TITLE 19. EDUCATION

Part 1. TEXAS HIGHER EDUCATION COORDINATING BOARD

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

Subchapter J. WORK-STUDY STUDENT MENTORSHIP PROGRAM

19 TAC §§4.191 - 4.196

The Texas Higher Education Coordinating Board (Coordinating Board) proposes new §§4.191 - 4.196 concerning Work-Study Student Mentorship Program. Specifically, these new sections are being proposed under the provisions of Texas Education Code, §56.079, added by SB 1050, §2 (80th Texas Legislature) which states, "The Texas Higher Education Coordinating Board shall adopt rules relating to the administration of the work-study student mentorship program under §56.079, Education Code, as amended by the Act, as soon as practicable after the effective date of this Act." The proposed new sections describe the Work-Study Student Mentorship Program. New §§4.191 - 4.196 concerning Work-Study Student Mentorship Program were filed as emergency rules in June 2007.

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

Dr. Barron has also determined that, for each year of the first five years the proposed new sections are in effect, the public benefit anticipated as a result of administering the sections will be the improved access to higher education for high school students.

Comments on the proposal may be submitted to Glenda Barron, P. O. Box 12788, Austin, Texas 78711, (512) 427-6255, Glenda.Barron@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the Texas Education Code, §56.079, which authorizes the Coordinating Board to adopt rules concerning the work-study student mentorship program.

The new §§4.191 - 4.196 concerning Work-Study Student Mentorship Program affects Texas Education Code, §56.079.

§4.191.Purpose.

The purpose of this subchapter is to establish rules for implementation of the Work-Study Student Mentorship Program, separate and distinct from the Texas College Work-Study Program outlined under Chapter 22, Subchapter M of this title (relating to Texas College-Work Study Program).

§4.192.Authority.

Texas Education Code, §56.077 authorizes the Coordinating Board to adopt rules to enforce the requirements, conditions, and limitations of §56.079 concerning the Work-Study Mentorship Program.

§4.193.Definitions.

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

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

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

(3) Financial need--An indication of a student's inability to meet the full cost of attending a college or university, measured by an income methodology, which considers a student to have financial need if his or her adjusted gross annual income is less than income levels set annually by the Commissioner. If the student is a dependent, the family's adjusted gross family income is considered; if the student is independent, only the student's income (and the income of the student's spouse, if he or she is married) are considered.

(4) Mentor--An eligible student employed to:

(A) help students at participating eligible institutions or to help high school students in participating school districts; or

(B) counsel high school students at GO Centers or similar high school-based recruiting centers designed to improve access to higher education.

(5) Participating Entity--An eligible institution, a school district, or a nonprofit organization that has filed a memorandum of understanding with the Coordinating Board under this subchapter.

(6) Program--The Work-Study Student Mentorship Program.

§4.194.Eligibility and Program Requirements.

(a) Eligible Institution. The following Texas institutions of higher education are eligible to participate in the Program:

(1) any public technical college, public junior or community college, public senior college or university, medical or dental unit, or other agency of higher education as defined in Texas Education Code, §61.003; or

(2) a private or independent institution of higher education, as defined by Texas Education Code §61.003(15), other than a private or independent institution of higher education offering only professional or graduate degrees.

(b) Eligible Student Mentors. To be eligible for employment in the Program, a student mentor shall:

(1) be a Texas resident determined in accordance with §§21.727 - 21.736 of this title (relating to Determining Residence Status);

(2) be enrolled for at least one-half of a full course load in a program of study;

(3) establish financial need as set forth under §4.193 of this subchapter; and

(4) not receive an athletic scholarship or not be enrolled in a seminary or other program leading to ordination or licensure to preach for a religious sect or to be a member of a religious order; and

(5) receive appropriate training as determined by the Commissioner or Coordinating Board staff.

(c) Participating Entities. To participate in the Program, an eligible institution and one or more school districts or nonprofit organizations shall file with the Coordinating Board a memorandum of understanding detailing the roles and responsibilities of each participating entity.

(d) Criteria for Participation and Program Requirements. Additional criteria for participation and program requirements shall be determined in consultation with participating entities and set forth in Commissioner's policies. The Commissioner's policies shall be reviewed periodically to determine the effectiveness and success of the Program.

§4.195.Allocations and Disbursement of Funds.

(a) Allocations. The Board shall allocate Program funds to participating institutions according to criteria established by the Commissioner. At the beginning of each academic year, the year's full allocation will be provided to each participating institution.

(b) Reallocations. Institutions shall have until a date specified by the Commissioner to encumber all funds allocated. On that date, institutions lose claim to unencumbered funds and the unencumbered funds are available to the Commissioner for reallocation to other institutions. If necessary for ensuring the full use of funds, subsequent reallocations may be scheduled until all funds are awarded and disbursed.

(c) Program funds may be used during any academic period for which mentorship opportunities are needed by participating entities as long as student mentors meet eligibility requirements as outlined under §4.194(b).

§4.196.Reporting.

(a) Not later than November 1 of each year, each institution participating in the Program shall report to the Coordinating Board on the progress made by students being assisted through the Program. The report shall include:

(1) the number of students employed as mentors in the preceding year;

(2) the number of students from the participating institution receiving mentoring in the preceding year;

(3) the number of high school students receiving mentoring or counseling from students of the participating institution in the preceding year;

(4) information relating to the costs of the program; and

(5) the academic progress made by student mentors, students of the participating institution receiving mentoring, and high school students receiving mentoring or counseling from students of the participating institution in the preceding year.

(b) The Coordinating Board shall establish reporting requirements and forms to be completed by participating institutions in the Program.

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

Filed with the Office of the Secretary of State on August 13, 2007, 2007.

TRD-200703557

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Chapter 5. RULES APPLYING TO PUBLIC UNIVERSITIES AND/OR HEALTH-RELATED INSTITUTIONS OF HIGHER EDUCATION IN TEXAS

Subchapter A. GENERAL PROVISIONS

19 TAC §5.5

The Texas Higher Education Coordinating Board proposes amendments to §5.5 concerning the uniform admission policy. The amendment was adopted on an emergency basis at the July 2007 Coordinating Board meeting pursuant to §2001.034 of the Government Code, which allows a state agency to adopt an emergency rule if a requirement of state or federal law requires adoption of the rule on less than 30 days notice. Specifically the section is required to permit institutions of higher education that may be uncertain how to apply H.B. 3826, enacted by the 80th Legislature, a two-year period in which they may continue to admit students who have not taken the recommended high school program.

Mr. William Franz, General Counsel, has determined that for each year of the five years the section is in effect, there will not be any fiscal implications for state and local government as a result of administering the rule.

Mr. Franz has also determined that for each year of the first five years the section is in effect, the public benefit anticipated as a result of administering the section is a reduction of the uncertainty for institutions of higher education as to the standards for admission. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to James Tourtelott, Assistant General Counsel, P.O. Box 12788, Austin, Texas 78711, or james.tourtelott@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The amendment is proposed under the Texas Education Code §51.807 which authorizes the Coordinating Board to adopt rules concerning the uniform admission policy.

The amendment affects the Texas Education Code, §51.084 and §51.085.

§5.5.Uniform Admission Policy.

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

(g) In exercising its discretion in accordance with Texas Education Code, §51.804, whether to adopt an admissions policy for each academic year for first-time freshman students, the governing board of each general academic teaching institution may elect to admit students who do not meet the requirements of Texas Education Code, §51.803, but who qualify for admission under one or more of the factors listed in Texas Education Code, §51.805(b). However, the total number of such students who are admitted in an academic year may not exceed 20% of the total number of first-time freshman students admitted by the institution for that academic year. This subsection expires August 31, 2009.

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703558

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Subchapter F. MATH, SCIENCE, AND TECHNOLOGY TEACHER PREPARATION ACADEMIES

19 TAC §§5.111 - 5.115

The Texas Higher Education Coordinating Board proposes new §§5.111 - 5.115 concerning math, science, and technology teacher preparation academies. Specifically, these new sections will set forth requirements for implementation of mathematics, science, and technology teacher preparation academies.

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

Dr. Barron has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the sections will be the improvement of instructional skills of teachers and students enrolled in teacher preparation programs to perform at the highest levels in mathematics, science, and technology. There is no effect on small businesses. There is no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Glenda O. Barron, Associate Commissioner of Participation and Success, at P.O. Box 12788, Austin, Texas 78711, or Glenda.Barron@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the Texas Education Code, §21.462, which provides the Coordinating Board with the authority to adopt rules to establish mathematics, science, and technology teacher preparation academies.

The new sections affect Texas Education Code, §21.462.

§5.111.Purpose.

The purpose of this subchapter is to set forth requirements for implementation of mathematics, science, and technology teacher preparation academies.

§5.112.Authority.

Texas Education Code, §21.462 authorizes the Coordinating Board to adopt rules to establish mathematics, science, and technology teacher preparation academies at institutions of higher education that have a State Board for Educator Certification approved teacher preparation program or are affiliated with a program approved by the Board.

§5.113.Definitions.

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

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

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

(3) Eligible Institution or Institution--A Texas institution of higher education as defined in Texas Education Code, §61.003, that either the State Board for Educator Certification approved teacher preparation program, or is affiliated with a teacher preparation program approved by the Coordinating Board.

(4) Eligible Teacher--An experienced teacher that meets the requirements set forth under Texas Education Code, §21.462(d), and meets other requirements determined by the Commissioner.

(5) State Board for Educator Certification or SBEC--The entity with authority to oversee all aspects of the preparation, certification, and standards of conduct of Texas public school educators.

(6) Mathematics, Science, and Technology Teacher Preparation Academy or Academy--A program approved by the Coordinating Board to be offered at select institutions of higher education to improve the instructional skills of teachers certified under Texas Education Code, Chapter 21, Subchapter B, and train students enrolled in teacher preparation programs to perform at the highest levels in mathematics, science, and technology.

§5.114.Institutional Eligibility.

Under a competitive process, an eligible institution or institutions shall be selected by the Board to establish an Academy or Academies under procedures outlined by the Commissioner and in accordance with Texas Education Code, §21.462.

§5.115.Funding.

(a) The amount and use of funding awarded to each institution approved by the Board to offer an Academy or Academies shall be determined by the Commissioner.

(b) The funds shall be distributed to each institution approved by the Board to offer an Academy or Academies in a manner and time to be prescribed by the Commissioner.

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703559

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Chapter 6. HEALTH EDUCATION, TRAINING, AND RESEARCH FUNDS

Subchapter D. TEXAS HOSPITAL-BASED NURSING EDUCATION GRANT PROGRAM

19 TAC §§6.81 - 6.83

The Texas Higher Education Coordinating Board proposes new §§6.81 - 6.83, concerning the Board's criteria and process for awarding grants under the Texas Hospital-based Nursing Education Partnership Grant Program. The proposed sections provides information on the application process, methodology and criteria for awarding grants and making funding decisions, and the terms and conditions of the grant agreements.

Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the sections are in effect, there will not be any fiscal implications to state or local government as a result of this proposed rule.

Dr. Stafford has also determined that for each year of the first five years the sections are in effect, the public benefit anticipated as a result of administering the section would be in initiating new nursing degree programs, thus helping to relieve the state's nursing shortage. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

Comments on the proposal may be submitted to Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or joe.stafford@thecb.state.tx.us. Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under the Texas Education Code, §61.9756 which provides the Coordinating Board with the authority to establish rules for the grant programs.

The new sections affect the Texas Education Code, §§61.9751 - 61.9759.

§6.81.Purpose and Authority.

The purpose of this subchapter is to describe the Board's criteria and process for awarding grants under Texas Hospital-based Nursing Education Partnership Grant Program. The Board is authorized to establish rules for this grant program under Texas Education Code §§61.9751 - 61.9759.

§6.82.Definitions.

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

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

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

(3) Hospital--a health care facility that provides in-patient services in the state, that is in good standing with all regulators and accreditation bodies, and that is not owned, maintained, or operated by the federal or state government or an agency of the federal or state government.

(4) Nursing school--an educational entity of a Texas public or independent institution of higher education that offers a degree program that prepares students for initial licensure as registered nurses and that has initial or full approval status from the Texas Board of Nursing on the date that grant applications are due to the Board.

(5) Hospital-based nursing education partnership--one or more hospitals as defined in paragraph (3) of this subsection and one or more nursing schools as defined in paragraph (4) of this subsection which serve to increase the number of students enrolled in and graduating from one or more degree programs as a result of a partnership.

(6) Degree program--Courses and learning experiences leading to

(A) an associate degree in nursing

(B) a baccalaureate degree in nursing, leading to initial licensure as a registered nurse

(C) a master's degree in nursing with a concentration in nursing education

(D) an academic program designed to advance a registered nurse from an associate degree to a bachelor of science degree in nursing or to a master of science degree in nursing with a concentration in nursing education.

§6.83.Texas Hospital-based Nursing Education Grant Program.

(a) General Information. The program, as it applies to this section:

(1) Purpose--To provide funding to eligible hospitals in partnership with one or more nursing schools to establish or pilot innovative degree programs which serve to increase the number of students enrolled in and graduating from degree programs.

(2) Authority--Texas Education Code, §§61.9751 - 61.9759

(3) Eligible degree program--Degree programs offered through hospital-based nursing education partnerships which:

(A) use existing expertise and facilities of the partners

(B) meet applicable Board and Texas Board of Nursing standards for instruction and student competency, or receive approval from the Board and the Texas Board of Nursing to waive those standards as a pilot project. The application for approval of a pilot project will be contained in the Request for Proposal;

(C) require each nursing school participating in the partnership, as a result of the partnership, to enroll in the degree program a sufficient number of additional students as specified in the Request for Proposal;

(D) provides comparable marginal costs to the state of producing a graduate from a nursing school that is participating in partnership with the marginal costs to the state of producing a graduate from a nursing school not participating in a partnership. The range of acceptable marginal costs will be calculated by the Board and contained in the Request for Proposal. Criteria used to determine marginal costs are based on the appropriate formula funding calculation for nursing increased by a factor to adjust to the full reported costs of a representative sample of the nursing schools.

(E) provides students with appropriate clinical placements to fulfill licensing and academic requirements of the degree.

(4) Application requirements--Applications shall be submitted to the Board in the format and at the time specified by the Board.

(5) General Selection Criteria--Competitive. Designed to award grants that provide the best overall value to the state. Selection criteria shall be based on:

(A) Program quality as determined by peer reviewers;

(B) Impact the grant award shall have on academic instruction and training in nursing education in the state;

(C) Cost of the proposed program; and

(D) Other factors to be considered by the Board, including financial ability to perform program, state and regional needs and priorities, ability to continue program after grant period, and past performance.

(6) Minimum award--$50,000 per award in any fiscal year.

(7) Maximum award--30 percent of the estimated available funding per award in any fiscal year.

(8) Maximum award length--A program is eligible to receive funding for up to three years, contingent upon available funds and a positive evaluation of the progress and effectiveness of the program after the first and second years of funding.

(b) Peer Review.

(1) The Board shall use peer reviewers to evaluate the quality of applications.

(2) The Commissioner shall select qualified individuals to serve as reviewers. Peer reviewers shall demonstrate appropriate credentials to evaluate grant applications in nursing education. Reviewers shall not evaluate any applications for which they have a conflict of interest.

(3) The Board staff shall provide written instructions and training for peer reviewers.

(4) The peer reviewers shall score each application according to these award criteria:

(A) Originality

(B) Potential replication

(C) Partnership design

(D) Degree program design

(E) Student services

(F) Matching funds

(G) Cost effectiveness

(H) Evaluation and expected outcomes

(I) Sustainability of program

(c) Application Review Process.

(1) The Board staff shall review applications to determine if they adhere to the grant program requirements and the funding priorities contained in the Request for Proposal. An application must meet the requirements of the Request for Proposal and be submitted with proper authorization before or on the day specified by the Board to qualify for further consideration. Qualified applications shall be forwarded to the peer reviewers for evaluation. Board staff shall notify applicants eliminated through the screening process within 30 days of the submission deadline.

(2) Peer reviewers shall evaluate applications and assign scores based on award criteria. All evaluations and scores of the reviewers are final.

(3) Board staff shall rank each application based on points assigned by peer reviewers, and then may request that individuals representing the most highly-ranked applications make oral presentations on their applications to the peer reviewers and Board staff. The Board staff may consider reviewer comments from the oral presentations in recommending a priority ranked list of applications to the Commissioner for approval.

(d) Funding Decisions.

(1) Applications for grant funding shall be evaluated only upon the information provided in the written application.

(2) The Board will approve grants upon the recommendation of peer reviewers and Board staff.

(3) Funding recommendations to the Commissioner shall consist of the most highly ranked and recommended applications up to the limit of available funds. If available funds are insufficient to fund a proposal after the higher-ranking and recommended applications have been funded, staff shall negotiate with the applicant to determine if a lesser amount would be acceptable. If the applicant does not agree to the lesser amount, the staff shall negotiate with the next applicant on the list of highly ranked applications.

(4) If the Board does not use all of the available funds for the program, unspent funds may be used to make grants under the Professional Nursing Shortage Reduction Program and the Nursing, Allied Health, and Other-Health-related Education Grant Program.

(e) Contract. Following approval of grant awards by the Commissioner, the successful applicants must sign a contract issued by Board staff and based on the information contained in the application.

(f) Cancellation or Suspension of Grants. The Board has the right to reject all applications and cancel a grant solicitation at any point before a contract is signed.

(g) Request for Proposal. The full text of the administrative regulations, budget guidelines, reporting requirements, and other standards of accountability for this program are contained in the official Request for Proposal available upon request from the Board.

(h) Grants, Gifts, and Donations. The Board may solicit, receive, and spend grants, gifts, and donations from any public or private source for the purpose of this subchapter.

(i) Administrative Costs. Three percent of any money appropriated for purposes of this subchapter may be used to pay the costs of administering the program.

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703579

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Chapter 13. FINANCIAL PLANNING

Subchapter L. ENGINEERING RECRUITMENT SUMMER CAMPS

19 TAC §§13.200 -13.202

The Texas Higher Education Coordinating Board proposes new §§13.200 - 13.202 concerning engineering recruitment summer camps, established by the Texas Higher Education Coordinating Board. The rules were first adopted on an emergency basis as Subchapter Q, §§22.312 - 22.315 at the Coordinating Board's July 19, 2007 meeting, under the provisions of House Bill 2978 of the 80th Texas Legislature. Section 2 of this act authorized the Board to adopt rules in the manner provided by law for emergency rules to start the programs beginning with the 2007-2008 academic year. Since staff separated the administration of the scholarship part (Student Services) from that of the summer camp part (Academic Affairs and Research), staff recommends dividing the emergency rules into two separate sets of rules as well. Rules for the scholarships will remain in Subchapter Q of Chapter 22 and rules for the summer camps will be in a new Subchapter L of Chapter 13. These new sections will establish requirements for admission to a summer camp program for middle and high school students, reflecting the demographics of the state, at engineering degree programs of general academic teaching institutions. The Coordinating Board estimates that a one week summer camp with 20 participants costs on average $10,000 to execute. Some institutions will want to hold four to six sessions. Some institutions will want to hold only one session, based on demand from high school students. If the average number of sessions is two, the program would cost an estimated $380,000 per summer. The Coordinating Board is planning, after consultation with the bill's sponsor Representative Morrison, to use $200,000 of the appropriation for the current biennium ($1,000,000 per fiscal year) for the summer camp program.

Dr. Joseph H. Stafford, Assistant Commissioner for Academic Affairs and Research, has determined that for each year of the first five years the section is in effect, there will not be any fiscal implications to state or local government as a result of this proposed rule.

Mr. Stafford, has also determined that for each year of the first five years the section is in effect the public benefit anticipated as a result of administering the section will be that children need to be encouraged to enroll in more math and science related classes in order to remain competitive on a national and global level in those fields of study. Currently, Texas lags behind most of its key competitor states in the number of engineering and computer science degrees awarded to graduating students, ranking ninth of among the 10 most populous states in the number of degrees awarded per 1,000 students in science and engineering fields. Summer camps for secondary school students are currently a favorite tool to gain interest of these students because they allow students to overcome prevalent misconceptions of engineering and are an effective tool to demonstrate that young people have the ability to succeed, especially in mastering the required mathematics. Summer camps also form cohorts of peers who may, if the camps are done correctly, stay in touch till commencement of studies. Summer camps leverage student interest with community interest through TV and print media reporting, etc. And finally, summer camp students go back to their schools having an impact on peers, teachers, and counselors.

Comments on the proposal may be submitted to Joe Stafford, Assistant Commissioner for Academic Affairs and Research, Texas Higher Education Coordinating Board, P.O. Box 12788, Austin, Texas 78711 or joe.stafford@thecb.state.tx.us Comments will be accepted for 30 days following publication of the proposal in the Texas Register.

The new sections are proposed under Texas Education Code, §61.027, which provides the Coordinating Board with general rule-making authority, §61.002, which establishes the Coordinating Board as an agency charged to provide leadership and coordination for the Texas higher education system, and Texas Education Code, §§61.791 - 61.793, which authorized the Coordinating Board to adopt rules concerning engineering recruitment programs established by the Texas Higher Education Coordinating Board.

The new sections affect Texas Education Code, §61.002.

§13.200.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Subchapter Q, ENGINEERING RECRUITMENT PROGRAMS. This subchapter establishes rules for administering the engineering recruitment summer camps as prescribed in the Texas Education Code, §§61.791 - 61.793.

(b) Scope. Unless otherwise noted, this subchapter applies to any general academic teaching institution (Texas Education Code, §61.003) that offers an engineering degree program and their students.

(c) Purpose. The purpose of these programs is to provide grants to any general academic teaching institution to implement one-week summer camps for middle and high school students at any general academic teaching institution.

§13.201.Definitions.

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

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

(2) Commissioner--the Commissioner of Higher Education.

(3) Eligible institution--any general academic teaching institution that offers one or several undergraduate degree programs in engineering.

(4) Engineering degree program--any undergraduate degree program in engineering at an eligible institution.

(5) Summer camp--a math, science, and engineering laboratory-oriented day camp, organized by an eligible institution with one or more one-week sessions, to take place on the campus of the eligible institution.

(6) Proposal--a summer camp proposal written by an eligible institution.

§13.202.Summer Camps.

(a) Summer camps shall be designed for middle and/or high school students that will introduce participating students to math, science, and engineering concepts that they may encounter in an engineering degree program.

(b) Once every fiscal year the Commissioner may authorize distribution of a request for proposals for the design and implementation of summer camps.

(c) The Board shall post the request for proposals on the agency website at least 30 working days prior to the due date for proposals and shall notify all eligible institutions.

(d) The request for proposals shall:

(1) contain information necessary to prepare proposals including financial resources available for distribution as well as the criteria that will be used for award of grants,

(2) contain data describing the demographics of the state,

(3) require the proposal to address plans by the eligible institution to ensure that its summer camp reflects the demographics of the state,

(4) include the requirements for admission to a summer camp, including the requirement of an appropriate math and science background according to the participating student's grade level and the availability of camp scholarships if needed, and

(5) specify any other grant conditions.

(e) Each eligible institution may submit one proposal to the Board and the Commissioner shall award grants for the summer camps based on submitted proposals and availability of funding.

(f) All eligible institutions receiving grants for summer camps shall submit a final report to the Board within 90 days of the end of the summer camp. The Commissioner shall specify the format for the report.

(g) After making a finding that an eligible institution has failed to perform or failed to conform to grant conditions, the Commissioner may retract or reduce the grant for the summer camp.

(h) The governing board of each eligible institution shall cooperate with the board in administering this program.

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703560

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Chapter 21. STUDENT SERVICES

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

19 TAC §21.730

The Texas Higher Education Coordinating Board proposes an amendment to §21.730 concerning the Determination of Resident Status and Waiver Programs for Certain Nonresident Persons. Specifically, the amendment to §21.730 reflects a new path to residency established through the passage of House Bill 3826 by the 80th Texas Legislature, which indicates a person who graduates from a high school operated by the United States Department of Defense with a grade point average in the top 10 percent of the person's high school graduating class in one of the two school years preceding the academic year for which he or she is applying for admission is a Texas resident.

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

Ms. Hollis has also determined that for each year of the first five years the amendment is in effect, the public benefit anticipated as a result of administering the section will be that certain children of military families will attend Texas public institutions while paying the resident tuition rate. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

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

The amendment is adopted under the Texas Education Code, §51.807 which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 51, Subchapter U.

The amendment affects Texas Education Code, §§51.801 - 51.809.

§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) - (3) (No change.)

(4) a person who graduated from a high school operated by the United States Department of Defense with a grade point average in the top 10 percent of the person's high school graduating class in one of the two school years preceding the academic year for which he or she is applying for admission.

(b) - (f) (No change.)

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703578

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Subchapter CC. EARLY HIGH SCHOOL GRADUATION SCHOLARSHIP PROGRAM

19 TAC §21.951

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §21.951 concerning the Early High School Graduation Scholarship Program. Specifically, proposed amendments to §21.951 provide a definition for the term "to graduate" as the process of completing the academic requirements for graduation from high school. This definition more clearly applies to student eligibility requirements than did the previous definition of "high school graduate"--a person who has completed requirements for graduation.

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

Ms. Hollis has also determined that, for each year of the first five years the proposed amendments are in effect, the public benefits anticipated as a result of administering the section will be greater clarification of the eligibility requirements of the program. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

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

The amendments are proposed under the Texas Education Code, §56.209, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, Chapter 56, Subchapter K, relating to the Early High School Graduation Scholarship Program.

The proposed amendments affect Texas Education Code, §§56.201 - 56.210.

§21.951.Definitions.

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

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

(3) Graduate, To--To complete all the academic requirements, including course work and examinations, for graduation from high school. This definition does not apply to individuals who meet these requirements but choose to continue enrollment beyond the end of the term in which they meet the graduation requirements. [ High school graduate--An individual who has completed the requisite number of units, the prescribed courses, the examinations and other requirements and has received, or is eligible to receive, a high school diploma from a public high school in Texas. ]

(4) - (6) (No change.)

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703564

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


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

19 TAC §§21.2100, 21.2102 - 21.2106

The Texas Higher Education Coordinating Board (Coordinating Board) proposes amendments to §§21.2100 and 21.2102 - 21.2106 concerning the Exemption Program for Veterans and their Dependents (The Hazlewood Act). Specifically, proposed amendments to §21.2100 (Definitions), paragraph (1), reflect the fact that relevant tuition and fee charges for credit hours dropped before the census date are to be counted in determining how many of the original 150 hours of eligibility a student has remaining. Proposed amendments to §21.2100, paragraph (4), bring the definition of "children" for the Hazlewood Act into agreement with the definition used for the exemption for the children of deceased public servants. This should simplify the process of documenting most children's eligibility because it will require tax returns only for children who are not biological or had not been adopted by the veteran at the time of his or her death or major disability. Proposed amendments to paragraph (8) clarify that the child of an otherwise eligible veteran is eligible for the exemption if he or she was claimed as a dependent the year prior to the veteran's death or disabling injury. Paragraph (16) is deleted, since "date of registration" is the same as "census date," a term already defined in rule. Paragraphs (17) - (20) are renumbered as paragraphs (16) -(19). Proposed amendments to §21.2102 and §21.2103 reflect the new provisions from Senate Bill 1640 that veterans are no longer required to exhaust their federal benefits before using benefits under the Hazlewood Act. They are entitled to combine federal and state education benefits in the same term if the value of the federal benefits does not exceed the value of the state benefit. Proposed amendments to §21.2104 replace the term "registration date" with the more common term "census date." Proposed amendments to §21.2105 reflect new provisions from House Bill 125, passed by the 80th Texas Legislature, which extends the Hazlewood Act benefit to the children of veterans who are disabled as a result of service-related injuries. In addition, they indicate a veteran's place of entry into the service is not sufficient evidence that the person was a Texas resident at that time. Proposed amendments to §21.2106 clarify that veterans or eligible children who continue to use benefits under the Hazlewood Act no longer have to first exhaust their federal benefits if the value of the federal exemption is less than the value of the state exemption. It also indicates the persons continuing to receive awards through the program must complete and summit applications each term in which they receive an exemption.

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

Ms. Hollis has also determined that, for each year of the first five years the proposed amendments are in effect, the public benefits anticipated as a result of administering the amended sections will be that veterans or their children will better understand their options in using the Hazlewood exemption. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the sections as proposed. There is no impact on local employment.

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

The amendment is proposed under the Texas Education Code, §54.203, which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §54.203.

The proposed amendments affect Texas Education Code, §54.203.

§21.2100.Definitions.

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

(1) Attempted credit hours--Hours for which the veteran is registered as of the first day of classes [ census date ] of a term or semester.

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

(4) Children-- The veteran's biological or adopted children who, (a) on the date of the death or disabling injury of the veteran, are younger than 18 years of age; and (b) persons who, if they are not biological or adopted children, were claimed as dependents on the federal income tax return of the veteran for the year preceding the year of the veteran's death or disabling injury. [ Persons who were dependents of members of the armed forces of the United States at the time they were killed or died or became totally disabled for purposes of employability as a result of injuries directly associated with military service or dependents of members of the Texas National Guard and the Texas Air National Guard killed since January 1, 1946, or who became totally disabled for purposes of employability as a result of a service-related injury suffered since January 1, 1946 while on active duty either in the service of Texas or the United States. ]

(5) - (7) (No change.)

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

(9) - (15) (No change.)

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

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

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

(18) [ (19) ] Training--Time spent as a member of the armed forces that is not included in the "Net Active Service" or the sum of "Net Active Service" indicated on the Certificate of Release or Discharge from Active Duty (DD214).

(19) [ (20) ] Tuition--All types of tuition that an institution may, under Texas Education Code, Chapter 54, collect from students attending the institution, including statutory tuition, discretionary tuition, designated tuition, and board-authorized tuition.

§21.2102.Eligible Veterans.

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

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

(4) has no federal veteran's education benefits, or, if he or she has such benefits, that the value of the benefits [ has exhausted his or her federal veteran's education benefits ], including such benefits as those issued under Title 38, United States Code, Chapters 30, 32, and 35, and Title 10, United States Code, Chapters 1606 and 1607 are less than the value of the student's tuition and fees less property deposit and student service fees for the relevant term ;

(5) - (8) (No change.)

§21.2103.Eligible Children.

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

(1) (No change.)

(2) have no federal veteran's education benefits, [ have exhausted their federal survivor benefits ] based on the death or disability of a veteran parent that the value of the benefits is less than the value of the children's tuition and fees less property deposit and student service fees for the term in which the exemption is to be used ; and

(3) (No change.)

§21.2104.The Application.

(a) (No change.)

(b) For an otherwise eligible veteran or child to be entitled to a Hazlewood Act exemption in a given term or semester, he or she must provide a completed Hazlewood Act Exemption Application and provide the supporting documentation to the institution no later than the census date [ registration date ] of that term or semester.

(c) (No change.)

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

(a) (No change.)

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

(1) proof that the parent veteran's death or disability was a result of injury or illness directly associated with service in the U.S. Armed Forces, or that the National Guard parent was killed or disabled while he or she was on active duty either in the service of Texas or the United States;

(2) proof of the child's current status regarding eligibility for federal [ survivors ] benefits awarded on the basis of the parent's service-related death or disability ;

(3) proof that the child was a dependent of the veteran at the time the veteran died, [ and ]

(4) documentation that the parent was a resident of Texas when he or she entered the service ; and [ . ]

(5) (for the child of a disabled veteran or guardsman) documentation that the veteran has been rated by the Veterans' Administration as unemployable due to his or her service-related injuries.

§21.2106.Subsequent Hazlewood Exemption Applications.

(a) For each term or semester of an academic year in which the veteran or child receives a Hazlewood Act Exemption, the institution shall confirm that the veteran or child:

(1) has not exhausted his or her 150 credit hours of eligibility through the program,

(2) is still classified as a resident student,

(3) has no federal veteran's benefits, or if he or she has [ exhausted his or her ] federal veterans [ or survivor's ] education benefits that the value of the benefits is less than the student's tuition and fees less property deposit and student service fees for the term , and

(4) is not in default on a loan made or guaranteed by the state of Texas or federal government.

(b) For each term or semester of an academic year in which the veteran or child receives a Hazlewood Act Exemption, he or she shall submit the appropriate program application.

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703563

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Chapter 22. GRANT AND SCHOLARSHIP PROGRAMS

Subchapter Q. ENGINEERING SCHOLARSHIP PROGRAM

19 TAC §§22.312 - 22.318

The Texas Higher Education Coordinating Board proposes new §§22.312 - 22.318 concerning the Engineering Scholarship Program. New sections of Board rules were adopted on an emergency basis at the July Coordinating Board meeting to implement House Bill 2978, passed by the 80th Texas Legislature. The new sections established rules for engineering recruitment programs, which include both an engineering summer program and an engineering scholarship program. Following the July Board meeting, staff decided the programs could be more effectively administered if rules for the summer program were separated from rules for the scholarship program. Rules for the summer program will be proposed in other sections of Board rules. Specifically, new §22.312 describes the authority, scope, and purpose of the rules. New §22.313 provides definitions for terms used in the sections. New §22.314 describes the scholarship program announcement that is to be made by the Coordinating Board, indicating funding for the program, application procedures and student eligibility requirements. New §22.315 provides detailed information regarding student eligibility requirements. The section also addresses the issue of continuation awards. New §22.316 describes how annual award amounts are to be announced to institutions. New §22.317 describes scholarship application procedures for institutions and clarifies that institutions must not make awards in excess of their allocation of funds. New §22.318 describes reporting requirements for participating institutions.

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

Ms. Hollis has also determined that for each year of the first five years the amendments are in effect the public benefit anticipated as a result of administering the sections will be financial support to help recruit and retain more engineering students. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

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

The new sections are adopted under the Texas Education Code §61.792(c), which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §61.792.

The new sections affect Texas Education Code, §61.792.

§22.312.Authority, Scope, and Purpose.

(a) Authority. Authority for this subchapter is provided in the Texas Education Code, Chapter 61, Subchapter Q, Engineering Recruitment Programs. This subchapter establishes rules for administering the engineering scholarship program established by the Texas Higher Education Coordinating Board in keeping with Texas Education Code, §61.792.

(b) Scope. Unless otherwise noted, this subchapter applies to any general academic teaching institution (Texas Education Code, §61.003) that offers an engineering degree program and their students.

(c) Purpose. The purpose of this program is to provide scholarships to students pursuing a degree in engineering at a participating general academic teaching institution.

§22.313.Definitions.

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

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

(2) Commissioner--the Commissioner of Higher Education.

(3) Eligible institution--any general academic teaching institution that offers one or several undergraduate degree programs in engineering.

(4) Engineering degree program--any undergraduate degree program in engineering at an eligible institution.

(5) Engineering student--student enrolled at an eligible institution in an undergraduate engineering degree program.

(6) Application--a scholarship application submitted by an eligible student.

§22.314.Scholarship Program Announcement.

The Board shall post the scholarship announcement and application form for the scholarships on the agency website. The scholarship announcement shall contain information about:

(1) financial resources available for distribution,

(2) application procedures for the scholarships, and

(3) student eligibility requirements.

§22.315.Student Eligibility Requirements.

(a) To qualify for an engineering scholarship, a person must:

(1) have graduated high school in the top 20 percent of the student's high school graduating class;

(2) have graduated from high school with a grade point average of at least 3.5 on a four-point scale or the equivalent in mathematics and science courses offered under the recommended or advanced high school program under the Texas Education Code, §28.025(a);

(3) enroll in an undergraduate engineering program offered by a general academic teaching institution in Texas; and

(4) maintain an overall grade point average of at least 3.0 on a four-point scale at the institution in which the engineering student is enrolled.

(b) Scholarships awarded in a given year do not represent an entitlement for future awards but award recipients in one year may compete for awards in subsequent years.

§22.316.Award Amounts and Continuing Eligibility.

The maximum award per student for a given academic year will be determined by the Commissioner and announced to institutions at the time they are informed of their share of funds for the year.

§22.317.Application Process.

(a) Eligible institutions shall:

(1) make the program application form accessible to all engineering students in paper or through electronic access;

(2) collect engineering student applications;

(3) verify student eligibility;

(4) select scholarship recipients to reflect the demographics of the state; and, to the extent possible;

(5) use the scholarships to augment, not replace, other gift aid.

(b) The value of awards made for a given year by an institution may not exceed the funds allocated to the institution for that year by the Coordinating Board.

§22.318.Reporting Requirements.

At the end of the scholarship period as defined in the scholarship announcement, eligible institutions shall report to the Board the number of scholarships awarded, the value of the awards, as well as other demographic data in a format specified by the Commissioner.

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703562

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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


Subchapter R. PROVISIONS REGARDING SCHOLARSHIPS TO RELATIVES OF BOARD MEMBERS OF INSTITUTIONS OF HIGHER EDUCATION

19 TAC §§22.401 - 22.407

The Texas Higher Education Coordinating Board proposes new §§22.401 - 22.407 concerning Provisions Regarding Scholarships to Relatives of Board Members of Institutions of Higher Education. Specifically, Senate Bill 1325, passed by the 80th Texas Legislature, added Texas Education Code §51.969 and authorized the Board to adopt rules to implement the section, beginning with scholarships for which a scholarship application was filed on or after January 1, 2008. The new sections will establish definitions, identify the categories of scholarships to which the restrictions shall apply, identify the possible penalty for failure to adhere to program requirements, and direct institutions to the Coordinating Board's web site for wording of the statement to be filed by scholarship recipients.

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

Ms. Hollis has also determined that for each year of the first five years the new rules are in effect the public benefit anticipated as a result of administering the sections will be a more equal opportunity for all eligible students to compete for scholarships. There is no effect on small businesses. There are no anticipated economic costs to persons who are required to comply with the section as proposed. There is no impact on local employment.

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

The new sections are proposed under the Texas Education Code, §51.969 which provides the Coordinating Board with the authority to adopt any rules necessary to administer Texas Education Code, §1.969.

The new sections affect Texas Education Code, §51.969.

§22.401.Authority and Purpose.

(a) Authority. Authority for this subchapter is provided in Subchapter Z, Chapter 51 of the Texas Education Code. These rules establish procedures to administer the subchapter as prescribed in the Texas Education Code, §51.969.

(b) Purpose. The purpose of these provisions is to provide guidance for institutions in the awarding of certain scholarships in such way as to avoid criminal penalties.

§22.402.Definitions.

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

(1) Affinity--Relationship between individuals based on being married or the fact that the spouse of one of the individuals is related by consanguinity to the other individual. The ending of a marriage ends relationships by affinity unless a child of that marriage is living, in which case the affinity continues as long as a child of that marriage lives. These relationships are named as follows:

(A) 1st Degree--Spouse, spouse's child, spouse's mother or father, child's spouse, parent's spouse.

(B) 2nd Degree--Spouse's brother or sister, spouse's grandparent, spouse's grandchild, brother or sister's spouse, grandparent's spouse, grandchild's spouse.

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

(3) Consanguinity--Relationship between individuals based on being descendants of one another or sharing a common ancestor. An adopted child is considered to be a child of the adoptive parent. These relationships are named as follows:

(A) 1st Degree--Mother, father, daughter, son.

(B) 2nd Degree--Brother, sister, grandparent, grandchild.

(C) 3rd Degree--Great-grandparent, great-grandchild, uncle (brother of parent), aunt (sister of parent), nephew (son of brother or sister), niece (daughter of brother or sister).

(4) Institution of Higher Education--A public institution of higher education as defined in Texas Education Code Chapter 61, §61.003.

(5) Scholarship--An award of gift aid that does not have to be repaid by the student or earned through service or performance.

(6) University System--The association of one or more public senior colleges or universities, medical or dental units or other agencies of higher education under the policy direction of a single governing board.

(7) Within the Second Degree by Affinity--A circumstance in which a person is a spouse of an individual or the child of the spouse of an individual.

(8) Within the Third Degree by Consanguinity--A circumstance in which a person is a child, grandchild or great-grandchild of an individual from whom he or she is a descendant or with whom the person shares a common ancestor. An adopted child is considered to be a child of the adoptive parent for this purpose.

§22.403.Relevant Institutions.

The provisions of these rules apply to persons attending any institution of higher education in Texas.

§22.404.Prohibited Scholarships.

A person is not eligible to receive a scholarship originating from and administered by an institution of higher education or university system if the person is related to a current member of the governing board of the institution or system if the scholarship application is filed on or after January 1, 2008, unless:

(1) the scholarship is granted by a private organization or third party not affiliated with the institution of higher education or university system;

(2) the scholarship is awarded exclusively on the basis of prior academic merit;

(3) the scholarship is an athletic scholarship; or

(4) the relationship is not within the third degree by consanguinity or the second degree by affinity.

§22.405.Declaration of Eligibility.

A person applying for a scholarship originating from and administered by an institution of higher education or university system must file a written statement with the application indicating whether the person is related within the third degree by consanguinity or the second degree by affinity to a current member of the governing board of the institution or system. The required wording of the statement will be developed by the Board and will be made available to institutions via the Coordinating Board's web site.

§22.406.Criminal Penalty.

A person commits a Class B misdemeanor offense if the person knowingly files a false statement under §22.405 of this title (relating to Declaration of Eligibility).

§22.407.Dissemination of Information and Rules.

The Board is responsible for publishing and disseminating general information and program rules for the provisions described in this subchapter.

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

Filed with the Office of the Secretary of State on August 13, 2007.

TRD-200703561

Bill Franz

General Counsel

Texas Higher Education Coordinating Board

Proposed date of adoption: October 25, 2007

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