §54.052, changing the state's emergency tuition and fee loan program. The emergency loan program is funded through authorized set-asides from the Texas Public Educational Grant Program (Texas Education Code, §56.033). Specifically, §21.3 indicates the emergency loan funds may be used to pay for books as well as tuition and fees and that institutions may select loan recipients based on the student financial need. Senate Bill 1227, 79th Legislature, Regular Session, amended Texas Education Code §56.051 regarding the payment due date for tuition and fees. Specifically, new §21.4 reflects the fact that the regular payment due date does not apply if the student has financial aid pending and the student has signed an agreement for the aid, when received, to first be applied to cover outstanding tuition and fee charges. Furthermore, the section indicates procedures institutions are to follow if the aid, when received, is insufficient to cover unpaid charges.

The following comment was received regarding the amendments:

Comment: Texas A&M University commented that it was unclear how an institution would determine that a student's aid had been delayed and thus make a student eligible for the postponement of tuition and fee payment. They asked what proof the student would have to provide to qualify for the postponement.

Response: The Board has changed §21.4 to clarify that financial aid is to be considered "delayed" if it has been awarded by the financial aid office but not yet disbursed to the school for the student by the due date for tuition and fee payment. The institution should be able to obtain the appropriate information from its own records and should not require additional proof from the student.

The amendments are adopted under the Texas Education Code, §56.055, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §§56.051 - 56.055 and §54.0071.

§21.3.Loan Repayment Deferral and Loan Forgiveness for Emergency Loans for Tuition, Fees and Books Made Under Texas Education Code, §56.051.

(a) An institution shall defer the repayment of emergency loans for tuition, fees and books, in accordance with guidelines adopted by the governing board of the institution. The deferred repayment, however, must begin on the earlier of the following dates: the first day of the ninth month after the last month in which the borrower was enrolled in a public institution of higher education, or the fifth anniversary of the date on which the loan was executed. An institution may extend the time for repayment of loans for students who enroll in graduate or professional degree programs for up to three years, but not longer than one year beyond the time when the student fails to be enrolled in the institution on at least a half-time basis.

(b) An institution shall forgive an emergency loan to an individual who has been certified by a physician as being physically or mentally incapable of employment, resulting in a financial hardship that would make repayment infeasible. The physician's certification would need to indicate that the individual's extreme financial hardship condition is expected to continue and would likely make repayment infeasible for the succeeding five years.

(c) An institution shall maintain documentation justifying the deferral of repayments or the forgiveness of emergency loans for review by the State Auditor.

§21.4.Collection of Tuition.

(a) Unless a student's payment due date has been postponed due to pending disbursements of financial aid as described in Subsection (b), of this section, the following conditions shall apply in the collection of tuition and/or tuition and fees at institutions of higher education and in the conducting of enrollment audits.

(1) On or before the dates for reporting official enrollments to the Texas Higher Education Coordinating Board each enrollment period, each community college shall collect in full from each student that is to be counted for formula funding purposes the amounts set as tuition by the respective governing boards.

(2) On or before the 20th class day for each regular semester and the 15th class day for each summer session, institutions other than community colleges shall collect from each student who is to be counted for state formula funding appropriations, the tuition and fees (mandatory and optional) established by state law or by the respective governing boards.

(3) Valid contracts with the United States government for instruction of eligible military personnel, approved financial assistance, and valid contracts with private business and public-service type organizations or institutions such as hospitals, may be considered as collected tuition and fees; the amount of collected tuition and fees may be adjusted pursuant to terms of the contract once actual collections are made.

(4) Returned checks must be covered by a transfer from a self-supporting auxiliary enterprise fund or other non-state fund source (e.g., food service, bookstore) within ten days of the date the institution receives the returned check in order for contact hours to be presented to the state for funding.

(5) Auxiliary enterprise or other non-state fund sources may not be reimbursed with state-provided funds.

(6) Institutions must retain records of individual student tuition or tuition and fee payment and returned checks for verification by the State Auditor.

(b) Payment Options for Students with Delayed Financial Aid.

(1) If an institution's financial aid office has awarded aid to a student but the institution has not received the relevant disbursements by the date that tuition and fees must be paid, the student's aid is delayed. If the student agrees to assign to the institution a portion of the awards equal to the amount of tuition and fees to be met with financial aid payments, the governing board may postpone the due date for the portion of the tuition and or tuition and fee payment that will be met through financial aid funds and the hours to be paid for with the financial aid may be counted for formula funding purposes.

(2) If, after the student's due date is postponed, the student becomes ineligible to receive one or more of the pending financial aid awards or the award amount is less than the amount of tuition and fees due, the governing board is to grant the student a repayment period for the unpaid amount that:

(A) does not exceed 30 days,

(B) allows for multiple payments, if necessary, and

(C) entails a processing fee not to exceed 5 percent of the total amount to be collected.

(3) An institution may deny academic credits for hours completed in the semester or term if the student fails to pay the full tuition and fee amount by the end of the 30-day repayment period.

(c) A student paying tuition and fees by installments shall be granted the options of delayed payment outlined in Subsection (b) of this section (relating to Payment Options for Students with Delayed Financial Aid) if he or she is awaiting the disbursement of financial aid.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505128

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter B. DETERMINING RESIDENCE STATUS

19 TAC §21.23

The Texas Higher Education Coordinating Board adopts amendments to §21.23 concerning Determining Residence Status, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5482). Specifically, the amendment would allow employees of the Department of Defense, the U.S. Armed Forces, and the Public Health Service who entered their service as residents of Texas to retain their residency status even though they may be required to remain out of state for more than five years. By statute, these persons are entitled to automatic admissions if they graduate in the top 10 percent of a Department of Defense high school and are eligible to receive loans through the B-On-Time Student Loan Program.

No comments were received regarding the amendments.

The amendment is adopted under the Texas Education Code, §54.053, which provides the Coordinating Board with the authority to issue rules, regulations and interpretations with respect to resident status.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505129

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter C. HINSON-HAZLEWOOD COLLEGE STUDENT LOAN PROGRAM

19 TAC §§21.53 - 21.56, 21.58, 21.62

The Texas Higher Education Coordinating Board adopts amendments to §§21.53, 21.54, 21.55, 21.56, 21.58, and 21.62 concerning the Hinson-Hazlewood College Student Loan Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5483). Texas Education Code, §52.31 and §52.32, was amended by Senate Bill 1227, 79th Texas Legislature, to permit additional institutions or entities to participate in the program, to change the eligibility requirements for borrowers under the program and to increase the period of time for repayment. In addition to the changes required by statute, the amendments provide additional definitions and require that the loan amount be tied to the annual cost of attendance. Specifically, the amendment to §21.53 (Definitions) adds definitions for approved Alternative Educator Certification Program, Regional Education Service Center, and Cost of Attendance. The amendment to §21.54 (Participating Institutions) permits entities, such as Regional Education Services Centers that offer Alternative Educator Certification Programs, to participate in the program. The amendments to §21.55 (Eligibility of Students) clarify the qualifications of students enrolled in career schools and colleges and removes the outdated and unnecessary requirement for a spouse's signature on the promissory note for a married borrower. The amendment to §21.56 (Requirements of Cosigner/Accommodation Party) removes the outdated and unnecessary requirement for a spouse's signature on the promissory note for a married cosigner. The amendments to §21.58 (Amount of Loan) and §21.62 (Repayment of Loans) are proposed in response to the need for increased loan limits to meet current costs of higher education and to set loan terms that are consistent with general practice by issuers of student loans.

No comments were received regarding the amendments.

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

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505130

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter E. TEXAS B-ON-TIME LOAN PROGRAM

19 TAC §21.122, §21.124

The Texas Higher Education Coordinating Board adopts amendments to §21.122 and §21.124 concerning loan forgiveness for Texas B-On-Time loans, without changes to the proposed text as published in the August 12, 2005, issue of the Texas Register (30 TexReg 4530). The amendments permit certain military dependents that are entitled to pay resident tuition rates to receive a B-On-Time loan. Currently, loan eligibility is limited to students who are Texas residents and who graduated from a Texas high school. The amendments provide that a military dependent who graduated from a Department of Defense high school not earlier than the 2002 - 2003 school year and who, at the time of graduation, was a dependent of a member of the U.S. armed forces, is eligible for the Texas B-On-Time loan.

No comments were received regarding the amendments.

The amendments are adopted under the Texas Education Code, §56.451 - 56.465, which provides the Coordinating Board authority to establish procedures to administer this program; the Texas Education Code, §61.027, which provides the Coordinating Board authority to adopt rules to effectuate the provisions of the Texas Education Code.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505131

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: August 12, 2005

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


19 TAC §21.129

The Texas Higher Education Coordinating Board adopts an amendment to §21.129 concerning loan forgiveness for Texas B-On-Time loans, with changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5485). Specifically, the amendment provides that the following course hours shall be excluded in counting course hours for purposes of loan forgiveness requirements: credit earned by examination, dual-credit course hours, and hours earned for developmental coursework that an institution required the student to take under Texas Education Code, §51.3062, or under the former provisions of Texas Education Code, §51.306.

The following comments were received regarding the amendments.

Comment: Stephen F. Austin University and Texas A&M University commented that the legislative change does not exclude transfer hours from the calculation for loan forgiveness.

Response: The Board agreed with this comment and §21.129(2) has been changed to include transfer hours when calculating the number of hours counted toward loan forgiveness.

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

§21.129.Forgiveness of Loans.

A Texas B-On-Time loan shall be forgiven if the student is awarded an undergraduate degree or certificate from an eligible institution, and the student either:

(1) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, and received:

(A) a baccalaureate degree within four calendar years after the date the student initially enrolled in an eligible institution;

(B) a baccalaureate degree within five calendar years after the date the student initially enrolled in an eligible institution, if the degree is in architecture, engineering, or any other program determined by the Board to require more than four years to complete;

(C) a degree or certificate from a two-year program within two calendar years after the date the student initially enrolled in an eligible institution

(D) a certificate from a one-year program within one calendar year after the date the student initially enrolled in an eligible institution; or

(2) graduated with a B average, or the equivalent of a cumulative grade point average of at least 3.0 on a four-point scale, with a total number of course credit hours, including transfer credit hours and hours earned exclusively by examination, and excluding dual credit course hours, and hours earned for developmental coursework that an institution required the student to take under Texas Education Code, §51.3062 (relating to Success Initiative), or under the former provisions of Texas Education Code, §51.306 (relating to Texas Academic Skills Program), that is not more than:

(A) six hours more than the number of credit hours required to complete a two-year certificate or a baccalaureate degree; or

(B) three hours more than the number of credit hours required to complete a one-year certificate.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505132

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter M. TEXAS COLLEGE WORK-STUDY PROGRAM

19 TAC §§21.401 - 21.404

The Texas Higher Education Coordinating Board adopts amendments to §§21.401 - 21.404 concerning the Texas College Work-Study Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5486). Senate Bill 1227 and House Bill 1172, 79th Legislature, Regular Session, amended Texas Education Code §56.076 and §56.079, changing several provisions of the Texas College Work-Study Program. Specifically, §21.402 provides definitions for terms that are used in this subchapter. §21.403 mentions the new mentorship program, requires institutions to notify the Board if their accrediting agency places them on probation, and establishes penalties for institution that fail to return unused work-study funds to the Board in a timely manner. §21.404 describes the eligibility requirements for students who are employed in the general work-study program or the new mentorship program, and §21.405 describes the students who may receive mentoring through the new program.

No comments were received regarding the amendments.

The amendments are adopted under the Texas Education Code, §56.077, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §§56.071 - 56.079.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505133

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


19 TAC §§21.405 - 21.408

The Texas Higher Education Coordinating Board adopts the repeal of §§21.405 - 21.408, concerning the Texas College Work-Study Program, without changes to the proposal as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5488).

Specifically, these sections are being repealed and new §§21.405 - 21.411 are being adopted simultaneously.

No comments were received regarding the repeal.

The repeal is adopted under the Texas Education Code, §56.077, which provides the Coordinating Board with the authority to adopt any rules necessary to enforce the requirements, conditions and limitations of Texas Education Code, §§56.071 - 56.079.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505135

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


19 TAC §§21.405 - 21.411

The Texas Higher Education Coordinating Board adopts new §§21.405 - 21.411, concerning the Texas College Work-Study Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5488).

Senate Bill 1227 and House Bill 1172, 79th Legislature, Regular Session, amended Texas Education Code §56.076 and §56.079, changing several provisions of the Texas College Work-Study Program. Specifically, §21.405 identifies the students who may receive mentoring through the new mentorship program. Section 21.406 describes the eligibility requirements for entities that employ students through the general work-study program and the mentorship program. Section 21.407 indicates that when awarded, a person's work-study award may not exceed his or her financial need, that funds received through the work-study program must be used to meet the costs related to attending college, and that the Board will allow a limited portion of a student's award to be used in his or her training to function as a mentor. Section 21.408 describes the process of allocating and reallocating funds among participating institutions. Section 21.409 affirms the Board's responsibility in disseminating information and rules for the program. Section 21.410 identifies the data elements that institutions will have to report to the Board regarding the participants in the mentorship program and the success of the program. Section 21.411 reflects the ability of institutions to transfer the lesser of 10 percent or $10,000 between the Tuition Equalization Grant Program, Toward EXcellence, Access and Success Grant Program and the Texas College Work-Study Program.

No comments were received regarding the new sections.

The new sections are adopted under the Texas Education Code, §56.077, which provides the Coordinating Board with the authority to adopt any rules necessary to enforce the requirements, conditions and limitations of Texas Education Code, §§56.071 - 56.079.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505134

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


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

19 TAC §§21.727 - 21.735

The Texas Higher Education Coordinating Board adopts new §§21.727 - 21.735, concerning Determination of Resident Status and Waiver Programs for Certain Nonresident Persons. Sections 21.727, 21.728, 21.730 - 21.733, and 21.735 are adopted with changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5490). Section 21.729 and §21.734 are adopted without changes to the proposed text as published.

Senate Bill 1528, 78th Texas Legislature, Regular Session, enacted Texas Education Code, §§54.0501 - 54.075, establishing new parameters to determine if a person is a Texas resident for tuition purposes at institutions of higher education. These new sections implement those parameters, significantly simplifying the process for a majority of students attending those institutions. Specifically, new §21.728 provides definitions for terms that are used in this subchapter and §21.729 provides that the new sections shall be applied beginning with enrollments for the Fall Semester 2006. Section 21.730 sets out a relatively simple method for classification as a Texas resident by showing residence in the state for 36 months leading to high school graduation, or the receipt of the graduation equivalency diploma, and continuous residency in the state for 12 months prior to the census date of the semester in which the student seeks to enroll. For a person who cannot qualify under this provision, this section provides that, in order to be classified as a Texas resident, the person must have established a domicile in Texas more than 12 months before the census date and have maintained a residence in Texas continuously for the 12 months preceding the census date. Section 21.730 also lists those persons, in addition to U.S. citizens, who, under federal law, are permitted to establish a domicile. To initially establish resident status, a person may only be asked certain "core" questions and, under §21.731, the institutions are required to determine residency based solely on answers to these "core residency questions" and supporting documents, if required. Section 21.732 provides that a person who was classified as a Texas resident for any part of the FY 2006 state fiscal year will not be affected by these new sections. Importantly, this section also provides that any person classified as a Texas resident under these rules maintains that status, even if the person transfers to another institution, unless the person has been out of school for as much as two regular semesters. A person is required, however, under §21.733, to provide additional or changed information which may affect his or her resident or nonresident tuition classification to the institution. If the failure to provide such information results in the payment of resident tuition by a person who is not entitled to do so, the person will be liable to the institution for the difference in tuition. The waiver programs under which nonresident persons pay Texas resident tuition have been revised in §21.735. Some changes were made to align the programs with the statutory provisions. For example, §21.735(5)(B), clarifies that a person who resides in any state may pay a lowered nonresident tuition at a general academic teaching institution located within 100 miles of the Texas border, if the institution meets certain criteria. The waiver program for ROTC Members is excluded from the list of waiver programs because there is no statutory authority for that waiver of nonresident tuition.

The following comments were received regarding the new sections:

Comment: Tarrant County College suggested the definition of "Census date" in §21.728 should not include the words "to the Board" because flex entry classes are not reported to the Board until the semester following the term in which they are taken (due to their delayed starting date).

Response: The Board agreed with this comment, and §21.728 has been changed as a result of this comment.

Comment: The University of Texas System Office suggested that references to "Texas resident" be changed to "Texas resident for tuition purposes" in §21.728(3) regarding Definitions (definition of Core Residency Questions), §21.731(a) and (d) regarding Information Required to Initially Establish Resident Status, §21.732(c) regarding Continuing Resident Students, and §21.734(b) regarding Reclassification Based on Additional or Changed Information.

Response: The Board does not recommend that changes be made as a result of this comment because classification as a resident impacts not only the tuition rate to be paid by a student, but also his or her eligibility for state financial aid.

Comment: The University of Texas System Office suggested the addition of definitions for "Established a Domicile in Texas" and "Residence" to §21.728 for use in describing the conditions for establishing residency. The suggested definition of "Established a Domicile in Texas" included a list of actions that would document the establishment of a domicile.

Response: The Board agreed with this comment and added definitions for "Established a Domicile in Texas" and "Residence" to §21.728. The list of actions for establishing a domicile has been included in §21.730(d).

Comment: The University of Texas System Office suggested the introductory line to §21.730(a) be changed from simply indicating certain persons shall be entitled to pay resident tuition to also indicating they shall be classified as Texas residents.

Response: The Board agreed with this comment and changed the introductory line of §21.730(a) to state that the persons shall be classified as Texas residents.

Comment: The University of Texas System Office suggested the word "immediately" be inserted in §21.730(a)(1)(B)(i).

Response: The Board agreed with this comment and §21.730(a)(1)(B)(i) has been changed to insert this word.

Comment: The University of Texas System Office suggested §21.730(a)(2)(B) and (3)(B) be changed from "maintain a residence continually" to "maintain a domicile continuously."

Response: The Board agreed with this comment and changed the term "continually" to "continuously" but did not recommend that the term "residence" be substituted for the term "domicile." The requirement to establish a domicile is described in §21.730(a)(2)(A) and (3)(A), and the emphasis at this point in the rules is on the person's physical presence in the state during the 12 months prior to enrollment.

Comment: The University of Texas System Office suggested that §21.730 should require the establishment of a domicile and the maintenance of that domicile for at least 12 months.

Response: The Board recognizes that the basis of a domicile is a single act, such as the purchase of property or a business or acquisition of a license to conduct business and that those acts should occur at least 12 months prior to the census date of the student's enrollment and continue through the date of enrollment. The Board also recognizes that a lease of real property and gainful employment must occur within the 12 months prior to enrollment. However, the Board does not recommend that any change be made to §21.730 as a result of this comment because changes recommended to Parts A, B and C of Chart IV, which is incorporated into §21.731(b), clarify the temporal relationships of the required actions.

Comment: The University of Texas System Office suggested the use of the term "non-U.S. citizens" in the lead sentence of §21.730(b).

Response: The Board agreed with this comment and §21.730(b) has been changed as a result of this comment.

Comment: The Mexican American Legal Defense and Educational Fund and the University of Houston suggested §21.728(6) and §21.730(b)(2) be changed to specifically describe the immigration status of eligible Permanent Resident applicants.

Response: The Board agreed with this comment and §21.728(6) and §21.730(b)(2) have been changed to specifically describe the immigration status of an eligible applicant.

Comment: The Mexican American Legal Defense and Educational Fund suggested a correction in capitalization and an addition to §21.730(b)(6). Previously, the section dealt with persons who have filed an application for cancellation of removal or adjustment of status under the Nicaraguan and Central American Relief Act (NACARA), the Haitian Refugee Immigrant Fairness Act (HRIFA), or the Cuban Adjustment Act who have been issued a fee/filing receipt or Notice of Action by the U.S. Citizenship and Immigration Services. The Mexican American Legal Defense and Educational Fund suggested the name of the form be capitalized, and the addition of persons who have filed an application for Cancellation of Removal or Adjustment of Status under the Immigration Nationality Act 240(A)(b).

Response: The Board agreed with this comment and §21.730(b)(6) has been changed as a result of this comment.

Comment: The University of Texas System Office suggested that the citation for the Special Immigrant Juvenile Program--8 USC 1101(a)(27)(J)--be added to §21.730(b)(7).

Response: The Board agreed with this comment and added the citation to §21.730(b)(7).

Comment: The University of Texas System Office suggested that the phrase "that he or she is a domiciliary of this state" be substituted for "resident status."

Response: The Board agreed with this comment and §21.730(e) has been changed as a result of this comment.

Comment: The University of Texas System Office suggested that the phrase "or for educational purposes" be added to §21.730(e) to clarify that persons who are out of the state for educational purposes may continue to claim that he or she is a domiciliary of this state.

Response: The Board agreed with this comment and §21.730(e) has been changed to add this phrase.

Comment: A commenter pointed out that §21.731(b) included the word "attached" twice.

Response: The Board agreed with this comment and §21.731(b) has been changed to delete the duplicated word.

Comment: Texas A&M University commented that the cross-reference to §21.730(a) in §21.731(c) should have been limited to §21.730(a)(1).

Response: The Board agreed with this comment and the reference has been changed from §21.730(a) to §21.730(a)(1).

Comment: The University of Texas System Office commented that the definition of "gainful employment" in §21.731(a) and the inclusion of leased property as a basis for establishing domicile in §21.733(a) would cause additional students to qualify to pay the resident tuition rate.

Response: The Board does not recommend that these sections be changed as a result of this comment. The proposed definition of "gainful employment" is the same as the current definition, and the Board does not believe it will increase the number of residents. In addition, the Board believes it is important to recognize the vagaries of the current job market and the variety of circumstances under which people come to Texas. By including the leasing of real property as a basis of establishing a domicile, more students may be able to establish residency after residing in the state for at least a year, but it is important to include this option for less wealthy persons who come to the state and are not in a position to purchase real property or businesses. In order to increase the validity of this approach to establishing a domicile, Part B of Chart IV, which is incorporated into §21.731(b), has been changed to indicate that if leasing is used as the approach to establish a domicile, the individual must also accomplish three of the steps listed in Part D in order to demonstrate 12 months in the state.

Comment: The University of Texas System Office suggested language for §21.732(b) and (c) to simply indicate a person's previous classification would apply at any institution and that if an individual is out of school for as much as two regular semesters, he or she will have to satisfy all the requirements for establishing resident status.

Response: The Board agreed with this comment and §21.732(b) and (c) have been changed as a result of this comment.

Comment: The University of Texas System Office suggested the use of the verb "reclassify" in §21.733(a) and (c) when discussing the change of status from resident to nonresident or vice versa.

Response: The Board agreed with this comment and §21.733(a) and (c) have been changed as a result of this comment.

Comment: The University of Texas System Office suggested that the circumstances that entail an "erroneous classification" in §21.734 be clarified so the requirement to reimburse students who have been improperly billed as nonresidents can be determined. The suggested wording would limit restitution to circumstances when a student specifically asked for reclassification and is denied.

Response: The Board does not recommend that this section be changed as a result of this comment. The intent is for students to be refunded excess tuition if the information they provide their institution is incorrectly interpreted and they are improperly classified as nonresidents. The goal is to give the student the same ability to obtain a refund as the institution has when the student is erroneously classified as a resident. An error made when the student first applies for admission, if discovered when the student later applies for reclassification, should still be subject to restitution for the student.

Comment: A commenter pointed out that subparagraphs (H) and (J) of §21.735(10) were wrongly lettered. They should be subparagraphs (G) and (H).

Response: The Board agreed with this comment and §21.735(10) has been changed to make this correction.

Comment: The University of Texas System Office suggested the use of the term "Non-immigrant alien" rather than "Foreign persons" in the description of NATO Forces in §21.735(10).

Response: The Board agreed with this comment and §21.735(10)(G) has been changed as a result of this comment.

Comment: A commenter suggested that more instructions regarding the name of the institution previously attended by the student be provided in Chart II, Part B (2), which is incorporated into §21.728(3).

Response: The Board agreed with this comment and Chart II, Part B (2), which is incorporated into §21.728(3), has been changed to add instructions that the student is to give the full name of the public Texas institution, not just its initials.

Comment: A commenter suggested more concise language for Chart II, Part B (4), which is incorporated into §21.728(3), to clarify the question.

Response: The Board agreed with this comment and Chart II, Part B (4), which is incorporated into §21.728(3), has been changed as a result of this comment.

Comment: The University of Texas suggested that Chart II, Part B, which is incorporated into §21.728(3), ask whether or not the student paid the resident tuition rate due to classification as a resident or as a result of a waiver of nonresident tuition and require the student to provide his or her receiving institution information about the receipt of a waiver at the previous institution.

Response: The Board agrees and question 5 has been added to Chart II, Part B, which is incorporated into §21.728(3), with the expectation that the receiving institution will still need to check the previous classification of all students claiming to have been classified as a resident.

Comment: The University of Texas System Office suggested the use of the term "physically reside" in Chart II, Part D and Part F, which is incorporated into §21.728(3), rather than the term "lived."

Response: No changes were made as a result of this comment because the term "lived" is simpler and easily understood.

Comment: A commenter suggested the conditions under which an individual is eligible to be claimed as a dependent for federal income tax purposes be clarified in Chart II, Part E (2), which is incorporated into §21.728(3).

Response: The Board agreed with this comment and Chart II, Part E (2), which is incorporated into §21.728(3), has been changed as a result of this comment.

Comment: A commenter pointed out that no instruction had been provided for persons answering "no" to (1) and (2) and "other" to question (3) of Chart II, Part E, which is incorporated into §21.728(3).

Response: The Board agreed with this comment and Chart II, Part E, which is incorporated into §21.728(3), has been changed to add an instruction for this situation.

Comment: The Mexican American Legal Defense and Educational Fund and the University of Houston suggested a change in Chart II, Part F (2) and Part G (2), which is incorporated into §21.728(3), to clarify what documentation a person must have to prove that his or her application for Permanent Resident Status has been approved.

Response: The Board agreed with this comment and Chart II, Part F (2) and Part G (2), which is incorporated into §21.728(3), has been changed as a result of this comment.

Comment: A commenter pointed out that question 7 of Part F and question 7 of Part G of Chart II, which is incorporated into §21.728(3), did not correspond with the documentation outlined in Chart IV, which is incorporated into §21.731(b).

Response: The Board agreed with this comment and changed question 7 in both Part F and G, added questions 8 and 9 to Part F, and added question 8 to Part G to more directly correspond to Chart IV, which is incorporated into §21.731(b).

Comment: A commenter asked how an individual who was temporarily out of the state due to an employment assignment would indicate this in Chart II, which is incorporated into §21.728(3).

Response: The Board agreed and questions F4 and G4 of Chart II, which is incorporated into §21.728(3), have been changed to include instructions to provide an explanation in Part H if the person or the person's parent currently does not live in the state due to a temporary employment assignment out of state.

Comment: A commenter pointed out an error in Item 4 of Chart III, which is incorporated into §21.731(c), the Affidavit, in which the phrase "have resided or will have registered" should have been "have resided or will have resided."

Response: The Board agreed with this comment and changed item 4 of Chart III, which is incorporated into §21.731(c), as a result of this comment.

Comment: A commenter suggested Item 5 of Chart III, which is incorporated into §21.731(c), the Affidavit, would read better if the opening clauses were reversed, with the present tense given prior to the future tense.

Response: The Board agreed with this comment and Item 5 of Chart III, which is incorporated into §21.731(c), has been changed as a result of this comment.

Comment: The Residency Advisory Committee recommended a reorganization of the information provided in Chart IV, which is incorporated into §21.731(b). It recommended dropping the first "Support" in the Chart's title. It also suggested that the documents for supporting the establishment of a domicile could be broken down into three types: stand-alone actions that meet both the action and the durational requirements to establish a domicile; leasing for 12 months, which requires an additional three actions showing ties to the state; and single domiciliary actions that need to be accompanied by evidence of 12 months' residence in the state.

Response: The Board agreed with this comment and changed the name of Chart IV which is incorporated into §21.731(b), and split Part A of Chart IV into three parts, as suggested by the committee.

Comment: The Residency Advisory Committee suggested the title of Part B of Chart IV, which is incorporated into §21.731(b) (renumbered as Part D due to the split of Part A as described above), be changed to indicate that the list is a list of documents that demonstrate the maintenance of a residence, rather than establish the maintenance of a residence.

Response: The Board agreed with this comment and the name of Part B of Chart IV, which is incorporated into §21.731(b) (renumbered as Part D due to the split of Part A as described above), has been changed.

Comment: The Residency Advisory Committee pointed out that a property tax receipt--previously listed as Part B (1)--does not reflect a 12-month period and that the lease of property (previously listed as Part B (8)) had been included both in Part A and in Part B of the original chart.

Response: The Board agreed and Item 1 (property tax receipt) and Item 8 (lease of real property) have been deleted from Chart IV, which is incorporated into §21.731(b).

The new sections are adopted under the Texas Education Code, §54.075, which provides the Coordinating Board with the authority to adopt rules to carry out the purposes of Texas Education Code, §§54.0501 - 54.075.

§21.727.Authority and Purpose.

Texas Education Code, §54.075, requires the Board to adopt rules to carry out the purposes of Texas Education Code, Subchapter B, concerning the determination of resident status for tuition purposes.

§21.728.Definitions.

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

(1) Census date--the date in an academic term for which an institution is required to certify a person's enrollment in the institution for the purposes of determining formula funding for the institution.

(2) Coordinating Board or Board--the Texas Higher Education Coordinating Board.

(3) Core Residency Questions--the questions promulgated by the Board and described in Chart II, which is incorporated into this subchapter for all purposes, to be completed by a person and used by an institution to determine if the person is a Texas resident.

(4) Dependent--a person who:

(A) is less than 18 years of age and has not been emancipated by marriage or court order; or

(B) is eligible to be claimed as a dependent of a parent of the person for purposes of determining the parent's income tax liability under the Internal Revenue Code of 1986.

(5) Domicile--a person's principal, permanent residence to which the person intends to return after any temporary absence.

(6) Eligible for Permanent Resident Status--a person who has filed an I-485 application for permanent residency and has been issued a fee/filing receipt or notice of action.

(7) Established a domicile in Texas--a person has established a domicile in Texas if he or she has met the conditions shown in §21.730(d) of this title (relating to Determination of Resident Status).

(8) Eligible Nonimmigrant--a person who has been issued a type of nonimmigrant visa by the USCIS that permits the person to establish a domicile in the United States.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

§21.730.Determination of Resident Status.

(a) The following persons shall be classified as Texas residents and entitled to pay resident tuition at all institutions of higher education:

(1) a person who:

(A) graduated from a public or accredited private high school in this state or received the equivalent of a high school diploma in this state, and

(B) maintained a residence continuously in this state for:

(i) the thirty-six months immediately preceding the date of graduation or receipt of the diploma equivalent, as applicable; and

(ii) the 12 months preceding the census date of the academic semester in which the person enrolls in an institution.

(2) a person who:

(A) established a domicile in this state not less than 12 months before the census date of the academic semester in which the person enrolls in an institution; and

(B) maintained a residence continuously in the state for the 12 months immediately preceding the census date of the academic semester in which the person enrolls in an institution.

(3) a dependent whose parent:

(A) established a domicile in this state not less than 12 months before the census date of the academic semester in which the person enrolls in an institution; and

(B) maintained a residence continuously in the state for the 12 months immediately preceding the census date of the academic semester in which the person enrolls in an institution.

(b) The following non-U.S. citizens may establish a domicile in this state for the purposes of subsection (a)(2) or (3) of this section:

(1) a Permanent Resident;

(2) a person who is eligible for permanent resident status, as defined in §21.728(6) of this title (relating to Definitions);

(3) an eligible nonimmigrant that holds one of the types of visas listed in Chart I and incorporated into this subchapter for all purposes;

Figure: 19 TAC §21.730(b)(3)

(4) a person classified by the USCIS as a Refugee, Asylee, Parolee, Conditional Permanent Resident, or Temporary Resident;

(5) a person holding Temporary Protected Status, and Spouses and Children with approved petitions under the Violence Against Women Act (VAWA), an applicant with an approved USCIS I-360, Special Agricultural Worker, and a person granted deferred action status by USCIS;

(6) a person who has filed an application for Cancellation of Removal and Adjustment of Status under Immigration Nationality Act 240A(b) or a Cancellation of Removal and Adjustment of Status under the Nicaraguan and Central American Relief Act (NACARA), Haitian Refugee Immigrant Fairness Act (HRIFA), or the Cuban Adjustment Act, and who has been issued a fee/filing receipt or Notice of Action by USCIS; and

(7) a person who has filed for adjustment of status to that of a person admitted as a Permanent Resident under 8 United States Code 1255, or under the "registry" program (8 United States Code 1259), or the Special Immigrant Juvenile Program (8 USC 1101(a)(27)(J)) and has been issued a fee/filing receipt or Notice of Action by USCIS.

(c) The domicile of a dependent's parent is presumed to be the domicile of the dependent unless the dependent establishes eligibility for resident tuition under subsection (a)(1) of this section.

(d) A domicile in Texas is presumed if, at least 12 months prior to the census date of the semester in which he or she is to enroll, the person owns real property in Texas, owns a business in Texas, is married to a person who has established a domicile in Texas; or has executed a currently-valid Last Will and Testament that has been deposited with a county clerk in Texas, indicating the person is a resident of Texas. Gainful employment other than work-study and other such student employment can also be a basis for establishing a domicile.

(e) The temporary absence of a person or a dependent's parent from the state for the purpose of service in the U.S. Armed Forces, Public Health Service, Department of Defense, U.S. Department of State, as a result of an employment assignment, or for educational purposes, shall not affect a person's ability to continue to claim that he or she is a domiciliary of this state. The person or the dependent's parent shall provide documentation of the reason for the temporary absence.

(f) The temporary presence of a person or a dependent's parent in Texas for the purpose of service in the U.S. Armed Forces, Public Health Service, Department of Defense or service with the U.S. Department of State, or as a result of any other type of employment assignment does not preclude the person or parent from establishing a domicile in Texas.

§21.731.Information Required to Initially Establish Resident Status.

(a) To initially establish resident status under §21.730 of this title (relating to Determination of Resident Status), a person shall provide the institution with a completed set of Core Residency Questions as described in Chart II, which is incorporated into §21.728(3) of this title (relating to Definitions).

Figure: 19 TAC §21.731(a) (.pdf)

(b) An institution may request that a person provide documentation to support the answers to the Core Residency Questions. A list of appropriate documents is described in Chart IV of §21.733(a) of this title (relating to Reclassification Based on Additional or Changed Information), and incorporated into this subchapter for all purposes.

(c) If a person who establishes resident status under §21.730(a)(1) of this title is not a Citizen of the United States or a Permanent Resident, the person shall, in addition to the other requirements of this section, provide the institution with a signed affidavit, stating that the person will apply to become a Permanent Resident as soon as the person becomes eligible to apply. The affidavit shall be required only when the person applies for resident status and shall be in the form described in Chart III and incorporated into this subchapter for all purposes.

Figure: 19 TAC §21.731(c) (.pdf)

(d) An institution shall not impose any requirements in addition to the requirements established in this section for a person to establish resident status.

§21.732.Continuing Resident Status.

(a) Except as provided under subsection (c) of this section, a person who was enrolled in an institution for any part of the 2006 state fiscal year and who was classified as a resident of this state under Chapter 54, Subchapter B, Texas Education Code, in the last academic period of that year for which the person was enrolled is considered to be a resident of this state for purposes of this subchapter, as of the beginning of the fall semester, 2006.

(b) Except as provided by subsection (c) of this section, a person who has established resident status under this subchapter is entitled to pay resident tuition in each subsequent academic semester in which the person enrolls at any institution.

(c) A person who enrolls in an institution after two or more consecutive regular semesters during which the person is not enrolled in a public institution shall submit the information required in §21.731 of this title (relating to Information Required to Initially Establish Resident Status), and satisfy all the applicable requirements to establish resident status.

§21.733.Reclassification Based on Additional or Changed Information.

(a) If a person is initially classified as a nonresident based on information provided through the set of Core Residency Questions, the person may request reclassification by providing the institution with supporting documentation as described in Chart IV, which is incorporated into §21.731(b) of this title (relating to Information Required to Initially Establish Resident Status).

Figure: 19 TAC §21.733(a)

(b) A person shall provide the institution with any additional or changed information which may affect his or her resident or nonresident tuition classification under this subchapter.

(c) An institution may reclassify a person who had previously been classified as a resident or nonresident under this subchapter based on additional or changed information provided by the person.

(d) Any change made under this section shall apply to the first succeeding semester in which the person is enrolled, if the change is made on or after the census date of that semester. If the change is made prior to the census date, it will apply to the current semester.

§21.735.Waiver Programs for Certain Nonresident Persons.

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

(1) Economic Development and Diversification Program.

(A) A nonresident person, (including a Citizen, a Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) whose family has been transferred to Texas by a company under the state's Economic Development and Diversification Program, and a person's spouse and children shall pay resident tuition as soon as they move to Texas, if the person provides the institution with a letter of intent to establish Texas as his/her home. A person who moves to Texas to attend an institution before his/her family is transferred is permitted to pay the resident tuition beginning with the first semester or term after the family moves to the state.

(B) After the family has maintained a residence in Texas for 12 months, the person may request a change in classification in order to pay resident tuition.

(C) A current list of eligible companies is maintained on the Coordinating Board web site at www.collegefortexans.com.

(2) Program for Teachers, Professors, their Spouses and Dependents.

(A) A nonresident person (including a Citizen, Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) employed as a teacher or professor at least half time on a regular monthly salary basis (not as hourly employee) by an institution shall pay resident tuition at any institution in the state and the spouse and dependent children of the nonresident person shall also pay resident tuition.

(B) This waiver program is applicable only during the person's periods of employment.

(C) If a spouse or dependent child of the teacher or professor attends an institution other than the employing institution, the employing institution shall provide a letter to the spouse or child's institution verifying the employment of the teacher or professor.

(3) Program for Teaching Assistants and Research Assistants, their Spouses and Dependents.

(A) A nonresident person (including a Citizen, Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) employed by an institution as a teaching or research assistant on at least a half-time basis in a position related to his/her degree program shall pay resident tuition at any institution in this state and the spouse and dependent children of the nonresident person shall also pay resident tuition.

(B) The employing institution shall determine whether or not the person's employment relates to the degree program.

(C) If a spouse or dependent child of the teacher or professor attends an institution other than the employing institution, the employing institution shall provide a letter to the spouse or child's institution verifying the employment of the teaching or research assistant.

(D) This waiver program is applicable only during the person's periods of employment.

(4) Program for Competitive Scholarship Recipients.

(A) A nonresident person (including a Citizen, Permanent Resident of the U.S., a person who is eligible to be a Permanent Resident of the U.S., and an eligible nonimmigrant) who receives a competitive scholarship from the institution is entitled to pay resident tuition.

(B) In order for the person to be eligible for this waiver program, the competitive scholarship must:

(i) total at least $1,000 for the period of time covered by the scholarship, not to exceed 12 months; and

(ii) be awarded by a scholarship committee authorized in writing by the institution's administration to grant scholarships that permit this waiver of nonresident tuition; and

(iii) be awarded according to criteria published in the institution's paper or electronic catalog, available to the public in advance of any application deadline; and

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

(v) permit awards to both resident and nonresident persons.

(C) The scholarship award shall specify the semester or semesters for which the scholarship is awarded and a waiver of nonresident tuition under this provision shall not exceed the semester or semesters for which the scholarship is awarded.

(D) If the scholarship is terminated for any reason prior to the end of the semester or semesters for which the scholarship was initially awarded, the person shall pay nonresident tuition for any semester following the termination of the scholarship.

(E) The total number of persons receiving a waiver of nonresident tuition in any given semester under this provision shall not exceed 5 percent of the students enrolled in the same semester in the prior year in that institution.

(F) 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 person 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 institutions awards a competitive scholarship to a person, the person is entitled to a waiver of nonresident tuition at the second institution.

(G) If a nonresident person is awarded a competitive academic scholarship or stipend under this provision and the person 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) Programs for Lowered Tuition for Individuals from Bordering States or Mexico.

(A) Programs that Require Reciprocity. Waivers of nonresident tuition made through each of the following three programs for persons from states neighboring Texas must be based on reciprocity and the institution shall not grant these waivers unless the institution has been provided with a current written agreement with a similar institution in the other state, agreeing to lower tuition for Texas students attending that institution. A participating Texas institution shall file a copy of such agreements with the Board and the agreements shall not be more than 2 years old. The amount of tuition charged shall not be less than the Texas resident tuition rate.

(i) Persons residing in New Mexico, Oklahoma, Arkansas or Louisiana may pay a lowered nonresident tuition when they attend Texas A&M--Texarkana, Lamar State College--Port Arthur, Lamar State College--Orange or any public community or technical college located in a county adjacent to their home state.

(ii) Persons residing in New Mexico and Oklahoma may pay a lowered nonresident tuition when they attend a public technical college located within 100 miles of the border of their home state.

(iii) Persons residing in counties or parishes of New Mexico, Oklahoma, Arkansas or Louisiana adjacent to Texas may pay a lowered nonresident tuition at any institution.

(iv) If a person or a dependent child's family moves to Texas from a bordering state after the person or dependent child has received a waiver of nonresident tuition based on reciprocity as described in this section, the person is eligible for a continued waiver of nonresident tuition for the 12-month period after the relocation to Texas.

(B) Programs That Do Not Require Reciprocity.

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

(I) the governing board of the institution approves the tuition rate as in the best interest of the institution and finds that such a rate will not cause unreasonable harm to any other institution; and

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

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

(C) Programs for Residents of Mexico. Subject to the following provisions, persons who are currently residents of Mexico and those persons who are temporarily residing outside of Mexico but with definite plans to return to Mexico shall pay resident tuition.

(i) An unlimited number of residents of Mexico who have demonstrated financial need and attend a general academic teaching institution or a component of the Texas State Technical College System, if the institution or component is located in a county adjacent to Mexico, Texas A&M University--Corpus Christi, Texas A&M University--Kingsville, the University of Texas at San Antonio, or Texas Southmost College shall pay resident tuition.

(ii) A limited number of residents of Mexico who have financial need may attend a general academic teaching institution or campus of the Texas State Technical College System located in counties not adjacent to Mexico and pay resident tuition. This waiver program is limited to the greater of two students per 1000 enrollment, or 10 students per institution.

(iii) An unlimited number of residents of Mexico who have demonstrated financial need and register in courses that are part of a graduate degree program in public health conducted by an institution in a county immediately adjacent to Mexico shall pay resident tuition.

(6) Program for the beneficiaries of the Texas Tomorrow Fund. A person who is a beneficiary of the Texas Tomorrow Fund shall pay resident tuition and required fees for semester hours paid under the prepaid tuition contract. If the person is not a Texas resident, all tuition and fees not paid under the contract shall be paid at the nonresident rate.

(7) Program for Inmates of the Texas Department of Criminal Justice. All inmates of the Texas Department of Criminal Justice shall pay resident tuition.

(8) Program for Foreign Service Officers. A Foreign Service officer employed by the U.S. Department of State and enrolled in an institution shall pay resident tuition if the person is assigned to an office of the U.S. Department of State that is located in Mexico.

(9) Program for Registered Nurses in Postgraduate Nursing Degree Programs. An institution may permit a registered nurse authorized to practice professional nursing in Texas to pay resident tuition and fees without regard to the length of time that the registered nurse has resided in Texas, if the nurse:

(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.

(10) Programs for Military and Their Families. Members of the U.S. Armed Forces, Army National Guard, Air National Guard, Army, Air Force, Navy, Marine Corps or Coast Guard Reserves and Commissioned Officers of the Public Health Service, and their Spouses or Dependent Children.

(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, Army, Air Force, Navy, Marine Corps or Coast Guard Reserves and Commissioned Officers of the Public Health Service who are assigned to duty in Texas, and their spouses, or dependent children, shall pay resident tuition. To qualify, the person shall submit during his or her first semester of enrollment in which he or she will be using the waiver program, a statement from an appropriately authorized officer in the service, certifying that he or she (or a parent) will be assigned to duty in Texas on the census date of the term he or she plans to enroll and that he or she, if a member of the National Guard or Reserves, is not in Texas only to attend training with Texas units. Such persons shall pay resident tuition so long as they reside continuously in Texas or remain continuously enrolled in the same degree or certificate program. For purposes of this subsection, a person is not required to enroll in a summer semester to remain continuously enrolled.

(B) After Assignment to Duty in Texas. A spouse and/or dependent child of a nonresident member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who has been reassigned elsewhere after having been assigned to duty in Texas shall pay resident tuition so long as the spouse or child resides continuously in Texas. For purposes of this subsection, a person is not required to enroll in a summer semester to remain continuously enrolled.

(C) Out-of-State Military. A spouse and/or dependent child of a member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who is stationed outside of Texas shall pay resident tuition if the spouse and/or child moves to this state and files a statement of intent to establish residence in Texas with the institution that he or she attends.

(D) Survivors. A spouse and/or dependent child of a member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who died while in service, shall pay resident tuition if the spouse and/or child moves to Texas within 60 days of the date of death. To qualify, a person shall submit satisfactory evidence to the institution that establishes the date of death of the member and that the spouse and/or dependent child has established a domicile in Texas.

(E) Spouse and Dependents who Previously Lived in Texas. A spouse and/or dependent child of a member of the U.S. Armed Forces, or of a Commissioned Officer of the Public Health Service who previously resided in Texas for at least six months shall pay resident tuition, if the member or commissioned officer, at least 12 months prior to the census date of the spouse's or dependent child's enrollment in an institution:

(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; and

(ii) registered to vote in Texas, and

(iii) has satisfied a least one of the following requirements for the 12 months prior to the first day of the relevant 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 deposited with a county clerk in Texas that indicates he/she is a resident of Texas.

(F) 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/or dependent child shall pay resident tuition for any semester beginning prior to the first anniversary of separation from the military or health service, if the former member:

(i) had, at least one year preceding the census date of the term or semester, executed a document with U.S. Armed Forces or Public Health Service that is in effect on the census date of the term or semester and that changed his/her permanent residence to Texas and designated Texas as his/her place of legal residence for income tax purposes; and

(ii) had registered to vote in Texas for at least 12 months prior to the census date of the term or semester, and

(iii) provides documentation that the member has, not less than 12 months prior to the census date of the term in which he or she plans to enroll, taken the 1 of the 3 following actions:

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

(II) registered an automobile in Texas, or

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

(G) NATO Forces. Non-immigrant aliens stationed in Texas under the agreement between the parties to the North Atlantic Treaty regarding status of forces, their spouses and dependent children, shall pay resident tuition.

(H) 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 shall pay resident 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.

(11) Program for the Center for Technology Development and Transfer. Under agreements authorized by Texas Education Code, §65.45, a person employed by the entity with whom the University of Texas System enters into such an agreement, or the person's spouse or child, may pay resident tuition when enrolled in a University of Texas System institution.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505136

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter CC. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM

19 TAC §§21.953, 21.954, 21.956, 21.959

The Texas Higher Education Coordinating Board adopts amendments to §§21.953, 21.954, 21.956, and 21.959, concerning the Early High School Graduation Scholarship Program, without changes to the proposed text as published in the August 12, 2005, issue of the Texas Register (30 TexReg 4599).

Senate Bill 1227, 79th Texas Legislature, Regular Session, amended Texas Education Code, §56.203 providing that students who were on track to graduate in keeping with Early High School Graduation Scholarship requirements in 2003 (when requirements were changed), be grandfathered into the program if they graduated prior to September 1, 2005, while meeting the old program requirements. Since 2003, one of the requirements for a scholarship through the program is the completion of the Recommended High School Program or Distinguished High School Program. Prior to that time, any student who graduated within 36 months of the start of ninth grade could receive an award, regardless of the conditions of their graduation. The amendments would reflect the extension of eligibility to these students.

No comments were received regarding the amendments.

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

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505137

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: August 12, 2005

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


Subchapter II. EDUCATIONAL AIDE EXEMPTION PROGRAM

19 TAC §21.1083

The Texas Higher Education Coordinating Board adopts an amendment to §21.1083, concerning the Educational Aide Exemption Program, without changes to the proposed text as published in the August 12, 2005, issue of the Texas Register (30 TexReg 4600).

Senate Bill 1227, 79th Legislature, Regular Session, amended Texas Education Code, §54.214 regarding the requirement of having been employed as an educational aide one of the past five years to students who are applying for their first exemptions. Prior to this amendment, an individual would have had to have been employed as an aide one of the past five years in order to qualify for an exemption. Therefore, students who entered the program on the third or fourth year after such employment would lose eligibility to continue in the program once that five-year deadline was reached. They would have to work for a year as an aide in order to re-establish eligibility for the exemption. Students, once having met the employment requirement, may continue to pursue their teaching credentials.

No comments were received regarding the amendment.

The amendment is adopted under the Texas Education Code, §54.214, which states that the Coordinating Board is authorized to adopt rules to implement this section.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505138

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: August 12, 2005

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


Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter B. PROVISIONS FOR THE TUITION EQUALIZATION GRANT PROGRAM

19 TAC §§22.22 - 22.24

The Texas Higher Education Coordinating Board adopts amendments to §§22.22 - 22.24, concerning the Tuition Equalization Grant Program. Section 22.22 is adopted with changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5495). Section 22.23 and §22.24 are adopted without changes to the proposed text as published.

Senate Bill 1227 and House Bill 1172, 79th Texas Legislature, Regular Session, amended Texas Education Code, §61.225 and §61.227 and added new §61.2251, changing eligibility requirements for the Tuition Equalization Grant Program. Specifically, changes to §22.22 of Board rules reflect the addition of definitions for terms that are used in this subchapter and the elimination of terms no longer relevant to program operations. Changes to §22.23 require institutions participating in the program must notify the Coordinating Board if their accrediting agency places them on probation, and that the institutions may be penalized if they fail to refund unused program monies to the Board in a timely manner. Changes to §22.24 reflect new student eligibility requirements. The changes apply to students awarded their first grants on or after September 1, 2005. Provisions for individuals awarded grants prior to September 1, 2005, remain as they have been in the past. The primary changes include (1) a requirement of full-time enrollment in order to receive an initial or continuation grant, and (2) maintenance of an overall grade point average of 2.5 while completing a minimum number of hours per academic year (at least 24 hours per academic year for undergraduate students and 18 hours per year for graduate students).

No comments were received regarding the amendments.

The amendments are adopted under the Texas Education Code, §61.229, which provides the Coordinating Board with the authority to adopt rules necessary to implement the program.

§22.22.Definitions.

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

(1) Awarded--offered to a student.

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

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

(4) Cost of attendance--A Board-approved estimate of the expenses incurred by a typical financial aid student in attending a particular college or university. It includes direct educational costs (tuition, fees, books, and supplies) as well as indirect costs (room and board, transportation, and personal expenses).

(5) Degree or certificate program of four years or less--a baccalaureate degree or certificate program other than in architecture, engineering or any other program determined by the Board to require more than four years to complete.

(6) Degree or certificate program more than four years--a baccalaureate degree or certificate program in architecture, engineering or any other program determined by the Board to require more than four years to complete.

(7) Disbursement date--the date on which the Board generates a voucher requesting a grant disbursement for an institution.

(8) Encumbered funds--Program funds that have been offered to a specific student, which offer the student has accepted, and which may or may not have been disbursed to the student.

(9) Exceptional financial need--the need an undergraduate student has if his or her expected family contribution is less than or equal to $1000.

(10) Enrollment on at least a half-time basis--for undergraduates, enrolled for the equivalent of six or more semester credit hours. For graduate students, enrolled for the equivalent of 4.5 or more semester credit hours.

(11) Expected family contribution--The amount of discretionary income that should be available to a student from his or her resources and that of his or her family, as determined following the federal methodology.

(12) Full-time enrollment--For undergraduates, enrollment for the equivalent of twelve or more semester credit hours. For graduate students, enrollment for the equivalent of nine or more semester credit hours.

(13) Financial need--The cost of attendance at a particular public or private institution of higher education less the expected family contribution. The cost of attendance and family contribution are to be determined in accordance with Board guidelines.

(14) Graduate student--a person who has been awarded a baccalaureate degree.

(15) Initial award--the first Tuition Equalization Grant awarded to a specific person.

(16) Period of enrollment--The term or terms within a state fiscal year (September 1 - August 31) for which the student was enrolled in an approved institution and met all the eligibility requirements for an award through this program.

(17) Private or independent institution--any college or university defined as a private or independent institution of higher education by Texas Education Code, §61.003.

(18) Program or TEG--the Tuition Equalization Grant Program.

(19) Program Officer--The individual named by each participating institution's chief executive officer to serve as agent for the Board. The Program Officer has primary responsibility for all ministerial acts required by the program, including maintenance of all records and preparation and submission of reports reflecting program transactions. Unless otherwise indicated by the administration, the director of student financial aid shall serve as Program Officer.

(20) 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 who are eligible to pay resident tuition rates are not residents of Texas.

(21) Tuition Equalization Grant need (TEG need)--The total amount of TEG funds that full-time students at an approved institution would be eligible to receive if the program were fully funded.

(22) Undergraduate--an individual who has not yet received a baccalaureate degree.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505139

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


19 TAC §§22.25 - 22.30

The Texas Higher Education Coordinating Board adopts the repeal of §§22.25 - 22.30, concerning the Tuition Equalization Grant Program, without changes to the proposal as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5498).

Specifically, these sections are being repealed and new §§22.25 - 22.32 are being adopted simultaneously.

No comments were received regarding the repeal of these sections.

The repeal is adopted under the Texas Education Code, §61.229, which provides the Coordinating Board with the authority to adopt rules to enforce the requirements, conditions and limitations of Texas Education Code, §§61.221 - 61.230.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505141

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


19 TAC §§22.25 - 22.32

The Texas Higher Education Coordinating Board adopts new §§22.25 - 22.32, concerning the Tuition Equalization Grant Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5498).

These new sections are adopted in response to Senate Bill 1227 and House Bill 1172, 79th Texas Legislature, Regular Session, amending Texas Education Code, §61.225 and §61.227 and adding new §61.2251, changing eligibility requirements for the Tuition Equalization Grant Program. Specifically, §22.25 specifies the length of time an individual may continue to receive awards through the program. Section 22.26 reflects the circumstances under which an institution may allow a student to continue to receive awards even though the student has dropped below the academic performance requirements of the program on the basis of hardship. Section 22.27 indicates the limitations on the size of the grant that can be awarded to a person and that the funds must be used to meet expenses related to attending college. Section 22.28 advises institutions on the procedures for adjusting awards. Section 22.29 describes the conditions under which an award may be made to a student who is no longer enrolled. Section 22.30 describes the bases upon which funds are divided among eligible institutions and how the fund distribution is adjusted during a given year. Section 22.31 reflects the ability of institutions to transfer the lesser of 10 percent or $10,000 between the Tuition Equalization Grant Program, Toward EXcellence, Access and Success Grant Program and the Texas College Work-Study Program. Section 22.32 indicates the Board's responsibility to disseminate rules and general information about the program.

No comments were received regarding the new sections.

The new sections are adopted under the Texas Education Code, §61.229, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §§61.221 - 61.250.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505140

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter D. PROVISIONS FOR THE TEXAS PUBLIC EDUCATIONAL GRANT PROGRAMS

19 TAC §22.62

The Texas Higher Education Coordinating Board adopts amendments to §22.62, concerning the Texas Public Educational Grant Programs, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5500).

Texas Education Code, §54.034, permits institutions to make awards from funds generated through the sale of license plates with institutional insignia and/or funds generated through unclaimed Student Deposit Scholarship fees through the Texas Public Educational Grant Program, rather than as separate programs. Such funds could only be issued as need-based grants, through the Texas Public Educational Grant Program to students with financial need. These amendments provide institutions with an additional method of funding the program by issuing License Plate or using Student Deposit Scholarship funds.

No comments were received regarding the amendments.

The amendments are adopted under the Texas Education Code, §56.034.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505142

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


19 TAC §22.64

The Texas Higher Education Coordinating Board adopts new §22.64, concerning the Texas Public Educational Grant Programs, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5500).

Texas Education Code, §54.034, permits institutions to make awards from funds generated through the sale of license plates with institutional insignia and/or funds generated through unclaimed Student Deposit Scholarship fees through the Texas Public Educational Grant Program, rather than as separate programs. Such funds could only be issued as need-based grants, through the Texas Public Educational Grant Program to students with financial need. The change will offer institutions an alternate path for issuing License Plate or Student Deposit Scholarship funds to eligible students. The new section explains the use of funds for the program.

No comments were received regarding the new section.

The new section is adopted under the Texas Education Code, §56.034.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505143

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter H. PROVISIONS FOR THE LICENSE PLATE INSIGNIA SCHOLARSHIP PROGRAM

19 TAC §22.145

The Texas Higher Education Coordinating Board adopts amendments to §22.145, concerning the License Plate Insignia Scholarship Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5501).

Texas Education Code, §54.5021 permits institutions to make awards from funds generated through the sale of license plates with institutional insignia through the Texas Public Educational Grant Program to students with financial need.

No comments were received regarding the amendments.

The amendments are adopted under Texas Education Code, §54.5021 and Texas Transportation Code, §504.615, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Transportation Code, §504.615 and Texas Education Code, §54.5021.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505144

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


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

19 TAC §§22.226 - 22.228

The Texas Higher Education Coordinating Board adopts amendments to §§22.226 - 22.228, concerning the Toward EXcellence, Access, and Success (TEXAS) Grant Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5501).

Senate Bill 1227 and House Bill 1172, 79th Texas Legislature, Regular Session, amended §§56.301, 56.302, 56.304, 56.305, 56.307, 56.3075 and 56.310, and added new §56.3021 of the Texas Education Code, changing several aspects of the TEXAS Grant Program. Specifically, §22.226 reflects the addition of definitions for terms that are used in these sections. Changes to §22.227 indicate the need for institutions to notify the Coordinating Board if their accrediting agency places them on probation, and specifies that institutions may be penalize for failing to submit required reports to the Board in a timely manner. Changes to §22.228 reflect the establishment of academic progress requirements for students awarded grants on or after September 1, 2005 that are different from the requirements for students awarded grants prior to that time. In order to address the added complexity of academic progress requirements, language regarding requirements for previous recipients was deleted from this section and included in a new §22.229.

No comments were received regarding the amendments.

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

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505145

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


19 TAC §§22.229 - 22.236

The Texas Higher Education Coordinating Board adopts the repeal of §§22.229 - 22.236, concerning the Toward EXcellence, Access, and Success (TEXAS) Grant Program, without changes to the proposal as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5503).

Specifically, these sections are repealed and new §§22.229 - 22.240 are adopted simultaneously with this repeal.

No comments were received regarding the repeal.

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

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505147

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


19 TAC §§22.229 - 22.240

The Texas Higher Education Coordinating Board adopts new §§22.229 - 22.240, concerning the Toward EXcellence, Access, and Success (TEXAS) Grant Program. Section 22.237 is adopted with changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5504). Sections 22.229 - 22.236 and §§22.238 - 22.240 are adopted without changes to the proposed text as published.

Senate Bill 1227 and House Bill 1172, 79th Texas Legislature, Regular Session, amended §§56.301, 56.302, 56.304, 56.305, 56.307, 56.3075 and 56.310, and added new §56.3021 of the Texas Education Code, changing several aspects of the TEXAS Grant Program. Specifically, §22.229 lays out the academic progress requirements required of students in order to continue to be eligible for TEXAS Grants and establishes new requirements for students who were awarded grants on or after September 1, 2005. Section 22.230 reflects the length of time that otherwise eligible students may continue to receive grants. New deadlines for students who were awarded grants on or after September 1, 2005 are established. Section 22.231 describes conditions under which an institution may continue to award grants to students who fall below program academic progress requirements. Section 22.232 provides that if funding is limited, priority is to be given to continuing students. Section 22.233 provides that, in awarding initial year funds, priority is to be given to students with the greatest financial need. Section 22.234 reflects the size of awards that may be made to individual students, that funds must be used to meet the costs of attending college, and that outside awards made late in a semester and that cause a student's award to exceed need do not have to be adjusted unless the excess is more than $300. Section 22.235 describes the conditions under which a grant may be awarded to a student who is no longer enrolled. Section 22.236 describes how appropriations are divided among institutions, and indicates that no funds for additional new students will be provided to independent institutions on or after September 1, 2005. Section 22.237 authorizes the Coordinating Board to fund additional TEXAS Grants using excess Student Deposit Scholarship funds sent to the Board by institutions unable to use such funds in a timely manner. Section 22.238 authorizes to develop and implement a process for naming specialty TEXAS Grant awards funded through gifts and donations. Section 22.239 authorizes institutions to transfer the lesser of 10 percent or $10,000 between the Tuition Equalization Grant Program, Toward EXcellence, Access and Success Grant Program and the Texas College Work-Study Program. Section 22.240 indicates the Board's responsibility to disseminate rules and general information about the program.

The following comments were received regarding the new sections:

Comment: Texas Tech University suggested the wording in §22.237, regarding the use of excess student deposit funds to make TEXAS Grant awards, be improved by citing the statute authorizing student deposit funds.

Response: The Board agreed with this comment and §22.237 has been changed as a result of this comment.

Comment: Texas Tech University suggested §22.237 be changed to refer to "excess" instead of "forfeited" student deposit funds.

Response: The Board agreed with this comment and §22.237 has been changed as a result of this comment.

The new sections are adopted under the Texas Education Code, §56.303, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §§56.301 - 56.311.

§22.237.Funds Provided from Student Deposit Fees.

Excess student deposit funds remitted to the Coordinating Board pursuant to Texas Education Code, §54.5021(c), may only be used to make TEXAS Grants. If the year-end unobligated and unexpended balance of student deposit funds at an institution exceeds 150 percent of the total deposits to that fund during that year, the excess funds shall be forwarded to the Coordinating Board for disbursement through the TEXAS Grant Program. If an institution established an endowment fund from excess funds prior to the end of state Fiscal Year 2001, no additional excess funds may be added to the endowment corpus. All excess funds and their earnings (including the earnings of the endowment fund) must be used in calculating the year-end balance subject to the 150 percent limit.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505146

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter M. TEXAS EDUCATIONAL OPPORTUNITY GRANT PROGRAM

19 TAC §§22.253 - 22.256

The Texas Higher Education Coordinating Board adopts amendments to §§22.253 - 22.256, concerning the Texas Educational Opportunity Grant Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5507).

Senate Bill 1227, 79th Texas Legislature, Regular Session amended Texas Education Code, §§56.402 - 56.407, concerning the Towards EXcellence, Access and Success (TEXAS) Grant II Program. Specifically, the amendments to §§22.253 - 22.256 reflect the program name change from the Toward EXcellence, Access. and Success Grant II Program to the Texas Educational Opportunity Grant Program. Changes to §22.254 reflect the addition of definitions for terms that are used in this subchapter. The term "awarded" is relevant in determining whether a student's awards fall under old program requirements or new requirements established by the 79th Legislature. The terms "institution" and "Texas Educational Opportunity Grant" are added to simplify and clarify future references in rules to eligible institutions and the grant program described in this title. Changes to §22.254 indicate institutions participating in the program must notify the Coordinating Board if their accrediting agency places them on probation, and that the institutions may be penalized if they fail to refund unused program monies to the Board in a timely manner. Changes to §22.256 reflect the addition of new continuation award requirements for individuals awarded their first awards on or after September 1, 2005. Originally, the program required all students to maintain a 2.5 overall grade point average and complete at least 75 percent of the hours they attempted in order to continue in the program during all years in the program. These requirements will remain in place for students awarded their first grants prior to fall 2005. A student receiving his or her first grants in fall 2005 or later will need to meet the satisfactory academic performance requirements of his or her institution as of the end of the first year in the program and meet the program-specific requirements as of the end of his or her second year in the program. The changes also indicate these requirements must be met by the student unless they are waived by the institution due to hardship.

No comments were received regarding the amendments.

The amendments are adopted under the Texas Education Code, §56.403, which provides that the Coordinating Board is authorized to adopt any rules necessary to implement the program.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505150

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


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

19 TAC §§22.257 - 22.262

The Texas Higher Education Coordinating Board adopts the repeal of §§22.257 - 22.262, concerning the Toward EXcellence, Access, and Success (TEXAS) Grant II Program, without changes to the proposal as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5510).

These sections are being repealed and new §§22.257 - 22.263 are being adopted simultaneously in this issue of the Texas Register .

No comments were received regarding the repeal.

The repeal is adopted under the Texas Education Code, §56.403, which provides that the Coordinating Board is authorized to adopt any rules necessary to implement the program.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505148

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter M. TEXAS EDUCATIONAL OPPORTUNITY GRANT PROGRAM

19 TAC §§22.257 - 22.263

The Texas Higher Education Coordinating Board adopts new §§22.257 - 22.263, concerning the Texas Educational Opportunity Grant Program, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5510).

Senate Bill 1227, 79th Texas Legislature, Regular Session amended Texas Education Code, §§56.402 - 56.407, concerning the Towards EXcellence, Access and Success (TEXAS) Grant II Program. Specifically, new §22.257 describes the hardship provisions under which an institution may allow a student who otherwise does not meet program academic progress requirements to continue to receive awards. Section 22.258 indicates that if funding is limited, continuing students are to be given priority in making awards over new students. Section 22.259 indicates that in making initial awards to students, priority is to be given to students with the greatest financial need. Section 22.260 specifies the amount of funds that may be awarded to students attending various types of institutions, and that funds are to be used for the purpose of meeting expenses related to attending college. The section also allows students receiving late awards that cause them to receive aid in excess of their need to not have to make refunds to the program if the excess amount is less than or equal to $300. Section 22.261 describes the circumstances under which funds may be disbursed retroactively to an institution on behalf of a student. Section 22.262 describes the allocation of funds among institutions, and how funds are to be delivered to the institutions. Section 22.263 confirms the Coordinating Board's responsibility to disseminate information and rules regarding the program.

No comments were received regarding the new sections.

The new sections are adopted under the Texas Education Code, §56.403, which states that the Coordinating Board is authorized to adopt any rules necessary to implement the program.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505149

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter O. EXEMPTION PROGRAM FOR CHILDREN OF PROFESSIONAL NURSING PROGRAM FACULTY AND STAFF

19 TAC §§22.292 - 22.297

The Texas Higher Education Coordinating Board adopts new §§22.292 - 22.297, concerning the Exemption Program for Children of Professional Nursing Faculty and Staff, without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5512).

Senate Bill 132, 79th Texas Legislature, Regular Session, added Texas Education Code, §54.222, creating a new tuition exemption for otherwise eligible persons whose parent is employed as a professional nursing faculty member or staff member. Specifically, new §22.293 of Board rules provides definitions for terms that are used in this subchapter and §22.294 indicates that institutions are to exempt eligible students from the payment of tuition. Section 22.295 provides student eligibility requirements for receiving an exemption and the number of terms that a person may receive the exemptions. Section 22.296 indicates the exemption is to be prorated if the parent is not employed on a full-time basis. Section 22.297 provides information about the process of applying for an exemption under the program.

The following comments were received regarding the proposed new sections:

Comment: The Texas Nurses Association suggested that the definition of "child" in §22.293 should include a stepchild.

Response: The Board disagrees that the term "child" should include a stepchild and no changes have been made as a result of this comment. Under the provisions of Texas Family Code, Title V, the parent-child relationship includes only the relationship of a child to his/her natural parents or his/her adoptive parents. This interpretation is consistent with the definitions used in other Coordinating Board rules.

Comment: The Texas Nurses Association commented that §22.295(a)(5) be changed to make the exemption available to students attending colleges other than those at which the parent is employed.

Response: The Board disagreed with this comment and no changes were made to §22.295(a)(5). Such an interpretation would be in direct conflict with Texas Education Code, §54.221(f), which provides: "The tuition exemption provided by this section applies only to enrollment of a child at the institution at which the child's parent is employed or is under contract."

The new sections are adopted under the Texas Education Code, §54.221(g), which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §54.221.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505153

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Subchapter P. EXEMPTION PROGRAM FOR CLINICAL PRECEPTORS AND THEIR CHILDREN

19 TAC §§22.302 - 22.309

The Texas Higher Education Coordinating Board adopts new §§22.302 - 22.309, concerning the Exemption Program for Clinical Preceptors and Their Children. Sections 22.304 - 22.306 are adopted with changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5513). Section 22.302, 22.303, and 22.307 - 22.309 are adopted without changes to the proposed text as published.

Senate Bill 132, 79th Texas Legislature, Regular Session, enacted Texas Education Code §54.222, creating a new partial tuition exemption for otherwise eligible persons who work as clinical preceptors, providing supervision to nursing students in a clinical setting. Specifically, new §22.303 of Board rules provides definitions for terms that are used in this subchapter and §22.304 indicates that institutions are to exempt eligible students from the payment of up to $500 of tuition per term or semester. Section 22.305 provides the eligibility requirements for preceptors and §22.306 provides the eligibility requirements for the children of preceptors. Section 22.307 indicates the number of terms that persons may receive the exemptions. Section 22.308 indicates the exemption may not be for more than the person's tuition or $500, whichever is less. Section 22.309 provides information about the process of applying for an exemption under the program.

The following comments were received regarding the proposed new sections:

Comment: The Texas Nurses Association commented that the definition of "child" in §22.303 should include a stepchild.

Response: The Board disagreed that the term "child" should include a stepchild. Under the provisions of the Texas Family Code, Title V, the parent-child relationship includes only the relationship of a child to his/her natural parents or his/her adoptive parents. This interpretation is consistent with definitions used in other Coordinating Board rules. No change has been made as a result of this comment.

Comment: The Texas Nurses Association suggested that §22.304 be amended to clarify that both eligible preceptors and eligible students qualify for the exemption of up to $500 per term.

Response: The Board agrees with this comment and §22.304 has been changed as a result of this comment.

Comment: The Texas Nurses Association suggested that §22.305 and §22.306 be revised to eliminate the requirement that the preceptor or child be enrolled in an institution that offers an undergraduate program of professional nursing. The preceptor must serve under an agreement with an undergraduate professional nursing program, but neither the preceptor nor the child need to be enrolled in that same institution.

Response: The Board agrees with this comment and §22.305(3) and §22.306(2) are deleted.

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

§22.304.Tuition Exemption.

Each institution of higher education shall exempt all eligible preceptors and eligible students from the payment of up to $500 of tuition per term or semester.

§22.305.Eligible Preceptors.

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

(1) be a resident of Texas;

(2) be a registered nurse;

(3) be serving under a written preceptor agreement with an undergraduate professional nursing program as a clinical preceptor for students enrolled in the program for the semester or other academic term for which the exemption is sought.

§22.306.Eligible Students.

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

(1) be a resident of Texas;

(2) be the child of a clinical preceptor who is serving under a written preceptor agreement with an undergraduate professional nursing program as a clinical preceptor for students enrolled in the program for the semester or other academic term for which the exemption is sought.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505151

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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


Chapter 25. OPTIONAL RETIREMENT PROGRAM

Subchapter A. OPTIONAL RETIREMENT PROGRAM

19 TAC §§25.3 - 25.6

The Texas Higher Education Coordinating Board adopts amendments to §§25.3 - 25.6, concerning the Optional Retirement Program (ORP), without changes to the proposed text as published in the September 9, 2005, issue of the Texas Register (30 TexReg 5515).

Specifically, these amendments will incorporate recent legislative changes, make technical corrections, add clarifying language, add administrative flexibility for institutions in establishing local supplemental contribution rates, provide an alternative process for companies to certify compliance with Texas Government Code Chapter 804 regarding Qualified Domestic Relations Orders, and establish certain institutional notification and documentation requirements.

Comments were received from Texas Tech University recommending that the proposed new notification requirement in §25.6(h)(2) should be extended from a minimum of 15 business days to a minimum of 21 business days and that, for consistency, the notification requirement in §25.6(h)(1) should be the same as the time period proposed in §25.6(h)(2). The concern expressed was that the "HR Offices that would be charged with ensuring this notification is made are not always aware that an ORP-eligible employee has been hired until after their first active day on the job." They indicated that a new employee's benefits orientation "is generally after and may be two to three weeks after the person reports to work."

Response: We disagree with this comment. Proposed new §25.6(h)(2) will require institutions to provide written notification to a new ORP-eligible employee indicating the beginning and ending dates of his or her 90-day ORP election period, along with the local procedures for submitting the election form, within 15 business days of his or her initial ORP eligibility date, which is the first day of employment in an ORP-eligible position. New employees who do not submit their ORP election forms on or before their initial eligibility date (or before payroll is run for that month, if local policies allow it) are required by law to become active members of the default retirement plan (Teacher Retirement System) for that month and will forfeit employer contributions that would have been made to their ORP account if they had participated in ORP during their first month. Therefore, we believe that allowing institutions 15 business days (generally, three calendar weeks) provides an appropriate balance between the needs of the institution and the new employees. The 15-day extension was based on feedback received from another large institution as we were preparing the amendments for proposal, and the commenting institution has indicated that their new employee orientation normally is conducted within three calendar weeks, which would fall within the proposed deadline. The existing notification requirement in §25.6(h)(1) requires institutions to provide the "Overview" document, which contains basic information about ORP and TRS, to new ORP-eligible employees on or before their first day of employment in an ORP-eligible position. The document may be provided to the new employee as an e-mail attachment or through written notification of the location of the link to the document on either the Coordinating Board's website or the institution's website. This could be incorporated into the hiring department's employment offer. We do not believe that it is appropriate to allow up to three weeks after the initial eligibility date to provide this information because its purpose is to help the employee learn about the two plans and make a decision. No changes were made as a result of this comment.

These amendments are adopted under the Texas Education Code, §61.027, which provides the Coordinating Board with general rulemaking authority; Texas Government Code, §830.002(c), which provides the Coordinating Board with authority to develop policies, practices, and procedures to provide greater uniformity in the administration of ORP; §830.101(b), which provides the Coordinating Board with specific rulemaking authority to establish eligibility for participation in ORP; and §830.006(b), which provides that institutions must keep records, make certifications, and furnish to the Coordinating Board information and reports as required by the Coordinating Board to enable it to carry out its ORP-related functions.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on November 8, 2005.

TRD-200505152

Jan Greenberg

General Counsel

Texas Higher Education Coordinating Board

Effective date: November 28, 2005

Proposal publication date: September 9, 2005

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